Document:

Exhibit 10.7
  
 ASSIGNMENT AND ASSUMPTION OF PARTNERSHIP INTERESTS
AND
THIRD AMENDMENT TO THE AMENDED AND RESTATED CERTIFICATE AND
AGREEMENT OF LIMITED PARTNERSHIP
 (GRAND MEADOWS II LIMITED DIVIDEND HOUSING ASSOCIATION LIMITED
PARTNERSHIP)
 This Assignment and Assumption of Partnership Interests and Third Amendment to the Amended and Restated Certificate and Agreement of Limited Partnership (this "Amendment") of GRAND MEADOWS II LIMITED DIVIDEND HOUSING ASSOCIATION LIMITED PARTNERSHIP, a Michigan limited partnership (the "Partnership"), is dated and effective as of August 1, 2012 (the "Effective Date"), by and among NATIONAL TAX CREDIT PARTNERS, L.P., a California limited partnership ("NTCP"), NATIONAL TAX CREDIT, LLC, a California limited liability company, fka National Tax Credit, Inc., a California corporation ("NTCH"; NTCP and NTCH are hereinafter collectively referred to as the "Assignor"), RURAL HOUSING CORPORATION, a Michigan corporation ("RHC"), THOMAS R. RUNQUIST, individually ("TRR"; RHC and TRR are hereinafter collectively referred to as the "Operating General Partner"), and CP GRAND MEADOWS II, LLC, a Michigan limited liability company ("CPGMII"; the "Assignee").
 WITNESSETH:
 WHEREAS, NTCH acquired a general partnership interest and NTCP a limited partnership interest in the Partnership (collectively, the "Partnership Interests") pursuant to the Amended and Restated Certificate and Agreement of Limited Partnership of the Partnership dated as of April 13, 1990, by and among the Operating General Partner and the Assignor (as amended by a First Amendment to Amended and Restated Agreement of Limited Partnership dated as of March 1, 1994, and a Second Amendment to Amended and Restated Agreement and Certificate of Limited Partnership dated as of January 1, 2000, collectively, the "Agreement"), including, but not limited to, a 99% interest in all Partnership profits, losses and tax credits under Section 42 of the Code;
 WHEREAS, Section 10.1 of the Agreement permits the Assignor to transfer and assign all or any part of their Partnership Interest to the Assignee;
 WHEREAS, Section 10.2 of the Agreement authorizes the substitution of the Assignee as a Substituted Partner in the Partnership;
 WHEREAS, the Assignor wishes to sell and assign the Partnership Interests to the Assignee as of the Effective Date for $50,000.00 and other good and valuable consideration, and the Assignee wishes to accept such assignment of the Partnership Interests for the consideration and upon the terms and conditions of this Amendment;
 WHEREAS, the Assignee is willing to undertake all of the obligations of the Assignor under the Agreement (collectively, the "Obligations"); and

  WHEREAS, the Operating General Partner desires to acknowledge such undertaking of the Obligations by the Assignee and to release the Assignor from the Obligations and all other liabilities in connection with its Partnership Interests.
 NOW, THEREFORE, in consideration of the foregoing premises and for other good and valuable consideration hereinafter described, the receipt and sufficiency of which are acknowledged, the parties agree as follows:
 1.                  Capitalized terms used but not defined herein shall have the respective meanings attributed thereto in the Agreement.
 2.                  Provided the Assignee has paid the Assignor , in immediately available funds, the sum of $50,000.00, as of the Effective Date and the Assignor hereby assigns and transfers to the Assignee and the Assignee accepts from the Assignor, one hundred percent (100%) of the Assignor's right, title and interest in and to the Partnership Interests, including, without limitation, the Assignor's entire right to allocations of Profits or Losses and Housing Tax Credits, if any, and all items entering into the computation thereof, and to all distributions of Cash Flow and proceeds from a Sale or Refinancing Transaction, however denominated, under the Agreement; provided, however, that (i) solely for purposes of allocating the profits, losses and tax credits from operations (collectively, the "Tax Benefits") between the Assignor and the Assignee, the Assignor shall receive all Tax Benefits attributable to any day before the Effective Date, and the Assignee shall receive all Tax Benefits attributable to the Effective Date, and any day thereafter; and (ii) the Assignee shall receive all distributions of Cash Flow or proceeds from a Sale or Refinancing Transaction distributed by the Partnership after the Effective Date regardless of whether such distributions are attributable to any period prior or subsequent to the Effective Date.
 3.                  In consideration of the assignment effected hereby, the Assignee hereby assumes and agrees to discharge all of the Obligations. Assignor further covenants and agrees to promptly pay when due any and all transfer or other taxes and assessments that may be statutorily assessed against the Assignor resulting from the transfer of the Partnership Interests from the Assignor to the Assignee.

