Document:

Exhibit 10.1

Exhibit 10.1

AMENDMENT NO. 3

TO

AMENDED & RESTATED FINANCING AGREEMENT

This Amendment No. 3 to Amended & Restated Financing Agreement (this “Amendment No.
3”) is entered into as of August 31, 2009, by and among G-III Leather Fashions, Inc., a New
York corporation (“G-III Inc.”), J. Percy for Marvin Richards, Ltd., a New York corporation
(“JPMR”), CK Outerwear, LLC, a New York limited liability company (“CKO”), A. Marc
& Co., Inc., a New York corporation (“AMC”), Andrew & Suzanne Company Inc., a New York
corporation (“A&S”), AM Retail Group, Inc., a Delaware corporation (“AMRGI”, and
together with G-III Inc., JPMR, CKO, AMC and A&S, individually a “Company” and
collectively, the “Companies”), JPMorgan Chase Bank N.A. (“JPMC”), The CIT
Group/Commercial Services, Inc., a New York corporation (“CIT”) (JPMC, CIT and the other
financial institutions which are now or hereafter become a party to the Financing Agreement (as
hereafter defined) each a “Lender” and collectively, “Lenders”), and JPMC, as
successor agent to CIT, as agent for Lenders (JPMC, in such capacity, “Agent”).

BACKGROUND

The Companies, Agent and Lenders are parties to an Amended and Restated Financing Agreement,
dated as of April 3, 2008 (as amended by Joinder and Amendment No. 1 to Amended and Restated
Financing Agreement dated as of July 21, 2008, Amendment No. 2 to Amended and Restated Financing
Agreement dated as of April 20, 2009 and as further amended, restated, modified and/or supplemented
from time to time, the “Financing Agreement”) pursuant to which Agent and Lenders provide
the Companies with certain financial accommodations.

The Companies require the issuance of certain Letters of Credit. One of the Lenders, JPMC, is
willing to issue such Letters of Credit, on the condition that it be the primary Issuing Bank for
the Companies under the terms of the Financing Agreement. Agent and Lenders are willing to amend
certain of the terms of the Financing Agreement as hereinafter set forth.

NOW, THEREFORE, in consideration of any loan or advance or grant of credit heretofore or
hereafter made to or for the account of the Companies by Agent and Lenders, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto hereby agree as follows:

1. Definitions. All capitalized terms not otherwise defined herein shall have the
meanings given to them in the Financing Agreement.

 

 

 

2. Amendments to Financing Agreement. Subject to satisfaction of the conditions
precedent set forth in Section 3 below, the Financing Agreement is hereby amended as follows:

(a) Section 1.1 of the Financing Agreement is hereby amended by adding the following
definitions in their appropriate alphabetical order:

Letter of Credit Disbursement shall mean a payment made by the Primary
Issuing Bank pursuant to a Letter of Credit issued by the Primary Issuing Bank.

Primary Issuing Bank shall mean JPMorgan Chase Bank, N.A. as the primary
Issuing Bank issuing Letters of Credit for the Companies.

Primary Issuing Bank Letters of Credit shall mean all Letters of Credit
issued by Primary Issuing Bank pursuant to Section 5A of this Financing Agreement.

(b) Section 1.1 of the Financing Agreement is hereby further amended by restating the
definitions of the terms “Applicable Margin,” “Issuing Bank” and “Letters of Credit” to provide as
follows:

Applicable Margin shall mean, with respect to (a) the Revolving Loans, plus
0.75% for Chase Bank Rate Loans and 3.00% for LIBOR Loans, (b) standby Letters of
Credit, 1.50%, (c) documentary Letters of Credit, 0.125%, or (d) Bankers
Acceptances, the discount rate of JPMorgan Chase Bank, N.A. plus 2.50%.

Issuing Bank shall mean, as applicable, Primary Issuing Bank or any other
Lender issuing a Letter of Credit for a Company, a Bankers Acceptance, a Steamship
Guaranty or an Airway Release with respect to such Letter of Credit.

Letters of Credit shall mean all Primary Issuing Bank Letters of Credit and
any and all other standby or documentary letters of credit issued for or on behalf
of a Company with the assistance of the Lenders (acting through the Agent) by an
Issuing Bank in accordance with Section 5 hereof. Without limiting the
foregoing, as used herein the term Letters of Credit shall include the Existing
Letters of Credit.

(c) Section 1.1 of the Financing Agreement is hereby further amended by restating clause (a)
of the definition of the term Obligations to provide as follows:

(a) all loans, advances and other extensions of credit made by the Lenders, or the
Agent for the account of the Lenders, to the Companies (or any of them), or to
others for the Companies’ account (including, without limitation, all Revolving
Loans, all Letters of Credit (including, without limitation, all Indebtedness due
and owing Primary Issuing Bank by the Companies in connection with Letters of
Credit, including all reimbursement obligations and fees and expenses (including
legal expenses) incurred in connection therewith), Bankers Acceptances, Steamship
Guarantees and Airway Releases and all obligations of the Agent under Letter of
Credit Guaranties);

 

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(d) Section 5 of the Financing Agreement is hereby amended by inserting a new Section 5A,
entitled “Primary Issuing Bank Letters of Credit”, immediately after paragraph 5.8, to
provide as follows:

5A.1. Subject to the terms and conditions set forth herein, including
without limitation the forgoing provisions of Section 5, as applicable, any
of the Companies may request the issuance of Letters of Credit for its own
account from the Primary Issuing Bank, or, in the event that the Primary
Issuing Bank declines such request and/or the Companies at any time elect to
utilize another Lender for the purpose of issuing any Letter of Credit, such
other Lender, in each case in a form reasonably acceptable to the Agent and
the applicable Issuing Bank. In the event of any inconsistency between the
terms and conditions of this Agreement and the terms and conditions of any
form of letter of credit application or other agreement submitted by the
Companies to, or entered into by the Companies with, the Issuing Bank
relating to Letters of Credit, the terms and conditions of this Agreement
shall control.

