Document:

Exhibit 10.10

 

FIRST PLEDGE AND SECURITY
AGREEMENT

 

(Collateral Assignment of
Membership Interests)

 

This FIRST PLEDGE AND SECURITY AGREEMENT (this “Agreement”), dated as of December  27, 2004,
by and between J. Jill, GP, a Massachusetts general partnership whose sole
partners are The J. Jill Group, Inc., a Delaware corporation (“Borrower”) and
J.J. Company, Inc., a Massachusetts corporation (J. Jill, GP is
hereafter referred to as the “Assignor”), in favor or Citizens Bank of
Massachusetts as Agent for the benefit of and on behalf of all of the Lenders,
as such term is defined in that certain Fifth Amended and Restated Loan
Agreement dated as of June 29, 2001 as the same has been and may hereafter be
amended (collectively, the “Loan Agreement”). 
Capitalized terms used herein without definition shall have the meanings
ascribed to them in the Loan Agreement.

 

W I T N E S S E T H:

 

WHEREAS, Assignor is the owner
of one hundred percent  (100%) of the
membership interests in J. Jill, LLC, a  New Hampshire limited liability company (herein the “LLC”); and

 

WHEREAS, Borrower is executing and delivering to the Secured Party a certain Fifth
Amendment  to Fifth Amended and
Restated Loan Agreement of even date (the “Fifth Amendment”); and

 

WHEREAS, Assignor is a Guarantor of the Obligations;
and

 

WHEREAS, Secured Party requires
that Assignor grant a  security
interest in the aforesaid membership interests in the LLC  to the Secured Party as security for the
Obligations of Assignor and Borrower set forth and/or referenced in the
Fifth Amendment to the Loan Agreement.

 

NOW, THEREFORE, in consideration of the premises, the
mutual covenants and agreements herein contained and other good and valuable
consideration, the receipt, adequacy and sufficiency
of which are hereby acknowledged, the parties  hereto, intending to be bound, do hereby agree as follows:

 

1.                                       Grant of Security Interest and Collateral Assignment.  As collateral security for the due and  punctual payment and performance of the Secured Obligations, as defined in Section 2 hereof, the
Assignor  hereby grants to the Secured
Party, with full power and  authority
to exercise all rights and powers granted by the  Assignor hereunder, a lien upon, and a security interest,  in and to, and hereby collaterally assigns to the
Secured Party, the following property (the “Collateral”):

 

All of the Assignor’s right, title and interest, now owned or hereafter acquired, in and
to Assignor’s 100% interest in the LLC,
including, without limitation, any and all interests in the LLC that may subsequently
arise, Assignor’s right to receive distributions from the LLC in respect of Assignor’s interest in the
LLC, whether in cash or in property and
whether during  the continuance of or
on account of liquidation of the LLC (such
right, title and interest of the Assignor in all of the membership interests in the  LLC

 

 

being hereinafter  referred to as the  “Interest”), together with all  proceeds of and distributions in respect of any of the
foregoing.

 

The Assignor shall promptly make, execute and deliver
to the Secured Party such instruments,
documents and certificates and perform such  acts and assurances, as the Secured Party may request to perfect,
to maintain the priority of, or from time to time to renew, the Secured Party’s security interest in and to  the Interest, to confirm or more fully perfect the
rights  granted hereby, or in any way
to assure to the Secured  Party all of
its rights hereunder.  The Assignor
authorizes Secured Party to make all filings and recordings in public offices
or records to perfect Secured Party’s
interest in the Collateral, and Assignor shall, upon request of the Secured
Party, make, execute and deliver such other and further instruments, and take such other and further
actions, as  the Secured Party may
deem necessary or appropriate to  enable
it to realize upon the Interest, to exercise fully  its rights hereunder, and to ratify and confirm
any sale hereunder.

 

2.                                       Secured
Obligations.  Secured Party shall
retain its interest in the Collateral until all of the Obligations have been
fully paid and satisfied.

