Document:

AMENDMENT TO LOAN AND SECURITY AGREEMENT

  
 Exhibit 10.63

  
 [Execution] 
  
 AMENDMENT NO. 6 TO LOAN AND SECURITY AGREEMENT 
  
 AMENDMENT NO. 6 TO LOAN AND SECURITY AGREEMENT, dated as of September 30,
2004, entered into by and among Congress Financial Corporation (Florida), a Florida corporation, in its capacity as agent acting for and on behalf of the parties to the Loan Agreement (as hereinafter defined) as lenders (in such capacity,
“Agent”), the parties to the Loan Agreement as lenders (individually a “Lender” and collectively, “Lenders”), Supreme International, Inc., a Delaware corporation (“Supreme”), Jantzen, Inc., a Delaware
corporation (“Jantzen”), Perry Ellis Menswear, Inc., formerly known as Salant Corporation, a Delaware corporation (“Perry Ellis Menswear”), Salant Holding Corporation, a Delaware corporation (“Salant Holding”, and
together with Supreme, Jantzen and Perry Ellis Menswear, each individually a “Borrower” and collectively, “Borrowers”), Perry Ellis International, Inc., a Florida corporation (“Parent”), PEI Licensing, Inc., a Delaware
corporation (“PEI Licensing”), Jantzen Apparel Corp., a Delaware corporation (“Jantzen Apparel”), BBI Retail, L.L.C., a Florida limited liability company (“BBI”), Supreme Real Estate I, LLC, a Florida limited liability
company (“Supreme I”), Supreme Real Estate II, LLC, a Florida limited liability company (“Supreme II”), Supreme Realty, LLC, a Florida limited liability company (“Supreme Realty”), Supreme Munsingwear Canada Inc., a
Canada corporation (“Supreme Canada”), and Perry Ellis Real Estate Corporation, a Delaware corporation (“PE Real Estate”, and together with Parent, PEI Licensing, Jantzen Apparel, BBI, Supreme I, Supreme II, Supreme Realty and
Supreme Canada, each individually a “Guarantor” and collectively, “Guarantors”). 
  
 W I T N E S S E T H : 
  
 WHEREAS, Agent, Lenders, Borrowers and Guarantors have entered into financing arrangements pursuant to which Lenders (or Agent on behalf of Lenders) have
made and may make loans and advances and provide other financial accommodations to Borrowers as set forth in the Loan and Security Agreement, dated October 1, 2002, by and among Agent, Lenders, Borrowers and Guarantors as amended by Amendment No. 1
to Loan and Security Agreement, dated June 19, 2003, Amendment No. 2 to Loan and Security Agreement, dated September 22, 2003, Amendment No. 3 to Loan and Security Agreement dated December 1, 2003, Amendment No. 4 to Loan and Security Agreement
dated February 25, 2004, Amendment No. 5 to Loan and Security Agreement dated July 1, 2004, and as amended hereby (as the same may hereafter be further amended, modified, supplemented, extended, renewed, restated or replaced, the “Loan
Agreement”, and together with all agreements, documents and instruments at any time executed and/or delivered in connection therewith or related thereto, as from time to time amended, modified, supplemented, extended, renewed, restated, or
replaced, collectively, the “Financing Agreements”); and 
  
 WHEREAS, Borrowers and Guarantors have requested that Agent and Lenders extend the term of the Loan Agreement and make certain other amendments to the Loan Agreement and Agent and Lenders are willing to so consent, subject to the terms and
conditions set forth in this Amendment No. 6. 
  

 NOW, THEREFORE, in consideration of the foregoing, the mutual agreements and covenants contained herein,
and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
  
 1. Definitions. 
  
 (a) Additional Definitions. As used herein, the term “Amendment No. 6” shall mean this Amendment No. 6 to Loan and
Security Agreement by and among Agent, Lenders, Borrowers and Guarantors, as the same now exists or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced and the Loan Agreement and the other Financing Agreements
are hereby amended to include, in addition and not in limitation, such definition. 
  
 (b) Amendments to Definitions. 
  
 (i) All references to the term “Applicable Margin” in the Loan Agreement or any other Financing Agreements and each such
reference is hereby amended to mean, at any time, as to the Interest Rate for Prime Rate Loans and the Interest Rate for Eurodollar Rate Loans the applicable percentage (on a per annum basis) set forth below if either (A) the sum of: (1) the
Quarterly Average Excess Availability for the immediately preceding fiscal quarter plus (2) the Excess Cash as of the last day of the immediately preceding fiscal quarter is at or within the amounts indicated for such percentage or (B) the Leverage
Ratio as of the last day of the immediately preceding fiscal quarter (which ratio for this purpose shall be calculated based on the four (4) immediately preceding fiscal quarters) is at or within the levels indicated for such percentage: 

 

											
	 Tier

	  	 Quarterly Average
Excess Availability
plus Excess Cash

	  	 Leverage Ratio

	  	Applicable
Prime
Rate Margin

	 	 	Applicable
Eurodollar
Rate Margin

	 
	 1
	  	Greater than $65,000,000	  	1.75 to 1.00 or less	  	0	%	 	1.60	%
					
	 2
	  	Greater than or equal to $45,000,000 and less than or equal to $65,000,000	  	Greater than 1.75 to 1.00 but equal to or less than 2.00 to 1.00	  	0	%	 	1.80	%
					
	 3
	  	Greater than or equal to $35,000,000 and less than $45,000,000	  	Greater than 2.00 to 1.00 but equal to or less than 3.00 to 1.00	  	0	%	 	2	%
					
	 4
	  	Greater than or equal to $25,000,000 and less than $35,000,000	  	Greater than 3.00 to 1.00 but equal to or less than 4.00 to 1.00	  	.25	%	 	2.25	%
					
	 5
	  	Less than $25,000,000	  	Greater than 4.00 to 1.00	  	.5	%	 	2.50	%

  
 provided, that, (A) the
Applicable Margin shall be calculated and established once each fiscal quarter (commencing with the fiscal quarter ending on October 31, 2004, but with the Applicable 

  

 2 

 
Margin based on the above to be effective as of October 1, 2004) and shall remain in effect until adjusted thereafter at the end of the next quarter and (B)
the Applicable Margin shall be the lower percentage set forth above based on (1) the sum of the Quarterly Average Excess Availability and the Excess Cash as provided above or (2) the Leverage Ratio. 
  
