Document:

Unassociated Document

    Exhibit
      10.1

    

    CONVERSION
      AGREEMENT

    

    This
      Conversion Agreement (the “Agreement”)
      is
      entered into as of the 9th
      day of
      May, 2008, by and between I.C. Isaacs & Company, Inc., a Delaware company
      (referred to herein as the “Company”
or
      “Borrower”,
      as the
      context requires), and Textile Investment International S.A., a Luxembourg
      company (referred to herein as the “Purchaser”
or
      “Lender”,
      as the
      context requires).

    

      WITNESSETH:

    

    

    WHEREAS,
      the Borrower and Lender are parties to that certain 8% Amended and Restated
      Subordinated Secured Promissory Note (the “Note”),
      dated
      as of December 30, 2004;

    

    WHERERAS,
      the principal amount of $2,103,461, remains outstanding under the Note on the
      date hereof, together with accrued and unpaid interest in the amount of
      $761,579, as of May 9, 2008 (the “Debt”);

    

    WHEREAS,
      the Company desires to issue and sell and the Purchaser desires to purchase
      from
      the Company, in the aggregate 14,325,200 of newly issued shares of common stock
      of the Company (the “Common
      Stock”);
      

    

    WHEREAS,
      Purchaser agrees, in consideration for the purchase of the Shares, to forgive
      in
      its entirety the Debt under the Note; and

    

    WHEREAS,
      the parties hereto desire to set forth certain agreements and certain terms
      and
      conditions regarding the sale and purchase of the shares of Common Stock and
      the
      forgiveness of the Debt under the Note;

    

    NOW,
      THEREFORE, the parties hereto hereby agree as follows:

    

    

    ARTICLE
      I

    

    Sale
      and
      Purchase of Shares; Closing

    

    Section
      1.1. Sale
      and Purchase of Shares; Purchase Price. 

    

    (a) Upon
      the
      terms and subject to the conditions of this Agreement, the Purchaser agrees
      to
      purchase from the Company, and the Company agrees to issue and sell to the
      Purchaser, on the “Closing
      Date”
(as
      defined herein), 14,325,200 shares of Common Stock (the “Company
      Shares”)
      in
      consideration for the forgiveness of the Debt under the Note (the “Purchase
      Price”)
      pursuant to that certain Debt Forgiveness Agreement (a copy of which is attached
      as Annex
      A
      hereto).

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Section
      1.2. Closing.

    

    (a) The
      closing of the transactions under this Agreement (the “Closing”)
      shall
      take place at the offices of Kramer Levin Naftalis & Frankel LLP, 1177
      Avenue of the Americas, New York, New York 10036, at 10:00 a.m. (NY time) on
      the
      date hereof (the “Closing
      Date”).
      

    

    Section
      1.3.
       Deliveries
      at Closing.
      At the
      Closing:

    

    (a) The
      Company shall deliver to the Purchaser a certificate representing the Company
      Shares; except that a certificate for 4,675 of the Company Shares deliverable
      to
      the Purchaser shall be delivered pursuant to Section
      1.4
      hereof.

    

    (b) The
      Purchaser shall deliver to the Company the Debt Forgiveness Agreement.

     

    (c) The
      Company shall provide evidence reasonably satisfactory to the Purchasers that
      the following agreements have been or will be concurrently herewith entered
      into
      (and in the case of (ii) and (iv) below, the transactions thereunder consummated
      at Closing): (i) that certain notice of election of extension of employment
      agreement, (ii) that certain stock purchase agreement by and between the
      Company, Textile Investment International S.A. and the other parties thereto
      (the “Investor
      Stock Purchase Agreement”);
      (iii)
      that certain investor rights agreement between the Company, the Purchasers
      and
      Wurzburg Holding, S.A. (the “IRA”);
      (iv)
      that certain stock purchase agreement by and between the Company and Robert.
      S.
      Stec and (v) those two certain license amendment agreements to the men’s and
      women’s collections, respectively (copies of all such agreements which are
      attached hereto as Annex
      B,
      collectively with the Debt Forgiveness Agreement, the “Related
      Documents”).

