Document:

CONFORMED COPY
	 

	 
		 
	 

	 
		AMENDMENT LETTER
		
	 

	 
		 
	 

	 
			
				
				  To:
				

			 	
				
				  Allied Healthcare
				  Group Holdings Limited 
				

				
				  Allied Healthcare
				  International, Inc.
				

				
				  Stone Business
				  Park
				

				
				  Brooms Road
				

				
				  Stone
				

				
				  Staffordshire ST15
				  0TL
				

				
				  Fax No: 01785
				  819031
				

			 

	 
		Attention: David
		Moffatt
	 

	 
		30 January 2007
	 

	 
		Dear Sirs
	 

	 
		Project Air: Amendment
		Letter
	 

	 
		We refer to the 46,000,000
		facility agreement dated 19 July 2004 between Allied Healthcare Group Holdings
		Limited, the Borrowers listed therein, Allied Healthcare International Inc, the
		Guarantors listed therein, the ID Obligors listed therein, Barclays Capital and
		Lloyds TSB Bank PLC as Arrangers and Ancillary Lenders, the Original Lenders
		listed therein, Barclays Bank PLC as ID Bank and Barclays Bank PLC as Agent and
		Security Agent, as amended and restated on 12 December 2006 (the
		‘‘Amended
		Agreement’’).
	 

	 
			
				
				  1
				

			 	
				
				  DEFINITIONS
				

			 

	 
		Unless otherwise stated, terms
		defined in the Amended Agreement have the same meaning in this Letter.
	 

	 
		‘‘Effective
		Date’’ means
		the date on which the Agent notifies the Company that it has received:
	 

	 
			
				
				   
				

			 	
				
				  (i)
				

			 	
				
				  for the Parent and
				  each of the Obligors, either a copy of their respective constitutional
				  documents or a certificate of an authorised signatory of each of them
				  certifying that the constitutional documents previously delivered to the Agent
				  on or before 19 July 2004 for the purposes of the Original Facility Agreement
				  have not been amended and remain in full force and effect;
				

			 

	 
			
				
				   
				

			 	
				
				  (ii)
				

			 	
				
				  a copy of a resolution
				  of the board of directors of the Parent and each Obligor:
				

			 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  approving the terms
				  of, and the transactions contemplated by, this Letter and resolving that it
				  execute this Letter; and
				

			 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  authorising a
				  specified person or persons to execute this Letter on its behalf;
				

			 

	 
			
				
				   
				

			 	
				
				  (iii)
				

			 	
				
				  a specimen of the
				  signature of each person authorised by the resolution referred to in paragraph
				  (ii) above;
				

			 

	 
			
				
				   
				

			 	
				
				  (iv)
				

			 	
				
				  a certificate of the
				  Company (signed by a director) confirming that borrowing or guaranteeing, as
				  appropriate, the Facility A Commitment, the Facility B Commitment and the
				  Facility C Commitment under the Amended Agreement would 
				

			 

	 
		1
	 

	 

	 
	 

	 
	 
		CONFORMED COPY
	 

	 
		 
	 

	 
		not cause any borrowing,
		guaranteeing or similar limit binding on the Parent or any Obligor to be
		exceeded; and
	 

	 
			
				
				   
				

			 	
				
				  (v)
				

			 	
				
				  a certificate of an
				  authorised signatory of the Parent and the relevant Obligor certifying that
				  each copy document relating to it listed at (i) to (iv) above is correct,
				  complete and in full force and effect as at a date no earlier than the date of
				  this Letter.
				

			 

	 
		‘‘Original Facility
		Agreement’’
		means the Facility Agreement dated 19 July 2004 between the Company, the
		Original Borrower, the Parent, the Original Guarantors, the Arrangers, the
		Original Lenders, the Agent and the Security Agent (as each are defined in the
		Original Facility Agreement) as amended from time to time prior to the Amended
		Agreement becoming effective.
	 

	 
			
				
				  2
				

			 	
				
				  AMENDMENTS
				  
				

			 

	 
			
				
				  2.1
				

			 	
				
				  Amendment to the
				  Amended Agreement
				

			 

	 
		The parties to this Letter
		agree that, with effect from the Effective Date, the Amended Agreement shall be
		amended as follows:
	 

	 
		Clause 22.24 shall be deleted
		in its entirety and replaced by the words: 
	 

	 
		Neither the Parent nor any
		Obligor shall open or maintain any bank, deposit or money market account in the
		United States other than:
	 

	 
			
				
				   
				

			 	
				
				  (i)
				

			 	
				
				  the account with Bank
				  of America having account number 002369664279 and ABA Reference 026009593;
				  and
				

			 

	 
			
				
				   
				

			 	
				
				  (ii)
				

			 	
				
				  the account with Bank
				  of America Securities LLC having account number 224-52862-1-2-MMC,
				

			 

	 
		unless it shall have received
		the prior written consent of the Lenders.
	 