 

3.                                       No
Secured Party Liability re LLC Indemnification.  The within assignment and security interest is for collateral purposes only, and the
Secured Party shall not, either by virtue hereof, or by the retention of distributions to which the Assignor
might otherwise be entitled, or by virtue of its receipt of distributions from the LLC, or by the exercise of
any of  its rights hereunder, be
deemed to be a member of the LLC  or
to have any liability for the debts, obligations or liabilities of the
LLC, the Assignor or any other participant
in the LLC or to have any obligation to make capital contributions to
the LLC.  The Assignor shall indemnify
and hold harmless the Secured Party in its capacity
as Secured Party from and against any and all  liability, loss or damage which it may suffer or incur and which
arises out of or results from:

 

(i)                                                             The
LLC Agreement;

 

(ii)                                                          This
Agreement or the Secured Party’s receipt of income, property or LLC distributions or the lawful exercise of any
rights of the Secured Party hereunder; and

 

(iii)                                                       Any
claimed or any alleged obligation, liability or duty on the part of the Secured
Party to perform or discharge any of the
terms, covenants  or provisions of the
LLC Agreement or any other  agreement
or document obligating or binding, or  purporting
to obligate or bind, the LLC or any  member
thereof, or any liability or obligation of the LLC;

 

together, in each instance, with all reasonable
costs and  expenses (including,
without limitation, reasonable court  costs
and reasonable attorneys’ fees) paid or incurred in  connection therewith.  Notwithstanding the foregoing, the  Assignor shall not be obligated to indemnify the
Secured  Party hereunder for any
liability, loss or damage which the  Secured
Party may suffer or incur as a result of its gross negligence or willful
misconduct.  The Assignor shall reimburse the Secured Party upon demand for the
full amount  of any indemnity to
which the Secured Party may be entitled  hereunder, and the full amount of the Assignor’s indemnity  obligation shall be considered to be a Secured
Obligation and shall be secured hereby.

 

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4.                                       Definitions.  As use herein, the following terms have the
following meanings:

 

(a)                                  “LLC
Agreement” means the operating agreement of the LLC dated as of December 25, 2004, as the same may, from time to time, be
amended or restated.

 

(b)                                 “UCC”
means the Uniform Commercial Code as in effect in The Commonwealth of
Massachusetts.

 

5.                                       Representations,
Warranties and Covenants.  The Assignor represents and warrants to, and covenants
with, the Secured Party that:

 

(a)                                  The
Interest represents one hundred percent (100%) of the membership interests in
the LLC and is not represented or evidenced
by any form of  certificate or other
document and is not a security  (as
defined in the UCC).  The Interest being
collaterally assigned hereunder shall include any and all future rights and
interests relating in any way to the entirety of all membership interests in
the LLC.

 

(b)                                 The
Collateral is not subject to any restriction which would prohibit or restrict
the granting of a security interest in and collateral assignment of the Interest pursuant hereto, or any  restriction which would prohibit or restrict the
sale  or other disposition of the
Collateral upon default hereunder, or the same has been waived.

 

(c)                                  The Assignor has all power, statutory and otherwise, to execute and deliver this Agreement,
to  perform its obligations hereunder
and to subject the  Collateral to the
security interest created hereby,  all
of which has been duly authorized by all necessary  action.  The
execution and delivery of this Agreement,  and the performance of this Agreement and the enforcement of the security interest granted
hereby,  will not result in any
violation of or be in conflict with
or constitute a default under any term of any agreement or instrument,
or any judgment, decree, order, law,
statute, rule or governmental regulation applicable to the Assignor or
the Collateral, or result in the creation
of any mortgage, lien, charge  or
encumbrance upon the Collateral or any other of the  properties or assets of the Assignor (except
pursuant hereto).

 

(d)                                 The
Assignor is the sole record and beneficial
owner of the Collateral, and neither the  Collateral nor the proceeds thereof are subject to any  pledge, lien, security interest, charge or
encumbrance  except the lien created
pursuant to this Agreement.  The Assignor will defend the Collateral against
all  claims and demands of all
persons at any time claiming any interest therein.  Other than the financing statements filed
pursuant to this Agreement, no currently
effective financing statement covering the  Collateral is on file in any public office where such  financing statements are required or permitted to
be filed pursuant to the UCC.

