Exhibit 10.25

 

AMENDMENT TO EMPLOYMENT AGREEMENT

 

This AMENDMENT TO EMPLOYMENT AGREEMENT (this “Amendment”) is made and entered
into as of the 28th day of August, 2008, by and between RAFAELLA APPAREL GROUP,
INC., a Delaware corporation (the “Company”), and Husein Jafferjee (the
“Executive”).

 

WHEREAS, the Company and the Executive entered into an employment agreement,
dated as of January 8, 2008 (the “Employment Agreement”); and

 

WHEREAS, the Company and the Executive have agreed to amend certain provisions
of the Employment Agreement in accordance with the terms of this Amendment in
order to clarify the intent of the parties;

 

NOW, THEREFORE, in consideration of the premises and the mutual covenants
contained herein and for other good and valuable consideration, the Company and
the Executive agree to the following amendment to the Employment Agreement:

 

1.                                       The effective date of this Amendment
shall be the date first written above.

 

2.                                       The first paragraph of Section 1 of
Exhibit A is hereby amended and restated in its entirety as follows:

 

1.                                       SALE TRANSACTION

 

For purposes of this Agreement, “Sale Transaction” shall mean:

 

I.                  A “CHANGE IN CONTROL”, AS DEFINED IN THE EMPLOYMENT
AGREEMENT; AND

 

II.               OTHER THAN IN CONNECTION WITH A “CHANGE IN CONTROL”, (A) ALL
TRANSACTIONS (DETERMINED CUMULATIVELY FROM THE EFFECTIVE DATE) BY THE COMMON OR
PREFERRED STOCKHOLDERS OF THE COMPANY ON THE EFFECTIVE DATE (THE “COMMON
STOCKHOLDERS”) OR ANY AFFILIATES OF SUCH COMMON STOCKHOLDERS RESULTING IN THE
SALE OF COMMON OR PREFERRED SECURITIES OF THE COMPANY TO ONE OR MORE THIRD
PARTIES (AS DEFINED IN THE DEFINITION OF “CHANGE IN CONTROL”) AND (B) THE SALE
BY THE COMPANY OF ITS COMMON SECURITIES PURSUANT TO AN INITIAL PUBLIC OFFERING.

 

3.                                       Capitalized terms not otherwise defined
in this Amendment shall have the meanings set forth in the Employment Agreement.

 

4.                                       Except as expressly amended by this
Amendment, all other terms and provisions of the Employment Agreement, including
any prior amendments thereto, shall remain unaltered and shall continue in full
force and effect.

 

1

--------------------------------------------------------------------------------

 

5.                                       This Amendment may be executed in
counterparts, each of which shall be deemed an original and both of which shall
constitute one and the same document, with the same effect as if all parties had
signed on the same page.

 

2

--------------------------------------------------------------------------------

 

IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the date
first written above.

 

 

RAFAELLA APPAREL GROUP, INC.

 

 

 

 

 

By:

/s/ Christa Michalaros

 

 

Name: Christa Michalaros

 

 

Title: Chief Executive Officer

 

 

 

 

 

EXECUTIVE

 

 

 

 

 

/s/ Husein Jafferjee

 

Husein Jafferjee

 

3

--------------------------------------------------------------------------------