Document:

EXHIBIT 4.6

       AMENDMENT NO. 1 TO THE TRANSACTION DOCUMENTS ISSUED PURSUANT TO THE
      SECURITIES PURCHASE AGREEMENT BETWEEN RCG COMPANIES INCORPORATED AND
      THE PURCHASERS SIGNATORY THERETO (THE "PURCHASERS") FOR THE PURCHASE
     OF THE SECURED CONVERTIBLE DEBENTURES, DUE FEBRUARY 8, 2007 AND COMMON
                             STOCK PURCHASE WARRANTS

      This  Amendment  No. 1  ("Amendment")  is made to that certain  Securities
Purchase Agreement ("Purchase Agreement") dated as of February 8, 2005 among RCG
Companies Incorporated (the "Company") and the purchasers signatory thereto (the
"Purchasers")  for the  purchase  of the  Secured  Convertible  Debentures,  due
February  8, 2007 issued to the  Purchasers  (the  "Debentures")  and the Common
Stock Purchase  Warrants  issued to the Purchasers  (the  "Warrants") and to the
Transaction Documents, as referenced below.

      For good and valuable consideration,  the receipt and sufficiency of which
are hereby acknowledged, the parties hereby agree as follows:

      1.    Addition of Purchaser. For the purpose of the Purchase Agreement and
            the Transaction  Documents,  the term Purchaser shall be amended and
            restated  to include  JGB  Capital  L.P.  ("JGB"),  who shall now be
            considered a signatory to the Purchase Agreement and the Transaction
            Documents.

      2.    Closing  Date.  All  references  to the Closing Date in the Purchase
            Agreement and the Transaction  Documents shall be to the date of the
            Purchase  Agreement  which is  February  8,  2004 and  shall  not be
            amended or restated by this Amendment.

      3.    Definitions.  Section 1.1 of the Purchase Agreement shall be amended
            and restated to include the following:

                  ""Amendment"  means,  the Amendment  No. 1 to this  Agreement,
                  dated as of  February  8, 2005 by and  between the Company and
                  the Purchasers."

                  ""Intercreditor Agreement" means, the Intercreditor Agreement,
                  dated as of  February  8, 2005 by and  between the Company and
                  the Purchasers."

                  ""Transaction Documents" means this Agreement, the Debentures,
                  the Warrants, the Escrow Agreement, the Security Agreement and
                  Security Documents,  the Registration Rights Agreement and the
                  Intercreditor Agreement."

      4.    Aggregate  Subscription  Amounts.  All  references  in the  Purchase
            Agreement and the Transaction  Documents to the aggregate  Principal
            Amount for the transaction  equal to $7,000,000 shall be amended and
            restated  as  $8,000,000,  including  Section  2.1 of  the  Purchase
            Agreement which shall be amended and restated as follows:
<PAGE>
                                                                     EXHIBIT 4.6

                  "Section 2.1.  Closing.  On the Closing Date,  each  Purchaser
                  shall  purchase  from the Company,  severally  and not jointly
                  with the other  Purchasers,  and the  Company  shall issue and
                  sell to each Purchaser,  (a) up to $8,000,000 Principal Amount
                  of Debentures;  and (b) the Warrants as determined pursuant to
                  Sections   2.2(a)(iii)  -  (iv).  Upon   satisfaction  of  the
                  conditions  set forth in Section 2.2, the Closing  shall occur
                  at the offices of the Escrow  Agent or such other  location as
                  the parties shall mutually agree."

      5.    Participation  in Future  Financing.  The first  sentence of Section
            4.13 of the  Purchase  Agreement  shall be amended  and  restated as
            follows:

                  "Section 4.13.  Participation  in Future  Financing.  From the
                  date of the  Amendment  until  the  Debentures  are no  longer
                  outstanding,  upon any  financing by the Company of its Common
                  Stock or Common Stock Equivalents (a "Subsequent  Financing"),
                  each  Purchaser  shall have the right to  participate in up to
                  100% of such Subsequent Financing."

      6.    Future Financing. The first sentence of Section 4.14 of the Purchase
            Agreement shall be amended and restated as follows:

                  "Section  4.14  Future  Financings.   From  the  date  of  the
                  Amendment until 90 days after the Effective  Date,  other than
                  as contemplated by this Agreement, neither the Company nor any
                  Subsidiary  (with respect to Common Stock  Equivalents)  shall
                  issue or sell any  Common  Stock or Common  Stock  Equivalents
                  entitling any Person to acquire shares of Common Stock."

