| **EXHIBIT 10.28** | **EXECUTION COPY** |
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CIT GROUP /  BUSINESS CREDIT, INC.

11 West 42d Street

New York, New York  10036

Attn: Jeffrey  Iervese
   
Rock of Ages Corporation 

Carolina Quarries, Inc. 

Pennsylvania Granite Corp. 

Keith Monument Company LLC 

Rock of Ages Memorials, Inc. 

Sioux Falls Monument Co. 

c/o Rock of Ages Corporation 

772 Granitville Road 

Barre, Vermont 05654 

Attn: Chief Executive Officer 

January 17, 2008

Ladies and Gentlemen: 

We refer to that certain  Amended and Restated Financing Agreement, dated as of October 24, 2007 (as  renewed, amended, restated or supplemented from time to time, the "Financing  Agreement"), by and among ROCK OF AGES CORPORATION ("ROA"),  CAROLINA QUARRIES, INC. ("Carolina"), PENNSYLVANIA GRANITE  CORP. ("Pennsylvania"), KEITH MONUMENT COMPANY LLC ("Keith"),  ROCK OF AGES MEMORIALS, INC. ("Memorials"), SIOUX FALLS  MONUMENT CO. ("Sioux Falls"; and together with ROA,  Carolina, Pennsylvania, Keith and Memorials, each individually, a "Borrower"  and collectively the "Borrowers"), each financial  institution which now is or which hereafter becomes a party thereto as a  lender (collectively, "Lenders" and each individually, a  "Lender"), and THE CIT GROUP/BUSINESS CREDIT, INC. ("CIT"),  as a Lender, and as agent for Lenders (CIT, in such capacity, "Agent").  Capitalized terms not otherwise defined herein shall have the meanings  ascribed to such terms in the Financing Agreement. Keith, Memorials and Sioux Falls   are collectively referred to hereunder as the "Sold Subsidiaries",  and ROA, Carolina and Pennsylvania are collectively referred to hereunder as  the "Continuing Borrowers").
   
The Borrowers have advised  Agent that ROA intents to enter into (a) that certain stock purchase  agreement dated as of the date hereof between ROA and PKDM Holdings, Inc.  (the "Purchaser") (the "Stock Purchase Agreement"),  pursuant to which ROA will sell and Purchaser will purchase all outstanding  and issued shares of the capital stock of Memorials (the "Memorials  Stock") in exchange for the "Purchase Price" as  defined and specified therein (such sale and purchase, the "Stock  Sale") and (b) an Authorized Retailer, Supply and License Agreement  (the "Supply Agreement") with Purchaser pursuant to which  ROA will appoint the Purchaser and the Sold Subsidiaries (the "Retailers")  as the authorized retailers of ROA products. The Borrowers have requested  that Agent and Lenders consent to the entry into, execution and delivery and  performance of the Stock Purchase Agreement and the Supply Agreement by ROA  and the performance by ROA of the transactions contemplated thereunder,  specifically including the Stock Sale, and to the release of the Sold  Subsidiaries from all Obligations under and liens and security interests  granted pursuant to the Financing Documents and Agent and Lenders have agreed  to give their consent to such requests on the terms and conditions set forth  herein. 

 

Therefore, with the foregoing  incorporated by reference, in each case for good and sufficient consideration  (the receipt of which is acknowledged by each), the parties hereto agree as  follows: 

1.