 4.                  The Operating General Partner, on behalf of itself, the Partnership and its affiliates, hereby (i) acknowledges and consents to the assignment of the Partnership Interests and assumption by the Assignee of the Obligations pursuant to this Amendment, (ii) releases, remises and forever discharges the Assignor from all of the Obligations and from any and all other liabilities, claims, actions, or cause of actions, known or unknown, asserted or unasserted, which they or the Partnership may have relating to or growing out of any action or inaction taken or not taken in connection with the Partnership Interests and/or this Amendment and the transaction described herein (except for breaches of Assignor's representations and warranties hereunder), (iii) covenants and agrees that the Operating General Partner and the Partnership shall indemnify the Assignor, their respective partners and members, and their respective managers, officers, directors and shareholders and hold the Assignor, its partners and members, and their respective managers, officers, directors and shareholders harmless from and against any loss, liability, damage, cost or expense incurred by reason of any demands, claims, suits, actions or proceeding arising out of the Assignee's breach of any representation, warranty, covenant, or agreement in this Amendment, or arising out of Assignor's prior ownership of the Partnership Interests or any of the Project Documents or any other documents relating to the Partnership's Property; and (iv) represents and warrants that it has obtained any and all necessary third party consents or approvals to the assignment and assumption of the Partnership Interests and assumption of the Obligations, all as described herein. By the execution of this Amendment, the Partnership and the Operating General Partner hereby acknowledge and agree that the Assignor has fully and completely satisfied all of the Obligations (financial or otherwise) under the Agreement. The Operating General Partner covenants and agrees, at its expense, to deliver to the Assignor a final 2012 tax return and a Schedule K-1 on or before March 15, 2013.
 5.                  By its execution hereof, the Assignee hereby agrees to become a Substituted Administrative General Partner and a Substituted Limited Partner of the Partnership and, subject to the foregoing provisions of this Amendment, agrees to be bound (to the same extent as the Assignor was bound) by the Agreement, the Project Documents and the provisions therein as they relate to the Assignor or the Partnership Interests.
 6.                  The Assignee is hereby admitted as a Substituted Administrative General Partner and a Substituted Limited Partner with respect to the Partnership Interests for all purposes of the Agreement and NTCH hereby withdraws as Administrative General Partner of the Partnership and NTCP withdraws as Limited Partner of the Partnership.
 7.                  The parties hereby confirm the continuing validity and enforceability of the Agreement, acknowledging that the Assignee shall succeed to all rights and obligations of the Assignor thereunder as of the Effective Date. This provision shall be construed to amend the Agreement to the extent necessary to reflect the assignment of the Partnership Interests to the Assignee and to give effect to the other provisions of this Amendment.
 8.                  Schedule A to the Partnership Agreement is hereby amended and restated by the Schedule A annexed hereto and incorporated by reference herein.
 9.                  Notwithstanding any provisions to the contrary in the Agreement and after consultation with its counsel, the Operating General Partner hereby consents to the transfer and assignment of the Partnership Interests to the Assignee and the substitution of the Assignee as a Substitute Administrative General Partner and Substitute Limited Partner with respect to the Partnership Interests pursuant to this Amendment without any conditions or requirements other than with respect to the representations, warranties, covenants and undertakings of the parties expressly set forth in this Amendment, including, without limitation, the Assignee's (i) assumption of, and agreement to pay, the Obligations, and (ii) agreement to be bound by the terms of the Agreement and the Project Documents.
 10.              The Assignor hereby represents and warrants to the Assignee and the Operating General Partner that (i) the Assignor has the legal right, power and authority to enter into this Agreement and to convey the Partnership Interests to the Assignee as provided herein and that the execution, delivery and performance hereof have been duly authorized by all necessary action, (ii) the Assignor has not heretofore conveyed, pledged, mortgaged or hypothecated the Partnership Interests since it received the same, and (iii) the Partnership Interests are being conveyed to Assignee free and clear of all liens and mortgages.