 

(e)                                  The
Assignor shall not sell, assign, pledge, encumber,
grant a security interest in or otherwise transfer or dispose of, or
create or suffer to be created any lien,
security interest or encumbrance on, any of the Collateral, except as
permitted by the Loan Agreement, without the prior written consent of the
Secured Party (which consent the

 

3

 

Secured
Party may give or withhold in its sole discretion).  The Assignor shall give the Secured Party
prompt and detailed notice (i) of any lien, security interest, encumbrance or
claim made or asserted against any of the
Collateral, (ii) of any  distribution
of cash or other property by the LLC, whether in complete or partial
liquidation or otherwise, and of any other
material change in the composition of the Collateral, and (iii) of the
occurrence of any other event which could have a material adverse effect on the aggregate value of the Collateral
or on the security interest created hereunder.

 

(f)                                    The
Assignor’s principal place of business is located at 4 Batterymarch Park,
Quincy, Massachusetts 02169.  The
Assignor is organized under the laws of The Commonwealth of Massachusetts.  The Assignor will not change the state of
Assignor’s organization or the location of its principal place of business without (i) giving the  Secured Party thirty (30) days prior written
notice  thereof, and (ii) in
connection with any such changes,  executing
and delivering, or causing to be executed and delivered, to the Secured
Party all such additional security
agreements and other documents as the Secured Party shall reasonably
require due to any such change.

 

(g)                                 The
Assignor will not change its name without (i) giving the Secured Party thirty
(30) days prior written notice thereof and
(ii) in connection  with any such
change, executing and delivering, or  causing
to be executed and delivered, to the Secured Party all such additional
security agreements, financing statements and other documents as the Secured Party
shall reasonably require.

 

6.                                       Events
of Default.

 

(a)                                  The occurrence of any Event of Default pursuant to the Loan Agreement shall constitute an event of default (“Event
of Default”) hereunder.

 

(b)                                 If
an Event of Default shall occur hereunder:

 

(i)                                                             The
Secured Party may take possession of the Collateral
and may exclude the Assignor, and all persons claiming by, through or
under the Assignor, from possession thereof, and may assign the Collateral to a nominee or a third  party (it being understood that, in connection
therewith, the Secured Party or any third
party  assignee or nominee of the
Secured Party shall  have the right to
exercise, in the name of the Assignor, Assignor’s rights and powers as a
member of the LLC); and

 

(ii)                                                          The
Secured Party shall have all rights and remedies of a secured party available
under the UCC and any other rights and remedies available under this Security Agreement or at law or in
equity.

 

(c)                                  In
the event of the taking of possession of the Collateral,
the Secured Party or any third party assignee  or nominee of the Secured Party, may, in addition to (but  in no way limiting) the foregoing remedies, become
a substitute member in the LLC, subject to the applicable provisions of the UCC, the New Hampshire Limited
Liability Company Act and the LLC 

 

4

 

Agreement.

 

(d)                            More specifically, but in no way in limitation of
the rights and remedies of the Secured
Party, the Secured  Party may, upon
ten (10) days’ notice (which notice shall be deemed to satisfy any
requirement of reasonable notification) to the Assignor of the time, place and
circumstances of sale, and without liability for any diminution in price which
may have occurred, sell or otherwise dispose
of all or any part of the Collateral. 
Such sale or other disposition may be
by public or private proceedings and may be made by way of one or more
contracts, as a unit or in portions, at such time and place, by such method,
and in such manner and on such terms, as
the Secured Party may determine.  At any
public  sale, the Secured Party shall
be free to purchase all or  any part
of the Collateral.  The Assignor
recognizes that the fact that the Interest is not registered under the Securities Act of 1933 and is unlikely to be
registered in  the future may
necessitate a private sale which is likely  to result in a lower price than would a public sale, and  hereby consents to such a private sale and agrees
that the same is commercially reasonable.

 

(e)                                  The
proceeds of any sale or other disposition of or
collection of or other realization upon all or any part of the
Collateral (together with any cash held as Collateral
hereunder), shall be applied in the following  order of priority: first, to pay the costs and expenses of  collection, custody, sale or other disposition or
delivery  (including, without
limitation, reasonable legal costs and  attorneys’
fees) and all other reasonable charges incurred by the Secured Party
with respect to the Collateral; second, to
the payment of the Secured Obligations in such  order as the Secured Party may, in its sole discretion,  determine; and third, to pay any surplus to the
Assignor  or to any person or party
lawfully entitled thereto, or as a court of competent jurisdiction may
direct.

