Document:

Exhibit
10.40

 

REAFFIRMATION OF
TRADEMARK COLLATERAL SECURITY AGREEMENT

 

May 21,
2010

 

 

HSBC Bank USA, National
Association

452 Fifth Avenue

New York, New York 10018

 

Ladies and Gentlemen:

 

The undersigned executed
and delivered to Agent (as hereafter defined) a Trademark Collateral Security
Agreement dated as of June 20, 2005 (as amended, restated, supplemented, or
otherwise modified from time to time, the “Trademark Collateral Security
Agreement”) pursuant to which the undersigned, Rafaella Apparel Group, Inc. (“Borrower”),
a Delaware corporation, granted to Agent for its benefit and the ratable
benefit of Lenders a security interest in certain Collateral (the “Grant”)
including, without limitation, certain Trademarks.  The Grant was made in order to secure the
Obligations under that certain Financing Agreement dated as of June 20, 2005
(as amended, restated, modified or supplemented from time to time, the “Financing
Agreement”) among Borrower, Verrazano, Inc. (“Verrazano”), each other
subsidiary of Borrower which becomes a guarantor of the Obligations thereunder
from time to time, the various financial institutions which are a party thereto
(each a “Lender” and collectively, “Lenders”) and HSBC Bank USA, National
Association (“HSBC”), as agent for Lenders (HSBC in such capacity, “Agent”).  All capitalized terms not otherwise defined
herein shall have the meanings set forth in the Trademark Collateral Security
Agreement.

 

The undersigned hereby:

 

(a)                                  acknowledges
that the Financing Agreement is being amended and restated pursuant to the
terms of that certain Amended and Restated Financing Agreement, dated as of May
21, 2010 (the “Restated Financing Agreement”), among Borrower, Verrazano,
Lenders, the Term Lender (as defined in the Restated Financing Agreement),
Agent and other parties thereto and that this Reaffirmation of Trademark
Collateral Security Agreement is being given to induce the Lenders, the Term
Lender and Agent to enter into the Restated Financing Agreement;

 

(b)                                 ratifies
and confirms that (i) all of the terms and conditions, representations and
covenants contained in the Trademark Collateral Security Agreement shall remain
in full force and effect after giving effect to the execution and effectiveness
of the Restated Financing Agreement; provided, however, that Schedule
A to the Trademark Collateral Security Agreement is hereby amended and
restated as attached hereto; and (ii) the Grant is for the benefit of the
Agent, Lenders and the Term Lender to secure each Loan Party’s Obligations
under the Financing Agreement, the Restated Financing Agreement and the Other
Documents;

 

(c)                                  represents
and warrants that no offsets, counterclaims or defenses exist as of the date
hereof with respect to the undersigned’s obligations under the Trademark
Collateral Security Agreement; and

 

 

(d)                                 ratifies and confirms
that references to the phrase “Financing Agreement” in the Trademark Collateral
Security Agreement shall mean the Restated Financing Agreement, and that the
Obligations under the Financing Agreement, after giving effect to the Restated
Financing Agreement, remain secured by the security interests and pledges
granted by the undersigned under and pursuant to the terms of the Trademark
Collateral Security Agreement, as reaffirmed hereby.

 

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  RAFAELLA APPAREL GROUP,
  INC., as 

  Borrower

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Lance D. Arneson

  
	
   

  	
   

  	
  Name: Lance D. Arneson

  
	
   

  	
   

  	
  Its: Chief Financial
  Officer

  

 

 

ACKNOWLEDGED AND AGREED:

 

 

	
  HSBC BANK USA, NATIONAL
  ASSOCIATION, as Agent

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Lisa H. Augustus

  	
   

  
	
   

  	
  Name: Lisa H. Augustus

  	
   

  
	
   

  	
  Its: Vice President

  	
   

  

 

Signature Page to
Reaffirmation of Trademark Collateral Security AgreementExhibit
10.41

 

REAFFIRMATION OF
PLEDGE AGREEMENT

 

May 21,
2010

 

HSBC Bank USA, National
Association

452 Fifth Avenue

New York, New York 10018

 

Ladies and Gentlemen:

 

