Document:

Exhibit 10.1

      Exhibit
      10.1 

      (Return
      to Form 8-K)

                                                                                                                

     

     

    AGREEMENT
      OF PURCHASE AND SALE

    

    THIS
      AGREEMENT OF PURCHASE AND SALE (this “Agreement”)
      is
      made by I. C. ISAACS & COMPANY LIMITED PARTNERSHIP, a Maryland limited
      partnership (“Seller”),
      and D
& R REALTY II, LLC, a Maryland limited liability company (“Purchaser”),
      as of
      March 14, 2008 (the “Effective
      Date”).
      

    

    EXPLANATORY
      STATEMENT

    

    Seller
      is
      the owner of the Property (as defined below). Seller desires to sell the
      Property to Purchaser and Purchaser desires to buy the Property from Seller
      pursuant to the terms and conditions of this Agreement.

    

    NOW,
      THEREFORE, for good and valuable consideration, the receipt and sufficiency
      of
      which are acknowledged, Seller and Purchaser agree as follows:

    

    Section
      1. Property;
      Purchase and Sale

    

    Seller
      agrees to sell, and Purchaser agrees to buy, all of Seller's right, title and
      interest in the following property: (a) the fee simple interest of Seller in
      a
      parcel containing .577 acres, more or less, described as Map 26, Section 16,
      Block 6311, Lot 55, and as further described on Exhibit
      A,
      attached to and made a part of this Agreement (the "Land"),
      located in the City of Baltimore, State of Maryland; (b) all of Seller’s
      interest, if any, in the buildings and other improvements located on the Land,
      including a building consisting of 25,200 square feet, more or less, of office
      and warehouse space, being generally known as 3840 Bank Street, Baltimore,
      Maryland 21224 (the "Improvements");
      (c)
      together with all fixtures, equipment, and other personal property owned by
      Seller and affixed to the Improvements (the “Fixtures”)
      (collectively, the Land, Improvements and the Fixtures are sometimes referred
      to
      in this Agreement as the "Property").

    

    Section
      2.  Purchase
      Price and Deposits 

    

    The
      purchase price which Purchaser agrees to pay and Seller agrees to accept for
      Seller's interest in the Property shall be the sum of Nine Hundred Thousand
      Dollars ($900,000.00) (the "Purchase
      Price"),
      payable as follows:

    

    (a) An
      earnest money deposit (the "Deposit")
      of
      Twenty-Five Thousand Dollars ($25,000.00), in cash or immediately available
      funds, to be deposited with FIRST MOUNTAIN TITLE, LLC (the "Escrow Agent")
      by
      Purchaser upon Purchaser’s execution of this Agreement, and that is refundable
      to Purchaser, subject to the provisions of Section
      5.1,
      until
      the end of the Contingency Period (as defined below), at which point the Deposit
      becomes non-refundable except upon Seller’s default as set forth in Section
      3.2
      or upon
      the occurrence of any event set forth in Section
      6;
      and

    

    (b) The
      balance of the Purchase Price shall be paid at time of Closing (as defined
      in
Section
      4)
      by
      federal wire transfer to Seller or its designee.

    

    The
      Deposit shall be paid to Seller at the Closing as a credit against the Purchase
      Price. 

    

    Three
      (3)
      original copies of this Agreement shall be delivered to the Escrow Agent
      immediately after both parties have executed it, together with the Deposit
      from
      Purchaser. The Escrow Agent shall execute this Agreement, retain one copy and
      deliver one fully executed original copy to each of Purchaser and
      Seller.

    

    Section
      3.  Failure
      to Close

    

    3.1 Purchaser's
      Default.
      In
      the
      event that Purchaser fails to perform any of its obligations under this
      Agreement and fails to correct such failure within ten (10) days after written
      notice is given to Purchaser by Seller, Seller's remedies shall include any
      remedies available at law or in equity, in which event the Escrow Agent shall
      immediately deliver the Deposit to Seller. Seller may retain the Deposit,
      terminate this Agreement upon notice to Purchaser, in
      which
      event neither party shall have any further rights or obligations with respect
      to
      the other under this Agreement, except as to the terms of this Agreement which
      expressly survive Closing or the earlier termination of this Agreement (the
      “Surviving
      Covenants”),
      and
      sue
      for actual damages suffered by Seller. 

    

    3.2 Seller's
      Default.
      In the
      event that Purchaser has complied with all of the covenants and conditions
      contained in this Agreement and is ready, willing and able to take title to
      the
      Property in accordance with this Agreement, and Seller fails to consummate
      this
      Agreement and convey title as set forth in this Agreement
      within
      ten (10) days after written notice is given to Seller by Purchaser,
      then
      Purchaser may elect to (i) seek specific performance requiring Seller to perform
      any covenants of Seller under this Agreement, or (ii) terminate this Agreement
      by written notice to Seller, in which event neither party shall have any further
      rights or obligations with respect to the other under this Agreement, except
      as
      to the Surviving Covenants, obtain the Deposit from the Escrow Agent,
and
      sue
      for actual damages suffered by Purchaser.

    

    Section
      4.  Closing
      and Transfer of Title

    

    4.1 Closing.
      The
      time of a closing of this sale (the "Closing")
      shall
      be designated by Purchaser by written notice given to Seller not less than
      five
      (5) days prior to the proposed closing date and shall be held in the office
      of
      the Escrow Agent or by mail. In no event shall the date of Closing (the
“Closing
      Date”)
      be
      more than sixty (60) days after the expiration of the Contingency Period (as
      defined below). This Agreement shall terminate if transfer of title is not
      completed by the Closing Date (unless such failure to close is due to Seller's
      default, or unless the date for Closing is extended by written agreement of
      the
      parties). If the Closing has not occurred by the ninety-fifth (95th)
      day
      after the Effective Date for any reason other than Seller’s default or earlier
      termination of this Agreement, then the parties agree that the Escrow Agent
      shall immediately deliver the Deposit to Seller without the need for any further
      notice or authorization from either party.

    

    4.2 Closing
      Procedure.
      At
      Closing, Seller shall execute and deliver or cause to be executed and delivered:
      

    

    (a) a
      Special
      Warranty Deed (the “Deed”)
      in
      proper form for recording, conveying Seller's right, title and interest in
      the
      Property to Purchaser
      or to
      Purchaser’s designee subject to:

    

    (1) Existing
      leases, easements, sidetrack and license agreements, if any, whether of record
      or not;

    

    (2) Covenants
      and conditions of record, if any;

    

    (3) Taxes
      and
      special assessments against the Property, if any;

    

    (4) Zoning
      laws and municipal regulations, if any; 

    

    (5) Environmental
      laws and regulations, if any; 

    

    (6) Building
      line restrictions, use restrictions and building restrictions of record, if
      any;
      and 

    

    (7) Encroachments,
      overlaps and other matters which would be disclosed by an accurate current
      survey;

    

    (b) an
      affidavit that Seller is not a "foreign person" in substantially the form of
      Exhibit B,
      attached to and made a part of this Agreement; 

    

    (c) an
      assignment of Seller’s interest in leases on the Property, if any; 

    

    (d) a
      bill of
      sale, if applicable, for any Fixtures; 

    

    (e) a
      lease
      for Seller’s continued use and occupancy of the Property after Closing in
      substantially the form of Exhibit
      C,
      attached to and made a part of this Agreement (the “Lease”);
      

    

    (f) a
      settlement statement prepared by the Title Company and satisfactory to both
      Purchaser and Seller setting forth the source of funds and allocation of costs
      for this transaction (the “Settlement Sheet”); and

    

    (g) all
      documents, certifications and affidavits reasonably and customarily required
      by
      the Title Company for issuance of the Title Policy pursuant to the Title Report
      referenced in Section
      5.2,
      .

    

    4.3 Purchaser's
      Performance.
      At
      Closing, Purchaser will cause the Purchase Price and funds equal to all costs
      of
      Closing payable by Purchaser pursuant to this Agreement to be delivered to
      the
      Escrow Agent. Purchaser shall also execute and deliver or cause to be executed
      and delivered the Lease and Settlement Sheet.

    

    Section
      5.  Contingency
      Period; Right to Continue Marketing; Restoration Rights.

