Document:

Consent and Third Amendment to Loan, Guaranty and Security Agreement

 Exhibit 10.32 

CONSENT AND THIRD AMENDMENT TO LOAN, GUARANTY AND SECURITY 

AGREEMENT 

CONSENT AND THIRD AMENDMENT TO LOAN, GUARANTY AND SECURITY AGREEMENT (this “Agreement”), dated as of June 30, 2010,
among GORDMANS, INC., a Delaware corporation (“Borrower”), each of the other Credit Parties signatory hereto, each of the lenders that is a signatory to this Agreement (together with its successors and permitted assigns,
individually, “Lender” and, collectively, “Lenders”), and WELLS FARGO RETAIL FINANCE, LLC, a Delaware limited liability company, as the arranger and administrative agent for the Lenders (in such capacity, together with its
successors, if any, “Agent” and together with the Lenders, collectively, the “Lender Group”). 

BACKGROUND 

WHEREAS, Borrower, the other Credit Parties signatory thereto, and the Lender Group are parties to that certain Loan, Guaranty and
Security Agreement, dated as of February 20, 2009, as amended by that certain First Amendment to Loan, Guaranty and Security Agreement dated as of March 16, 2009 and that certain Second Amendment to Loan, Guaranty and Security Agreement
dated as of December 23, 2009 (as further amended, restated, supplemented, or modified from time to time, the “Loan Agreement”); 

WHEREAS, the Credit Parties have requested that the Lender Group grant certain consents and amendments with respect to the Loan
Agreement; and 
 WHEREAS, the Lender Group is willing to enter into this Agreement upon the terms and conditions set
forth below. 
 NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, and upon the terms and conditions set forth herein, the parties hereby agree as follows: 
 AGREEMENT

 Section 1. Definitions. Capitalized terms used herein and not otherwise defined herein shall have the
meanings ascribed thereto in the Loan Agreement. 
 Section 2. Consent. Notwithstanding anything contained in
Section 7.8 or Section 7.11 of the Loan Agreement to the contrary, Agent and the undersigned Lenders hereby agree that Borrower may (i) make a one-time distribution to Parent and that Parent may make a one-time
distribution to Ultimate Parent so that Ultimate Parent may pay a cash dividend to its shareholders in an amount not to exceed $20,000,000 (the “Sponsor Dividend”); (ii) pay to Sun Capital Management Partners V, LLC the advisory fee
owing pursuant to the Management Agreement in an amount not to exceed $200,000 (the “Advisory Fee”); and (iii) make one time bonus payments to officers of any Credit Party at the time the Sponsor Dividend is paid in an amount not to
exceed $300,000 in the aggregate for all such Bonus Payments (the “Bonus Payments” and together with the Sponsor Dividend and the Advisory Fee, the “Permitted Payments”); provided, that (A) both before and after giving pro
forma effect to the payment of the Permitted Payments no Default or Event of Default exists, (B) during the 30 days 

 
immediately prior to the payment of the Permitted Payments and after giving pro forma effect to the payment of the Permitted Payments the Borrower has minimum Excess Availability of at least
$20,000,000, (C) Agent shall have received forecasts, in form and substance satisfactory to Agent, showing that the Borrower’s projected Availability exceeds $20,000,000 for the 180 days immediately following the payment of the Permitted
Payments, and (D) Borrower shall deliver to Agent a duly executed and completed Solvency Certificate dated as of the date the Permitted Payments are paid from its Chief Financial Officer in the form attached hereto as Annex A. In addition to
the preceding sentence and notwithstanding anything contained in Section 7.8 or Section 7.11 of the Loan Agreement to the contrary, Agent and the undersigned Lenders hereby agree that Borrower may make bonus payments to
officers of any Credit Party in each of the following calendar years in amounts of up to the amounts set forth opposite such calendar year, in each case, so long as at the time of any such bonus payment, an initial public offering of Ultimate Parent
has not occurred: 
  

				
	 Calendar Year
	  	Bonus Payment Amount
	 2010
	  	$	180,000
	 2011
	  	$	210,000
	 2012
	  	$	210,000
	 2013
	  	$	210,000

 Section 3.
Amendment to Loan Agreement. Section 2.12(a) of the Loan Agreement is hereby amended by deleting the reference to “0.75%” and replacing it with a reference to “0.50%”. 

