EXHIBIT 10.30

AMENDMENT NO. 2 TO THETHREE YEAR CREDIT AGREEMENT

 

Dated as of November 17, 2004

        AMENDMENT NO. 2 (this "Amendment")**TO THE THREE YEAR CREDIT AGREEMENT** among Jones Apparel Group USA, Inc., aPennsylvania corporation (the "Borrower"), the AdditionalObligors referred to therein, the banks, financial institutions and otherinstitutional lenders parties to the Three Year Credit Agreement referred tobelow (collectively, the "Lenders") and Wachovia Bank, NationalAssociation, as agent (the "Administrative Agent") for theLenders.

PRELIMINARY STATEMENTS:

        (1) The Borrower, the AdditionalObligors, the Lenders, the Administrative Agent and other parties thereto haveentered into a Three Year Credit Agreement dated as of June 10, 2003 (as amendedto date, the "Three Year Credit Agreement"). Capitalized termsnot otherwise defined in this Amendment have the same meanings as specified inthe Three Year Credit Agreement.

        (2) The Borrower has requestedthat the Lenders agree to add Jones Retail Corporation and Kasper, Ltd. as anAdditional Obligor under the Three Year Credit Agreement.

        (3) The Required Lenders are, onthe terms and conditions stated below, willing to grant the request of theBorrower and the Borrower and the Required Lenders have agreed to amend theThree Year Credit Agreement as hereinafter set forth.

        SECTION 1. Amendments to ThreeYear Credit Agreement. The Three Year Credit Agreement is, effective as ofthe date hereof and subject to the satisfaction of the conditions precedent setforth in Section 3, hereby amended as follows:

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    (a) Section 1.1 is amended by inserting in the  appropriate alphabetical order the following definitions:

"Kasper, Ltd." means Kasper, Ltd., a Delaware    corporation.

"Jones Retail" means Jones Retail Corporation, a New    Jersey corporation.

    (b) Section 1.1 is further amended by amending the  definition of "Additional Obligors" in full to read as follows:

"Additional Obligors" means the collective reference to    Jones Apparel Group, Jones Apparel Group Holdings, Kasper, Ltd., Nine West    Footwear and Jones Retail in their capacities as co-obligors under this    Agreement.

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    (c) Section 3.1 is amended by deleting the phrase  "for the account of the Borrower on any Business Day" and  substituting therefor the phase "for the account of the Borrower and its  specified Subsidiaries on any Business Day".

    (d) Exhibit A of the Three Year Credit Agreement is  amended in full to read as set forth as Exhibit A to this Amendment.

        SECTION 2. Condition Subsequent.By execution below, each of Kasper, Ltd. and Jones Retail hereby covenants andagrees that it will (a) provide an allonge endorsement to each Lender that hasrequested a Revolving Credit Note in accordance with Section 2.4(c) of the ThreeYear Credit Agreement promptly after receipt of such a request from such Lenderand (b) deliver to the Administrative Agent, not later than December 1, 2004,certificates of incumbency, certified resolutions, articles of incorporation andbylaws, and opinions of counsel substantially similar to those required bySection 6.2(b) of the Three Year Credit Agreement, in each case in form andsubstance reasonably satisfactory to the Administrative Agent.

        SECTION 3. Conditions ofEffectiveness. This Amendment shall become effective as of the date firstabove written when, and only when, on or before November 18, 2004 theAdministrative Agent shall have received counterparts of this Amendment executedby the Credit Parties and the Required Lenders or, as to any of the Lenders,advice satisfactory to the Administrative Agent that such Lender has executedthis Amendment. This Amendment is subject to the provisions of Section 14.11 ofthe Three Year Credit Agreement.

        SECTION 4. Representations andWarranties of the Credit Parties. The Credit Parties represent and warrantas follows:

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    (a) Each of the Credit Parties is a corporation duly  organized, validly existing and in good standing under the laws of the  jurisdiction of its incorporation.

    (b) The execution, delivery and performance by each  Credit Party of this Amendment and the performance by each Credit Party of its  obligations under the Three Year Credit Agreement, as amended hereby, do not  and will not, by the passage of time, the giving of notice or otherwise, (i)  require any of the Credit Parties or any of their Subsidiaries to obtain any  Governmental Approval not otherwise already obtained or violate any Applicable  Law relating to the Credit Parties or any of their Subsidiaries, (ii) conflict  with, result in a breach of or constitute a default under the articles of  incorporation, bylaws or other organizational documents of the Credit Parties  or any of their Subsidiaries or any indenture or other material agreement or  instrument to which such Person is a party or by which any of its properties  may be bound or any Governmental Approval relating to such Person except as  could not reasonably be expected to have a Material Adverse Effect, or (iii)  result in or require the creation or imposition of any material Lien upon or  with respect to any property now owned

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or hereafter acquired by such Person other than a Lien permitted under the  terms of the Loan Documents.