    

    5.1 Contingency
      Period.
      Purchaser
      shall have until 11:59 p.m., Eastern time, April 13, 2008 (the “Contingency
      Period”)
      to
      conduct a title search, feasibility studies, and any other investigation of
      the
      Property which Purchaser chooses to conduct, including but not limited to
      environmental audits. Purchaser and Seller shall also negotiate and agree upon
      the final form of a lease pursuant to Section
      14
      of this
      Agreement. Purchaser may choose to terminate this Agreement for any reason
      by
      written notice to Seller prior to the end of the Contingency Period. Upon
      receipt of such notice of termination, Seller shall notify the Escrow Agent
      to
      deliver any outstanding cost of restoring the Property as described in this
      Section to Seller, with the remainder of the Deposit to be returned to
      Purchaser. During the Contingency Period, Purchaser, its agents, employees,
      contractors and engineers shall have the right from time to time to enter upon
      the Property at their risk and expense for the purpose of inspecting the same
      and conducting surveys, engineering studies, borings, soil tests,
      investigations, feasibility studies, environmental audits, and the like
      (individually or collectively, the “Studies”),
      but
      only to the extent that Purchaser has arranged a site visit at least one (1)
      day
      in advance with Seller, and only to the extent that Seller can accompany
      Purchaser or its representative on site if Seller chooses to do so. In any
      event, any such entry is at Purchaser or its agent’s sole risk. All such entries
      shall be made in such a manner as to minimize interference with the use and
      occupancy of the Property by Seller. During the Contingency Period, and
      thereafter unless and until Purchaser delivers to Seller evidence of Purchaser’s
      financial ability to complete the purchase satisfactory to Seller in its
      reasonable discretion, Seller shall be permitted to continue all marketing
      efforts relating to the Property and to enter into agreements for the purchase
      and sale of the Property with other potential purchasers; such agreements shall
      be contingent upon the termination of this Agreement. Upon written notice from
      Seller, Purchaser shall immediately restore the Property, to the extent the
      Property has been affected by any Studies or by entry onto the Property by
      or on
      behalf of Purchaser, to its prior condition at Purchaser’s sole cost.
      Purchaser’s obligation to restore the Property as described in this Section
      shall survive termination of this Agreement.

    

    5.2 Title
      Review.
      During
      the Contingency Period, Purchaser may obtain a title report or
      title
      insurance commitment (the "Title
      Report"),
      issued by a national title company (the "Title
      Company").
      If
      there shall exist any other condition or matter affecting title to which
      Purchase objects (a “Title
      Matter”),
      Purchaser shall, within five (5) days after receipt of the Title Report (but
      in
      any event prior to the end of the Contingency Period), notify Seller in writing
      of any such Title Matter. Such written notice of a Title Matter shall state
      Purchaser's objection with specificity and shall be limited to matters which
      would render title to the Property unmarketable. If Seller does not receive
      Purchaser’s written notice of a Title Matter within such five (5) day period or
      by the end of the Contingency Period, whichever is earlier, then it shall be
      automatically and conclusively presumed that Purchaser has waived all objections
      to title. Upon receipt of such notice of a Title Matter, Seller may (i)
      terminate this Agreement by written notice to Purchaser and Seller shall then
      direct the Escrow Agent to return the Deposit (less any costs payable by
      Purchaser as described in Section
      5.1)
      to
      Purchaser, or (ii) elect to cure such Title Matter. If Seller elects to cure
      such Title Matter and does so within 15 days after receipt of Purchaser’s
      notice, or, if any such Title Matter is such that it cannot be cured within
      15
      days, but Seller has commenced curing such Title Matter and thereafter
      diligently proceeds to perfect such cure, then this Agreement shall continue
      in
      full force and effect and the Closing Date shall be adjusted accordingly. If
      Seller chooses not to cure a Title Matter or otherwise fails to cure a Title
      Matter within the required time period, then Purchaser may either (a) waive
      any
      Title Matter that Seller chooses not to cure or otherwise fails to cure, and
      upon receipt by Seller of such waiver in full from Purchaser, this Agreement
      shall remain in full force and effect or (b) Purchaser may terminate this
      Agreement pursuant to Section
      5.1.
      Notwithstanding anything to the contrary in this Section
      5.2,
      Seller
      shall remove any monetary liens applicable to the Property prior to or in
      connection with Closing. If requested by Seller, Purchaser will confirm in
      writing whether this title contingency has been satisfied and, if so, the date
      on which it was satisfied.

    

    If
      Purchaser or any lender requests or requires the issuance of a title insurance
      policy (the “Title
      Policy”),
      or
      the issuance of such policy with extended coverage, all Title Policy premiums
      shall be at the sole cost and expense of Purchaser and not Seller, and
      satisfaction of such request or requirement shall not delay
      Closing.

    

    5.3 Seller
      Deliveries.
      Purchaser acknowledges that Seller has previously provided to Purchaser copies
      of all drawings, site work plans, title policies, plats, surveys, wetland
      studies, appraisals, environmental reports, leases and the like relating to
      the
      Property that are available to or in the possession of Seller, such documents
      being listed on Exhibit
      D,
      attached to and made a part of this Agreement (the “Feasibility
      Documents”).
      Purchaser further acknowledges that Seller has provided the Feasibility
      Documents solely to assist Purchaser with its evaluation of the Property, and
      Seller makes no representation or warranty whatsoever as to the accuracy or
      completeness of any such documents or materials provided to Purchaser. Purchaser
      may not rely on Seller for the accuracy or completeness of any Feasibility
      Document or related information. Purchaser shall be fully and solely responsible
      for verifying any information it deems material or relevant to its evaluation
      of
      the Property.

    

    Section
      6.  Loss
      Due to Casualty or Condemnation

    

    The
      entire risk of loss by condemnation, casualty or other loss relating to the
      Property shall be that of Seller. It is also understood and agreed that Seller
      shall maintain, at Seller’s cost, the current level of insurance on the
      Property. If prior to Closing the Property, or any part thereof, is taken by
      condemnation or materially damaged, either Seller or Purchaser may terminate
      this Agreement, and the Deposit shall be returned to Purchaser, subject to
      the
      provisions of Section
      5.1.

    

    Section
      7.  Maintenance
      of the Property

    

    Between
      the Effective Date and the Closing Date, Seller shall continue to maintain
      the
      Property in good repair, reasonable wear and tear excepted. During the period
      from the Effective Date to the Closing Date, Seller shall not enter into any
      new
      lease for any portion of the Property nor shall Seller enter into any new
      contract relating to the operation of the Property without Purchaser's consent
      unless the same may be cancelled on the Closing Date without cost to Purchaser.
      

    

    Section
      8.  Broker

    

    Purchaser
      and Seller represent to each other that they have dealt with no agent or broker
      who in any way has participated as a procuring cause of the sale of the
      Property, except UGL Equis, who represented Seller, and Remax Sales, who
      represented Purchaser. Upon Closing, Seller shall pay a commission to UGL Equis
      in the amount of four percent (4%) of the Purchaser Price and shall pay a
      commission to Remax Sales in the amount of two percent (2%) of the Purchaser
      Price. Subject to the foregoing, each party represents and warrants to the
      other
      that the representing party has dealt with no real estate broker, agent or
      finder other than the parties described above in connection with this
      transaction, and that there is no commission, charge or other compensation
      due
      on account thereof. Purchaser and Seller each agree to defend, indemnify and
      hold harmless the other against and from any inaccuracy in such party’s
      representation. The provisions of this Section
      8
      shall
      survive the Closing and any termination of this Agreement.

    

    Section
      9.  Representations
      and Warranties

    

    9.1
       Limitations
      on Representations and Warranties.
      Purchaser agrees and acknowledges that, except as set forth in Section
      9.2
      below,
      neither Seller nor any agent, attorney, employee or representative of Seller
      has
      made any representation whatsoever regarding the subject matter of this sale,
      or
      any part thereof, including (without limiting the generality of the foregoing)
      representations as to the physical nature or condition of the Property or the
      capabilities thereof, and that Purchaser, in executing, delivering and/or
      performing this Agreement, does not rely upon any statement and/or information
      to whomever made or given, directly or indirectly, orally or in writing, by
      any
      individual, firm or corporation. Purchaser agrees to take the Property
      "AS
      IS,"
      as of
      the Effective Date, reasonable wear and tear, minor damage caused by the removal
      of any personal property or fixtures not included in this sale, excepted. SELLER
      MAKES NO REPRESENTATIONS OR WARRANTIES AS TO THE PHYSICAL CONDITION OF THE
      PROPERTY, THE FINANCIAL CONDITION OR VIABILITY OF THE PROPERTY, OR THE
      SUITABILITY THEREOF FOR ANY PURPOSE FOR WHICH PURCHASER MAY DESIRE TO USE IT.
      SELLER EXPRESSLY DISCLAIMS ANY WARRANTIES OF MERCHANTABILITY AND/OR FITNESS
      FOR
      A PARTICULAR PURPOSE AND ANY OTHER WARRANTIES OR REPRESENTATIONS AS TO THE
      PHYSICAL CONDITION OF THE PROPERTY. PURCHASER, BY ACCEPTANCE OF THE DEED, AGREES
      THAT IT HAS SUFFICIENT OPPORTUNITY UNDER THIS AGREEMENT TO INSPECT THE PROPERTY
      AND ACCEPTS SAME "AS IS" AND "WITH ALL FAULTS".