 

(f)                                    The
receipt given by the Secured Party for the purchase money paid at any sale
shall be a sufficient discharge therefor to any purchaser of all or any part of
the Collateral sold.  No such purchaser,
after paying such purchase money and receiving such receipt, shall be bound to see to the application of such purchase money
or any  part thereof, or in any manner
be answerable for any loss, misapplication or nonapplication of any such
purchase money, or any part thereof, or be
bound to inquire as to the authorization, necessity, expediency or
regularity of any such sale.

 

7.                                       Attorney
in Fact. 
The Secured Party is hereby appointed the attorney-in-fact, with
full power of substitution, of the Assignor
for the purpose of carrying out the provisions hereof and taking any
action and executing or causing the filing
of any instruments, including, without limitation, financing or
continuation statements, conveyances, assignments
and transfers which are required to be taken or executed by the
Assignor, and including any documents required to be signed by the Assignor to
designate the Secured Party or its nominee or third party assignee, or the purchaser of all or part
of the Collateral, as a substitute member in
the LLC in the event of foreclosure,  which
the Secured Party may deem necessary or advisable to accomplish the
purposes hereof, which appointment as attorney-in-fact is coupled with an
interest and is irrevocable.  The
Assignor shall indemnify and hold harmless
the Secured Party from and against any liability or damage which it may
incur in the exercise and performance, in
good faith, of any of its powers and duties  specifically set forth herein, but not for any liability or
damage incurred on account of the gross

 

5

 

negligence or willful
misconduct of the Secured Party.

 

8.                                       Waivers,
Etc.  To the extent permitted by law,
the Assignor hereby waives any right it may
have under the  Constitution of The
Commonwealth of Massachusetts (or under the constitution of any other
state, or under the Constitution of the
United States of America), to notice or  to a judicial hearing prior to the exercise of any right or  remedy provided hereby to the Secured Party and
waives the  Assignor’s rights, if
any, to set aside or invalidate any  sale
duly consummated in accordance with the provisions  hereof on the grounds (if such be the case) that
the sale was consummated without a prior judicial hearing.  The Assignor’s waivers under this Section 8
have been made voluntarily, intelligently
and knowingly, and after the  Assignor
has been apprised and counseled by the Assignor’s attorneys as to the
nature thereof and the Assignor’s possible
alternative rights.  No delay or omission
on the  part of the Secured Party in
exercising any right hereunder  shall
operate as a waiver of such right or of any right hereunder.  Any waiver of any such right on any one occasion shall not be construed as a bar to or
waiver of  any such right on any such
future occasion.  No course of  dealing between the Assignor and the Secured Party
nor any  failure to exercise, nor any
delay in exercising, on the  part of
the Secured Party, any right, power or privilege  hereunder or under any of the Secured Obligations, shall operate
as a waiver thereof; nor shall any single or partial
exercise of any right, power or privilege hereunder or thereunder
preclude any other or further exercise thereof or the exercise of any other
right, power or privilege.

 

9.                                       Termination;
Assignments, Etc.  This Agreement  and the security interest in and lien on the Collateral  created hereby shall terminate when all of the
Secured Obligations have been paid
in full.  In the event of a sale  or assignment (including without limitation a
collateral  assignment) by the Secured
Party of all or any part of the  Secured
Obligations held by it, the Secured Party shall be  deemed to have assigned or transferred its rights
and interests under this Agreement,
to the extent of such sale  or
assignment, to the purchaser or purchasers of such held Obligations, whereupon such purchaser or
purchasers shall  become vested with
the powers and rights so assigned by the  Secured Party hereunder and the Secured Party shall, to  that extent, thereafter be released and
discharged from any  liability or
responsibility hereunder, with respect to the  rights and interest so assigned, but if and to the extent  that the Secured Party retains any interest in
the Collateral, the Secured Party
will continue to have the  rights and
powers set forth herein with respect thereto.

 

10.                                 Governmental
Approvals, Etc.  Upon the exercise by
the Secured Party of any power, right, privilege or remedy pursuant to this
Agreement which requires any consent, approval, registration, qualification or
authorization of any governmental authority or instrumentality, the Assignor shall execute and deliver, or  will cause the execution and delivery of, all
applications,  certificates,
instruments and other documents and papers that the Secured Party may
require therefor.