5A.2. If requested by the Issuing Bank, the Company requesting the Letter of
Credit also shall submit a letter of credit application on the Issuing
Bank’s standard form in connection with the request for the issuance of the
Letter of Credit.

5A.3. By the issuance of a Letter of Credit (or any amendment to a Letter of
Credit increasing the amount thereof) and without any further action on the
part of the Issuing Bank or the Lenders, the Issuing Bank hereby grants to
each Lender, and each Lender hereby acquires from the Issuing Bank, a
participation in the applicable Letter of Credit equal to such Lender’s
applicable Pro Rata Share of the aggregate amount available to be drawn
under such Letter of Credit (the “Letter of Credit Exposure”). In
consideration and in furtherance of the foregoing, each Lender hereby
absolutely and unconditionally agrees to pay to the Issuing Bank, such
Lender’s applicable Pro Rata Share of each Letter of Credit Disbursement
made by the Issuing Bank and not reimbursed by the Companies on the date due
as provided in paragraph 5A.4 of this Section, or of any reimbursement
payment required to be refunded to the Companies for any reason. Each
Lender acknowledges and agrees that its obligation to acquire participations
pursuant to this paragraph in respect of Letters of Credit issued by the
Issuing Bank is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including any amendment, renewal or extension of
the applicable Letter of Credit or the occurrence and continuance of a
Default or Event of Default or reduction or termination of the Commitments,
and that each such payment shall be made without any offset, abatement,
withholding or reduction whatsoever.

 

3

 

5A.4. If the Issuing Bank shall make any Letter of Credit Disbursement in
respect of a Letter of Credit, the Companies shall reimburse such Letter of
Credit Disbursement by paying to the Issuing Bank an amount equal to such
Letter of Credit Disbursement not later than 11:00 a.m., New York time, on
the first Business Day following the date that the Companies receive notice
of such Letter of Credit Disbursement. If the Companies fail
to make such payment when due, the Issuing Bank shall promptly notify Agent,
which shall promptly notify each Lender of the applicable Letter of Credit
Disbursement, the payment then due from the Companies in respect thereof and
such Lender’s applicable Pro Rata Share thereof. Promptly following receipt
of such notice, each Lender shall pay to the Agent, for the benefit of the
Issuing Bank, its applicable Pro Rata Share of the payment then due from the
Companies, in the same manner as provided in Section 3.1(d) with respect to
Revolving Loans made by such Lender (and Section 3.1(d) shall apply,
mutatis mutandis, to the payment obligations of the
Lenders), and the Agent shall promptly pay to the Issuing Bank the amounts
so received by it from the Lenders. Any payment made by a Lender pursuant
to this paragraph to reimburse the Issuing Bank for any Letter of Credit
Disbursement (other than the funding of Revolving Loans as contemplated
above) shall not constitute a Loan and shall not relieve the Companies of
their obligation to reimburse such Letter of Credit Disbursement.

5A.5. The Companies’ obligation to reimburse the Letter of Credit
Disbursements as provided in paragraph 5A.4 shall be absolute, unconditional
and irrevocable, and shall be performed strictly in accordance with the
terms of this Agreement under any and all circumstances whatsoever and
irrespective of (i) any lack of validity or enforceability of any Letter of
Credit or this Agreement, or any term or provision therein, (ii) any draft
or other document presented under any Letter of Credit proving to be forged,
fraudulent or invalid in any respect or any statement therein being untrue
or inaccurate in any respect, (iii) payment by the Issuing Bank under a
Letter of Credit against presentation of a draft or other document that does
not comply with the terms of such Letter of Credit, or (iv) any other event
or circumstance whatsoever, whether or not similar to any of the foregoing,
that might, but for the provisions of this Section, constitute a legal or
equitable discharge of, or provide a right of setoff against, the Companies’
obligations hereunder. Neither the Agent, the Lenders nor the Issuing Bank,
nor any of their Affiliates, nor any of the respective directors, officers,
employees, agents and advisors of the Agent, any Lender, the Issuing Bank,
or any of their Affiliates, shall have any liability or responsibility by
reason of or in connection with the issuance or transfer of any Letter of
Credit or any payment or failure to make any payment thereunder
(irrespective of any of the circumstances referred to in the preceding
sentence), or any error, omission, interruption, loss or delay in
transmission or delivery of any draft, notice or other communication under
or relating to such Letter of Credit (including any document required to
make a drawing thereunder), any error in interpretation of technical terms
or any consequence arising from causes beyond the control of the Issuing
Bank; provided that the foregoing shall not be construed to excuse
the Issuing Bank from liability to the Companies to the extent of any direct
damages (as opposed to consequential damages, claims in respect of which are
hereby

 

4

 

waived by the Companies to the extent permitted by applicable law) suffered by the
Companies that are caused by the Issuing Bank’s failure to exercise care
when determining whether drafts and other documents presented under any
Letter of Credit comply with the terms thereof. The parties hereto
expressly agree that, in the absence of gross negligence or willful
misconduct on the part of the Issuing Bank (as finally determined by a court
of competent jurisdiction), the Issuing Bank shall be deemed to have
exercised care in each such determination. In furtherance of the foregoing
and without limiting the generality thereof, the parties agree that, with
respect to documents presented which appear on their face to be in
substantial compliance with the terms of a Letter of Credit, the Issuing
Bank may, in its sole discretion, either accept and make payment upon such
documents without responsibility for further investigation, regardless of
any notice or information to the contrary, or refuse to accept and make
payment upon such documents if such documents are not in strict compliance
with the terms of such Letter of Credit.

