Document:

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                                                                    EXHIBIT 10.1

                                                             [Execution Version]

            TWENTY-FIFTH AMENDMENT TO LOAN AND SECURITY AGREEMENT
            -----------------------------------------------------

        THIS TWENTY-FIFTH AMENDMENT TO LOAN AND SECURITY AGREEMENT (this
"Amendment"), dated as of April 21, 2003, is entered into by and among CONGRESS
FINANCIAL CORPORATION, a Delaware corporation ("Lender"), BRAWN OF CALIFORNIA,
INC., a California corporation ("Brawn"), GUMP'S BY MAIL, INC., a Delaware
corporation ("GBM"), GUMP'S CORP., a California corporation ("Gump's"), HANOVER
REALTY, INC., a Virginia corporation ("Hanover Realty"), THE COMPANY STORE
FACTORY, INC., a Delaware corporation ("TCS Factory"), THE COMPANY OFFICE,
INC., a Delaware corporation ("TCS Office"), SILHOUETTES, LLC, a Delaware
limited liability company ("Silhouettes LLC"), HANOVER COMPANY STORE, LLC, a
Delaware limited liability company ("HCS LLC"), DOMESTICATIONS, LLC, a Delaware
limited liability company ("Domestications LLC"), KEYSTONE INTERNET SERVICES,
LLC, a Delaware limited liability company ("KIS LLC"), and THE COMPANY STORE
GROUP, LLC, a Delaware limited liability company ("CSG LLC"; and, together with
Brawn, GBM, Gump's, Hanover Realty, TCS Factory, TCS Office, Silhouettes LLC,
HCS LLC, Domestications LLC and KIS LLC, collectively, "Borrowers" and each,
individually, a "Borrower"), HANOVER DIRECT, INC., a Delaware corporation
("Hanover"), HANOVER HOME FASHIONS GROUP, LLC, a Delaware limited liability
company ("HHFG LLC"), CLEARANCE WORLD OUTLETS, LLC, a Delaware limited
liability company ("Clearance World"), SCANDIA DOWN, LLC, a Delaware limited
liability company ("Scandia Down LLC"), LACROSSE FULFILLMENT, LLC, a Delaware
limited liability company ("LaCrosse LLC"), D.M. ADVERTISING, LLC, a Delaware
limited liability company ("DM Advertising LLC"), AMERICAN DOWN & TEXTILE, LLC,
a Delaware limited liability company ("ADT LLC"), and HANOVER GIFTS, INC., a
Virginia corporation ("Hanover Gifts"; and, together with Hanover, HHFG LLC,
Clearance World, Scandia Down LLC, LaCrosse LLC, DM Advertising LLC and ADT
LLC, collectively, "Guarantors" and each, individually, a "Guarantor").

                             W I T N E S S E T H:
                             --------------------

        WHEREAS, Borrowers, Guarantors and Lender are parties to the Loan and
Security Agreement, dated November 14, 1995, as amended by the First Amendment
to Loan and Security Agreement, dated February 22, 1996, the Second Amendment
to Loan and Security Agreement, dated April 16, 1996, the Third Amendment to
Loan and Security Agreement, dated May 24, 1996, the Fourth Amendment to Loan
and Security Agreement, dated May 31, 1996, the Fifth Amendment to Loan and
Security Agreement, dated September 11, 1996, the Sixth Amendment to Loan and
Security Agreement, dated as of December 5, 1996, the Seventh Amendment to Loan
and Security Agreement, dated as of December 18, 1996, the Eighth Amendment to
Loan and Security Agreement, dated as of March 26, 1997, the Ninth Amendment to
Loan and Security Agreement, dated as of April 18, 1997, the Tenth Amendment

