Document:

Unassociated Document

    

    SETTLEMENT
AGREEMENT & RELEASE OF CLAIMS

     

                AND
NOW, this 17th day of September 2009, this Settlement Agreement and
Release of Claims (“Agreement”) is entered into by and between, ALLIANCE
GLOBAL SERVICES, LLC, as successor to ALLIANCE CONSULTING GROUP ASSOCIATES,
INC. (hereinafter “Alliance”) and CLEARPOINT
RESOURCES, INC. (hereinafter “ClearPoint”) (collectively,
“Parties”);

     

    WHEREAS,
on or about April 25, 2008, Alliance commenced a civil action in the Court of
Common Pleas of Montgomery County by way of a Complaint known as civil action
number 08-10739 against ClearPoint (hereinafter the
“Complaint”);

     

    WHEREAS,
on or about June 16, 2008, ClearPoint filed an Answer, New Matter and
Counterclaim against Alliance disputing the Complaint (hereinafter the
“Counterclaim”);

     

    WHEREAS,
ClearPoint and Alliance each dispute the other’s claims;

     

    WHEREAS,
the Parties wish to avoid further expense in the continuation of discovery and
preparation for and attendance of trial;

     

    WHEREAS,
the Parties wish to settle and dispose of the Complaint and the Counterclaim and
any and all other claims held by and among them.

     

    NOW
THEREFORE, the Parties, in exchange for good and valuable consideration,
and intending to be legally bound hereby, agree as follows:

     

    1. All
claims asserted, or which could have been asserted, by the Parties are settled
for:

     

    
      	
              a.  

            	
              payment
      of Fifty Thousand Dollars ($50,000.00) (hereinafter, the “Initial
      Payment”) to be paid by ClearPoint to Alliance by Friday, September 18,
      2009, with payment to be delivered to “Alliance Global Services, LLC, Six
      Tower Bridge, 181 Washington Street, Conshohocken, PA 19428”;
      and

            

    

     

    
      	
              b.  

            	
              payment
      of One Hundred Fifty Thousand Dollars ($150,000.00) to be paid by
      ClearPoint to Alliance in twenty-four (24) equal, monthly payments of Six
      Thousand Two Hundred Fifty Dollars each ($6,250.00/ea.), with said
      payments to commence on April 15, 2010 and to be due on the 15th
      of each month thereafter or, if the 15th
      of the month falls on a weekend or legally-recognized federal holiday, the
      first business day thereafter, whichever is latest, with the last payment
      to be made on March 15, 2012 (hereinafter the “Monthly
      Payments”).  Each of the Monthly Payments shall be delivered to
      Alliance at the address set forth in Paragraph 1a.
      above.  ClearPoint may prepay without penalty or premium all or
      a portion of the amount owed
hereunder.

            

    

     

    
      
        
        

      

      
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    2. Should
ClearPoint default on the Initial Payment or on any of the Monthly Payments,
after Alliance has provided ClearPoint with prior written notice and five
(5)  business days opportunity to cure, ClearPoint agrees that
Alliance will be permitted to confess judgment against it in Montgomery County,
Pennsylvania in the amount of Three Hundred Thousand Dollars ($300,00.00) in
accordance with the Confession of Judgment attached hereto as Exhibit “A” and
incorporated herein by reference as though fully set forth at
length.  Notice of default under this paragraph shall
be  provided via both email and overnight delivery by a nationally
recognized carrier (i.e., FedEx or UPS) to
ClearPoint, Michael Traina, and all counsel of record in the Complaint and
Counterclaim at their current addresses (or to such changed
addresses).  In the event that Alliance shall confess judgment in
accordance with this Agreement, Alliance shall promptly provide a copy of the
Confessional and all related pleadings in the same manner as prescribed for the
service of notice of default under this paragraph.

     

    3. Each
Party hereby agrees not to disparage or defame, in writing or orally, any other
party, and as applicable, its services, products, subsidiaries and affiliates,
and their respective directors, officers, shareholders, employees, agents,
successors and assigns.  Ordinary business dealings, in and
of themselves, and information about products, performance, and the
like shall not, in any respect, be considered disparagement.

     

    4. All
Parties, individually, as well as their agents, officers, directors, employees,
attorneys, successors and assigns, are forever released from any and all present
and future claims, causes of action, back-charges, liquidated damages, debts,
obligations, judgments, liens, demands, attorney’s fees, damages, interest,
costs, loss of services, expenses, compensation, third party actions, suits at
law or in equity, including claims or suits for contribution and/or indemnity,
of whatever nature, and all consequential damages including but not limited to
all claims which were asserted, or which could have been asserted, in the
Complaint and Counterclaim from the beginning of the world to the date of this
Agreement, whether known or unknown liquidated, fixed or
contingent.