    (c) Each of the Credit Parties has the right, power and  authority and has taken all necessary corporate and other action to authorize  the execution, delivery and performance of this Amendment and the performance  of its obligations the Three Year Credit Agreement, as amended hereby, in  accordance with their respective terms. This Amendment has been duly executed  and delivered by the duly authorized officers of the Credit Parties and such  document constitutes, and each of the Loan Documents does and continues to  constitute, the legal, valid and binding obligation of the Credit Parties and,  if applicable, each of their Subsidiaries party thereto, enforceable in  accordance with their respective terms, except as such enforcement may be  limited by bankruptcy, insolvency, reorganization, moratorium or similar state  or federal debtor relief laws from time to time in effect which affect the  enforcement of creditors' rights in general and the availability of equitable  remedies.

    (d) Except for matters existing on the Closing Date and  set forth on Schedule 7.1(q) to the Three Year Credit Agreement, there are no  actions, suits or proceedings pending nor, to the knowledge of the Credit  Parties, threatened against or affecting the Credit Parties or any Subsidiary  thereof or any of their respective properties in any court or before any  arbitrator of any kind or before or by any Governmental Authority, which could  reasonably be expected to have a Material Adverse Effect or which relate to  the enforceability of this Amendment or any Loan Documents, as amended hereby.

        SECTION 5. Reference to andEffect on the Three Year Credit Agreement and the Loan Documents. (a) On andafter the effectiveness of this Amendment, each reference in the Three YearCredit Agreement to "this Agreement", "hereunder","hereof" or words of like import referring to the Three Year CreditAgreement, and each reference in the Notes and each of the other Loan Documentsto "the Credit Agreement", "thereunder", "thereof"or words of like import referring to the Three Year Credit Agreement, shall meanand be a reference to the Three Year Credit Agreement, as amended by thisAmendment.

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    (b) The Three Year Credit Agreement, as specifically  amended by this Amendment, the Notes and each of the other Loan Documents, are  and shall continue, following the effectiveness of this Amendment, to be in  full force and effect and are hereby in all respects ratified and confirmed.

    (c) The execution, delivery and effectiveness of this  Amendment shall not, except as specifically provided herein, operate as a  waiver of any right, power or remedy of any Lender or the Administrative Agent  under the Three Year Credit Agreement, nor constitute a waiver of any  provision of the Three Year Credit Agreement.

        SECTION 6. Costs and Expenses.The Borrower agrees to pay on demand all reasonable out-of-pocket expenses ofthe Administrative Agent in connection 

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with the preparation, execution, delivery and administration, modificationand amendment of this Amendment and the other instruments and documents to bedelivered hereunder (including, without limitation, the reasonable fees anddisbursements of counsel for the Administrative Agent) in accordance with theterms of Section 14.2 of the Three Year Credit Agreement.

        SECTION 7. Execution inCounterparts. This Amendment may be executed in any number of counterpartsand by different parties hereto in separate counterparts, each of which when soexecuted shall be deemed to be an original and all of which taken together shallconstitute but one and the same agreement, binding upon all parties, theirsuccessors and assigns. Delivery of an executed counterpart of a signature pageto this Amendment by telecopier shall be effective as delivery of a manuallyexecuted counterpart of this Amendment.

        SECTION 8. Governing Law.This Amendment shall be governed by, and construed in accordance with, the lawsof the State of New York.

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        IN WITNESS WHEREOF, the partieshereto have caused this Amendment to be executed by their respective officersthereunto duly authorized, as of the date first above written.

|  | JONES APPAREL GROUP USA, INC.        as Borrower        
By: /s/ Wesley R. Card               Name:  Wesley R. Card               Title: Chief Financial Officer         JONES APPAREL GROUP, INC.        as Additional Obligor        
By: /s/ Wesley R. Card               Name:  Wesley R. Card               Title: Chief Operating and        Financial Officer          JONES APPAREL GROUP HOLDINGS, INC.        as Additional Obligor        
By: /s/ Ira M. Dansky               Name:  Ira M. Dansky               Title: President          KASPER LTD.        as Additional Obligor        
By: /s/ Peter Boneparth               Name:  Peter Boneparth               Title: President          NINE WEST FOOTWEAR CORPORATION        as Additional Obligor        
By: /s/ Ira M. Dansky               Name:  Ira M. Dansky               Title: Executive Vice President and                                       Secretary          JONES RETAIL CORPORATION        as Additional Obligor        
By: /s/ Wesley R. Card               Name:  Wesley R. Card               Title: Chief Financial OfficerWACHOVIA BANK, NATIONAL ASSOCIATION        as Administrative Agent and Lender        
By: /s/ Thomas Harper               Name:  Thomas Harper               Title: Managing Director            BANK OF AMERICA, N.A.        
By: /s/ Douglas J. Bolt               Name:  Douglas J. Bolt               Title: Vice President         BANK OF CHINA, NEW YORK BRANCH        
By: /s/ William Smith               Name:  William Smith               Title: Chief Lending Officer         THE BANK OF NEW YORK        
By: /s/ Roger Grossman               Name:  Roger Grossman               Title: Vice President            BARCLAYS BANK PLC        
By: /s/ Nicholas A. Bell               Name:  Nicholas A. Bell               Title: Director                               Loan Transaction Management         CITIBANK, N.A.        
By: /s/ Judith Green               Name:  Judith Green               Title: Vice President         FLEET NATIONAL BANK        
By: /s/ Douglas J. Bolt               Name:  Douglas J. Bolt               Title: Vice President         ISRAEL DISCOUNT BANK OF NEW YORK        
By: /s/ Howard Weinberg               Name:  Howard Weinberg               Title: Senior Vice President