5A.6. The Issuing Bank shall, promptly following its receipt thereof,
examine all documents purporting to represent a demand for payment under any
Letter of Credit. The Issuing Bank shall promptly notify the Agent and the
Companies by telephone (confirmed by facsimile) of such demand for payment
and whether the Issuing Bank has made or will make a Letter of Credit
Disbursement thereunder; provided that any failure to give or delay
in giving such notice shall not relieve the Companies of their obligation to
reimburse the Issuing Bank and the Lenders with respect to any such Letter
of Credit Disbursement.

5A.7. If the Issuing Bank shall make any Letter of Credit Disbursement,
then, unless the Companies shall reimburse such Letter of Credit
Disbursement in full on the date such Letter of Credit Disbursement is made,
the unpaid amount thereof shall bear interest, for each day from and
including the date such Letter of Credit Disbursement is made to but
excluding the date that the Companies reimburse such Letter of Credit
Disbursement, at the rate per annum then applicable to Revolving Loans;
provided that, if the Companies fail to reimburse such Letter of
Credit Disbursement when due pursuant to Section 5A.4, then Section 8.2
shall apply. Interest accrued pursuant to this paragraph shall be for the
account of the Issuing Bank, except that interest accrued on and after the
date of payment by any Lender pursuant to Section 5A.4 to reimburse the
Issuing Bank shall be for the account of such Lender to the extent of such
payment.

5A.8. The Companies shall pay (i) to the Agent for the pro rata benefit of
each Lender a one time issuance fee in an amount equal to the Applicable
Margin on the face amount of each Letter of Credit issued by an Issuing Bank
under this Section 5A (the “LC Fee”), and (ii) to the Issuing Bank its
standard fees (“Standard Fees”) with respect to the issuance, amendment,
renewal or extension of each Letter of Credit or processing or disbursements
thereunder. The LC Fees shall be payable to the Agent upon the issuance (or
renewal) of each Letter of Credit and shared with each Lender at the end of
each month. All Standard Fees payable to the Issuing Bank pursuant to this
paragraph shall be payable within 10 days after demand.

 

5

 

(e) Paragraph 8.3(a) of the Financing Agreement shall be amended in its entirety to provide as
follows:

(a) Letter of Credit Guaranty Fee; Bankers Acceptance Fee and Steamship
Guaranty and Airway Release Fees. In consideration of the issuance of any
Letter of Credit Guaranty by the Agent or other assistance of the Agent and
the Lenders in obtaining Letters of Credit and/or Bankers Acceptances
pursuant to Section 5 hereof, the Companies agree to pay to the
Agent, for the ratable benefit of the Lenders (based upon their respective
Pro Rata Percentages), a Letter of Credit Guaranty Fee equal to the
Applicable Margin on the face amount of each Letter of Credit (such Letter
of Credit Guaranty Fee to be paid at a per annum rate in advance with
respect to standby Letters of Credit and on the date of issuance of
documentary Letters of Credit) and a Bankers Acceptance Fee equal to the
Applicable Margin per annum on the face amount of each Bankers Acceptance
(such Bankers Acceptance Fee to be paid at a per annum rate in advance).
All Letter of Credit Guaranty Fees and/or Bankers Acceptance Fees shall be
due and payable on the date of issuance and each date of renewal of the
applicable Letter of Credit, and/or Bankers Acceptance. In consideration of
the issuance of Steamship Guarantees and/or Airway Releases pursuant to
Section 5 hereof, the Companies agree to pay to the applicable
Issuing Bank its standard fees with respect to the issuance, amendment,
renewal or extension of each Steamship Guaranty and/or Airway Release or
processing or disbursements thereunder, which such fees shall be due and
payable on the date of each issuance, amendment, renewal or extension of
each Steamship Guaranty and/or Airway Release or processing or disbursements
thereunder.

(f) Section 10.4 of the Financing Agreement shall be amended in its entirety to provide as
follows:

Application of Proceeds. The Agent agrees to apply the net cash
proceeds resulting from the Agent’s exercise of any of the foregoing rights
(after deducting all Out-of-Pocket Expenses relating thereto) to the payment
of the Obligations in the following order:

(a) first, to all unpaid Out of Pocket Expenses;

(b) second, to all accrued and unpaid fees owed to the Agent and the
Lenders;

 

6

 

(c) third, to accrued and unpaid interest on the Obligations (other than
with respect to Banking Services Obligations and Swap Contracts, and
excluding Ledger Debt);

(d) fourth, to the unpaid principal amount of the Obligations (other than
with respect to Banking Services Obligations and Swap Contracts, and
excluding Ledger Debt), including without limitation Letter of Credit
Disbursements and all other reimbursement obligations and fees and expenses
due and owing Primary Issuing Bank or any other Issuing Bank with respect to
Letters of Credit;

(e) fifth, to provide cash collateral for any outstanding Letters of Credit,
Bankers Acceptances, Steamship Guarantees or Airway Releases;

(f) sixth, to pay any amounts owed to the Agent or any of the Lenders with
respect to Banking Services Obligations and Swap Contracts; and

(g) seventh, to any unpaid Obligations not described in clauses (a) through
(f) above.

3. Conditions of Effectiveness. This Amendment No. 3 shall become effective as of the
date hereof upon satisfaction of the following conditions: Agent shall have received:

(a) Fourteen (14) copies of this Amendment No. 3 duly executed by Companies, Agent and
Required Lenders, and consented to by each Guarantor; and

(b) such other certificates, instruments, documents and agreements as may reasonably be
required by Agent or its counsel, each of which shall be in form and substance satisfactory to
Agent and its counsel.

4. Representations and Warranties. Each of the Companies hereby represents, warrants
and covenants as follows:

(a) This Amendment No. 3, the Financing Agreement and the other Loan Documents are and shall
continue to be legal, valid and binding obligations of each of Companies and Guarantors,
respectively, and are enforceable against each Company and each Guarantor in accordance with their
respective terms.