Section 4. Representations and Warranties. Each Credit Party hereby represents and warrants to the Lender Group that:

 (a) This Agreement has been duly executed and delivered by such Credit Party. This Agreement and each Loan Document to which
such Credit Party is party are the legal, valid and binding obligation of such Credit Party, enforceable against such Credit Party in accordance with its terms, and is in full force and effect except as such validity and enforceability is limited by
the laws of insolvency and bankruptcy, laws affecting creditors’ rights and principles of equity applicable hereto; 
 (b)
No Default or Event of Default has occurred and is continuing as of the date hereof; and 
 (c) The representations and
warranties in the Loan Agreement and the other Loan Documents are true and correct in all material respects on and as of the date hereof, as though made on such date (except to the extent that such representations and warranties relate solely to an
earlier date). 
 Section 5. Conditions Precedent. This Agreement shall be effective as of the date first set forth
above, subject to the receipt by Agent of (a) duly executed counterparts of this 
  

 2 

 
Agreement from the Credit Parties and the Lenders and (b) a fee for distribution to each Lender who has executed this Agreement in an amount equal to $250,000 which fee shall be fully earned
on the date hereof. 
 Section 6. Miscellaneous. 

(a) Effect of Agreement. The parties hereto agree and acknowledge that nothing contained in this Agreement in any manner or
respect limits or terminates any of the provisions of the Loan Agreement or any of the other Loan Documents other than as expressly set forth herein and further agree and acknowledge that the Loan Agreement and each of the other Loan Documents
remain and continue in full force and effect and are hereby ratified and confirmed. Except to the extent expressly set forth herein, the execution, delivery and effectiveness of this Agreement shall not operate as a waiver of any rights, power or
remedy of Lenders or Agent under the Loan Agreement or any other Loan Document, nor constitute a waiver of any provision of the Loan Agreement or any other Loan Document. No delay on the part of any Lender or Agent in exercising any of their
respective rights, remedies, powers and privileges under the Loan Agreement or any of the Loan Documents or partial or single exercise thereof, shall constitute a waiver thereof. None of the terms and conditions of this Agreement may be changed,
waived, modified or varied in any manner, whatsoever, except in accordance with Section 15.1 of the Loan Agreement. The Credit Parties acknowledge and agree that the execution and delivery of this Agreement by the Agent and the Lenders party
hereto has not established and is not intended to establish any course of dealing among the parties hereto or created any obligation or agreement of the Agent or the Lenders with respect to any future consent, modification, amendment, waiver or
forbearance with respect to any of the Loan Documents. 
 (b) Counterparts. This Agreement may be executed in any number
of counterparts and by the different parties on separate counterparts, and each such counterpart shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument. Delivery of an executed
counterpart of this Agreement by telecopy or electronic mail shall be as effective as delivery of a manually executed counterpart to this Agreement. 

(c) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK, WITHOUT
REGARD TO ANY CONFLICT OF LAWS PRINCIPLES. 
 [signature pages follow] 

 

 3 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed and delivered as
of the date first written above. 
  

			
	GORDMANS, INC.
		
	By:	 	 /s/ Michael D. James

	Name:	 	 Michael D. James

	Title:	 	 Chief Financial Officer

	
	GORDMANS MANAGEMENT COMPANY, INC.
		
	By:	 	 /s/ Michael D. James

	Name:	 	 Michael D. James

	Title:	 	 Chief Financial Officer

	
	GORDMANS DISTRIBUTION COMPANY, INC.
		
	By:	 	 /s/ Michael D. James

	Name:	 	 Michael D. James

	Title:	 	 Chief Financial Officer

	
	GORDMANS INTERMEDIATE HOLDINGS CORP.
		
	By:	 	 /s/ Michael D. James

	Name:	 	 Michael D. James

	Title:	 	 Chief Financial Officer

[Signature Page to Third Amendment] 
  

			
	WELLS FARGO RETAIL FINANCE, LLC, a Delaware limited liability company, as Agent and as a Lender
		
	By:	 	 /s/ Jason B. Searle

	Name:	 	 Jason B. Searle

	Title:	 	 Vice President

	
	CIT BANK, a Utah Chartered Bank, as Lender
		
	By:	 	 /s/ Benjamin Haslam

	Name:	 	 Benjamin Haslam

	Title:	 	 Authorized Signatory

	
	PNC BANK, NATIONAL ASSOCIATION, as Lender
		
	By:	 	 /s/ Raymond Kupiec

	Name:	 	 Raymond Kupiec

	Title:	 	 Vice President

[Signature Page to Third Amendment] 