 

11.                                 Notices,
Etc.  All notices, requests, demands,
consents, approvals or other communications to or upon the respective parties hereto shall be in writing and
delivered  in hand or mailed by
certified or registered mail, return  receipt
requested, and shall conclusively be deemed to have  been received and shall be effective on the day
on which  delivered in writing to the
party to which such notice,  request,
demand, consent, approval or other communication  is required or permitted to be given or made under this  Agreement (or, in the event of refusal of
delivery, when  refused) addressed in
the case of any Secured Party, to:

 

6

 

	
   

  	
  Citizens Bank of Massachusetts

  
	
   

  	
  28 State Street

  
	
   

  	
  Boston, MA 02109

  
	
   

  	
  Attn: Lori B. Leeth, Senior
  Vice President

  
	
   

  	
   

  
	
  with a copy by regular mail to:

  
	
   

  	
   

  
	
   

  	
  Adler Pollock & Sheehan,
  P.C.

  
	
   

  	
  175 Federal Street

  
	
   

  	
  Boston, MA 02110

  
	
   

  	
  Attn: Paul J. Levenson, Esq.

  
	
   

  	
   

  
	
  and in the case of the Assignor, to:

  
	
   

  	
   

  
	
   

  	
  J. Jill, LLC

  
	
   

  	
  100 Birch Pond Drive

  
	
   

  	
  Tilton, NH 03276

  
	
   

  	
   

  
	
  With a copy by regular mail to:

  
	
   

  	
   

  
	
   

  	
  Foley Hoag LLP

  
	
   

  	
  155 Seaport Boulevard

  
	
   

  	
  Boston, MA 02210

  
	
   

  	
  Attn: David R. Pierson, Esq.

  
					

 

or at such other address as either party may hereafter specify in writing to the other.  A notice given in  accordance with this Section 11 is herein called a
“Notice”.

 

12.                                 Miscellaneous.

 

(a)                             The
Secured Party shall be under no duty or liability with respect to the
Collateral other than to use reasonable
care in the custody of any certificate  representing
the Collateral while in its possession, and shall not be liable for any
failure to take action necessary to
preserve rights against prior parties on any instrument constituting
Collateral.

 

(b)                            The
rights and remedies of the Secured Party herein
provided or provided under any other agreement  or instrument, or otherwise available, are cumulative, and are in
addition to and not exclusive of or in limitation
of any rights and remedies provided by law,  including, without limitation, the rights and remedies of a
secured party under the UCC.

 

(c)                             All
costs and expenses, including without limitation,
legal costs and reasonable attorneys’  fees,
incurred by the Secured Party in enforcing this Agreement shall be chargeable
to and secured by the Interest and other Collateral hereunder.

 

(d)                                 All
rights of the Secured Party hereunder shall inure to the benefit of its

 

7

 

successors and assigns, and this
Security Agreement shall bind the Assignor’s heirs, legal
representatives, successors and assigns. 
This Security Agreement may be
executed in any number of  counterparts,
each of which shall be an original, but  all of which together shall constitute one instrument.

 

(e)                                  The
Assignor agrees that the Assignor’s obligations and the rights of the Secured
Party hereunder and under the Secured Obligation may be enforced by specific performance hereof and thereof  and temporary, preliminary and/or final injunctive
relief relating hereto and thereto, without
necessity  for proof by the Secured
Party that the Secured Party would otherwise suffer irreparable harm,
and the Assignor hereby consents to the issuance of such specific injunctive
relief.

 

(f)                                    If
any provision hereof shall be invalid or unenforceable
in any respect or in any jurisdiction,  the
remaining provisions hereof shall remain in full force and effect and
shall be enforceable to the maximum extent permitted by law.

 

(g)                                 No consent, approval or waiver hereunder or pursuant hereto shall be binding unless in
writing.

 

(h)                                 The
section headings herein are for convenience
of reference only and shall not be considered in construing this
Agreement.

