<SUBMISSION>
<ACCESSION-NUMBER>0000912057-02-025844
<TYPE>PRE 14A
<PUBLIC-DOCUMENT-COUNT>1
<PERIOD>20020701
<FILING-DATE>20020628
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>IC ISAACS & CO INC
<CIK>0001041179
<ASSIGNED-SIC>2253
<IRS-NUMBER>521377061
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>PRE 14A
<ACT>34
<FILE-NUMBER>000-23379
<FILM-NUMBER>02691646
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>3840 BANK ST
<CITY>BALTIMORE
<STATE>MD
<ZIP>21224
<PHONE>4103428200
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>3840 BANK STREET
<CITY>BALTOMORE
<STATE>MD
<ZIP>21224
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>PRE 14A
<SEQUENCE>1
<FILENAME>a2083326zpre14a.htm
<DESCRIPTION>PRE 14A
<TEXT>
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<P ALIGN="CENTER"><FONT SIZE=2><B>SCHEDULE 14A INFORMATION</B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>Proxy
Statement Pursuant to Section 14(a) of<BR>
the Securities Exchange Act of 1934 (Amendment No.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;) </FONT></P>

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<TABLE WIDTH="79%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=2>Filed by the Registrant <FONT FACE="WINGDINGS">&#253;</FONT></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=2>Filed by a Party other than the Registrant <FONT FACE="WINGDINGS">&#111;</FONT></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=2><BR>
Check the appropriate box:</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2><FONT FACE="WINGDINGS">&#253;</FONT></FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="95%"><FONT SIZE=2>Preliminary Proxy Statement</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2><FONT FACE="WINGDINGS">&#111;</FONT></FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="95%"><FONT SIZE=2><B>Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2><FONT FACE="WINGDINGS">&#111;</FONT></FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="95%"><FONT SIZE=2>Definitive Proxy Statement</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2><FONT FACE="WINGDINGS">&#111;</FONT></FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="95%"><FONT SIZE=2>Definitive Additional Materials</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2><FONT FACE="WINGDINGS">&#111;</FONT></FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="95%"><FONT SIZE=2>Soliciting Material Pursuant to &sect;240.14a-12<BR></FONT>
</TD>
</TR>
</TABLE>
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<TD COLSPAN=5 ALIGN="CENTER"><BR><FONT SIZE=2><B> I.C. ISAACS &amp; COMPANY, INC.</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=5 ALIGN="CENTER"><HR NOSHADE><FONT SIZE=2> (Name of Registrant as Specified In Its Charter)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=5 ALIGN="CENTER"><BR><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=5 ALIGN="CENTER"><HR NOSHADE><FONT SIZE=2> (Name of Person(s) Filing Proxy Statement, if other than the Registrant)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="90%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=5><FONT SIZE=2>Payment of Filing Fee (Check the appropriate box):</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2><FONT FACE="WINGDINGS">&#253;</FONT></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>No fee required</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2><FONT FACE="WINGDINGS">&#111;</FONT></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and&nbsp;0-11</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(1)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="90%"><FONT SIZE=2>Title of each class of securities to which transaction applies:<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(2)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="90%"><FONT SIZE=2>Aggregate number of securities to which transaction applies:<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(3)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="90%"><FONT SIZE=2>Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(4)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="90%"><FONT SIZE=2>Proposed maximum aggregate value of transaction:<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(5)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="90%"><FONT SIZE=2>Total fee paid:<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2><FONT FACE="WINGDINGS">&#111;</FONT></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Fee paid previously with preliminary materials.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2><FONT FACE="WINGDINGS">&#111;</FONT></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Check box if any part of the fee is offset as provided by Exchange Act Rule&nbsp;0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement
number, or the Form or Schedule and the date of its filing.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(1)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="90%"><FONT SIZE=2>Amount Previously Paid:<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(2)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="90%"><FONT SIZE=2>Form, Schedule or Registration Statement No.:<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(3)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="90%"><FONT SIZE=2>Filing Party:<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(4)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="90%"><FONT SIZE=2>Date Filed:<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
</TABLE>
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<!-- ZEQ.=1,SEQ=1,EFW="2083326",CP="I.C. ISAACS & COMPANY, INC.",DN="1",CHK=914270,FOLIO='blank',FILE='DISK032:[02WDC1.02WDC1971]DA1971A.;4',USER='LGARDNE',CD='28-JUN-2002;12:07' -->
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<P ALIGN="CENTER"><FONT SIZE=2><B>I.C. ISAACS&nbsp;&amp; COMPANY,&nbsp;INC.  </B></FONT></P>

<P><FONT SIZE=2>3840 Bank Street<BR>
Baltimore, Maryland 21224-2522<BR>
(410)&nbsp;342-8200 </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2002 </FONT></P>

<P><FONT SIZE=2>To
Our Stockholders: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
behalf of our Directors, I cordially invite you to attend the Annual Meeting of Stockholders of I.C. Isaacs&nbsp;&amp; Company,&nbsp;Inc. (the "Company"). The Annual Meeting will be
held at 11:00&nbsp;a.m., local time, on [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2002], at the offices of Piper Rudnick LLP, 1251 Avenue of the Americas,
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Floor, New York, NY 10020. The formal Notice of the Annual Meeting and the Proxy Statement are attached hereto. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Proxy Statement describes matters that we expect will be acted upon at the Annual Meeting. The stockholders who are present will have the opportunity to ask questions. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
May&nbsp;6, 2002, Textile Investment International S.A. ("Textile"), an affiliate of the licensor to the Company of the Girbaud brand, acquired from Ambra&nbsp;Inc., the former
licensor to the Company of the BOSS mark, 3.3&nbsp;million shares of the Company's Series&nbsp;A Convertible Preferred Stock (the "Preferred Stock"), 666,667 shares of the Company's Common Stock
and a subordinated secured promissory note issued by the Company to Ambra in March&nbsp;2001 in the original principal amount of $7.2&nbsp;million (the "Note"). On May&nbsp;14, 2002, the Company
entered into a Framework Agreement with Textile and Textile's affiliates, Latitude Licensing Corp. and Wurzburg Holding S.A. ("Wurzburg"), pursuant to which the Board of Directors appointed Textile
and Wurzburg designees Staffan Ahrenberg and Olivier Bachellerie to the Company's Board of Directors and Textile exchanged the Note for an amended and restated note with a deferred payment schedule.
Pursuant to the Framework Agreement, the Board agreed to nominate three additional designees of Textile and Wurzburg for election to the Board of Directors, submit the items described in Proposal 1 of
the attached Proxy Statement to the stockholders of the Company for approval and, subject to stockholder approval, enter into certain other transactions, as described in Proposal 1. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition to the debt deferral which has already been provided for by the exchange of the Note, consummation of the transactions contemplated by the Framework Agreement would eliminate
the
possibility that the Preferred Stock will be converted into debt. It also provides us with the opportunity to more closely align our interests with those of the licensor of our Girbaud brand name. We
are excited about this opportunity and look forward to further expanding our relationship with Girbaud as contemplated by the Framework Agreement. We believe that this relationship will benefit the
Company and will better allow the Company to realize its strategic objectives. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
are gratified by our stockholders' interest in the Company and hope that you vote your shares in person or by proxy. We urge you to return your proxy card as soon as possible. </FONT></P>

<UL>
<UL>
<UL>
<UL>
<UL>
<UL>
<UL>
<UL>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>Cordially
yours, </FONT></P>

<P><FONT SIZE=2>Robert
J. Arnot<BR>
Chairman of the Board, Chief Executive<BR>
Officer and President </FONT></P>

</UL>
</UL>
</UL>
</UL>
</UL>
</UL>
</UL>
</UL>
</UL>
</UL>
</UL>
<HR NOSHADE>
<!-- ZEQ.=1,SEQ=2,EFW="2083326",CP="I.C. ISAACS & COMPANY, INC.",DN="1",CHK=410188,FOLIO='blank',FILE='DISK032:[02WDC1.02WDC1971]DE1971A.;4',USER='LGARDNE',CD='28-JUN-2002;12:07' -->
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<P ALIGN="CENTER"><FONT SIZE=2><B>I.C. ISAACS&nbsp;&amp; COMPANY,&nbsp;INC.<BR>  </B></FONT><FONT SIZE=2>3840 Bank Street<BR>
Baltimore, Maryland 21224-2522<BR>
(410)&nbsp;342-8200 </FONT></P>

<HR NOSHADE ALIGN="CENTER" WIDTH="120">
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="dg1971_notice_of_annual_meeting_of_st__not02217"> </A>
<A NAME="toc_dg1971_1"> </A>
<BR></FONT><FONT SIZE=2><B>NOTICE OF ANNUAL MEETING OF STOCKHOLDERS<BR>  TO BE HELD ON [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2002]    <BR>  </B></FONT></P>

<HR NOSHADE ALIGN="CENTER" WIDTH="120">

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOTICE
IS HEREBY GIVEN that the 2002 Annual Meeting of Stockholders (the "Meeting") of I.C. ISAACS&nbsp;&amp; COMPANY,&nbsp;INC. (the "Company") will be held on
[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,&nbsp;&nbsp;&nbsp;&nbsp;, 2002],
 at the offices of Piper Rudnick LLP, 1251 Avenue of the Americas,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Floor, New York, NY 10020. The
Meeting will be held for the following purposes: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>1.</FONT></DT><DD><FONT SIZE=2>To
approve the transactions contemplated by the Framework Agreement dated May&nbsp;14, 2002 among the Company, I.C. Isaacs&nbsp;&amp; Company L.P., Textile Investment International
S.A., Latitude Licensing Corp., and Wurzburg Holding S.A.;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>2.</FONT></DT><DD><FONT SIZE=2>To
elect three Class&nbsp;II directors for terms of three years and until their successors are elected and qualified, one Class&nbsp;I director for a term of two years and until
his successor is elected and qualified, and one Class&nbsp;III director for a term of one year and until his successor is elected and qualified;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>3.</FONT></DT><DD><FONT SIZE=2>To
approve the Company's Amended and Restated 1997 Omnibus Stock Plan;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>4.</FONT></DT><DD><FONT SIZE=2>To
ratify the appointment of BDO Seidman, LLP as the Company's independent auditors for the fiscal year ending December&nbsp;31, 2002; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>5.</FONT></DT><DD><FONT SIZE=2>To
transact such other business as may properly come before the Meeting or any adjournments or postponements thereof. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors has fixed the close of business on </FONT><FONT SIZE=2><B>[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,</B></FONT><FONT SIZE=2>
2002</FONT><FONT SIZE=2><B>]</B></FONT><FONT SIZE=2> as the record date for the determination of the stockholders entitled to notice of, and to vote at, the Meeting and any adjournments
or postponements thereof. Only those stockholders of record of the Company as of the close of business on that date will be entitled to vote at the Meeting or any adjournments or postponements
thereof. Accompanying this notice is a Proxy Card and Proxy Statement and a copy of the Company's 2001 Annual Report on Form&nbsp;10-K, as amended. </FONT></P>

<UL>
<UL>
<UL>
<UL>
<UL>
<UL>
<UL>
<UL>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>By
Order of the Board of Directors<BR>
Robert J. Arnot<BR>
Chairman of the Board, Chief Executive<BR>
Officer and President </FONT></P>

<P><FONT SIZE=2>Eugene
C. Wielepski<BR>
Vice President&#151;Finance,<BR>
Chief Financial Officer and Corporate Secretary </FONT></P>

</UL>
</UL>
</UL>
</UL>
</UL>
</UL>
</UL>
</UL>
</UL>
</UL>
</UL>

<P><FONT SIZE=2>Baltimore,
Maryland<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2002 </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>YOU ARE CORDIALLY INVITED TO ATTEND THIS MEETING. IT IS IMPORTANT THAT YOUR SHARES BE REPRESENTED REGARDLESS OF THE NUMBER YOU OWN. IF YOU WILL BE UNABLE TO BE
PRESENT AT THE MEETING OR EVEN IF YOU ANTICIPATE THAT YOU WILL ATTEND, PLEASE SIGN AND DATE THE ENCLOSED PROXY AND RETURN IT IN THE ACCOMPANYING ENVELOPE WITHOUT DELAY. YOU WILL BE MOST WELCOME AT THE
MEETING AND MAY THEN VOTE IN PERSON IF YOU SO DESIRE, EVEN THOUGH YOU MAY HAVE EXECUTED AND RETURNED THE PROXY. ANY STOCKHOLDER WHO EXECUTES SUCH A PROXY MAY REVOKE IT AT ANY TIME BEFORE IT IS
EXERCISED. YOUR PROMPT RETURN OF YOUR PROXY WILL HELP AVOID THE COST OF FURTHER SOLICITATIONS.</B></FONT></P>

<HR NOSHADE>
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<!-- TOC_END -->
<P ALIGN="CENTER"><FONT SIZE=2><B>I.C. ISAACS&nbsp;&amp; COMPANY,&nbsp;INC.<BR>  </B></FONT><FONT SIZE=2>3840 Bank Street<BR>
Baltimore, Maryland 21224-2522<BR>
(410)&nbsp;342-8200 </FONT></P>

<HR NOSHADE ALIGN="CENTER" WIDTH="120">
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="di1971_proxy_statement_for_annual_mee__pro02723"> </A>
<A NAME="toc_di1971_1"> </A>
<BR></FONT><FONT SIZE=2><B>PROXY STATEMENT<BR>  FOR<BR>  ANNUAL MEETING OF STOCKHOLDERS<BR>  TO BE HELD ON [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT><FONT SIZE=2>, </FONT><FONT
SIZE=2><B>2002</B></FONT><FONT SIZE=2>]    <BR></FONT></P>

<HR NOSHADE ALIGN="CENTER" WIDTH="120">
<P ALIGN="CENTER"><FONT SIZE=2><B>INFORMATION CONCERNING SOLICITATION AND VOTING  </B></FONT></P>

<P><FONT SIZE=2><B> General  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Proxy Statement, the Notice of Annual Meeting of Stockholders, and the accompanying Proxy Card are furnished to stockholders of I.C. Isaacs&nbsp;&amp;
Company,&nbsp;Inc. (together with its subsidiaries, including I.C. Isaacs&nbsp;&amp; Company L.P, the "Company") in connection with the solicitation of proxies by the Company's Board of Directors to
be used at the 2002 Annual Meeting of Stockholders of the Company (the "Meeting") to be held on [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2002], and any adjournments or
postponements thereof. The Meeting will be held at the offices of Piper Rudnick LLP, 1251 Avenue of the Americas,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Floor, New York, NY 10020, at 11:00&nbsp;a.m., local time. The
Meeting will be held for the following purposes: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>1.</FONT></DT><DD><FONT SIZE=2>To
approve the transactions contemplated by the Framework Agreement dated May&nbsp;14, 2002 among the Company, Textile Investment International S.A., Latitude Licensing Corp., and
Wurzburg Holding S.A.;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>2.</FONT></DT><DD><FONT SIZE=2>To
elect three Class&nbsp;II directors for a term of three years and until their successors are elected and qualified, one Class&nbsp;I director for a term of two years and until
his successor is elected and qualified, and one Class&nbsp;III director for a term of one year and until his successor is elected and qualified;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>3.</FONT></DT><DD><FONT SIZE=2>To
approve the Company's Amended and Restated 1997 Omnibus Stock Plan;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>4.</FONT></DT><DD><FONT SIZE=2>To
ratify the appointment of BDO Seidman, LLP as the Company's independent auditors for the fiscal year ending December&nbsp;31, 2002; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>5.</FONT></DT><DD><FONT SIZE=2>To
transact such other business as may properly come before the Meeting or any adjournments or postponements thereof. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Proxy Statement and the accompanying Notice of Annual Meeting of Stockholders, Proxy Card and the Company's 2001 Annual Report on Form&nbsp;10-K, as amended,
containing the Company's consolidated financial statements for the year ended December&nbsp;31, 2001 are first being mailed to stockholders on or about&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2002. </FONT></P>

<P><FONT SIZE=2><B>Record Date and Principal Stockholders  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stockholders of record at the close of business on </FONT><FONT SIZE=2><B>[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;,
2002</FONT><FONT SIZE=2><B>]</B></FONT><FONT SIZE=2> (the "Record Date") are entitled to notice of, and to vote at, the Meeting and any adjournments or postponements thereof. On the
Record Date, the Company had outstanding and entitled to vote [7,834,657] shares of Common Stock, par value $.0001 per share (the "Common Stock"). For information regarding
security ownership by management and certain other holders of the Company's Common Stock see "Security Ownership of Certain Beneficial Owners and Management." </FONT></P>

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<P><FONT SIZE=2><B>Voting and Solicitation  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With respect to the proposal regarding election of directors, stockholders may (a)&nbsp;vote in favor of all nominees, (b)&nbsp;withhold their votes as to all
nominees, or (c)&nbsp;withhold their votes as to any specific nominee by so indicating in the appropriate space on the enclosed Proxy Card. With respect to the proposals to approve the transactions
contemplated by the Framework Agreement dated May&nbsp;14, 2002 among the Company, Textile Investment International S.A., Latitude Licensing Corp. and Wurzburg Holding S.A., to approve the Company's
Amended and Restated 1997 Omnibus Stock Plan, and to ratify the appointment of BDO Seidman, LLP as the Company's independent auditors for the fiscal year ending December&nbsp;31, 2002, stockholders
may (a)&nbsp;vote </FONT><FONT SIZE=2><B>FOR</B></FONT><FONT SIZE=2>, (b)&nbsp;vote </FONT><FONT SIZE=2><B>AGAINST</B></FONT><FONT SIZE=2> or
(c)&nbsp;</FONT><FONT SIZE=2><B>ABSTAIN</B></FONT><FONT SIZE=2> from voting as to each such matter. All properly executed Proxy Cards delivered by stockholders and not revoked will be voted at the
Meeting in accordance with the directions given. Properly executed proxies not marked to indicate any desired vote will be voted </FONT><FONT SIZE=2><B>FOR</B></FONT><FONT SIZE=2> approval of the
transactions contemplated by the Framework Agreement, </FONT><FONT SIZE=2><B>FOR</B></FONT><FONT SIZE=2> the election of the nominees for directors named below, </FONT> <FONT SIZE=2><B>FOR</B></FONT><FONT SIZE=2> the approval of the Company's Amended
and Restated 1997 Omnibus Stock Plan, and </FONT><FONT SIZE=2><B>FOR</B></FONT><FONT SIZE=2> the ratification
of the appointment of BDO Seidman, LLP as the Company's independent auditors for the fiscal year ending December&nbsp;31, 2002. If any other matters are properly brought before the Meeting, the
persons named in the accompanying proxies will vote the shares represented by such proxies on such matters as instructed by the Board of Directors of the Company, who have instructed the proxies to
vote in accordance with the proxies' own best judgment in the absence of express instruction from the Board. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
expenses of preparing, printing, and mailing the proxy materials will be borne by the Company. In addition to the use of the mail, proxies may be solicited by directors and officers
of the Company in person or by telephone or telegram. The Company will also reimburse brokerage houses and other custodians, nominees and fiduciaries for their expenses, in accordance with Securities
and Exchange Commission (the "SEC") regulations, in sending this Proxy Statement and proxies to the beneficial owners of its Common Stock. </FONT></P>

<P><FONT SIZE=2><B>Revocability of Proxies  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A Proxy Card is enclosed for use at the Meeting. Each stockholder is urged to complete and return the enclosed Proxy Card immediately, even if the stockholder
anticipates attending the Meeting in person. The Board of Directors has selected Messrs.&nbsp;Robert J. Arnot and Eugene C. Wielepski, and each of them, to act as proxies with full power of
substitution. Any stockholder executing a proxy has the power to revoke the proxy at any time before it is voted by delivering to the Secretary of the Company a notice of revocation or a duly executed
proxy bearing a later date. Any proxy may also be revoked by (i)&nbsp;the stockholder's attendance at the Meeting, (ii)&nbsp;filing a written notice of revocation with the Secretary of the
Meeting, and (iii)&nbsp;voting in person. The presence of a stockholder at the Meeting will not automatically revoke that stockholder's proxy. All notices of revocation should be sent to the
attention of the Company's Corporate Secretary, Eugene C. Wielepski, I.C. Isaacs&nbsp;&amp; Company,&nbsp;Inc., 3840 Bank Street, Baltimore, Maryland 21224-2522. </FONT></P>

<P><FONT SIZE=2><B>Quorum and Voting Rights  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The presence, in person or represented by proxy, of at least a majority of the total number of outstanding shares of the Company's Common Stock is necessary to
constitute a quorum at the Meeting. Shares of Common Stock represented by a properly signed and returned proxy will be counted as present at the Meeting for purposes of determining a quorum, without
regard to whether the proxy is marked as casting a vote or abstaining. Shares of Common Stock held by nominees that are voted on at least one matter coming before the Meeting will also be counted as
present for purposes of determining a quorum, even if the beneficial owner's discretion has been withheld (a "broker non-vote") for voting on some or all other matters. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
share of Common Stock is entitled to one vote on all matters that may properly come before the Meeting other than the election of directors. In the election of directors, each share
is entitled to cast one vote for each director to be elected. Directors of the Company shall be elected by a plurality of votes cast at the Meeting. The holders of Common Stock may not vote their
shares cumulatively for the election of directors. For purposes of the election of directors, abstentions and broker non-votes are not considered to be votes cast and do not affect the
plurality vote required for the election of directors. All other matters to come before the Meeting require the approval of a majority of the shares of Common Stock present, in person or by proxy, at
the Meeting and entitled to vote. Therefore, abstentions will have the same effect as votes against the proposals on such matters. Broker non-votes, however, will be deemed shares not
present to vote on such matters, and therefore will not count as votes for or against the proposals, and will not be included in calculating the number of votes necessary for approval of such matters. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

