Document:

Second Amendment to the Distribution Agreement, dated April 27, 2006

 Exhibit 10.23 
 SECOND AMENDMENT TO DISTRIBUTION AGREEMENT 
 THIS SECOND AMENDMENT TO DISTRIBUTION AGREEMENT (this
“Amendment”), dated April 27, 2006, effective July 31, 2005, is made by and between Diversified Apparel Resources, LLC f/k/a Commerce Clothing Company, LLC (“Diversified”), a California limited liability company with
its principal executive offices at 5804 East Slauson Avenue, Commerce, California 90040 and Cygne Designs, Inc., a Delaware corporation (“Cygne”), having its principal executive office at 11 West 42nd Street, New York, New York 10036. 
 RECITALS 
 A. Diversified and Cygne previously entered into a Distribution Agreement dated July 31, 2005, as amended on
December 9, 2005 (the “First Amendment”) (collectively, the “Agreement”) providing for the provision by Diversified of certain distribution services for Cygne under the terms and conditions set forth in the Agreement.

 B. The parties desire to amend certain provisions of the Agreement and incorporate this Amendment therein. 
 C. Except as otherwise set forth herein, any terms used but not defined herein shall have the meanings assigned to them in the Agreement. 
 NOW, THEREFORE, and in consideration of the mutual promises, covenants, representations and good and valuable consideration set forth herein, the
adequacy of which is hereby acknowledged, the parties hereto agree as follows: 
 1. Amendment. Diversified and Cygne hereby agree that
during the Amendment Term (as defined in the First Amendment), the Agreement shall be amended as follows: 
 (a) Section 6(g) is hereby
deleted in its entirety and replaced with the following: 
 (g) Inventory. On the last day of each month during the
Amendment Term, Diversified shall invoice Cygne for all inventory that Diversified has on hand at the end of the month and which Cygne intends to ship to its customers in the subsequent month (the “Inventory”). Title to the Inventory shall
transfer to Cygne upon Diversified’s invoicing of such Inventory. 
 2. Except as expressly amended by this Amendment, the Agreement
shall remain in full force and effect in accordance with its terms. 

 3. This Amendment may be executed in two or more counterparts, each of which will be deemed an original,
but all of which together will constitute one and the same instrument. For purposes hereof, a facsimile copy of this Amendment, including the signature pages hereto, will be deemed to be an original. Notwithstanding the foregoing, the parties will
deliver original execution copies of this Amendment to one another as soon as practicable following execution thereof. 
 IN WITNESS WHEREOF,
the parties have executed this Amendment as of the date first set forth above. 
  

			
	CYGNE DESIGNS, INC.
		
	By:	 	 /s/ Bernard Manuel

	Name:	 	Bernard Manuel
	Title:	 	President
	
	DIVERSIFIED APPAREL RESOURCES, LLC
		
	By:	 	 /s/ Hubert Guez

	Name:	 	Hubert Guez
	Title:	 	Chief Executive Officer

  