  11.            The Assignee hereby represents and warrants to the Assignor and the Operating General Partner that the Assignee has the legal right, power and authority to enter into this Agreement and to purchase the Partnership Interests from the Assignor as provided herein and that the execution, delivery and performance hereof have been duly authorized by all necessary action.
 12.            As a material inducement to the Assignor's entering into this Amendment, the Operating General Partner represents and warrants to the Assignor that the following are true and correct as of the Effective Date:
 (a)             The Partnership at all times has been and continues to be a limited partnership duly organized, validly existing and in good standing under the laws governing limited partnerships, as adopted in the state of its formation. The Partnership has taken all requisite action in order to conduct lawfully its business in the state in which the Apartment Complex is situated, and is not qualified or licensed to do business and is not required to be so qualified or licensed in any other jurisdiction. The Partnership has the full power and authority to carry on its business, including without limitation, to own, lease and operate the Apartment Complex.

 (b)             The Compliance Period has ended.
 (c)             Neither the Operating General Partner nor the Partnership has received any notice nor has knowledge of either a compliance violation or other issue relating to any of the Housing Tax Credit rules or regulations or any fact or circumstance which could give rise to such violation.
 (d)             No event of default exists under any mortgage or other loan affecting the Apartment Complex or under any other agreement, instrument or document to which the Partnership is a party or by which the Apartment Complex is bound and, to the knowledge of the Operating General Partner, there is no default or state of facts or event which with notice or the passage of time, or both, would constitute a default under any such mortgage, agreement or document.

 13.           The Operating General Partner shall be the "tax matters partner” (as that term is defined in the Code) of the Partnership (the "Tax Matters Partner"). Within five (5) calendar days after the sending or the receipt of any correspondence or communication relating to the Partnership to or from the IRS which could affect the Assignor, or either of them, the Tax Matters Partner shall promptly forward to the Assignor a photocopy of all such correspondence or communication(s). The Tax Matters Partner, shall not, with respect to any matter which could affect the Assignor, or either of them, take any of the following action without the prior written consent or approval of the Assignor:
 (a)             Extend the statute of limitations for assessing or computing any tax liability against the Partnership (or the amount or character of any Partnership tax items);
 (b)             Settle any audit with the IRS concerning the adjustment or readjustment of any partnership item(s) (within the meaning of Section 6231(a)(3) of the Code);
 (c)                File a request for an administrative adjustment with the IRS at any time or file a petition for judicial review with respect to any such request;
 (d)               Initiate or settle any judicial review or action concerning the amount or character of any partnership tax item(s) (within the meaning of Section 6231(a)(3) of the Code); or
 (e)                Intervene in any action brought by any other Partner for judicial review of a final adjustment.
 In the event of any Partnership level proceeding instituted by the IRS pursuant to Sections 6221 through 6233 of the Code which could affect the Assignor, or either of them, the Tax Matters Partner shall consult with the Assignor regarding the nature and content of all action and defense to be taken by the Partnership in response to such proceeding. The Tax Matters Partner also shall consult with the Assignor regarding the nature and content of any proceeding pursuant to Sections 6221 through 6233 of the Code instituted by or on behalf of the Partnership (including the decision to institute proceedings, whether administrative or judicial, and whether in response to a previous IRS proceeding against the Partnership or otherwise).
 14.            The parties hereto hereby agree to reasonably cooperate in good faith to effect any further amendments to the Agreement and to take such other steps as may be necessary or appropriate in order to more fully reflect and further evidence the assignment of the Partnership Interests and the other transactions effected hereby. Without limiting the generality of the foregoing, the Operating General Partner shall promptly prepare and file with the appropriate government office a Certificate of Amendment which reflects the withdrawal of NCTH as a general partner of the Partnership and the admission of the Assignee in its place and stead and send NCTH a conformed copy of said filed Certificate of Amendment.
 15.            All of the provisions of this Amendment shall survive the withdrawal of the Assignor from the Partnership.
 16.            This Amendment may be executed in several counterparts and all counterparts so executed shall constitute one agreement binding on all parties hereto, notwithstanding that all parties have not signed the original or the same counterpart.
 [End of text; signature page follows]