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to Loan and Security Agreement, dated as of October 31, 1997, the Eleventh
Amendment to Loan and Security Agreement, dated as of March 25, 1998, the
Twelfth Amendment to Loan and Security Agreement, dated as of September 30,
1998, the Thirteenth Amendment to Loan and Security Agreement, dated as of
September 30, 1998, the Fourteenth Amendment to Loan and Security Agreement,
dated as of February 28, 2000, the Fifteenth Amendment to Loan and Security
Agreement, dated as of March 24, 2000, the Sixteenth Amendment to Loan and
Security Agreement, dated as of August 8, 2000, the Seventeenth Amendment to
Loan and Security Agreement, dated as of January 5, 2001, the Eighteenth
Amendment to Loan and Security Agreement, dated as of November 12, 2001, the
Nineteenth Amendment to Loan and Security Agreement, dated as of December 18,
2001, the Twentieth Amendment to Loan and Security Agreement, dated as of March
5, 2002, the Twenty-First Amendment to Loan and Security Agreement, dated as of
March 21, 2002, the Twenty-Second Amendment to Loan and Security Agreement,
dated as of August 16, 2002, the Twenty-Third Amendment to Loan and Security
Agreement, dated as of December 27, 2002, and the Twenty-Fourth Amendment to
Loan and Security Agreement, dated as of February 27, 2003 (as so amended, the
"Loan Agreement"), pursuant to which Lender has made loans and advances to
Borrowers;

        WHEREAS, Borrowers and Guarantors have requested that Lender amend the
Loan Agreement to allow the Chief Financial Officer or the Corporate Controller
of Hanover to certify that the financial statements required to be delivered to
Lender under Section 6.18 of the Loan Agreement; and

        WHEREAS, the parties hereto desire to enter into this Amendment to
evidence and effectuate such amendments, subject to the terms and conditions
and to the extent set forth herein;

        NOW, THEREFORE, in consideration of the premises and covenants set
forth herein and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto agree as
follows:

        1.      Definitions.  All capitalized terms used herein and not defined
herein shall have the meanings given to such terms in the Loan Agreement.

        2.      Financial Statements and Other Information.

                (a)     The last sentence of Section 6.18(a)(ii) of the Loan
Agreement is hereby deleted in its entirety and replaced with the following:

                "The foregoing financial statements shall be certified
                to comply with this Section 6.18 by the Chief Financial
                Officer or Corporate Controller of Hanover, subject to
                normal year-end adjustments."

                (b)     The last sentence of Section 6.18(a)(iii) of the Loan
Agreement is hereby deleted in its entirety and replaced with the following:

                "All such statements in Sections 6.18(a)(iii)(A) and
                (B) shall be certified to comply with this Section by
                the Chief Financial Officer

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                or Corporate Controller of Hanover, subject to
                normal year-end adjustments."

                (c)     The introductory clause in Section 6.18(a)(v) of the
Loan Agreement is hereby deleted in its entirety and replaced with the
following:

                "Simultaneously with the delivery of each of the
                annual audited and quarterly and monthly unaudited
                financial statements as set forth herein, Lender
                shall receive a certificate of the Chief Financial
                Officer or Corporate Controller of Hanover, subject
                to normal year-end adjustments:"

                (d)     Section 6.18 of the Loan Agreement is hereby amended by
adding a new Section 6.18(g) immediately after Section 6.18(f) as follows:

                Each of Borrowers and Hanover and each of the other
                Guarantors hereby represents, warrants and covenants
                with, to and in favor of Lender that (i) Hanover is
                authorized to prepare on behalf of its Subsidiaries
                all financial and other information of its Subsidiaries
                (including, without limitation, Borrowers and the other
                Guarantors) required to be delivered to Lender pursuant
                to this Section 6.18 and (ii) the Chief Financial Officer
                and the Corporate Controller of Hanover are duly authorized
                to make the certifications to Lender on behalf of Borrowers
                and Guarantors in connection with the delivery of such
                financial and other information pursuant to this Section
                6.18 or otherwise. Borrowers and Guarantors are and shall
                remain, jointly and severally, individually and collectively,
                responsible, liable and obligated to Lender for any
                inaccurate, untrue or incorrect statement with respect
                to the information and statements made in connection with
                the information or certificates delivered to Lender
                pursuant to this Section 6.18 or otherwise."