    

    (d) The
      Company shall provide evidence reasonably satisfactory to the Purchasers that
      the Wachovia consent (consenting to the transactions contemplated by and the
      terms of this Agreement and the Related Documents and confirming that the Third
      Amendment to Loan and Security Agreement remains in full force and effect)
      has
      been or will be concurrently with the Closing received. 

    

    Section
      1.4. Additional
      Share Certificate.
      The
      Company shall deliver to the Purchaser within three (3) business days after
      the
      date hereof a certificate for the 4,675 Company Shares which were not delivered
      to the Purchaser at Closing.

    

    
      
        
        

      

      
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    ARTICLE
      II

    

    Representations
      and Warranties of the Company

    

    The
      Company, represents and warrants to, and covenants and agrees with the Purchaser
      as follows:

    

    Section
      2.1. Organization
      and Good Standing.
      The
      Company is a corporation duly organized, validly existing and in good standing
      under the laws of the State of Delaware. The Company has no subsidiaries other
      than I.C. Isaacs & Company L.P. and Isaacs Design, Inc. of which both are
      operating subsidiaries. The subsidiaries are duly organized, validly existing
      and in good standing under the laws of the State of Delaware. The Company and
      each of its subsidiaries have all requisite corporate power or limited
      partnership power, as the case may be, and authority to own their properties
      and
      assets and carry on their businesses as now conducted, and are duly qualified
      and in good standing as foreign corporations in each jurisdiction in which
      the
      location or nature of their property or the character of their businesses make
      such qualification necessary, except where the failure to be so qualified would
      not have a material adverse affect, financial or otherwise, on the business,
      condition, assets, properties, liabilities or results of operations of the
      Company or its subsidiaries. 

    

    Section
      2.2. Corporate
      Power; Authorization; Binding Agreements.
      The
      Company has the corporate power and authority to execute and deliver this
      Agreement and the Related Documents and to perform its obligations hereunder
      and
      thereunder. The execution, delivery and performance of this Agreement and the
      Related Documents, the issuance and sale by the Company of the Company Shares
      hereunder and the consummation by the Company of the transactions contemplated
      hereby and by the Related Documents have been duly authorized by all necessary
      action, corporate or otherwise, on the part of the Company. This Agreement,
      the
      Related Documents and the other agreements of the Company required to consummate
      the transactions contemplated hereunder and thereunder have been duly executed
      and delivered by, and constitute valid and binding obligations of, the Company
      and are enforceable in accordance with their terms subject to the qualifications
      that enforcement of the rights and remedies created hereby is subject to (i)
      bankruptcy, insolvency, reorganization, moratorium and other laws of general
      application affecting rights and remedies of creditors, and (ii) general
      principals of equity (regardless of whether such enforcement is considered
      in a
      proceeding in equity or at law).

    

    Section
      2.3. Capitalization;
      Valid Issuance.
      The
      authorized capital stock of the Company consists of 50,000,000 shares of Common
      Stock, of which 13,740,127 shares are issued and 12,563,418 are outstanding
      on
      the date hereof, and 5,000,000 shares of Preferred Stock, of which no shares
      are
      issued and outstanding on the date hereof. Except as disclosed in the Form
      10-K
      (as defined herein), there are no outstanding or authorized options, warrants,
      purchase rights, subscription rights, conversion rights, exchange rights, or
      other contracts or commitments that could require the Company or any subsidiary
      to issue, sell, or otherwise cause to become outstanding any of its capital
      stock. The aggregate number of shares of common stock of the Company reserved
      or
      required to be reserved by the Company for all such derivative securities,
      contracts and commitments is 3,250,000. There are no outstanding or authorized
      stock appreciation, phantom stock, profit participation, or similar rights
      with
      respect to the Company. There are no preemptive rights with respect to the
      issuance or sale of the Company Shares or registration rights. All of the
      presently outstanding shares of Common Stock have been duly and validly
      authorized and issued and are fully paid and non-assessable. The Company Shares
      to be issued hereunder have been duly and validly authorized and, when delivered
      and paid for pursuant to this Agreement, will be validly issued, fully paid and
      non-assessable. Assuming the accuracy of the Purchasers’ representations and
      warranties in Article
      III,
      the
      Company Shares are being offered and sold pursuant to an exemption from the
      registration requirements of the Securities Act of 1933, as amended (the
“Act”).
      In
      connection with the offer and sale of the Company Shares, neither the Company,
      any affiliate of the Company nor any person acting on the Company’s or such
      affiliates’ behalf has engaged in any form of general solicitation or general
      advertising, as those terms are used in Rule 502(c) of the Act.