     

    5. Upon the
execution of this Agreement and payment of the Initial Payment, legal counsel
for Alliance shall promptly file with the Court of Common Pleas of Montgomery
County a Praecipe to Mark Action Settled, Discontinued and Ended and will
provide a time-stamped copy of such notice to ClearPoint.

     

    6. All
Parties shall bear their own expenses, costs and attorneys’ fees in connection
with the Complaint and Counterclaim.

     

    
      
        
        

      

      
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    7. All
Parties understand that this settlement is the compromise of disputed claims,
and that this document, and all terms set forth herein, shall not be construed
as an admission of liability on the part of any of the Parties
hereto.

     

    8. All
Parties covenant and agree that the undersigned person is expressly authorized
to execute the Agreement on their behalf.

     

    9. This
Agreement shall be binding upon and inure to the benefit of the Parties, their
heirs, successors and assigns.  

     

    10. This
Agreement contains the complete and exclusive agreement between the Parties
hereto.  The recitals hereinbefore set forth constitute an integral
part of this Agreement, evidencing the intent of the Parties in executing same,
and describing the circumstances surrounding its
execution.  Accordingly, said recitals are, by express reference made
a part of the covenants hereof, and this Agreement shall be construed in light
thereof.

     

    11. This
Agreement shall not be orally modified, altered, or changed in any way; the sole
method of modification, alteration, or change of this document shall be another
written document signed by all Parties hereto.

     

    12. This
Agreement shall be construed under laws of the Commonwealth of Pennsylvania and
the enforcement thereof shall be in the Court of Common Pleas of Montgomery
County, Pennsylvania.

     

    13. This
Agreement was drafted and modified jointly and equally by all Parties and no
Court shall interpret it against one party on the basis that said party was the
drafter thereof.

     

    14. This
Agreement may be executed in one or more counterparts, provided, that all
properly executed counterparts shall, together, constitute a single, valid,
binding and enforceable agreement.

     

    15. A signed
facsimile copy of the Agreement shall be deemed as though an original
signature.

     

    
      
        
        

      

      
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    INTENDING
TO BE LEGALLY BOUND:

     

     

    
      
        	ALLIANCE GLOBAL SERVICES,
      LLC	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	By:
      	
                /s/
      John Castleman

              	 	Date:	
                September
      17, 2009

              	 
	 	
                John
      Castleman

              	 	 	
              	 

      

    

     

    
       

      
        
          	

                  CLEARPOINT
      RESOURCES, INC.

                	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	By:
      	
                  /s/
      Michael
      Traina

                	 	Date:	
                  September
      17, 2009

                	 
	 	
                  

                    Michael
      Traina

                  

                	 	 	
                	 

        

         

      

    

    
      
        
        

      

      
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    EXHIBIT
“A”

    CONFESSION
OF JUDGMENT

     

    
      	
              CLEARPOINT
      RESOURCES, INC. (“ClearPoint”), intending to be legally bound
      hereby, grants to ALLIANCE
      GLOBAL SERVICES, LLC, as successor to Alliance Consulting Group
      Associates, Inc. (“Alliance”),
      the right to enter judgment by confession under the terms set forth in
      that certain Settlement Agreement & Release of Claims (“Agreement”)
      dated September 17, 2009 by and between Alliance and
      ClearPoint.

            

    

     

    ClearPoint hereby consents
and agrees that, upon an “Event of Default,” and following receipt of five (5)
business days prior written notice from Alliance to ClearPoint, Michael Traina
and all counsel of record for ClearPoint  at their current addresses
(or to such changed addresses as Alliance and its counsel shall receive notice
of) by email and overnight delivery by a nationally-recognized carrier (i.e.
Federal Express or UPS) (“Notice”), should said default remain uncured, Alliance
shall be entitled to confess judgment against ClearPoint in the Court of Common
Pleas of Montgomery County, Pennsylvania in the amount of Three Hundred Thousand
Dollars ($300,000) (“Judgment Amount”).  An “Event of Default” means
the failure by ClearPoint, for whatever reason, to timely pay the Initial
Payment or any of the Monthly Payments as set forth in the
Agreement.