 (ii) The definition of the term “Consolidated Net
Income” is hereby amended to delete the portion of the definition prior to clause (a) thereof and substitute the following therefor: 
  
 “Consolidated Net Income” shall mean, with respect to any Person for any period, the aggregate of the net income (loss) of such
Person and its Subsidiaries, on a consolidated basis, for such period (excluding to the extent included therein any extraordinary or non-recurring gains and extraordinary non-cash charges, including impairment charges to property, plant and
equipment, Intellectual Property or goodwill and non-cash charges related to employee benefits or other management compensation plans and any non-cash compensation charges arising from any grants, issuance or repricing of stock, stock options or
other equity based awards) after deducting all charges which should be deducted before arriving at the net income (loss) for such period and after deducting the Provision for Taxes for such period, all as determined in accordance with GAAP;
provided, that,” 
  
 (iii) The reference to
the amount of “$20,000,000” in the definition of the term “Eligible Factor Receivables” in the Loan Agreement is hereby deleted and the amount of “$30,000,000” substituted therefor. 
  
 (iv) All references to the term “Inventory Loan
Limit” in the Loan Agreement or any of the other Financing Agreements and each such reference is hereby amended to mean $65,000,000. 
  
 (c) Interpretation. For purposes of this Amendment No. 6, unless otherwise defined herein, all capitalized terms used herein which
are defined in the Loan Agreement shall have the meanings given to such terms in the Loan Agreement. 
  
 2. Letter of Credit Accommodations. Section 2.2(b) of the Loan Agreement is hereby deleted in its entirety and the following substituted therefor:

  
 “(b) In addition to any charges, fees or
expenses charged by any bank or issuer in connection with the Letter of Credit Accommodations, Borrowers shall pay to Agent, for the benefit of Lenders, (i) a letter of credit fee at a rate equal to one quarter (1/4 %) percent per annum on the daily
outstanding balance of the Letter of Credit Accommodations consisting of Commercial Letters of Credit for the immediately preceding month (or part thereof), payable in arrears as of the first day of each succeeding month and (ii) a letter of credit
fee at a rate equal to one (1%) percent per annum on the daily outstanding balance of all other Letter of Credit Accommodations for the immediately preceding month (or part thereof), payable in arrears as of the first day of each succeeding month,
except that Agent may, and upon the written direction of Required Lenders shall, require Borrowers to pay to Agent for the benefit of Lenders 

  

 3 

 
such letter of credit fee at a rate equal to two and one quarter (2 1/4%) percent per annum on the daily outstanding balance of the Letter of Credit
Accommodations consisting of Commercial Letters of Credit and at a rate equal to three (3%) percent per annum on the daily outstanding balance of all other Letter of Credit Accommodations for: (A) the period from and after the date of termination
hereof until Agent and Lenders have received full and final payment of all Obligations (notwithstanding entry of a judgment against any Borrower) and (B) the period from and after the date of the occurrence of an Event of Default for so long as such
Event of Default is continuing as determined by Agent. Such letter of credit fee shall be calculated on the basis of a three hundred sixty (360) day year and actual days elapsed and the obligation of Borrowers to pay such fee shall survive the
termination of this Agreement.” 
  
 3. Unused Line
Fee. Section 3.2(a) of the Loan Agreement is hereby deleted in its entirety and the following substituted therefor: 
  
 “(a) Borrowers shall pay to Agent for the ratable benefit of Lenders monthly an unused line fee at a rate equal to the percentage (on
a per annum basis) set forth below calculated upon the amount by which $70,000,000 for the period commencing October 1 of each year and ending on March 31 of the immediately following year, or $50,000,000 for the period commencing on April 1 of each
year and ending on September 30 of such year, exceeds the average daily principal balance of the outstanding Loans and Letter of Credit Accommodations during the immediately preceding month (or part thereof) while this Agreement is in effect and for
so long thereafter as any Obligations are outstanding. Such fee shall be payable on the first day of each month in arrears. The percentage used for determining the unused line fee shall be as set forth below if either (i) the sum of the Quarterly
Average Excess Availability for the immediately preceding fiscal quarter plus the Excess Cash as of the last day of the immediately preceding fiscal quarter is at or within the amounts indicated for such percentage or (ii) the Leverage Ratio as of
the last day of the immediately preceding fiscal quarter (which ratio for this purpose shall be calculated based on the four (4) immediately preceding fiscal quarters) is at or within the levels indicated for such percentage: 
  

								
	 Tier

	  	 Quarterly Average
Excess Availability
plus Excess Cash

	  	 Leverage Ratio

	  	Unused Line
Fee
Percentage

	 
	 1
	  	Greater than $65,000,000	  	1.75 to 1.00 or less	  	.25	%
				
	 2
	  	Greater than or equal to $45,000,000 and less than or equal to $65,000,000	  	Greater than 1.75 to 1.00 but equal to or less than 2.00 to 1.00	  	.25	%
				
	 3
	  	Greater than or equal to $35,000,000 and less than $45,000,000	  	Greater than 2.00 to 1.00 but equal to or less than 3.00 to 1.00	  	.25	%
				
	 4
	  	Greater than or equal to $25,000,000 and less than $35,000,000	  	Greater than 3.00 to 1.00 but equal to or less than 4.00 to 1.00	  	.375	%
				
	 5
	  	Less than $25,000,000	  	Greater than 4.00 to 1.00	  	.375	%

  

 4 

 provided, that, (A) the unused line fee percentage shall be calculated and established once each fiscal
quarter (commencing with the fiscal quarter ending on October 31, 2004, but with the unused line fee percentage based on the above to be effective as of October 1, 2004) and (B) the unused line fee percentage shall be the lower percentage set forth
above based on (1) the sum of the Quarterly Average Excess Availability plus the Excess Cash as provided above or (2) the Leverage Ratio.” 
  
