Document:

Fourth modification to Loan and Security Agreement with Comerica Bank

 Exhibit 10.48 
  

			
	

	 	 FOURTH MODIFICATION TO
 LOAN AND SECURITY AGREEMENT

 This Fourth Modification to Loan and Security Agreement (this “Modification”) is entered
into by and between CYGNE DESIGNS, INC., a Delaware corporation (the “Borrower”) and COMERICA BANK (“Bank”), whose Western Market Headquarters is located at 333 West Santa Clara Street, San Jose, California as of March 26,
2008. 
 RECITALS 
 This Modification is entered into upon the basis of the following facts and understandings of the parties, which facts and understandings are acknowledged by the parties to be true and accurate: 
 Bank and Borrower previously entered into a Loan and Security Agreement (Accounts and Inventory) dated July 30, 2007. The Loan and Security
Agreement was subsequently amended pursuant to the First Modification to Loan and Security Agreement dated August 27, 2007, the Second Modification to Loan and Security Agreement, dated November 7, 2007 and the Third Modification to Loan
and Security Agreement, dated December 20, 2007. The Loan and Security Agreement and each modification shall collectively be referred to herein as the “Agreement.” 
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as set forth below.

 AGREEMENT 
 1.
Incorporation by Reference. The Recitals and the documents referred to therein are incorporated herein by this reference. Except as otherwise noted, the terms not defined herein shall have the meaning set forth in the Agreement. 

2. Modification to the Agreement. Subject to the satisfaction of the conditions precedent as set forth in Section 3 hereof, the Agreement
is hereby modified as set forth below. 
 (a) The definition of “Borrowing Base” contained in Section 1.6 of
the Agreement is hereby deleted in its entirety and replaced with the following: 
 “1.6 ‘Borrowing Base’ shall
mean the sum of: (1) Eighty percent (80%) of the net amount of Eligible Accounts after deducting therefrom all payments, adjustments and credits applicable thereto; (2) the amount, if any, of the advances against Inventory
agreed to be made pursuant to any Inventory Rider, or other rider, amendment or modification to this Agreement, that may now or hereafter be entered into by Bank and Borrower; and (3) the lesser of (i) Fifteen percent (15%) against
all letters of credit naming the Borrower as the beneficiary and advised by Bank, in form satisfactory to Bank or (ii) Three Hundred Fifty Thousand Dollars ($350,000). Anything contained in the foregoing to the contrary notwithstanding, Bank
may adjust the Borrowing Base percentage(s) and the definition of Eligible Accounts and Eligible Inventory, in each case as provided for under subsection 6.7 hereof.” 
 (b) In Section 1.18(k) contained within the definition of “Eligible Accounts” in the Agreement, the percentage “fifty
(50%)” is deleted in its entirety and replaced with “forty percent (40%)”. 