        3.      Representations, Warranties and Covenants.  Each Borrower and
Guarantor represents, warrants and covenants with, to and in favor of Lender as
follows, which representations, warranties and covenants are continuing and
shall survive the execution and delivery hereof, the truth and accuracy of, or
compliance with, each, together with the representations, warranties and
covenants in the other Financing Agreements, being a condition of the
effectiveness of this Amendment and a continuing condition of the making or
providing of any Revolving Loans or Letter of Credit Accommodations by Lender
to Borrowers:

                (a)     This Amendment and each other agreement or instrument
to be executed and delivered by Borrowers or Guarantors hereunder have been
duly authorized, executed and delivered by all necessary action on the part of
Borrowers and Guarantors which are a party hereto and thereto and, if
necessary, their respective stockholders (with respect to any corporation) or
members (with respect to any limited liability company), and is in full force
and effect as of the date hereof, as the case may be, and the agreements and
obligations of Borrowers or Guarantors, as the case may be, contained herein
and therein constitute legal, valid and

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binding obligations of Borrowers and Guarantors, as the case may be,
enforceable against them in accordance with their terms.

                (b)     No action of, or filing with, or consent of any
governmental or public body or authority, and no approval or consent of any
other party, including, without limitation, Richemont is required to authorize,
or is otherwise required in connection with, the execution, delivery and
performance of this Amendment.

                (c)     All of the representations and warranties set forth in
the Loan Agreement, as amended hereby, and the other Financing Agreements are
true and correct in all material respects, after giving effect to the
provisions of this Amendment, except to the extent any such representation or
warranty is made as of a specified date, in which case such representation or
warranty shall have been true and correct as of such date.

                (d)     After giving effect to the provisions of this
Amendment, no Event of Default or Incipient Default exists or has occurred and
is continuing.

        4.      Conditions Precedent.  Concurrently with the execution and
delivery hereof (except to the extent otherwise indicated below), and as a
further condition to the effectiveness of this Amendment and the agreement of
Lender to the modifications and amendments set forth in this Amendment:

                (a)     Lender shall have received, in form and substance
satisfactory to Lender, a photocopy of an executed original or executed
original counterparts of this Amendment by facsimile (with the originals to be
delivered within five (5) Banking Days after the date hereof), as the case may
be, duly authorized, executed and delivered by each Borrower and Guarantor; and

                (b)     each Borrower and Guarantor shall deliver, or cause to
be delivered, to Lender a true and correct copy of any consent, waiver or
approval to or of this Amendment, which any Borrower or Guarantor is required
to obtain from any other Person, including without limitation Richemont, and
such consent, approval or waiver shall be in a form reasonably acceptable to
Lender.

        5.      Effect of this Amendment.  This Amendment constitutes the entire
agreement of the parties with respect to the subject matter hereof, and
supersedes all prior oral or written communications, memoranda, proposals,
negotiations, discussions, term sheets and commitments with respect to the
subject matter hereof.  Except as expressly provided herein, no other changes
or modifications to the Loan Agreement or any of the other Financing
Agreements, or waivers of or consents under any provisions of any of the
foregoing, are intended or implied by this Amendment, and in all other respects
the Financing Agreements are hereby specifically ratified, restated and
confirmed by all parties hereto as of the effective date of this Amendment.  To
the extent that any provision of the Loan Agreement or any of the other
Financing Agreements conflicts with any provision of this Amendment, the
provision of this Amendment shall control.

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        6.      Further Assurances.  Borrowers and Guarantors shall execute and
deliver such additional documents and take such additional action as may be
reasonably requested by Lender to effectuate the provisions and purposes of
this Amendment.

        7.      Governing Law.  The validity, interpretation and enforcement of
this Amendment in any dispute arising out of the relationship between the
parties hereto, whether in contract, tort, equity or otherwise, shall be
governed by the internal laws of the State of New York, without regard to any
principle of conflict of laws or other rule of law that would result in the
application of the law of any jurisdiction other than the State of New York.

        8.      Binding Effect.  This Amendment shall be binding upon and inure
to the benefit of each of the parties hereto and their respective successors
and assigns.

        9.      Counterparts.  This Amendment 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, it shall not be
necessary to produce or account for more than one counterpart thereof signed by
each of the parties hereto.

                 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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        IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed on the day and year first written.

                                        CONGRESS FINANCIAL CORPORATION

                                        By: /s/ Eric Sturz
                                           ---------------------------

                                        Title: AVP
                                              ------------------------

                                        BRAWN OF CALIFORNIA, INC.

                                        By:  /s/ Steven Seymour
                                        Name:    Steven Seymour

                                        Title:   President

                                        GUMP'S BY MAIL, INC.