 ANNEX A 

FORM OF SOLVENCY CERTIFICATE 

SOLVENCY CERTIFICATE 

The undersigned hereby certifies that the undersigned is (a) the Chief Financial Officer of Gordmans, Inc., a Delaware corporation
(the “Borrower”), (b) authorized to certify as to the financial statements of the Borrower and each other Credit Party, (c) familiar with the properties, business and assets of the Borrower and each other Credit Party, and
(d) authorized to execute and deliver this Certificate on behalf of the Borrower and each other Credit Party. The undersigned further certifies that the undersigned has carefully reviewed the contents of this Certificate and, in connection
herewith, has made such investigations and inquiries as the undersigned deemed necessary and prudent. The undersigned further certifies that the undersigned believes that the financial information and assumptions which underlie and form the basis
for the representations made in this Certificate were reasonable when made and continue to be reasonable as of the date hereof. Capitalized terms used herein that are defined in the Loan, Guaranty and Security Agreement dated as of February 20,
2009 (as amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”) among the Borrower, the financial institutions party thereto (the “Lenders”) and Wells Fargo Retail Finance,
LLC, as agent (in such capacity, the “Agent”), are used herein as so defined. This Certificate is required to be delivered pursuant to the requirements of Section 3 of that certain Consent and Third Amendment to Loan, Guaranty
and Security Agreement dated as of June 30, 2010 in connection with the Permitted Payments referred to and defined therein. The undersigned hereby further certifies, on behalf of the Credit Parties and not in my individual capacity, that:

 1: Immediately prior to and after giving effect to the Permitted Payments and the borrowing of any Loans in connection
therewith, with respect to each of the Borrower and the Credit Parties, taken as a whole: 
 (a) the fair value of its assets
(taken as a going concern based on the price available upon the sale of such assets of such Credit Party by a willing seller to a willing buyer, within a commercially reasonable period of time, each having reasonable knowledge of the material facts,
with neither being under any compulsion to act) is greater than the amount of its liabilities (including reasonably likely disputed, contingent and unliquidated liabilities); 

(b) the present fair saleable value of its assets (taken as a going concern based on the price available upon the sale of such assets of
such Credit Party by a willing seller to a willing buyer, within a commercially reasonable period of time, each having reasonable knowledge of the material facts, with neither being under any compulsion to act) is not less than the amount that will
be required to pay the probable liability on its debts as they become absolute and matured; 
 (c) it is able to realize upon
its assets and pay its debts and other liabilities (including reasonably likely disputed, contingent and unliquidated liabilities) as they mature in the normal course of business; 

 (d) it does not intend to, and does not believe that it will, incur debts or liabilities
beyond its ability to pay as such debts and liabilities mature; and 
 (e) it is not engaged in business or a transaction, and
is not about to engage in business or a transaction, for which its property would constitute unreasonably small capital. 
 2.
In reaching the conclusions set forth in this Certificate, the undersigned has considered, among other things: 
 (a) after
giving effect to the Permitted Payments, the cash and other current assets of the Borrower and each other Credit Party; 
 (b)
after giving effect to the Permitted Payments, refinancing or other replacements of existing liabilities, debts, obligations and commitments which the Borrower and each other Credit Party, as applicable, reasonably expects will be available on the
dates of their respective maturities; 
 (c) after giving effect to the Permitted Payments, the estimated value of all property,
real and personal, tangible and intangible, of the Borrower and each other Credit Party, as applicable; 
 (d) all available
audited and unaudited consolidated financial statements of the Borrower and the Subsidiaries; 
 (e) after giving effect to the
Permitted Payments, all reasonably likely liabilities of the Borrower and each other Credit Party known to the undersigned on all claims, whether or not reduced to judgment, liquidated, unliquidated, matured, unmatured, disputed, undisputed, legal,
equitable, secured, unsecured, fixed or contingent, including, among other things, claims arising out of pending or, to the undersigned’s knowledge, threatened litigation against the Borrower and each other Credit Party; 

(f) historical growth in revenues and cash flows of the Borrower and its Subsidiaries and anticipated growth in revenues and cash flows
of the Borrower and its Subsidiaries, certain pro forma financial information of the Borrower and its Subsidiaries and the Borrower’s and each of its Subsidiary’s business plans, all as previously delivered to the Agent and the Lenders;

 (g) customary terms of trade payables in the industry, of the Borrower and its Subsidiaries; 

(h) the amount of credit extended to customers of the Borrower and its Subsidiaries; and 

(i) after giving effect to the Permitted Payments, the amount of equity capital of the Borrower and each other Credit Party. 