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<P><FONT SIZE=2><B>PROPOSAL 1: APPROVAL OF THE TRANSACTIONS CONTEMPLATED BY THE<BR>
FRAMEWORK AGREEMENT  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May&nbsp;6, 2002, Textile Investment International S.A., a Luxembourg corporation ("Textile"), acquired from Ambra&nbsp;Inc. ("Ambra") 666,667 shares of
Common Stock, 3.3&nbsp;million shares of the Company's Series&nbsp;A convertible preferred stock (the "Preferred Stock") and a subordinated secured promissory note issued by the Company to Ambra
in March&nbsp;2001 in the original principal amount of $7.2&nbsp;million (the "Note"). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
May&nbsp;14, 2002, the Company entered into a Framework Agreement (the "Framework Agreement") with Textile, and its affiliates Latitude Licensing Corp. a Delaware corporation and
the licensor to the
Company of the Girbaud brand name ("Latitude"), and Wurzburg Holding S.A., a Luxembourg corporation ("Wurzburg" and, together with Latitude and Textile, "Girbaud"). A copy of the Framework Agreement
is attached to this proxy statement as <U>Exhibit&nbsp;A</U>. The Company's primary goal in entering into the Framework Agreement was to defer certain payments due under the
Note and to amend the terms of its Preferred Stock to eliminate the possibility that the Preferred Stock would be converted into debt on or after January&nbsp;1, 2003. Upon consummation of the
transactions contemplated by the Framework Agreement, the Company would also obtain the option to extend its licenses for use of the Girbaud brand name for an additional four-year term. </FONT></P>

<P><FONT SIZE=2><B>Actions Already Taken by the Company in Connection with the Framework Agreement  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company agreed to take several actions in connection with the Framework Agreement which were not conditioned on the Company obtaining stockholder approval at
the Meeting, including the following: </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Girbaud Representation on the Company's Board of Directors.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Anthony Marterie resigned from the Company's Board of Directors
effective May&nbsp;15, 2002. On May&nbsp;20, 2002, pursuant to the Framework Agreement, the Board of Directors appointed Mr.&nbsp;Staffan Ahrenberg, a designee of Textile and Wurzburg, to fill a
vacancy in Class&nbsp;I of the Company's Board of Directors, and on May&nbsp;22, 2002, pursuant to the Framework Agreement, the Board of Directors appointed Mr.&nbsp;Olivier Bachellerie, a
designee of Textile and Wurzburg, to fill the vacancy in Class&nbsp;III of the Company's Board of Directors created by Mr.&nbsp;Marterie's resignation. Mr.&nbsp;Ahrenberg's term will expire at
the 2004 Annual Meeting of Stockholders and Mr.&nbsp;Bachellerie's term will expire at the 2003 Annual Meeting of Stockholders. Messrs.&nbsp;Eugene C. Wielepski and Ronald S. Schmidt have tendered
their resignations from the Board of Directors, effective as of the Meeting, and the Board of Directors has nominated three additional designees of Textile and Wurzburg, Messrs.&nbsp;Rene Faltz,
Roland Loubet, and Robert Stephen Stec, for election to its nine-person Board of Directors at the Meeting. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amended and Restated Subordinated Secured Promissory Note.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The Note was replaced by an Amended and Restated Subordinated
Secured Promissory Note dated May&nbsp;21, 2002 (the "Amended Note") payable to Textile in the amount of $6,557,908.53, (the remaining balance under the Note), which bears interest at an annual rate
of 8%. The Amended Note provides a new payment schedule and extends the maturity date from December&nbsp;31, 2006 to December&nbsp;31, 2007. The Amended Note requires the Company to make quarterly
payments to Textile of $210,000 in each quarter of September and December&nbsp;2002, $315,000 in each quarter of 2003, $420,000 in each quarter of 2004 through September&nbsp;2007, and a final
payment of $558,689.72 in December&nbsp;2007. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Voting Agreement.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;In connection with the execution of the Framework Agreement, the Company, Textile, Wurzburg, and
Messrs.&nbsp;Robert J. Arnot, Jon Hechler, Ronald S. Schmidt, Eugene C. Wielepski and Thomas P. Ormandy (collectively, the "Principal Stockholders") owning, together with Textile and Wurzburg, an
aggregate of [3,270,463] shares of Common Stock, which is approximately [42%] of the outstanding Common Stock of the Company, have entered into a Voting
Agreement. Pursuant to the </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

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<P><FONT SIZE=2>
Voting Agreement, the parties agreed to vote their shares of Common Stock of the Company at the Meeting in favor of the proposal to approve the transactions contemplated under the Framework Agreement
described below, for the election of the designees of Textile and Wurzburg to the Company's Board of Directors, and as otherwise necessary to effectuate the transactions contemplated under the
Framework Agreement and the exhibits thereto. The Voting Agreement terminates upon the earlier of the termination of the Framework Agreement and the consummation of the transactions contemplated by
the Framework Agreement. </FONT></P>

<P><FONT SIZE=2><B>Actions Subject to Stockholder Approval  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has elected to submit the following transactions contemplated by the Framework Agreement, which are described below in greater detail, to the
stockholders of the Company for approval at the Meeting because certain of such transactions represent significant changes in the corporate governance of the Company. If the stockholders do not
approve the transactions contemplated by the Framework Agreement, the Framework Agreement may be terminated by either the Company or Textile and its affiliates or the parties may waive this condition
and proceed with the transactions contemplated by the Framework Agreement. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amendment to the Company's Certificate of Designation for Preferred Stock.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the terms of the Company's Certificate
of Designation, the Preferred Stock of the Company held by Textile will become convertible on January&nbsp;1, 2003 into either 3.3&nbsp;million shares of Common Stock of the Company or a
$3.3&nbsp;million promissory note of the Company. The Framework Agreement provides that, as soon as practicable following stockholder approval, the Certificate of Designation governing the
3.3&nbsp;million shares of Preferred Stock of the Company which Textile purchased from Ambra will be amended to provide that the Preferred Stock is be immediately convertible, but only into
3.3&nbsp;million shares of Common Stock of the Company. The Preferred Stock will no longer be convertible into a promissory note. A copy of the amendment to the Certificate of Designation is
attached to this proxy statement as <U>Exhibit&nbsp;B</U>. Following conversion of the Preferred Stock but prior to exercise of the warrants described below, Textile and
Wurzburg will together beneficially own approximately [40%] of the Company's outstanding Common Stock. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuance of Warrants to Textile.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the Framework Agreement and subject to stockholder approval, the Company has
also agreed to grant Textile warrants to purchase 500,000 shares of the Company's Common Stock at an exercise price of $0.75 per share. The closing price reported on the OTC Bulletin Board for the
last day prior to the date of execution of the Framework Agreement on which the Common Stock was traded was $.37. The closing price of the Common Stock reported by the OTC Bulletin Board on
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2002 was $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;. These warrants are exercisable through 2011. Copies of the Warrants are attached as <U>Exhibits C-1</U> and
<U>C-2</U>. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
the Preferred Stock is converted and the warrants are exercised, Textile and Wurzburg will together beneficially own approximately [43]% of the Company's
outstanding Common Stock. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stockholders' Agreement.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Under the Framework Agreement and following stockholder approval, the Company has agreed to enter
into a Stockholders' Agreement (the "Stockholders' Agreement") with Textile and Wurzburg establishing certain terms and conditions regarding the acquisition and disposition of securities of the
Company and certain corporate governance matters. The Stockholders' Agreement will terminate upon the earliest to occur of (i)&nbsp;Textile and Wurzburg beneficially owning all of the outstanding
equity securities of the Company, (ii)&nbsp;the liquidation or dissolution of the Company, or (iii)&nbsp;November&nbsp;14, 2004. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
the Stockholders' Agreement, Textile and Wurzburg will agree not to transfer the equity securities of the Company beneficially owned by Textile or Wurzburg except (i)&nbsp;to the
Company, (ii)&nbsp;to an affiliate of Textile or Wurzburg, (iii)&nbsp;pursuant to Rule&nbsp;144 promulgated under the Securities Act of </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>5</FONT></P>

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<P><FONT SIZE=2>
1933, as amended (the "Securities Act"), unless the transaction would result in a stockholder owning in excess of five percent of the Company's outstanding equity securities, or (iv)&nbsp;pursuant
to an exemption to the registration requirements of the Securities Act; however, no transfer or acquisition of securities by Textile, Wurzburg or certain of their affiliates during the term of the
Stockholders' Agreement may be effected if such transfer or acquisition, taken together with all other transfers or acquisitions by Textile, Wurzburg, certain of their affiliates or any other person
actually known to Girbaud or reported under the Securities Exchange Act of 1934, as amended, would result in an ownership change of the Company within the meaning of Section&nbsp;382 of the Internal
Revenue Code. If an ownership change within the meaning of Section&nbsp;382 of the Internal Revenue Code were to occur, certain limitations would be imposed upon the Company's ability to utilize its
net operating loss carryforwards, which were valued as of March&nbsp;31, 2002 at $38.6&nbsp;million, on a going forward basis. Such limitations could dramatically reduce the extent to which such
net operating loss carryforwards are available in any given year in the future to offset what would otherwise constitute taxable income of the Company, which in turn could dramatically increase the
Company's tax liability for any such year. There can be no assurances that the Company's ability to utilize net operating loss carryforwards will not be impaired or, whether or not it is impaired,
that such net operating loss carryforwards will be usable at all by the Company. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Stockholders' Agreement also provides that the parties will use their best efforts to ensure that at all times during the term of the Stockholders' Agreement the Board of Directors
will be composed of three designees of Wurzburg and Textile, two members of management of the Company and four independent directors, two of whom shall initially be proposed by Wurzburg and Textile,
and two of whom shall initially be existing independent directors of the Company (the "Independent Directors"). Initially, and assuming that all of management nominees to the Board of Directors are
elected under the Stockholders' Agreement, (i)&nbsp;Mr.&nbsp;Robert J. Arnot, President and Chief Executive Officer of the Company, and Mr.&nbsp;Daniel Gladstone, President&#151;Girbaud
Division of the Company, will be deemed management directors, (ii)&nbsp;Messrs.&nbsp;Jon Hechler and Neal J. Fox will be deemed independent directors who were existing independent directors of the
Company, (iii)&nbsp;Messrs.&nbsp;Staffan Ahrenberg, Olivier Bachellerie and Rene Faltz will be deemed designees of Textile and Wurzburg, and (iv)&nbsp;Messrs.&nbsp;Roland Loubet and Robert
Stephen Stec will be deemed independent directors initially proposed by Textile and Wurzburg. See "Proposal 2. Election of Directors. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
the Stockholders' Agreement, the Company will also agree to include a proposal in its proxy statement for the 2003 Annual Meeting of Stockholders that the Board of Directors be
declassified, which would result in stockholders electing the entire board of directors at each annual meeting of stockholders. The stockholders will not vote on such declassification until the 2003
Annual Meeting of Stockholders. Approval of the declassification would require the affirmative vote of 66<SUP>2</SUP>/<SMALL>3</SMALL>% of the stockholders of the Company. The Company cannot predict with
certainty whether the stockholders will or will not approve such declassification. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Stockholders' Agreement provides that certain actions of the Company, including but not limited to (i)&nbsp;entering into joint ventures, partnerships or profit sharing agreements,
(ii)&nbsp;entering into any new supplier or distribution agreements, (iii)&nbsp;hiring and termination of Messrs.&nbsp;Robert J. Arnot, Daniel Gladstone and Eugene C. Wielepski, the Chief
Financial Officer of the Company, (iv)&nbsp;any material change to, or deviations from the budget of the Company for each fiscal year as approved by the Board of Directors, and (v)&nbsp;any
prepayment of the Amended Note, must be approved by at least six members of the Board of Directors (a "Supermajority Vote"). The Stockholders' Agreement also restricts the Company's ability to enter
into certain extraordinary or interested party transactions without the approval of a majority of the Independent Directors, including but not limited to certain transactions which would result in a
change in control of the Company, the adoption of any plan of liquidation, entering into a material contract with Textile, Wurzburg, their affiliates or certain other parties, or entering into any
transaction which would cause the Company to no longer be a reporting </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>6</FONT></P>

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<P><FONT SIZE=2>
company under Section&nbsp;12 of the Securities and Exchange Act of 1934, as amended. Finally, under the Stockholders' Agreement, Textile and Wurzburg may not seek to control the
day-to-day operations of the Company nor initiate or propose, directly or indirectly, any stockholder proposal or stockholder nominations in contravention of the Stockholders'
Agreement. The Stockholder's Agreement is attached to this proxy statement as <U>Exhibit&nbsp;D</U>. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amendments to Girbaud Licensing Agreements.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Subject to stockholder approval, the Company has agreed to amend the Trademark
License and Technical Assistance Agreement dated January&nbsp;15, 1998, with Latitude, as amended, (the "Girbaud Men's Agreement"), which provides the Company an exclusive license to manufacture and
market men's jeanswear, casualwear and outerwear under the Girbaud brand and certain related trademarks (the "Girbaud Marks") in the United States, including Puerto Rico and the U.S. Virgin Islands.
The Company has also agreed, pending stockholder approval, to amend the Trademark License and Technical Assistance Agreement for Women's Collections dated March&nbsp;4, 1998, with Latitude, as
amended, (the "Girbaud Women's Agreement," and together with the Girbaud Men's Agreement, the "Girbaud Agreements"), which provides the Company an exclusive license to manufacture and market women's
jeanswear, casualwear and outerwear, including active influenced sportswear, under the Girbaud Marks in the United States, including Puerto Rico and the U.S. Virgin Islands. These amendments give the
Company the option to renew the Girbaud Agreements for an additional term from 2008 through 2011. If the Girbaud Agreements are renewed in 2008, the Company will be obligated to pay minimum royalties
of $3.0&nbsp;million each year thereafter through the term of the agreements under the Girbaud Men's Agreement and $1.5&nbsp;million each year thereafter under the Girbaud Women's Agreement. The
Company has also agreed to pay, on behalf of Latitude, the fees of one or more consultants designated by Latitude in the aggregate amount of $250,000 in 2002 and $300,000 each year thereafter through
the term of the Girbaud Agreements. Latitude has advised the Company that it has not yet determined who it shall designate as the consultant(s) under the amendments to the Girbaud Agreements. Although
there are no present agreements or arrangements whereby any named officers or directors of the Company would receive
such consulting fees directly or indirectly, no assurances can be made that Latitude will not designate one or more directors and/or named officers of the Company to receive such consulting fees in
the future. The amendments to the Girbaud Men's Agreement and Girbaud Women's Agreement are attached to this proxy statement as <U>Exhibits E</U> and
<U>F</U>, respectively. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors recommends that stockholders vote </FONT><FONT SIZE=2><B>FOR</B></FONT><FONT SIZE=2> approval of the transactions contemplated by the Framework Agreement. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>7</FONT></P>

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<P><FONT SIZE=2><B>PROPOSAL 2: ELECTION OF DIRECTORS  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the Meeting, three individuals are to be elected as Class&nbsp;II directors, each for a term of three years and until their successors have been elected and
qualified, one individual is to be elected as a Class&nbsp;I director for a term of two years and until his successor is elected and qualified, and one individual is to be elected as a
Class&nbsp;III director for a term of one year and until his successor is elected and qualified. The proxies solicited hereby, unless directed to the contrary therein, will be voted </FONT> <FONT SIZE=2><B>FOR</B></FONT><FONT SIZE=2> the Board
nominees for directors. Each of the nominees for directors has consented to being named in this Proxy Statement and to serve if elected.
The Board has no reason to believe that any nominee for election as a director will not be a candidate or will be unable to serve, but if either event occurs, it is intended that the shares
represented by proxies will be voted </FONT><FONT SIZE=2><B>FOR</B></FONT><FONT SIZE=2> such substituted nominee or nominees as the Board, in its discretion, may designate. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors recommends that the stockholders vote </FONT><FONT SIZE=2><B>FOR</B></FONT><FONT SIZE=2> the election of its nominees. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following sets forth certain biographical information, the present occupation and the business experience for the past five years for each of the nominees for election at the 2002
Annual Meeting of Stockholders. </FONT></P>

<P><FONT SIZE=2><B>Class&nbsp;II Nominees to be elected at the 2002 Annual Meeting of Stockholders:  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the Meeting, three individuals are to be elected as Class&nbsp;II directors, each for a term of three years and until his successor has been elected and
qualified. The Board of Directors has nominated for election as Class&nbsp;II directors Messrs.&nbsp;Jon Hechler and Daniel J. Gladstone, each of whom currently serves on the Board as a
Class&nbsp;II director, and Mr.&nbsp;Roland Loubet, who has been designated by Textile and Wurzburg and nominated by the Board for election pursuant to the Framework Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Jon
Hechler, age 48, has been a director of the Company since 1984. He was employed by Ira J. Hechler and Associates, an investment company, from 1980 to 1999. He is President of T.
Eliot,&nbsp;Inc., a manufacturer of bathroom equipment. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Daniel
J. Gladstone, age 45, has been a director since April&nbsp;1999 and President&#151;Girbaud Division since January&nbsp;1999. He reports directly to Mr.&nbsp;Arnot and
among other duties is primarily responsible for the sales and marketing of the Girbaud lines. Mr.&nbsp;Gladstone served as President of Calvin Klein Jeans at WARNACO,&nbsp;Inc. from 1997 to 1998
and as President of Calvin Klein Jeans at Designer Holding&nbsp;Ltd. from 1994 to 1997. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Roland
Loubet, age 60, has been employed as the Chief Executive Officer and sole owner of Cedrico, S.A., a manufacturer and marketer of women's clothing, since 1997. </FONT></P>

<P><FONT SIZE=2><B>Class&nbsp;I Nominee to be elected at the 2002 Annual Meeting of Stockholders:  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the Meeting, one individual is to be elected as a Class&nbsp;I director to fill the vacancy created by the resignation, effective as of the Meeting, of
Eugene C. Wielepski. Such Class&nbsp;I director shall be elected for a term of two years and until his successor has been elected and qualified. Textile and Wurzburg have designated, and the Board
has nominated, Mr.&nbsp;Rene Faltz for election as a Class&nbsp;I director pursuant to the terms of the Framework Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rene
Faltz, age 48, has practiced law in the Grand Duchy of Luxembourg since 1976. He has been with Cabinet D'Avocats Rene Faltz since March&nbsp;2000 after leaving the firm of
Faltz&nbsp;&amp; Kremer. Mr.&nbsp;Faltz is one of the Managing Directors of, and serves as counsel to, Wurzburg, Textile and several other companies that are beneficially owned by Francois Girbaud and
Marithe Bachellerie in connection with the conduct of their business activities as designers and marketers of clothing and other items bearing the various Girbaud trademarks. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>8</FONT></P>

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<A NAME="page_di1971_1_9"> </A>
<BR>

<P><FONT SIZE=2><B>Class&nbsp;III Nominee to be elected at the 2002 Annual Meeting of Stockholders:  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the Meeting, one individual is to be elected as a Class&nbsp;III director to fill the vacancy created by the resignation, effective as of the Meeting, of
Ronald S. Schmidt. Such Class&nbsp;III director shall be elected for a term of one year and until his successor has been elected and qualified. Textile and Wurzburg
have designated, and the Board has nominated, Mr.&nbsp;Robert Stephen Stec for election as a Class&nbsp;III director pursuant to the terms of the Framework Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Robert
Stephen Stec, age 47, was President of London Fog Industries,&nbsp;Inc., a leading manufacturer and marketer of branded outerwear, from 1996 to 1998. He served as a consultant
to London Fog for several months in 1999. Mr.&nbsp;Stec has been employed as President and Chief Executive Officer of Lexington Home Brands, a leading branded marketer of home furnishings, since
1999. From 1989 through 1993, Mr.&nbsp;Stec, as President of VF Corporation, had sole responsibility for VF's Girbaud division in the United States. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following sets forth certain biographical information, present occupation and business experience for the past five years for each of the incumbent directors. </FONT></P>

<P><FONT SIZE=2><B>Class&nbsp;I Incumbents whose terms will expire at the 2004 Annual Meeting of Stockholders:  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Robert J. Arnot, age 53, has been a director of the Company since 1984, Chairman of the Board of Directors since 1991, Chief Executive Officer since 1996 and
President since 1999. He was Vice President of Planning and Corporate Development from 1989 to 1991. He has been employed by the Company since 1989. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Staffan
Ahrenberg, age 44, has been a director of the Company since May&nbsp;2002. Since 1997, Mr.&nbsp;Ahrenberg has been a consultant to Societe de Finance et D'Investissement
S.A., which provides multinational companies engaged in the food processing, media and fashion industries with investment opportunities and investment advisory services, and Saga Enterprises Holding
Corp., which provides the motion picture industry with services regarding the development, production, acquisition, sale and financing of motion pictures and other intellectual property.
Mr.&nbsp;Ahrenberg provides consulting services to Girbaud and its affiliates. </FONT></P>