  IN WITNESS WHEREOF, the parties have caused this Amendment to be duly executed and delivered under seal as of the Effective Date.
  
 ASSIGNOR:                                       NATIONAL TAX CREDIT, LLC,
a California limited liability company, fka National Tax Credit, Inc., a California corporation
                                                            By: National Partnership Investments, LLC,
                                                                   a California limited liability company,
                                                                   its member
 By: Bethesda Holdings I, LLC,
 a Delaware limited liability company,
         its member
 By: AIMCO/Bethesda Holdings,
         Inc., a Delaware corporation, its
         member
  
                                                                            By:  /s/John Bezzant
                                                                            Name:  John Bezzant
                                                                            Title:  Executive Vice President
  
  
 NATIONAL TAX CREDIT PARTNERS, L.P.,
 a California limited partnership
  
 By: National Partnership Investments, LLC, a
         California limited liability company, fka
         National Partnership Investments Corp.,
         a California corporation
         its General Partner
  
 By: Bethesda Holdings I, LLC,
         a Delaware limited liability
         company, its member
  
 By: AIMCO/Bethesda Holdings,
         Inc., a Delaware corporation, its
         member
  
 By:  /s/John Bezzant
 Name:  John Bezzant
 Title:  Executive Vice President

  ASSIGNEE AND SUBSTITUTE
 ADMINISTRATIVE GENERAL
 PARTNER:                                                      CP GRAND MEADOWS II, LLC
  
                                                                         By:  Rural Housing Corporation
                                                                         Its:  Managing Member
  
                                                                                 By:  /s/Mark L. Weshinskey
                                                                                        Mark L. Weshinskey, President
  
 ASSIGNEE AND SUBSTITUTE
 LIMITED PARTNER:                                      CP GRAND MEADOWS II, LLC
  
                                                                         By:  Rural Housing Corporation
                                                                         Its:  Managing Member
  
                                                                                 By:  /s/Mark L. Weshinskey
                                                                                        Mark L. Weshinskey, President
  
 OPERATING GENERAL PARTNER:
  
                                                                         /s/Thomas R. Runquist
                                                                         THOMAS R. RUNQUIST
  
                                                                         RURAL HOUSING CORPORATION
  
                                                                         By:  /s/Mark L. Weshinskey
                                                                                 Mark L. Weshinskey
                                                                                 President
  

  Effective as of the Effective Date
Schedule A
 GRAND MEADOWS II LIMITED DIVIDEND HOUSING ASSOCIATION LIMITED PARTNERSHIP
SCHEDULE OF PARTNERS
 Name and Business Address                                                           Percentage of Partnership
 Interest
 OPERATING GENERAL
 PARTNERS:
  
 Thomas R. Runquist                                                                                          0.4%
 21400 Ridgetop Circle
 Suite 250
 Sterling, Virginia 20166
  
 Rural Housing Corporation                                                                                0.6%
 21400 Ridgetop Circle
 Suite 250
 Sterling, Virginia 20166
  
  
 ADMINISTRATIVE GENERAL
 PARTNER:
  
 CP Grand Meadows II, LLC                                                                                                        0.1%
 21400 Ridgetop Circle
 Suite 250
 Sterling, Virginia 20166 
  
  
 LIMITED PARTNER:
  
 CP Grand Meadows II, LLC                                                                             98.9%
 21400 Ridgetop Circle
 Suite 250
 Sterling, Virginia 20166EX-10.1

		

			 

		

		
			Exhibit 10.1
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			PORTIONS OF THIS EXHIBIT 10.1 MARKED BY AN *** HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

		

			 

		

		

			       

		

		

			 

		

 

		

			CONFIDENTIAL TREATMENT REQUESTED BY THE WARNACO GROUP, INC.