	 
			
				
				  2.2
				

			 	
				
				  Continuing
				  obligations
				

			 

	 
		The provisions of the Amended
		Agreement and the other Finance Documents shall, save as amended by this
		Letter, continue in full force and effect. Where there is any inconsistency
		between the terms of this Letter and the Amended Agreement, the terms of this
		Letter will apply.
	 

	 
			
				
				  3
				

			 	
				
				  COSTS AND
				  EXPENSES
				

			 

	 
			
				
				  3.1
				

			 	
				
				  Transaction
				  costs
				

			 

	 
		The Company shall within three
		Business Days of demand reimburse the Agent for the amount of all costs and
		expenses (including legal fees) reasonably incurred by the Agent in connection
		with the negotiation, preparation, printing and execution of this Letter and
		any other documents referred to in this Letter.
	 

	 
			
				
				  3.2
				

			 	
				
				  Payment of Fees,
				  Costs and Expenses
				

			 

	 
		The Company hereby irrevocably
		authorises the Lender to cause the Company to satisfy any payment obligations
		arising pursuant to this Clause 3 by debiting any bank account of the Company
		held with the Lender.
	 

	 
		2
	 

	 

	 
	 

	 
	 
		CONFORMED COPY
	 

	 
		 
	 

	 
			
				
				  4
				

			 	
				
				  MISCELLANEOUS
				

			 

	 
			
				
				  4.1
				

			 	
				
				  Guarantors
				

			 

	 
		Each of the Guarantors and the
		Parent agree to each of the provisions of this Letter, including without
		limitation, the amendments to the Amended Agreement contemplated by this Letter
		and each agrees that nothing in this Letter effects its obligations as a
		Guarantor or in the case of the Parent as the Parent.
	 

	 
			
				
				  4.2
				

			 	
				
				  Reservation of
				  Rights
				

			 

	 
		This Letter is provided by the
		Finance Parties strictly on the basis that the Finance Parties reserve all
		rights and remedies of the Agent, the Security Agent and the Finance Parties
		under the Amended Agreement. Other than as set out in this Letter, nothing in
		this Letter or done pursuant to this Letter, will constitute an amendment to or
		is intended to operate as a release or waiver of any breach or potential breach
		of, or any obligations under any Finance Document.
	 

	 
			
				
				  4.3
				

			 	
				
				  Third Party
				  Rights
				

			 

	 
		A person who is not a party to
		this Letter has no right under the Contracts (Rights of Third Parties) Act 1999
		to enforce any of the provisions of this Letter.
	 

	 
			
				
				  4.4
				

			 	
				
				  Counterparts
				

			 

	 
		This Letter may be signed in a
		number of counterparts, and this has the same effect as if the signatures on
		the counterparts were on a single copy of this Letter.
	 

	 
			
				
				  4.5
				

			 	
				
				  Joint and Several
				  Obligations
				

			 

	 
		The obligations of the Finance
		Parties under this Letter are several. The obligations of the Obligors under
		this Letter are joint and several.
	 

	 
			
				
				  4.6
				

			 	
				
				  Finance Documents
				  
				

			 

	 
		In accordance with the Amended
		Agreement, each of the Company and the Agent designate this Letter as a Finance
		Document.
	 

	 
			
				
				  5
				

			 	
				
				  GOVERNING
				  LAW
				

			 

	 
		This Letter will be governed
		and construed in accordance with English law.
	 