Consent to Stock Sale. Notwithstanding anything to the contrary contained in the Financing Agreement or  any other Financing Document, specifically including Section 10(d) of the  Financing Agreement, Agent and Lenders hereby consent, subject to the  satisfaction of the conditions in the following sentence, to the entry into,  execution and delivery and performance of the Stock Purchase Agreement and  the Supply Agreement by ROA and the performance by ROA of the transactions  contemplated thereunder, specifically including the Stock Sale, and agrees  that the sale of the Memorials Stock to Purchaser shall be free and clear of  all security interest, pledges and liens in favor of Agent and/or any Lender,  all of which such securities interests, pledges and liens shall be deemed to  be automatically terminated and released immediately upon satisfaction of the  Effectiveness Conditions as defined in the following sentence without the  necessity of any further action by any party (specifically including Agent or  any Lender). However, the consents and agreements in the preceding sentence  shall be effective only upon satisfaction of the following conditions (the  "Effectiveness Conditions"): (i) title to all "Excluded  Assets" (as that term is defined in the Stock Purchase Agreement)  owned or held by the Sold Subsidiaries shall have been transferred to ROA  and/or one of the other Continuing Borrowers, and executed documentation of  such transfer has been delivered to the Agent and (ii) Agent shall have  received immediately available funds in the amount of $7,716,604 representing  the entire net proceeds of the Purchase Price payable under the Stock  Purchase Agreement on the date hereof after all adjustments thereto to be  applied as a payment of the principal balance of the Revolving Loans and/or  the Term Loans outstanding under the Financing Agreement as provided below.  For the purposes of the clause (ii) of the preceeding sentence, the "net  proceeds of the Purchase Price" shall mean an amount equal to (x) the  entire gross amount of the Purchase Price payable to ROA under the Stock  Purchase Agreement upon the closing thereunder (as such Purchase Price may  have been adjusted pursuant to the terms of the Stock Purchase Agreement) *minus*  (y) any and all reasonable costs and expenses of ROA and the other Continuing  Borrowers incurred in connection with the to the entry into, execution and  delivery and performance of the Stock Purchase Agreement and the Supply  Agreement by ROA and the performance by ROA of the transactions contemplated  thereunder as disclosed by ROA to Agent prior to the closing on the Stock  Purchase Agreement. The payment of the Obligations from the net proceeds of  the Purchase Price shall be applied as follows: (x) the first $4,500,000 of  such Purchase Price shall be applied to repayment of the principal balance  outstanding under those Term Loans representing the Outstanding Term Loans  with a balance as of the Closing Date with a principal balance of up to  $17,500,000 on such Closing Date as described in clause (c) of paragraph 2 of  Section 4 of the Financing Agreement and (y) the remaining $3,216,604 shall  be applied to repayment of the principal balance outstanding under the  Revolving Loans (with such proceeds applied first, to the repayment of the  Revolving Loans accruing interest at a per annum rate based on the Chase Bank  Rate, and second, after the repayment of all such Revolving Loans, to the  repayment of the Revolving Loans accruing interests at a per annum rate based  on Libor).

2.