		

		 
		

		
			                                                                                                                                    DMG
		

		
			                                                                                                                                    2 Jul 12
		

		
			 
		

		
			 
		

		
			May 31, 2012
		

		
			 
		

			
					
						Calvin Klein, Inc. (“CKI”)

					
						205 West 39th Street

					
						New York,  N.Y. 10018

					
						 

					
						Attention: Mr. Tom Murry

					
						 

				

		
			 
		

			
					
						Re:

					
					
						Bridge Apparel License Agreement (dated January 31, 2006, as amended)

					
						Bridge Apparel Retail Store License Agreement Europe (dated January 31, 2006)

					
						Bridge Accessories License Agreement (dated January 31, 2006, as amended)

					
						Bridge Accessories only Retail Store License Agreement Europe (dated January 31, 2008, as amended)

					
						Bridge Accessories only Retail Store License Agreement – C&SA (dated January 31, 2008 as amended)

					
						Bridge Apparel Retail Store License Agreement – C&SA (dated 31 October 2011) (collectively the “ Bridge Licenses”)

				

		
			 
		

		
			Dear Tom:
		

		
			CKI and one or more affiliated Warnaco entities (hereinafter individually or in the aggregate, referred to as “Warnaco”) entered into all of the Bridge Licenses referenced above, and have agreed with each other on all the terms and conditions relating to the termination of the Bridge Licenses and the reversion to CKI of all the rights granted to Warnaco thereunder, as well as certain modifications to the Bridge Licenses, all as set forth herein. 
		

		
			Accordingly, for good and valuable consideration as mutually determined between the parties, CKI and Warnaco each, all and both agree and confirm the following (the “Amendment”):
		

			 1.	
			All of the Bridge Licenses shall terminate effective December 31, 2012 (the “Termination Date”), except that Warnaco will continue, subject to and in accordance with all the terms of the applicable Bridge Licenses (except as modified herein), to exclusively commercialize and sell the Spring/Summer 2013 collection men’s  Bridge Apparel and men’s and women’s Bridge Accessories in the licensed Territories under the applicable Bridge Licenses through December 31, 2012; and Warnaco will continue on a non-exclusive basis to sell any and all remaining inventory of men’s and women’s Bridge Apparel and Bridge Accessories (including Spring/Summer 2013) through the disposal period ending August 31, 2013 (the “Disposal Period”),  in distribution channels in the licensed Territories in accordance with the terms of the applicable Bridge Licenses.

		
			
		

		 

		

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			CONFIDENTIAL TREATMENT REQUESTED BY THE WARNACO GROUP, INC.

		

		2.  The obligations, performance and termination of the Bridge Licenses shall be in accordance with the terms and provisions of the applicable Bridge Licenses, except as otherwise modified hereby. Warnaco agrees to waive its receipt of formal written notification of termination of the Bridge Apparel License under §2.1 thereof by CKI, as provided for in the Bridge Apparel License.
		

		
			3.  CKI and Warnaco agree to cooperate in good faith with each other and with CKI’s designee, including any successor licensee, in order to facilitate the orderly transition of the businesses conducted under the Bridge Licenses. Such cooperation will include, without limitation, the following: 
		

		
			(a)            Any press releases or public statements issued regarding the transition of such businesses will be subject to the written approval of both parties.
		