 (c) Section 6.5 of the Agreement is hereby deleted in its entirety and replaced with
the following: 
 “6.5 Borrower shall keep the Inventory only at the following location: 4900 Zambrano Street, Commerce,
California 90040 and the owner or mortgagee of the respective location is RREEF America Reit II Corp. MMMM3 California, a Maryland corporation. 
 a. Borrower, immediately upon demand by Bank therefor, shall now and from time to time hereafter, at such intervals as are reasonably requested by Bank, deliver to Bank, designations of Inventory specifying
Borrower’s cost of Inventory, the wholesale market value thereof and such other matters and information relating to the Inventory as Bank may request; 
 b. Borrower’s Inventory, valued at the lower of Borrower’s cost or the wholesale market value thereof, at all times pertinent hereto shall not be less than N/A Dollars ($ N/A) of which no less than N/A
Dollars ($ N/A) shall be in raw materials and finished goods; 
 c. All of the Inventory is and shall remain free from all
purchase money or other security interests, liens or encumbrances, except as held by Bank; 
 d. Borrower does now keep and
hereafter at all times shall keep correct and accurate records itemizing and describing the kind, type, quality and quantity of the Inventory, its cost therefor and selling price thereof, and the daily withdrawals therefrom and additions thereto,
all of which records shall be available upon demand to any of Bank’s officers, agents and employees for inspection and copying; 
 e. All Inventory, now and hereafter at all times, shall be new Inventory of good and merchantable quality free from material defects; 
 f. Inventory is not now and shall not at any time or times hereafter be located or stored with a bailee, warehouseman or other third party without Bank’s prior written consent, and, in such event, Borrower will
concurrently therewith cause any such bailee, warehouseman or other third party to issue and deliver to Bank, warehouse receipts in Bank’s name evidencing the storage of Inventory and/or an acknowledgment by such bailee of Bank’s prior
rights in the Inventory, in each case in form and substance acceptable to Bank. In any event, Borrower shall instruct any third party to hold all such Inventory for Bank’s account subject to Bank’s security interests and its instructions;
and 
 g. Bank shall have the right upon demand now and/or at all times hereafter, during Borrower’s usual business
hours, after reasonable notice, to inspect and examine the Inventory and to check and test the same as to quality, quantity, value and condition and Borrower agrees to reimburse Bank for Bank’s reasonable costs and expenses in so doing.

 (d) Section 6.16(b) of the Agreement is hereby deleted in its entirety and replaced with the following: 
 “b. Borrower shall deliver to Bank within thirty (30) days after the end of each Month, a Company-Prepared balance sheet and
profit and loss statement covering Borrower’s operations and deliver to Bank within ninety (90) days after the end of each of Borrower’s fiscal years an Audited statement of the financial condition of Borrower for each such fiscal
year by an independent certified public accountant of recognized standing selected by Borrower and approved by Bank, including but not limited to, a balance sheet and profit and loss statement and any other report requested by Bank relating to the
Collateral and the financial condition of 

  

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Borrower, and a certificate signed by an authorized employee of Borrower to the effect that all reports, statements, computer disk or tape files, computer
printouts, computer runs, or other computer prepared information of any kind or nature relating to the foregoing or documents delivered or caused to be delivered to Bank under this subparagraph are complete, correct and thoroughly present the
financial condition of Borrower and that there exists on the date of delivery to Bank no condition or event which constitutes a breach or Event of Default under this Agreement.” 
 3. Legal Effect. 
 (a)
Except as expressly set forth herein, the execution, delivery, and performance of this Modification shall not operate as a waiver of, or as an amendment of, any right, power, or remedy of Bank under the Agreement, as in effect prior to the date
hereof. Borrower ratifies and reaffirms the continuing effectiveness of all promissory notes, security agreements, environmental agreements, and all other instruments, documents and agreements entered into in connection with the Agreement.

 (b) Borrower represents and warrants that the Representations and Warranties contained in the Agreement are true and
correct as of the date of this Modification, and that no Event of Default has occurred and is continuing. 
 (c) The
effectiveness of this Modification and each of the documents, instruments and agreements entered into in connection with this Modification, including without limit any replacement promissory note entered into in connection herewith, is conditioned
upon receipt by Bank of this Modification, the Amendment to Note, Addendum and Pledge and Security Agreement of even date herewith and any other documents which Bank may require to carry out the terms hereof, and including, but not limited to, each
of the following: 
 (i) Any Bank expenses incurred through the date of this Modification. 
 4. Integration. This is an integrated Modification and supersedes all prior negotiations and agreements regarding the subject matter hereof. All
amendments hereto must be in writing and signed by the parties. 
 5. Counterparts. This Modification may be executed in one or more
counterparts, each of which shall be deemed an original but all of which taken together shall constitute one and the same Modification, and shall become effective when one or more counterparts have been signed by each of the parties hereto and
delivered to the other party. 
 (end of Modification – signature page follows) 
  

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 IN WITNESS WHEREOF, the parties have agreed to enter into this Fourth Modification of Loan and Security
Agreement as of the date first set forth above. 
  

