Exhibit 10.5 FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT THIS FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT (the “Amendment”),dated as of June 28th, 2000, is entered into between CONGRESS FINANCIALCORPORATION (SOUTHWEST), a Texas corporation (“Lender”), and ALLIED FASHION,INC., a Delaware corporation (“Borrower”). RECITAL A. Borrower and Lender have previously entered into that certain Loan andSecurity Agreement dated April 2, 1999, (the “Loan Agreement”), pursuant towhich Lender has made certain loans and financial accommodations available toBorrower. Terms used herein without definition shall have the meanings ascribedto them in the Loan Agreement. B. Lender and Borrower wish to further amend the Loan Agreement under theterms and conditions set forth in this Amendment. Borrower is entering into thisAmendment with the understanding and agreement that, except as specificallyprovided herein, none of Lender’s rights or remedies as set forth in the LoanAgreement is being waived or modified by the terms of this Amendment. NOW, THEREFORE, in consideration of the foregoing and the mutual covenantsherein contained, and for other good and valuable consideration, the receipt andsufficiency of which are hereby acknowledged, the parties hereby agree asfollows: 1. Amendments to Loan Agreement. (a) Section 1.28 of the Loan Agreement is hereby amended to read in its entirety as follows “Maximum Credit” shall mean, with reference to the Revolving Loans and the Letter of Credit Accommodations, the amount of Ten Million Dollars ($10,000,000). 2. Amendment Fee. Borrower shall pay Lender an amendment fee in the amountof Five Thousand Dollars ($5,000) for the processing and approval of thisAmendment, which fee will be fully earned on the date of this Amendment. 3. Effectiveness of this Amendment. Lender must have received thefollowing items, in form and content acceptable to Lender, before this Amendmentis effective and before Lender is required to extend any credit to Borrower asprovided for by this Amendment. (a) Amendment. This Amendment fully executed in a sufficient number of counterparts for distribution to Lender and Borrower. (b) Representations and Warranties. The representations and warranties set forth herein and in the Loan Agreement must be true and correct. (c) Payment of Fee. Borrower shall have paid the Amendment Fee required by Section 3. (d) Other Required Documentation. All other documents and legal matters in connection with the transaction contemplated by this Amendment shall have been delivered or executed or recorded and shall be in form and substance satisfactory to Lender. 4. Representations and Warranties. The Borrower represents and warrants asfollows: (a) Authority. The Borrower has the requisite corporate power and authority to execute and deliver this Amendment, and to perform its obligations hereunder and under the Financing Agreements (as amended or modified hereby) to which it is a party. The execution, delivery and performance by the Borrower of this Amendment have been duly approved by all necessary corporate action, have received all necessary governmental approval, if any, and do not contravene any law or any contractual restrictions binding on Borrower. No other corporate proceedings are necessary to consummate such transactions. (b) Enforceability. This Amendment has been duly executed and delivered by the Borrower. This Amendment and each Financing Agreement (as amended or modified hereby) is the legal, valid and binding obligation of Borrower, enforceable against Borrower in accordance with its terms, and is in full force and effect. (c) Representations and Warranties. The representations and warranties contained in each Financing Agreement (other than any such representations or warranties that, by their terms, are specifically made as of a date other than the date hereof) are correct on and as of the date hereof as though made on and as of the date hereof. (d) No Default. After giving effect to this Amendment, no event has occurred and is continuing that constitutes an Event of Default. 5. Choice of Law. The validity of this Amendment, its construction,interpretation and enforcement, the rights of the parties hereunder, shall bedetermined under, governed by, and construed in accordance with the internallaws of the State of New York governing contracts only to be performed in thatState. 6 . Counterparts. This Amendment may be executed in any number ofcounterparts and by different parties and separate counterparts, each of whichwhen so executed and delivered, shall be deemed an original, and all of which,when taken together, shall constitute one and the same instrument. Delivery ofan executed counterpart of a signature page to this Amendment by telefacsimileshall be effective as delivery of a manually executed counterpart of thisAmendment. 2 7. Reference to and Effect on the Financing Agreements. (a) Upon and after the effectiveness of this Amendment, each reference in the Loan Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Loan Agreement, and each reference in the other Financing Agreements to “the Loan Agreement”, “thereof” or words of like import referring to the Loan Agreement, shall mean and be a reference to the Loan Agreement as modified and amended hereby. (b) Except as specifically amended above, the Loan Agreement and all other Financing Agreements, are and shall continue to be in full force and effect and are hereby in all respects ratified and confirmed and shall constitute the legal, valid, binding and enforceable obligations of Borrower to Lender. (c) The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of Lender under any of the Financing Agreements, nor constitute a waiver of any provision of any of the Financing Agreements. (d) To the extent that any terms and conditions in any of the Financing Agreements shall contradict or be in conflict with any terms or conditions of the Loan Agreement, after giving effect to this Amendment, such terms and conditions are hereby deemed modified or amended accordingly to reflect the terms and conditions of the Loan Agreement as modified or amended hereby. 8. Ratification. Borrower hereby restates, ratifies and reaffirms each andevery term and condition set forth in the Loan Agreement, as amended hereby, andthe Financing Agreements effective as of the date hereof. 9. Estoppel. To induce Lender to enter into this Amendment and to continueto make advances to Borrower under the Loan Agreement, Borrower herebyacknowledges and agrees that, after giving effect to this Amendment, as of thedate hereof, there exists no Event of Default and no right of offset, defense,counterclaim or objection in favor of Borrower as against Lender with respect tothe Obligations. 3 IN WITNESS WHEREOF, the parties have entered into this Amendment as ofthe date first above written. “BORROWER” ALLIED FASHION INC., a Delaware corporation By: /s/ Anthony M. Orofi ————————- Title: VP Finance ————————- “LENDER” CONGRESS FINANCIAL CORPORATION (SOUTHWEST), a Texas corporation By: /s/ Joe T. Curdy ————————- Title: AVP ————————- 4