	 
		3
	 

	 

	 
	 

	 
	 
		CONFORMED COPY
	 

	 
		 
	 

	 
		We hereby agree to the terms
		of this Letter:
	 

	 
		The Original
		Lenders
	 

	 
		Barclays Bank PLC
	 

	 
		 
	 

	 
		By: Alan Douglas
	 

	 
		 
	 

	 
		Lloyds TSB Bank plc
	 

	 
		 
	 

	 
		By: Rebecca Killeen
	 

	 
		 
	 

	 
		Ancillary
		Lenders
	 

	 
		Barclays Bank PLC
	 

	 
		 
	 

	 
		By: Alan Douglas
	 

	 
		 
	 

	 
		Lloyds TSB Bank plc
	 

	 
		 
	 

	 
		By: Rebecca Killeen
	 

	 
		 
	 

	 
		The ID Bank
	 

	 
		Barclays Bank PLC
	 

	 
		 
	 

	 
		By: Alan Douglas
	 

	 
		 
	 

	 
		The Agent
	 

	 
		Barclays Bank PLC
	 

	 
		 
	 

	 
		By: Gary Brine
	 

	 
		 
	 

	 
		The Security Agent
	 

	 
		Barclays Bank PLC
	 

	 
		 
	 

	 
		By: Gary Brine
	 

	 
		4
	 

	 

	 
	 

	 
	 
		CONFORMED COPY
	 

	 
		 
	 

	 
		Agreed and accepted by:
		
	 

	 
		The Company
	 

	 
		Allied Healthcare Group
		Holdings Limited 
	 

	 
		 
	 

	 
		By: David Moffatt
	 

	 
		 
	 

	 
		 
	 

	 
		The Parent
	 

	 
		Allied Healthcare
		International Inc.
	 

	 
		 
	 

	 
		By: Timothy Maxwell
		Aitken
	 

	 
		 
	 

	 
		 
	 

	 
		The Original Borrowers
		
	 

	 
		Allied Healthcare Group
		Holdings Limited 
	 

	 
		 
	 

	 
		By: David Moffatt
	 

	 
		 
	 

	 
		Allied Healthcare Holdings
		Limited
	 

	 
		 
	 

	 
		By: David Moffatt
	 

	 
		 
	 

	 
		Allied Healthcare Group
		Limited 
	 

	 
		 
	 

	 
		By: David Moffatt
	 

	 
		 
	 

	 
		Allied Respiratory Limited
		
	 

	 
		 
	 

	 
		By: David Moffatt
	 

	 
		 
	 

	 
		Balfor Medical Limited
	 

	 
		 
	 

	 
		By: David Moffatt
	 

	 
		5
	 

	 

	 
	 

	 
	 
		CONFORMED COPY
	 

	 
		 
	 

	 
		Crystalglen Limited
	 

	 
		 
	 

	 
		By: David Moffatt
	 

	 
		 
	 

	 
		Medigas Limited
	 

	 
		 
	 

	 
		By: David Moffatt
	 

	 
		 
	 

	 
		Nightingale Nursing Bureau
		Limited
	 

	 
		 
	 

	 
		By: David Moffatt
	 

	 
		Omnicare Limited
	 

	 
		 
	 

	 
		By: David Moffatt
	 

	 
		 
	 

	 
		Allied Staffing Professionals
		Limited 
	 

	 
		 
	 

	 
		By: David Moffatt
	 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
		The Original Guarantors
		
	 

	 
		Allied Healthcare Group
		Holdings Limited 
	 

	 
		 
	 

	 
		By: David Moffatt
	 

	 
		 
	 

	 
		Allied Healthcare Holdings
		Limited
	 

	 
		 
	 

	 
		By: David Moffatt
	 

	 
		 
	 

	 
		Allied Healthcare Group
		Limited 
	 

	 
		 
	 

	 
		By: David Moffatt
	 

	 
		6
	 

	 

	 
	 

	 
	 
		CONFORMED COPY
	 

	 
		 
	 

	 
		Allied Respiratory Limited
		
	 

	 
		 
	 

	 
		By: David Moffatt
	 

	 
		 
	 

	 
		Balfor Medical Limited
	 

	 
		 
	 

	 
		By: David Moffatt
	 

	 
		 
	 

	 
		Crystalglen Limited
	 

	 
		 
	 

	 
		By: David Moffatt
	 

	 
		 
	 

	 
		Medigas Limited
	 

	 
		 
	 

	 
		By: David Moffatt
	 

	 
		 
	 

	 
		Nightingale Nursing Bureau
		Limited
	 

	 
		 
	 

	 
		By: David Moffatt
	 

	 
		 
	 

	 
		Omnicare Limited
	 

	 
		 
	 

	 
		By: David Moffatt
	 

	 
		 
	 

	 
		Allied Staffing Professionals
		Limited 
	 

	 
		 
	 

	 
		By: David Moffatt
	 

	 
		 
	 

	 
		 
	 