     

    
      
        
        

      

      
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    Section
      2.4. Compliance
      with Other Instruments.
      The
      execution, delivery and performance of this Agreement and the Related Documents
      will not conflict with or, with or without notice or the lapse of time, result
      in any default or in any modification of (i) any provision of the articles
      of incorporation or by-laws or comparable organizational instruments of the
      Company or any subsidiary thereof or (ii) the terms of any contract, agreement,
      obligation, commitment, license, indenture, mortgage, deed of trust, loan or
      credit agreement or any other agreement or instrument to which the Company
      or
      any subsidiary thereof is a party or any of their assets are bound, or the
      creation of any lien, charge or encumbrance of any nature upon any of the
      properties or assets of the Company or any subsidiary thereof. The execution,
      delivery and performance of this Agreement by the Company will not violate
      any
      judgment, decree, statute, rule or regulation of any federal, state or local
      government or agency having jurisdiction over the Company or any subsidiary
      thereof or any of their assets.

    

    Section
      2.5. Brokerage.
      No
      broker, finder, agent or similar intermediary has acted on the Company’s behalf
      in connection with the transactions contemplated by this Agreement and there
      are
      no brokerage commissions, finder’s fees or similar items of compensation payable
      in connection therewith based on any agreement made by or on behalf of the
      Company. The Company will indemnify and hold the Purchasers harmless from and
      against any liability or any expense arising out of any such claim.

    

    Section
      2.6.  Consents,
      etc.
      No
      consent, approval, waiver or authorization of or designation, declaration or
      filing with any governmental or regulatory authority or any other person is
      required in connection with the valid execution and delivery of this Agreement
      or the Related Documents, the offer, sale and issuance of the Company Shares
      or
      the consummation of the transactions contemplated by this Agreement or the
      Related Documents, except for filings that may be required to comply with
      applicable federal and state securities laws.

    

    Section
      2.7. No
      Governmental Proceeding or Litigation.
      No
      suit, action, investigation, inquiry or other proceeding by any governmental
      body or other person or legal or administrative proceeding has been instituted
      or, to the Company’s knowledge, threatened which questions the validity or
      legality of the transactions contemplated hereby or by the Related Documents
      or
      would reasonably be expected to have a material adverse effect on the
      Company.

    

    Section
      2.8. Special
      Committee.
      The
      transactions contemplated by this Agreement, the IRA and the Investor Stock
      Purchase Agreement have been unanimously approved by the Special Committee
      of
      the Board of Directors. The Special Committee has determined, after receiving
      and based upon the advice of its financial and legal advisors and after
      consideration of the Company’s limited options for raising external capital and
      the impact on the Company’s net operating losses, that the consideration to be
      paid for the Company Shares pursuant to, and the transactions contemplated
      by,
      this Agreement, the IRA and the Investor Stock Purchase Agreement, are fair
      to
      and in the best interests of the Company’s stockholders and the transactions
      contemplated by this Agreement, the IRA and the Investor Purchase Agreement
      are
      in the best interests of the Company’s creditors. The foregoing determination is
      reflected in all material respects in the minutes of the meetings of the Special
      Committee held on April 29, 2008, May 2, 2008 and May 5, 2008, certified copies
      of which have been provided to the Purchasers. 