									
	CYGNE DESIGNS, INC.	 		 	COMERICA BANK
					
	By:	 	/s/ Roy E. Green	 		 	By:	 	/s/ Deborah Jenkins
	Name:	 	Roy E. Green	 		 		 	Deborah Jenkins
	Its:	 	Vice President – Finance	 		 	Its:	 	Vice President – Western Market

  

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	  	Amendment to Note, Addendum and Pledge and Security Agreement

 This Amendment to Note, Addendum and Pledge and Security Agreement (“Amendment”) is made, delivered, and
effective as of March 26, 2008 by and between CYGNE DESIGNS, INC., a Delaware corporation (“Borrower”) and COMERICA BANK (“Bank”). 
 WHEREAS, Borrower and Bank are parties to: (i) that certain Master Revolving Note in the original principal amount of Two Million Dollars ($2,000,000) dated July 30, 2007 (“Note”); (ii) the Addendum
“A” to Master Revolving Note dated July 30, 2007 (“Addendum”); and (iii) the Pledge and Security Agreement dated July 30, 2007 (“Pledge and Security Agreement”); and 
 WHEREAS, Bank and Borrower desire to amend the Note, Addendum and Pledge and Security Agreement as set forth below; 
 NOW, THEREFORE, m consideration of the premises and the mutual promises contained in this Amendment, Borrower and Bank agree as follows: 
  

	1.	The face amount of the Note is now decreased to Two Hundred Thousand and 00/100 Dollars ($200,000.00). 

  

	2.	The definition of “Note Amount” contained in the introductory paragraph of the Addendum is hereby deleted in its entirety and replaced with “Two Hundred Thousand and
00/100 Dollars ($200,000.00) (‘Note Amount’)”. 

  

	3.	In Section A(l) of the Addendum, the dollar amount “Two Million and no/100 Dollars ($2,000,000.00)” is deleted in its entirety and replaced with “Two Hundred Thousand
and 00/100 Dollars ($200,000,00)”. 

  

	4.	The Pledge and Security Agreement is hereby terminated. 

  

	5.	Borrower is responsible for all costs incurred by Bank, including without limit reasonable attorney fees, with regard to the preparation and execution of this Amendment.

  

	6.	The execution of this Amendment shall not be deemed to be a waiver of any Default or Event of Default. 

  

	7.	All the terms used in this Amendment which are defined in the Note shall have the same meaning as used in the Note, unless otherwise defined in this Amendment.

  

	8.	Borrower waives, discharges, and forever releases Bank, Bank’s employees, officers, directors, attorneys, stockholders, and their successors and assigns, from and of any and
all claims, causes of action, allegations or assertions that Borrower has or may have had at any time up through and including the date of this Amendment, against any or all of the foregoing, regardless of whether any such claims, causes of action,
allegations or assertions are known to Borrower or whether any such claims, causes of action, allegations or assertions arose as result of Bank’s actions or omissions in connection with the Note, or any amendments, extensions or modifications
thereto, or Bank’s administration of the debt evidenced by the Note or otherwise. 

  

	9.	This Amendment is not an agreement to any further or other amendment of the Note or the Addendum. 

  

	10.	Borrower expressly acknowledges and agrees that except as expressly amended in this Amendment, the Note and Addendum, as amended, remains in full force and effect and is ratified,
confirmed and restated. 

  

	11.	This Amendment may be executed in one or more counterparts, each of which shall be deemed an original but all of which taken together shall constitute one and the same Amendment,
and shall become effective when one or more counterparts have been signed by each of the parties hereto and delivered to the other party. 

 IN WITNESS WHEREOF, the parties have executed and delivered this Amendment on the date set forth above. 
  