Release of Sold Subsidiaries  and the Assets Thereof. Notwithstanding anything to the contrary  contained in the Financing Agreement or any other Financing Document, Agent  and Lenders hereby agree that immediately upon satisfaction of the  Effectiveness Conditions, the Sold Subsidiaries shall automatically be deemed  to have been released from any and all indebtedness, obligations,  liabilities, undertakings and duties of any and every kind and nature under  the Financing Agreement and the other Financing Documents. Upon the release  described in the preceding sentence, none of the references to the Borrowers  or Companies contained in the Financing Documents, specifically including  without limitation the Financing Agreement, shall be deemed for any purposes  to refer to or include the Sold Subsidiaries. Without limiting the generality  of the foregoing, such release provided for in the first sentence of this  paragraph shall include a release by Agent and Lenders in favor of the Sold  Subsidiaries from any and all joint or several liability for any Obligations  (monetary or otherwise), including without limitation all existing and future  loans (specifically including the Revolving Loans and the Term Loans,  advances or Letter of Credit liabilities or any other liabilities and  obligations incurred at any time by anyone or more of the Borrowers under the  Financing Documents, provided, however, that this release of  liability shall in no way be interpreted to effectuate a release of any kind  with respect to any indebtedness, obligations, liabilities, undertakings and  duties of any kind or nature of any Continuing Borrower with respect to the  Financing Documents (specifically including the Obligations). Furthermore,  immediately upon the effectiveness of the release provided for in this  paragraph, Agent and Lender shall be deemed to have, automatically and  without the necessity of any further action by any party (specifically  including Agent or any Lender): (i) released and terminated any and all  security interests, pledges and liens in any property or assets of the Sold  Subsidiaries granted by the Sold Subsidiaries in favor of the Agent or Lender  (specifically including any and all such security interest, pledges and liens  granted by Memorials in any of the issued and outstanding shares of the  capital stock of Keith and Sioux Falls, collectively together with the  Memorials Stock, the "Released Stock") and (ii) authorized  any Sold Subsidiary, the Purchaser and their respective attorneys and agents  to file UCC-3 termination statements terminating of record any UCC-l  financing statements filed of record in any jurisdiction by Agent or any  Lender as secured party naming such Sold Subsidiary as debtor thereunder.  However, notwithstanding anything to the contrary contained in the foregoing,  the parties hereto acknowledge and agree that no liens on or security  interests in any Excluded Assets (as that term is defined in the Stock  Purchase Agreement) shall be deemed released by virtue of any other  provisions of this letter agreement, and that all such Excluded Assets shall  be deemed to have been transferred by the Sold Subsidiaries to ROA and/or the  other applicable Continuing Borrowers subject to the liens thereon granted by  Sold Subsidiaries under the Financing Documents immediately prior to the  effectiveness of any of the releases provided for in this letter agreement.  At any time from and after the effectiveness of the release provided for in  this paragraph, Agent will cause to be executed and/or delivered to the Sold  Subsidiaries any additional documents or instruments the Sold Subsidiaries  may reasonably request in order to effectuate or evidence or otherwise give  public notice of the releases and lien terminations provided for in this  paragraph, and the Sold Subsidiaries shall be authorized to file any and all  such releases and/or lien termination documents delivered by Agent hereunder  with the appropriate filing offices, provided, however, that  any and all such releases and/or documents shall be prepared, executed, delivered  and recorded at Purchaser's expense.

3.

Return of the Released Stock.  In furtherance of the foregoing, Agent has delivered all of the stock  certificates representing all of the Released Stock that were delivered to  Agent on the Closing Date (together with all instruments of transfer and/or  stock powers relating thereto delivered to Agent on the Closing Date) to  ROA's outside legal counsel, McLane Graf Raulerson & Middleton,  Professional Association ("McLane"), in escrow. Immediately upon  the satisfaction of the Effectiveness Conditions and the effectiveness of the  releases provided for in Sections 1 and 2 above, McLane shall be authorized  (automatically and without the necessity of any further action by any party  (specifically including Agent or any Lender)) to release such stock  certificates and related instruments of transfer and stock powers from escrow  and to deliver the same to ROA and/or as ROA may direct, free and clear of  any security interests, pledges and liens in favor of Agent and/or Lenders as  provided for in Section 1 and 2 above.

4.

Release by Sold Subsidiaries.  In consideration of Agent's and Lenders' agreements and conditional releases  contained herein, each Sold Subsidiary hereby forever releases and discharges  Agent, each Lender and each Issuing Bank, their respective officers,  directors, employees, agents, affiliates, representatives, successors and  assigns (collectively, the "Released Parties") from any and  all claims, causes of actions, damages and liabilities of any nature  whatsoever, known or unknown, which such Sold Subsidiary ever had, now has or  might hereafter have against one or more of the Released Parties which  relates, directly or indirectly, to any of the Financing Documents or the  transactions relating thereto, to the extent that any such claim, cause of  action, damage or liability shall be based in whole or in part upon facts,  circumstances, actions or events existing on or prior to the date hereof.