<P><FONT SIZE=2><B>Class&nbsp;III Incumbents whose terms expire at the 2003 Annual Meeting of Stockholders:  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neal J. Fox, age 67, has been a director of the Company since February&nbsp;1998. From 1989 through March&nbsp;1999, Mr.&nbsp;Fox served as the President
and Chief Executive Officer of Sulka, an international menswear retailer. In 1999, Mr.&nbsp;Fox founded NJF Associates, Incorporated, a consulting firm specializing in brand management and business
development for various retail industries. Mr.&nbsp;Fox also has served as a director and consultant for Today's Man, a retail apparel chain with 25 stores in the northeast United States since
May&nbsp;2000 and served as the Vice Chairman of its board of directors from August&nbsp;2000 until November&nbsp;2001. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Olivier
Bachellerie, age 40, has been a director of the Company since May&nbsp;2002. Mr.&nbsp;Bachellerie has served since 1997 as President and Director General of GI Promotion and
Cravatatakiller S.A., and as President of Fashion Services of America,&nbsp;Inc., each of which is beneficially owned by Marithe Bachellerie and Francois Girbaud. Mr.&nbsp;Bachellerie is the son
of Marithe Bachellerie, the beneficial owner of 50% of the outstanding stock of Wurzburg. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="di1971_information_concerning_the_boa__inf02606"> </A>
<A NAME="toc_di1971_2"> </A>
<BR></FONT><FONT SIZE=2><B>INFORMATION CONCERNING THE BOARD OF DIRECTORS AND ITS COMMITTEES    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Amended and Restated Bylaws of the Company provide that the number of directors constituting the Board of Directors shall be as determined from time to time
by the Board. The Board has acted to fix the number of directors at nine. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>9</FONT></P>

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<A NAME="page_di1971_1_10"> </A>
<BR>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the terms of the Company's Amended and Restated Certificate of Incorporation, the Board of Directors is divided into three classes, as nearly equal in number as reasonably
possible, with terms expiring at the Meeting, the 2003 Annual Meeting of Stockholders and at the 2004 Annual Meeting of Stockholders, respectively. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company's Board of Directors met or acted by unanimous written consent on six occasions in 2001. All of the incumbent directors who were directors during 2001 attended 100% of the
total number of meetings of the Board of Directors in 2001. The Board of Directors has standing Audit and Compensation Committees as described below. The Company does not have a Nominating Committee. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Audit Committee.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;During 2001, the Audit Committee consisted of Messrs.&nbsp;Ronald S. Schmidt (Chairman), Neal J. Fox and
Anthony J. Marterie. Mr.&nbsp;Jon Hechler was appointed to the Audit Committee after Mr.&nbsp;Marterie's resignation from the Board of Directors on May&nbsp;14, 2002. Mr.&nbsp;Schmidt has
tendered his resignation from the Board of Directors effective as of the Meeting. After the election of the new directors at the Meeting, one of such new independent directors will be appointed to the
Audit Committee. The Audit Committee is responsible for recommending to the Board of Directors the engagement of the independent auditors of the Company and reviewing with the independent auditors the
scope and results of the audits, the internal accounting controls of the Company, audit practices and the professional services furnished by the independent auditors. All of the members of the Audit
Committee are independent, as such term is defined in the National Association of Securities Dealers listing standards. The Audit Committee has adopted a written charter. One meeting of the Audit
Committee was held in 2001 and was attended by all members. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compensation Committee.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;During 2001, the Compensation Committee consisted of Messrs.&nbsp;Jon Hechler (Chairman), Neal J.
Fox and Ronald S. Schmidt. Mr.&nbsp;Schmidt has tendered his resignation from the Board of Directors effective as of the Meeting. After the election of the new directors, one of the new
independent directors will be appointed to the Compensation Committee. The Compensation Committee reviews and determines the compensation of the Company's executive officers and recommends the
granting of awards to eligible employees pursuant to the Company's Amended and Restated 1997 Omnibus Stock Plan. See "Compensation Committee Report on Executive Officer Compensation," below. Three
meetings of the Compensation Committee were held in 2001, and all members attended each meeting. </FONT></P>

<P><FONT SIZE=2><B>Directors' Compensation  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Directors who are employees of the Company receive no compensation for serving on the Board of Directors. Directors who are not employees of the Company (the
"Outside Directors") receive an annual retainer fee of $10,000 for their services and attendance fees of $750 per Board or committee meeting attended. All directors are reimbursed for expenses
incurred in connection with attendance at Board or committee meetings. In addition, members of the Board of Directors are eligible to participate in the Company's Amended and Restated 1997 Omnibus
Stock Plan. In 2001, Outside Directors were awarded non-qualified stock options to purchase an aggregate 28,000 shares of Common Stock at an exercise price of $0.90 per share. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="di1971_executive_compensation"> </A>
<A NAME="toc_di1971_3"> </A>
<BR></FONT><FONT SIZE=2><B>EXECUTIVE COMPENSATION    <BR>  </B></FONT></P>


<P><FONT SIZE=2><B>Summary Compensation Table  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following tables sets forth all compensation awarded to, earned by, or paid for services rendered to the Company in all capacities during the three years
ended December&nbsp;31, 2001 for the Chief Executive Officer and the four other most highly compensated executive officers of the Company </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>10</FONT></P>

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<A NAME="page_di1971_1_11"> </A>
<BR>

<P><FONT SIZE=2>
(collectively, the "Named Executive Officers"), including both fixed salary compensation and discretional management incentive compensation ("Bonus"): </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="96%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="32%" ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=7 ALIGN="CENTER"><FONT SIZE=1><B>Annual Compensation<SUP>(1)</SUP></B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="18%" ALIGN="CENTER"><FONT SIZE=1><B>Long-Term Compensation Awards</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="13%" ALIGN="CENTER"><FONT SIZE=1><B>All Other<BR>
Compensation</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH WIDTH="32%" ALIGN="LEFT"><FONT SIZE=1><B>Name and Principal Positions<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="5%" ALIGN="CENTER"><FONT SIZE=1><B>Year</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Salary</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Bonus</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="18%" ALIGN="CENTER"><FONT SIZE=1><B>Number of Shares<BR>
Underlying Options</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="13%" ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2>Robert J. Arnot<BR>
Chairman of the Board and<BR>
Chief Executive Officer</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="CENTER"><FONT SIZE=2>2001<BR>
2000<BR>
1999</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$<BR><BR></FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>346,659<BR>
344,960<BR>
352,711</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$<BR><BR></FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>0<BR>
0<BR>
0</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="18%" ALIGN="RIGHT"><FONT SIZE=2>7,000<BR>
0<BR>
25,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="CENTER"><FONT SIZE=2>0<BR>
0<BR>
0</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2><BR>
Daniel J. Gladstone<BR>
President &#151; Girbaud Division</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="CENTER"><FONT SIZE=2><BR>
2001<BR>
2000<BR>
1999</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>$<BR><BR></FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2><BR>
341,538<BR>
344,960<BR>
320,243</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>$<BR><BR></FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2><BR>
221,199<BR>
207,865<BR>
18,022</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="18%" ALIGN="RIGHT"><FONT SIZE=2><BR>
7,000<BR>
0<BR>
0</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="CENTER"><FONT SIZE=2><BR>
0<BR>
0<BR>
0</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2><BR>
Eugene C. Wielepski<BR>
Vice President &#151; Finance and<BR>
Chief Financial Officer</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="CENTER"><FONT SIZE=2><BR>
2001<BR>
2000<BR>
1999</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>$<BR><BR></FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2><BR>
172,531<BR>
171,500<BR>
175,873</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>$<BR><BR></FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2><BR>
0<BR>
0<BR>
0</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="18%" ALIGN="RIGHT"><FONT SIZE=2><BR>
7,000<BR>
0<BR>
12,500</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="CENTER"><FONT SIZE=2><BR>
0<BR>
0<BR>
0</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2><BR>
Thomas P. Ormandy<BR>
Vice President &#151; Sales</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="CENTER"><FONT SIZE=2><BR>
2001<BR>
2000<BR>
1999</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>$<BR><BR></FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2><BR>
196,730<BR>
230,229<BR>
265,788</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>$<BR><BR></FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2><BR>
0<BR>
0<BR>
0</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="18%" ALIGN="RIGHT"><FONT SIZE=2><BR>
7,000<BR>
0<BR>
18,750</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="CENTER"><FONT SIZE=2><BR>
0<BR>
0<BR>
0</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2><BR>
Danielle Lambert<BR>
Vice President &#151; Design</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%" ALIGN="CENTER"><FONT SIZE=2><BR>
2001<BR>
2000<BR>
1999</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>$<BR><BR></FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2><BR>
150,115<BR>
148,681<BR>
146,158</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>$<BR><BR></FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2><BR>
81,199<BR>
62,865<BR>
43,022</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="18%" ALIGN="RIGHT"><FONT SIZE=2><BR>
0<BR>
10,000<BR>
0</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="CENTER"><FONT SIZE=2><BR>
0<BR>
0<BR>
0</FONT></TD>
</TR>
</TABLE>
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<HR NOSHADE ALIGN="LEFT" WIDTH="120">
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=1>(1)</FONT></DT><DD><FONT SIZE=1>The
Company also provides certain perquisites and other benefits. The aggregate dollar cost to the Company of such perquisites and other benefits in each of the last three years did
not exceed the lesser of $50,000 or 10% of the amount reflected in the Salary and Bonus columns for any of the Named Executive Officers. </FONT></DD></DL>

<P><FONT SIZE=2><B>Option Grants in the Last Fiscal Year  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth information regarding options to purchase shares of the Company's Common Stock granted to the Named Executive Officers during the
last fiscal year: </FONT></P>

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<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="31%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=8 ALIGN="CENTER"><FONT SIZE=1><B>Individual Grants</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" ROWSPAN=4><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=5 ROWSPAN=4 ALIGN="CENTER"><FONT SIZE=1><B>Potential Realizable<BR>
Value at Assumed<BR>
Annual Rates of Stock<BR>
Price Appreciation for<BR>
Option Term<SUP>(2)</SUP></B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH WIDTH="31%" ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="1%" ROWSPAN=4><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="11%" ROWSPAN=4 ALIGN="CENTER"><FONT SIZE=1><B>Number of<BR>
Securities<BR>
Underlying<BR>
Options<BR>
Granted</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="13%" ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="9%" ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH WIDTH="31%" ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="1%" ROWSPAN=3><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="13%" ROWSPAN=3 ALIGN="CENTER"><FONT SIZE=1><B>Percent of<BR>
Total Options<BR>
Granted to<BR>
Employees</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="9%" ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH WIDTH="31%" ROWSPAN=2 ALIGN="LEFT"><FONT SIZE=1><B>Name<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" ROWSPAN=2><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ROWSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Exercise<BR>
Price Per<BR>
Share<SUP>(1)</SUP></B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%" ROWSPAN=2><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="9%" ROWSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Expiration<BR>
Date</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>5%</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>10%</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="31%"><FONT SIZE=2>Robert J. Arnot</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>7,000</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>11.0%</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>0.90</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER"><FONT SIZE=2>6/8/11</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>4,060</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>10,080</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="31%"><FONT SIZE=2>Daniel J. Gladstone</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>7,000</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>11.0&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>0.90</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER"><FONT SIZE=2>6/8/11</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>4,060</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>10,080</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="31%"><FONT SIZE=2>Eugene C. Wielepski</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>7,000</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>11.0&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>0.90</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER"><FONT SIZE=2>6/8/11</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>4,060</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>10,080</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="31%"><FONT SIZE=2>Thomas P. Ormandy</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>7,000</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>11.0&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>0.90</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="CENTER"><FONT SIZE=2>6/8/11</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>4,060</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>10,080</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<HR NOSHADE ALIGN="LEFT" WIDTH="120">
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=1>(1)</FONT></DT><DD><FONT SIZE=1>The
exercise price equaled the fair market value of the Common Stock as determined by the Board of Directors on the date of grant.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=1>(2)</FONT></DT><DD><FONT SIZE=1>The
assumed annual rates of appreciation of 5% and 10% would result in the price of the Common Stock increasing to $1.48 and $2.34, respectively, from the exercise price of $0.90 per
share during the 10-year term of the options. The vesting of unvested options may be accelerated at any time by the Company. The 5% and 10% assumed annual rates of stock price appreciation
used to calculate potential gains to optionees are mandated by the rules of the SEC. The potential realizable value does not represent the Company's prediction of its stock price performance. There
can be no assurance that the stock price will actually appreciate over the 10-year option term at the assumed 5% and 10% levels or at any other level. </FONT></DD></DL>
<P ALIGN="CENTER"><FONT SIZE=2>11</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=11,SEQ=14,EFW="2083326",CP="I.C. ISAACS & COMPANY, INC.",DN="1",CHK=303107,FOLIO='11',FILE='DISK032:[02WDC1.02WDC1971]DI1971A.;11',USER='LGARDNE',CD='28-JUN-2002;12:07' -->
<A NAME="page_di1971_1_12"> </A>

<P><FONT SIZE=2><B>Aggregated Option Exercises in Last Fiscal Year and Fiscal Year-End Option Values.  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth information concerning the number and value of unexercised options to purchase shares of the Company's Common Stock held at the end
of the fiscal year by the Named Executive Officers. No options were exercised by any of the Named Executive Officers in 2001. </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="91%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="24%" ALIGN="LEFT"><FONT SIZE=1><B>Name<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="15%" ALIGN="CENTER"><FONT SIZE=1><B>Shares Acquired<BR>
on Exercise</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="8%" ALIGN="CENTER"><FONT SIZE=1><B>Value<BR>
Realized</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="22%" ALIGN="CENTER"><FONT SIZE=1><B>Number of Securities<BR>
Underlying Unexercised<BR>
Options at Fiscal Year End<BR>
Exercisable/Unexercisable<SUP>(1)</SUP></B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="22%" ALIGN="CENTER"><FONT SIZE=1><B>Value of Unexercised<BR>
In-the-Money Options<BR>
At Fiscal Year End<BR>
Exercisable/Unexercisable</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="24%"><FONT SIZE=2>Robert J. Arnot</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="CENTER"><FONT SIZE=2>0</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="CENTER"><FONT SIZE=2>0</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="22%" ALIGN="CENTER"><FONT SIZE=2>55,000 / 7,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="22%" ALIGN="CENTER"><FONT SIZE=2>0</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="24%"><FONT SIZE=2>Daniel J. Gladstone</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="CENTER"><FONT SIZE=2>0</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="CENTER"><FONT SIZE=2>0</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="22%" ALIGN="CENTER"><FONT SIZE=2>477,000 / 7,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="22%" ALIGN="CENTER"><FONT SIZE=2>0</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="24%"><FONT SIZE=2>Eugene C. Wielepski</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="CENTER"><FONT SIZE=2>0</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="CENTER"><FONT SIZE=2>0</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="22%" ALIGN="CENTER"><FONT SIZE=2>27,500 / 7,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="22%" ALIGN="CENTER"><FONT SIZE=2>0</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="24%"><FONT SIZE=2>Thomas P. Ormandy</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="CENTER"><FONT SIZE=2>0</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="CENTER"><FONT SIZE=2>0</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="22%" ALIGN="CENTER"><FONT SIZE=2>33,750 / 7,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="22%" ALIGN="CENTER"><FONT SIZE=2>0</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="24%"><FONT SIZE=2>Danielle Lambert</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%" ALIGN="CENTER"><FONT SIZE=2>0</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="CENTER"><FONT SIZE=2>0</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="22%" ALIGN="CENTER"><FONT SIZE=2>20,000 / 0</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="22%" ALIGN="CENTER"><FONT SIZE=2>0</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<HR NOSHADE ALIGN="LEFT" WIDTH="120">
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=1>(1)</FONT></DT><DD><FONT SIZE=1>The
exercise price equaled the fair market value of the Common Stock as determined by the Board of Directors on the date of grant. </FONT></DD></DL>

<P><FONT SIZE=2><B>Defined Benefit Pension Plan  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company maintains a defined benefit pension plan (the "Pension Plan") for its employees. The normal retirement benefit, payable at age 65, is 20.0% of base
compensation up to $10,000 plus 39.5% of base compensation over $10,000 and up to a maximum of $75,000, prorated for service less than 30&nbsp;years. A reduced benefit is also payable on early
retirement, after attainment of age 55 and completion of 15&nbsp;years of service. The Pension Plan also provides disability retirement and death benefits. The Company pays the full cost of the
benefits under the Pension Plan through its contributions to a trust. The Company's cash contributions to the Pension Plan during the year ended December&nbsp;31, 2001 aggregated approximately
$851,000. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Pension Plan Table below provides the estimated annual benefits payable under the Pension Plan upon retirement in specified compensation and years of service classifications: </FONT></P>

<P><FONT SIZE=2><B>Pension Plan Table  </B></FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="81%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="32%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" ROWSPAN=2><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=14 ROWSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Years of Service</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH WIDTH="32%" ROWSPAN=2 ALIGN="LEFT"><FONT SIZE=1><B>Remuneration<BR> </B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>15</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>20</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>25</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>30</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>35</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2>$100,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>13,838</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>18,451</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>23,063</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>27,676</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>27,676</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2>125,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>13,838</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>18,451</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>23,063</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>27,676</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>27,676</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2>150,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>13,838</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>18,451</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>23,063</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>27,676</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>27,676</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2>175,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>13,838</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>18,451</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>23,063</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>27,676</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>27,676</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2>200,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>13,838</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>18,451</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>23,063</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>27,676</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>27,676</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2>225,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>13,838</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>18,451</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>23,063</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>27,676</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>27,676</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2>250,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>13,838</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>18,451</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>23,063</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>27,676</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>27,676</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2>300,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>13,838</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>18,451</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>23,063</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>27,676</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>27,676</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2>400,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>13,838</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>18,451</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>23,063</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>27,676</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>27,676</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2>450,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>13,838</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>18,451</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>23,063</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>27,676</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>27,676</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2>500,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>13,838</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>18,451</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>23,063</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>27,676</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>27,676</FONT></TD>
</TR>
</TABLE></DIV>
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<P ALIGN="CENTER"><FONT SIZE=2>12</FONT></P>

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<P><FONT SIZE=2><A
NAME="page_dk1971_1_13"> </A> </FONT></P>

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<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The compensation considered in determining benefits under the Pension Plan (as provided in the column titled "Remuneration") is the annual average compensation for the five consecutive
calendar years producing the highest average. The compensation considered is limited to $75,000. All amounts of salary, bonus and other compensation as reported in the Summary Compensation Table, up
to $75,000, are included in compensation considered under the Pension Plan. The amounts provided in the Pension Plan Table are the benefits payable per year in equal monthly installments for the life
expectancy of the participants (i.e., straight life annuity amounts). The Pension Plan is integrated with Social Security, and its benefit formula is as follows: (i)&nbsp;0.6667% of compensation,
multiplied by years of service up to 30&nbsp;years; plus (ii)&nbsp;0.65% of compensation in excess of $10,000 multiplied by years of service up to 30&nbsp;years. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
estimated credited years of service for each of the Named Executive Officers were as follows, estimated as of January&nbsp;1, 2002: </FONT></P>

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<DIV ALIGN="CENTER"><TABLE WIDTH="67%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="74%" ALIGN="LEFT"><FONT SIZE=1><B>Name<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="23%" ALIGN="CENTER"><FONT SIZE=1><B>Estimated Credited<BR>
Years of Service</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="74%"><FONT SIZE=2>Robert J. Arnot</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT"><FONT SIZE=2>10</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="74%"><FONT SIZE=2>Daniel J. Gladstone</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT"><FONT SIZE=2>3</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="74%"><FONT SIZE=2>Eugene C. Wielepski</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT"><FONT SIZE=2>28</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="74%"><FONT SIZE=2>Thomas P. Ormandy</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT"><FONT SIZE=2>15</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="74%"><FONT SIZE=2>Danielle Lambert</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="23%" ALIGN="RIGHT"><FONT SIZE=2>3</FONT></TD>
</TR>
</TABLE></DIV>
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<P><FONT SIZE=2><B>Employment Agreements  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior to its initial public offering in December&nbsp;1997, the Company entered into individual employment agreements (the "Executive Employment Agreements")
with each of Messrs.&nbsp;Robert J. Arnot, Eugene C. Wielepski and Thomas P. Ormandy. As amended in August&nbsp;1998, February&nbsp;1999, January and April&nbsp;2000, April&nbsp;2001, and
January and April, 2002, the initial term of each of the Executive Employment Agreements began on May&nbsp;15, 1997 (the "Effective Date") and will terminate on May&nbsp;15, 2006 in the case of
Messrs.&nbsp;Arnot and Wielepski and terminated on May&nbsp;15, 2002 in the case of Mr.&nbsp;Ormandy. The Executive Employment Agreements will automatically extend after the initial term for
successive one-year terms, unless notice not to extend is given by either party at least 60&nbsp;days prior to the end of the then current term. Mr.&nbsp;Ormandy's agreement expired
and was not renewed. In addition to the base salary amounts described below, the Executive Employment Agreements also provide that the Executives are entitled to participate in any bonus and stock
option plans, programs, arrangements and practices as may be established from time to time by the Board of Directors of the Company for the benefit of such executive employees, in accordance with the
terms of such plans. Each Executive is also entitled to certain fringe benefits, including Company-paid health and life insurance. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Executive Employment Agreement of Mr.&nbsp;Arnot provides for an annual base salary of $400,000 for fiscal year 2002, $425,000 for fiscal year 2003 and $450,000 per year
thereafter. Mr.&nbsp;Arnot is also entitled to receive incentive compensation following each fiscal year in which the Company has Net Income (as defined in Mr.&nbsp;Arnot's Executive Employment
Agreement) in excess of $2.0&nbsp;million. The amount of the incentive compensation will be equal to six and one-half percent of the amount by which the Company's Net Income exceeds
$2.0&nbsp;million. Also, if the Company has Net Income of $3.0&nbsp;million in any fiscal year, Mr.&nbsp;Arnot is entitled to receive a non-qualified stock option to purchase 50,000
shares of the Company's Common Stock at an exercise price equal to the fair market value at the time of the grant. Mr.&nbsp;Arnot's Executive Employment Agreement further provides that if he is
terminated without cause or constructively discharged, the Company shall pay him an amount equal to one year of his current base salary plus a severance bonus equal to his incentive compensation for
the prior fiscal year; provided, however, if Mr.&nbsp;Arnot is terminated without cause or constructively discharged prior to May&nbsp;15, 2005, the Company will pay him an amount equal to his
current base </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>13</FONT></P>