     

    
      
        
        

      

      
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    Section
      2.9. Form
      10-K.
      The
      Company’s Annual Report on Form 10-K for the year ended December 31, 2007, in
      the form delivered to the Purchasers on May 6, 2008 (the “Form
      10-K”),
      has
      been completed (subject to immaterial non-substantive language changes that
      might be made prior to filing), except for the Part III information which will
      be completed prior to May 15, 2008, is in form ready to be filed with the
      Securities and Exchange Commission (the “SEC”).
      The
      Company’s independent registered public accounting firm has confirmed to the
      Company that such firm’s audit report for the fiscal year ended December 31,
      2007 is released to the Company and that such firm will consent to the filing
      of
      the Form 10-K with the SEC when the Part III information is inserted. The Form
      10-K at the time it is filed will comply as to form in all material respects
      with the applicable requirements of the Act and the Securities Exchange Act
      of
      1934, as amended, as the case may be, the Sarbanes-Oxley Act and the rules
      and
      regulations of the SEC thereunder applicable to such Company SEC reports. The
      Form 10-K does not contain any untrue statement of a material fact or omit
      to
      state a material fact required to be stated therein or necessary in order to
      make the statements in such Form 10-K, in the light of the circumstances under
      which they were made, not misleading. 

    

    Section
      2.10. Financial
      Statements.
      Each of
      the consolidated financial statements (including, in each case, any related
      notes and schedules) contained in the Form 10-K (i) complies as to form in
      all
      material respects with applicable accounting requirements and the published
      rules and regulations of the SEC with respect thereto and (ii) were prepared
      in
      accordance with United States generally accepted accounting principles
(“GAAP”)
      applied
      on a consistent basis throughout the periods involved (except as may be
      indicated in the notes to such financial statements). The consolidated balance
      sheets (including, in each case, any related notes and schedules) contained
      in
      the Form 10-K fairly presents in all material respects the consolidated
      financial position of the Company and its subsidiaries as of the dates indicated
      and each of the consolidated statements of income and of changes in financial
      position contained in the Form 10-K (including, in each case, any related notes
      and schedules) fairly presents in all material respects the consolidated results
      of operations, retained earnings and changes in financial position, as the
      case
      may be, of the Company and its subsidiaries for the periods set forth
      therein.

    

    Section
      2.11. Loan
      Agreement; No Default.
      There
      are
      no outstanding Defaults or Events of Default (as such terms are defined in
      the
      Loan Agreement) under that certain Loan and Security Agreement dated December
      30, 2004 (as amended or otherwise modified from time to time, including but
      not
      limited to the Third Amendment thereto, the “Loan
      Agreement”)
      by and
      among I.C. Isaacs & Company, L.P., as borrower, the Company and Isaacs
      Design, Inc., as guarantors, and Wachovia. 

    

    Section
      2.12. Royalty
      Deferrals.
      There
      are no deferred royalty payments (or interest thereon) owing under the men’s or
      women’s license agreements between the Company or its subsidiaries and Latitude
      Licensing Corp. other than the four months of 2008 royalty payments being
      deferred pursuant to the license amendments which are a part of the Related
      Documents.

    

    
      
        
        

      

      
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    ARTICLE
      III

    

    Representations
      and Warranties of the Purchaser

    

    The
      Purchaser represents and warrants to, and covenants and agrees with the Company
      as follows:

    

    Section
      3.1. Authorization;
      Power; Binding Agreements.
      The
      execution, delivery and performance of this Agreement has been duly authorized
      by all necessary action of the Purchaser. The Purchaser has the full right,
      power and authority to enter into this Agreement. This Agreement constitutes
      the
      valid and binding obligation of the Purchaser, enforceable in accordance with
      its terms subject to the qualifications that enforcement of the rights and
      remedies hereby is subject to (i) bankruptcy, insolvency, reorganization,
      moratorium and other laws of general application affecting rights and remedies
      of creditors, and (ii) general principles of equity (regardless of whether
      such
      enforcement is considered in a proceeding in equity or at law).