									
	CYGNE DESIGNS, INC.	 		 	COMERICA BANK
					
	By:	 	/s/ Roy E. Green	 		 	By:	 	/s/ Deborah Jenkins
	Name:	 	Roy E. Green	 		 		 	Deborah Jenkins
	Its:	 	Vice President – Finance	 		 	Its:	 	Vice President – Western MarketFifth modification to Loan and Security Agreement with Comerica Bank

 EXHIBIT 10.49 
  

			
	

	  	 FIFTH MODIFICATION TO
 LOAN AND SECURITY AGREEMENT

 This Fifth Modification to Loan and
Security Agreement (this “Modification”) is entered into by and between CYGNE DESIGNS, INC., a Delaware corporation (“Borrowed” and COMERlCA BANK (“Bank”), whose Western Market Headquarters is located at 333 West Santa
Clara Street, San Jose, California, as of this May 5th, 2008. 
 RECITALS 
 This Modification in entered into upon the baste of the following facts and
understandings of the parties, which facts and understandings are acknowledged by the parties to be true end accurate: 
 Bank and Borrower
previously entered into a loan and Security Agreement (Accounts and Inventory) dated July 30,2007, as modified by that certain First Modification to Loan and Security Agreement dated as of August 27, 2007, that certain Second Modification
to Loan and Security Agreement dated as of November 7,2007 (the “Second Amendment”), that certain Third Modification to Loan and Security Agreement dated as of December 20,2007, and that certain Fourth Modification to Loan and
Security Agreement dated as of March 26,2008. The Loan and Security Agreement as so modified, and as such may be otherwise modified, amended, restated, supplemented, revised or replaced from time to time prior to the date hereof shall
collectively be referred to herein as the “Agreement”. 
 NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree at set forth below. 
 AGREEMENT 
 1. Incorporation by Reference. The Recitals and the documents referred to therein are incorporated herein by this reference. Except as otherwise noted, the terms
not defined herein shall have the meaning set forth in the Agreement. 
 2. Modification to the Agreement. Subject to the satisfaction of the
conditions precedent as set forth in Section 3 hereof, the Agreement is hereby modified as set forth below. 
 (a) The definition
of “Borrowing Base” contained in Section 1.6 of the Agreement is hereby deleted in its entirety and replaced with the following: 
 “1.6 “Borrowing Base” shall mean the sum of (1) Eighty percent (80%) of the net amount of Eligible Accounts after deducting therefrom all payments, adjustments and credits applicable thereto;
(2) the amount, if any, of the advances against inventory agreed to be made pursuant to any Inventory Rider, or other rider, amendment or modification to this Agreement, that may now or hereafter be entered Into by Bank and Borrower;
(3) during the period commencing on the effectiveness of that certain Fifth Modification to Loan and Security Agreement, dated as of May 5, 2008, between Borrower and Bank, and ending on June 30,2008 (the “Increase Period”),
the leaser of (I) Thirty percent (30%) of the amount of all letters of credit naming Borrower as the beneficiary and advised by Bank, in form satisfactory to Bank (“Advised LCs”) or (ii) Seven Hundred and Fifty Thousand
Dollars (8750,000); and (4) at all times on and following July 1, 2008 (the “Standard Period”), the leaser of (i) Fifteen percent (15%) of the amount of all Advised LCs or (ii) three Hundred Fifty Thousand Dollars
($350,000). Anything contained in the foregoing to the contrary notwithstanding, Bank may adjust the Borrowing Base percentage(s) and the definition of Eligible Accounts and Eligible Inventory, in each case as provided for under subsection 6.7
hereof.” 
 (b) A new Section 4.9 is hereby added to the Agreement, immediately after the existing Section 4.8 to read in its
entirety as follows; 
 4.8 Borrower further covenants and agrees that payment of the Indebtedness shall be on remittance
basis and that Borrower shall; (a) maintain lockbox and cash collateral deposit accounts with and in the custody and control of Bank (including without limitation, execution of any and all documents to effectuate the set up); (b) instruct all
of Borrower’s account debtors to make payments directly to the lockbox (and all) electronic funds transfer payments to the cash collateral account); and (c) immediately turn over to Bank for deposit to the cash collateral account any
check(s) or other payments) Borrower receives. The lockbox and cash collateral deposit accounts shall be included in the Collateral and shall be subject to Bank’s security interest in and to the Collateral under this Agreement. All wire
transfer of funds, check, or other Item of payment received by Bank in the lockbox and cash collateral deposit accounts shall be immediately applied to conditionally reduce the Indebtedness, but shall not be considered a payment on account unless
such payment is of immediately available federal funds or unless and until such check or other item of payment is honored when presented for payment.” 
 c) Section 6.7 of the Agreement is hereby amended by deleting the word “one (1)” set forth therein, and replacing it with the word “two (2) “. 
 (d) Section 6.9 a. of the Agreement is hereby deleted in its entirety and is replaced with this following: 
 “a. Without the prior written consent of Bank, Borrower will not make any distribution or declare or pay any dividend (in stock or in
cash) to any shareholder or on any of its capital stock, of any class, whether now or hereafter outstanding, or purchase, acquire, repurchase, or redeem or retire any such capital stock.” 