<HR NOSHADE>
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<P><FONT SIZE=2>
salary plus the severance bonus at the end of each fiscal year for the period remaining under his Executive Employment Agreement. Upon termination of Mr.&nbsp;Arnot's Executive Employment Agreement
or if the Company decides not to renew the agreement, the Company must pay Mr.&nbsp;Arnot an amount equal to one year of his current base salary plus a lump sum equal to his incentive compensation
for the prior fiscal year. Mr.&nbsp;Arnot's Executive Employment Agreement includes a 90-day noncompetition provision as well as one-year nonsolicitation and confidentiality
provisions. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Executive Employment Agreement of Mr.&nbsp;Wielepski provides for an annual base salary of $200,000 but may be increased based on periodic reviews by the Compensation Committee. In
addition to his base salary, no later than July&nbsp;31, 2002, the Company will grant Mr.&nbsp;Wielepski a non-qualified stock option to purchase at least 10,000 shares of the
Company's Common Stock at an exercise price equal to the fair market value at the time of the grant. If Mr.&nbsp;Wielepski is terminated without cause prior to May&nbsp;15, 2005, the Company will
pay him the remaining base salary otherwise payable for the period remaining under the agreement. Upon termination of Mr.&nbsp;Wielepski's Executive Employment Agreement or if the Company decides
not to renew the agreement, the Company must pay
Mr.&nbsp;Wielepski an amount equal to one year of his current base salary. The Executive Employment Agreement of Mr.&nbsp;Wielepski includes a 90-day noncompetition provision as well
as one-year nonsolicitation and confidentiality provisions. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Executive Employment Agreement of Mr.&nbsp;Ormandy initially provided for an annual base salary of $300,000, which could be increased based on periodic reviews by the Compensation
Committee. Pursuant to amendments to such Executive Employment Agreement entered into in February&nbsp;1999, the annual base salary was reduced to $200,000, provided that the annual base salary
would be increased to its initial levels for the remainder of the term after the Company achieves positive net earnings in two consecutive fiscal quarters. The Executive Employment Agreement of
Mr.&nbsp;Ormandy included a one-year noncompetition provision as well as nonsolicitation and confidentiality provisions. Mr.&nbsp;Ormandy's agreement was not renewed, and the Company
has agreed to pay him severance equal to one year's salary through December&nbsp;2002. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Gladstone
entered into an employment agreement in January&nbsp;1999 with the Company and an amendment to the agreement in April&nbsp;2002 (the "Gladstone Agreement"). The
Gladstone Agreement is substantially similar to the Executive Employment Agreements described above except as described in this paragraph. The Gladstone Agreement provides for an annual base salary of
$350,000. The term of the Gladstone Agreement continues until January&nbsp;21, 2006. The Gladstone Agreement automatically extends after the initial term for another one-year term and
will continue to automatically extend for successive one-year terms, unless notice not to extend is given by either party at least 60&nbsp;days prior to the end of the then current term.
In addition to his base salary and other benefits, Mr.&nbsp;Gladstone is entitled to receive incentive compensation following each fiscal year during the term in which the Company's Net Sales of
Girbaud Sportswear (as defined in the Gladstone Agreement) exceeds $20.0&nbsp;million. The amount of such incentive compensation will be equal to one-half of one percent of the amount by
which the Company's Net Sales of Girbaud Sportswear exceeds $20&nbsp;million. Also, if in any fiscal year the Company has Net Income of $3.0&nbsp;million and Net Sales of Girbaud Women's Products
(as defined in the Gladstone Agreement) of at least $30.0&nbsp;million, Mr.&nbsp;Gladstone is entitled to receive a non-qualified stock option to purchase 50,000 shares of the
Company's Common Stock at an exercise price equal to the fair market value at the time of the grant. The Gladstone Agreement further provides that if he is terminated without cause or constructively
discharged, the Company shall pay him an amount equal to one year of his base salary plus a lump sum equal to his incentive compensation for the prior fiscal year, provided, however, if
Mr.&nbsp;Gladstone is terminated without cause or constructively discharged prior to January&nbsp;21, 2005, the Company will pay him an amount equal to his base salary plus the severance bonus at
the end of each fiscal year remaining for the period under the Gladstone Agreement. Upon termination of the Gladstone Agreement or if the Company decides not to renew the Gladstone Agreement, the
Company must pay Mr.&nbsp;Gladstone an amount equal to one </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>14</FONT></P>

<HR NOSHADE>
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<A NAME="page_dk1971_1_15"> </A>
<BR>

<P><FONT SIZE=2>
year of his current base salary plus a lump sum equal to his incentive compensation for the prior fiscal year. The Gladstone Agreement includes a 90-day noncompetition provision as well
as one-year nonsolicitation and confidentiality provisions. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="dk1971_compensation_committee_report___com02635"> </A>
<A NAME="toc_dk1971_1"> </A>
<BR></FONT><FONT SIZE=2><B>COMPENSATION COMMITTEE REPORT ON EXECUTIVE OFFICER COMPENSATION    <BR>  </B></FONT></P>

<P><FONT SIZE=2><B>Objectives  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company's compensation policies and procedures have historically been aligned with the Company's entrepreneurial traditions. The Company seeks to compensate
its officers (including the Named Executive Officers) in a manner which is: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2>consistent
with the Company's conservative traditions and cost structure;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(ii)</FONT></DT><DD><FONT SIZE=2>sufficient
to attract and retain key executives critical to the success of the Company;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(iii)</FONT></DT><DD><FONT SIZE=2>reflective
of current performance of both the individual officer and the Company; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(iv)</FONT></DT><DD><FONT SIZE=2>remuneration
of successful long-term strategic management and enhancement of shareholder values. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B>Components of Compensation  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Compensation Committee (the "Committee") approves the design of, assesses the effectiveness of, and administers the executive compensation programs of the
Company in support of stockholder interests. The key elements of the Company's executive compensation program are base salary, annual incentives and long-term incentive compensation. These
key elements are addressed separately below. In determining each component of compensation, the Committee considers all elements of an executive's total compensation package. </FONT></P>

<P><FONT SIZE=2><B>Base Salary  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Committee regularly reviews each executive's base salary. Base salaries are not necessarily compared to other institutions, although market rates for
comparable executives with comparable responsibilities are considered in some cases. Base salaries are adjusted by the Committee to recognize varying levels of responsibility, experience, breadth of
knowledge, internal equity issues, as well as external pay practices. Increases to base salaries are driven primarily by individual performance. Individual performance is evaluated based on sustained
levels of individual contribution to the Company. In 1998, the annual base salary of Mr.&nbsp;Arnot, the Company's Chief Executive Officer, was
decreased to $350,000 pursuant to the terms of an amendment to his Executive Employment Agreement in consideration of the deterioration in the Company's operating results for 1998 compared to 1997.
Also in 1998, the annual base salaries of the other Named Executive Officers (other than Mr.&nbsp;Gladstone, who joined the Company in January&nbsp;1999, and Ms.&nbsp;Lambert, who does not have
an employment agreement) were decreased for the same reason. In April&nbsp;2002, the annual base salaries of Messrs.&nbsp;Arnot and Wielepski were restored to previous levels in recognition of
the completion of the Company's restructuring of operations. In addition, the term of the executive employment agreements of Messrs.&nbsp;Arnot, Wielepski and Gladstone were extended in recognition
of the improvement of the Company's financial results. See "Executive Compensation&#151;Employment Agreements." </FONT></P>

<P><FONT SIZE=2><B>Annual Incentives  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The annual incentive program promotes the Company's pay-for-performance philosophy by providing the Chief Executive Officer and other
Named Executive Officers with direct financial incentives in the form of annual cash bonuses to achieve corporate and, in some cases, individual performance goals. Annual bonus opportunities allow the
Company to communicate specific goals that </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>15</FONT></P>

<HR NOSHADE>
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<A NAME="page_dk1971_1_16"> </A>
<BR>

<P><FONT SIZE=2>
are of primary importance during the coming year and motivate executives to achieve these goals. In March&nbsp;2002, the Company paid Mr.&nbsp;Daniel J. Gladstone a bonus, based on 2001
performance, of $221,199 and Ms.&nbsp;Danielle Lambert a bonus, based on 2001 performance, of $87,199. </FONT></P>


<P><FONT SIZE=2><B>Long-Term Incentives  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In keeping with the Company's commitment to provide a total compensation package which includes at-risk components of pay, long-term
incentive compensation comprises a significant portion of the value of an executive's total compensation package. When awarding long-term grants, the Committee considers an executive's
level of responsibility, prior compensation experience, historical award data, and individual performance criteria. Long-term incentives are in the form of stock options awards under the
Company's Plan. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock
options are granted at an option price equal to the fair market value of the Common Stock on the date of grant. Accordingly, stock options have value only if the stock price
appreciates. This design focuses executives on the creation of stockholder value over the long term. The size of stock option grants is based on competitive practice, individual performance factors
and historical award data. The Company granted an aggregate of 28,000 stock options to the Named Executive Officers in 2001. </FONT></P>

<P><FONT SIZE=2><B>Conclusion  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Committee believes these executive compensation policies and programs serve the interests of the Company and its stockholders effectively. The various
compensation vehicles offered are appropriately balanced to provide increased motivation for executives to contribute to the Company's overall future success, thereby enhancing the value of the
Company for the stockholders' benefit. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
will continue to monitor the effectiveness of the Company's total compensation program to meet the current and future needs of the Company. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Members
of the Compensation Committee: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Jon
Hechler, Neal J. Fox and Ronald S. Schmidt </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="dk1971_compensation_committee_interlo__com03512"> </A>
<A NAME="toc_dk1971_2"> </A>
<BR></FONT><FONT SIZE=2><B>COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION<BR>  IN COMPENSATION DECISIONS    <BR>  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None of the directors serving on the Compensation Committee is an employee of the Company, and neither the Chief Executive Officer nor any of the Named Executive
Officers has served on the Compensation Committee. No executive officer of the Company serves as a member of the board of directors or compensation committee of any entity which has one or more
executive officers serving as a member of the Company's Board of Directors, Audit Committee or Compensation Committee. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="dk1971_stock_performance_table"> </A>
<A NAME="toc_dk1971_3"> </A>
<BR></FONT><FONT SIZE=2><B>STOCK PERFORMANCE TABLE    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company is required by the SEC to provide a five-year comparison of the cumulative total stockholder return on the Company's Common Stock compared
with that of a broad equity market index and either a published industry index or a Company-constructed peer group index. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following chart compares the cumulative total stockholder return on the Company's Common Stock during the period beginning December&nbsp;18, 1997, (the date of the Company's
initial public offering) and ending December&nbsp;31, 2001, with the cumulative total return of the Standard&nbsp;&amp; Poor's 500 Composite Index and a peer group index. The peer group is comprised
of the following companies: Guess ?,&nbsp;Inc., Liz Claiborne,&nbsp;Inc., Mossimo,&nbsp;Inc., Nautica Enterprises,&nbsp;Inc., Polo Ralph Lauren Corporation, Tarrant Apparel Group, Tommy
Hilfiger Corporation, Tropical Sportswear Int'l </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>16</FONT></P>

<HR NOSHADE>
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<A NAME="page_dk1971_1_17"> </A>
<BR>

<P><FONT SIZE=2>
Corporation and V.F. Corporation. Total return for the peer group is based on market capitalization, weighted for each year. As with the peer group, the Standard&nbsp;&amp; Poor's 500 Composite Index
is market weighted. The comparison assumes $100 was invested on December&nbsp;18, 1997, in the Company's Common Stock and in each of the foregoing indices. It also assumes reinvestment of any
dividends. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company does not make, nor does it endorse, any predictions as to future stock performance. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>TOTAL RETURN INDEX </FONT></P>

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<TABLE WIDTH="62%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="52%"><FONT SIZE=2><B>Source: S&amp;P Compustat</B></FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="27%"><FONT SIZE=2><B>Base date = 100</B></FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="15%"><FONT SIZE=2><B>12/18/97</B></FONT></TD>
</TR>
</TABLE>
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<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="30%" ALIGN="LEFT"><BR><FONT SIZE=1><B> Company Name<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1><B><BR>&nbsp;</B></FONT></TH>
<TH WIDTH="9%" ALIGN="CENTER"><FONT SIZE=1><B><BR>
18-Dec-97</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1><B><BR>&nbsp;</B></FONT></TH>
<TH WIDTH="9%" ALIGN="CENTER"><FONT SIZE=1><B><BR>
31-Dec-97</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1><B><BR>&nbsp;</B></FONT></TH>
<TH WIDTH="9%" ALIGN="CENTER"><FONT SIZE=1><B><BR>
31-Dec-98</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1><B><BR>&nbsp;</B></FONT></TH>
<TH WIDTH="9%" ALIGN="CENTER"><FONT SIZE=1><B><BR>
31-Dec-99</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1><B><BR>&nbsp;</B></FONT></TH>
<TH WIDTH="9%" ALIGN="CENTER"><FONT SIZE=1><B><BR>
29-Dec-00</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1><B><BR>&nbsp;</B></FONT></TH>
<TH WIDTH="9%" ALIGN="CENTER"><FONT SIZE=1><B><BR>
31-Dec-01</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1><B><BR>&nbsp;</B></FONT></TH>
<TH WIDTH="9%" ALIGN="CENTER"><FONT SIZE=1><B><BR>
28-Mar-02</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="30%"><FONT SIZE=2>ISAACS I C &amp; CO INC</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>100.00</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>101.25</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>16.25</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>14.38</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>6.56</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>3.20</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>4.50</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="30%"><FONT SIZE=2>PEER GROUP INDEX</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>100.00</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>100.60</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>102.23</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>84.63</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>78.55</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>91.88</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>102.68</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="30%"><FONT SIZE=2>S&amp;P 500 COMP-LTD</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>100.00</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>101.64</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>130.68</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>158.18</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>143.78</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>126.71</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>127.05</FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>17</FONT></P>

<HR NOSHADE>
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<A NAME="page_dk1971_1_18"> </A>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="dk1971_security_ownership_of_certain___sec02525"> </A>
<A NAME="toc_dk1971_4"> </A>
<BR></FONT><FONT SIZE=2><B>SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth certain information as of [June&nbsp;&nbsp;&nbsp;&nbsp;], 2002 with respect to the beneficial ownership of the
Company's Common Stock (including shares issuable upon the exercise of outstanding options that are exercisable as of that date or within 60&nbsp;days thereafter) by (i)&nbsp;each person (or group
of affiliated persons) who is known by the Company to own beneficially more than 5.0% of the outstanding Common Stock, (ii)&nbsp;each of the Company's directors, (iii)&nbsp;the Chief Executive
Officer and each of the other Named Executive Officers of the Company, and (iv)&nbsp;all directors and executive officers of the Company as a group: </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="84%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="65%" ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%" ROWSPAN=2><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=3 ROWSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Shares Beneficially Owned<SUP>(2)</SUP></B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH WIDTH="65%" ROWSPAN=2 ALIGN="LEFT"><FONT SIZE=1><B>Name of Beneficial Owners<BR> </B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="12%" ALIGN="CENTER"><FONT SIZE=1><B>Number</B></FONT><HR NOSHADE></TH>
<TH WIDTH="10%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="10%" ALIGN="CENTER"><FONT SIZE=1><B>Percent<SUP>(3)</SUP></B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="65%"><FONT SIZE=2>Robert J. Arnot<SUP>(1)(7)</SUP></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>489,871</FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="65%"><FONT SIZE=2>Neal J. Fox</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="65%"><FONT SIZE=2>Daniel J. Gladstone</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="65%"><FONT SIZE=2>Jon Hechler<SUP>(1)(4)(7)</SUP></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>1,102,152</FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="65%"><FONT SIZE=2>Danielle Lambert</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="65%"><FONT SIZE=2>Thomas P. Ormandy<SUP>(1)(7)</SUP></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>158,320</FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="65%"><FONT SIZE=2>Ronald S. Schmidt<SUP>(1)(7)</SUP></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>159,211</FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="65%"><FONT SIZE=2>Eugene C. Wielepski<SUP>(1)(7)</SUP></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>194,242</FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="65%"><FONT SIZE=2>Staffan Ahrenberg</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="65%"><FONT SIZE=2>Olivier Bachellerie</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="65%"><FONT SIZE=2>Rene Faltz</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="65%"><FONT SIZE=2>Robert Stephen Stec</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="65%"><FONT SIZE=2>Roland Loubet</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>100,000</FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="65%"><FONT SIZE=2>Wurzburg S.A.<SUP>(5)(7)</SUP></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>4,466,667</FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2><SUP>(6)</SUP></FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="65%"><FONT SIZE=2>All directors and executive officers as a group ([13]&nbsp;persons)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE>
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<HR NOSHADE ALIGN="LEFT" WIDTH="120">
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=1>*</FONT></DT><DD><FONT SIZE=1>Less
than one percent. </FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=1>(1)</FONT></DT><DD><FONT SIZE=1>The
business address of such person is c/o I.C. Isaacs&nbsp;&amp; Company,&nbsp;Inc., 3840 Bank Street, Baltimore, Maryland 21224-2522. </FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=1>(2)</FONT></DT><DD><FONT SIZE=1>Except
as described herein and subject to certain shareholders agreements and applicable community property laws and similar laws, each person listed above has sole voting and
investment power with respect to such shares. See "Certain Relationships and Related Transactions." </FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=1>(3)</FONT></DT><DD><FONT SIZE=1>Based
on percentage of total number of shares outstanding as of [June&nbsp;&nbsp;&nbsp;&nbsp;, 2002] plus 3,300,000 shares of Series&nbsp;A Convertible Preferred
Stock, $0.0001 par value, held by Textile, which are convertible into Common Stock at a one-to-one conversion ratio. </FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=1>(4)</FONT></DT><DD><FONT SIZE=1>Includes
661,369 shares held by the Estate of Ira J. Hechler, of which Jon Hechler is sole executor. </FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=1>(5)</FONT></DT><DD><FONT SIZE=1>In
August&nbsp;2000, the Company issued 500,000 shares of restricted Common Stock to Latitude Licensing Corp. ("Latitude") in connection with the amendment of a license agreement
between the Company and Latitude. Immediately upon receipt of the Common Stock, Latitude transferred such Common Stock to its affiliate, Wurzburg Holding S.A. (known in abbreviation as Wurzburg S.A.)
("Wurzburg"). The address of Wurzburg is 134 Boulevard de la Petrusse, L-2330 Luxembourg. Textile Investment International ("Textile"), a wholly-owned subsidiary of Wurzburg, has acquired
from Ambra&nbsp;Inc. 666,667 shares of Common Stock and 3,300,000 shares of Series&nbsp;A Convertible Preferred Stock, $.0001 par value, which Preferred Stock is convertible into 3,300,000 shares
of Common Stock at a one-to-one conversion ratio beginning January&nbsp;1, 2003. The address of Textile is 41, avenue de la Gare, Luxembourg L-1611, Grand Duchy
of Luxembourg. </FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=1>(6)</FONT></DT><DD><FONT SIZE=1>Includes
3,300,000 shares of Series&nbsp;A Convertible Preferred Stock, $0.0001 par value, held by Textile, which are convertible into Common Stock at a
one-to-one conversion ratio beginning January&nbsp;1, 2003. Does not include 500,000 shares of common stock issuable upon the exercise of warrants to be granted to Textile
upon consummation of the transactions contemplated under the Framework Agreement. </FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=1>(7)</FONT></DT><DD><FONT SIZE=1>Robert
J. Arnot, Jon Hechler, Ronald S. Schmidt, Eugene C. Wielepski and Thomas P. Ormandy (collectively, the "Principal Stockholders") are individual stockholders of the Company who
have entered into a Voting Agreement dated May&nbsp;14, 2002 (the "Voting Agreement") with Wurzburg, Textile and the Company relating to 3,270,463 shares of Common Stock, which is approximately
[&nbsp;&nbsp;&nbsp;&nbsp;]% of the Company's outstanding Common Stock. Pursuant to the Voting Agreement, each of the Principal
Stockholders, Wurzburg and Textile have agreed to vote their shares of Common Stock in favor of a proposal to approve the transactions contemplated under the Framework Agreement at the Company's 2002
Annual Meeting of Stockholders, for the election of the designees of Wurzburg and Textile to the Company's Board of Directors, and as otherwise necessary to effectuate the transactions contemplated
under the Framework Agreement and the exhibits thereto. Each of the Principal Stockholders has granted to an attorney-in-fact designated by Wurzburg and Textile an irrevocable
proxy coupled with an interest to vote all Common Stock beneficially owned by such Principal Stockholder in the event of a breach by such Principal Stockholder of his obligations under the Voting
Agreement. Except with respect to the matters governed by the Voting Agreement, the Principal Stockholders disclaim beneficial ownership with respect to one another's shares and disclaim beneficial
ownership of the shares held by Wurzburg and Textile, and Wurzburg and Textile disclaim beneficial ownership of the shares of Common Stock held by the Principal Stockholders. </FONT></DD></DL>
<P ALIGN="CENTER"><FONT SIZE=2>18</FONT></P>

<HR NOSHADE>
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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="page_dm1971_1_19"> </A> </FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="dm1971_certain_relationships_and_related_transactions"> </A>
<A NAME="toc_dm1971_1"> </A>
<BR></FONT><FONT SIZE=2><B>CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS    <BR>  </B></FONT></P>