[signature page follows] 
  

 -7- 

 IN WITNESS WHEREOF, the undersigned has executed this Certificate on behalf of the Borrower
and each other Credit Party as of this      day of June, 2010. 
  

			
	GORDMANS, INC.
		
	By:	 	  

	Title:	 	  

[Signature Page to Solvency Certificate]Bonus Agreement - Debra Kouba

 Exhibit 10.40 

Bonus Agreement 

This BONUS AGREEMENT (the “Agreement”) is entered into as of this 16th day of July, 2010, by and between Gordmans
Stores, Inc., a Delaware corporation (the “Company”), and Deb Kouba (“Employee”), on the following terms and conditions: 
  

	1.	The Company shall pay Employee a cash bonus (payable over time as set forth herein) (the “Bonus”) in an aggregate amount up to $180,000.00. Employee
agrees and acknowledges that if Employee (i) is no longer an employee, for whatever reason, of the Company or its subsidiaries or (ii) breaches or violates (as determined in the sole discretion of the Company’s Board of Directors) any
of the terms or provisions of this Agreement, any grant agreement whereby the Company or any of its affiliates granted (or in the future grants) options or other securities to Employee, or any employment, bonus, option grant or other agreement
between Employee and the Company or any of its affiliates, then Employee will not be entitled to receive the Bonus (or such portion of the Bonus which has not been paid). 

 

	2.	The Bonus shall be payable, subject to the terms hereof, as follows: 

  

	 	(a)	Within ten (10) days after the date hereof, the Company shall pay Employee $27,000.00. 

 

	 	(b)	Within ten (10) days after September 17, 2010, the Company shall pay Employee $27,000.00. 

 

	 	(c)	Within ten (10) days after September 17, 2011, the Company shall pay Employee $27,000.00. 

 

	 	(d)	Within ten (10) days after September 17, 2012, the Company shall pay Employee $27,000.00. 

 

	 	(e)	Within ten (10) days after September 17, 2013, the Company shall pay Employee $27,000.00. 

 

	 	(f)	As soon as practicable after the earlier of (x) the occurrence of a Change in Control (as defined below) and (y) the occurrence of an IPO (as defined below),
but in no event later than 60 days following a Change in Control or the IPO, the Company shall pay Employee any unpaid portion of the Bonus set forth in Sections 2(a), 2(b), 2(c), 2(d) and 2(e).

  

	 	(g)	 In addition to any amounts payable to Employee under Section 2(f) above, as soon as practicable after the earlier of (x) the
occurrence of a Change in Control and (y) the occurrence of an IPO, but in no event later than 60 days following the Change in Control or the IPO, the Company shall pay Employee an amount equal to (i) $45,000.00, less (ii) the amount,
if any, by which $45,000.00 is greater than the product of (A) the fair market value of a share of the Company’s common stock (the “Company Common Stock”) on the date of the Change in Control, as

	 	 
determined by the Company’s Board of Directors in its sole discretion, multiplied by (B) 9,000. 

 

	 	(h)	For purposes of this Agreement, “Change in Control” shall mean (i) any consolidation, merger or other transaction in which the Company is not the
surviving entity (other than any such transaction for the purpose of changing the Company’s domicile or form of organization) or which results in the acquisition of all or substantially all of the outstanding shares of Company Common Stock by a
single person or entity or by a group of persons or entities acting in concert or (ii) any sale or other transfer or disposition of all or substantially all of the Company’s assets (excluding, however, for this purpose any real estate
“sale-lease back” transaction); provided, however, that the term “Change in Control” shall not include transactions either (x) with affiliates of the Company or Sun Capital Partners, Inc. (“Sun”) (as
determined by the Company’s Board of Directors in its sole discretion), (y) pursuant to which more than fifty percent (50%) of the shares of voting stock of the surviving or acquiring entity is owned and/or controlled (by agreement or
otherwise), directly or indirectly, by Sun or its affiliates or (z) in connection with which the consideration paid to the Company or to its stockholders, as the case may be, does not consist primarily of cash (as determined by the
Company’s Board of Directors in its sole discretion); provided further, however, that a transaction shall not constitute a Change in Control unless the transaction also constitutes a change in the ownership or effective control of the Company,
or in the ownership of a substantial portion of the Company’s assets, within the meaning of Section 409A(a)(2)(A)(v) of the Internal Revenue Code of 1986, as amended (the “Code”) and the regulations or other published
guidance promulgated thereunder. 