    

    9.2
       Seller’s
      Representations and Warranties.
      Seller
      makes the following representations and warranties and agrees that Purchaser's
      obligations under this Agreement are conditioned upon the truth and accuracy
      of
      such representations and warranties, both as of this date and as of the Closing
      Date:

    

    (a) Seller
      has the power and authority to enter into this Agreement and convey Seller's
      interest in the Property to Purchaser; and

    

    (b) To
      the
      best of Seller's knowledge, Seller has received no written notice of any
      existing or pending litigation, administrative proceeding, violation of law
      or
      condemnation or sale in lieu thereof, that would affect any portion of the
      Property; and

    

    (c) To
      the
      best of Seller's knowledge, no approvals or consents by third parties or
      governmental authorities are required in order for Seller to consummate the
      transactions contemplated by this Agreement; and  

    

    (d) Seller
      is
      not a foreign person within the meaning of Section 1445(f)(3) of the Internal
      Revenue Code of 1986.

    

    9.3
       Seller's
      Knowledge.
      Whenever the term "to the best of Seller's knowledge" is used in this Agreement
      or in any representations and warranties given to Purchaser at Closing, such
      knowledge shall be the actual knowledge of Timothy J. Tumminello (the
      "Key Personnel").
      Seller shall have no duty to conduct any further inquiry in making any such
      representations and warranties, and no knowledge of any other person shall
      be
      imputed to the Key Personnel. 

    

    9.4 Purchaser's
      Representations and Warranties.
      Purchaser represents and warrants to Seller that:

    

    (a) Purchaser
      has the power and authority to enter into this Agreement and to purchase the
      Property; and

    

    (b) The
      purchase of the Property contemplated by this Agreement is not subject to any
      financing contingency and Purchaser has the financial strength and ability
      to
      close on the purchase of the Property at the time and on the terms set forth
      in
      this Agreement; and 

    

    (c) No
      approvals or consents by third parties or by governmental authorities are
      required in order for Purchaser to consummate the transactions contemplated
      hereby.

    

    9.5 Survival.
      None of
      the representations and warranties contained in this Agreement shall survive
      the
      Closing of this transaction unless expressly stated otherwise. 

    

    Section
      10. Non-Liability
      of Seller

    

    Neither
      Seller nor any partner of Seller shall, by entering into this Agreement, become
      liable for any costs or expenses incurred by Purchaser and arising subsequent
      to
      the Closing Date. Except for the covenants, representations and warranties
      which
      expressly survive Closing, by proceeding to Closing with respect to the
      Property, Purchaser shall be deemed to have (i) acknowledged that all conditions
      precedent to the performance of each party’s obligations under this Agreement
      have been satisfied or waived and (ii) released any claims or causes of action
      against Seller with respect to the existence of any Hazardous Substances
      (defined below) on or affecting the Property on or prior to the Closing Date.
      “Hazardous
      Substances,”
as
      used in this Agreement, means any toxic or hazardous waste, pollutants or
      substances, including without limitation, petroleum products or by-products,
      asbestos (irrespective of whether or not encapsulated) and substances defined
      or
      listed as hazardous substances or toxic substances or similarly identified
      in or
      pursuant to the Comprehensive Environmental Response, Compensation and Liability
      Act of 1980, as amended, 41 U.S.C. Section 9601, et seq., hazardous materials
      identified in or pursuant to the Hazardous Materials Transportation Act, 49
      U.S.C. Section 1802, et seq., hazardous waste identified in or pursuant to
      the
      Resource Conservation and Recovery act of 1976, as amended, 15 U.S.C. Section
      2601, et seq., or any hazardous or toxic substance or pollutant regulated under
      any other applicable federal or local environmental law. This provisions of
      this
Section
      10
      shall
      survive the Closing.

    

    Section
      11. Assignment

    

    This
      Agreement may not be assigned by Purchaser without the written consent of
      Seller, which consent may be withheld in Seller’s sole and absolute discretion.
      In any event, no assignment shall relieve Purchaser of any of its obligations
      under this Agreement. Purchaser may, however, designate another entity as the
      “grantee” under the Deed from Seller at Closing. Notwithstanding the above,
      Purchaser may assign this Agreement to an entity in which either Purchaser
      or
      any member of Purchaser is an owner, without Seller’s prior written consent but
      with written notice to Seller. In any event, no assignment shall relieve
      Purchaser of any of its obligations under this Agreement. Purchaser may
      designate another entity as the “grantee” under the Deed from Seller at
      Closing.

    

    Section
      12. Notices

    

    All
      notices under this Agreement or required by law shall be hand delivered, sent
      by
      email (to be confirmed by hand delivery or overnight delivery) or sent via
      any
      nationally recognized commercial overnight carrier with provisions for receipt,
      addressed to the parties at their respective addresses set forth below or as
      they have specified by written notice delivered in accordance with this
      Section:

    

    PURCHASER:  D
&
R
      REALTY II, LLC

    1001
      S.
      Lakewood Street

    Baltimore,
      Maryland 21224

    Attn:
      Raymond Jackson

    Email:
      RJackson@stonewalldevelopment.net

    

    SELLER:  I.
      C.
      Isaacs & Company Limited Partnership

    3840
      Bank
      Street

    Baltimore,
      MD 21224-2522

    Attn:
      Timothy J. Tumminello

    Email:
      ttumminello@icisaacs.com

    

    With
      a
      copy to:  Whiteford,
      Taylor & Preston L.L.P.

    Seven
      St.
      Paul Street

    Baltimore,
      Maryland 21202-1636

    Attn:
      John P. Evans, Esq.

    Email:
      jevans@wtplaw.com

    

    Delivery
      will be deemed complete upon actual receipt or refusal to accept delivery.
      

    

    Section
      13. Expenses

    

    Seller
      shall pay its own attorney's fees and expenses, one-half of the state and county
      transfer taxes and recordation stamp taxes for the Deed, one-half of the
      recording charges for the Deed and all commissions to the brokers specified
      in
Section
      8.
      All
      other costs and expenses related to the transaction or this Agreement, including
      but not limited to all of Purchaser's attorneys' fees and expenses, one-half
      of
      the state and county transfer taxes and recordation stamp taxes for the Deed,
      one-half of the recording charges, and any costs or fees incurred in connection
      with the Contingency Period, a survey or Title Report or Title Policy, shall
      be
      paid by Purchaser, notwithstanding any local practice to the contrary. Purchaser
      shall be responsible for all filings and expenses related thereto under FIRREA,
      and similar laws. Except
      as
      provided in the Lease, all charges, if any, for water, sewer service,
      electricity, telephone service and other public utility services furnished
      to
      any or all of the Property being acquired by Purchaser from the Effective Date
      to the Closing Date shall be adjusted between Seller and Purchaser as of the
      Closing Date. 

    

    Section
      14.  Lease 

    

    During
      the Feasibility Period, Seller and Purchaser shall agree on the final form
      of
      the Lease, which shall be based upon the form attached as Exhibit
      C.
      At
      Closing, Seller and Purchaser will enter into the Lease, pursuant to which
      Seller shall lease the Property after Closing for a term of three (3) months,
      plus an option period, as more fully described in such Lease. In addition to
      customary terms and conditions, the Lease shall include the following
      terms:

    

    (a) Term
      of
      three (3) months from the Closing Date (the “Initial
      Term”),
      with
      one (1) option for Seller to extend the term for up to an additional three
      (3)
      months (the “Extension”)
      upon
      written notice to Purchaser not less than 30 days prior to the end of the
      Initial Term.

    

    (b) During
      the Initial Term, Seller shall pay rent on a monthly basis in an amount equal
      to
      the cost of insurance and real estate taxes applicable to the Initial Term
      (for
      example, 1/12 of any annual premium would be payable each month).