     

    ClearPoint hereby
expressly authorizes an attorney-at-law or the Prothonotary or Clerk of Court to
appear for ClearPoint in any action on this Confession of Judgment, at any time
following an Event of Default and Notice, in the Court of Common Pleas of
Montgomery County and to waive the issuing and service of process, and confess
judgment against ClearPoint and in favor of Alliance, for the full Judgment
Amount and to waive and release all errors in said proceedings and the right of
appeal from judgment rendered, and for so doing this Confession of Judgment or a
copy hereof verified by affidavit shall be a sufficient warrant.  ClearPoint hereby
further covenants and agrees not to seek to open or otherwise raise or otherwise
assert any counterclaims against Alliance in any action commenced by Alliance,
except for those claims that relate solely to whether there has been an “Event
of Default” and/or a timely cure of such default.

     

    Except for the Notice
described herein, ClearPoint waives presentment for payment, demand, notice of
nonpayment, notice of protest, and protest of this Confession of Judgment, and
all notices in connection with delivery, acceptance, performance or default of
the payment of this Confession of Judgment. ClearPoint consents to any and all
extensions, renewals, waivers or modifications that may be granted to Alliance
with respect to the payment or other provisions of this Confession of
Judgment.

    Alliance
shall not by any act of omission or commission be deemed to waive any of its
rights or remedies hereunder.

     

    
      
        
        

      

      
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    IN
WITNESS WHEREOF, this Confession of Judgment has been duly executed this
17th day of September, 2009.

     

    
      
        	 	

                CLEARPOINT
      RESOURCES, INC.

              	 
	 	 	 	 
	 	 	 	 
	
              	
                By:
      

              	/s/ Michael
      Traina	 
	 	 	

                Michael
      Traina

              	 
	 	 	 	 
	 	Date:   
      	September
      17, 2009	 

      

    

    

    
      
        
        

      

      
        6 of
6EXHIBIT
10.2

    

    FIRST AMENDMENT TO AMENDED
AND RESTATED FINANCING AGREEMENT

    

    This
FIRST AMENDMENT TO AMENDED AND RESTATED FINANCING AGREEMENT (this “Amendment”) is
entered into as of September 9, 2008, by and among Frederick’s of Hollywood
Group Inc., a New York corporation (“Group”), FOH Holdings, Inc., a
Delaware corporation (the “Parent”), Frederick’s of Hollywood, Inc., a Delaware
corporation (“Frederick’s”), Frederick’s of Hollywood Stores, Inc., a
Nevada corporation (“Stores”), Hollywood Mail Order, LLC, a Nevada limited
liability company (“Mail Order” and collectively with Group, the Parent,
Frederick’s and Stores, individually, a “Borrower”, and collectively, the
“Borrowers”), and Wells Fargo Retail Finance II, LLC, a Delaware limited
liability company, in its capacity as Lender and as arranger and agent for the
Lenders (in such capacity, the “Agent”).

     

    RECITALS

    

    A.           WHEREAS,
the Borrowers, the Lenders and the Agent are parties to that certain Amended and
Restated Financing Agreement, dated as of January 28, 2008 (as heretofore
amended, restated or otherwise modified, the “Financing
Agreement”);

    

    B.           WHEREAS,
the Borrowers have requested that the Agent and the Lenders agree to certain
modifications to the Financing Agreement;

    

    C.           WHEREAS,
the Agent and the Lenders are willing to agree to such modifications upon the
terms and subject to the conditions set forth herein.

    

    NOW,
THEREFORE, in consideration of the premises and the mutual agreements herein
contained, and for other valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Agent, the Lenders and the Borrowers agree as
follows:

     

    1.           Definitions.  Unless
otherwise defined herein, initial capitalized terms have the meanings given to
them in the Financing Agreement.

    

    2.           Amendments.  Upon
the Amendment Effective Date (as hereinafter defined), the Financing Agreement
is hereby amended as follows:

    

    
      	
               
      

            	
              A.

            	
              The
      definition of “Qualified Import Letter of Credit” in Section 1.01 of the
      Financing Agreement is amended and restated to read in its entirety as
      follows:

            

    

     

    “ “Qualified Import Letter of
Credit” means an Import Letter of Credit that, as of any date of
determination, (a) is issued to facilitate the purchase by the applicable
Borrower of Eligible Inventory, (b) is in form and substance acceptable to the
Agent, (c) expires within forty five (45) days after such date of determination,
and (d) is issued in connection with a Letter of Credit Guaranty by the
L/C Issuer and is only drawable by the beneficiary thereof by the
presentation of, among other documents, either (i) a negotiable bill of lading
that is consigned to the Agent (either directly or by means of endorsements) and
that was issued by the carrier respecting the subject Eligible Inventory, or
(ii) a negotiable cargo receipt that is consigned to the Agent (either directly
or by means of endorsements) and that was issued by a consolidator respecting
the subject Eligible Inventory; provided, however, that, in the
latter case, no bill of lading shall have been issued by the carrier (other than
a bill of lading consigned to the consolidator or to the
Agent).”