 2Letter Agreement, dated as of April 24, 2006

 Exhibit 10.24 
 April 24, 2006 
 Mr. Paul Guez 
 Mr. Hubert Guez 
 Azteca Production International, Inc. 
 5804 E. Slauson Avenue 
 Commerce, CA 90048 
 Gentlemen: 
 Reference is made to that certain Promissory Note dated July 17, 2003 (the “Note”) issued by Innovo
Azteca Apparel, Inc., a California corporation (“IAA”) in favor of Azteca Production International, Inc. (“Azteca”). Reference is also made to that certain Asset Purchase Agreement dated March 31, 2006, by and among Cygne
Designs, Inc. (“Cygne”), IAA and Innovo Group, Inc., a Delaware corporation (“Innovo”), whereby Cygne has agreed to purchase certain assets and properties and assume certain liabilities (including outstanding obligations under
the Note and certain obligations of IAA and Innovo under the Buyer Earn Out provision contained in Section 8.11 of that certain Asset Purchase Agreement dated July 17, 2003, by and among IAA, Innovo, Azteca, Sweet Sportswear, LLC, Hubert
Guez and Paul Guez (the “Earnout”)), used by IAA in the operation of the private label portion of IAA’s business (the “Transaction”). 
 This letter sets forth our understanding regarding certain distributions to be made with respect to Cygne’s assumption of liabilities under the Note and the Earnout pursuant to the Transaction. Simultaneously
with the closing of the Transaction, the Note will be converted into 2,000,000 shares of Cygne common stock (the “Shares”), which Shares shall have piggy-back registration rights on any future S-3 registration statements filed by Cygne.
The Shares shall be issued as follows: 1,000,000 shares issued directly to Paul Guez and 1,000,000 shares issued directly to Hubert Guez; provided, that Paul Guez and Hubert Guez agree not to offer to sell, contract to sell, or otherwise sell,
dispose of, loan, pledge or grant any rights with respect to any such Shares until the close of trading on April 23, 2007 (the “Lock-Up Period”); further provided, that 250,000 of the Shares issued to Paul Guez and 250,000 of the
Shares issued to Hubert Guez shall be immediately be placed in an escrow account with each party’s designated escrow agent (the “Escrow Shares”) until expiration of the Lock-Up Period; and, further provided that in the event the
Shares are traded on NASDAQ (or any other stock exchange, market or trading facility on which the Shares are traded) at an average price above $5.00 per Share during the one (1) month period immediately preceding the expiration of the Lock-Up
Period, then each party shall instruct their respective escrow agent to return the Escrow Shares to Cygne as treasury stock. Any purported transfer of such Shares other than in accordance with this letter agreement shall be null and void.

 Upon assumption of the Earnout by Cygne, the 2.5% Earnout derived from Cygne’s denim sales to American Eagle Outfitters, Inc. will be
divided equally between Paul Guez and Hubert Guez (i.e., 1.25% shall be distributed to Paul Guez and 1.25% shall be distributed to Hubert Guez). Each such Earnout payment shall be made on a quarterly basis and shall be accompanied by a report
detailing the Earnout calculations. 

 If the foregoing meets with your approval, please sign in the space below and deliver an executed copy of
this letter to us. 
  

			
	CYGNE DESIGNS, INC.
		
	By:	 	 /s/ Bernard Manuel

		 	Bernard Manuel, President

 Acknowledged and agreed to as of 
 the date first set forth above. 
  

			
	AZTECA PRODUCTION INTERNATIONAL, INC.
		
	By:	 	 /s/ Hubert Guez

		 	Hubert Guez, President
	
	 /s/ Hubert Guez

	Hubert Guez
	
	 /s/ Paul Guez

	Paul Guez
	
	SWEET SPORTSWEAR, LLC
		
	By:	 	 /s/ Hubert Guez

		 	Hubert Guez, Manager

  

 2EXHIBIT 10.1

 Exhibit 10.1 
 THIS CONVERTIBLE PROMISSORY NOTE AND THE SECURITIES THAT MAY BE ACQUIRED PURSUANT TO THIS CONVERTIBLE PROMISSORY NOTE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER THE
SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. THIS CONVERTIBLE PROMISSORY NOTE AND SUCH OTHER SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF A REGISTRATION STATEMENT AND LISTING
APPLICATION IN EFFECT WITH RESPECT TO THIS CONVERTIBLE PROMISSORY NOTE OR SUCH OTHER SECURITIES UNDER THE SECURITIES ACT AND ANY OTHER APPLICABLE SECURITIES LAW, OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION AND LISTING
ARE NOT REQUIRED PURSUANT TO A VALID EXEMPTION THEREFROM UNDER THE SECURITIES ACT AND THE APPLICABLE SECURITIES LAW OF ANY STATE OR OTHER JURISDICTION. 
 CONVERTIBLE PROMISSORY NOTE 
  