(b) Upon the effectiveness of this Amendment No. 3, each Company and each Guarantor hereby
reaffirms all covenants, representations and warranties made in the Financing Agreement and the
other Loan Documents and agree that all such covenants, representations and warranties shall be
deemed to have been remade and are true and correct in all material respects as of the effective
date of this Amendment No. 3, after giving effect to this Amendment No. 3, provided, however, that
the information contained in the Schedules attached to the Financing Agreement continues to be
true, correct and complete as of the Closing Date, and there have been no changes to such matters
as of the date hereof except to the extent any such change would not have a Material Adverse
Effect, constitute a Default or Event or Default, or otherwise require notice to the Agent in
accordance with the terms of the Financing Agreement.

 

7

 

(c) Each Company and each Guarantor has the corporate or limited liability company power, and
has been duly authorized by all requisite corporate or limited liability company action, to execute
and deliver this Amendment No. 3 and to perform its obligations hereunder. This Amendment No. 3
has been duly executed and delivered by each Company and consented to by each Guarantor.

(d) Each Company has no defense, counterclaim or offset with respect to any of the Loan
Documents.

(e) The Loan Documents are in full force and effect, and are hereby ratified and confirmed.

(f) The recitals set forth in the Background section above are truthful and accurate and are
an operative part of this Amendment No. 3.

(g) Agent and Lenders have and will continue to have a valid first priority lien and security
interest in all Collateral except for liens permitted by the Financing Agreement, and each Company
and each Guarantor expressly reaffirms all guarantees, security interests and liens granted to
Agent and Lenders pursuant to the Loan Documents.

(h) No Defaults or Events of Default are in existence.

5. Effect of Agreement.

(a) Except as specifically modified herein, the Financing Agreement, and all other documents,
instruments and agreements executed and/or delivered in connection therewith, shall remain in full
force and effect, and are hereby ratified and confirmed.

(b) The execution, delivery and effectiveness of Amendment No. 3 shall not operate as a
waiver of any right, power or remedy of Agent or any Lender, nor constitute a waiver of any
provision of the Financing Agreement, or any other documents, instruments or agreements executed
and/or delivered under or in connection therewith.

6. Governing Law. This Amendment No. 3 shall be binding upon and inure to the benefit
of the parties hereto and their respective successors and assigns and shall be governed by and
construed in accordance with the laws of the State of New York.

7. Headings. Section headings in this Amendment No. 3 are included herein for
convenience of reference only and shall not constitute a part of this Amendment No. 3 for any other
purpose.

8. Counterparts; Facsimile. This Amendment No. 3 may be executed by the parties
hereto in one or more counterparts, each of which shall be deemed an original and all of which when
taken together shall constitute one and the same agreement. Any signature delivered by a party by
facsimile or other electronic transmission (including in “pdf” format) shall be deemed to be an
original signature hereto.

[signature pages follow]

 

8

 

IN WITNESS WHEREOF, this Amendment No. 3 has been duly executed as of the day and year first
written above.

	 	 	 	 	 
	 	G-III LEATHER FASHIONS, INC., as

a Company and the Funds Administrator

 	 
	 	By:  	/s/ Neal S. Nackman
 	 
	 	 	Name:  	Neal S. Nackman 	 
	 	 	Title:  	Vice President — Finance 	 
	 
	 	J. PERCY FOR MARVIN RICHARDS, LTD.,
 as a Company

 	 
	 	By:  	/s/ Neal S. Nackman
 	 
	 	 	Name:  	Neal S. Nackman 	 
	 	 	Title:  	Secretary 	 
	 	

CK OUTERWEAR, LLC, as a Company

 	 
	 	By:  	/s/ Neal S. Nackman
 	 
	 	 	Name:  	Neal S. Nackman 	 
	 	 	Title:  	Secretary 	 
	 	

A. MARC & CO., INC., as a Company

 	 
	 	By:  	/s/ Neal S. Nackman
 	 
	 	 	Name:  	Neal S. Nackman 	 
	 	 	Title:  	Vice President — Finance and Secretary 	 
	 	

ANDREW & SUZANNE COMPANY INC.,
 as a Company

 	 
	 	By:  	/s/ Neal S. Nackman
 	 
	 	 	Name:  	Neal S. Nackman 	 
	 	 	Title:  	Vice President — Finance and Secretary 	 

Signature page to Amendment No. 3

 

 

 

	 	 	 	 	 
	 	AM RETAIL GROUP, INC., as a Company

 	 
	 	By:  	/s/ Michael C. Brady
 	 
	 	 	Name:  	Michael C. Brady 	 
	 	 	Title:  	Controller and Vice President 	 
	 
	 	JPMORGAN CHASE BANK, N.A., as Lender and
 as Agent

 	 
	 	By:  	/s/ Donna M. DiForio
 	 
	 	 	Name:  	Donna M. DiForio
 	 
	 	 	Title:  	Vice President 	 
	 	

THE CIT GROUP/COMMERCIAL SERVICES, INC.,
 as Lender

 	 
	 	By:  	/s/ Edward J. Ahearn
 	 
	 	 	Name:  	Edward J. Ahearn 	 
	 	 	Title:  	Senior Vice President 	 
	 	
HSBC BANK USA, NATIONAL ASSOCIATION, 
as Lender

 	 
	 	By:  	/s/ Michael Behuniak
 	 
	 	 	Name:  	Michael Behuniak 	 
	 	 	Title:  	First Vice President 	 
	 	
SOVEREIGN BANK, as Lender

 	 
	 	By:  	/s/ Paul Ferrara
 	 
	 	 	Name:  	Paul Ferrara 	 
	 	 	Title:  	Vice President 	 

Signature page to Amendment No. 3

 