                                        By:  /s/ Jed Pogran
                                        Name:    Jed Pogran

                                        Title:   President

                                        GUMP'S CORP.

                                        By:  /s/ Jed Pogran
                                        Name:    Jed Pogran

                                        Title:   President

                                        HANOVER REALTY, INC.

                                        By:  /s/ Doug Mitchell
                                        Name:    Doug Mitchell

                                        Title:   President

                                        THE COMPANY STORE FACTORY, INC.

                                        By:  /s/ David Pipkorn
                                        Name:    David Pipkorn

                                        Title:   President

                   [SIGNATURES CONTINUE ON FOLLOWING PAGE]

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                  [SIGNATURES CONTINUED FROM PREVIOUS PAGE]

                                        THE COMPANY OFFICE, INC.

                                        By: /s/ David Pipkorn
                                        Name:   David Pipkorn

                                        Title:  President

                                        SILHOUETTES, LLC

                                        By: /s/ Edward M. Lambert
                                        Name:   Edward M. Lambert

                                        Title:  President

                                        HANOVER COMPANY STORE, LLC

                                        By: /s/ Edward M. Lambert
                                        Name:   Edward M. Lambert

                                        Title:  President

                                        DOMESTICATIONS, LLC

                                        By: /s/ Edward M. Lambert
                                        Name:   Edward M. Lambert

                                        Title:  Vice President

                                        KEYSTONE INTERNET SERVICES, LLC

                                        By: /s/ Edward M. Lambert
                                        Name:   Edward M. Lambert

                                        Title:  Vice President

                                        THE COMPANY STORE GROUP, LLC

                                        By: /s/ Edward M. Lambert
                                        Name:   Edward M. Lambert

                                        Title:  Vice President

                   [SIGNATURES CONTINUE ON FOLLOWING PAGE]

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                  [SIGNATURES CONTINUED FROM PREVIOUS PAGE]

By their signatures below, the
undersigned Guarantors acknowledge
and agree to be bound by the
applicable provisions of this
Amendment:

HANOVER DIRECT, INC.

By: /s/ Edward M. Lambert
Name:   Edward M. Lambert

Title:  Executive Vice President and
        Chief Financial Officer

HANOVER HOME FASHIONS GROUP, LLC

By: /s/ Edward M. Lambert
Name:   Edward M. Lambert

Title:  Vice President

CLEARANCE WORLD OUTLETS, LLC

By: /s/ Edward M. Lambert
Name:   Edward M. Lambert

Title:  President

SCANDIA DOWN, LLC

By: /s/ David Pipkorn
Name:   David Pipkorn

Title:  President

LA CROSSE FULFILLMENT, LLC

By: /s/ Edward M. Lambert
Name:   Edward M. Lambert

Title:  President

                   [SIGNATURES CONTINUE ON FOLLOWING PAGE]

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                  [SIGNATURES CONTINUED FROM PREVIOUS PAGE]

D.M. ADVERTISING, LLC

By: /s/ Edward M. Lambert
Name:   Edward M. Lambert

Title:  President

AMERICAN DOWN & TEXTILE, LLC

By: /s/ David Pipkorn
Name:   David Pipkorn

Title:  President

HANOVER GIFTS, INC.

By: /s/ Doug Mitchell
Name:   Doug Mitchell

Title:  President

                                      9SPECIMEN STOCK CERTIFICATE

 

Exhibit 4.1

	 	 	 
	
    NUMBER

     V00 2886
    	 	
    SHARES

    SPECIMEN

    SEE REVERSE FOR

    CERTAIN DEFINITIONS

    

    CUSIP 92904N 10 3
    

Vornado Operating Company

INCORPORATED UNDER THE LAWS OF THE STATE OF
DELAWARE

THIS CERTIFICATE IS TRANSFERABLE IN CHARLOTTE,
N.C. AND NEW YORK, N.Y.

THIS CERTIFIES THAT

SPECIMEN

is the owner of

FULLY PAID AND NONASSESSABLE SHARES OF THE
COMMON STOCK, $.01 PAR VALUE, OF

VORNADO OPERATING COMPANY

transferable on the books of the Company by the holder hereof in
person or by duly authorized attorney upon surrender of this
certificate properly endorsed.