<P><FONT SIZE=2><B>Transactions with Ambra&nbsp;Inc.  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In October&nbsp;1999, the Company, Ambra&nbsp;Inc. ("Ambra") and Hugo Boss A.G. ("Hugo Boss") entered into certain agreements including (i)&nbsp;a license
agreement (the "License Agreement") granting the Company rights to manufacture and sell apparel using the BOSS brand name and (ii)&nbsp;an agreement pursuant to which the Company issued to Ambra an
aggregate of 3.3&nbsp;million shares of Series&nbsp;A Convertible Preferred Stock, par value $.0001 per share, of the Company (the "Preferred Stock") and 666,667 shares of common stock of the
Company. In March&nbsp;2001, the Company, Ambra and Hugo Boss entered into an agreement to terminate the Company's rights under the License Agreement, pursuant to which, among other things,
(i)&nbsp;the Company issued to Ambra a subordinated secured promissory note (the "Note") of the Company in the principal amount of $7.2&nbsp;million, with principal and interest at an annual rate
of 8% payable in twenty-four (24)&nbsp;quarterly installments in the amount of (a)&nbsp;$202,500 each through December&nbsp;31, 2001, (b)&nbsp;$420,000 each from March&nbsp;31,
2002 through September&nbsp;30, 2006 and (c)&nbsp;$407,085.57 on December&nbsp;31, 2006 and (ii)&nbsp;the Preferred Stock would be (a)&nbsp;redeemable by the Company until June&nbsp;30,
2002 for $1.00 per share, (b)&nbsp;redeemable by the Company from July&nbsp;1, 2002 through December&nbsp;31, 2002 for the greater of $1.00 per share or the amount equal to the market value of
the number of shares of common stock which the holder of the Preferred Stock would have held had the shares of Preferred Stock to be redeemed been converted to common stock immediately prior to such
redemption; (c)&nbsp;redeemable by Ambra at any time upon an event of default under the Note; and (d)&nbsp;convertible by Ambra from January&nbsp;1, 2003 through December&nbsp;31, 2006 into
(at Ambra's election): (x)&nbsp;a subordinated secured promissory note of the Company in the amount equal to the number of shares of Preferred Stock converted </FONT> <FONT SIZE=2><I>multiplied</I></FONT><FONT SIZE=2> by $1.00, carrying an interest
rate of 12% per annum and payable over a term of twenty-one (21)&nbsp;months or
(y)&nbsp;common stock of the Company at a 1:1 conversion ratio. The Company also executed a security agreement in favor of Ambra as security for the Company's obligations under the Note and agreed
to grant a mortgage or deed of trust on the Company's real estate in Milford, Delaware and Baltimore, Maryland as security for the Company's obligations under the Note. </FONT></P>

<P><FONT SIZE=2><B>Transactions with Wurzburg, Textile and Latitude  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In November&nbsp;1997, the Company entered into an exclusive license agreement (the "Girbaud Men's Agreement") with Girbaud Design,&nbsp;Inc. and its
affiliate Wurzburg to manufacture and market men's jeanswear, casualwear and outwear under the Girbaud brand and certain related trademarks (the "Girbaud Marks") in all channels of distribution in the
United States, including Puerto Rico and the U.S. Virgin Islands. In March&nbsp;1998, the Girbaud Men's Agreement was amended and restated to include active influences sportswear as a licensed
product category and to name Latitude as the licensor. Also in March&nbsp;1998, the Company entered into an exclusive license agreement (the "Girbaud Women's Agreement" and together with the Girbaud
Men's Agreement, the "Girbaud Agreements") with Latitude to manufacture and market women's jeanswear, casualwear and outerwear, including active influenced sportswear, under the Girbaud Marks in all
channels of distribution in the United States including Puerto Rico and the U.S. Virgin Islands. The Girbaud Agreements have been extended until December&nbsp;31, 2002, upon which date the Company
will have the option to renew the agreements for an additional five years. The Girbaud Agreements generally allow the Company to use the Girbaud Marks on apparel designed by or for the Company or
based on designs and styles previously associated with the Girbaud brand, subject to quality control by Latitude over the final designs of the products, marketing and advertising material and
manufacturing premises. The Girbaud Agreements provide that they may be terminated by Latitude upon the occurrence of certain events, including, but not limited to, a breach by the Company of certain
obligations under the agreements that remain uncured following certain specified grace periods. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>19</FONT></P>

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<A NAME="page_dm1971_1_20"> </A>
<BR>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
the Girbaud Men's Agreement, the Company is required to make payments to Latitude in an amount equal to 6.25% of the Company's net sales of regular license merchandise and 3.0% in
the case of certain irregular and closeout licensed merchandise. The Company is subject to guaranteed minimum annual royalty payments of $3.0&nbsp;million each year from 2002 through 2007. The
Company is required to spend the greater of an amount equal to 3% of Girbaud men's net sales or $500,000 in advertising and related expenses promoting the men's Girbaud brand products in each year
through the term of the Girbaud men's agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
the Girbaud Women's Agreement the Company is required to make payments to Latitude in an amount equal to 6.25% of the Company's net sales of regular licensed merchandise and 3.0%
in the case of certain irregular and closeout licensed merchandise. The Company is subject to guaranteed minimum annual royalty payments of $1.5&nbsp;million each year from 2002 through 2007. The
Company is required to spend the greater of an amount equal to 3% of Girbaud women's net sales of $400,000 in advertising and related expenses promoting the women's Girbaud brand products in each year
through the term of the Girbaud Women's Agreement. In addition, over the term of the Girbaud Women's Agreement the Company is required to contribute $190,000 per year to Latitude's advertising and
promotional expenditures for the Girbaud brand. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
August&nbsp;1999, the Company issued 500,000 shares of restricted common stock to Latitude in connection with an amendment of the Girbaud's Women's Agreement to defer the obligation
to open a
Girbaud retail store. Under the Girbaud Women's Agreement, if the Company has not signed a lease agreement for a Girbaud retail store by July&nbsp;31, 2002, the Company will become obligated to pay
Latitude an additional $500,000 in royalties. During 2001, the Company decided not to sign a lease agreement for a Girbaud retail store and paid $175,000 of this royalty, the remainder of which
[will be paid by] July&nbsp;31, 2002. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Immediately
upon the issuance of the 500,000 shares of restricted Common Stock to Latitude, Latitude transferred the shares to its affiliate, Wurzburg. The shares are subject to a
Shareholders' Agreement dated August&nbsp;9, 1999 (the "Latitude Shareholders' Agreement"), which provides that before such shares may be sold or transferred, the Company shall have a right of first
refusal. The Latitude Shareholder's Agreement also provides that in the event that shareholders holding a majority of the Common Stock subject to the Second Restated Shareholders' Agreement dated
June&nbsp;30, 1999 by and between the Company and shareholders of the Company who were shareholders prior to the initial public offering of the Company's Common Stock (the "Participating
Shareholders") indicate in writing that they will vote in favor of certain change in control transactions, the Company may require the shareholders subject to the Latitude Shareholders' Agreement to
participate in such transaction on the same terms and conditions applicable to the Participating Shareholders. Under the terms of the Latitude Shareholders' Agreement, Latitude was granted certain
piggyback registration rights. The Latitude Shareholders' Agreement will be terminated upon execution of the Stockholder's Agreement among the Company, Textile and Wurzburg contemplated by the
Framework Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
January&nbsp;2000, the Company entered into a global sourcing agreement with G.I. Promotions, an affiliate of Wurzburg, to act as a non-exclusive sourcing agent to
licensees of the Marithe&nbsp;&amp; Francois Girbaud trademark for the manufacture of Girbaud jeanswear and sportswear (the "Global Sourcing Agreement"). The Global Sourcing Agreement extends until
December&nbsp;31, 2003 and provides that the Company shall net a facilitation fee of 5.0% of the total FOB pricing for each order shipped to licensees under the agreement. Also in
January&nbsp;2000, the Company entered into a license agreement with Wurzburg. The license has a term of three years and provides that the Company shall pay Wurzburg a royalty of 1.0% of the total
FOB pricing for each order shipped to a licensee under the Global Sourcing Agreement. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
May&nbsp;2002, Textile purchased from Ambra 666,667 shares of the Company's Common Stock, 3.3&nbsp;million shares of the Company's Preferred Stock and the Note. Also in
May&nbsp;2002, the Company </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>20</FONT></P>

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<A NAME="page_dm1971_1_21"> </A>
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<P><FONT SIZE=2>
entered into a Framework Agreement (the "Framework Agreement") with Girbaud. Under the Framework Agreement, the Company agreed to submit the following to the stockholders for approval at the 2002
Annual Meeting of Stockholders: (i)&nbsp;the issuance of warrants to Textile to purchase 500,000 shares of the Company's common stock at an exercise price of $0.75 per share, (ii)&nbsp;a
Stockholders' Agreement with Textile and Wurzburg establishing certain terms and conditions regarding the acquisition and disposition of the Company's securities as well as certain corporate
governance matters, (iii)&nbsp;an amendment to the Company's Certificate of Amendment to Certificate of Designation relating to the Preferred Stock to modify the rights and preferences of the
Company's Preferred Stock to make it immediately convertible, but only into common stock of the Company, and (iv)&nbsp;amendments to the Girbaud Licensing Agreements to add an additional option for
the Company to extend the term of each agreement by four additional years through 2011. The Company also agreed to restructure the Note to defer principal payments and extend its maturity by one year,
until December&nbsp;31, 2007. These
items are more fully described under "Proposal 1: Approval of the Transactions Contemplated by the Framework Agreement." </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
May&nbsp;20, 2002, pursuant to the Framework Agreement, the Board of Directors appointed Mr.&nbsp;Staffan Ahrenberg, a designee of Textile and Wurzburg, to fill the vacancy in
Class&nbsp;I of the Company's Board of Directors and on May&nbsp;22, 2002 pursuant to the Framework Agreement, the Board of Directors appointed Mr.&nbsp;Olivier Bachellerie, a designee of
Textile and Wurzburg, to fill another vacancy in Class&nbsp;III of the Company's Board of Directors. Mr.&nbsp;Bachellerie is the son of Marithe Bachellerie, the beneficial owner of 50% of the
outstanding stock of Wurzburg. The Board of Directors has also nominated three additional designees of Textile and Wurzburg, Messrs.&nbsp;Rene Faltz, Roland Loubet and Robert Stephen Stec, for
election to its nine-person Board of Directors at the 2002 Annual Meeting of Stockholders. See "Proposal 2: Election of Directors". </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the Framework Agreement and subject to stockholder approval, the Company has agreed to amend the Girbaud Agreements. These amendments would give the Company the option to
renew the Girbaud Agreements for an additional term through 2011. If the Girbaud Agreements are renewed in 2008, the Company would pay minimum royalties of $3.0&nbsp;million each year thereafter
through the term under the Girbaud Men's Agreement and $1.5&nbsp;million each year thereafter through the term under the Girbaud Women's Agreement. The Amendments also provide that the Company will
pay on behalf of Latitude the fee of one or more consultants designated by Latitude in the aggregate amount of $250,000 in 2002 and $300,000 each year thereafter. Latitude has advised the Company that
it has not yet determined who it shall designate as the consultant(s) under the amendments to the Girbaud Agreements. Although there are no present agreements or arrangements whereby any named
officers or directors of the Company would receive such consulting fees directly or indirectly, no assurances can be made that Latitude will not designate one or more directors and/or named officers
of the Company to receive such consulting fees in the future. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
connection with the execution of the Framework Agreement, the Company, Textile, Wurzburg, and Messrs.&nbsp;Arnot, Hechler, Schmidt, Wielepski and Ormandy, (collectively, the
"Principal Stockholders"), who own, together with Textile and Wurzburg, an aggregate of [3,270,463] shares of Common Stock, which is approximately [42%]
of the outstanding Common Stock of the Company, entered into a Voting Agreement. Pursuant to the Voting Agreement, the parties agreed to vote their shares of Common Stock of the Company in favor of
the proposal to approve the transactions contemplated under the Framework Agreement at the 2002 Annual Meeting of Stockholders, for the election of the Girbaud designees to the Company's Board of
Directors, and as otherwise necessary to effectuate the transactions contemplated under the Framework Agreement and the exhibits thereto. Each of the Principal Stockholders has granted to an
attorney-in-fact designated by Wurzburg and Textile an irrevocable proxy coupled with an interest to vote all shares of Common Stock beneficially owned by such Principal
Stockholder in the event of a breach by such Principal Stockholder of his </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>21</FONT></P>

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obligations under the Voting Agreement. See "Proposal 1. Approval of Transactions Contemplated by the Framework Agreement." </FONT></P>

<P><FONT SIZE=2><B>Consulting Agreements between Messrs.&nbsp;Robert Arnot and Daniel Gladstone and Latitude  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Messrs.&nbsp;Arnot and Gladstone have each entered into a consulting agreement with Latitude beginning May&nbsp;17, 2002 and terminating on
December&nbsp;31, 2005 or when the consultant is no longer employed by the Company, whichever occurs first. Under the terms of the consulting agreements, each will serve on an advisory committee to
assist in developing global strategy and a plan for the Marithe and Francois Girbaud brand and will attend regular meetings of the committee. If the committee is not established or is disbanded, each
will be required to meet in Europe with representatives of Latitude from time to time. As compensation, each receives an annual consulting fee of $100,000, except for the year 2002, for which the
consulting fee is $66,000. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>22</FONT></P>

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<P><FONT SIZE=2><B>PROPOSAL 3: APPROVAL OF THE COMPANY'S AMENDED AND RESTATED 1997 OMNIBUS STOCK PLAN  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors proposes that the stockholders of the Company approve the adoption of the Company's amended and restated 1997 Omnibus Stock Plan (the
"Plan"). The following is a fair and complete summary of the Plan as proposed; it is qualified in its entirety by reference to the full text of the Plan, which appears as Exhibit&nbsp;G to this
Proxy Statement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Plan, as initially adopted by the Board of Directors and approved by the stockholders, became effective May&nbsp;15, 1997. The Plan was amended and restated on April&nbsp;26,
1999 increasing the number of shares reserved for issuance to 1,100,000. Of the 1,1000,000 shares reserved for issuance under the Plan, awards with respect to approximately 1,091,250 shares are
currently outstanding. Consequently, only approximately 8,750 shares remain available for grant at this time. The proposed amendment and restatement of the Plan increases, to an aggregate of 1,600,000
shares, the number of shares reserved for issuance pursuant to awards under the Plan, making 500,000 additional shares available for grant. This increase in the number of shares reserved for issuance
under the Plan is the only change made to the Plan since it was last approved by the stockholders of the Company. The Board of Directors believes that approval of this increase is essential to the
Company's ability to continue to attract, retain and reward personnel key to the Company growth and financial success. </FONT></P>

<P><FONT SIZE=2><B>General  </B></FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purpose.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The purpose of the Plan is to promote the long-term growth and profitability of the Company by providing
key people with incentives to improve stockholder value and contribute to the growth and financial success of the Company, and by enabling the Company to attract, retain and reward the
best-available persons. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares Available Under The Plan.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The number of shares of Common Stock that may be issued with respect to awards granted under
the Plan and the maximum number of shares of Common Stock subject to awards of any combination that may be granted during any fiscal year of the Company to any individual, currently 500,000 shares per
individual, are subject to adjustment to reflect any stock dividends, spin-offs, split-ups, recapitalizations, mergers, consolidations, business combinations or exchanges of
shares and the like. If any award, or portion of an award, under the Plan expires or terminates unexercised, becomes unexercisable or is forfeited or otherwise terminated, surrendered or canceled as
to any shares, or if any shares of Common Stock are surrendered to the Company in connection with any award (whether or not such surrendered shares were acquired pursuant to any award), the shares
subject to such award and the surrendered shares shall thereafter be available for further awards under the Plan. As
of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2002, the fair market value of a share of the Company's Common
Stock, determined by the last reported sale price per share of Common Stock on such date as quoted in the OTC Bulletin Board, was $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;. </FONT></P>


<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Administration.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The Plan is administered by the Compensation Committee of the Board of Directors (hereinafter referred to as
the "Administrator"). The Administrator has full power and authority to take all actions necessary to carry out the purpose and intent of the Plan, including, but not limited to, the authority to:
(i)&nbsp;determine the eligible persons to whom, and the time or times at which awards are granted; (ii)&nbsp;determine the types of awards to be granted; (iii)&nbsp;determine the number of
shares to be covered by or used for reference purposes for each award; (iv)&nbsp;impose such terms, limitations, restrictions and conditions upon any such award as the Administrator deems
appropriate; (v)&nbsp;modify, amend, extend or renew outstanding awards, or accept the surrender of outstanding awards and substitute new awards (provided however, that, except as noted below, any
modification that would materially adversely affect any outstanding award may not be made without the consent of the holder); (vi)&nbsp;accelerate or otherwise change the time in which an award may
be exercised or becomes payable and to waive or accelerate the lapse, in whole or in part, of any restriction or condition with respect to </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>23</FONT></P>

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such award, including, but not limited to, any restriction or condition with respect to the vesting or exercisability of an award following termination of any grantee's employment or consulting
relationship; and (vii)&nbsp;establish objectives and conditions, if any, for earning awards and determining whether awards will be paid after the end of a performance period. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event of changes in the Common Stock of the Company by reason of any stock dividend, spin-off, split-up, recapitalization, merger, consolidation, business
combination or exchange of shares and the like, the Administrator shall, in its discretion, make appropriate adjustments to the maximum number and kind of shares reserved for issuance or with respect
to which awards may be granted under the Plan and to the number, kind and price of shares covered by outstanding awards, and shall, in its discretion and without the consent of holders of awards, make
any other adjustments in outstanding awards, including but not limited to reducing the number of shares subject to awards or providing or mandating alternative settlement methods such as settlement of
the awards in cash or in shares of Common Stock or other securities of the Company or of any other entity, or in any other matters
which relate to awards as the Administrator, in its sole discretion, determines to be necessary or appropriate. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Without
the consent of holders of awards, the Administrator in its discretion is authorized to make adjustments in the terms and conditions of, and the criteria included in, awards in
recognition of unusual or nonrecurring events affecting the Company, or the financial statements of the Company or any affiliate, or of changes in applicable laws, regulations, or accounting
principles, whenever the Administrator determines that such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available
under the Plan. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Participation.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Participation in the Plan is open to all employees, officers, directors and consultants of the Company or any
of its affiliates, as may be selected by the Administrator from time to time. As of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2002, the Company's four non-employee directors, and approximately
[125] employees and consultants were eligible to participate in the Plan. </FONT></P>


<P><FONT SIZE=2><B>Type Of Awards  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Plan allows stock options, stock appreciation rights, stock awards, phantom stock awards and performance awards to be granted. These awards may be granted
separately or in tandem with other awards. The Administrator determines the prices, expiration dates and other material conditions of all such awards. The Company or its affiliate may make or
guarantee loans to assist grantees in exercising awards and satisfying any withholding tax obligations arising from awards. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock Options.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The Plan allows the Administrator to grant either awards of incentive stock options as that term is defined in
section&nbsp;422 of the Internal Revenue Code of 1986, as amended (the "Code") or nonqualified stock options; provided, however, that awards of incentive stock options shall be limited to employees
of the Company or of any subsidiary of the Company. Options intended to qualify as incentive stock options under Code section&nbsp;422 must have an exercise price at least equal to fair market value
on the date of grant, but nonqualified stock options may be granted with an exercise price less than fair market value. The option exercise price may be paid in cash, by a broker- assisted cashless
exercise in accordance with Regulation&nbsp;T of the Board of Governors of the Federal Reserve System, or by any other means the Administrator approves. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
date, all options granted under the Plan are nonqualified stock options, each having an exercise price equal to the fair market value of the underlying shares when granted. The
employment agreement of Mr.&nbsp;Wielepski provides that he will be granted nonqualified stock options for the purchase of 10,000 shares of the Company's Common Stock at the fair market value of
such shares on the date granted. The employment agreements of Messrs.&nbsp;Arnot and Gladstone each provide that nonqualified stock options for the purchase of 50,000 shares each will be granted to
them, with an exercise price equal to the fair market value of the shares on the date granted, if the Company has Net Income of $3.0&nbsp;million </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>24</FONT></P>

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<P><FONT SIZE=2>
in any fiscal year and, in Mr.&nbsp;Gladstone's case, the Company also has Net Sales of Girbaud Women's Products of at least $30.0&nbsp;million. If this proposal to increase the shares available
under the Plan is approved by the stockholders, then the grants to Messrs.&nbsp;Wielepski, Arnot and Gladstone will be made under the Plan. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock Appreciation Rights.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The Plan allows the Administrator to grant awards of stock appreciation rights ("SAR"). An SAR
entitles the holder to receive a payment in cash, in shares of Common Stock, or in a combination of both, having an aggregate value equal to the product of (i)&nbsp;the excess of (A)&nbsp;the fair
market value on the exercise date of one share of Common Stock over (B)&nbsp;the base price per share specified in the grant agreement, times (ii)&nbsp;the number of shares specified by the SAR,
or portion thereof, which is exercised. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock And Phantom Stock Awards.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The Plan allows the Administrator to grant restricted or unrestricted stock awards, or awards
denominated in stock- equivalent units ("phantom stock") to eligible participants with or without payment of consideration by the grantee. Stock awards and phantom stock awards may be paid in cash, in
shares of Common Stock, or in a combination of both. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Performance Awards.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The proposed Plan allows the Administrator to grant performance awards which become payable in cash, in
shares of Common Stock, or in a combination of both, on account of attainment of one or more performance goals established by the Administrator. Performance goals established by the Administrator may
be based on the Company's or an affiliate's operating income or one or more other business criteria selected by the Administrator that apply to an individual or group of individuals, a business unit,
or the Company or an affiliate as a whole, over such performance period as the Administrator may designate. </FONT></P>