 (e) Section 7p, of the Agreement is hereby deleted in its entirely and is replaced with the
following: 
 “p. a change shall occur in Borrower’s officers or directors without Bank’s prior written
consent;” 
 (f) That certain Amended and Restated Inventory Rider dated November 7, 2007 entered into by Borrower in connection
with the Second Amendment hereby is replaced with that certain Second Amended and Restated Inventory Rider dated as of even date herewith, and each reference to the Inventory Rider contained in the Agreement or any other document, instruments or
agreement entered into in connection therewith is conformed accordingly. 
 3. Legal Effect. 
 (a) Except as specifically set forth in this Modification, all of the terms and conditions of the Agreement remain in full force and effect. Except as;
expressly set forth herein, the execution, delivery, and performance of this Modification shall not operate as a waiver of, or as an amendment of, any right, power, or remedy of Bank under the Agreement, as in effect prior to the date hereof.
Borrower ratifies and reaffirms the continuing effectiveness of all promissory notes, guaranties, security agreements, mortgages, deeds of trust, environmental agreements, and all other instruments, documents and agreements entered into in
connection with the Agreement, 
 (b) Borrower represents and warrants that the Representations and Warranties contained in the Agreement are
true and correct as of the date of this Modification, and that no Event of Default has occurred and is continuing. 
 (c) The effectiveness
of this Modification and each of the documents, instruments and agreements entered into in connection with this Modification, including without limit any replacement promissory note entered into in connection herewith, is conditioned upon receipt by
Bank of this Modification and any other documents which Bank may require to carry out the terms hereof. 
 (d) In consideration for
Bank’s willingness to enter into this Modification, Borrower shall pay to Bank (i) a non-refundable commitment fee in the sum Fifteen Thousand Dollars ($15,000) and (ii) a legal fee in the sum of Five Hundred Dollars ($500). Each
aforementioned fee shall be deemed earned by Bank as of the date of this Modification and shall be payable by Borrower concurrently with Borrower’s execution of, and payment of each fee is a condition precedent to the effectiveness of, this
Modification. 
 4. Miscellaneous Provisions. 
 (a) This is an Integrated Modification and supersedes all prior negotiations and agreements regarding the subject matter hereof. All amendments hereto must be in writing and signed by the parties. 
 (b) This Modification may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute
one instrument 
 IN WITNESS WHEREOF, the parties have agreed as of the date first set forth above. 
  

									
	COMERICABANK	 		 	 CYGNE DESIGNS, INC.,
 a Delaware
corporation

					
	By:	 	 

	 		 	By:	 	 

	Name:	 	Deborah Jenkins	 		 	Name:	 	

	Title:	 	Vice President – Western Market	 		 	Title:	 	

  

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