The undersigned executed
and delivered to Agent (as hereafter defined) a Pledge Agreement dated as of June
20, 2005 (as amended, restated, supplemented, or otherwise modified from time
to time, the “Pledge Agreement”) pursuant to which the undersigned, Rafaella
Apparel Group, Inc. (“Pledgor”), a Delaware corporation pledged, assigned,
hypothecated, transferred and granted (the “Pledge”) to Agent for its benefit
and the ratable benefit of Lenders certain Collateral including, without
limitation, certain Pledged Stock.  The
Pledge was made in order to secure certain Indebtedness including, without
limitation, all Obligations of Pledgor to Agent under that certain Financing Agreement
dated as of June 20, 2005 (as amended, restated, modified or supplemented from
time to time, the “Financing Agreement”) among Pledgor, Verrazano, Inc. (“Verrazano”),
each other subsidiary of Pledgor which becomes a guarantor of the Obligations
thereunder from time to time, the various financial institutions which are a
party thereto (each a “Lender” and collectively, “Lenders”) and HSBC Bank USA,
National Association (“HSBC”), as agent for Lenders (HSBC in such capacity, “Agent”).  All capitalized terms not otherwise defined
herein shall have the meanings set forth in the Pledge Agreement.

 

The undersigned hereby:

 

(a)           acknowledges that
the Financing Agreement is being amended and restated pursuant to the terms of
that certain Amended and Restated Financing Agreement, dated as of May 21, 2010
(the “Restated Financing Agreement”) among Borrower, Verrazano, Lenders, the
Term Lender (as defined in the Restated Financing Agreement), Agent and other
parties thereto and that this Reaffirmation of Pledge Agreement is being given
to induce the Lenders, the Term Lender and Agent to enter into the Restated Financing
Agreement;

 

(b)           ratifies and
confirms that (i) all of the terms and conditions, representations and
covenants contained in the Pledge Agreement shall remain in full force and
effect after giving effect to the execution and effectiveness of the Restated Financing
Agreement; provided, however, that (x) Schedule A to the
Pledge Agreement is hereby amended and restated as attached hereto, (y) Section
4(l) of the Pledge Agreement is hereby amended by deleting the words “one
hundred percent (100%)” and substituting the words “the indicated percentage”
therefor, and (z) the notice address for the Pledgor (and for copies) set forth
in Section 15 of the Pledge Agreement, shall be revised to reflect that notices
(including copies of such notices) shall be sent to the address (including the
address for all copies) for the Pledgor set forth in Section 16.6(C) in the
Restated Financing Agreement; and (ii) the Pledge is for the benefit of the
Agent,

 

 

Lenders and the Term
Lender to secure Pledgor’s and each Loan Party’s Obligations under the
Financing Agreement, the Restated Financing Agreement and the Other Documents.

 

(c)           represents and
warrants that no offsets, counterclaims or defenses exist as of the date hereof
with respect to the undersigned’s obligations under the Pledge Agreement; and

 

(d)           ratifies
and confirms that references to the phrase “Financing Agreement” in the Pledge
Agreement shall mean the Restated Financing Agreement, and that the Obligations
under the Financing Agreement, after giving effect to the Restated Financing
Agreement, remain secured by the security interests and pledges granted by the
undersigned under and pursuant to the terms of the Pledge Agreement, as
reaffirmed hereby.

 

 

	
   

  	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  RAFAELLA APPAREL GROUP,
  INC., as Pledgor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Lance D. Arneson

  
	
   

  	
   

  	
   

  	
  Name: Lance D. Arneson

  
	
   

  	
   

  	
   

  	
  Its: Chief Financial
  Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ACKNOWLEDGED AND
  AGREED:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  HSBC BANK USA, NATIONAL
  ASSOCIATION, as Agent

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Lisa H. Augustus

  	
   

  	
   

  
	
   

  	
  Name: Lisa H. Augustus

  	
   

  	
   

  
	
   

  	
  Its: Vice President

  	
   

  	
   

  

 

Signature Page to
Reaffirmation of Stock Pledge Agreementexhibit10-1_stipulation.htm

Exhibit 10.1

FEDERAL DEPOSIT INSURANCE CORPORATION

 

WASHINGTON, D.C.