 

 

	 	 	 	 	 
	 	ISRAEL DISCOUNT BANK OF NEW YORK, as 
Lender

 	 
	 	By:  	/s/ Irene B. Spector
 	 
	 	 	Name:  	Irene B. Spector 	 
	 	 	Title:  	Vice President 	 
	 	 	 
	 	By:  	                    /s/ George Commander
 	 
	 	 	Name:  	George Commander 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	
TD BANK, N.A., as Lender

 	 
	 	By:  	/s/ Martin Noren
 	 
	 	 	Name:  	Martin Noren 	 
	 	 	Title:  	Vice President 	 
	 	

SIGNATURE BANK, as Lender

 	 
	 	By:  	/s/ Robert A. Bloch
 	 
	 	 	Name:  	Robert A. Bloch 	 
	 	 	Title:  	Senior Vice President 	 
	 	

BANK LEUMI USA, as Lender

 	 
	 	By:  	/s/ Iris Steinhardt
 	 
	 	 	Name:  	Iris Steinhardt 	 
	 	 	Title:  	Vice President 	 
	 	 	 
	 	By:  	                       /s/ Jeremy Fernandez
 	 
	 	 	Name:  	Jeremy Fernandez 	 
	 	 	Title:  	Banking Officer 	 

Signature page to Amendment No. 3

 

 

 

	 	 	 	 	 
	 	WEBSTER BUSINESS CREDIT, as Lender

 	 
	 	By:  	/s/ Daniel C. Dupre
 	 
	 	 	Name:  	Daniel C. Dupre 	 
	 	 	Title:  	Vice President 	 
	 	

BANK OF AMERICA, N.A., as Lender

 	 
	 	By:  	/s/ Richard M. Williams
 	 
	 	 	Name:  	Richard M. Williams 	 
	 	 	Title:  	Senior Vice President 	 
	 	

WACHOVIA BANK, N.A., as Lender

 	 
	 	By:  	/s/ Robert Maichin
 	 
	 	 	Name:  	Robert Maichin 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	ACKNOWLEDGED AND AGREED TO

BY EACH OF THE GUARANTORS:

G-III APPAREL GROUP, LTD.

 	 
	 	By:  	/s/ Neal S. Nackman
 	 
	 	 	Name:  	Neal S. Nackman 	 
	 	 	Title:  	Chief Financial Officer and Treasurer 	 
	 	

G-III RETAIL OUTLETS, INC.

 	 
	 	By:  	/s/ Neal S. Nackman
 	 
	 	 	Name:  	Neal S. Nackman 	 
	 	 	Title:  	Vice President — Finance 	 

Signature page to Amendment No. 3

 

 

 

	 	 	 	 	 
	 	G-III LICENSE COMPANY, LLC

 	 
	 	By:  	G-III Apparel Group, Ltd.
 	 
	 	 	 	 
	 	By:  	             /s/ Neal S. Nackman
 	 
	 	 	Name:  	Neal S. Nackman 	 
	 	 	Title:  	Chief Financial Officer & Treasurer 	 
	 	

G-III BRANDS, LTD.

 	 
	 	By:  	/s/ Neal S. Nackman
 	 
	 	 	Name:  	Neal S. Nackman 	 
	 	 	Title:  	Vice President — Finance 	 
	 	

AM APPAREL HOLDINGS, INC.

 	 
	 	By:  	/s/ Michael C. Brady
 	 
	 	 	Name:  	Michael C. Brady 	 
	 	 	Title:  	Treasurer 	 
	 	

ASH RETAIL CORP.

 	 
	 	By:  	/s/ Michael C. Brady
 	 
	 	 	Name:  	Michael C. Brady 	 
	 	 	Title:  	Treasurer 	 
	 	

ASH RETAIL OF EASTHAMPTON, INC.

 	 
	 	By:  	/s/ Michael C. Brady
 	 
	 	 	Name:  	Michael C. Brady 	 
	 	 	Title:  	Treasurer 	 

Signature page to Amendment No. 3exv10w1

EXHIBIT 10.1

SECOND AMENDMENT TO STOCK SALE AGREEMENT

     THIS SECOND AMENDMENT TO STOCK SALE AGREEMENT (this “Amendment”), dated as of
September 14, 2009, is by and among AVASTRA SLEEP CENTRES LIMITED (in liquidation) f/k/a Avastra,
Ltd., an Australian corporation (“Parent”), AVASTRAUSA, INC., a Delaware corporation
(“Seller”), and SDC HOLDINGS, LLC, an Oklahoma limited liability company (“Buyer”).

     A. Parent, Seller and Buyer are parties to that certain Stock Sale Agreement, dated August 19,
2009 (the “Original Agreement”).

     B. The parties amended the Original Agreement pursuant to that certain First Amendment to
Stock Sale Agreement dated August 23, 2009, pursuant to which Buyer acquired the Somni Stock and
will acquire the Eastern Stock (the “First Amendment”). The Original Agreement as amended
by the First Amendment is referred to herein as the “Agreement”.

     C. The parties desire to amend the Agreement as set forth in this Amendment.

     D. Capitalized terms used in this Amendment unless otherwise defined in this Amendment shall
have the meaning given to such terms in the Agreement.

     NOW, THEREFORE, in consideration of the premises, and the mutual representations, warranties,
covenants and agreements hereinafter set forth, the parties agree as follows

     1. Section 3(b) of the Agreement. The parties agree that paragraph (ii) of subsection
(b) of Section 3 of the Agreement is hereby deleted in its entirety and replaced by the following:

“(ii) US$1,156,000 in cash to be paid at the direction of Seller to
Parent on the closing of the acquisition of the Eastern stock; and”

     2. Section 3(b) of the Agreement.

          (a) The parties agree that paragraph (iii) of subsection (b) of Section 3 of the Agreement is
hereby deleted in its entirety and replaced by the following:

“(iii) an amount of US$1,344,000 to be paid at the direction of
Seller to Parent in the form of common stock of Graymark Healthcare,
Inc. based on the average of the closing NASDAQ sale price for the
common stock for the twenty (20) trading days prior to the closing
on the Eastern Stock.”