      7.    Filing of Form 8-K.  Within 1 Trading  Day of the date  hereof,  the
            Company  shall  file a  Current  Report on Form 8-K  disclosing  the
            material  terms of this Amendment and attaching this Amendment as an
            exhibit thereto.

      8.    Escrow  Agreement.  Pursuant  to the Escrow  Agreement,  dated as of
            February 8, by and among,  the Company,  the  Purchasers and Feldman
            Weinstein,  LLP (the "Escrow Agent" and such agreement,  the "Escrow
            Agreement"),  the Subscription  Amount of each Purchaser,  including
            JGB, shall be deposited with the Escrow Agent.  JGB shall be subject
            to all of the terms and conditions of the Escrow Agreement.

      9.    Effect on Purchase Agreement and the Transaction  Documents.  Except
            as expressly set forth above, all of the terms and conditions of the
            Purchase  Agreement and the Transaction  Documents shall continue in
            full force and effect  after the  execution of this  Amendment,  and
            shall not be in any way changed, modified or superseded by the terms
            set forth herein.
<PAGE>
                                                                     EXHIBIT 4.6

      10.   Definitions. CAPITALIZED TERMS NOT OTHERWISE DEFINED HEREIN HAVE THE
            MEANINGS  GIVEN TO SUCH  TERMS  IN THE  PURCHASE  AGREEMENT  AND THE
            TRANSACTION DOCUMENTS.
<PAGE>
                                                                     EXHIBIT 4.6

Executed   as  of  February  8,  2005  by  the   undersigned   duly   authorized
representatives of the Company and Purchasers:

RCG COMPANIES INCORPORATED                  ALPHA CAPITAL AG

By: ____________________________            By: ____________________________
      Name:                                       Name:
      Title:                                      Title:

PALISADES MASTER FUND, L.P.                 CRESCENT INTERNATIONAL LTD.

By: ____________________________            By: ____________________________
      Name:                                       Name:
      Title:                                      Title:

ANDREW RECKLES                              PERFECT TIMING LLC

By: ____________________________            By: ____________________________
      Name:                                       Name:
      Title:                                      Title:

PORTSIDE GROWTH AND OPPORTUNITY FUND        BRISTOL INVESTMENT FUND, LTD.

By: ____________________________
      Name:                                 By: ____________________________
      Title:                                      Name:
                                                  Title:

JGB CAPITAL L.P.

By: ____________________________
      Name:
      Title:

ESCROW AGENT:

FELDMAN WEINSTEIN LLP

By:______________________________
     Name:
     Title:EXHIBIT 4.7

                            INTER-CREDITOR AGREEMENT

      This INTER-CREDITOR  AGREEMENT (this "Agreement') is made and effective as
of  February  8,  2005,  by and among RCG  Companies  Incorporated,  a  Delaware
corporation  (the  "Company" or the "Debtor"),  the purchasers  signatory to the
Security Purchase Agreement (the "Purchase Agreement"),  dated as of February 8,
2005, by and among the Company and the  purchasers  (the  "Purchasers")  and JGB
Capital L.P. ("JGB" and  collectively,  the Purchasers and JGB shall be referred
to herein as the "Creditors").

                                    RECITALS

      WHEREAS, the Debtor and the Purchasers have executed that certain Purchase
Agreement and any and all  subsequent  amendments and waivers  thereto,  for the
purchase  of  Secured  Convertible   Debentures,   due  February  8,  2007  (the
"Debentures") and Common Stock Purchase Warrants (the "Warrants");

      WHEREAS,  payments are to be made to the  Creditors by Debtor  pursuant to
the Debentures (as defined in the Purchase Agreement), which such Debentures are
secured by certain  Security  Agreements by and between the Debtor and Creditors
and dated as of the date hereof;

      WHEREAS,  the Creditors wish to  memorialize  their  agreement  concerning
their respective  rights,  duties and obligations to one another with respect to
the Purchase Agreement,  the Debentures and Transaction Documents (as defined in
the Purchase Agreement); and

      WHEREAS,  ALL  CAPITALIZED  TERMS NOT OTHERWISE  DEFINED HEREIN SHALL HAVE
THEIR RESPECTIVE MEANINGS AS SET FORTH IN THE PURCHASE AGREEMENT.