    

    Section
      3.2. Purchase
      for Investment.
      The
      Purchaser is purchasing the Company Shares for its own account, for investment
      purposes and not with a view to, or for resale in connection with, any
      distribution or public offering thereof within the meaning of the
      Act.

    

    Section
      3.3. Unregistered
      Securities; Legend.
      The
      Purchaser understands that the securities to be acquired by it pursuant to
      this
      Agreement have not been registered under the Act, and will be issued in reliance
      upon an exemption from the registration requirements thereof. The Purchaser
      acknowledge that the certificate issued representing the Company Shares shall
      bear a restrictive legend substantially as follows:

    

    “The
      securities represented by this certificate have not been registered under the
      Securities Act of 1933, as amended, or any applicable state securities laws
      and
      may not be offered for sale, sold, transferred or conveyed without registration
      or an opinion of counsel in form and substance satisfactory to the Company
      to
      the effect that such registration is not required.”

    

    Section
      3.4. Access
      to Data; Experience; Accredited Investor.
      The
      Purchaser has had an opportunity to discuss the Company’s business plans with
      the management of the Company, and to ask questions of officers of the Company
      and to make an independent assessment of its investment in the Company Shares.
      The Purchaser has substantial experience in evaluating and investing in a
      nonliquid investment such as the Company Shares and is capable of evaluating
      the
      merits and risks of its investment in the Company. The Purchaser is an
      accredited investor as that term is defined in Rule 501 of Regulation D under
      the Act, and understands that the offer and sale of the Company Shares has
      been
      and is being made in reliance upon an exemption from registration under the
      Act.
      The Purchaser is able to withstand the loss of its entire
      investment.

    

    Section
      3.5. Brokerage.
      No
      broker, finder, agent or similar intermediary has acted on the Purchaser’s
      behalf in connection with the transactions contemplated by this Agreement and
      there are no brokerage commissions, finder’s fees or similar items of
      compensation in connection therewith based on any arrangement or agreement
      made
      by or on behalf of the Purchaser. The Purchaser will indemnify and hold the
      Company harmless against any liability or expense arising out of any such
      claim.

     

    
      
        
        

      

      
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    Section
      3.6. Organization
      and Good Standing. The
      Purchaser is a corporation duly organized, validly existing and in good standing
      under the laws of Luxembourg and has all requisite corporate power and authority
      to carry on its business as now conducted.

    

    Section
      3.7. Corporate
      Power; Authorization.
      The
      Purchaser has the corporate power and authority to execute and deliver this
      Agreement and to perform fully its obligations hereunder. The execution,
      delivery and performance of this Agreement and the consummation of the
      transactions contemplated hereby have been duly authorized by all necessary
      action on the part of the Purchaser. 

    

    Section
      3.8. No
      Conflicts or Violations.
      The
      execution, delivery and performance of this Agreement will not conflict with
      or,
      with or without notice or the lapse of time, result in any material default
      or
      in any material modification of (i) any provision of the certificate of
      incorporation or by-laws of the Purchaser or (ii) the terms of any contract,
      agreement, obligation, commitment, license, indenture, mortgage, deed of trust,
      loan or credit agreement or any other agreement or instrument to which the
      Purchaser is a party or any of its assets are bound, or the creation of any
      lien, charge or encumbrance of any nature upon any of the properties or assets
      of the Purchaser. The execution, delivery and performance of this Agreement
      by
      the Purchaser will not violate any judgment, decree, statute, rule or regulation
      of any federal, state or local government or agency having jurisdiction over
      the
      Purchaser or its assets.