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    3.           Conditions to
Effectiveness.

    

    (a)           This
Amendment shall become effective upon the satisfaction (or waiver by the Agent)
of each of the following conditions (the first date on which said conditions
have been so satisfied (or so waived), the “Amendment Effective
Date”):

     

    
      	
               
      

            	
              (i)

            	
              The
      Borrowers, the Agent and the Lenders shall each have executed and
      delivered two originals of this
Amendment;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              on
      the Amendment Effective Date, no Default or Event of Default shall exist;
      and

            

    

    

    
      	
               
      

            	
              (iii)

            	
              The
      Borrowers shall have paid all reasonable fees, costs and expenses of the
      Agent and the Lenders in connection with this Amendment, including,
      without limitation, the fees and expenses of Proskauer Rose,
      LLP.

            

    

    

    (b)           If
the Amendment Effective Date shall not have occurred by the close of business
(New York time) on September 9, 2008 (or such later time as the Agent consents
to in writing), this Amendment shall be deemed rescinded, null and
void.

     

    4.           No
Waiver.  Except as expressly stated herein, nothing herein
shall be deemed to constitute a waiver of compliance with, or other modification
of, any term or condition contained in the Financing Agreement or any other Loan
Document and nothing contained herein shall constitute a course of conduct or
dealing among the parties hereto.  Except as expressly stated herein,
the Agent and the Lenders reserve all rights, privileges and remedies under the
Loan Documents.

    

    5.           Representations.  In
order to induce the Agents and the Lenders to execute this Amendment, the
Borrowers hereby represent, warrant and covenant to the Agent and the Lenders
that as of the date hereof and as of the Amendment Effective Date (which
representations, warranties and covenants shall survive execution and delivery
of this Amendment):

    

    
      	
               
      

            	
              (i)

            	
              the
      Borrowers are duly organized, validly existing and in good standing under
      the laws of their respective jurisdictions of
  formation;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              the
      Borrowers have the power and authority to execute, deliver and perform
      their obligations under this
Amendment;

            

    

    

    
      	
               
      

            	
              (iii)

            	
              the
      execution, delivery and performance by the Borrowers of this Amendment has
      been duly authorized by all necessary action and does not and will not
      require any registration with, consent or approval of, notice to or action
      by, any other Person;

            

    

    
      
         

      

      
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              (iv)

            	
              this
      Amendment constitutes the legal, valid and binding obligation of the
      Borrowers, enforceable against the Borrowers in accordance with its terms;
      and

            

    

    

    
      	
               
      

            	
              (v)

            	
              no
      Default or Event of Default exists.

            

    

    

    6.           Counterparts.  This
Amendment may be executed by the parties hereto in any number of separate
counterparts, each of which when so executed, shall be deemed an original and
all said counterparts when taken together shall be deemed to constitute but one
and the same instrument.

    

    7.           Successors and
Assigns.  This Amendment shall be binding upon and inure to the
benefit of the Borrowers and their successors and permitted assigns, and the
Lenders and the Agent and their successors and permitted assigns.

    

    8.           Further
Assurance.  The Borrowers hereby agree from time to time, as
and when requested by the Agent, to execute and deliver or cause to be executed
and delivered, all such documents, instruments and agreements and to take or
cause to be taken such further or other action as the Agent may reasonably deem
necessary or desirable in order to carry out the intent and purposes of this
Amendment.

    

    9.           GOVERNING
LAW.  THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED AND
ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO
ITS CONFLICT OF LAWS PROVISIONS OTHER THAN SECTION 5-1401 OF THE GENERAL
OBLIGATIONS LAW OF THE STATE OF NEW YORK).

    

    10.          Severability.  Wherever
possible, each provision of this Amendment shall be interpreted in such manner
as to be effective and valid under applicable law, but if any provision of this
Amendment shall be prohibited by or invalid under such law, such provision shall
be ineffective to the extent of such prohibition or invalidity without
invalidating the remainder of such provision or the remaining provisions of this
Amendment.