    

    (c) During
      the Extension, Seller shall pay rent on a monthly basis in an amount equal
      to
      the cost of insurance and real estate taxes applicable to the Extension plus
      an
      amount equal to the monthly interest payable by Purchaser on its purchase money
      financing, based on a maximum principal amount of $630,000, at an annual
      interest rate of no more than 8 %, amortized over not less than 20 years (that
      is, the actual interest payable up to a maximum of $5,275 per
      month).

    

    (d) During
      the term of the Lease, Seller shall pay for all utility services used by Seller
      at the Property, including but not limited to gas, electric, telephone, water
      and sewer.

    

    (e) At
      the
      earlier of the end of the term or upon Seller’s vacating the Property, Seller
      shall remove all of Seller’s personalty and leave the Property in broom clean
      condition and in substantially the same condition as on the Closing Date,
      reasonable wear and tear excepted.

    

    Section
      15. Miscellaneous

    

    15.1
       Successors
      and Assigns.
      All of
      the terms and conditions of this Agreement are made binding upon the successors
      and permitted assigns of both parties.

    

    15.2
       Gender.
      Words
      of any gender used in this Agreement shall be held and construed to include
      any
      other gender, and words in the singular number shall be held to include the
      plural, and vice versa, unless the context requires otherwise.

    

    15.3
       Captions.
      The
      captions in this Agreement are inserted only for the purpose of convenient
      reference and in no way define, limit or prescribe the scope or intent of all
      or
      any part of this Agreement.

    

    15.4
       Construction.
      No
      provision of this Agreement shall be construed by any Court or other judicial
      authority against any party to this Agreement by reason of such party's being
      deemed to have drafted or structured such provisions.

    

    15.5
       Entire
      Agreement.
      This
      Agreement (including its Exhibits) constitutes the entire agreement between
      the
      parties relating to the contemplated transaction and there are no other oral
      or
      written promises, conditions, representations, understandings or terms of any
      kind as conditions or inducements to the execution of this Agreement and none
      has been relied upon by either party.

    

    15.6
       Recording.
      The
      parties agree that this Agreement shall not be recorded. If Purchaser causes
      this Agreement or any notice or memorandum of this Agreement to be recorded,
      this Agreement shall be null and void at the option of Seller.

    

    15.7
       No
      Continuance.
      Purchaser acknowledges that there shall be no assignment, transfer or
      continuance of any of Seller's insurance coverage or of any property management
      contract as a part of this transaction.

    

    15.8
       Time
      of Essence.
      Time is
      of the essence in this transaction as to all obligations of the parties to
      this
      Agreement. If any of the dates contemplated in this Agreement as deadlines
      or
      expiration dates should fall on a Saturday, Sunday or national holiday, such
      deadline or expiration date shall be deemed to fall upon the next business
      day.

    

    15.9
       Counterparts
      and Electronic Signatures.
      This
      Agreement may be executed in one or more counterparts, each of which will be
      fully effective without the others and all of which will collectively constitute
      all of this Agreement, and signatures sent by facsimile or by email (in a .pdf
      or comparable mode), and photocopies of such signatures, shall be considered
      and
      treated as originals.

    

    15.10
       Governing
      Law.
      This
      Agreement shall be construed, and the rights and obligations of Seller and
      Purchaser under this Agreement, shall be determined in accordance with the
      laws
      of the State of Maryland.

    

    15.11
       Confidentiality.
      Purchaser and Seller agree that all documents and information concerning the
      Property delivered to Purchaser, including but not limited to the Feasibility
      Documents, the subject matter of this Agreement, and all negotiations will
      remain confidential. Purchaser and Seller will disclose such information only
      to
      those parties required to know it, including without limitation employees of
      either of the parties, consultants and attorneys engaged by either of the
      parties, and prospective tenants or prospective and existing investors and
      lenders, and in public filings that may be required by Purchaser or Seller
      to
      the Securities and Exchange Commission or other public agency or authority.
      

    

    15.12
       WAIVER
      OF JURY TRIAL.
      THE PARTIES SHALL, AND THEY DO, WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING,
      OR COUNTERCLAIM BROUGHT BY EITHER OF THE PARTIES AGAINST THE OTHER ON ANY MATTER
      WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS AGREEMENT, THE
      RELATIONSHIP OF SELLER AND PURCHASER, OR ANY CLAIM FOR INJURY OR DAMAGE IN
      CONNECTION WITH THIS AGREEMENT OR THE PROPERTY.

    

    15.13 Effectiveness
      of Agreement.
      This
      Agreement shall be effective only upon its execution by both Seller and
      Purchaser and the delivery of the executed copies and the Deposit to the Escrow
      Agent. If the Escrow Agent has not received the executed copies of this
      Agreement from Purchaser and the Deposit by 5
      p.m., Eastern time, on March 14, 2008,
      and
      acknowledged such receipt by signing this Agreement, this Agreement shall be
      null and void and of no further effect and neither party shall have a claim
      upon
      the other relating to the sale or purchase of the Property.

    

    IN
      WITNESS WHEREOF, Purchaser and Seller have caused this Agreement to be duly
      executed as of the day and year written below.

    

    EXECUTED
      BY PURCHASER this 14th day of March, 2008.

    

    WITNESS:     PURCHASER:

     

    D
&
R
      REALTY II, LLC,
      

    a
      Maryland limited liability company

    

    

    _____________________________         By:
      /s/ Raymond Jackson    

                          Raymond
      Jackson, Member

    

    

    [SIGNATURE
      PAGE OF SELLER TO FOLLOW]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXECUTED
      BY SELLER this 14 day of March, 2008.

    

    WITNESS:     SELLER:

     

    I.
      C.
      ISAACS & COMPANY LIMITED 

    PARTNERSHIP,

    a
      Maryland limited partnership

    

    

    _/s/
      Eugene C. Wielepski_     By: /s/Timothy J
      Tumminello   

                          Name:Timothy J
      Tumminello   

                  Its:
      Vice President, Controller & Interim Principle Financial
      Officer

    

    

    

    [SIGNATURE
      PAGE OF ESCROW AGENT TO FOLLOW]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Receipt
      of original copies of this Agreement executed by Seller and Purchaser and of
      the
      Deposit is acknowledged at ______ a.m./p.m., Eastern time, this ____ day of
      March, 2008.

    

    

    ESCROW
      AGENT:

     

    FIRST
      MOUNTAIN TITLE, LLC

    

    

    By:
            

    Name:
           

    Title:
            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

    TO

    AGREEMENT
      OF PURCHASE AND SALE

    

    

    Description
      of Land

    

    The
      real
      property located in Baltimore City, State of Maryland, and described as
      follows:

    

    BEGINNING
      for the same at the northwest corner of Bank and Seventh Streets and running
      thence westerly binding on the north side of Bank Street 180 feet to a 20 foot
      alley to be laid out by The Crown Oil and Wax Company, and running thence
      northerly binding on the east side of said 20 foot alley with the use thereof
      in
      common 140 feet to another 20 foot alley there to be laid out by The Crown
      Oil
      and Wax Company parallel with Bank Street, running thence easterly binding
      on
      the south side of said last mentioned 20 foot alley with the use thereof in
      common 180 feet to the west side of Seventh Street, and running thence southerly
      along the west side of Seventh Street 140 feet to the place of
      beginning.

    

    Being
      and
      intended to be, the same property described in the Deed dated December 20,
      1984,
      and recorded among the Land Records of Baltimore City in Liber SEB No. 416,
      folio 586, from I. C. Isaacs & Company, Inc., unto I. C. Isaacs &
Company, L.P. (now known as I. C. Isaacs & Company Limited
      Partnership).

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      B

    TO

    AGREEMENT
      OF PURCHASE AND SALE

    

    Seller's
      Affidavit of Non--Foreign Status

    

    

    STATE
      OF
      MARYLAND  )

    )
      (insert
      date)

    COUNTY
      OF
      BALTIMORE  )

    

    I,
      (proper name of Seller's officer), as (office held) of (Seller), being duly
      authorized to make this affidavit on behalf of (Seller) and being duly sworn,
      do
      depose and say, that:

    

    1. (Seller's)
      taxpayer identification number is ____________________.

    

    2. (Seller)
      is not a "foreign person" within the meaning of Section 1445(f)(3), of the
      Internal Revenue Code of 1954 (the "Code"), as amended; and (Purchaser) is
      not
      required, pursuant to Section 1445 of the Code, to withhold ten percent (10%)
      of
      the amount realized by Seller on the disposition of the Property to
      (Purchaser).

    

    3. I
      understand that I am making this Affidavit under penalty or perjury pursuant
      to
      the requirements of Section 1445 of the Code.