 4. Mergers. Section 9.7(a) of the Loan Agreement is hereby deleted in its entirety and the following substituted therefor: 
  
 “(a) merge into or with or consolidate with any other
Person or permit any other Person to merge into or with or consolidate with it; except that any Borrower may merge with any other Borrower and any Guarantor may merge with any Guarantor or Borrower; provided, that, each
of the following conditions is satisfied: (i) Agent shall have received not less than ten (10) Business Days’ prior written notice of the effective date of such merger, (ii) Agent shall have received, true, correct and complete copies of all
agreements, documents and instruments relating to such merger or consolidation, including, when available, the certificate or certificates of merger to be filed with each appropriate Secretary of State or similar Governmental Authority, foreign or
domestic (with a copy as filed promptly after such filing), (iii) the surviving corporation shall expressly confirm, ratify and assume the Obligations and the Financing Agreements to which it is a party in writing, in form and substance satisfactory
to Agent, and Borrowers and Guarantors shall execute and deliver such other agreements, documents and instruments as Agent may request in connection therewith, (iv) as to any merger of a Guarantor with a Borrower, the Borrower shall be the surviving
corporation, (v) any assets acquired by a Borrower pursuant to a merger of a Guarantor with such Borrower of a type or category that might be included in the calculation of the Borrowing Base of such Borrower shall only be so included subject to
such additional conditions, limitations or other terms as Agent may determine, (vi) the Borrower or Guarantor acquiring any assets as a result of such merger shall acquire such assets subject to the security interest, lien, pledge and any other
interest of Agent in the property so acquired and permitting such merger hereunder or otherwise shall not be deemed to authorize the acquisition of such assets pursuant to such merger free and clear of the security interest, lien, pledge and any
other interest of Agent therein, (vii) the consideration payable by any Borrower in connection with such merger shall be in amounts and form and otherwise on terms satisfactory to Agent, (viii) after giving effect to such merger and as a result
thereof, no Default or Event of Default shall 

  

 5 

 
exist or have occurred, and (ix) in no event shall any Borrower or Guarantor become liable for any Indebtedness or other obligations (contingent or
otherwise) as a result of such merger that it is not otherwise permitted to have hereunder;” 
  
 5. Transfers of Assets. Section 9.7(b) of the Loan Agreement is hereby amended to add a new Section 9.7(b)(xi) at the end thereof as follows:

  
 “(xi) the sale or assignment of any
assets (other than Accounts, Inventory or any other assets at any time considered in the calculation of the Borrowing Base of any Borrower) by a Borrower to another Borrower or the sale or assignment of any assets by a Guarantor or Borrower to
another Guarantor or Borrower, provided, that, as to any such sale or assignment each of the following conditions is satisfied: (A) Agent shall have received not less than ten (10) Business Days’ prior written notice of the
effective date of such sale or assignment, with such information with respect thereto as Agent may require, including a description of the assets to be sold or assigned, the seller or assignor and buyer or assignee, and the consideration for such
transfer, its form and manner and timing of payment, (B) Agent shall have received true, correct and complete copies of all agreements relating to such sale or assignment and such other information with respect thereto as Agent may reasonably
request from time to time, (C) in no event shall such sale or assignment result in any limit or other impairment of the rights of any Borrower or Guarantor (or Agent) to use any Intellectual Property or other assets or create or give rise to any
material liabilities of any Borrower or Guarantor in connection with such sale or assignment, (D) as of the date of any such sale or assignment and after giving effect thereto, no Default or Event of Default shall exist or have occurred and be
continuing, (E) the Borrower or Guarantor to whom such assets are sold or assigned shall acquire such assets subject to the security interest, lien, pledge and any other interest of Agent in the property so sold or assigned and permitting such sale
or assignment hereunder or otherwise shall not be deemed to authorize such sale or assignment free and clear of the security interest, lien, pledge and any other interest of Agent therein, (F) the consideration payable by any Borrower shall be in
amounts and form and otherwise on terms satisfactory to Agent, (G) the Borrower or Guarantor acquiring the assets shall expressly confirm and ratify that the assets sold or assigned are subject to the security interest, lien, pledge and any other
interest of Agent in writing, in form and substance satisfactory to Agent, and Borrowers and Guarantors shall execute and deliver such other agreements, documents and instruments as Agent may request in connection therewith, (H) any assets acquired
by a Borrower from a Guarantor pursuant such sale or assignment of a type or category that might be included in the calculation of the Borrowing Base of such Borrower shall only be so included subject to such additional conditions, limitations or
other terms as Agent may determine, and (I) such sale or assignment shall not result in the breach of, or constitute a default under, any indenture, agreement or instrument to which any Borrower or Guarantor is a party or by which it or its assets
may be bound,” 
  

 6 

 6. Indebtedness. Section 9.9(j) of the Loan Agreement is hereby amended to delete Section
9.9(j)(ii) thereof in its entirety and the following substituted therefor: “intentionally omitted;”. 
  