	 
		The ID Obligors 

	 

	 
		Allied Healthcare Group
		Holdings Limited 
	 

	 
		 
	 

	 
		By: David Moffatt
	 

	 
		7
	 

	 

	 
	 

	 
	 
		CONFORMED COPY
	 

	 
		 
	 

	 
		Allied Staffing Professionals
		Limited
	 

	 
		 
	 

	 
		By: David Moffatt
	 

	 
		8AMENDMENT TO
	 

	 
		STOCK PURCHASE AGREEMENT
	 

	 
		AMENDMENT, dated as of the 30th day of January, 2007, to the
		Stock Purchase Agreement (the “SPA”), dated July 11, 2005, by and
		among the Marvin Richards Shareholders, the CK Members and the Fabio Selling
		Members (collectively the “Sellers”), Sammy Aaron, as Sellers’
		Representative, G-III Leather Fashions, Inc., a New York corporation
		(“Buyer”), and G-III Apparel Group, Ltd., a Delaware corporation,
		(“G-III”).
	 

	 
		RECITALS:
	 

	 
		WHEREAS, Buyer, G-III, the Marvin Richards Shareholders, the CK Members
		and the Fabio Selling Members are parties to the SPA pursuant to which Buyer
		purchased from the Sellers capital stock and membership interest of the
		Acquired Companies and Fabio;
	 

	 
		WHEREAS, the SPA provides that Buyer shall make certain EBITA Payments to
		the Sellers;
	 

	 
		WHEREAS, the parties desire to combine the Division, excluding operations
		related to the Calvin Klein licenses, with the Winlit division of Buyer and, as
		a result, amend provisions of the SPA related to the EBITA Payments;
	 

	 
		NOW, THEREFORE, in consideration of the mutual promises and agreements
		contained herein, the parties hereto agree as follows:
	 

	 
		1.
	 

	 
		Definitions.  All capitalized terms not otherwise defined
		herein shall have the meanings given to them in the SPA.
	 

	 
		2.
	 

	 
		Amendments to SPA.  The SPA is hereby amended as follows:
	 

	 
		(a)
	 

	 
		Definitions for the new terms “CK Division”, “Combined
		Division”, “Combined EBITA” and “CK EBITA” are
		inserted into Section 1.1 of the SPA as follows:
	 

	 
		“CK Division” means, as of February 1, 2007,  a new
		division of Buyer containing the operations of the Division related to the
		Calvin Klein licenses, and any additional Calvin Klein licenses obtained
		primarily as a result of the direct efforts of Sammy Aaron.
	 

	 
		“Combined Division” means, as of February 1, 2007,
		 the combined operations of the Division, excluding operations related to
		the Calvin Klein licenses, and Buyer’s Winlit division.
	 

	 
		“Combined EBITA” means the Combined Division’s
		earnings before interest and taxes and amortization of intangibles, which shall
		be equal to the net sales of the Combined Division less (i) cost of sales,
		including royalties and license fees, except for $100,000 to be paid to Guess?,
		Inc. with respect to the years ending January 31,  2008 and 2009 and (ii)
	 

	 
		

	 

	 
		

	 

	 
		

	 

	 
	 
		

	 

	 
		

	 

	 
		the expenses set forth on Schedule A attached hereto, but only if and to
		the extent such expenses are actually incurred by the Combined Division, other
		than expenses allocated to the Combined Division in accordance with Schedule A,
		all as determined in accordance with Buyer’s accounting and allocation
		procedures outlined in such Schedule and utilized in preparing internal
		financial statements for Buyer’s divisions.
	 

	 
		 “CK EBITA” means the CK Division’s earnings
		before interest and taxes and amortization of intangibles, which shall be equal
		to the net sales of the CK Division less (i) cost of sales, including royalties
		and license fees and (ii) the expenses set forth on Schedule B hereto, but only
		if and to the extent that such expenses are actually incurred by the CK
		Division, other than expenses allocated to the CK Division in accordance with
		Schedule B, all as determined in accordance with the Buyer’s accounting
		and allocation procedures outlined in such Schedule and utilized in preparing
		internal financial statements for Buyer’s divisions.
	 