          (b) The parties agree that the paragraph immediately following paragraph (iii) of subsection
(b) of Section 3 of the Agreement is hereby deleted in its entirety and replaced by the following:

 

 

“The common stock issued as consideration for the Eastern Stock
under (iii) above will be subject to a 12-month lockup agreement
that will prohibit the transfer of the shares for a period of twelve
months, and for the next twelve months, Parent may only transfer 25%
of the shares in any three month period. Graymark will allow a
representative of Parent to be an advisory (non-voting) member of
Graymark’s board of directors (the “Advisory Director”)
provided, however, that such representative must be reasonably
acceptable to the Chairman of the Board of Directors of Graymark.
Such Advisory Director shall be entitled to all notices of and
written consents in lieu of meetings and may attend all meetings of
directors. All fees, costs and expenses associated with such
Advisory Director’s attendance at all meetings of directors,
including, but not limited to, roundtrip commercial first class
airfare, accommodations at a hotel of such Advisory Director’s
reasonable choosing and reimbursement for any meals and other
transportation expenses reasonably incurred by the Advisory Director
in connection with his or her attendance at such meetings of
directors, shall be paid by Graymark up to a maximum of US$5,000 per
meeting. Parent’s right to have the Advisory Director shall
terminate at such time as Parent owns less than 100,000 shares of
the Graymark Stock.”

     3. Section 6(a) of the Agreement. The parties agree that Section 6(a) of the
Agreement is replaced in its entirety by Section 4 of the First Amendment (as amended by this
Amendment) and by Section 5 and Section 6 of this Amendment.

     4. Section 4 of the First Amendment. The first four paragraphs (everything before
subsection (a) of Section 4) of the First Amendment are hereby deleted in their entirety and
replaced with the following:

“The following is a list of assumptions made by Buyer in determining
the Purchase Price for the Somni Entities (collectively, the
“Somni Assumptions”).”

     5. Assumptions Regarding the Condition of the Eastern Entity. Except as otherwise set
forth on Parent/Seller’s Disclosure Schedule attached hereto, the following is a list of
assumptions made by Buyer in determining the Purchase Price for the Eastern Entity (together with
the Somni Assumptions, the “Assumptions”).

          (a) Authorization. The execution and delivery of the Agreement, the performance by
Seller and Parent of their obligations under the Agreement and this Amendment and the consummation
by Seller and Parent of the transactions contemplated by the Agreement and this Amendment (i) have
been duly authorized by all requisite corporate action on the part of Seller and Parent, and (ii)
do not violate any applicable law.

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          (b) Authority. The Eastern Entity has all necessary power and authority to own,
operate or lease the assets now owned, operated or leased by it and to carry on its business as it
has been and is currently conducted.

          (c) Subsidiaries. There are no corporations, partnerships, joint ventures,
associations or other entities in which the Eastern Entity owns, of record or beneficially, any
equity interests.

          (d) Capital Interests. Seller owns all of the issued and outstanding capital stock of
the Eastern Entity free and clear of all liens and encumbrances (exclusive of any restrictions
under applicable federal or state securities laws or under the Eastern Entity’s certificate of
incorporation or bylaws) and is transferring all such capital stock to Buyer pursuant to the
Agreement.

          (e) Minute Books. The minute book of the Eastern Entity contains accurate records of
all meetings and accurately reflects all other actions taken by the holders of capital stock of the
Eastern Entity and the board of directors of such the Eastern Entity. A complete and accurate copy
of such minute book has been delivered by Seller to Buyer for review.

          (f) Financial Information; Books and Records. Seller (i) has delivered to Buyer true
and complete copies of the unaudited consolidated balance sheet of Seller for each of the two
fiscal years ended June 30, 2008 and 2009, and the related unaudited statements of income of
Seller, accompanied by the reports thereon of Seller’s accountants (collectively referred to herein
as the “Financial Statements”) and (ii) has delivered to Buyer true and complete copies of
the unaudited balance sheet of the Eastern Entity for the fiscal years ended June 30, 2008 and 2009
and the related statements of income for the period then ending (such unaudited balance sheets and
statements of income, collectively the “Eastern Financial Statements”). The Financial
Statements and the Eastern Financial Statements (i) were prepared in accordance with the books of
account and other financial records of Seller and the Eastern Entity, (ii) are complete and
accurate in all material respects, (iii) present fairly the financial condition and results of
operations of Seller and the Eastern Entity, as of the dates thereof or for the periods covered
thereby, (iv) were prepared in accordance with U.S. GAAP on a basis consistent with the past
practices of Seller and the Eastern Entity (with the exception that the Eastern Financial
Statements lack certain information and footnote disclosures normally included in financial
statements prepared in accordance with U.S. GAAP) and (v) include all adjustments (consisting only
of normal recurring accruals) that are necessary to present fairly in all material respects the
financial condition of Seller and the Eastern Entity and the results of the operations of Seller
and the Eastern Entity as of the dates thereof or for the periods covered thereby. For purposes of
this Amendment, “2009 Balance Sheet” mean the Balance Sheet of the Eastern Entity as of
June 30, 2009 included within the Eastern Financial Statements.

          (g) Absence of Undisclosed Liabilities. The Eastern Entity has not incurred any
liabilities, other than liabilities (i) as are reflected or reserved against in the Eastern
Financial Statements (or the notes thereto), (ii) incurred in the ordinary course of business
consistent with past practices since July 1, 2009, or (iii) that would not be required to be
disclosed in financial statements if audited statements were prepared in accordance with U.S. GAAP.