 

(i)                                This
Agreement and any other instruments executed and delivered to evidence,
complete, or perfect the transactions
contemplated hereby, will be interpreted, construed, applied and
enforced in accordance with the laws of The Commonwealth of Massachusetts applicable to contracts to be
performed  entirely within
Massachusetts, regardless of (i) where  any
such instrument is executed or delivered; or (ii)  where any payment or other performance required by
any such instrument is made or required to be made; or (iii) where any breach of any provision of any
such instrument occurs, or any cause
of action otherwise  accrues; or (iv)
where any action or other proceeding is instituted or pending; or (v)
the nationality, citizenship, domicile,
principal place of business, or  jurisdiction
of organization or domestication of any party; or (vi) whether the laws
of the forum jurisdiction otherwise would apply the laws of a jurisdiction
other than The Commonwealth of Massachusetts; or (vii) any combination of the foregoing. 
Notwithstanding the foregoing, the laws of the jurisdiction where
any of the Collateral is situated or
otherwise has a situs will apply to the  perfection, disposition, and realization upon such Collateral.

 

(j)                                To
the full extent permitted by applicable law, any action to enforce, arising out
of, or relating in any way to, any of the provisions of this Agreement may be
brought and prosecuted in such court or
courts located in The Commonwealth of Massachusetts as is provided by law;
and the parties consent to the jurisdiction
of said court or courts located in The Commonwealth of Massachusetts and
to service of process by registered mail, return receipt requested, or by any
other manner provided by law.

 

(k)                             The
Assignor agrees that in dealing with the Secured Party, the Assignor shall look
solely to the assets and property of the Secured Party, in that no trustee,

 

8

 

beneficiary, officer, director or agent of the Secured Party assumes
any personal liability for the obligations of the Secured Party.

 

 

[Remainder of page
intentionally left blank.]

 

9

 

EXECUTED as a sealed instrument in Boston,
Massachusetts as of the day and year above first written.

 

 

	
  WITNESS:

  	
  ASSIGNOR

  
	
   

  	
  J. JILL, GP

  
	
   

  	
  By: J.J. COMPANY, INC.

  
	
   

  	
  Its Managing General Partner

  
	
   

  	
   

  	
   

  
	
  /s/ Mara D. Calame

  	
   

  	
   

  	
  By:

  	
  /s/ Olga L.
  Conley

  	
   

  
	
   

  	
   

  	
  Name: Olga L. Conley

  
	
   

  	
   

  	
  Title: President

  
						

 

10

 

The undersigned hereby consents to the execution and
delivery of the foregoing Agreement, the pledge of the Interest (as defined
therein) and the acquisition and/or sale of the Interest by the Secured Party,
all as provided therein, and the LLC hereby warrants that it has not granted to
anyone any right of first offer, right of first refusal or other preferential
right of acquisition which might otherwise be applicable to such pledge,
acquisition and/or sale pursuant to the LLC Agreement.  Whoever, after default, acquires the interest
from the Secured Party, including, without limitation, the Secured Party if it
shall so acquire, may become a member of the LLC by agreeing so to become in
writing.

 

	
  WITNESS:

  	
   

  	
  J. JILL, LLC

  
	
   

  	
   

  	
   

  
	
  /s/ Mara D. Calame

  	
   

  	
  By:

  	
  /s/ Olga L. Conley

  	
   

  
	
   

  	
   

  	
   

  	
  Olga L. Conley, Manager

  	
   

  

 

11Exhibit
10.11

 

ASSIGNMENT AND ASSUMPTION AGREEMENT

 

DATE OF EXECUTION OF ASSIGNMENT AND
ASSUMPTION AGREEMENT:

December 26, 2004

 

	
  ASSIGNOR:

  	
   

  	
  ASSIGNEE:

  
	
  The J. Jill Group, Inc.

  	
   

  	
  J. Jill, LLC

  
	
  a Massachusetts Corporation

  	
   

  	
  a New Hampshire limited liability company

  
	
  4 Batterymarch Park

  	
   

  	
  4 Batterymarch Park

  
	
  Quincy, MA 02169

  	
   

  	
  Quincy, MA 02169

  

 

CLC:

 

Citizens Leasing Corporation

One Citizens Plaza

Providence, RI  02903

 

PROPERTY:  See Attached Schedule A

 

	
  TYPE OF CONTRACT:

  	
   

  	
  Secured Promissory Note No. 5 dated May 30,
  2003 issued pursuant to Master Security Agreement dated December 23, 1998, as
  amended from time to time by and between CLC (as Secured Party) and DM
  Management Company, as original debtor, now known as The J. Jill Group, Inc.
  (the “Debtor) (the “Loan Documents”).