		
			(b)            If requested by CKI, Warnaco will assist CKI (and its designee) in encouraging any distributors, agents, and sub-licensees for Warnaco’s bridge business operated pursuant to one or more of the Bridge Licenses, to meet with and, if CKI and such third party so elect, to continue their relationships and enter into agreements with CKI (or its designee), subject to CKI’s (or its designee’s) direct negotiations with such distributors, agents, and sub-licensees.  Warnaco will provide information as reasonably requested by CKI (or its designee), when possible (subject to confidentiality provisions) regarding such relationships.
		

		
			(c)            Warnaco will review with CKI (or its designee) the status of any sublicense (wholesale and/or retail store) and distributorship relationships so that CKI (or its designee) can fully understand where there might be opportunities to take over or continue such relationships (and possibly enter into direct agreements).  As to store locations, Warnaco will assist CKI (and/or its designee) in obtaining other non-confidential information pertaining to bridge stores (including copies of lease agreements when possible and details about the lessors), including, without limitation, timing of any planned or anticipated bridge store closing or conversions, so that CKI (and/or its designee) can evaluate the possibility (if any) of continuing, without any obligation to do so, the operations of such stores (and entering into direct agreements as to same). 
		

		
			4.  Commencing with the Fall 2013 season, CKI has the right for Fall 2013 and subsequent seasons to itself produce and license others the rights to produce, commercialize and sell Bridge Apparel and Bridge Accessories in the Territories under the Bridge Licenses (among other territories) in all channels. 
		

		
			5.   CKI (or its designee) agrees to reimburse Warnaco for its actual, *** costs reasonably incurred (and subject to reasonable substantiation) in connection with Bridge Apparel and Bridge Accessories products for Spring/Summer 2013 in an amount up to, but not to exceed, *** in the aggregate.
		

		
			6.   CKI further agrees, subject to reasonable substantiation of such costs, to reimburse (or have its designee reimburse) Warnaco for the actual *** costs related to Spring/Summer 
		

		 

		

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			CONFIDENTIAL TREATMENT REQUESTED BY THE WARNACO GROUP, INC.

		

		2013 products: (i) in an amount up to, but not to exceed, *** for Bridge Apparel and (ii) in an amount up to, but not to exceed, *** for Bridge Accessories.
		

		
			7.   Warnaco hereby offers to transfer, assign or sell to CKI (or its designee), at Warnaco’s  *** computed under United States Generally Accepted Accounting Principles (“USGAAP”),  certain fixed assets, including, but not limited to, fixtures associated with or supporting Warnaco’s Bridge Apparel or Bridge Accessories stores or concessions, in whole or in part, the ultimate selection of which (if any) will be at CKI’s  (or its designee’s) discretion and as per notification to Warnaco no later than November 30, 2012.  CKI (or its designee) shall have no obligation to purchase any or all such fixed assets. 
		

		
			8.   By no later than January 31, 2013, Warnaco will close or convert existing Bridge retail stores to CKU, CKJ, or CKJ Accessories stores.   Prior thereto but by no later than October 1, 2012, Warnaco will provide to CKI a schedule of all existing Bridge retail stores by location (indicating full price or outlet) which Warnaco has determined to close or not to convert (specifying closing date) together with the *** of all fixed assets and improvements of each individual store as stated on Warnaco’s then current balance sheet; for this purpose, *** shall be computed under USGAAP. CKI (or its designee) will have until November 30, 2012 to notify Warnaco in writing which, if any, such stores CKI (or its designee) desires transferred to it, and if so Warnaco agrees to use its reasonable commercial efforts to obtain lessor’s consent to a transfer of such certain stores on lease terms acceptable to CKI (or its designee), including any consent fee. For any such leases transferred to CKI (or its designee), CKI agrees that it shall be CKI’s  (or its designee’s) responsibility to pay and to reimburse Warnaco for the *** of all fixed assets as computed under USGAAP for such store,  and that it shall be CKI’s (or its designee’s) responsibility to pay any consent fees required by any lessor in connection with such transfer.  Warnaco currently plans to convert or has converted five (5) existing Bridge outlet stores in Europe to CKJ outlet stores and represents and warrants that it will not open any additional CKJ outlet stores until it is in compliance with the Store Ratios (full priced to outlet) under the applicable license for the applicable term. 
		