<P><FONT SIZE=2><B>Amendment And Termination  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors of the Company may terminate, amend or modify the Plan or any portion thereof at any time. </FONT></P>

<P><FONT SIZE=2><B>Awards Under The Plan  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because participation and the types of awards granted under the Plan are subject to the discretion of the Administrator, the benefits or amounts that will be
received by any participant or groups of participants if the Plan is approved are not currently determinable except as provided in the table below. The following table provides information regarding
awards granted under the Plan that are
contingent upon the stockholders approving the proposed Amended and Restated 1997 Omnibus Stock Plan: </FONT></P>

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<TABLE WIDTH="76%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="74%" ALIGN="LEFT"><FONT SIZE=1><B>Name<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="7%" ALIGN="CENTER"><FONT SIZE=1><B>Value<SUP>(1)</SUP></B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="14%" ALIGN="CENTER"><FONT SIZE=1><B>Number of Shares of Common Stock<BR>
Under Contingent<BR>
Awards</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="74%"><FONT SIZE=2>Robert J. Arnot<SUP>(2)</SUP></FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="CENTER"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>50,000</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="74%"><FONT SIZE=2>Daniel J. Gladstone<SUP>(2)</SUP></FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="CENTER"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>50,000</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="74%"><FONT SIZE=2>Eugene C. Wielepski<SUP>(3)</SUP></FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="CENTER"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>10,000</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<HR NOSHADE ALIGN="LEFT" WIDTH="120">
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=1>(1)</FONT></DT><DD><FONT SIZE=1>The
value of each award is zero because the exercise price of the award will be equal to the fair market value of a share of Common Stock on the date of the grant (determined by the
last reported sale price per share of Common Stock on such date as reported on the OTC Bulletin Board)
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=1>(2)</FONT></DT><DD><FONT SIZE=1>These
awards were also contingent upon the Company achieving certain financial milestones, as provided in the individual's executive employment agreement. </FONT></DD></DL>
<P ALIGN="CENTER"><FONT SIZE=2>25</FONT></P>

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<DT style='margin-bottom:-11pt;'><FONT SIZE=1>(3)</FONT></DT><DD><FONT SIZE=1>Mr.&nbsp;Wielepski's
executive employment agreement requires the Company to grant him at least 10,000 options to purchase common stock by July&nbsp;31, 2002. </FONT></DD></DL>

<P><FONT SIZE=2><B>Federal Income Tax Consequences  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a general summary of the current federal income tax treatment of stock options, which are authorized to be granted under the Plan, based upon the
current provisions of the Code and regulations promulgated thereunder. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incentive Stock Options.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Incentive stock options under the Plan are intended to meet the requirements of Code
Section&nbsp;422. No tax consequences result from the grant of an incentive stock option. If an option holder acquires stock upon the exercise, no income will be recognized by the option holder for
ordinary income tax purposes (although the difference between the option exercise price and the fair market value of the stock subject to the option may result in alternative minimum tax liability to
the option holder) and the Company will be allowed no deduction as a result of such exercise, provided that the following conditions are met: (a)&nbsp;at all times during the period beginning with
the date of the granting of the option and ending on the day three months before the date of such exercise, the option holder is an employee of the Company or of a subsidiary; and (b)&nbsp;the
option holder makes no disposition of the stock within two years from the date the option is granted nor within one year after the stock is transferred to the option holder. The three-month period is
extended to one year in the event of disability and is waived in the event of death of the employee. In the event of a sale of such stock by the option holder after compliance with these conditions,
any gain realized over the price paid for the stock ordinarily will be treated as capital gain, and any loss will be treated as capital loss, in the year of the sale. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
the option holder fails to comply with the employment requirement discussed above, the tax consequences will be the same as for a nonqualified option, discussed below. If the option
holder fails to comply with the holding period requirements discussed above, the option holder will recognize ordinary income in an amount equal to the lesser of (i)&nbsp;the excess of the fair
market value of the stock on the date the option was exercised over the exercise price or (ii)&nbsp;the excess of the amount realized upon such disposition over the adjusted tax basis of the stock.
Any additional gain ordinarily will be recognized by the option holder as capital gain, either long-term or short-term, depending on the holding period of the shares. If the
option holder is treated as having received ordinary income because of his or her failure to comply with either condition above, an equivalent deduction will be allowed to the Company in the same
year. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nonqualified Stock Options.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;No tax consequences result from the grant of a nonqualified stock option. An option holder who
exercises a nonqualified stock option with cash generally will realize compensation taxable as ordinary income in an amount equal to the difference between the exercise price and the fair market value
of the shares on the date of exercise, and the Company will be entitled to a deduction from income in the same amount in the fiscal year in which the exercise occurred. The option holder's basis in
such shares will be the fair market value on the date income is realized, and when the holder disposes of the shares he or she will recognize capital gain or loss, either long-term or
short-term, depending on the holding period of the shares. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Disallowance Of Deductions.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The Code disallows deductions for publicly held corporations with respect to compensation in
excess of $1,000,000 paid to the corporation's chief executive officer and its four other most highly compensated officers. However, compensation payable solely on account of attainment of one or more
performance goals is not subject to this deduction limitation if the performance goals are objective, pre-established and determined by a compensation committee comprised solely of two or
more outside directors, the material terms under which the compensation is to be paid are disclosed to the stockholders and approved by a majority vote, and the compensation committee certifies that
the performance goals and other material terms were in fact satisfied before </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>26</FONT></P>

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the compensation is paid. Under this exception, the deduction limitation does not apply with respect to compensation otherwise deductible on account of stock options and stock appreciation rights
granted at fair market value under a plan which limits the number of shares that may be issued to any individual and which is approved by the corporation's stockholders. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors unanimously recommends that the stockholders vote </FONT><FONT SIZE=2><B>FOR</B></FONT><FONT SIZE=2> approval of the Company's amended and restated 1997 omnibus
stock plan. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>27</FONT></P>

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<P><FONT SIZE=2><B>PROPOSAL 4: RATIFICATION OF SELECTION OF INDEPENDENT AUDITORS OF<BR>
THE COMPANY  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors, upon the recommendation of the Audit Committee, has appointed the firm of BDO Seidman, LLP as independent auditors of the Company for the
fiscal year ending December&nbsp;31, 2002. BDO Seidman, LLP has served as the Company's independent auditors since 1985. Although not legally required to do so, the Board is submitting the selection
of BDO Seidman, LLP for ratification by the Company's stockholders at the Meeting. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
representative of BDO Seidman, LLP will be present at the Meeting and will have the opportunity to make a statement, if he or she desires to do so, and to respond to appropriate
questions from stockholders. </FONT></P>

<P><FONT SIZE=2><B>Fees  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors engaged the independent certified public accounting firm of BDO Seidman, LLP to audit the financial statements of the Company for year
ended December&nbsp;31, 2001. Representatives of BDO Seidman, LLP are expected to attend the Meeting to respond to appropriate questions and to make a statement if they so desire. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
the year ended December&nbsp;31, 2001, BDO Seidman, LLP provided various audit, audit related and non-audit services to the Company. Set forth below are the
aggregate fees billed for these services: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2><I>Audit Fees</I></FONT><FONT SIZE=2>: Aggregate fees billed for professional services rendered for the audit of the Company's fiscal 2001 annual financial
statements and limited review of financial statements included in the Company's Quarterly Reports on Form&nbsp;10-Q: $398,168
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2><I>Financial Information Systems Design and Implementation Fees:</I></FONT><FONT SIZE=2> None.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2><I>All other fees:</I></FONT><FONT SIZE=2>
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2>Aggregate
fees billed for professional services rendered during fiscal 2001 related to the audit of an employee benefit plan and consultation on accounting matters: $61,613.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(ii)</FONT></DT><DD><FONT SIZE=2>Aggregate
fees billed for professional services rendered related to tax services and other matters: $22,854. </FONT></DD></DL>
</DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
audit committee of the Company's Board of Directors has determined that the provision of services covered by item (c)&nbsp;above is compatible with maintaining the independence of
BDO Seidman, LLP. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors recommends that stockholders vote </FONT><FONT SIZE=2><B>FOR</B></FONT><FONT SIZE=2> ratification of the appointment of BDO Seidman, LLP as independent auditors
of the Company for the fiscal year ending December&nbsp;31, 2002. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="dm1971_audit_committee"> </A>
<A NAME="toc_dm1971_2"> </A>
<BR></FONT><FONT SIZE=2><B>AUDIT COMMITTEE    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Audit Committee of the Board is responsible for, among other things, considering the appointment of the independent auditors for the Company, reviewing with
the auditors the plan and scope of the audit and the audit fees, monitoring the adequacy of reporting and internal controls, and meeting periodically with the independent auditors. All the members of
the Audit Committee are independent. The Board has adopted a written Charter of the Audit Committee. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>28</FONT></P>

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<A NAME="page_dm1971_1_29"> </A>
<BR>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="dm1971_report_of_audit_committee"> </A>
<A NAME="toc_dm1971_3"> </A>
<BR></FONT><FONT SIZE=2><B>REPORT OF AUDIT COMMITTEE    <BR>  </B></FONT></P>

<P><FONT SIZE=2>To
the Board of Directors of I.C. Isaacs&nbsp;&amp; Company, Inc: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have reviewed and discussed with management the Company's audited financial statements as of and for the year ended December&nbsp;31, 2001. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have discussed with the independent auditors the matters required to be discussed by Statement on Auditing Standards No.&nbsp;61, Communications with Audit Committees, as amended,
by the Auditing Standards Board of the American Institute of Certified Public Accountants. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have received and reviewed the written disclosures and the letter from the independent auditors required by Independence Standard No.&nbsp;1, Independence Discussions with Audit
Committees, as amended, by the Independence Standards Board, and have discussed with the auditors their independence and considered the compatibility of non-audit services with the
auditors independence. Based on the reviews and discussions referred to above, we recommend to the Board of Directors that the financial statements referred to above be included in the Company's
Annual Report on Form&nbsp;10-K for the year ended December&nbsp;31, 2001. </FONT></P>

<P><FONT SIZE=2>Dated
April&nbsp;30, 2002<BR>
Ronald S. Schmidt, Chairman<BR>
Neal J. Fox<BR>
Anthony Marterie </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>29</FONT></P>

<HR NOSHADE>
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<A NAME="page_dm1971_1_30"> </A>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="dm1971_section_16(a)_beneficia__dm102051"> </A>
<A NAME="toc_dm1971_4"> </A>
<BR></FONT><FONT SIZE=2><B>SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE    <BR>  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;16(a) of the Securities Exchange Act of 1934, as amended, requires the Company's executive officers and directors, and persons who beneficially own
10% or more of the Company's Common Stock (the "Reporting Persons"), to file reports regarding their Company Common Stock ownership and changes in ownership with the SEC. Based solely on a review of
the copies of such forms furnished to the Company and written representations from certain of the Reporting Persons, the Company
believes that, except as specifically set forth below, during 2000 and through the date hereof, the Reporting Persons complied with all Section&nbsp;16(a) reporting requirements applicable to them: </FONT></P>

<UL>

<P><FONT SIZE=2>Messrs.&nbsp;Ahrenberg
and Bachellerie each filed a Form&nbsp;3 reporting their initial beneficial ownership of Common Stock of the Company several days late. At the time of the required filing,
nether Mr.&nbsp;Ahrenberg nor Mr.&nbsp;Bachellerie owned any shares of Common Stock of the Company. </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="dm1971_stockholder_proposals_for_2002__sto02302"> </A>
<A NAME="toc_dm1971_5"> </A>
<BR></FONT><FONT SIZE=2><B>STOCKHOLDER PROPOSALS FOR 2002 ANNUAL MEETING OF STOCKHOLDERS    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to have been considered for inclusion in the proxy statement and form of proxy relating to the 2002 Annual Meeting of Stockholders, stockholder proposals
must have been submitted within a reasonable time before the Company printed and mailed this proxy statement. Any proposal that is not received at the Company's principal executive offices within such
reasonable time will be considered untimely and may be excluded from the proxy statement and form of proxy. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stockholder
proposals to be presented at the 2002 Annual Meeting of Stockholders, but which will not be included in the proxy statement and form of proxy relating to such meeting, must
be received by the Secretary at the Company's principal executive offices no later than the close of business on the tenth day following the day on which notice of the date of the 2002 Annual Meeting
was mailed or public disclosure of the date of the 2002 Annual Meeting is made, whichever is first. Any such proposal received after such time will be considered untimely, may be excluded from
consideration at the 2002 Annual Meeting and, if brought before the meeting, the persons named in the proxy for such meeting may exercise their discretionary voting power with respect to any such
proposal. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="dm1971_stockholder_proposals_for_2003__sto02303"> </A>
<A NAME="toc_dm1971_6"> </A>
<BR></FONT><FONT SIZE=2><B>STOCKHOLDER PROPOSALS FOR 2003 ANNUAL MEETING OF STOCKHOLDERS    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The deadline for submission of stockholder proposals for inclusion in the proxy statement and form of proxy relating to the 2003 Annual Meeting of Stockholders is
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;. Any such proposal that is received at the Company's principal executive offices after such date will be
considered untimely and may be excluded from the proxy statement and form of
proxy. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stockholder
proposals to be presented at the 2003 Annual Meeting of Stockholders, but which will not be included in the proxy statement and form of proxy relating to such meeting, must
be received by the Secretary at the Company's principal executive offices
between&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;. Any such proposal received before&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;or
after&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;will
be considered untimely, may be excluded from consideration at the 2003 Annual Meeting and, if brought before the meeting, the persons named in the proxy for such meeting may exercise their
discretionary voting power with respect to any such proposal. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>30</FONT></P>

<HR NOSHADE>
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<A NAME="page_dm1971_1_31"> </A>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="dm1971_other_matters"> </A>
<A NAME="toc_dm1971_7"> </A>
<BR></FONT><FONT SIZE=2><B>OTHER MATTERS    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors of the Company does not know of any matters other than those described in this Proxy Statement that will be presented for action at the
Meeting. If any other matters are properly brought before the Meeting, the persons named in the accompanying proxies will vote the shares represented by such proxies on such matters as instructed by
the Board of Directors of the Company, who have instructed the proxies to vote in accordance with the proxies' own best judgment in the absence of express instruction from the Board. </FONT></P>

<UL>
<UL>
<UL>
<UL>
<UL>
<UL>
<UL>
<UL>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>By
Order of the Board of Directors </FONT></P>

<P><FONT SIZE=2>Robert
J. Arnot<BR>
Chairman of the Board, Chief Executive<BR>
Officer and President </FONT></P>

<P><FONT SIZE=2>Eugene
C. Wielepski<BR>
Vice President&#151;Finance,<BR>
Chief Financial Officer and<BR>
Corporate Secretary </FONT></P>

</UL>
</UL>
</UL>
</UL>
</UL>
</UL>
</UL>
</UL>
</UL>
</UL>
</UL>

<P><FONT SIZE=2>Baltimore,
Maryland<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2002 </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>31</FONT></P>

<HR NOSHADE>
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<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<!-- TOC_END -->
<P ALIGN="RIGHT"><FONT SIZE=2><A
NAME="ma1971_exhibit_a"> </A>
<A NAME="toc_ma1971_1"> </A>
<BR></FONT><FONT SIZE=2><B><U>EXHIBIT&nbsp;A</U>    <BR>  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ma1971_framework_agreement"> </A>
<A NAME="toc_ma1971_2"> </A></FONT> <FONT SIZE=2><B>FRAMEWORK AGREEMENT    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Framework Agreement (this "</FONT><FONT SIZE=2><B>Agreement</B></FONT><FONT SIZE=2>") is made as of the 14th day of May, 2002 (the
"</FONT><FONT SIZE=2><B>Effective Date</B></FONT><FONT SIZE=2>"), between I.C. ISAACS&nbsp;&amp; COMPANY,&nbsp;INC., a Delaware corporation (the
"</FONT><FONT SIZE=2><B>Corporation</B></FONT><FONT SIZE=2>"), I.C. ISAACS&nbsp;&amp; COMPANY L.P., a Delaware limited partnership ("</FONT><FONT SIZE=2><B>Isaacs</B></FONT><FONT SIZE=2>"), Textile
Investment International S.A., a Luxembourg corporation ("</FONT><FONT SIZE=2><B>Textile Investment</B></FONT><FONT SIZE=2>"), Latitude Licensing Corp., a Delaware corporation
("</FONT><FONT SIZE=2><B>Latitude Licensing</B></FONT><FONT SIZE=2>"), and W&uuml;rzburg Holding S.A., a Luxembourg corporation, also known in abbreviation as W&uuml;rzburg S.A.
("</FONT><FONT SIZE=2><B>W&uuml;rzburg</B></FONT><FONT SIZE=2>") (Textile Investment, Latitude Licensing and W&uuml;rzburg are each referred to herein individually as a
"</FONT><FONT SIZE=2><B>Girbaud Entity</B></FONT><FONT SIZE=2>" and collectively as the "</FONT><FONT SIZE=2><B>Girbaud Entities</B></FONT><FONT SIZE=2>"). </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
consideration of the premises and the mutual promises herein contained, the sufficiency and adequacy of which are acknowledged and agreed to be fair and adequate, the parties
intending to be legally bound agree as follows: </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B><U>ARTICLE I</U><BR>
<U>CONSTRUCTION AND DEFINED TERMS</U>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
1.01</FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;<U>Articles and Sections.</U></I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The Article and Section headings and captions
in this Agreement are for convenience only and shall not affect the construction or interpretation of this Agreement. The references in this Agreement to Articles and Sections shall be read as
Articles or Sections of this Agreement unless otherwise specifically provided. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
1.02.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;<U>Defined Terms</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise expressly stated in this Agreement,
capitalized terms used in this Agreement shall have the following meanings: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>Ambra</B></FONT><FONT SIZE=2>" As defined in Section&nbsp;2.02. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>Ambra/Textile Purchase Agreement</B></FONT><FONT SIZE=2>" As defined in Section&nbsp;2.02. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>Amendment to Men's License Agreement</B></FONT><FONT SIZE=2>" As defined in Section&nbsp;2.01. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>Amendment to Women's License Agreement</B></FONT><FONT SIZE=2>" As defined in Section&nbsp;2.01. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>Certificate of Designation</B></FONT><FONT SIZE=2>" As defined in Section&nbsp;2.01. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>Class&nbsp;II Director</B></FONT><FONT SIZE=2>" means one of the Directors elected at the 2002 Annual Meeting of Stockholders to serve until the 2005 Annual
Meeting of Stockholders. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>Code</B></FONT><FONT SIZE=2>" means the Internal Revenue Code of 1986, as amended. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>Common Stock</B></FONT><FONT SIZE=2>" As defined in Section&nbsp;2.01. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>Company Director</B></FONT><FONT SIZE=2>" means any Company Director (as defined in the form of Stockholders' Agreement attached hereto as
<U>Exhibit&nbsp;D</U>, which definition is incorporated herein by reference). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>Company-Nominated Independent Director</B></FONT><FONT SIZE=2>" means any Company-Nominated Independent Director (as defined in the form of Stockholders'
Agreement attached hereto as <U>Exhibit&nbsp;D</U>, which definition is incorporated herein by reference). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>Congress Financial</B></FONT><FONT SIZE=2>" Congress Financial Corporation, a Delaware corporation, and its successors and assigns. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>Congress Financial Credit Documents</B></FONT><FONT SIZE=2>" means collectively, the Accounts Financing Agreement [Security Agreement]
and Covenant Supplement to Accounts Financing Agreement [Security Agreement] dated June&nbsp;16, 1992, by and between Congress Financial and Isaacs, and all agreements,
documents, and instruments at any time executed and/or delivered by Isaacs or any other Person to, with, or in favor of,
Congress Financial in connection therewith or related thereto, as all of the foregoing may be amended, modified, supplemented, extended, renewed, restated, or replaced from time to time. </FONT></P>