			
	US $50,000	 	As of June 11, 2003

 FOR VALUE RECEIVED, E-centives, Inc., a Delaware corporation (the “Company”),
having an address of 6901 Rockledge Drive, 6th Floor, Bethseda, Maryland 20817, hereby promises to pay to the order
of LGT Bank in Liechtenstein AG (the “Holder”), at the offices of Holder at Herrengasse 12, FL-9490 Vaduz, Liechtenstein, or such other place as may be designated by Holder to the Company in writing, the aggregate principal
amount of Fifty Thousand U.S. Dollars ($50,000) together with Premium and accrued unpaid interest on the unpaid principal amount hereof, upon the terms and conditions hereinafter set forth. 
 1. Payment Terms. The Company promises to pay to Holder the balance of Principal, together with Premium and accrued unpaid interest, on September 30,
2006, unless this Note is earlier prepaid as herein provided or earlier converted into Common Stock (as hereinafter defined) of the Company pursuant to Section 3 hereof. All payments hereunder shall be made in lawful money of the
United States of America. Payment shall be credited first to the accrued interest then due and payable and the remainder to Principal. 
 2. Interest.
Interest on the outstanding portion of Principal of this Note shall accrue at a rate of eight percent (8%) per annum. All computations of interest shall be made on the basis of a 365-day year for actual days elapsed. Such interest shall
be paid in arrears on the last business day of each successive one year anniversary of the date of this Note. 
 3. Conversion of this Note.

 (a) Automatic Conversion. This Note shall automatically be converted into shares of the Company’s common stock (“Common
Stock”) at the Note Conversion Rate (hereinafter defined) as hereinafter provided on the date when the average trading price on the SWX Swiss Exchange of the Common Stock for 30 consecutive trading days has been equal to or greater than CHF
2.75 (“Conversion Date”). The conversion price will be 2 CHF, (as converted to U. S. dollars pursuant to a then recent exchange rate, as calculated by the Company) (“Note Conversion Rate”). 
  

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 (b) Note Conversion Rate; Conversion Price. The number of shares of Common Stock to which Holder
shall be entitled upon such conversion specified in Section 3(a) above shall be equal to the product of: the Principal amount outstanding under this Note on the Conversion Date, divided by the average trading price on the SWX
Swiss Exchange of the Common Stock for the 5 previous trading days, but in no event higher than CHF 2, (as converted to U. S. dollars pursuant to a then recent exchange rate, as calculated by the Company) (“Note Conversion Rate”).
The conversion price payable by Holder upon any such conversion hereunder shall be zero (0). 
 (c) Mechanics of Automatic Conversion.
Upon the occurrence of the event specified in Section 3(a) above, this Note shall be converted into Common Stock automatically without any further action by Holder; provided, however, that the Company shall not be obligated to issue a
certificate or certificates evidencing the shares of Common Stock issuable upon such conversion of this Note (“Conversion Shares”) unless the original of this Note is delivered to the Company, or Holder notifies the Company in writing that
such original of this Note has been lost, stolen or destroyed, and Holder executes an agreement satisfactory to the Company to, among other things, indemnify the Company from any loss incurred by the Company in connection with such original of this
Note. Upon surrender by Holder to the Company of the original of this Note at the office of the Company, there shall be issued and delivered to Holder promptly at such office and in Holder’s name as shown on the original of this Note, a
certificate or certificates for the applicable number of Conversion Shares on the date on which such automatic conversion is deemed to have occurred. 
 (d) Conversion Calculations: No Fractional Shares. Conversion calculations pursuant to this Section 3 shall be rounded to the nearest whole share of Common Stock, and no fractional shares shall be
issuable by the Company upon conversion of this Note. Conversion of this Note shall be deemed payment in full of this Note and this Note shall thereupon be cancelled. 
 4. Subordination. The indebtedness evidenced hereby is subordinate in right of payment to all existing and future bank indebtedness, including lease and equipment finance obligations, as well as all other
indebtedness designated as superior to that contemplated herein. The indebtedness represented hereby is senior in right of payment to all classes and series of the Company’s capital stock. The indebtedness represented hereby is pari passu with
any and all convertible debt securities issued by the Company. 
 5. Redemption. This Note may be redeemed by the Company at any time by payment of
the entire Principal and interest outstanding under this Note, plus the applicable Final Payment Amount (hereinafter defined), in cash to Holder. The Company must provide notice to Holder not less than thirty (30) days prior to effecting
such redemption. During the period from providing of such notice to Holder and the Company effecting the redemption, the Company may cancel such redemption by providing notice of such cancellation to Holder. 
 (a) “Final Payment Amount” means an amount equal to: (i) during the first full year of this Note, 10% of the unpaid Principal
amount under this Note, (ii) during the second full year of this Note, 20% of the unpaid Principal amount under this Note or (iii) from and after the first business day of the third full year of this Note, 30% of the unpaid
Principal amount under this Note. 
 6. Representations and Warranties of the Company. The Company represents and warrants to Holder as follows:

 (a) The execution and delivery by the Company of this Note (i) are within the Company’s corporate power and authority, and
(ii) have been duly authorized by all necessary corporate action. 
  

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 (b) This Note is a legally binding obligation of the Company, enforceable against the Company in
accordance with the terms hereof, except to the extent that (i) such enforceability is limited by bankruptcy, insolvency, reorganization, moratorium or other laws relating to or affecting generally the enforcement of creditors’ rights and
(ii) the availability of the remedy of specific performance or in injunctive or other equitable relief is subject to the discretion of the court before which any proceeding therefore may be brought. 
 7. Representations, Warranties and Covenants of Holder. Holder represents and warrants to the Company, and agrees, as follows: 
 (a) This Note and any Conversion Shares issuable upon conversion of this Note are being acquired by Holder for its own account for investment and not with
a view to, or for sale in connection with, any distribution thereof. 
 (b) Holder is an “accredited investor” within the meaning
of Rule 501 under the Securities Act. 
 (c) Holder has sufficient knowledge and experience in financial and business matters and is capable
of evaluating the risks and merits of Holder’s investment in the Company; Holder has been provided all necessary and appropriate information about the Company to make an informed investment decision with respect to this Note; has been provided
the opportunity to make all necessary and appropriate inquiries of the Company regarding Company’s business and associated risks, and Company has complied with all such requests; and Holder is able financially to bear the risk of losing
Holder’s full investment in this Note. 
 (d) Holder understands that this Note and any Conversion Shares have not been registered under
the Securities Act or registered or qualified under any the securities laws of any state or other jurisdiction, are “restricted securities,” and cannot be resold or otherwise transferred unless they are registered under the Securities Act,
and registered or qualified under any other applicable securities laws, or an exemption from such registration and qualification is available. Prior to any proposed transfer of this Note or any Conversion Shares, Holder shall, among other things,
give written notice to the Company of its intention to effect such transfer, identifying the transferee and describing the manner of the proposed transfer and, if requested by the Company, accompanied by (i) investment representations by the
transferee similar to those made by Holder in this Section 7 and (ii) an opinion of counsel satisfactory to the Company to the effect that the proposed transfer may be effected without registration under the Securities Act and
without registration or qualification under applicable state or other securities laws. Each certificate for any Conversion Shares shall bear a legend identical to that set forth on Page 1 of this Note. 
 8. Use of Proceeds. The proceeds received by the Company from the sale of this Note shall be used by the Company for working capital or other general corporate
purposes. 
 9. No Waiver in Certain Circumstances. No course of dealing of Holder nor any failure or delay by Holder to exercise any right, power or
privilege under this Note shall operate as a waiver hereunder and any single or partial exercise of any such right, power or privilege shall not preclude any later exercise thereof or any exercise of any other right, power or privilege hereunder.

 10. Certain Waivers by the Company. Except as expressly provided otherwise in this Note, the Company and every endorser or guarantor, if any, of
this Note waive presentment, demand, notice, protest and all other demands and notices in connection with the delivery, acceptance, performance, default or enforcement of this Note, and assent to any extension or postponement of the time of payment
or any other indulgence, to any substitution, exchange or release of collateral available to Holder, if any, and to the addition or release of any other party or person primarily or secondarily liable. 
  