    

    WITNESS:      SELLER:

    I.
      C.
      ISAACS & COMPANY, LIMITED 

    PARTNERSHIP,

    a
      Maryland limited partnership

    

    

    
      _/s/
        Eugene C. Wielepski_     By: /s/Timothy J
        Tumminello   

                            Name:Timothy J
        Tumminello   

                    Its:
        Vice President, Controller & Interim Principle Financial
        Officer

      

    

    SWORN
      TO
      and subscribed before me this ______ day of _______________, 2008.

    

    _______________________________

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      C

    TO

    AGREEMENT
      OF PURCHASE AND SALE

    

    

    Form
      of Lease

    

    

    

    LEASE

    

    THIS
      LEASE is made this ______day of _________, 2008, by D & R REALTY II, LLC, a
      Maryland limited liability company ("Landlord"),
      and
      I. C. ISAACS & COMPANY LIMITED PARTNERSHIP, a Maryland limited partnership
      ("Tenant").

    

    PREMISES:

    

    1. Landlord,
      in consideration of Tenant's covenants, leases to Tenant the entire premises,
      including improvements, located at 3840 Bank Street, Baltimore, Maryland, as
      described more fully in Exhibit
      A
      (the
      "Property").
      

    

    TERMS:

    

    2.
       (a) Initial
      Term.
      The
      initial term of this Lease is three (3) months (the "Initial
      Term").
      The
      Initial Term commences as of the date of Landlord’s completion of the
      acquisition of the Property from Tenant, under the terms of an Agreement of
      Purchase and Sale dated as of March 14, 2008 (the “Purchase
      Agreement”),
      the
      closing date being referred to in this Lease as the "Commencement
      Date."
      The
      Initial Term ends at 11:59 p.m., local time, on the date occurring three (3)
      months after the Commencement Date (the "Termination
      Date")
      unless
      extended pursuant to this Lease.

    

    (b) Renewal
      Terms.
      The
      Tenant may renew this Lease for one (1) extension term of up to three (3) months
      (a "Renewal
      Term").
      Collectively, the Initial Term and the Renewal Term are referred to in this
      Lease as the "Term."
      To
      exercise its right to a Renewal Term, Tenant shall notify Landlord in writing
      at
      least 30 days before the end of the Initial Term and shall specify the new
      Termination Date.

    

    (c) Use.
      Tenant
      may use the Premises for any lawful purpose. 

    

    (d) Surrender.
      At the
      Termination Date, Tenant shall at its expense: (i) promptly surrender to
      Landlord possession of the Premises (including any fixtures or other
      improvements that, under the provisions of Section
      5,
      are
      owned by Landlord) in good order and repair, ordinary wear and tear excepted,
      and broom clean; (ii) promptly remove from the Property Tenant's signs, goods
      and effects, and any machinery, trade fixtures, and equipment that are used
      in
      conducting Tenant's trade or business and are not owned by Landlord; and (iii)
      promptly repair any damage to the Property caused by such removal.

    

    (e) Holding
      Over.
      If
      Tenant occupies the Property after the applicable Termination Date or any
      earlier termination, without obtaining Landlord's prior written consent, then
      the following provisions apply:

    

    
      	 	
              (1)

            	
              Unless
                the parties otherwise agree in writing, the holdover tenancy shall
                be a
                month-to-month tenancy that continues until one party notifies the
                other
                in writing at least 15 days before the end of any calendar month
                that the
                notifying party elects to terminate the month-to-month tenancy at
                the end
                of the next calendar month, in which event the month-to-month tenancy
                shall terminate.

            

    

    

    (2) Notwithstanding
      anything contrary in this Lease, if Landlord has not consented in writing to
      Tenant's occupancy, then the Rent for each month of the month-to-month tenancy
      equals 125% of the monthly installment of the then-applicable Base Rent (as
      defined in Section
      3(a)).

    

    

    
      	 	
              (3)

            	
              Except
                for Rent, the month-to-month tenancy shall be upon the same terms
                and
                subject to the same conditions as those set forth in the provisions
                of
                this Lease, except for Tenant’s right to renew this
                Lease.

            

    

    

    RENT:

    

    3. As
      rent
      for the Property (collectively, the "Rent"),
      Tenant shall pay to Landlord the following:

    

    (a) Base
      Rent—Initial Term.
      During
      the Initial Term, Tenant shall pay, on a monthly basis, a base rent (the
      "Base
      Rent")
      equal
      to one-third of the cost of insurance and real estate taxes applicable to the
      Initial Term (that, one-twelfth of the annual cost shall be payable each month).
      On the Commencement Date, Landlord and Tenant shall execute the Base Rent
      Agreement, substantially in the same form as Exhibit
      B
      attached
      to and made a part of this Lease, which shall set forth the Base Rent Tenant
      shall pay each month.

    

    (b)
       Additional
      Rent—Renewal Term.
      During
      the Renewal Term, Tenant shall pay, on a monthly basis, the Base Rent, plus
      an
      amount equal
      to
      the monthly interest payable by Landlord on its purchase money financing for
      the
      Property, based on a maximum principal amount of $630,000, at an annual interest
      rate of no more than 8 %, amortized over not less than 20 years (that is, the
      actual interest payable up to a maximum of $5,275 per month) (the “Renewal
      Term Rent”).

    

    (c) Additional
      Rent.
      During
      this Lease, Tenant shall pay to Landlord additional rent in the amount of any
      payment in any provision of this Lease that accrues while this Lease is in
      effect. Additional rent includes all charges or other amounts that Tenant is
      obligated to pay to Landlord under any of the provisions of this Lease, other
      than the Base Rent and the Renewal Term Rent.

    

    (d) Late
      Payment.
      Each
      Rent payment shall be made promptly when due, without any deduction or set
      off,
      and without demand. If Tenant fails to promptly and fully pay Rent by the
      15th
      day of
      the month, then Tenant shall pay to Landlord as additional rent interest on
      the
      outstanding amount at the rate of 12% per annum.

    

    (e) Miscellaneous.
      The
      Base Rent for the first month of the Initial Term shall be due and payable
      on
      the Commencement Date. Each payment of Base Rent thereafter shall be due and
      payable on the same day of the month as the date on which the Commencement
      Date
      falls. For example, if the Commencement Date is August 15, the Base Rent for
      the
      second month would be due and payable on September 15. All Rent payable under
      this Lease, together with all statements, notices, etc. shall be forwarded
      to
      the Landlord, 1001 S. Lakewood Street, Baltimore, Maryland 21224. Tenant
      covenants with Landlord to pay, without prior demand, the specified installments
      of Rent and additional rent at the time and in the manner provided in this
      Lease.

    

    USE
      AND ENVIRONMENTAL REQUIREMENTS:

    

    4. (a) Tenant
      covenants and agrees to make no unlawful or offensive use of the Property and
      to
      comply with all statutes, ordinances, rules, orders, regulations, and
      requirements of federal, State, and local governments and applicable insurance
      governing bodies. Tenant shall occupy the Property in full compliance with
      all
      federal, State, and local laws.

    

    (b) The
      term
      "Hazardous
      Substances"
      as used
      in this Lease means pollutants, petroleum, contaminants, infectious waste,
      asbestos, radioactive materials, polychlorinated biphenyls (PCBs), toxic or
      hazardous wastes, or any other substances, the removal of which is required
      or
      the use of which is restricted, prohibited, or penalized by any "Environmental
      Law,"
      including any federal, state, or local law, rule, regulation, or ordinance
      relating to pollution or protection of the environment. Tenant shall comply
      with
      all Environmental Laws in its use of the Property, including, without
      limitation, the obligation to obtain and maintain in effect and comply with
      all
      requisite permits and reporting and notification requirements. 

    

    (c) Tenant
      agrees to the following: 

    

    
      	 	
              (i)

            	
              no
                activity will be conducted on the Property that will produce or cause
                the
                release of any Hazardous Substance, except for such activities that
                are
                part of the ordinary course of Tenant's business activities (the
                "Permitted
                Activities"),
                provided the Permitted Activities are conducted in accordance with
                all
                Environmental Laws; 

            

    

    

    
      	 	
              (ii)
                

            	
              the
                Property will not be used in any manner for the storage of any Hazardous
                Substances except for the temporary storage of such materials that
                are
                used or produced in the ordinary course of Tenant's business (the
                "Permitted
                Materials")
                provided such Permitted Materials are properly stored in a manner
                and
                location and are properly disposed of in a manner meeting all
                Environmental Laws; 

            

    

    

    
      	 	
              (iii)
                

            	
              Tenant
                will not permit any Hazardous Substances to be brought onto the Property
                (except for the Permitted Materials), and if brought or found on
                the
                Property and attributable to Tenant, Tenant shall remove them immediately,
                and diligently undertake all required cleanup and disposal procedures
                in
                accordance with all Environmental Laws.