  

 

This
Assignment and Assumption Agreement (“Agreement”) is entered into by and among
CLC, Assignor, and Assignee with respect to the assignment by Assignor to
Assignee of Assignor’s Interest in the Loan Documents.

 

WITNESSETH
THAT:

 

WHEREAS, Assignor
and CLC are currently parties of the Loan Documents;

 

WHEREAS, CLC
is legal owner and holder of the Loan Documents;

 

WHEREAS,
pursuant to a corporate reorganization, Assignor is assigning, or has assigned,
certain of its property to Assignee, including the property covered by the Loan
Documents (the “Subject Equipment”), and;

 

WHEREAS, the
Loan Documents provides that Assignor may not assign, sublease or dispose of
the Subject Equipment or any interest therein or in the Loan Documents without
the prior written consent of CLC;

 

NOW,
THEREFORE, the parties hereto agree as follows:

 

 

1.             In consideration of the foregoing
and for other good and valuable consideration, the receipt of which is hereby
acknowledged, Assignor hereby and by these presents does grant and convey unto
Assignee, its successors and assigns, all of Assignor’s right, title and
interest in and to the Loan Documents and the Subject Equipment, to have and to
hold the same unto Assignee, its successors and assigns forever, subject, however,
to the terms, conditions and provisions of the Loan Documents, and upon the
condition that such assignment is acknowledged and agreed to by CLC by its
execution of this Agreement.

 

2.             To induce CLC to acknowledge,
consent and agree to such assignment and to execute this Agreement and in
consideration of its so doing, Assignee hereby promises to perform all of the
duties and obligations of Assignor under the Loan Documents and pay all amounts
now or hereafter due and payable thereunder to CLC, its successors and
assigns.  Assignee hereby unconditionally
assumes, becomes a party to and agrees to perform and make the payments
required by the Loan Documents as though Assignee was for all intents and
purposes the Debtor named in the Loan Documents.

 

3.             Without limiting the generality of
the foregoing, Assignee hereby reaffirms the grant of a first priority security
interest to CLC in the Subject Equipment as set forth in the Loan Documents,
and authorizes CLC to file any Uniform Commercial Code (“UCC”) financing
statements with respect to the Subject Equipment naming Assignee as debtor in
all appropriate jurisdictions.  Assignor
and Assignee also authorize CLC to file any UCC amendments pursuant to which
any existing UCC financing statements filed against the Assignor are amended to
change the name of the debtor to Assignee.

 

4.             Except as expressly modified
hereby, the Loan Documents shall remain in full force and effect and is hereby
ratified and confirmed in all respects.

 

5.             This Agreement may be executed in
any number of counterparts, all of which together shall constitute one and the
same instrument, and each of the parties hereto may execute this Agreement by
signing any such counterpart.

 

 

[Remainder of
page is intentionally left blank]

 

2

 

IN WITNESS
WHEREOF, the parties hereto have caused this Assignment and Assumption
Agreement to be executed the day and year first above written.

 

	
  ASSIGNOR:

  	
  ASSIGNEE:

  
	
   

  	
   

  
	
  The J. Jill Group, Inc.

  	
  J. Jill, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Olga L. Conley

  	
   

  	
  By:

  	
  /s/ Linda L. Trudel

  	
   

  
	
  Title:

  	
  EVP/Chief Financial Officer

  	
   

  	
  Title:

  	
  VP/Corporate Controller

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  CLC:

  	
   

  
	
   

  	
   

  
	
  CITIZENS LEASING CORPORATION

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ David T. Miele

  	
   

  	
   

  
	
  Title:

  	
  Senior Vice President

  	
   

  	
   

  
											

 

3

 

SCHEDULE
A

 

to
the Assignment and Assumption Agreement

 

	
  1.

  	
  a.

  	
  CLC Account Number: 325.5

  
	
   

  	
   

  	
   

  
	
   

  	
  b.

  	
  Contract Type: Secured Promissory Note No.
  5 dated May 30, 2003

  
	
   

  	
   

  	
   

  
	
   

  	
  c.

  	
  Current Monthly Rent: Secured Promissory
  Note No. 5: $122,328.96

  
	
   

  	
   

  	
   

  
	
   

  	
  d.

  	
  Equipment Description: See Attached
  Schedule A

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