		
			9.   Warnaco will continue to pay Minimum Guaranteed Fees under the Bridge Apparel License and the Bridge Accessories License through and including the *** thereunder (i.e. ***), provided however, that Warnaco will not be responsible for remitting any MNST “shortfall” payments (as to Percentage Fees and Advertising Expenditure amounts,  as described in Section 2.1 of  the Bridge Licenses) for any such period and CKI waives any rights and any and all claims relating to such “shortfall” amounts and payments for such period,  except as provided below with respect to the ***  (***).  Percentage Fees will continue to be due at all times, including, applicable to sales during the Disposal Period, in accordance with the terms of the applicable Bridge Licenses.
		

		
			10.   Warnaco has already remitted *** and *** for Minimum Advertising Expenditures (“MAE”) under the Bridge Apparel and Bridge Accessories Licenses, respectively (totaling approximately ***).  CKI has already committed *** of that paid MAE. Warnaco shall be entitled to a credit of *** and shall have no further obligation for any 
		

		 

		

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		advertising expenses or obligations, including any Co-op/PR Obligation, for the *** (i.e., ***) or forward.
		

		
			11.  Warnaco will remit to CKI the additional “shortfall” Percentage Fees and Advertising Expenditure amounts pursuant to Section 2.1 of the Bridge Apparel License only with respect to the *** (i.e., ***) of such license in an amount agreed upon by the parties to be a total of *** (approximately ***).  Such amount is separately confirmed between the parties in that certain agreement dated as of July 27, 2012 resolving all audit issues under the Bridge Licenses and other licenses for the period January 1, 2006-December 31, 2009, the terms of which are set forth in an e-mail from Warnaco to CKI dated April 13, 2012 (the “Audit Agreement”).
		

		
			12.   CKI has agreed to expand the licensed territory for and under the CKJ Jeanswear Apparel and CKJ Jeanswear Accessories licenses to add and include certain additional countries in Africa and countries and certain jurisdictions in the rest of the world as set forth in the amendments annexed hereto; and the parties will finalize and execute the amendments in substantially the form of the amendments annexed hereto as promptly as possible.
		

		
			13.   Warnaco will continue to be responsible for and will perform all of its obligations and actions under the Bridge Licenses through the Termination Date and during the Disposal Period, and thereafter as to those obligations that survive the termination of such agreements (including for example, indemnification provisions) as stated in the Bridge Licenses, in each case, except as modified by this Amendment.  Each of CKI and Warnaco, for themselves and each of their parents, subsidiaries, affiliates, shareholders, officers, directors, employees, predecessors, successors and assigns (collectively, the “Parties”) hereby forever release and discharge each other and, reciprocally, the Parties, from any claims and causes of actions under the Bridge Licenses in connection with or related to Warnaco’s failure to meet the Minimum Net Sales Thresholds in the Bridge Apparel License and CKI’s exercise of its termination rights for such failure or any other claim primarily based on facts or circumstances that CKI is aware of as of the date hereof.  This release shall not relate to any breach of any obligation under this Amendment. CKI’s release of Warnaco in this Paragraph 13 is subject to and conditioned upon Warnaco’s compliance with the payment obligations hereunder and in the Audit Agreement.
		

		
			14.            This Amendment and, as applicable, the Audit Agreement, supersedes all earlier communications, proposals, discussions and negotiations between the parties concerning the termination and reversion of the Bridge Licenses. This Amendment shall not be amended, altered, supplemented, modified, superseded, terminated or otherwise changed, and no provision may be waived, unless in writing executed by the parties and exchanged between them.
		

		
			15.            This Amendment is governed by and is to be construed in accordance with the laws of the State of New York concerning the interpretation and validity of contracts, as if entered into and fully performed herein and without regard to any choice of law, conflicts of law or other similar concepts. 
		

		

		

		 

		

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			CONFIDENTIAL TREATMENT REQUESTED BY THE WARNACO GROUP, INC.