 7. End of Fiscal Years; Fiscal Quarters. Section 9.14 of the Loan Agreement is hereby deleted in its entirety and the following substituted
therefor: 
  
 “9.14 End of Fiscal Years;
Fiscal Quarters. Each Borrower and Guarantor shall, for financial reporting purposes, cause its, and each of its Subsidiaries’ (a) fiscal years to end on January 31 of each year except that the fiscal year of Supreme Canada shall end on May
31 of each year (provided that upon sixty (60) days’ prior written notice to Agent, the end of the fiscal year of each Borrower and Guarantor may be changed to December 31) and (b) fiscal quarters to end on April 30, July 31, October 31 and
January 31 of each year except that the fiscal quarters of Supreme Canada shall end on August 30, November 30, February 28 and May 31 of each year (provided that upon sixty (60) days’ prior written notice to Agent, the fiscal quarters of each
Borrower and Guarantor may be changed to end on March 31, June 30, September 30 and December 31 in connection with the change of the end of its fiscal year to December 31).” 
  
 8. Minimum EBITDA. Section 9.17 of the Loan Agreement is hereby deleted in its entirety and the following substituted
therefor: 
  
 “9.17 Minimum EBITDA.
At any time that the aggregate amount of the Excess Availability is less than $25,000,000, (a) the EBITDA of Parent and its Subsidiaries (on a consolidated basis) for the preceding twelve (12) consecutive months (treated as a single accounting
period) as of the end of the most recent fiscal month for which Agent or any Lender has received financial statements of Borrowers or Guarantors, shall be not less than $45,000,000 (after giving effect to the EBITDA of Perry Ellis Menswear and its
Subsidiaries on a pro forma basis in a manner satisfactory to Agent) and (b) the EBITDA of Parent and its Subsidiaries (on a consolidated basis) as of the end of the most recent two (2) fiscal months, on a combined basis, for which Agent or any
Lender has received financial statements of Borrowers or Guarantors shall be positive.” 
  
 9. Term. The first sentence of Section 13.1(a) of the Loan Agreement is hereby deleted in its entirety and the following substituted therefor: 
  
 “(a) This Agreement and the other Financing Agreements shall become effective as of the date set forth
on the first page hereof and shall continue in full force and effect for a term ending on September 30, 2007 (the “Renewal Date”) and from year to year thereafter, unless sooner terminated pursuant to the terms hereof; provided,
that, except as Agent and Borrower Agent may otherwise agree, in the event that the term of this Agreement shall continue for any additional year after September 30, 2007, Borrowers and Guarantors shall pay to Agent an extension fee in the
amount of one-sixth (1/6th) percent of the Maximum Credit 

  

 7 

 
which fee shall be earned and payable in full on September 30, 2007 in respect of the extension for each year after the Renewal Date.” 
  
 10. Field Examinations. Without limiting any other rights of Agent to
receive information or otherwise with respect to any Borrower or Guarantor, Agent shall conduct three (3) field examinations with respect to the business of Borrowers in any twelve (12) consecutive month period, so long as no Default or Event of
Default shall exist or have occurred and Excess Availability is at all times during such period not less than $25,000,000. If at any time there is a Default or Event of Default or Excess Availability is less than such amount, Agent may conduct such
field examinations as it determines are necessary or desirable and such field examinations shall not be included in the limitation provided for herein. 
  
 11. Amendment Fee. 
  
 (a) Borrowers shall pay to Agent, for the account of Lenders (in accordance with the arrangements between Agent and Lenders), an amendment
fee on the date hereof in the amount of $250,000 which shall be fully earned as of the date hereof, without limiting any other rights of Agent and Lenders. 
  
 (b) In the event that Borrowers and Lenders agree to an amendment and restatement of the financing arrangements provided for herein after
the date hereof in connection with an acquisition by Borrowers of the assets of a Person that is not an Affiliate in a bona fide arm’s length transaction, subject to the terms hereof, as a one time accommodation, the closing fee that the
parties may agree to as part of such amendment and restatement that would otherwise be payable to a Lender that is a party to this Amendment No. 6 shall be reduced as to each such Lender by the amount of the amendment fee provided for in
Section 11(a) above received by such Lender on or about the date hereof; provided, that, (i) such closing fee shall only be reduced as to those Lenders that are party to this Amendment No. 6, (ii) as part of any such amendment and
restatement, the Maximum Credit shall be increased by no less than $50,000,000, (iii) a commitment letter issued by Agent setting forth the terms of such amendment and restatement shall be executed and delivered by Borrowers and Guarantors to Agent,
and effective by, no later than April 29, 2005, (iv) nothing contained herein shall be construed as a consent to any such acquisition or a waiver of any term or other provision of the Loan Agreement or any of the other Financing Agreements that
might be applicable thereto or otherwise, (v) nothing contained herein shall be construed to limit or affect the rights of Agent and Lenders to establish any terms or conditions to be included in any such amendment and restatement, (vi) the
reduction in such closing fee shall not apply to any other fees at any time provided for in the Loan Agreement or any amendment and restatement thereof and (vii) the reduction in the closing fee payable to a Lender that is party hereto in connection
with the amendment and restatement of the financing arrangements will only apply to the extent that such Lender continues as a Lender in the financing arrangements as so amended and restated. 
  
 12. Representations, Warranties and Covenants. Borrowers and
Guarantors jointly and severally represent, warrant and covenant with and to Agent and Lenders that: (a) this Amendment No. 6 has been duly authorized, executed and delivered by all necessary action on the part of each Borrower and Guarantor which
is a party hereto and, if necessary, their respective stockholders, and is in full force and effect as of the date hereof, and the agreements 

  

 8 

 
and obligations of Borrowers and Guarantors contained herein constitute legal, valid and binding obligations of Borrowers and Guarantors enforceable against
them in accordance with their terms except as such enforceability may be limited by (i) bankruptcy, insolvency, reorganization, moratorium or similar laws of general applicability affecting the enforcement of creditors’ rights and (ii) the
application of general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law) and (b) as of the date hereof and after giving effect to the amendments provided for herein, no Default or
Event of Default exists or has occurred and is continuing. 
  