      NOW,  THEREFORE,  in consideration of the mutual covenants  herein,  their
respective  performances and benefits pertaining to the Purchase Documents,  and
other good and valuable consideration,  the receipt and sufficiency of which are
hereby acknowledged, the parties agree as follows:

                                    AGREEMENT

1. Payment of Obligations and Expenses.

      1.1.  The  parties  agree that the  payment of all  amounts  due under the
Debentures  and all  expenses  related to such  Transaction  Documents  shall be
shared in  proportion  to the amount  owed to each  Creditor  pursuant  to their
Debenture.  To the extent that any party receives a Debenture  payment in excess
of the payment amount due to such party pursuant to such party's Debenture,  the
other parties  shall  immediately  be notified and such excess  amounts shall be
paid to such parties on a pro-rata basis.

      1.2 If an Event of Default  occurs and any party hereto  receives  payment
from the Company,  the other parties  hereto shall be  immediately  notified and
such  payment  shall be shared  with all of the other  Creditors  on a  pro-rata
basis.

                                       1
<PAGE>
                                                                     EXHIBIT 4.7

      1.3 If an Event of Default occurs and any party hereto  collects  proceeds
pursuant to its rights under the Security Agreements, the other parties shall be
immediately  notified and such proceeds shall be shared with the other Creditors
on a pro-rata basis.

      1.4 The  Company  agrees it shall  treat each of the  Creditors  on a pari
passu  basis,  without  preference  or  priority  of any kind over one  another,
including in the event of a  bankruptcy,  and without  regard to  perfection  or
order of priority of the Creditors.

2.  Indemnification by the Debtor. The Debtor shall indemnify,  defend, and hold
harmless the Creditors against and in respect of any and all liability,  claims,
demands, losses, costs, expenses, obligations, liabilities, damages, recoveries,
and deficiencies, including interest, penalties, and reasonable professional and
attorney's fees, including those arising from settlement negotiations,  that the
Creditors  shall incur or suffer,  which arise,  result  from,  or relate to any
breach  of,  or  failure  by  the  Debtor  to  perform,   any  of  the  Debtor's
representations,  warranties,  covenants,  or agreements in this Agreement or in
any  schedule,  certificate,  exhibit  or other  instrument  furnished  or to be
furnished by the Debtor under this Agreement.

3. Indemnification by Each Creditor. Each Creditor (the "Indemnifying Creditor")
shall  indemnify,  defend,  and hold harmless each of the other  Creditors  (the
"Indemnified  Creditors")  against  and in  respect  of any and  all  liability,
claims, demands,  losses, costs, expenses,  obligations,  liabilities,  damages,
recoveries,  and deficiencies,  including  interest,  penalties,  and reasonable
professional  and  attorney's  fees,  including  those  arising from  settlement
negotiations,  that such  Indemnified  Creditors  shall  incur or suffer,  which
arise,  result from, or relate to any breach of, or failure by the  Indemnifying
Creditor to perform, any of Indemnifying Creditor's representations, warranties,
covenants,  or  agreements in this  Agreement or in any  schedule,  certificate,
exhibit or other  instrument  furnished or to be  furnished by the  Indemnifying
Creditor under this Agreement.

4. Miscellaneous.

      4.1  Assignment.  The rights and  obligations  of the  parties  under this
      Agreement  may not be assigned or assumed  without the written  consent of
      all parties. Any attempt to transfer same shall be void ab initio.

      4.2 Binding Effect. This Agreement shall be binding on, and shall inure to
      the  benefit  of, the  parties  to it and their  respective  heirs,  legal
      representatives, and successors.

      4.3 Parties in Interest.  Except as expressly  provided in this Agreement,
      nothing in this  Agreement,  whether  express or  implied,  is intended to
      confer any rights or remedies  under or by reason of this Agreement on any
      persons other than the parties to it and their  respective  successors and
      assigns,  nor is  anything  in  this  Agreement  intended  to  relieve  or
      discharge the obligation or liability of any third persons to any party to
      this  Agreement,  nor shall any provision give any third persons any right
      to subrogation or action over against any party to this Agreement.

                                       2
<PAGE>
                                                                     EXHIBIT 4.7

      4.4 Entire  Agreement.  This Agreement  constitutes  the entire  agreement
      between the parties  pertaining to the subject matter  contained in it and
      supersedes all prior and contemporaneous  agreements,  representations and
      understandings of the parties.

      4.5 Amendment. No supplement, modification, or amendment of this Agreement
      shall be binding unless executed in writing by all the parties.

      4.6 Waiver.  No waiver of any of the provisions of this Agreement shall be
      deemed, or shall constitute,  a waiver of any other provision,  whether or
      not  similar,  nor shall any waiver  constitute a  continuing  waiver.  No
      waiver shall be binding unless executed in writing by the party making the
      waiver.