	 
		(b)
	 

	 
		The definition of the term “EBITA” appearing in Section 1.1 of
		the SPA is hereby amended and restated in its entirety as follows:  
	 

	 
		“EBITA” means (A), with respect to the period ending
		January 31, 2006 and the year ending January 31, 2007, the Division’s
		earnings before interest and taxes and amortization of intangibles, which shall
		be equal to the net sales of the Division less (i) cost of sales, including
		royalties and license fees and (ii) the expenses set forth on Schedule
		1.1(ee) hereto (but only if and to the extent that such expenses are
		actually incurred by the Division), other than expenses allocated to the
		Division in accordance with Schedule 1.1(ee), all as determined in
		accordance with the Buyer’s accounting and allocation procedures outlined
		in such Schedule and utilized in preparing internal financial statements for
		Buyer’s divisions, and (B), with respect to the years ending January 31,
		2008 and 2009, an amount equal to the sum of (1) the product of (a) Combined
		EBITA and (b) 0.47 and (2) CK EBITA.
	 

	 
		(c)
	 

	 
		Section 2.2(c) of the SPA is hereby amended by deleting the words
		“the Division’s” each time they appear in front of
		“EBITA”.
	 

	 
		(d)
	 

	 
		Section 7.4 of the SPA is hereby amended and restated in its entirety as
		follows:
	 

	 
		“Section 7.4
	 

	 
		Division Bonus Plan.  As soon as practicable, the Buyer shall
		adopt a bonus plan for the benefit of certain of the employees of the Combined
		Division  and the CK Division (the “Employee Bonus Plan”).
		 The Employee Bonus Plan shall provide for aggregate payments to such
		employees (the “Employee Bonus Plan Payments”) for each of the
		one-year periods ending on January 31, 2007, January 31, 2008 and January 31,
		2009, in an amount equal to 5% of the EBITA for each such one-year period;
		provided, however, that the EBITA for such one-year period is at
		least $8,000,000 (in the case of the one-year period ending January 31, 2007,
		after giving effect to any reduction of EBITA for such one-year period to the
		extent that the proviso set forth at the end
	 

	 
		

	 

	 
		-2-
	 

	 
		

	 

	 
	 
		

	 

	 
		

	 

	 
		of Section 2.2(d) is applicable); and provided further, however, that the
		sum of the EBITA Payments and the Employee Bonus Plan Payments shall not exceed
		$7,500,000 for each such one-year period.  The Employee Bonus Plan
		Payments shall be distributed to such employees in accordance with the terms
		and conditions of the Employee Bonus Plan.
	 

	 
		3.
	 

	 
		Effect of Amendment.  Except as specifically amended herein,
		the SPA and all other documents, instruments and agreements executed and/or
		delivered in connection therewith, shall remain in full force and effect.
	 

	 
		4.
	 

	 
		Governing Law.  This Amendment shall be governed by and
		construed in accordance with the internal laws of the State of New York without
		regard to principles of conflicts of laws.
	 

	 
		5.
	 

	 
		Counterparts; Facsimile.  This Amendment may be executed by
		the parties hereto in one or more counterparts, each of which shall be deemed
		an original and all of which when taken together shall constitute one and the
		same agreement.  Any signature delivered by a party by facsimile
		transmission, or in “PDF” format circulated by electronic means,
		shall be deemed to be an original signature hereto.
	 

	 
		

	 

	 
		

	 

	 
		-3-
	 

	 
		

	 

	 
	 
		

	 

	 
		

	 

	 
		IN WITNESS WHEREOF, the undersigned have duly executed this Amendment as
		of the date set forth above.
	 

	 
		

	 

	 
		

	 

	 			
	
			 
				 
			 

		  	
			 
				/s/ Sammy Aaron
			 

		  
	
			 
				 
			 

		  	
			 
				SAMMY AARON
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				/s/ Andrew Reid
			 

		  
	
			 
				 
			 

		  	
			 
				ANDREW REID
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				/s/ Lee Lipton
			 

		  
	
			 
				 
			 

		  	
			 
				LEE LIPTON
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				/s/ Sammy Aaron
			 

		  
	
			 
				 
			 

		  	
			 
				SAMMY AARON, as Seller Representative
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				G-III LEATHER FASHIONS, INC.
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				By:
			 

		  	
			 
				/s/ Wayne S. Miller
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				Name: Wayne Miller
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				Title: Senior Vice President
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				G-III APPAREL GROUP, LTD.
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				By:
			 

		  	
			 
				/s/ Wayne S. Miller
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				Name: Wayne Miller
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				Title: Senior Vice President
			 

		  

	 
		

	 

	 
		

	 

	 
		

	 

	 
		-4-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]