 13.
Conditions Precedent. The effectiveness of the consents and amendments contained herein shall only be effective upon the receipt by Agent of an executed original or executed original counterparts of this Amendment No. 6, duly authorized,
executed and delivered by Borrowers, Guarantors and the Required Lenders by no later than October 4, 2004. 
  
 14. Effect of this Amendment. This Amendment No. 6 and the instruments and agreements delivered pursuant hereto constitute the entire agreement of
the parties with respect to the subject matter hereof and thereof, and supersede all prior oral or written communications, memoranda, proposals, negotiations, discussions, term sheets and commitments with respect to the subject matter hereof and
thereof. Except as expressly amended pursuant hereto and except for the amendments expressly contained herein, no other changes or modifications to the Financing Agreements are intended or implied, and in all other respects the Financing Agreements
are hereby specifically ratified, restated and confirmed by all parties hereto as of the effective date hereof. Any acknowledgment or consent contained herein shall not be construed to constitute a consent to any other or further action by any
Borrower or Guarantor or to entitle any Borrower or Guarantor to any other or further consent. To the extent that any provision of the Loan Agreement or any of the other Financing Agreements are inconsistent with the provisions of this Amendment No.
6, the provisions of this Amendment No. 6 shall control. 
  
 15. Further Assurances. Each Borrower and Guarantor shall execute and deliver such additional documents and take such additional action as may be reasonably requested by Agent or Lenders to effectuate the provisions and purposes of
this Amendment No. 6. 
  
 16. Governing Law. The rights and
obligations hereunder of each of the parties hereto shall be governed by and interpreted and determined in accordance with the internal laws of the State of Florida (but excluding any principles of conflicts of law or other rule of law that would
cause the application of the law of any jurisdiction other than the laws of the State of Florida). 
  
 17. Binding Effect. This Amendment No. 6 shall be binding upon and inure to the benefit of each of the parties hereto and their respective
successors and assigns. 
  
 18. Counterparts. This
Amendment No. 6 may be executed in any number of counterparts, but all of such counterparts shall together constitute but one and the same agreement. In making proof of this Amendment No. 6, it shall not be necessary to produce or account for more
than one counterpart thereof signed by each of the parties hereto. Delivery of an executed counterpart of this Amendment No. 6 by telecopier shall have the same force and effect as delivery of an original executed counterpart of this Amendment No.
6. Any party delivering an executed counterpart of this Amendment No. 6 by telecopier also shall deliver an 

  

 9 

 
original executed counterpart of this Amendment No. 6, but the failure to deliver an original executed counterpart shall not affect the validity,
enforceability, and binding effect of this Amendment No. 6 as to such party or any other party. 
  
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
  

 10 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 6 to be duly executed and delivered
by their authorized officers as of the day and year first above written. 
  

			
	 SUPREME INTERNATIONAL, INC.

		
	By:	 	/s/    ROSEMARY B.
TRUDEAU        
	 Title:
	 	Treasurer
	
	 JANTZEN, INC.

		
	By:	 	/s/    ROSEMARY B.
TRUDEAU        
	 Title:
	 	Treasurer
	
	PERRY ELLIS MENSWEAR, INC., formerly known as SALANT CORPORATION
		
	By:	 	/s/    ROSEMARY B.
TRUDEAU        
	 Title:
	 	Treasurer
	
	 SALANT HOLDING CORPORATION

		
	By:	 	/s/    ROSEMARY B.
TRUDEAU        
	 Title:
	 	Treasurer
	
	 PERRY ELLIS INTERNATIONAL, INC.
 PEI LICENSING, INC.
 JANTZEN APPAREL CORP.
 SUPREME REAL ESTATE I, LLC
 SUPREME REAL ESTATE II, LLC
 SUPREME REALTY, LLC
 BBI RETAIL, L.L.C.
 PERRY ELLIS REAL ESTATE CORPORATION

		
	By:	 	/s/    ROSEMARY B.
TRUDEAU        
	 Title:
	 	 VP-Finance
 Treasurer
 Manager

  

			
	 SUPREME MUNSINGWEAR CANADA INC.

		
	By:	 	/s/    ROSEMARY B.
TRUDEAU        
	 Title:
	 	Treasurer

  

			
	 AGREED:
  

CONGRESS FINANCIAL CORPORATION (FLORIDA), as Agent

		
	By:	 	/s/    Larry Forte        
	 Title:
	 	 Larry Forte
 Executive Vice President

	
	 THE CIT GROUP/COMMERCIAL SERVICES, INC.

		
	By:	 	/s/    William Shulman        
	 Title:
	 	 William Shulman
 Vice President

  

									
	 THE ISRAEL DISCOUNT BANK OF NEW YORK
	 	 	 	 
					
	By:	 	/s/    DAVID KEINAN        	 	 	 	 	 	/s/    ROBERTO R.
MUÑOZ        
	 Title:
	 	 David Keinan
 Senior Vice President
 Regional Manager for Florida
	 	 	 	 	 	 Roberto R. Muñoz
 Senior Vice President
 Chief Lending Officer for Florida

  

			
	
	 HSBC BANK USA

		
	By:	 	/s/    MICHELLE TAWDEEN        
	 Title:
	 	Michelle TawdeenSeparation Agreement between Avici Systems Inc. and Steven Kaufman

 Exhibit 10.1 
  
 [LETTERHEAD APPEARS HERE] 
  

			
	 Avici Systems Inc.
	  	978.964.2074 Phone
	 101 Billerica Avenue
	  	978.964.2650 Fax
	 N. Billerica, MA 01862
	  	http://www.avici.com

  
 December 8, 2004 
  
 VIA HAND DELIVERY 
  
 Mr. Steven Kaufman 
 116 E. Emerson Road 
 Lexington, MA 02420 
  
 Re: Separation Agreement and Release 
  
 Dear Steve: 
  
 In recognition of your four plus years of employment and contributions to the Company as President, CEO and director and previously as COO, and as
acknowledgement that this separation was prompted by the rapidly changing landscape in the telecommunications equipment business and was not for cause, the Company agrees with you to the following separation terms. This letter summarizes the terms
of your separation and release agreement with Avici Systems Inc. (hereinafter the “Company” or “Avici”). The date on which you execute this Agreement shall be the “Effective Date”. 
  