      4.7 Notices.  Any and all notices or other  communications  or  deliveries
      required or  permitted  to be provided  hereunder  shall be in writing and
      shall be deemed  given and  effective  on the  earliest of (a) the date of
      transmission,  if such notice or  communication is delivered via facsimile
      at the facsimile number specified on the signature page prior to 4:00 p.m.
      (New York City time) on a business day and an electronic  confirmation  of
      delivery is received by the sender,  (b) the next  business  day after the
      date of  transmission,  if such notice or  communication  is delivered via
      facsimile at the facsimile  number specified in this Section on a day that
      is not a business day or later than 4:00 p.m.  (New York City time) on any
      business day, (c) three  business days  following the date of mailing,  if
      sent by U.S. nationally  recognized overnight courier service, or (d) upon
      actual  receipt by the party to whom such  notice is required to be given.
      The addresses for such notices and  communications  are those set forth on
      the signature pages hereof,  or such other address as may be designated in
      writing hereafter, in the same manner, by such Person.

      4.9  Governing  Law and  Venue.  This  Agreement  shall  be  construed  in
      accordance  with,  and governed by, the laws of the State of New York, and
      any action or proceeding,  including arbitration,  brought by any party in
      which this  Agreement  is a subject,  shall be brought in New York County,
      New York.

      4.10 Effect of Headings.  The  headings of the Sections of this  Agreement
      are included for purposes of  convenience  only,  and shall not affect the
      construction or interpretation of any of its provisions.

      4.11 Invalidity.  Any provision of this Agreement which is invalid,  void,
      or illegal, shall not affect, impair, or invalidate any other provision of
      this Agreement,  and such other  provisions of this Agreement shall remain
      in full force and effect.

      4.12 Counterparts. This Agreement may be executed simultaneously in one or
      more counterparts,  each of which shall be deemed an original,  but all of
      which together shall constitute one and the same instrument.

      4.13 Number and Gender.  When  required by the context of this  Agreement,
      each number  (singular  and plural)  shall  include all numbers,  and each
      gender shall include all genders.

                                       3
<PAGE>
                                                                     EXHIBIT 4.7

      4.14  Joint  and  Several  Liability.  In the  event  either  party now or
      hereafter  shall consist of more than one person,  firm,  or  corporation,
      then and in such event, all such persons,  firms or corporations  shall be
      jointly and severally liable as parties under this Agreement.

      4.15 Further  Assurances.  Each party to this Agreement  agrees to execute
      further  instruments  as may be  necessary  or desirable to carry out this
      Agreement,  provided the party  requesting  such further action shall bear
      all related costs and expenses.

      4.16  Professional  Fees and  Costs.  If any  legal or  equitable  action,
      arbitration, or other proceeding,  whether on the merits or on motion, are
      brought or undertaken, or an attorney retained, to enforce this Agreement,
      or because of an alleged dispute, breach, default, or misrepresentation in
      connection  with  any  of the  provisions  of  this  Agreement,  then  the
      successful  or  prevailing  party or parties in such  undertaking  (or the
      party that would prevail if an action were  brought)  shall be entitled to
      recover  reasonable  attorney's fees and other professional fees and other
      costs incurred in such action, proceeding, or discussions,  in addition to
      any other relief to which such party may be entitled.  The parties  intend
      this provision to be given the most liberal  construction  possible and to
      apply to any circumstances in which such party reasonably incurs expenses.

      4.17  Effectiveness.  This  Agreement  shall be dated and  effective  upon
      execution of this Agreement (or one or more of its counterparts) by all of
      the parties.

                                       4
<PAGE>
                                                                     EXHIBIT 4.7

      IN WITNESS  WHEREOF,  the parties  hereto have caused this Agreement to be
duly executed by their  respective  authorized  signatories as of the date first
indicated above.

RCG COMPANIES INCORPORATED

By:__________________________________________
     Name:
     Title:

                   [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
                      SIGNATURE PAGE FOR CREDITORS FOLLOWS]

                                       5
<PAGE>
                                                                     EXHIBIT 4.7

          [SIGNATURE PAGE OF CREDITORS TO rcg INTERCREDITOR AGREEMENT]

Name of Creditor: ____________________________________
Signature of Authorized Signatory of Creditor: ____________________________
Name of Authorized Signatory: _____________________________________________
Title of Authorized Signatory: ____________________________________________

                           [SIGNATURE PAGES CONTINUE]

                                       6

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