

<PAGE>

                                              August 31 , 1994
                                                    --

Congress Financial Corporation
1133 Avenue of the Americas
New York, NY  10036

             Re: Seventh Amendment to Financing Agreements

Gentlemen:

   Reference is made to the Accounts Financing Agreement [Security Agreement] 
between Congress Financial Corporation ("Congress") and I.C. Isaacs & Co. 
L.P. ("Borrower") dated as of June 16, 1992 ( the "Accounts Agreement") and 
all supplements thereto, and all other agreements, documents and instruments 
related thereto and executed in connection therewith including, the Covenant 
Supplement to Accounts Financing Agreement [Security Agreement], the 
Inventory and Equipment Security Agreement Supplement to Accounts Financing 
Agreement [Security Agreement] and the Trade Financing Agreement Supplement 
to Accounts Financing Agreement [Security Agreement], as from time to time 
amended, including the Fifth Amendment to Financing Agreements dated January 
1, 1994, as the same now exist or may hereafter be further amended, modified, 
supplemented, extended, renewed, restated or replaced (collectively, the 
"Financing Agreements"). Capitalized terms used herein, unless otherwise 
defined herein, shall have the meaning set forth in the Financing Agreements.

   Borrower has requested certain modifications to the Financing Agreements 
and Congress is willing to agree to such modifications, subject to the terms 
and conditions set forth herein.

   In consideration of the foregoing, and the mutual agreements and covenants 
contained herein and for other good valuable consideration, Borrower and 
Congress hereby agree as follows:

   1. Supplemental Loans. Section 2.1 of the Accounts Agreement, as amended 
by the Fifth Amendment, is hereby amended by (a) deleting all references to 
"August 31, 1994" contained therein and replacing them with "October 31, 
1994", (b) deleting all references to "August 12, 1994" contained therein and 
replacing them with "October 10, 1994", (c) deleting the reference to "August 
19, 1994" contained therein and replacing it with "October 17, 1994" and (d) 
deleting the reference to "August 26, 1994" contained therein and replacing 
it with "October 24, 1994".

   2. Extension Fee. In partial consideration of the extension of the 
repayment of the Supplemental Loans as set forth herein, Borrower agrees to 
pay Congress an extension fee in an amount equal to $25,000, payable 
simultaneously with the execution hereof, which fee is fully earned as of the 
date

<PAGE>

hereof. At Congress' option, Congress may charge such fee directly to 
Borrower's loan account.

   3. Effect and Entirety of this Amendment. Except as specifically modified 
pursuant hereto, no other changes or modifications to the Financing 
Agreements are intended or implied and, in all other respects, the Financing 
Agreements are hereby ratified and confirmed by all parties hereto as of the 
date hereof. This Amendment represents and incorporates the entire 
understanding and agreements of the parties with respect to the matters set 
forth herein and the parties hereto agree that there are no representations, 
warranties, covenants or understandings of any kind, nature or description 
whatsoever made by Congress to Borrower with respect to this Amendment, 
except as specifically set forth herein. This Amendment represents the final 
agreement between the parties as to the subject matter hereof and may not be 
contradicted by evidence or prior, contemporaneous or subsequent oral 
agreements of the parties.

   4. Waiver, Modification, Etc. No provision or term hereof may be modified, 
altered, waived, discharged or terminated orally, but only by an instrument 
in writing executed by the party against whom such modification, alteration, 
waiver, discharge or termination is sought.

   5. Further Assurances. The parties hereto shall execute and deliver such 
additional documents and take such additional action as may be necessary to 
effectuate the provisions and purposes of this Amendment.

   6. Counterparts. This Amendment may be executed in one or more 
counterparts which, taken together, shall constitute the agreement of the 
parties.

                                       Very truly yours,

                                       I.C. ISAACS & CO. L.P.

                                       By: ISBUYCO, INC., General Partner

                                           By: /s/ Gerald W. Lear
                                              --------------------
                                           Title: President
                                              --------------------
Agreed and Accepted:

CONGRESS FINANCIAL CORPORATION
By: /s/James DeSantis
   --------------------
Title: Vice President
   --------------------

                      [SIGNATURES CONTINUE ON NEXT PAGE]

                                     - 2 -

<PAGE>

                     [SIGNATURES CONTINUED FROM PREVIOUS PAGE]

ACKNOWLEDGED:

/s/ Ira Hechler
---------------------
IRA HECHLER

/s/ Robert Arnot
---------------------
ROBERT ARNOT

/s/ Gerald Lear
---------------------
GERALD LEAR

/s/ Eugene Wielepski
---------------------
EUGENE WIELEPSKI

/s/ Gary Brashers
---------------------
GARY BRASHERS

/s/ Stanley Keller
---------------------
STANLEY KELLER

                                     - 3 -