 1. Separation Date, Final Payments and Outstanding Loan: 
  
 (a) Separation: This letter agreement confirms your last day of employment
by the Company was Monday, November 15, 2004 (the “Separation Date”). 
  
 (b) Final Payments: As of the Separation Date, your salary ceased, and, except as provided below, any entitlement you had or might have had under a Company provided benefit plan, program or practice terminated,
except as required by federal or state law. The Company has provided you all wages due up through this date, including all accrued and un-used vacation time and reimbursement from the Employee Stock Purchase Plan. As of the Separation Date, you are
no longer eligible to participate in the Employee Stock Purchase Plan. Under separate cover you have been or will be provided with information regarding COBRA and 401(k) distribution. 
  
 (c) Outstanding Loan: You agree that you shall pay to the Company $1,000.00 on or before December 10, 2004 and that
25,000 shares of Avici Common Stock owned by you (the applicable stock certificate for which is held by the Company as security) shall be forfeited, returned to the Company and cancelled, in full satisfaction of the Secured Promissory Note dated
July 27, 2000, between you and the Company. 
  
 2. Equity Matters:

  
 (a) Restricted Stock: As of the Separation
Date, your vested holdings of Avici Restricted Stock are as follows: 
  

							
	 Grant Date

	 	 Granted
 Shares

	 	 Vested
 Shares

	 	 Status as of
 Separation Date

	 7/27/00
	 	25,000	 	25,000	 	To be returned and cancelled as set forth in Paragraph 1(c) above
				
	 10/30/01
	 	21,531	 	21,531	 	Fully vested
				
	 6/11/04
	 	30,000	 	0	 	Unvested, to be returned and cancelled

  
 You agree to sign any stock power reasonably
requested of the Company in connection with the return of such shares. 
  
 Your
stock option holdings are addressed in Paragraph 3. 
  
 3. Consideration:

  
 In consideration for your execution of this Agreement, including but
not limited to the release provision set forth in Paragraph 5 and your compliance with your obligations in your Invention, Non-Disclosure and Non-Competition Agreement with the Company (the “Non-Competition Agreement”), the Company agrees
to the following: 
  
 (a) Salary Continuation: The Company
agrees to pay you your current base salary from and after the Separation Date through November 15, 2005 in accordance with the Company’s normal payroll practices. These severance payments will commence upon the first regularly scheduled Company
payday on or following the Effective Date and payments will be made in accordance with the Company’s normal pay practices (currently on a bi-weekly basis), including direct deposit of payments, as established or modified from time to time.

  
 The Company will continue your 401(k) deductions from these
severance payments in accordance with your current instructions and the terms of the plan, unless instructed otherwise by you in writing. 
  
 (b) Stock Options; Extension of Exercise Period: As of November 15, 2004, you have 339,348 vested stock options, which represents normal vesting
through the Separation Date. In accordance with the Company’s stock option plans, all unvested stock options will be cancelled and forfeited effective as of the Separation Date, and you may exercise your vested stock options in accordance with
the stock option agreements presently in effect between the Company and you, except as otherwise provided herein. A summary of your vested options is set forth in the below chart. 
  

															
	 Grant Date

	  	# Shares

	  	Strike Price

	  	Description

	  	Vested thru
11/15/2004

	  	Exerciseable
through

	  	Exercise
Period

	 
	 03/30/01
	  	25,000	  	$	32.00	  	NQSO	  	25,000	  	2/15/2005	  	(90 days	)
	 05/01/02
	  	193,780	  	$	7.68	  	NQSO	  	169,557	  	12/15/2004	  	(30 days	)
	 05/21/02
	  	25,000	  	$	7.56	  	NQSO	  	25,000	  	12/15/2004	  	(30 days	)
	 05/21/02
	  	100,000	  	$	7.56	  	NQSO	  	60,416	  	12/15/2004	  	(30 days	)
	 03/24/03
	  	150,000	  	$	3.49	  	NQSO	  	59,375	  	12/15/2004	  	(30 days	)
	 	  	493,780	  	 	 	  	 	  	339,348	  	 	  	 	 

  

 - 2 - 

 However, in consideration for your execution of this Agreement, and notwithstanding the exercise period as referenced in
the above chart, the Company will amend the terms of your stock option agreements such that you will have up to and until November 15, 2005 to exercise any vested stock options as of the Separation Date, subject to the applicable stock option plan.

  
 (c) Payment of Health and Life Insurance Premiums: The
month end of your Separation Date (November 30, 2004) shall be the date of the “qualifying event” under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”). If you elect to continue health, dental and vision
insurance coverage after the Separation Date in accordance with the provisions of COBRA, the Company will continue to pay the monthly premium payments, less the twenty percent (20%) employee co-payment/contribution amount, until the earlier of (a)
the period of time that you are eligible to receive salary continuation payments (i.e., through November 15, 2005) or (b) the date on which you enroll in comparable health, dental and vision insurance benefits. Thereafter, medical, vision and dental
plan coverage will be continued only to the extent required by COBRA and only to the extent you timely pay the full premium payments yourself. 
  