 
  5.Reaffirmation by Continuing  Borrowers. Each Continuing Borrower hereby acknowledges and agrees that  all of the terms, conditions and provisions of the Financing Documents are  ratified and confirmed and continue unchanged and in full force and effect  and that neither the execution of this letter agreement nor the effectiveness  of any of the consents and/or the releases with respect to the Sold  Subsidiaries or the Memorials Stock provided for herein shall in any way  limit, diminish, modify or otherwise affect (i) any of the respective  obligations, indebtedness and liabilities of each Continuing Borrower to Agent  and Lenders under any of Financing Documents, (ii) the joint and several  nature of the obligations, indebtedness and liabilities of the Continuing  Borrowers under the Financing Documents, or (iii) the existence, validity,  enforceability or perfection of any security interests, pledges or liens  granted by such Continuing Borrowers to secure the Obligations under any of  the Financing Documents (other than the security interest, pledges and liens  in the Memorials Stock to the extent such security interest, pledges and liens  are released in accordance with the provisions hereof), all of which such  grants are hereby reaffirmed and confirmed and shall continue in full force  and effect to secure all such Obligations. Continuing Borrowers specifically  agree and acknowledge that the agreements and conditional releases of Agent  and Lenders provided for herein shall not be deemed to create a "course of  conduct"
 

 

 
 

or "course of dealing" that  would be binding on the Agent or any Lender in the future, and that neither  the Agent nor any Lender shall have any obligations in the future to give  consent to any waivers of any provision of the Financing Documents, whether  or not relating to matters similar to those addressed herein. Continuing  Borrowers represent and warrant that, upon return to ROA of all Excluded  Assets, no assets (including without limitation any raw materials, machinery  or equipment, employment contracts, vendor or supplier contracts) used by ROA  in its manufacturing business continue to be owned by or under the control of  any Sold Subsidiary.

6.

Miscellaneous. WITHOUT  LIMITING THE GENERALITY OF ANY PROVISIONS OF THE FINANCING AGREEMENT, ALL OF  THE PROVISIONS OF THE FINANCING AGREEMENT PROVIDING FOR INDEMNITIES FROM  BORROWERS TO AGENT AND LENDERS, OBLIGATIONS OF THE BORROWERS TO REIMBURSE  AGENT AND LENDERS FOR EXPENSES, SELECTION OF GOVERNING LAW, WAIVERS  (INCLUDING WAIVERS OF THE RIGHT TO JURY TRIAL) AND CONSENTS TO JURISDICTION  AND PROCEDURES FOR SERVICE OF PROCESS ARE INCORPORATED HEREIN BY REFERENCE.

 

7.

Extensions of Deadline.  Also upon execution hereof, Agent and Lenders agree to extend the deadline  for satisfaction of the conditions precedent described in Section l(b), (c)  and (d) of that certain letter dated as of October 24,2007 and executed by  ROA and agreed to by Agent and Lenders, such deadline to be extended to  February 29, 2008.

 

 

 

*[Signature PagesFollow]*

 

 

 

 
 
 

 

 

IN WITNESS WHEREOF, and intending to be legally bound, theparties hereto have caused this letter to be executed and delivered by theirproper and duly authorized officers as of the date set forth above. 

                                                                        VeryTruly Yours, 

                                                                        **CITGROUP / BUSINESS CREDIT, INC.**

                                                                        AsAgent and a Lender 

                                                                        

                                                                        By:/s/_______________________

                                                                        Name:

                                                                        Title:Assistant Vice President 

**                                                                        CHITTENDENTRUST COMPANY,**

                                                                        asa Lender 

                                                                        By:/s/_______________________

                                                                        Name:

                                                                        Title:

ACCEPTED AND AGREED:

**ROCK OF AGES CORPORATION**

**CAROLINA QUARRIES, INC.**

**PENNSYLVANIA GRANITE CORP.**

**KEITH MONUMENT COMPANY LLC**

**ROCK OF AGES MEMORIALS, INC.**

**SIOUX FALLS MONUMENT CO.**

By: /s/_______________________

Name: Kurt M. Swenson 

Title: Chairman and CEO 

[Signature Page to Consent Letter Re Sale of Retail Business/Stockof Memorials] |
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