     
This certificate is not valid unless countersigned and
registered by the Transfer Agent and Registrar.

     
WITNESS the facsimile seal of the Company and the facsimile
signatures of its duly authorized officers.

DATED

/s/ Steven Roth

Chairman of the Board of Directors

	 	 	 	 
	
    
    Countersigned and Registered
    

    	 	 	 
	
	
	
	

	
    WACHOVIA BANK, N.A.

(Charlotte, N.C.)
    	 
	By:	 	
    Transfer Agent

    and Registrar

    

    

    Authorized Signature
    	
    Vornado Operating Company

Corporate Seal
    

Joseph Macrow

Executive Vice President,

Finance and Administration

 

 

VORNADO OPERATING COMPANY

   
The following abbreviations, when used in the
inscription on the face of this certificate, shall be construed
as though they were written out in full according to applicable
laws or regulations:

	 	 	 	 	 	 	 
	
    TEN COM

    TEN ENT

    JT TEN
    	 	
    —

    —

    —
    	 	
    as tenants in common

    as tenants by the entireties

    as joint tenants with right of survivorship and not as
    tenants in common
    	 	
    UNIF GIFT MIN ACT — ______________
Custodian ______________

    (Cust)
                              (Minor)

    under Uniform Gifts to Minors

    Act ____________________________

(State)

    

Additional abbreviations may also be used though
not in the above list.

For value
received,                     hereby
sell, assign and transfer unto

PLEASE INSERT SOCIAL SECURITY OR OTHER

IDENTIFYING NUMBER OF ASSIGNEE

(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS,
INCLUDING ZIP CODE, OF ASSIGNEE)

shares of the capital stock represented by the within Certificate, and
do hereby irrevocably constitute and appoint

Attorney
to transfer the said stock on the books of the within named
Corporation with full power of substitution in the premises.

Dated 

		
	
    NOTICE: 	THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND
    WITH THE NAME AS WRITTEN UPON THE FACE OF THE CERTIFICATE IN
    EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE
    WHATEVER.
    

The securities represented by this certificate
are subject to restrictions on ownership and transfer. Except as
otherwise provided pursuant to the Certificate of Incorporation
of the Corporation, no Person (other than certain Persons
described in the Certificate of Incorporation, who are subject
to a higher limit of 6.7% or 9.9%, depending upon their
particular circumstances) may Beneficially Own Shares in excess
of 4.9% of the number or value of the outstanding Shares of any
class or series of the Common Stock or Preferred Stock of the
Corporation. Any Person who attempts or proposes to Beneficially
Own Shares in excess of the ownership and transfer limitations
must notify the Corporation in writing at least 15 days
prior to such proposed or attempted Transfer. All capitalized
terms in this legend have the meanings defined in the
Certificate of Incorporation of the Corporation, a copy of
which, including the restrictions on ownership and transfer,
will be furnished to each shareholder on request and without
charge. If the restrictions on ownership or transfer are
violated, the securities represented hereby which are in excess
of the applicable ownership limitation will be designated and
treated as Excess Shares which will be held in trust by the
Excess Share Trustee for the benefit of the Charitable
Beneficiary.

Until the Separation Time (as defined in the
Rights Agreement referred to below), this certificate also
evidences and entitles the holder hereof to certain Rights as
set forth in a Rights Agreement, dated as of May 29, 2002
(as such may be amended from time to time, the “Rights
Agreement”), between Vornado Operating Company (the
“Company”) and Wachovia Bank National Association, as
Rights Agent, the terms of which are hereby incorporated herein
by reference and a copy of which is on file at the principal
executive offices of the Company. Under certain circumstances,
as set forth in the Rights Agreement, such Rights may be
redeemed, may become rights to receive, upon due exercise, cash
or securities, may at the Company’s option be exchanged for
cash or securities, may expire, may never become exercisable or
exchangeable, may become void (if they are “Beneficially
Owned” by an “Acquiring Person” or an Affiliate
or Associate thereof, as such terms are defined in the Rights
Agreement, or by any transferee of any of the foregoing) or may
be evidenced by separate certificates and may no longer be
evidenced by this certificate. The Company will mail or arrange
for the mailing of a copy of the Rights Agreement to the holder
of this certificate without charge after the receipt of a
written request therefor.

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