            

    

    

    IMPROVEMENTS:

    

    5. (a) Acceptance
      of Possession.
      By its
      assumption of possession of the Property on the Commencement Date, Tenant shall
      for all purposes of the provisions of this Lease be deemed to have accepted
      the
      Property and acknowledged the Property to be in the condition called for in
      this
      Lease.

    

    (b) By
      Tenant.
      Tenant
      may not make any alteration, addition, or improvement to the Property without
      first obtaining Landlord's written consent (which, in the case of non-structural
      alterations, additions, and improvements only, may not unreasonably be
      withheld). If Landlord consents to any such proposed alteration, addition,
      or
      improvement, it shall be made at Tenant's sole expense (and Tenant shall hold
      Landlord harmless from any cost incurred on account thereof) and in accordance
      with the terms of Section
      11
      of this
      Lease. Landlord may elect whether to take title to any alterations, additions,
      or improvements (other than trade fixtures or equipment which may be removed
      by
      Tenant) or require Tenant to remove any alterations, additions, or improvements
      upon the expiration of the Term. Tenant shall make all alterations, additions,
      or improvements at such time and in such manner so as not to interfere with
      the
      use and enjoyment of the remainder of the Property by any other tenant. Any
      improvements made to the Property by Tenant shall be made only in a good and
      workmanlike manner.

    

    ASSIGNMENT
      AND SUBLETTING:

    

    6. Upon
      written notice to Landlord, Tenant may assign its interest in or sublet the
      Premises in whole or in part without Landlord's prior written consent. If any
      or
      all of the Premises is sublet or assigned, then Tenant shall continue to be
      and
      remain liable to Landlord for the performance of all of its obligations,
      covenants, and conditions of this Lease. 

    

    MAINTENANCE
      AND REPAIR:

    

    7. (a) By
      Landlord.
      Landlord shall be responsible for the structural elements of the Property,
      including exterior walls, foundation, and support columns, as well as any
      capital improvements to the Property. Additionally, Landlord shall be
      responsible for the roof structure, including the roof membrane, deck, and
      skylights and shall keep the Property free of roof leaks. Landlord shall also
      be
      responsible for the repair and maintenance of the parking lot, for all
      equipment, fixtures, and appurtenances; fences, sidewalks, and grounds; wiring,
      and electrical fixtures; skylights; plumbing, heating, and air-conditioning
      installations; windows, doors, window and door glass, jambs, dock bumpers,
      and
      all glazing in the Property. 

    

    (b) By
      Tenant.
      Except
      for those items for which Landlord is responsible and for damages arising from
      Landlord's negligent acts, Tenant shall maintain, repair, and keep, at Tenant's
      own cost and expense, the interior of the Property. Tenant shall be responsible
      for all lawn cutting, snow removal, common area lighting, and miscellaneous
      painting (as needed) for the Property.

    

    If
      Tenant
      fails, after 15 days' written notice from Landlord, to keep the Property in
      good
      condition and repair, or to commence and continuously prosecute required
      repairs, Landlord may, at its option, enter upon the Property at all reasonable
      hours to make any necessary and reasonable repair that Tenant has failed to
      make. Upon demand, Tenant shall reimburse Landlord for any commercially
      reasonable expense incurred by Landlord. Any such money expended by Landlord
      shall be deemed additional rent, and collected as such by Landlord. All rights
      given to Landlord by this Section are in addition to any other right or remedy
      of Landlord set forth in this Lease. 

    

    (c) Compliance
      With Laws.
      At its
      own expense, Landlord shall promptly comply with and do all things required
      by
      any notice served upon it, or upon Tenant, by the City of Baltimore (including
      its health department, building engineer's office, and department of public
      works), the State of Maryland, and the United States, or any department or
      agency of the county, State, or United States, unless resulting solely from
      Tenant's use or occupancy of the Property, or from any alteration, addition,
      or
      change that may be made to the Property by Tenant under the provisions of this
      Lease. Tenant covenants and agrees to comply in all material respects with
      all
      federal, State, and local laws, ordinances, regulations, rules, and notices
      and
      with the rules and regulations of the applicable insurance governing body,
      and
      shall be responsible for the proper observance of and compliance with the same
      in, relating to Tenant’s use of the Property.

    

    UTILITIES:

    

    8. (a) Tenant
      shall pay for water, sewerage, fuel, gas, oil, electricity, power, materials,
      and other services or utilities that Tenant uses in or about the Property during
      the Term of this Lease. If Landlord is charged with any cost required to be
      paid
      by Tenant as set forth in this Section
      8(a),
      then
      Tenant shall immediately pay to Landlord such cost as additional rent.

    

    (b) Landlord
      is not liable to Tenant, in damages or otherwise, for any interruption in the
      service of water, electricity, gas, heating, air conditioning, or other
      utilities or services caused by any cause beyond Landlord's reasonable control,
      and any such interruption of less than five (5) days does not entitle Tenant
      to
      an abatement of any Rent due or constitute a termination of this Lease or an
      eviction of Tenant.

    

    INSURANCE:

    

    9. (a) Landlord's
      Insurance.
      Landlord shall maintain the following insurance coverage (the “Insurance
      Costs”)
      in
      commercially reasonable amounts throughout the Term: casualty with extended
      risk
      coverage for 100% of the replacement of the improvements located on the
      Property, excluding Tenant's fixtures and personal property, liability, rental
      loss and abatement, flood, earthquake, lessor's risk, and any other commercially
      reasonable and customary insurance for similar facilities. The deductibles
      on
      all insurance obtained by Landlord shall be commercially reasonable.

    

    (b) Tenant's
      Insurance.
      Tenant
      shall procure and carry during the Term a public liability insurance policy
      for
      at least $1,000,000 per occurrence and $2,000,000 combined single limit for
      bodily injury and property damage insured against all liability of Tenant and
      its authorized representatives arising out of or in connection with Tenant's
      use
      or occupancy of the Property, naming Landlord as an additional
      insured.

    

    FIXTURES
      AND EQUIPMENT:

    

    10. All
      trade
      fixtures and equipment installed by Tenant are the property of Tenant and may
      be
      removed by Tenant upon the expiration or termination of this Lease; provided,
      however, Tenant shall at its own cost and expense promptly repair any injury
      or
      damage to the Property resulting from the removal and shall restore the Property
      to substantially the same condition immediately preceding such installation.
      All
      alterations, additions, improvements, and changes and all installation of trade
      fixtures and equipment by the Tenant shall be made in accordance with the rules,
      regulations, and ordinances of the City of Baltimore, its agencies or
      departments.

    

    CONDEMNATION
      AND CASUALTY:

    

    11. If
      during
      the Term of this Lease any part of the Property is rendered untenantable by
      condemnation by public authority, or by fire or other casualty, then Tenant
      may
      terminate this Lease or, at Tenant’s option, a proportionate part of the Rent
      shall be abated, according to the extent of the untenantability. If Tenant
      elects to remain a tenant, Landlord shall use the proceeds from such
      condemnation or from the applicable casualty insurance to repair the Property
      or
      to make it tenantable again. 

    

    If
      the
      entire Property or a substantial part of the Property is rendered untenantable
      by condemnation by public authority, or by fire or other casualty, then either
      Landlord or Tenant may terminate this Lease by written notice to the other,
      effective as of the date of such condemnation or casualty. 

    

    All
      compensation awarded for the taking of the fee and leasehold shall belong to
      and
      be the property of Landlord. Nothing prevents Tenant from claiming, proving,
      and
      receiving awards for moving expenses, or removal of trade fixtures, or loss
      of
      business goodwill.

    

    SUBROGATION:

    

    12. Each
      insurance policy carried by Landlord or Tenant insuring the Property as well
      as
      the contents of the Property (including trade fixtures, equipment, and
      merchandise) against loss by fire or any of the casualties covered by standard
      extended coverage shall be written in such a manner so as to provide that the
      insurer waives all right of recovery by way of subrogation against Landlord
      or
      Tenant, as the case may be, in connection with any loss or damage covered by
      the
      policy.