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 11. No Unlawful Interest. Notwithstanding anything herein to the contrary, payment of any interest or other amount
hereunder shall not be required if such payment would be unlawful. In any such event, this Note shall automatically be deemed amended so that interest charges and all other payments required hereunder, individually and in the aggregate, shall be
equal to but not greater than the maximum permitted by law. 
 12. Security Interest. The Company’s obligations under this Note are secured by a
grant of a security interest to Holder in all tangible and intangible assets of Company for which Company retains sole title as of the date of this Note (the “Collateral”). The Collateral includes all equipment, fixtures, intellectual
property (including patents), cash and cash equivalents, software, personal property, and receivables. Notwithstanding anything to the contrary herein all (a) leases and other contracts, (b) licenses (including to software and intellectual
property), (c) the Company’s rights under such leases, other contracts and licenses and (d) any property that is the subject of such leases, other contracts and licenses, shall not constitute Collateral pursuant to this Note. In the
case Company fails to materially perform its repayment obligations under this Note, and such default is continuing (“Default”), the Holder may exercise, without further notice, all rights and remedies under this Note or are otherwise
available at law. In the case of such Default, the Holder will give the Company not less than 30 business days prior written notice of its intended disposition of the collateral, provided, however, if Company cures such Default prior to expiration
of such notice period, Default will be not deemed to have occurred and Holder shall have no rights to the Collateral. For the purpose of enforcing any and all rights and remedies under this Agreement, the Holder may (i) require the Company to,
upon Holder’s reasonable request, assemble all or any part of the Collateral as directed by the Holder and make it available at the Company’s headquarters, (ii) to the extent permitted by applicable law, enter, without breach of the
peace, any premise where any such Collateral is or may be located and, reasonably seize and remove such Collateral from such premises, (iii) direct the Company to reasonably provide relevant information from the Company’s books and records
relating to the Collateral, and (iv) prior to the disposition of any of the Collateral, store or transfer the Collateral, process, repair or recondition such Collateral or otherwise prepare it for disposition in any manner and to the extent the
Holder deems reasonably appropriate. Notwithstanding anything to the contrary herein, the Security Interest granted hereby is expressly limited the amount of any unpaid Principal, Premium and accrued unpaid interest under this Note and Holder shall
exercise the foregoing rights in such a fashion so as to minimize disruption to Company and its business operations and only to the extent necessary to recover such unpaid Principal, Premium and accrued unpaid interest. The Holder and the Company
shall work in good faith to effectuate the intent of the previous sentence. The security interest provided hereby shall expire upon the payment in full of all Principal, Premium and accrued unpaid interest or the occurrence of the Conversion Date.
Holder will execute any documents or instruments the Company may reasonably request to evidence such expiration. 
 13. Miscellaneous. No
modification, rescission, waiver, forbearance, release or amendment of any provision of this Note shall be made, except by a written agreement duly executed by the Company and Holder. This Note may not be assigned by Holder without the prior written
consent of the Company. The Company and Holder each hereby submits to personal jurisdiction in the State of Maryland, consents to the jurisdiction of any competent state or federal district court sitting in the City or County of Montgomery County,
Maryland, and waives any and all rights to raise lack of personal jurisdiction as a defense in any action, suit or proceeding in connection with this Note or any related matter. Service of Process may be effectuated by Company by providing such
Service to Holder by Certified Mail, and in the case such Service is undeliverable by providing such Service to the Maryland Department of Assessments and Taxation. This Note shall be governed by, and construed and interpreted in accordance with,
the laws of the State of Maryland, without reference to conflicts of law provisions of such state. 
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left blank] 
  

 4 

 IN WITNESS WHEREOF, the undersigned have caused this Convertible Promissory Note to be executed and
delivered by a duly authorized officer as of the date first above written. 
  

			
	E-centives, Inc.
		
	 By:
	 	  

	 Name:
	 	Kamran Amjadi
	 Title:
	 	CEO

  

			
	 ACCEPTED AND AGREED:

	
	LGT Bank in Liechtenstein AG
		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	

  

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