     

    

    ARTICLE
      IV

    

    Miscellaneous

    

    Section
      4.1. Survival
      of Representations.
      The
      representations, warranties, covenants and agreements made herein or in any
      certificates or documents executed in connection herewith shall survive the
      execution and delivery hereof and thereof and the acquisition by the Purchaser
      of the Company Shares for a period of 36 months following the
      Closing.

    

    Section
      4.2. Parties
      in Interest.
      All
      agreements, representations and warranties contained in this Agreement by and
      on
      behalf of any of the parties hereto shall bind and inure to the benefit of
      the
      respective successors and assigns of the parties hereto, whether so expressed
      or
      not. 

    

    Section
      4.3. Entire
      Agreement; Amendments and Waivers.
      This
      Agreement (including Annex
      A)
      and the
      Related Documents contain the entire agreement among the parties with respect
      to
      the transactions contemplated hereby and thereby, and supersede all prior
      agreements, written or oral, with respect thereto. Changes in or additions
      to
      this Agreement may be made only upon written consent of the Company and the
      Purchaser.

     

    
      
        
        

      

      
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    Section
      4.4. Governing
      Law.
      This
      Agreement and the rights and obligations of the parties hereunder are to be
      governed and construed in accordance with the laws of the State of New York,
      without regard to conflicts of law principles.

    

    Section
      4.5. Notices.
      Any
      notice or other communication required or permitted hereunder shall be in
      writing and shall be delivered personally or sent by electronic mail or
      facsimile transmission, overnight courier, or certified, registered or express
      mail, postage prepaid. Any such notice shall be deemed given when so delivered
      personally or sent by electronic mail or facsimile transmission during normal
      business hours of the recipient, and if not sent during normal business hours,
      then on the recipient’s next business day, one day after deposit with an
      overnight courier, or if mailed, five (5) days after the date of deposit in
      the
      mails, as follows:

    

    

    if
      to the
      Purchaser, to:

    

    Textile
      Investment International S.A.

    41,
      Avenue de la Gare

    Luxembourg
      L-1611

    Grand
      Duchy of Luxembourg

    Fax:
      001
      352 2648 4747

    Attention:
      Rene Faltz, Managing Director

    

    with
      a
      copy to:

    

    Friedman
      Kaplan Seiler & Adelman LLP

    1633
      Broadway

    New
      York,
      New York 10019

    Fax:
      (212) 833-1250

    Attention:
      Barry A. Adelman, Esq.

    

    

    if
      to the
      Company, to:

    

    I.C.
      Isaacs & Company, Inc.

    475
      10th
      Avenue,
      9th
      Floor

    New
      York,
      New York 10018

    Fax:
      ____________________

    Attention:
      Robert S. Stec

    

    with
      a
      copy to:

    

    Kramer
      Levin Naftalis & Frankel LLP

    1177
      Avenue of the Americas

    New
      York,
      New York 10036

    Fax:
      (212) 750-8000

    Attention:
      Terrence L. Shen, Esq.

     

    
      
        
        

      

      
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    Any
      party
      may by notice given in accordance with this section to the other parties
      designate another address or person for receipt of notices
      hereunder.

    

    Section
      4.6. Counterparts.
      This
      Agreement may be executed in multiple counterparts and by facsimile, each of
      which when so executed and delivered shall be an original, but all of such
      counterparts shall together constitute one and the same instrument.

    

    Section
      4.7. Effect
      of Headings.
      The
      section and paragraph headings herein are for convenience only and shall not
      affect the construction hereof.

    

    Section
      4.8. Severability.
      This
      Agreement shall be deemed severable, and the invalidity or unenforceability
      of
      any term or provision hereof shall not affect the validity or enforceability
      of
      this Agreement or of any other term or provisions hereof. Furthermore, in lieu
      of any such invalid or unenforceable term or provision, the parties hereto
      intend that there shall be added as a part of this Agreement a provision as
      similar in terms to such invalid or unenforceable provisions as may be possible
      and be valid and enforceable.

     

    
      
        
        

      

      
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    IN
      WITNESS WHEREOF, this Agreement has been executed by the parties hereto as
      of
      the date first set forth above.