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          (h) Cash Balances. The cash available in the bank accounts of the Eastern Entity as
of September 14, 2009 is substantially the same as reflected in the 2009 Balance Sheet subject to
changes for deposits and payments in the ordinary course of business.

          (i) Asset Information. All fixed assets on the 2009 Balance Sheet represent
identifiable assets of the Eastern Entity.

          (j) Accounting Policies. Since July 1, 2007, there have been no changes in accounting
policy, method or estimates that impacted the recorded revenue of the Eastern Entity in fiscal year
2008 or 2009.

          (k) Accounts Receivable. Accounts receivable reflected in the Eastern Financial
Statements and those arising after June 30, 2009: (i) represent actual good and collectable claims
for services provided; (ii) were billed in compliance with all applicable laws; (iii) were billed
in material compliance with all third party requirements; (iv) are collectable at a rate of at
least 75% of the net value thereof; provided, however, that no representations are made by Seller
or Parent with respect to the collectibility of the intercompany receivables reflected in the
Eastern Financial Statements. As of September 14, 2009, the net value of all the accounts
receivable of the Eastern Entity are substantially the same as the amounts reflected in the Eastern
Financial Statements, subject to changes in the ordinary course of business. Pursuant to the Asset
Purchase Agreement (as such term is defined in Section 5(n)), Rifkin has a security interest in
certain of the accounts receivable of the Eastern Entity transferred by Rifkin (as defined below)
(or his affiliates), to the Eastern Entity in connection with such Asset Purchase Agreement. It is
contemplated that such security interest will be released at closing of the acquisition of the
Eastern Stock.

          (l) Compliance with Laws. The Eastern Entity has conducted its business in material
compliance with all applicable laws.

          (m) Taxes. Each of the Eastern Entity and Seller has filed all tax returns that it was
required to file under applicable laws and will file all income tax returns and pay all income
taxes related to the fiscal year ending June 30, 2009 and the stub period ending as of September
14, 2009. All such tax returns were or upon filing will be, correct and complete in all material
respects and have been or will be prepared in compliance with all applicable laws. The Eastern
Entity has not ever been a party to any tax allocation or sharing agreement.

          (n) Title and Sufficiency of Assets. The Eastern Entity has good and marketable title
to, or, in the case of leased or subleased assets, valid and subsisting leasehold interests in, all
its assets, free and clear of all liens and encumbrances. The Eastern Entity owns or otherwise has
the right to use all the properties, assets and rights used in the conduct of its business as
presently conducted.

          (o) Litigation. There are no lawsuits, arbitrations or similar proceedings pending by
or against the Eastern Entity nor has Seller or the Eastern Entity sent or received written
correspondence threatening such lawsuits, arbitrations or similar proceedings.

          (p) Contracts. Seller has provided Buyer with true, accurate and complete copies
(either in hard copy or electronic copy form) of each material contract or agreement

-4-

 

(including all real estate leases) to which the Eastern Entity is a party. The Eastern Entity
is not in breach of, or default under, any such contract or agreement.

          (q) Acquisition Documentation. Seller has provided Buyer with true, accurate and
correct copies of all correspondence and documentation related to the transactions pursuant to
which (i) the Eastern Entity acquired its business and/or (ii) Seller obtained ownership of the
Eastern Stock.

          (r) Ordinary Course. Since July 1, 2009, the Eastern Entity has operated only in the
ordinary course of business consistent with past practice.

          (s) Effect of Transaction. In connection with the sale and acquisition of the Eastern
Stock as contemplated by the Agreement, the Eastern Entity will not suffer a material adverse
effect resulting from a change in control provision under any contract or agreement to which it is
a party.

          (t) Directed Payments. All payments and all obligations assumed by Buyer pursuant to
this Agreement are in consideration of the acquisition of the Somni Stock and the Eastern Stock
from Seller. Any payments to Parent by Buyer or obligations of Parent assumed by Buyer pursuant to
this Agreement are being paid to Parent or assumed by Buyer, as the case may be, for the benefit of
Seller and at Seller’s direction in partial payment of the outstanding principal balance of
existing debt obligations of Seller owed to Parent (the “Debt Obligations”). The gross
amount of stated interest payable with respect to the Debt Obligations on the date hereof,
calculated in accordance with United States Treasury Regulation 1.1441-3(b)(1) is $3,423,730.
Parent does not carry on business in the United States through a “permanent establishment” as that
term is defined in Article 5 of the Convention Between the Government of the United States of
America and the Government of Australia for the Avoidance of Double Taxation and the Prevention of
Fiscal Evasion With Respect to Taxes on Income, dated August 6, 1982.

     6. Remedies for Breach. If any of the Assumptions prove to be inaccurate, Buyer shall
have a claim for the damages actually incurred by Buyer as a result of the particular Assumptions
being inaccurate, solely as follows:

          (a) against Seller and only for a period of eighteen (18) months following September 14, 2009.
Furthermore, Seller’s maximum aggregate liability for all such claims shall be $3,000,000; and

          (b) against Parent for a period of one (1) year following September 14, 2009 and solely to the
extent of the Graymark Healthcare, Inc. (“Graymark”) common stock delivered to Parent in
connection with the closing of the acquisition of the Eastern Stock (the “Graymark Stock”)
as described in Section 3(b)(iii) of the Agreement. Notwithstanding the one-year limitation
described immediately above, the parties agree that, after such one year period, a claim may be
brought for an Assumption being proven to be inaccurate against the Parent for an additional period
of six (6) months, but only to the extent of the Graymark Stock that remains subject to a
prohibition on transfer as set forth in the Lock-Up and Stock Pledge Agreement, dated as of
September 14, 2009, by and among Graymark, Parent, Buyer and Seller. For

-5-

 

purposes of illustration, the parties intend that on the first day of the first month
following the one-year anniversary of September 14, 2009 that only seventy-five percent (75%) of
the Graymark Stock issued to Parent shall be subject to claims under the Agreement, as amended
hereby, and that on the first day of the fourth month following the one-year anniversary of
September 14, 2009, that only fifty percent (50%) of the Graymark Stock issued to Parent shall be
subject to claims under the Agreement, as amended hereby, and that on the first day of the seventh
month following the one-year anniversary of September 14, 2009, that no Graymark Stock issued to
the Parent shall be subject to claims under the Agreement, as amended hereby.