  

	 	(i)	For purposes of this Agreement, an “IPO” means the initial sale in an underwritten public offering of the common stock the Company pursuant to the Form
S-1 Registration Statement filed with the Securities and Exchange Commission on April 30, 2010 under the Securities Act of 1933, as amended. 

  

	 	(j)	Anything in this Agreement to the contrary notwithstanding, in the event it shall be determined that any payment by the Company in connection with a Change in Control
to or for the benefit of Employee (whether paid or payable pursuant to the terms of this Agreement or otherwise) (a “Payment”) would be nondeductible by the Company for Federal income tax purposes because of Section 280G of the
Code, the Company shall take reasonable efforts to obtain shareholder approval of the payment as described in Section 280G(b)(5)(B) of the Code (the “Shareholder Approval”). Anything in this Agreement to the contrary
notwithstanding, in the event that the Company is unable to obtain Shareholder approval of the Payment, then the amount payable to Employee hereunder shall be reduced to the Reduced Amount. The “Reduced Amount” shall be that amount
that maximizes the Payment amount hereunder without causing any Payment to be nondeductible by the Company because of Section 280G of the Code. 

 

 2 

	3.	The permitted payment events specified in Section 2 are intended to comply with the provisions of Section 409A(a)(2) of the Code. The Company may make
any changes to this Agreement it determines in its sole discretion are necessary to comply with the provisions of Code Section 409A and any final, proposed, or temporary regulations or any other guidance issued thereunder without the consent of
Employee. 

  

	4.	The Company, or its designated paying agent, may withhold from any amounts payable to Employee under this Agreement such foreign, federal, state, local and other taxes
as may be required to be withheld pursuant to any applicable law or regulation. 

  

	5.	Employee agrees to abide by and hereby reaffirms the covenants and agreements set forth in this Agreement, any grant agreement whereby the Company or any of its
affiliates granted (or in the future grants) options or other securities to Employee, or any employment, bonus, option grant or other agreement between Employee and the Company or any of its affiliates; and agrees that this Agreement constitutes
additional consideration in support of such covenants and agreements. 

  

	6.	This Agreement is legally binding on the parties and their respective successors and assigns. It may be executed in counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument. It constitutes the entire agreement and understanding of the parties with respect to the subject matter hereof, and supersedes and preempts any prior written or oral
agreements understandings, or representations with respect thereto. Except as set forth herein, the terms and provisions of this Agreement cannot be terminated, modified or amended except in a writing signed by the party against whom enforcement is
sought. This Agreement shall be governed by, and construed and, except as set forth in the second to last sentence of this paragraph, interpreted in accordance with, the laws of the State of Delaware, and any suit, action or proceeding arising out
of or relating to this Agreement shall be commenced and maintained in any court of competent subject matter jurisdiction located in Wilmington, Delaware. In any suit, action or proceeding arising out of or in connection with this Agreement, the
prevailing party shall be entitled to recover from the other party, upon final judgment on the merits, all attorneys’ fees and disbursements actually billed to such party, including all such fees and disbursements incurred at trial, during any
appeal or during negotiations. None of Employee’s rights under this Agreement may be transferred, assigned, pledged or encumbered. Any ambiguity with respect to any term of this Agreement or any interpretation thereof shall be resolved in the
sole discretion of the Company’s Board of Directors. EACH OF THE PARTIES TO THIS AGREEMENT IRREVOCABLY AND UNCONDITIONALLY WAIVES THE RIGHT TO A TRIAL BY JURY IN ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF, CONNECTED WITH OR RELATING TO THIS
AGREEMENT, THE MATTERS CONTEMPLATED HEREBY, OR THE ACTIONS OF THE PARTIES IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT OF THIS AGREEMENT. 

 

	7.	 Employee agrees and acknowledges that nothing in this Agreement shall confer upon Employee any right to continue in the employ of the Company or any of
its subsidiaries or affiliates, or interfere in any way with any right of the Company or any of its 

 

 3 

	 	 
subsidiaries or affiliates to terminate such employment at any time for any reason whatsoever (whether for cause or without cause) without liability to the Company or any of its subsidiaries or
affiliates. 

 [REMAINDER OF THE PAGE INTENTIONALLY LEFT BLANK] 

 

 4 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above
written. 
  

					
	Accepted and Agreed:	 		 	GORDMANS STORES, INC.
			
	/s/ Debra Kouba	 	By:	 	/s/ Jeff Gordman
	Deb Kouba	 		 	 Name: Jeff Gordman

Title:   President and Chief Executive Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}]]