<HR NOSHADE>

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<A NAME="page_ma1971_1_2"> </A>
<BR>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>Corporation Registered Agent</B></FONT><FONT SIZE=2>" As defined in Section&nbsp;10.07. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>D&nbsp;&amp; O Questionnaire</B></FONT><FONT SIZE=2>" means any directors and officers questionnaire for the Corporation prepared by the Corporation's counsel. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>Directors</B></FONT><FONT SIZE=2>" means the members of the Board of Directors of the Corporation. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>Exchange Act</B></FONT><FONT SIZE=2>" As defined in Section&nbsp;3.05. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>First Consulting Fee Payment</B></FONT><FONT SIZE=2>" As defined in Section&nbsp;3.03. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>Girbaud License Agreements</B></FONT><FONT SIZE=2>" means the Trademark License and Technical Assistance Agreement dated January&nbsp;15, 1998 and the
Trademark License and Technical Assistance Agreement For Women's Collections dated March&nbsp;4, 1998, both by and between Latitude Licensing and Isaacs and both as amended. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>Isaacs Registered Agent</B></FONT><FONT SIZE=2>" As defined in Section&nbsp;10.07. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>Latitude Registered Agent</B></FONT><FONT SIZE=2>" As defined in Section&nbsp;10.07. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>New York Court</B></FONT><FONT SIZE=2>" As defined in Section&nbsp;10.06. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>New York Courts</B></FONT><FONT SIZE=2>" As defined in Section&nbsp;10.06. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>Original Note</B></FONT><FONT SIZE=2>" means the Subordinated Secured Promissory Note dated as of March&nbsp;15, 2001 in the original principal amount of Seven
Million Two Hundred Thousand Dollars ($7,200,000) made by Isaacs payable to the order of Ambra. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>Person</B></FONT><FONT SIZE=2>" means any natural person, corporation, limited liability company, partnership, joint venture, entity, association, joint-stock
company, trust or unincorporated organization and any governmental authority. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>Process Agent</B></FONT><FONT SIZE=2>" As defined in Section&nbsp;10.07. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>Proxy Statement</B></FONT><FONT SIZE=2>" means the Corporation's Proxy Statement for the 2002 Annual Meeting of Stockholders. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>Replacement Note</B></FONT><FONT SIZE=2>" means the Amended and Restated Subordinated Secured Promissory Note dated as of May&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2002 with a
principal amount of Six Million Five Hundred Fifty-seven Thousand Nine Hundred Eight and 53/100 Dollars ($6,557,908.53) in the form attached hereto as <U>Exhibit&nbsp;A</U>. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>Satisfactory Nominees</B></FONT><FONT SIZE=2>" As defined in the form of Stockholders' Agreement attached hereto as
<U>Exhibit&nbsp;D</U>. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>Securities Act</B></FONT><FONT SIZE=2>" As defined in Section&nbsp;3.05. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>Stock</B></FONT><FONT SIZE=2>" As defined in the form of Stockholders' Agreement attached hereto as <U>Exhibit&nbsp;D</U>, which
definition is incorporated herein by reference). </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>Stockholder Director</B></FONT><FONT SIZE=2>" means any Stockholder Director (as defined in the form of Stockholders' Agreement attached hereto as
<U>Exhibit&nbsp;D</U>, which definition is incorporated herein by reference). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>Stockholder-Nominated Independent Director</B></FONT><FONT SIZE=2>" means any Stockholder-Nominated Independent Director (as defined in the form of Stockholders'
Agreement attached hereto as <U>Exhibit&nbsp;D</U>, which definition is incorporated herein by reference). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>Stockholders</B></FONT><FONT SIZE=2>" means Textile Investment and W&uuml;rzburg. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>Stockholders' Agreement</B></FONT><FONT SIZE=2>" As defined in Section&nbsp;2.01. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>Termination Date</B></FONT><FONT SIZE=2>" As defined in Section&nbsp;9.01. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

<HR NOSHADE>
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<A NAME="page_ma1971_1_3"> </A>
<BR>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>Textile Consent Letter Agreement</B></FONT><FONT SIZE=2>" means the consent letter agreement made as of May&nbsp;3, 2002 by and among the Corporation, Isaacs,
Textile Investment and W&uuml;rzburg. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>382 Affiliate</B></FONT><FONT SIZE=2>" As defined in Section&nbsp;3.07. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>Transaction Documents</B></FONT><FONT SIZE=2>" means collectively, the Amendment to Men's License Agreement, the Amendment to Women's License Agreement, the
Stockholders' Agreement, the Certificate of Designation and the Warrants. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>2002 Annual Meeting of Stockholders</B></FONT><FONT SIZE=2>" means the 2002 annual meeting of stockholders of the Corporation and any adjournments or
postponements thereof. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>Voting Agreement</B></FONT><FONT SIZE=2>" means the Voting Agreement by and among Textile Investment, W&uuml;rzburg, Robert J. Arnot, Jon Hechler,
Ronald S. Schmidt, Eugene C. Wielepski, and Thomas Ormandy dated as of the date hereof. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><B>Warrants</B></FONT><FONT SIZE=2>" As defined in Section&nbsp;2.01. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B><U>ARTICLE II</U><BR>
<U>TRANSACTION DOCUMENTS</U>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
2.01</FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;<U>Execution and Delivery of Transaction Documents</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;Within fifteen
(15)&nbsp;days after the satisfaction of all the conditions set forth in Sections 2.02 and 2.03 hereof, the Corporation, Isaacs and each of the Girbaud Entities shall execute and deliver, or to
cause to be executed and delivered and, if necessary for the effectiveness thereof, to be filed with the appropriate governmental authorities, the following documents: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;Amendment
No.&nbsp;4 to Trademark License and Technical Assistance Agreement in the form of <U>Exhibit&nbsp;B</U> attached hereto (the
"</FONT><FONT SIZE=2><B>Amendment to Men's License Agreement</B></FONT><FONT SIZE=2>"); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;Amendment
No.&nbsp;6 to Trademark License and Technical Assistance Agreement for Women's Collections in the form of <U>Exhibit&nbsp;C</U>
attached hereto (the "</FONT><FONT SIZE=2><B>Amendment to Women's License Agreement</B></FONT><FONT SIZE=2>"); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;I.C.
Isaacs&nbsp;&amp; Company,&nbsp;Inc. Stockholders' Agreement in the form of <U>Exhibit&nbsp;D</U> attached hereto (the
"</FONT><FONT SIZE=2><B>Stockholders' Agreement</B></FONT><FONT SIZE=2>"); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;Second
Certificate of Amendment to Certificate of Designation, Number, Voting Powers, Preferences and Rights of the Series of the Preferred Stock of I.C. Isaacs&nbsp;&amp;
Company,&nbsp;Inc. Designated as Series&nbsp;A Convertible Preferred Stock in the form of <U>Exhibit&nbsp;E</U> attached hereto (the "</FONT><FONT SIZE=2><B>Certificate of
Designation</B></FONT><FONT SIZE=2>"); and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;I.C.
Isaacs&nbsp;&amp; Company,&nbsp;Inc. Common Stock Purchase Warrant No.&nbsp;1 for 300,000 shares of common stock, par value $0.0001 per share, of the Corporation
and I.C. Isaacs&nbsp;&amp; Company,&nbsp;Inc. Common Stock Purchase Warrant No.&nbsp;2 for 200,000 shares of common stock, par value $0.0001 per share, of the Corporation (the
"</FONT><FONT SIZE=2><B>Common Stock</B></FONT><FONT SIZE=2>") in the forms of <U>Exhibit&nbsp;F-1</U> and
<U>Exhibit&nbsp;F-2</U> attached hereto (collectively, the "</FONT><FONT SIZE=2><B>Warrants</B></FONT><FONT SIZE=2>"). </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
2.02.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;<U>Conditions Precedent to Obligation of the Corporation and Isaacs to Execute the Transaction
Documents</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;The obligation of the Corporation and Isaacs to execute and deliver the Transaction Documents, or to cause the Transaction Documents to
be executed and delivered, and, if necessary for the effectiveness thereof, to be filed with the appropriate governmental authorities, shall be subject to the satisfaction of each of the following
conditions: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;the
transactions contemplated by that certain Asset Purchase Agreement dated May&nbsp;6, 2002 by and between Ambra&nbsp;Inc.
("</FONT><FONT SIZE=2><B>Ambra</B></FONT><FONT SIZE=2>"), Hugo Boss AG, Textile Investment and Frontline Clothing Limited (the "</FONT><FONT SIZE=2><B>Ambra/Textile Purchase
Agreement</B></FONT><FONT SIZE=2>") have been consummated and any and </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

<HR NOSHADE>
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<UL>

<P><FONT SIZE=2>
all documents, instruments and agreements contemplated by the Ambra/Textile Purchase Agreement have been executed and delivered to Ambra, the Girbaud Entities or such other Person as shall be
specified in or required by the terms of the Ambra/Textile Purchase Agreement, and the Corporation shall have received a fully executed copy of the Ambra/Textile Purchase Agreement and any such
documents, instruments and agreements contemplated thereby or relating thereto; </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;Congress
Financial shall have consented in writing to the transactions contemplated by the Ambra/Textile Purchase Agreement and the Corporation shall have received a
complete copy of such written consent; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;Textile
Investment shall have delivered to Isaacs the Original Note, which shall have been indorsed to Textile Investment by Ambra and marked "cancelled," in exchange
for the Replacement Note; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;each
of Textile Investment and W&uuml;rzburg shall have fulfilled their obligations under the Textile Consent Letter Agreement (provided that Textile
Investment and W&uuml;rzburg shall have until May&nbsp;13, 2002 to satisfy the obligations required under the terms of the Textile Consent Letter Agreement to have been satisfied on or
before May&nbsp;10, 2002); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;the
Corporation shall have received, </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;all
consents or approvals of Congress Financial with respect to the Transaction Documents which are required under any of the Congress Financial Credit Documents; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;an
opinion letter or opinion letters from legal counsel to each of the Girbaud Entities, in form and substance satisfactory to the Corporation and Isaacs, which
include, without limitation, opinions to the effect that (A)&nbsp;each Girbaud Entity has the power and authority to enter into each of the Transaction Documents to which it is a party,
(B)&nbsp;the Transaction Documents to which each Girbaud Entity is a party are the legal and binding obligations of such Girbaud Entity, enforceable against such Girbaud Entity in accordance with
the terms thereof, including without limitation the provisions of the Transaction Documents relating to choice of law, jurisdiction and arbitration, and (C)&nbsp;an arbitral award or judgment
obtained against any of the Girbaud Entities would be enforced against such Girbaud Entity in the courts of the jurisdiction of its formation; and </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;the
stockholders of the Corporation shall have approved the Transaction Documents by the vote of a majority of the shares present in person or by proxy and entitled to
vote at the 2002 Annual Meeting of Stockholders. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
2.03.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;<U>Conditions Precedent to Obligation of the Girbaud Entities to Execute the Transaction
Documents</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;The obligation of the Girbaud Entities to execute and deliver the Transaction Documents, or to cause the Transaction Documents to be
executed and delivered, shall be subject to the satisfaction of each of the following conditions: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;the
stockholders of the Corporation shall have approved the Transaction Documents by the vote of a majority of the shares present in person or by proxy and entitled to
vote at the 2002 Annual Meeting of Stockholders; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;the
Girbaud Entities shall have received, </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;an
opinion letter or opinion letters from legal counsel to each of the Corporation and Isaacs, in form and substance satisfactory to the Girbaud Entities, which include,
without limitation, opinions to the effect that (A)&nbsp;each of the Corporation and Isaacs has the power and authority to enter into each of the Transaction Documents to which it is a party,
(B)&nbsp;the Transaction Documents to which each of the Corporation and Isaacs is a party are the legal </FONT></P>

</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

<HR NOSHADE>
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<UL>
<UL>

<P><FONT SIZE=2>
and binding obligations of the Corporation and Isaacs, respectively, enforceable against the Corporation and Isaacs, respectively, in accordance with the terms thereof, including without limitation
the provisions of the Transaction Documents relating to choice of law, jurisdiction and arbitration, and (C)&nbsp;an arbitral award or judgment obtained against either the Corporation or Isaacs
would be enforceable against the Corporation or Isaacs, respectively. </FONT></P>

</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2><B><U>ARTICLE III<BR>
ADDITIONAL COVENANTS</U>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
3.01.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;<U>Directors</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;</FONT> <FONT SIZE=2><I><U>General</U></I></FONT><FONT SIZE=2>. As of the date hereof, the Board of Directors of the
Corporation has nine (9)&nbsp;seats, comprised as follows: </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="93%"><FONT SIZE=2><B><U>Name</U></B></FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="93%"><BR><FONT SIZE=2><B><U>Class I</U></B></FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="93%"><FONT SIZE=2>Robert J. Arnot</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="93%"><FONT SIZE=2>Eugene C. Wielepski</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="93%"><FONT SIZE=2>Vacancy</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="93%"><BR><FONT SIZE=2><B><U>Class II</U></B></FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="93%"><FONT SIZE=2>Danny Gladstone</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="93%"><FONT SIZE=2>Jon Hechler</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="93%"><FONT SIZE=2>Thomas Ormandy</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="93%"><BR><FONT SIZE=2><B><U>Class III</U></B></FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="93%"><FONT SIZE=2>Neal J. Fox</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="93%"><FONT SIZE=2>Ronald S. Schmidt</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="93%"><FONT SIZE=2>Vacancy</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2>The
Stockholders' Agreement provides that at all times during the term of such agreement, the Corporation and the Stockholders shall use their best efforts to cause the composition of the Board of
Directors to reflect the following proportionate representation of Stockholder Directors, Company Directors, and Independent Directors: </FONT></P>

<UL>

<P><FONT SIZE=2>Three
(3) Stockholder Directors<BR>
Two (2) Company Directors<BR>
Four (4) Independent Directors </FONT></P>

</UL>

<P><FONT SIZE=2>The
Stockholders' Agreement further provides that two (2)&nbsp;of the Independent Directors shall be Stockholder-Nominated Independent Directors and two (2)&nbsp;of the Independent Directors shall
be Company-Nominated Independent Directors. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>5</FONT></P>

<HR NOSHADE>
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<A NAME="page_ma1971_1_6"> </A>

<P><FONT SIZE=2>The
Corporation and the Stockholders anticipate that immediately following the 2002 Annual Meeting of Stockholders, the Board of Directors shall have nine (9)&nbsp;members, comprised as follows: </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="49%" ALIGN="LEFT"><FONT SIZE=1><B>Name<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="49%" ALIGN="CENTER"><FONT SIZE=1><B>Category</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2><B><U>Class I</U></B></FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2>Robert J. Arnot</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2>Company Director</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2>Staffan Ahrenberg</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2>Stockholder Director</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2>To Be Designated by the Stockholders</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2>Stockholder Director or Stockholder-Nominated Independent Director</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><BR><FONT SIZE=2><B><U>Class II</U></B></FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2>Danny Gladstone</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2>Company Director</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2>John Hechler</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2>Company-Nominated Independent Director</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2>To Be Designated by the Stockholders</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2>Stockholder Director or Stockholder-Nominated Independent Director</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><BR><FONT SIZE=2><B><U>Class III</U></B></FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2>Neal J. Fox</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2>Company-Nominated Independent Director</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2>Olivier Bachellerie</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2>Stockholder Director</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2>To Be Designated by the Stockholders</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2>Stockholder Director or Stockholder-Nominated Independent Director</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2>To
cause the membership of the Board of Directors to be as described above, the Corporation, its Board of Directors and the Stockholders shall proceed as follows: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I><U>Incumbent Directors</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;Messrs.&nbsp;Gladstone and Hechler are presently
Directors of the Corporation, and will be named to the slate of nominees to be proposed for election at the 2002 Annual Meeting of Stockholders to continue as Class&nbsp;II Directors.
Mr.&nbsp;Ormandy will not be named to the slate of nominees to be proposed for election to Class&nbsp;II of the Board of Directors at the 2002 Annual Meeting of Stockholders, and his term will
expire at the 2002 Annual Meeting of Stockholders. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I><U>Other Directors Continuing On</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;Messrs.&nbsp;Arnot and Fox are presently
Class&nbsp;I and Class&nbsp;III Directors of the Corporation, respectively, and will continue as Class&nbsp;I and Class&nbsp;III Directors, respectively. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I><U>Appointment of Initial Girbaud Directors</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;Within seven (7)&nbsp;days
following satisfaction of the conditions set forth in Sections 2.02(a) and 2.02(c) hereof, the Board of Directors of the Corporation shall appoint Staffan Ahrenberg to fill an existing vacancy in
Class&nbsp;I of the Board of Directors of the Corporation and Olivier Bachellerie to fill an existing vacancy in Class&nbsp;III of the Board of Directors of
the Corporation; provided that Messrs.&nbsp;Ahrenberg and Bachellerie shall have provided the Corporation with such information as the Corporation shall reasonably request, including a completed and
signed D&nbsp;&amp; O Questionnaire for each of them, before the expiration of such seven (7)&nbsp;day period. Upon their appointment, Messrs.&nbsp;Ahrenberg and Bachellerie shall be deemed
Stockholder Directors. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I><U>Appointment of Additional Girbaud Directors</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;Messrs.&nbsp;Eugene C. Wielepski
and Ronald S. Schmidt have notified the Board of Directors of their respective resignations, effective as of the 2002 Annual Meeting of Stockholders, and the Board of Directors has accepted such
resignations. The Corporation shall (i)&nbsp;propose two (2)&nbsp;Satisfactory Nominees to be elected at the 2002 Annual Meeting of Stockholders to fill the vacancies in Class&nbsp;I and
Class&nbsp;III of the Board of Directors of the Corporation created by resignations of Eugene C. Wielepski and Ronald S. Schmidt, respectively, and (ii)&nbsp;name an additional third Satisfactory
Nominee to the slate of nominees to be elected to Class&nbsp;II of the Board of Directors at the 2002 Annual Meeting of Stockholders; </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>6</FONT></P>

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<UL>
<BR>

<P><FONT SIZE=2>
provided in each case that W&uuml;rzburg and Textile Investment shall have identified such Satisfactory Nominees and provided to the Corporation such information regarding such Satisfactory
Nominees as the Corporation shall reasonably request, including a completed and signed D&nbsp;&amp; O Questionnaire for each such Satisfactory Nominee, at least ten (10)&nbsp;days prior to the filing
of the Proxy Statement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I><U>Best Efforts</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;The Corporation and the Stockholders shall each use its or their
best efforts to cause each of the Satisfactory Nominees named to the slate of nominees pursuant to subsection (e)&nbsp;above to be elected to the Board of Directors of the Corporation. For purposes
of this Agreement, (i)&nbsp;the Corporation shall be considered to have used its "best efforts," as required by this subsection (f), if it (A)&nbsp;causes two (2)&nbsp;Satisfactory Nominees to
be proposed to be elected at the 2002 Annual Meeting of Stockholders to fill vacancies in Class&nbsp;I and Class&nbsp;III of the Board of Directors created by the resignations of Eugene C.
Wielepski and Ronald S. Schmidt, and one (1)&nbsp;Satisfactory Nominee to be named to the slate of nominees to be elected to Class&nbsp;II of the Board of Directors at the 2002 Annual Meeting of
Stockholders, (B)&nbsp;recommends the election of all such Satisfactory Nominees, and (C)&nbsp;uses all reasonable efforts to cause the election of such Satisfactory Nominees, including the
solicitation of proxies in favor of the election of such persons, and (ii)&nbsp;the Stockholders shall be considered to have used their "best efforts," as required by this subsection (f), if at the
2002 Annual Meeting of Stockholders W&uuml;rzburg and Textile Investment vote the Stock and any shares of Common Stock with respect to which they have been granted a proxy in accordance with
the terms of the Voting Agreement. Notwithstanding anything to the contrary contained in this Agreement, of the three (3)&nbsp;Satisfactory Nominees named to the slate of nominees or proposed to the
stockholders of the Corporation pursuant to Section&nbsp;3.01(e) above, two (2)&nbsp;shall be Stockholder-Nominated Independent Directors and one (1)&nbsp;shall be a Stockholder Director. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I><U>Proxy Statement; Annual Meeting</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;The Corporation shall cause the Proxy
Statement to be filed with the U.S. Securities and Exchange Commission and mailed to each stockholder of the Corporation entitled to vote at the 2002 Annual Meeting of Stockholders or otherwise
entitled to receive the Proxy Statement in accordance with all applicable laws, which Proxy Statement shall reflect the steps or proposals described in this Section&nbsp;3.01. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
3.02.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;<U>Transactions Approval</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;The Corporation, Isaacs, and each of the
Girbaud Entities shall use their respective best efforts to cause the transactions contemplated by this Agreement and the Transaction Documents to be approved by all necessary Persons, including,
without limitation, the board of directors and/or the stockholders of the Corporation. For purposes of this Section&nbsp;3.02, (i)&nbsp;the Corporation shall be considered to have used its "best
efforts," as required by this Section&nbsp;3.02, if it submits a proposal to the stockholders of the Corporation regarding the Transaction Documents and the transactions contemplated thereby and
recommends that the stockholders approve such proposal, and (ii)&nbsp;each of the Girbaud Entities shall be considered to have used its "best efforts," as required by this Section&nbsp;3.02, if at
the 2002 Annual Meeting of Stockholders W&uuml;rzburg and Textile Investment vote the Stock and any shares of Common Stock with respect to which they have been granted a proxy in accordance
with the terms of the Voting Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
3.03.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;<U>Payment of Installment of Consulting Fee</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;On June&nbsp;30, 2002,
Isaacs shall pay to W&uuml;rzburg the first quarterly installment payment of the annual consulting fee under the Girbaud License Agreements for the year 2002 in the amount of
Sixty-two Thousand Five Hundred and 00/100 Dollars ($62,500.00) (the "</FONT><FONT SIZE=2><B>First Consulting Fee Payment</B></FONT><FONT SIZE=2>"). Isaacs shall pay the First Consulting
Fee Payment to W&uuml;rzburg regardless of whether or not the approval of the stockholders of the Corporation, as described in Section&nbsp;2.02(f), has been obtained. The First Consulting
Fee Payment shall be credited to Isaacs toward the annual consulting fee to be paid by Isaacs under the Girbaud License Agreements. If the transactions contemplated by the Transaction Documents are
not consummated, then W&uuml;rzburg shall refund the First Consulting Fee Payment to Isaacs immediately upon Isaacs demand therefor. If </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>7</FONT></P>

<HR NOSHADE>
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<A NAME="page_ma1971_1_8"> </A>
<BR>