 Based on your current health insurance elections, the per-pay-period premium payments will be as follows: 
  

									
	 Insurance Coverage

	  	 	  	Your Contribution (pre-tax)

	  	Avici’s Contribution

	 BC/BS HMO
	  	Family	  	$	60.15/pay period	  	$	340.61/pay period
	 Delta Dental
	  	Family	  	$	10.93/pay period	  	$	55.76/pay period
	 VSP Vision
	  	Single	  	$	0.00	  	$	2.59/pay period

  
 Please note that contribution rates
will be changing effective January 3, 2005 based on new premium rates. Your contribution will be deducted from the salary continuation payments set forth above. 
  

The Company will pay the premium on your Company Basic Life Insurance (benefit of $750,000) up to and until November 15, 2005. You agree that you will cooperate in the
execution of any documents necessary to continue the Company Basic Life Insurance policy. Your Supplemental & Spouse life insurance coverage ceased on November 15, 2004. 
  

	(d)	Outplacement Assistance: Avici also agrees that upon the Effective Date, it will pay for outplacement services for you for an amount up to $15,000.00 at the outplacement
organization of your choice. It will be your responsibility to arrange for the outplacement service to bill Avici directly up to the $15,000.00 cap. Upon selecting an outplacement organization, your Avici voice mail and electronic mail will end.

  

	(e)	Avici will reimburse you for up to $8,000 for documented legal expenses incurred in connection with review and execution of this Agreement. 

  

	(f)	Cell Phone: Subject to Company policy regarding such equipment and notwithstanding Section 7(b) below, Avici agrees that you may retain and use the AT&T cellular phone

  

 - 3 - 

 that you have been using through February 15, 2005, and that you may transfer your cellular phone number
to your personal account for your ongoing use. Avici will pay the flat monthly rate of $89.99 for cellular phone service through February 15, 2004, and you will reimburse Avici for any charges in excess of the flat monthly rate. 
  
 4. Reimbursements: 
  
 The Company agrees that, consistent with Company’s expense reimbursement policy, it
will reimburse you for all expenses reflected in the Expense Reports submitted to the Company by you for reasonable Company expenses incurred through November 15, 2004. 
  
 5. Release: 
  
 (a) In exchange for the amounts and benefits provided in Paragraph 3 of this letter agreement, and other good and valuable consideration, the receipt of
which you hereby acknowledge, you hereby agree that you and your representatives, agents, estate, heirs, successors and assigns (“You”) release, remise, discharge, indemnify and hold harmless the Releasees (defined to include Avici Systems
Inc. its predecessors, successors, parents, subsidiaries, divisions, affiliates, assigns, plan sponsors and plan fiduciaries, and its and their current and former directors, shareholders, insurers, officers, employees, representatives, attorneys
and/or agents, in any and all capacities), of and from any and all actions or causes of action, suits, claims, complaints, obligations, demands, liabilities, contracts, agreements, promises, judgments, rights, demands, controversies, debts and
damages, whether existing or contingent, known or unknown, up to and including the Effective Date, including, but not limited to, (i) any and all claims arising out of or in connection with your employment, change in employment status, and/or
termination of employment with the Company; (ii) any and all claims arising out of or in connection with any relationship between You and the Company; (iii) any and all claims based on any federal, state or local law, constitution or regulation
regarding either securities, employment, employment benefits, or employment discrimination and/or retaliation including, without limitation, those laws or regulations concerning discrimination on the basis of race, color, creed, religion, age, sex,
sex harassment, sexual orientation, genetic information, national origin, ancestry, handicap or disability, veteran status or any military service or application for military service; (iv) any contract, whether oral or written, express or implied,
any tort, or common law; and (v) any and all claims relating to your ownership of the Company’s stock. This release is intended by You to be all encompassing and to act as a full and total release of any claims, whether specifically enumerated
herein or not, that You have, may have or have had against the Releasees up to the Effective Date. 
  
 (b) Notwithstanding the foregoing, you do not release (1) any rights under this Agreement, (2) any benefit rights which vested on or before the Separation
Date as specified in this Agreement, (3) any rights to indemnification or exculpation under the Company’s charter or by-laws, (4) any rights under any applicable insurance policies or (5) any rights which by law cannot be waived. 
  
 (c) You not only release and discharge the Releasees from any and all claims
as stated above that You could make on your own behalf or on behalf of others, but also those claims that might be made by any other person or organization on your behalf, and You specifically waive any right to recover any damage awards as a member
of any class in a case in which any claim(s) against the Releasees are made involving any matters. And while nothing in 
  

 - 4 - 

 this letter agreement shall bar or prohibit You from contacting, seeking assistance from or participating in any
proceeding before any federal or state administrative agency to the extent permitted by applicable federal, state and/or local law, notwithstanding this provision, You will be prohibited to the fullest extent authorized by law from obtaining
monetary damages in any agency proceeding in which you do so participate. 
  
 (d) You also represent that you have not been subject to any retaliation or any other form of adverse action by the Releasees for any action taken by you as an employee or resulting from your exercise of or attempt to
exercise any statutory rights recognized under federal, state or local law. 
  
 6. Accord and Satisfaction: 
  
 You agree that the
payments and benefits set forth in this letter agreement, together with payments and benefits the Company previously provided to you, are complete payment, settlement, accord and satisfaction with respect to all obligations and liabilities of the
Releasees to You, and with respect to all claims, causes of action and damages that could be asserted by You against the Releasees regarding your employment with, change in employment status with, and/or termination from employment with the Company,
including, without limitation, all claims for wages, salary, commissions, draws, car allowances, incentive pay, bonuses, business expenses, paid time off, stock and stock options, severance pay, attorneys’ fees, compensatory damages, exemplary
damages, or other compensation, benefits, costs or sums. 
  