By: /s/ David Acosta               Name:  David Acosta               Title: Assistant Vice President          JPMORGAN CHASE BANK, N.A.        (FORMERLY KNOWN AS JPMORGAN        CHASE BANK)        
By: /s/ James A. Knight               Name:  James A. Knight               Title: Vice President         SUNTRUST BANK        
By: /s/ Patrick M. Stevens               Name:  Patrick M. Stevens               Title: Vice President         
EXHIBIT A-1 - FORM OFREVOLVING CREDIT NOTE

 

$_____________________ _____________, 200_

        FOR VALUE RECEIVED, theundersigned JONES APPAREL GROUP USA, INC., a corporation organized under thelaws of Pennsylvania, (the "Borrower"), JONES APPAREL GROUP,INC., a corporation organized under the laws of Pennsylvania, JONES APPARELGROUP HOLDINGS, INC., a corporation organized under the laws of Delaware,KASPER, LTD., a corporation organized under the laws of Delaware, NINE WESTFOOTWEAR CORPORATION, a corporation organized under the laws of Delaware, andJONES RETAIL CORPORATION, a corporation organized under the laws of New Jersey(collectively, with the Borrower, the "Debtors"), herebyjointly and severally promise to pay to the order of _________________, (the"Lender"), at the place and times provided in the CreditAgreement referred to below, the principal sum of ______________________ DOLLARS($_____________) or, if less, the aggregate unpaid principal amount of allRevolving Credit Loans made to the Borrower by the Lender pursuant to thatcertain Three Year Credit Agreement dated as of June 10, 2003 (as amended,restated, supplemented or otherwise modified, the "Credit Agreement")by and among Jones Apparel Group USA, Inc., the Additional Obligors referred totherein, the Lenders who are or may become a party thereto (collectively, the"Lenders"), J.P. Morgan Securities Inc. and Citigroup GlobalMarkets Inc., as Joint Lead Arrangers and Joint Bookrunners, Wachovia Bank,National Association, as Administrative Agent, and JPMorgan Chase Bank, N.A.(formerly known as JPMorgan Chase Bank) and Citibank, N.A., as SyndicationAgents, and Fleet National Bank and Bank of America, N.A., as DocumentationAgents. Capitalized terms used herein and not defined herein shall have themeanings assigned thereto in the Credit Agreement.

        The unpaid principal amount ofRevolving Credit Loans from time to time outstanding is subject to mandatoryrepayment from time to time as provided in the Credit Agreement and shall bearinterest as provided in Section 5.1 of the Credit Agreement. All payments ofprincipal and interest on Revolving Credit Loans shall be payable in lawfulcurrency of the United States of America in immediately available funds to theaccount designated in the Credit Agreement.

        This Revolving Credit Note (the"Revolving Credit Note") is entitled to the benefits of, andevidences Obligations incurred under, the Credit Agreement, to which referenceis made for a statement of the terms and conditions on which the Borrower ispermitted and required to make prepayments and repayments of principal of theObligations evidenced by this Revolving Credit Note and on which suchObligations may be declared to be immediately due and payable.

        THIS REVOLVING CREDIT NOTE SHALLBE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THESTATE OF NEW YORK WITHOUT REGARD TO THE CONFLICTS OR CHOICE OF LAW PRINCIPLESTHEREOF.

        The Debt evidenced by thisRevolving Credit Note is senior in right of payment to all Subordinated Debtreferred to in the Credit Agreement.

        The Debtors hereby waive allrequirements as to diligence, presentment, demand of payment, protest and(except as required by the Credit Agreement) notice of any kind with respect tothis Revolving Credit Note.

        IN WITNESS WHEREOF, theundersigned have executed this Revolving Credit Note under seal as of the dayand year first above written.
JONES APPAREL GROUP USA, INC.      
By: ___________________             Name:               Title:        JONES APPAREL GROUP, INC.      
By: ___________________             Name:               Title:         JONES APPAREL GROUP HOLDINGS, INC.      
By: ___________________             Name:               Title:         KASPER, LTD.      
By: ___________________             Name:               Title:         NINE WEST FOOTWEAR CORPORATION      
By: ___________________             Name:               Title:         JONES RETAIL CORPORATION      
By: ___________________             Name:               Title: |
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