    

    11.          Reaffirmation.  Each
Borrower hereby ratifies and reaffirms all of its payment and performance
obligations, contingent or otherwise, under each of the Loan Documents to which
it is a party (after giving effect hereto).  Each Borrower hereby
acknowledges that, except as expressly modified herein, each of the Loan
Documents, remains in full force and effect and is hereby ratified and
reaffirmed.

    
      
         

      

      
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    12.           Acknowledgment of Rights;
Release of Claims.  Each Borrower hereby acknowledges that:
(a) it has no defenses, claims or set-offs to the enforcement by the Agent
or the Lenders of the liabilities, obligations and agreements of the Borrowers
under the Financing Agreement or other Loan Documents on the date hereof; and
(b) to its knowledge, the Agent and the Lenders have fully performed all
undertakings and obligations owed to it as of the date hereof.  In
consideration of the Agent and the Lenders entering into this Amendment, each
Borrower hereby irrevocably releases and forever discharges the Agent, the
Lenders and their respective Affiliates, and each such Person’s respective
directors, officers, employees, agents, attorneys and representatives (each, a
“Released
Person”) of and from all damages, losses, claims, demands, liabilities,
obligations, actions or causes of action whatsoever which such Borrower may now
have or claim to have against any Released Person for or because of any matter
or thing done, omitted or suffered to be done or omitted by any of the Released
Persons prior to and including the date hereof and on account of or in any way
concerning, arising out of or founded upon the Financing Agreement or any other
Loan Document, whether presently known or unknown and of every nature and extent
whatsoever.  This Section 12 shall survive the termination of the
Financing Agreement and payment in full of the Obligations
thereunder.

    

    [Signature
Pages Follow]

     

    
      
        
        

      

      
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    IN WITNESS WHEREOF, the parties hereto
have caused this First Amendment to Amended and Restated Financing Agreement to
be duly executed by their respective duly authorized officers as of the date
first written above.

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          	
                                                  BORROWERS:

                                                
	 
      	 
      
	
                                                  FREDERICK’S
      OF HOLLYWOOD GROUP INC.

                                                
	 
      	 
      
	
                                                  By:

                                                	
                                                  /s/ Thomas Rende

                                                
	 
      	
                                                  Name:
      Thomas Rende

                                                
	 
      	
                                                  Title:
      Chief Financial Officer

                                                
	 
      	 
      
	
                                                  FOH
      HOLDINGS, INC.

                                                
	 	 
	
                                                  By:

                                                	
                                                  /s/ Linda LoRe

                                                
	 
      	
                                                  Name:
      Linda LoRe

                                                
	 
      	
                                                  Title:
      President and CEO

                                                
	 
      	 
      
	
                                                  FREDERICK’S
      OF HOLLYWOOD, INC.

                                                
	 	 
	
                                                  By:

                                                	
                                                  /s/ Linda LoRe

                                                
	 
      	
                                                  Name:
      Linda LoRe

                                                
	 
      	
                                                  Title:
      President and CEO

                                                
	 
      	 
      
	
                                                  FREDERICK’S
      OF HOLLYWOOD STORES, INC.

                                                
	 	 
	
                                                  By:

                                                	
                                                  /s/ Linda LoRe

                                                
	 
      	
                                                  Name:
      Linda LoRe

                                                
	 
      	
                                                  Title:
      President and CEO

                                                
	 
      	 
      
	
                                                  HOLLYWOOD
      MAIL ORDER, LLC

                                                
	 
      	 
      
	
                                                  By:

                                                	
                                                  FOH
      Holdings, Inc., its Manager

                                                
	 
      	 
      
	 
      	
                                                  By:  /s/ Linda LoRe

                                                
	 
      	
                                                  Name:
      Linda LoRe

                                                
	 
      	
                                                  Title:
      President and
CEO

                                                

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  	
                                          AGENT

                                        
	 
      	 
      
	
                                          WELLS
      FARGO RETAIL FINANCE II, LLC

                                        
	 	 
	
                                          By:

                                        	
                                          /s/ Joseph Burt

                                        
	 
      	
                                          Name:  Joseph
      Burt

                                        
	 
      	
                                          Title:  Vice
      President

                                        
	 
	
                                          LENDER

                                        
	 
      	 
      
	
                                          WELLS
      FARGO RETAIL FINANCE II, LLC

                                        
	 	 
	
                                          By:

                                        	
                                          /s/ Joseph Burt

                                        
	 
      	
                                          Name:  Joseph
      Burt

                                        
	 
      	
                                          Title:  Vice
      President

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