		

		16.            Any dispute or disagreement between the parties concerning this Amendment or, as applicable, the Audit Agreement, not otherwise resolved between them, shall be determined and resolved through the breach and dispute resolution provisions set forth in the Bridge Licenses.
		

		
			17.            Except as otherwise modified herein, the Bridge Licenses shall remain in full force and effect. To the extent there is any discrepancy between this Amendment and any one or more of the Bridge Licenses, this Amendment shall govern and control.
		

		
			18.  This Amendment was drafted and negotiated with full and equal participation from the parties, and no provision herein may be construed against or in favor of any party because of the relevant bargaining positions, strengths or sophistication thereof or because it drafted any particular provisions.
		

		
			19.  All rights and remedies that either party may have hereunder or by operation of law are cumulative, and the pursuit of one right or remedy will not be deemed an election to waive or renounce or to choose among one or more rights or remedies.
		

		
			20.            The terms of this Amendment are and shall be kept confidential.  Except as may be required by law or regulation, or as expressly agreed in writing by the parties, no party shall make any disclosure of this Amendment and terms hereof, except that each party may disclose the same to such of its officers, directors, employees, representatives, agents, auditors, attorneys, and other parties that are required to be advised in connection with such party’s performance of this Amendment.
		

		
			21.            This Amendment may be executed in multiple counterparts, each of which shall be regarded for all purposes as an original, and such counterparts shall constitute a single document. The parties may exchange signatures (in counterparts) by electronic mail or facsimile transmission, which signatures are deemed to be original, valid and binding.
		

		
			The parties have executed this Amendment on this 3rd day of August, 2012.
		

		
			Very truly yours,
		

		
			Warnaco Inc. 
		

		
			 
		

		
			By:             /s/ Jay Dubiner            
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

		

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			CONFIDENTIAL TREATMENT REQUESTED BY THE WARNACO GROUP, INC.

		

		Acknowledged, Agreed and Accepted:
		

		
			 
		

		
			Calvin Klein, Inc.
		

		
			 
		

		
			 
		

		
			By:              /s/ Tom Murry             
		

		
			Title:             Chief Executive Officer
		

		
			Date:             August 3, 2012              
		

		
			 
		

		
			 
		

		

		

		 

		

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		ANNEX A
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			Incorporated herein by reference to Exhibit 10.2 of the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2012, filed on August 6, 2012.
		

		
			 
		

		
			 
		

		

		

		 

		

			 

		

		

			       

		

		

			 

		

 

		

			CONFIDENTIAL TREATMENT REQUESTED BY THE WARNACO GROUP, INC.

		

		ANNEX B
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			Incorporated herein by reference to Exhibit 10.3 of the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2012, filed on August 6, 2012.
		

		
			 
		

		
			 
		

		

		

		 

		

			 

		

		

			       

		

		

			 

		

 

		

			CONFIDENTIAL TREATMENT REQUESTED BY THE WARNACO GROUP, INC.

		

		ANNEX C
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			Incorporated herein by reference to Exhibit 10.4 of the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2012, filed on August 6, 2012.
		

		
			 
		

		
			 
		

		

		

		 

		

			 

		

		

			       

		

		

			 

		

 

		

			CONFIDENTIAL TREATMENT REQUESTED BY THE WARNACO GROUP, INC.

		

		ANNEX D
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			Incorporated herein by reference to Exhibit 10.5 of the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2012, filed on August 6, 2012.
		

		
			 
		

		
			 
		

		

		

		 

		

			 

		

		

			       

		

		

			 

		

 

		

			CONFIDENTIAL TREATMENT REQUESTED BY THE WARNACO GROUP, INC.

		

		ANNEX E
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			Incorporated herein by reference to Exhibit 10.6 of the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2012, filed on August 6, 2012.
		

		
			 
		

		

		

		 

		

			 

		

		

			       

		

		

			 

		

 

		

			CONFIDENTIAL TREATMENT REQUESTED BY THE WARNACO GROUP, INC.

		

		ANNEX F
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			Incorporated herein by reference to Exhibit 10.7 of the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2012, filed on August 6, 2012.

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