     

    
      
        	 	
                I.C.
                  Isaacs & Company, Inc.

              
	 	 	 
	 	 	 
	 	
                By:
                  

              	/s/
                Robert S. Stec
	 	
                 

              	
                Name:
                  Robert S. Stec

              
	 	
                 

              	
                Title:  
                  Chief Executive Officer

              
	 	 	 
	 	 	 
	 	
                Textile
                  Investment International S.A.

              
	 	 	 
	 	 	 
	 	
                By:
                  

              	/s/
                René
                Faltz     /s/ Tom Felgen
	 	
                 

              	
                Name:
                  René
                  Faltz & Tom Felgen

              
	 	
                 

              	
                Title:  
                  Managing Directors

              

      

    

     

    

    

    [Signature
      Page to Conversion Agreement]

     

    
      
        
        

      

      
        -
          10 -Unassociated Document

    Exhibit
      10.2

    

    DEBT
      FORGIVENESS AGREEMENT

    

    THIS
      DEBT FORGIVENESS AGREEMENT
      (this
“Agreement”)
      is
      entered into on this 9th
      day of
      May, 2008, by and between I.C. Isaacs & Company, Inc., a Delaware company
      (the “Borrower”),
      and
      Textile Investment International S.A., a Luxemburg company, (the “Lender”).

    

    WHEREAS,
      the Lender, as purchaser and Borrower, as seller are parties to that certain
      conversion agreement (the “Conversion
      Agreement”)
      dated
      as of the date hereof; and

    

    WHEREAS,
      pursuant to the Conversion Agreement, as consideration for the purchase of
      certain newly issued stock of the Borrower, the Lender is to forgive the Debt
      (as the term “Debt” is defined in the Conversion Agreement”);

    

    NOW,
      THEREFORE, the parties hereto agree as follows:

    

    1. The
      Lender hereby represents and warrants to the Borrower, that the Lender is the
      holder of the Debt under the Note (as the term “Note” is defined in the
      Conversion Agreement).

    

    2. Concurrently
      with the closing under Article I of the Conversion Agreement, the Lender hereby
      forgives and cancels the Debt, which forgiveness and cancellation is hereby
      accepted by the Borrower, and the Borrower is fully released from the Debt,
      and
      such Debt, including any obligations of payment or performance in respect of
      such debt by the Borrower, is satisfied, extinguished and discharged in its
      entirety.

    

    3. The
      forgiveness and cancellation of the Debt granted under this Agreement is
      irrevocable and irreversible.

    

    4. Each
      of
      the parties hereto shall be responsible for any tax cost that may be attributed
      to it as a result of this Agreement in accordance with applicable
      law.

    

    5. Facsimile
      transmission of any signed original document and/or retransmission of any signed
      facsimile transmission will be deemed the same as delivery of an original.
      

    

    6. This
      Agreement may be executed in one or more counterparts, each of which when
      executed shall be deemed to be an original, but all of which shall constitute
      but one and the same agreement.

    

    7. This
      Agreement and the rights and obligations of the parties hereunder are to be
      governed and construed in accordance with the laws of the State of New York,
      without regard to conflicts of law principles.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF
      the
      parties have hereunto executed this Agreement the day and year first above
      written.

    

    

    BORROWER:

    

    I.C.
      Isaacs & Company, Inc.

    

    

      
        	
                By:

              	/s/
                Robert S. Stec	 
	 	 	 
	
                Name:

              	Robert
                S. Stec	 
	 	 	 
	
                Title:

              	Chief
                Executive Officer	 

      

    

     

    

    LENDER:

    

    Textile
      Investment International S.A.

    

    

      
        	
                By:

              	/s/
                René
                Faltz     /s/ Tom Felgen	 
	 	 	 
	
                Name:

              	René
                Faltz
                & Tom Felgen	 
	 	 	 
	
                Title:

              	Managing
                Directors

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]