    

    DEFAULT:

    

    13.
       (a) By
      Tenant.
      An
“Event
      of Default”
shall
      have occurred:

    

    
      	 	
              (i)

            	
              if
                Tenant fails to pay any Rent within fifteen days of receiving written
                notice from Landlord, then Landlord may make distress for such Rent
                without notice, and recover all damages, costs, and reasonable attorneys'
                fees sustained and incurred by it;

            

    

    

    (ii) if
      any
      legal process is issued for the purpose of attaching or taking in execution
      any
      of Tenant's chattels located on the Property or Tenant's interest in the
      Property created by this Lease and such process is not dismissed or bonded
      within 30 days after its issuance;

    

    
      	 	
              (iii)

            	
              if
                Tenant is adjudicated bankrupt or insolvent, or if a receiver or
                trustee
                of Tenant is appointed for its business or property, or if Tenant
                applies
                for the benefit of any provision of the federal bankruptcy law;
                or

            

    

    

    
      	 	
              (iv)

            	
              if
                Tenant fails to fulfill any other obligation under this Lease or
                breaches
                a covenant contained in this Lease and the obligation is not fulfilled
                or
                the breach remedied within 30 days of receiving written notice from
                Landlord.

            

    

    

    (b) Landlord’s
      Remedies.
      Upon
      the occurrence of an Event of Default, Landlord may, at its option terminate
      this Lease and re-enter the Property.

    

    (c) By
      Landlord.
      A
“Landlord
      Default”
shall
      have occurred:

    

    (i) if
      Landlord shall breach, in any material respect, any representation or warranty
      made by Landlord in this Lease;

    

    (ii) if
      Landlord shall fail to observe or perform, within any applicable time period
      provided therefor in this Lease, any of the covenants, conditions or provisions
      of this Lease to be observed or performed by Landlord; or

    

    (iii) if
      Landlord shall fail to observe or perform any of the covenants, conditions
      or
      provisions of this Lease, which failure is not addressed within the scope of
      clauses (c)(i) or (c)(ii) of this Section and such failure shall continue for
      a
      period of 30 days.

    

    (d) Tenant’s
      Remedies
      In the
      event of any such Landlord Default, Tenant shall be entitled to such rights
      and
      remedies as may be provided by applicable law. In addition to such rights and
      remedies as may be provided by law, Rent shall abate upon the occurrence and
      during the continuance of any event or circumstance which constitutes, or which
      with notice and the passage of time would constitute, a Landlord Default which
      materially interferes with Tenant’s use and enjoyment of the
      Property.

    

    SUBORDINATION:

    

    14. All
      of
      Tenant's rights under this Lease are and shall be subject and subordinate to
      the
      lien of any mortgage or deed of trust placed on the Property or any part
      thereof, except the Tenant's property or trade fixtures, and to any and all
      renewals, modifications, consolidations, replacements, extensions, or
      substitutions of any such mortgage or deed of trust (all of which are termed
      the
      "mortgage"
      or
      "mortgages").
      The
      subordination is automatic, without the execution of any further subordination
      agreement by Tenant. If, however, a written subordination agreement, consistent
      with this provision, is required by a mortgagee, Tenant shall execute,
      acknowledge, and deliver it promptly. If Tenant fails to promptly execute,
      acknowledge, and deliver the subordination agreement, then Landlord, as the
      agent or attorney-in-fact of Tenant, may execute it on Tenant's behalf, and
      Tenant irrevocably appoints Landlord its attorney-in-fact for such
      purpose.

    

    ATTORNMENT
      AND NONDISTURBANCE:

    

    15. (a) If,
      at
      any time during the Term of this Lease, a mortgage to which this Lease is
      subordinate is foreclosed, then Tenant agrees at the election and upon demand
      of
      any owner (other than Landlord) of the Property, or of any mortgagee in
      possession, or of any holder of a leasehold affecting the Property, or of any
      purchaser at foreclosure, to attorn, from time to time, to any such owner,
      mortgagee, holder, or purchaser upon the terms and conditions set forth in
      this
      Lease for the remainder of the Term. Tenant is not obligated to attorn unless,
      if Tenant requests in writing, such holder, owner, mortgagee, or purchaser
      shall
      execute and deliver to Tenant an instrument by which the holder, owner,
      mortgagee, or purchaser agrees that so long as Tenant performs all the terms,
      covenants, and conditions of this Lease on Tenant's part to be performed,
      Tenant's possession under the provisions of this Lease shall not be disturbed
      by
      such holder, owner, mortgagee, or purchaser.

    

    (b) The
      foregoing provisions inure to the benefit of any owner, mortgagee, holder,
      or
      purchaser and apply notwithstanding that this Lease may terminate upon the
      termination of any leasehold estate or upon the foreclosure, and shall be
      self--operative upon any demand, without requiring any further instrument to
      give effect to the provisions. Tenant, however, upon demand of any owner,
      mortgagee, holder, or purchaser, agrees to execute, from time to time, an
      instrument in confirmation of the foregoing provisions, satisfactory to Tenant
      and to any owner, mortgagee, holder, or purchaser, in which Tenant acknowledges
      the attornment for the remainder of the Term. Nothing contained in this Section
      shall be construed to impair any right otherwise exercisable by any such owner,
      mortgagee, holder, or purchaser.

    

    ESTOPPEL
      CERTIFICATES:

    

    16. Each
      party agrees, from time to time, within ten days after request of the other
      party, to execute and deliver to the requesting party or its designee any
      estoppel certificate in form and substance satisfactory to both parties, stating
      that this Lease is in full force and effect, the date to which Rent has been
      paid, that the requesting party is not in default (or specifying in detail
      the
      nature of such default), the termination date of this Lease, and such other
      matters pertaining to this Lease as may reasonably be requested.

    

    QUIET
      ENJOYMENT

    

    17. Tenant,
      upon the payment of Rent and the performance of all the terms of this Lease,
      shall at all times during the Term peaceably and quietly enjoy the Property
      without any disturbance from Landlord or any other person claiming through
      Landlord.

    

    INSPECTION:

    

    18. Tenant
      agrees that Landlord and its agents may enter upon the Property at all
      reasonable times to inspect the Property, or to make any changes or alterations
      or repairs that Landlord considers necessary for the protection, improvement,
      or
      preservation of the Property, or to make changes in the plumbing, wiring,
      meters, or other equipment, fixtures, or appurtenances of the Property, or
      to
      post any notice provided for by law, or otherwise to protect any and all rights
      of Landlord, so long as Landlord does not reasonably interfere with Tenant’s use
      of the Property. Landlord may erect and maintain all necessary or proper
      scaffolding or other structures for the making of such changes, alterations,
      or
      repairs (provided the entrance to or use of the Property is not blocked).
      Landlord is not liable for consequential damages sustained by Tenant, and Tenant
      is not entitled to any abatement of Rent by reason of the exercise by Landlord
      of any rights reserved by this Section unless Tenant cannot use the Property
      for
      Tenant’s intended purpose, as determined by Tenant in its reasonable discretion.
      Tenant further agrees that at any time after 60 days prior to the termination
      of
      this Lease, Landlord may place any usual or ordinary "For Rent" or "For Lease"
      signs on the Property.

    

    MISCELLANEOUS:

    

    19. (a) This
      Lease and all of the covenants, conditions, and provisions set forth in this
      Lease inures to the benefit of and is binding on the successors and assigns
      of
      the respective parties.

    

    (b) This
      Lease shall be construed and interpreted under the laws of
      Maryland.

    

    (c) The
      waiver by either party or the breach of any covenant or condition of this Lease,
      to be performed by the other party, or the failure of either party to insist
      upon strict performance of any covenant or condition by the other party to
      be
      performed, shall apply to the particular incident case only, and shall not
      be
      deemed to abrogate such covenant or condition nor be deemed as a waiver of
      any
      continuing or subsequent breach thereof, but such covenant or condition shall
      continue and remain in full force and effect.

    

    (d) No
      oral
      statement or prior written matters shall have any force or effect after the
      signing of this Lease. All such matters shall be merged into this Lease and
      be
      superseded by this Lease. Tenant agrees that it is not relying on any
      representations or agreements other than those contained in this Lease. This
      Lease shall not be modified except by a writing signed by all
      parties.

    

    (e)
       Landlord
      and Tenant each represents and warrants to the other that neither of them has
      employed any broker in procuring or carrying on any negotiations relating to
      this Lease, except UGL Equis, who represented Tenant, and Remax Sales, who
      represented Landlord. No commissions are payable as a result of this Lease.
      Landlord and Tenant shall indemnify and hold each other harmless from any loss,
      claim or damage relating to the breach of this representation and warranty.
      