 

CALIFORNIA DEPARTMENT OF FINANCIAL INSTITUTIONS

 

SAN FRANCISCO, CALIFORNIA

 

 

	 	 	 	 
	 	 )	 	 
	
In the Matter of 

	
)

	  	STIPULATION TO THE
	  	
)

	  	
      ISSUANCE OF A

	
SONOMA VALLEY BANK

	
)

	  	    CONSENT ORDER 
	
SONOMA, CALIFORNIA

	
)

	  	
 

	  	
)

	  	FDIC-10-249b
	  	
)

	  	  
	
(INSURED STATE NONMEMBER BANK)

	
)

	  	  

 

 

 

Subject to the acceptance of this Stipulation to the Issuance of a Consent Order ("Stipulation") by the Federal Deposit Insurance Corporation ("FDIC") and the California Department of Financial Institutions ("CDFI"), it is hereby stipulated and agreed by and between a representative of the Legal Division of FDIC, a representative of the CDFI, and Sonoma Valley Bank, Sonoma, California ("Bank"), as follows:

1. The Bank has been advised of its right to receive a Notice of Charges and of Hearing ("Notice") detailing the unsafe or unsound banking practices and violations of lawand/or regulations alleged to have been committed by the Bank and of its right to a public hearing on the alleged charges under section 8(b)(1) of the Federal Deposit Insurance Act"Act"), 12 U.S.C. § 1818(b)(1), and Section 1913 of the California Financial Code ("CFC"), and has waived those rights.

2. The Bank, solely for the purpose of this proceeding and without admitting or denying any of the alleged charges of unsafe or unsound banking practices and any violations of law and/or regulations, hereby consents and agrees to the issuance of a Consent Order ("Order")

 

  

  

-2-  

 

by the FDIC and the CDFI. The Bank further stipulates and agrees that such Order will be deemed to be an order which has become final under the Act and the CFC, and that said Order shall become effective upon its issuance by the FDIC and the CDFI, and fully enforceable by the FDIC and the CDFI pursuant to the provisions of the Act and the CFC.

3. In the event the FDIC and the CDFI accept the Stipulation and issue the Order, it is agreed that no action to enforce said Order in the United States District Court will be taken by the FDIC, and no action to enforce said Order in State Superior Court will be taken by the CDFI, unless the Bank or any institution-affiliated party, as such term is defined in section 3(u) of the Act, 12 U.S.C. § 1813(u), has violated or is about to violate any provision of the Order.

4. The Bank hereby waives:

 

(a) The receipt of a Notice;

 

(b) All defenses in this proceeding;

 

(c) A public hearing for the purpose of taking evidence on such alleged charges;

 

(d) The filing of Proposed Findings of Fact and Conclusions of Law;

 

(e) A recommended decision of an Administrative Law Judge;

 

(f) Exceptions and briefs with respect to such recommended decision; and

 

(g) The right to appeal.

//

//

//

//

//

  

  

-3-  

 

 

	 	 	 
	Dated: May 17, 2010	 	 
	 	 	 
	
FEDERAL DEPOSIT INSURANCE

CORPORATION, LEGAL DIVISION

BY:

	  	
SONOMA VALLEY BANK

SONOMA, CALIFORNIA

BY:

	
 

/s/Regina A. Sandler

	  	
 

/s/Mel Switzer, Jr.

	
Regina A. Sandler

Senior Regional Attorney

	  	
Mel Switzer, Jr.

	
 

CALIFORNIA DEPARTMENT OF

	  	
 

/s/Robert B. Hitchcock

	
FINANCIAL INSTITUTIONS

BY:

	  	
Robert B. Hitchcock

	
 

/s/James Patten

	  	
 

/s/Bob Nicholas

	
Senior Counsel

	  	
Bob Nicholas

	  	  	
 

/s/Steve Page

	  	  	
Steve Page

	  	  	
 

/s/Suzanne Brangham

	  	  	
Suzanne Brangham

	  	  	
 

/s/Valerie Pistole

	  	  	
Valerie Pistole

	  	  	
 

/s/Sean Cutting

	  	  	
Sean Cutting

	  	  	
 

/s/Angelo Sangiacomo

	  	  	
Angelo Sangiacomo

	  	  	
 

/s/Dale T. Downing

	  	  	
Dale T. Downing

	  	  	
 

Comprising the Board of Directors of

Sonoma Valley Bank, Sonoma, California

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