 7.
Nondisclosure Obligations and Return of Company Property: 
  
 (a) Nondisclosure: You confirm the existence and continued validity of your Non-Competition Agreement, which you executed as a condition of your employment. You agree that the Company’s provision of the amounts and benefits in
Paragraph 3 are additional consideration for your obligations pursuant to the Non-Competition Agreement. You acknowledge that your non-competition obligations as set forth in Section 4 of the Non-Competition Agreement shall continue until November
15, 2005 or, if applicable, such longer period as provided in Section 4(b) of the Non-Competition Agreement. The obligation of the Company to provide the consideration in Paragraph 3 hereof, including to make payments to or on your behalf, is
expressly conditioned upon your continued performance of the Non-Competition Agreement. 
  
 (b) Company Files, Documents and Other Property: On or before December 10, 2004, you will return to the Company all Company property and materials, including but not limited to, personal computers, laptops, fax
machines, scanners, copiers, cellular phones, Company credit cards and telephone charge cards, manuals, keys, cardkeys, building keys and passes, courtesy parking passes, diskettes, intangible information stored on diskettes, software programs and
data compiled with the use of those programs, software passwords or codes, tangible copies of trade secrets and confidential information, sales forecasts, names and addresses of Company customers and potential customers, customer lists, customer
contacts, sales information, sales forecasts, memoranda, sales brochures, business or marketing plans, reports, projections, and any and all other information or property previously or currently held or used by you that is or was related to your
employment with the Company (“Company Property”). You agree that in the event that you discover any other Company Property in your possession after the Separation Date, you will immediately return such materials to the Company. 

 

 - 5 - 

 8. Future Conduct: 
  
 (a) Nondisparagement: You agree not to make disparaging, critical or otherwise detrimental comments to any person or
entity concerning the Company, its officers, directors or employees; the products, services or programs provided or to be provided by the Company; or the business affairs or the financial condition of the Company. 
  
 (b) Nothing herein shall prohibit or bar you from providing truthful
testimony in any legal proceeding or in communicating with any governmental agency or representative or from making any truthful disclosure required, authorized or permitted under law; provided however, that in providing such testimony or making
such disclosures or communications, you will use your best efforts to ensure that this Section is complied with to the maximum extent possible. 
  
 9. Representations and Governing Law: 
  
 (a) This letter agreement sets forth the complete and sole agreement between the parties and supersedes any and all other agreements or understandings,
whether oral or written, except for the Non-Competition Agreement, a copy of which has been provided to you, and which shall remain in full force and effect in accordance with its terms. This letter agreement may not be changed, amended, modified,
altered or rescinded except upon the express written consent of the Company and you. 
  
 (b) If any provision of this letter agreement, or part thereof, is held invalid, void or voidable as against public policy or otherwise, the invalidity shall not affect other provisions, or parts thereof, which may be
given effect without the invalid provision or part. To this extent, the provisions, and parts thereof, of this letter agreement are declared to be severable. Any waiver of any provision of this letter agreement shall not constitute a waiver of any
other provision of this letter agreement unless expressly so indicated otherwise. The language of all parts of this letter agreement shall in all cases be construed as a whole according to its fair meaning and not strictly for or against any of the
parties. 
  
 (c) This letter agreement shall be deemed to be made
and entered into in the Commonwealth of Massachusetts. This letter agreement and any claims arising out of this letter agreement (or any other claims arising out of the relationship between the parties) shall be governed by and construed in
accordance with the laws of the Commonwealth of Massachusetts and shall in all respects be interpreted, enforced and governed under the internal and domestic laws of Massachusetts, without giving effect to the principles of conflicts of laws of such
state. Any claims or legal actions by one party against the other shall be commenced and maintained in any state or federal court located in Massachusetts, and you hereby submit to the jurisdiction and venue of any such court. This letter agreement
shall be binding upon and inure to the benefit of the respective representatives, heirs, agents and successors of the parties and, as to the Company, shall also be binding on and inure to the benefit of its assigns. 
  
 10. Taxation: 
  
 All payments set forth in this letter agreement shall be subject to all applicable federal, state and/or local withholding obligations and
payroll, income and other taxes, and You shall be 
  

 - 6 - 

 responsible for the payment of all such taxes. The Company may withhold from any amounts payable to You in order to
comply with any withholding obligations. 
  
 [REMAINDER OF PAGE
INTENTIONALLY BLANK] 
  

 - 7 - 

 If this letter agreement correctly states the understanding we have reached, please indicate your
acceptance by countersigning the enclosed copy and returning it to me no later than 12:00 p.m. EST on Thursday, December 9, 2004. Thereafter, the terms of the Company’s offer shall expire. 
  
 Very truly yours, 
  
 AVICI SYSTEMS INC. 
  

	
	 /s/ Paul Brauneis

	 By: Paul Brauneis, Senior Vice President, Finance

  
 YOU REPRESENT THAT YOU HAVE READ
THE FOREGOING AGREEMENT, THAT YOU FULLY UNDERSTAND THE TERMS AND CONDITIONS OF SUCH AGREEMENT AND THAT YOU ARE VOLUNTARILY EXECUTING THE SAME. IN ENTERING INTO THIS AGREEMENT, YOU DO NOT RELY ON ANY REPRESENTATION, PROMISE OR INDUCEMENT MADE BY THE
RELEASEES WITH THE EXCEPTION OF THE CONSIDERATION DESCRIBED IN THIS DOCUMENT. 
  
 Accepted and agreed to: 
  

			
	 /s/ Steven Kaufman

	 	 December 8, 2004

	 Steven Kaufman
	 	Date

  

 - 8 -

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