    

    NOTICES:

    

    20. All
      notices required or permitted to be given under the provisions in this Lease
      shall be in writing and shall be deemed to be properly given if delivered (a)
      by
      hand, or (b) by telecopy, or (c) by a nationally recognized delivery service.
      Notice shall be deemed to be given on the date of delivery:

    

    To
      the
      Landlord: D
&
R
      Realty II, LLC

    1001
      S.
      Lakewood Street

    Baltimore,
      Maryland 21224

    Attention:
      Raymond Jackson

    

    To
      the
      Tenant:  I.
      C.
      Isaacs & Company Limited Partnership

    3840
      Bank
      Street

    Baltimore,
      MD 21224-2522

    Attention:
      Timothy J. Tumminello

    

    With
      a
      copy to:  Whiteford,
      Taylor & Preston L.L.P.

    Seven
      St.
      Paul Street

    Baltimore,
      Maryland 21202-1636

    Attention:
      John P. Evans, Esq.

    

    Either
      party may, at any time or from time to time, designate by written notice to
      the
      other party a substitute address and thereafter all notices to such party shall
      be sent in accordance with the above.

    

    [THE
      REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    WITNESS
      the signature of the duly authorized member and seal of Landlord, and the
      signature of the duly authorized officer and seal of Tenant, as of the day
      and
      year first above written.

    

    

    WITNESS: LANDLORD:

    D
&
R
      REALTY II, LLC

    

    

    ___________________________  By:____________________________(SEAL)

    Raymond
      Jackson, Member

    

    

    WITNESS: TENANT:

    I.
      C.
      ISAACS & COMPANY LIMITED PARTNERSHIP

     

    

    ___________________________  By:____________________________(SEAL)

    Name:
       

    Title: 

     

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

     

    

    EXHIBIT
      A

    DESCRIPTION
      OF PREMISES

    

    The
      real
      property located in Baltimore City, State of Maryland, and described as
      follows:

    

    BEGINNING
      for the same at the northwest corner of Bank and Seventh Streets and running
      thence westerly binding on the north side of Bank Street 180 feet to a 20 foot
      alley to be laid out by The Crown Oil and Wax Company, and running thence
      northerly binding on the east side of said 20 foot alley with the use thereof
      in
      common 140 feet to another 20 foot alley there to be laid out by The Crown
      Oil
      and Wax Company parallel with Bank Street, running thence easterly binding
      on
      the south side of said last mentioned 20 foot alley with the use thereof in
      common 180 feet to the west side of Seventh Street, and running thence southerly
      along the west side of Seventh Street 140 feet to the place of
      beginning.

    

    Being
      and
      intended to be, the same property described in the Deed dated December 20,
      1984,
      and recorded among the Land Records of Baltimore City in Liber SEB No. 416,
      folio 586, from I. C. Isaacs & Company, Inc., unto I. C. Isaacs &
Company, L.P.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    EXHIBIT
      B

    BASE
      RENT AGREEMENT

    

    THIS
      BASE
      RENT AGREEMENT (this "Agreement")
      is
      dated this _____day of _________, 2008, D & R REALTY II, LLC, a Maryland
      limited liability company ("Landlord"),
      and
      I. C. ISAACS & COMPANY, LP, a Maryland limited partnership ("Tenant").

    

    Landlord
      and Tenant entered into a Lease dated ________________, 2008 (the "Lease"),
      pursuant to which Landlord leased to Tenant the Property located at 3840 Bank
      Street, Baltimore, Maryland, as more particularly described in the Lease. For
      the purpose of establishing the Rent, the parties execute this
      Agreement.

    

    NOW,
      THEREFORE, Landlord and Tenant agree as follows:

    

    1. The
      monthly Base Rent payable under the Lease during the Initial Term shall be
      __________________ ($___________), representing ________________ ($___________)
      in insurance costs and _______________ ($___________) in real estate taxes
      for
      each month of the Initial Term.

    

    2. The
      Additional Rent payable under the Lease during the Renewal Term shall be
      _____________________ ($__________), payable in addition to the Base
      Rent.

    

    3. This
      Agreement is solely intended to constitute a confirmation by the parties to
      this
      Lease of the rent payable under the Lease, and is not intended to amend or
      otherwise modify the Lease except as expressly set forth in this Lease. The
      parties acknowledge that the Lease is in full force and effect.

    

    IN
      WITNESS WHEREOF, the parties have duly executed this Agreement for the purposes
      set forth above.

    

    WITNESS/ATTEST: LANDLORD:
      D & R REALTY II, LLC

    

    

    ___________________________  By:____________________________(SEAL)

    Name:

    Title:

    

    WITNESS/ATTEST: TENANT:
      I. C. ISAACS & COMPANY, LP

    

    

    ___________________________  By:____________________________(SEAL)

    Name:
      

    Title:
      

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      D

    TO

    AGREEMENT
      OF PURCHASE AND SALE

    

    

    List
      of Feasibility Documents

    

    

    

    
      	·  	
              Service
                agreements with Cranston for HVAC

            

    

    
      	·  	
              Phase
                I environmental study

            

    

    
      	·  	
              Service
                agreement with ADT

            

    

    
      	·  	
              HVAC
                repair invoices

            

    

    
      	·  	
              Utility
                bills (water, gas, electric)

            

    

    
      	·  	
              ADT
                Invoice

            

    

    
      	·  	
              Rosedale
                Roofing contract

            

    

    
      	·  	
              Property
                tax billsex10_34.htm

    
      

    

    Exhibit
10.34

    

    ADDENDUM
TO EMPLOYMENT AND NON-COMPETITION AGREEMENT

    

    This
ADDENDUM TO EMPLOYMENT AND
NON-COMPETITION AGREEMENT (this "Addendum"), dated as
of February 18, 2008, is between The Sheridan Group, Inc., a Maryland
corporation (the "Employer"), and
Robert M. Moore (the "Employee")
(collectively, “the Parties”).

    

    WHEREAS, the Parties entered
into an Employment and Non-Competition Agreement (the “Agreement”) on or about
April 1, 2007; and

    

    WHEREAS, a question has arisen
between the Parties with respect to the application and duration of §§6(e), 7, 8
and 9 of the Agreement; and

    

    WHEREAS, the Parties wish to
enter into this Addendum to clarify their intent and eliminate any ambiguity
with respect to §§6(e), 7, 8 and 9 of the Agreement; and

    

    WHEREAS, it is the intent of
the Parties that all terms and conditions of the Agreement shall continue to
remain in full force and effect, subject to the clarification set forth in this
Addendum.

    

    NOW, THEREFORE, it is hereby
agreed as follows:

    

    1.           The
above recitals are incorporated herein by reference, and are intended to be
binding upon the Parties.

    

    2.           The
Parties acknowledge and agree that it is the mutual intent of the Parties that
the Employee’s rights and remedies upon termination set forth in §6(e) of the
Agreement apply to the termination at any
time of
Employee’s employment by the Employer (and/or the Employer’s successors and/or
assigns) without Cause pursuant to §6(c) or by the Employee with Good Reason
pursuant to §6(d).  Moreover, it is the Parties’ specific intent that
the Employee’s rights and remedies upon termination set forth in §6(e) will
survive the termination of the Agreement.

    

    3.          
The Parties acknowledge and agree that it is the mutual intent of the Parties
that the Employee’s obligations to the Employer (and/or the Employer’s
successors and/or assigns) set forth in §7 (Inventions; Assignment); §8
(Confidential Information); and §9 (Non-Competition) of the Agreement apply to
the termination at any time
of Employee’s employment with Employer (and/or the Employer’s successors
and/or assigns). Moreover, it is the Parties’ specific intent that the
Employee’s obligations to the Employer set forth in §7, §8 and §9 will survive
the termination of the Agreement.

    

    4.          
The Parties each acknowledge and agree that this Addendum is supported by the
consideration set forth in the Agreement, which the Parties acknowledge to be
good and valuable.

    

    IN WITNESS WHEREOF, and
intending to be legally bound hereby, the Parties hereto have caused this
Agreement to be duly executed as of the date and year first above
written.

    

    
      	 
      	
              THE SHERIDAN GROUP,
      INC.

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              By:

            	
              /s/ John A. Saxton

            	 
      
	 
      	 
      	
              John A. Saxton

            	 
      
	 
      	 
      	
              President
      and Chief Executive Officer

            	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	
              /s/ Robert M. Moore

            	 
      
	 
      	 
      	
              Robert M. Moore

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