     The parties further agree that no claim may be brought for any Assumption being proven to be
inaccurate, regardless of the amount of the claim, against any of Parent’s officers or directors,
or the administrators of Parent, or liquidators appointed to Parent, or any of the officers or
directors of Seller. The remedies described in this Section 6 shall be the sole and exclusive
remedy with respect to any and all claims of any Assumptions being proven to be inaccurate. To the
extent this Section 6 is inconsistent with the provisions of Section 6(b) of the Agreement, the
provisions of this Section 6 shall prevail.

     Notwithstanding anything in the Agreement, this Amendment, or the Lock-Up and Stock Pledge
Agreement, dated as of the date hereof, by and between Graymark, SDC, Parent and Seller (the
“Lock-Up Agreement”) to the contrary, no claim for damages by Buyer may be satisfied by
offset against the Graymark Stock unless (i) Parent consents to the settlement of such claim or
(ii) a binding decision is made by an arbitrator with regard to such claim (in accordance with
Section 10 of the Agreement) where the Parent was a named party to the arbitration.

     The parties acknowledge and agree that the Assumptions are being used to allocate various
risks between Buyer, on the one hand, and Seller and Parent, on the other hand, and whilst there
may be inaccuracies in the Assumptions it is understood that no inference of intent, fraud,
misrepresentation or the like on the part of Seller and Parent should be drawn from the existence
of any such inaccuracies.

     7. Section 10 of Agreement. Section 10 of the Agreement is hereby amended and
restated in its entirety as follows:

     “10. Arbitration. In the event of any dispute or any
action or proceeding arising under or in connection with this
Agreement, the parties shall resolve such dispute only by
arbitration with a single arbitrator, conducted in Oklahoma City,
Oklahoma, by the American Arbitration Association pursuant to its
Commercial Arbitration Rules. Notwithstanding the choice of law
provisions set forth in Section 9, the Federal Arbitration Act shall
govern all proceedings brought hereunder.”

     8. Delivery of Stock Certificates. As soon as practical after the date hereof, Buyer
shall cause a certificate representing the Graymark Stock to be issued by Graymark in the name
of Parent and delivered to Buyer to be held pursuant to the terms of the Lock-Up Agreement.
Upon receipt of the certificate, Buyer shall provide a copy to Parent.

-6-

 

     9. Ratification. Except as amended by this Amendment, all of the terms, covenants and
conditions of the Agreement are hereby ratified and confirmed and shall remain in full force and
effect.

     10. Counterparts. This Amendment may be signed executed in any number of
counterparts. A counterpart may be a facsimile or an electronic copy. Together all counterparts
make up one document.

     11. Withholding Cooperation. With respect to the Withholding Amount identified in
the Closing Statement dated on or about the date hereof and executed in connection with the closing
of the sale and acquisition of the Eastern Stock (the “Withholding Amount”), Buyer agrees
(i) to promptly remit to the U.S. Internal Revenue Service (the “IRS”) the Withholding
Amount; (ii) to, promptly after such remittance, verify to Parent in writing such remittance and,
all to the extent available to Buyer under the electronic filing procedures prescribed by the IRS,
provide to Parent copies of the final return(s) accompanying such remittance, as well as evidence
of the remittance itself; (iii) to, thereafter, take, at the request of Parent, all other actions,
execute all documents and provide all information as reasonably requested or necessary to assist
Parent with obtaining a refund of the Withholding Amount from the IRS; (iv) other than the
withholding and remittance of the Withholding Amount pursuant to United States Treasury Regulation
1.1441-3(b)(1), not to take any position or action inconsistent with the intent and understanding
of Parent and Seller that all payments paid to Parent or obligations assumed by Buyer, as the case
may be, pursuant to the Agreement, as amended, were in partial payment of the outstanding principal
balance (and not interest payments) on the Debt Obligations; and (v) that Parent shall be entitled
to any refunded amount of the Withholding Amount, that any refunded amount shall not be deemed an
adjustment to the purchase price for the Somni Stock or the Eastern Stock, and that neither Buyer
nor Graymark shall have any right to any portion thereof. The parties agree that all actions
taken pursuant to subparagraphs (i) and (ii) above shall be at the sole cost and expense of Buyer,
and all actions taken at the request of Parent pursuant to subparagraph (iii) above shall be at the
sole cost and expense of Parent.

[Signature Pages to Follow]

-7-

 

     IN WITNESS WHEREOF, the parties have duly executed this Amendment, all as of the date first
written above.

	 	 	 	 	 
	SELLER: 	 AVASTRAUSA, INC.

 	 
	 	By  	/S/ MILTON ERMAN
 	 
	 	 	Name:  	Milton Erman 	 
	 	 	Title:  	President 	 
	 
	PARENT 	AVASTRA SLEEP CENTRES LIMITED

 	 
	 	By  	/S/ JOHN SHEAHAN
 	 
	 	 	Name:  	John Sheahan 	 
	 	 	Title:  	Administrator 	 
	 
	BUYER: 	SDC HOLDINGS, LLC

 	 
	 	By  	/S/ STANTON NELSON
 	 
	 	 	Name:  	Stanton Nelson 	 
	 	 	Title:  	CEO

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