<P><FONT SIZE=2>
upon demand by Isaacs of a refund of the First Consulting Fee Payment W&uuml;rzburg fails to refund the First Consulting Fee Payment, then Latitude Licensing shall be obligated to refund to
Isaacs the First Consulting Fee Payment, or Isaacs may, at its option, set off the First Consulting Fee Payment against any fees owed by Isaacs under the Girbaud License Agreements. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
3.04.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;<U>Exchange of Original Note</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;On or before May&nbsp;17, 2002, Textile
Investment shall return to Isaacs the original executed Original Note indorsed by Ambra to Textile Investment and marked "cancelled" in exchange for the Replacement Note. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
3.05.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;<U>Reporting</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;The Girbaud Entities shall cooperate with the Corporation
with respect to reporting under the Securities Act of 1933, as amended (the "</FONT><FONT SIZE=2><B>Securities Act</B></FONT><FONT SIZE=2>"), the Securities Exchange Act of 1934, as amended (the
"</FONT><FONT SIZE=2><B>Exchange Act</B></FONT><FONT SIZE=2>"), the rules promulgated under the Securities Act or the Exchange Act, any state securities laws, rules or regulations, and to any other
U.S. governmental authorities as may be required by law. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
3.06.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;<U>Restrictions on Transfer.</U></I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;From and after the date hereof and to and
including November&nbsp;14, 2004, none of (i)&nbsp;Textile Investment, (ii)&nbsp;W&uuml;rzburg, or (iii)&nbsp;any other Person(s) the ownership of securities by which would be
attributable to Textile Investment or W&uuml;rzburg for purposes of applying Section&nbsp;382 of the Code (a "</FONT><FONT SIZE=2><B>382 Affiliate</B></FONT><FONT SIZE=2>"), shall acquire
or dispose of, directly or indirectly, any interest in the Corporation if such acquisition and/or disposition, together with all other acquisitions and/or dispositions of interests in the Corporation
prior to or subsequent to the date hereof involving any one or more of (i)&nbsp;Textile Investment, (ii)&nbsp;W&uuml;rzburg, (iii)&nbsp;any 382 Affiliate, and (iv)&nbsp;any other
party (to
the extent that the relevant acquisition or disposition involving such other party is actually known to any of the Girbaud Entities or is reported pursuant to the Exchange Act), would result in an
"ownership change" within the meaning of Section&nbsp;382 of the Code. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B><U>ARTICLE IV</U><BR>
<U>REPRESENTATIONS AND WARRANTIES OF THE CORPORATION</U>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Corporation hereby makes the following representations and warranties to each of the Girbaud Entities on and as of the Effective Date: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
4.01.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;<U>Existence</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;The Corporation is a corporation duly incorporated and
validly existing under the laws of the State of Delaware and has all requisite corporate power to execute, deliver and perform this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
4.02.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;<U>Authorization</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;The execution, delivery and performance of this
Agreement have been duly authorized by all requisite corporate action on the part of the Corporation and will not (a)&nbsp;violate any applicable law or the Corporation's organizational documents or
(b)&nbsp;breach the provisions of any contract binding on the Corporation. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B><U>ARTICLE V</U><BR>
<U>REPRESENTATIONS AND WARRANTIES OF ISAACS</U>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Isaacs hereby makes the following representations and warranties to each of the Girbaud Entities on and as of the Effective Date: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
5.01.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;<U>Existence</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;Isaacs is a limited partnership duly organized and validly
existing under the laws of the State of Delaware and has all requisite power to execute, deliver and perform this Agreement. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
5.02.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;<U>Authorization</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;The execution, delivery and performance of this
Agreement have been duly authorized by all requisite action on the part of Isaacs and will not (a)&nbsp;violate any applicable law or Isaacs' organizational documents or (b)&nbsp;breach the
provisions of any contract binding on Isaacs. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>8</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=8,SEQ=42,EFW="2083326",CP="I.C. ISAACS & COMPANY, INC.",DN="1",CHK=765086,FOLIO='8',FILE='DISK032:[02WDC1.02WDC1971]MA1971A.;12',USER='KSEAMON',CD='28-JUN-2002;14:30' -->
<A NAME="page_ma1971_1_9"> </A>
<BR>
<P ALIGN="CENTER"><FONT SIZE=2><B><U>ARTICLE VI</U><BR>
<U>REPRESENTATIONS AND WARRANTIES OF TEXTILE INVESTMENT</U>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Textile Investment hereby makes the following representations and warranties to (and, in the case of Section&nbsp;6.04, agrees with) the Corporation and Isaacs
on and as of the Effective Date: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
6.01.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;<U>Existence</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;Textile Investment is a corporation duly organized and
validly existing under the laws of the country of Luxembourg and has all requisite power to execute, deliver and perform this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
6.02.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;<U>Authorization</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;The execution, delivery and performance of this
Agreement have been duly authorized by all requisite action on the part of Textile Investment and will not (a)&nbsp;violate any applicable law or Textile Investment's organizational documents or
(b)&nbsp;breach the provisions of any contract binding on Textile Investment. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
6.03.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;<U>Investor Representations</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;Textile Investment is wholly owned by
W&uuml;rzburg. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
6.04.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;<U>Original Note</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;Textile Investment acknowledges that Isaacs has not
defaulted on any of its payment obligations under the Original Note or the Replacement Note. Textile Investment agrees that on the date hereof the outstanding unpaid principal balance of the Original
Note is Six Million Five Hundred Fifty-seven Thousand Nine Hundred Eight and 53/100 Dollars ($6,557,908.53) and that all of the accrued interest on the Original Note has been paid in full through
March&nbsp;31, 2002. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
6.05.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;<U>Ambra/Textile Purchase Agreement</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;The Ambra/Textile Purchase
Agreement has been duly executed and delivered by all parties thereto, and the transactions contemplated by the Ambra/Textile Purchase Agreement have been consummated. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B><U>ARTICLE VII</U><BR>
<U>REPRESENTATIONS AND WARRANTIES OF LATITUDE LICENSING</U>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Latitude Licensing hereby makes the following representations and warranties to the Corporation and Isaacs on and as of the Effective Date: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
7.01.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;<U>Existence</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;Latitude Licensing is a corporation duly organized and
validly existing under the laws of the State of Delaware and has all requisite corporate power to execute, deliver and perform this Agreement. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
7.02.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;<U>Authorization</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;The execution, delivery and performance of this
Agreement have been duly authorized by all requisite corporate action on the part of Latitude Licensing and will not (a)&nbsp;violate any applicable law or Latitude Licensing's organizational
documents or (b)&nbsp;breach the provisions of any contract binding on Latitude Licensing. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B><U>ARTICLE VIII</U><BR>
<U>REPRESENTATIONS AND WARRANTIES OF W&Uuml;RZBURG</U>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W&uuml;rzburg hereby makes the following representations and warranties to the Corporation and Isaacs on and as of the Effective Date: </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
8.01.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;<U>Existence</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;W&uuml;rzburg is a corporation duly organized
and validly existing under the laws of the country of Luxembourg and has all requisite corporate power to execute, deliver and perform this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
8.02.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;<U>Authorization</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;The execution, delivery and performance of this
Agreement have been duly authorized by all requisite corporate action on the part of W&uuml;rzburg and will not (a)&nbsp;violate any applicable law or W&uuml;rzburg's
organizational documents or (b)&nbsp;breach the provisions of any contract binding on W&uuml;rzburg. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>9</FONT></P>

<HR NOSHADE>
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<A NAME="page_ma1971_1_10"> </A>
<BR>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
8.03.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;<U>Investor Representations</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;The ultimate beneficial owners of
W&uuml;rzburg are Francois Girbaud, who beneficially owns a fifty percent (50%) ownership interest, and Marit&eacute; Bachellerie, who beneficially owns a fifty percent (50%)
ownership interest. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B><U>ARTICLE IX<BR>
TERMINATION; EVENTS OF DEFAULT AND REMEDIES</U>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
9.01.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;<U>Termination</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;This Agreement may be terminated and the
transactions contemplated hereby may be abandoned: </FONT></P>

<UL>
<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;at
any time by the mutual agreement of the Corporation, Isaacs and the Girbaud Entities; or </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;by
either the Corporation or Isaacs upon the occurrence of an Event of Default by any of the Girbaud Entities (so long as neither the Corporation nor Isaacs is then in
material breach of any of its covenants, agreements or other obligations contained in this Agreement); or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;by
any of the Girbaud Entities upon the occurrence of an Event of Default by either the Corporation or Isaacs (so long as no Girbaud Entity is then in material breach
of any of its covenants, agreements or other obligations contained in this Agreement); or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;by
either the Corporation or the Girbaud Entities upon written notice to the other given not earlier than ten (10)&nbsp;days following the 2002 Annual Meeting of
Stockholders (the "</FONT><FONT SIZE=2><B>Termination Date</B></FONT><FONT SIZE=2>"), if any of the conditions to its obligations set forth in Sections 2.02 or 2.03, as applicable, are not satisfied
on or before the Termination Date for any reason other than a material breach or default by the terminating party of its respective covenants, agreements or other obligations under this Agreement. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;This
Agreement shall terminate upon the execution and delivery of each of the Transaction Documents as contemplated hereby. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
9.02</FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;<U>Effect of Termination</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;If this Agreement is terminated pursuant to
Section&nbsp;9.01, all obligations of the parties under this Agreement will terminate except for the obligations set forth in Sections 3.04, 3.05 and 3.06 and Article&nbsp;X hereof. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
9.03</FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;<U>Events of Default</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;The occurrence of any of the following events shall
be deemed an "Event of Default" under this Agreement: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;any
party hereto shall materially breach any of its covenants, agreements or other obligations (other than representations and warranties) under this Agreement, and such
breach remains uncured for a period of ten (10)&nbsp;days after such breaching party's receipt of written notice of any such breach; or </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;any
representation or warranty in this Agreement made by any party hereto shall prove to be false or is breached in any material respect. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
9.04</FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;<U>Remedies upon Event of Default</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;Upon the occurrence of an Event of
Default the parties shall have the following rights and remedies: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;if
an Event of Default by either the Corporation or Isaacs has occurred, the Girbaud Entities shall have the right to </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;terminate
this Agreement pursuant to Section&nbsp;9.01(a)(iii); and/or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;file
suit against the Corporation or Isaacs for damages; and/or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;seek
specific performance of this Agreement; and </FONT></P>

</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>10</FONT></P>

<HR NOSHADE>
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<A NAME="page_ma1971_1_11"> </A>
<UL>
<UL>
<BR>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;if
an Event of Default by any of the Girbaud Entities has occurred, the Corporation or Isaacs shall have the right to </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;terminate
this Agreement pursuant to Section&nbsp;9.01(a)(ii); and/or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;file
suit against any of the Girbaud Entities for damages; and/or </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;seek
specific performance of this Agreement. </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2><B><U>ARTICLE X</U><BR>
<U>MISCELLANEOUS</U>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
10.01.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;<U>Congress Financial Consent</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;The parties hereto agree that if the
consent of Congress Financial to the transactions contemplated by the Transaction Documents is not obtained from Congress Financial, such failure to obtain such consent shall not be an Event of
Default by any party to this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
10.02.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;<U>Stockholders' Consent</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;The parties hereto agree that if the
stockholders of the Corporation do not elect one or more of the Satisfactory Nominees and/or approve any of the matters to be submitted to such stockholders hereunder, such failure to elect such
Satisfactory Nominee(s) or obtain such approval shall not be an Event of Default by any party to this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
10.03.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;<U>Notices</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;Any notice required or permitted by or in connection with
this Agreement shall be in writing and shall be made by telecopy, or by hand delivery, or by overnight delivery service, or by certified mail, return receipt requested, postage prepaid, addressed to
the parties at the appropriate address set forth below or to such other address as may be hereafter specified by written notice by the parties to each other. Notice shall be considered given as of the
earlier of the date of actual receipt, or the date of the telecopy or hand delivery, or one (1)&nbsp;business day after delivery to an overnight delivery service (marked for next business day
delivery), or three (3)&nbsp;calendar days after the date of mailing, independent of the date of actual delivery or whether delivery is ever in fact made, as the case may be, provided the giver of
notice can establish that notice was given as provided herein. Notwithstanding the aforesaid procedures, any notice or demand upon any party, in fact received by such party, shall be sufficient notice
or demand. Each undersigned Girbaud Entity (other than Latitude Licensing) hereby appoints Latitude Licensing as its agent for purposes of receiving notices under this Agreement, so that notices given
to Latitude Licensing shall be fully effective notice to Latitude Licensing and to each such other undersigned Girbaud Entity (other than Latitude Licensing). </FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="80%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD COLSPAN=2><FONT SIZE=2>If to the Corporation<BR>
or Isaacs:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="55%"><FONT SIZE=2>I.C. Isaacs &amp; Company, Inc.<BR>
350 Fifth Avenue, Suite 1029<BR>
New York, New York 10118<BR>
Attn: Mr. Robert J. Arnot, President and CEO<BR>
Telecopy No.: 212-695-7579</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="3%">&nbsp;</TD>
<TD WIDTH="36%"><FONT SIZE=2><BR>
with copy to:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="55%"><FONT SIZE=2><BR>
I.C. Isaacs &amp; Company L.P.<BR>
3840 Bank Street<BR>
Baltimore, Maryland 21224<BR>
Attn: Mr. Eugene C. Wielepski<BR>
Telecopy No.: 410-563-1512</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2><BR><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="55%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
</TABLE></DIV>
<!-- insert table folio -->
<P ALIGN="CENTER"><FONT SIZE=2>11</FONT></P>

<HR NOSHADE>
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<A NAME="page_ma1971_1_12"> </A>
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<DIV ALIGN="CENTER"><TABLE WIDTH="80%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="3%">&nbsp;</TD>
<TD WIDTH="36%"><FONT SIZE=2><BR>
and copy to:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="55%"><FONT SIZE=2><BR>
Piper Rudnick LLP<BR>
6225 Smith Avenue<BR>
Baltimore, Maryland 21209-3600<BR>
Attn: Robert J. Mathias, Esquire<BR>
Telecopy No.: 410-580-3001</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2><FONT SIZE=2><BR>
If to Textile Investment:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="55%"><FONT SIZE=2><BR>
Textile Investment International S.A.<BR>
41 avenue de la Gare<BR>
Luxembourg L-1611<BR>
Luxembourg<BR>
Attn: Ren&eacute; Faltz, Managing Director<BR>
Telecopy No.: 011 352 26 48 47 47</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2><FONT SIZE=2><BR>
with copy to:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="55%"><FONT SIZE=2><BR>
Hall Dickler Kent Goldstein &amp; Wood, LLP<BR>
909 Third Avenue<BR>
New York, New York 10022-4731<BR>
Attn: Steven D. Dreyer, Esquire<BR>
Telecopy No.: 212-935-3121</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2><FONT SIZE=2><BR>
If to Latitude Licensing:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="55%"><FONT SIZE=2><BR>
Latitude Licensing Corp.<BR>
22 Carpenter Plaza, Suite 217<BR>
Wilmington, Delaware 19810</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="3%">&nbsp;</TD>
<TD WIDTH="36%"><FONT SIZE=2><BR>
with copy to:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="55%"><FONT SIZE=2><BR>
Martin &amp; Associates LLC<BR>
325 E. 58<SUP>th</SUP> Street, Suite 1<BR>
New York, New York 10022<BR>
Attn: Francois Martin, Esquire<BR>
Telecopy No.: 212-754-3397</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2><FONT SIZE=2><BR>
If to W&uuml;rzburg:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="55%"><FONT SIZE=2><BR>
W&uuml;rzburg Holding S.A.<BR>
41 avenue de la Gare<BR>
Luxembourg L-1611<BR>
Luxembourg<BR>
Attn: Ren&eacute; Faltz<BR>
Telecopy No.: 0 11 352 26 48 47 47</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="3%">&nbsp;</TD>
<TD WIDTH="36%"><FONT SIZE=2><BR>
with copy to:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="55%"><FONT SIZE=2><BR>
Hall Dickler Kent Goldstein &amp; Wood, LLP<BR>
909 Third Avenue<BR>
New York, New York 10022-4731<BR>
Attn: Steven D. Dreyer, Esquire<BR>
Telecopy No.: 212-935-3121</FONT></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
10.04.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;<U>Amendments, Waivers and Consents; Successors and Assigns</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;Neither
this Agreement nor any of the terms hereof may be amended, changed, waived or discharged, nor shall any consent be given, unless such amendment, change, waiver, discharge or consent is in writing and
signed by the parties hereto. This Agreement shall inure to the benefit of and be binding upon each party hereto and each party's successors and assigns. This Agreement may not be assigned by any
party hereto without prior written consent of each of the other parties hereto. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
10.05.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;<U>Governing Law</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;The validity, construction, operation and effect of
any and all of the terms and provisions of this Agreement shall be determined and enforced in accordance with the laws of the State of New York without giving effect to principles of conflicts of law
thereunder. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>12</FONT></P>

<HR NOSHADE>
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<A NAME="page_ma1971_1_13"> </A>
<BR>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>SECTION 10.06.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><I><U>JURISDICTION;
VENUE</U>.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(a)&nbsp;&nbsp;Each party to this Agreement hereby irrevocably consents to the exclusive jurisdiction of the Supreme Court of the State of New York for the
County of New York and/or United States District Court for the Southern District of New York (collectively, the "New York Courts" and each a "New York Court") in connection with any and all claims
based upon or arising out of this Agreement or the matters or transactions contemplated herein, and irrevocably agrees that all claims in respect of any such matters or transactions may be heard in
either of such New York Courts.  </B></FONT></P>

<P><FONT SIZE=2><B> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;Each party to this Agreement hereby waives any objection to jurisdiction and venue of any such claim brought, or action instituted, hereunder in any New York Court and
further agrees not to assert (i)&nbsp;any defense based on the lack of jurisdiction or venue in any New York Court, or (ii)&nbsp;any defense of improper venue or inconvenient forum in any New York
Court.  </B></FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;Each party to this Agreement hereby waives any right of jurisdiction on account of the place of such party's residence, or domicile, or on account of such party's place
of incorporation, formation or organization.  </B></FONT></P>

<P><FONT SIZE=2><B> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;Each party to this Agreement hereby acknowledges and agrees that any forum other than a New York Court is an inconvenient forum and that a suit brought by any party
against any other party in any court other than a New York Court should be transferred to a New York Court.  </B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>SECTION 10.07.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><I><U>SERVICE OF
PROCESS</U></I></B></FONT><FONT SIZE=2><B>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(a)&nbsp;&nbsp;Textile Investment hereby irrevocably and unconditionally appoints Steven D. Dreyer, Esquire of Hall Dickler Kent Goldstein&nbsp;&amp; Wood, LLP,
currently located at 909 Third Avenue, New York, New York 10022-4731 (the "Process Agent") as its agent to receive on behalf of Textile Investment service of copies of the summons and
complaint and any other process which may be served in any action or proceeding within the scope of Section&nbsp;10.06 of this Agreement in any New York Court and agrees promptly to appoint a
successor Process Agent in the City of New York (which appointment such successor Process Agent shall accept in writing) prior to the termination for any reason of the appointment of the Process Agent
(or the termination of any successor Process Agent). In any such action or proceeding in any New York Court, such service may be made on Textile Investment by delivering a copy of such process to
Textile Investment in care of the Process Agent at the Process Agent's above address and by depositing a copy of such process in the mails (certified or registered, if available), or by overnight
courier, addressed to Textile Investment at its address for notices in this Agreement (such service to be effective upon receipt by the Process Agent, and the depositing of such service in the mails
(or delivery thereof to such overnight courier)). Textile Investment hereby irrevocably and unconditionally authorizes and directs the Process Agent to accept such service on Textile Investment's
behalf. As an alternative method of service, Textile Investment hereby irrevocably and unconditionally consents to the service of any and all process in any such action or proceeding in any New York
Court by mailing of copies of such process to Textile Investment by mail (certified or registered, if available), or by overnight courier, at its address for notices in this Agreement. Textile
Investment agrees that, to the fullest extent permitted by applicable law, a final judgment in any such action or proceeding in any New York Court shall be conclusive and may be enforced in any other
jurisdiction by suit on the judgment or in any other manner provided by law. Textile Investment represents and warrants to the other parties to this Agreement that the Process Agent has accepted its
appointment as process agent for Textile Investment as herein described, and Textile Investment covenants to give the other parties to this Agreement prompt written notice of (x)&nbsp;any change in
the name or address of the Process Agent (or any successor Process Agent) and (y)&nbsp;the name and address of any successor Process Agent.  </B></FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>13</FONT></P>

<HR NOSHADE>
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<A NAME="page_ma1971_1_14"> </A>
<UL>

<P><FONT SIZE=2><B> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;W&uuml;rzburg hereby irrevocably and unconditionally appoints the Process Agent as its agent to receive on behalf of W&uuml;rzburg service of copies
of the summons and complaint and any other process which may be served in any action or proceeding within the scope of Section&nbsp;10.06 of this Agreement in any New York Court and agrees promptly
to appoint a successor Process Agent in the City of New York (which appointment such successor Process Agent shall accept in writing) prior to the termination for any reason of the appointment of the
Process Agent (or the termination of any successor Process Agent). In any such action or proceeding in any New York Court, such service may be made on W&uuml;rzburg by delivering a copy of
such process to W&uuml;rzburg in care of the Process Agent at the Process Agent's address and by depositing a copy of such process in the mails (certified or registered, if available), or by
overnight courier, addressed to W&uuml;rzburg at its address for notices in this Agreement (such service to be effective upon receipt by the Process Agent, and the depositing of such service
in the mails (or delivery thereof to such overnight courier)). W&uuml;rzburg hereby irrevocably and unconditionally authorizes and directs the Process Agent to accept such service on
W&uuml;rzburg's behalf. As an alternative method of service, W&uuml;rzburg hereby irrevocably and unconditionally consents to the service of any and all process in any such action
or proceeding in any New York Court by mailing of copies of such process to W&uuml;rzburg by mail (certified or registered, if available), or by overnight courier, at its address for notices
in this Agreement. W&uuml;rzburg agrees that, to the fullest extent permitted by applicable law, a final judgment in any such action or proceeding in any New York Court shall be conclusive
and may be enforced in any other jurisdiction by suit on the judgment or in any
other manner provided by law. W&uuml;rzburg represents and warrants to the other parties to this Agreement that the Process Agent has accepted its appointment as process agent for
W&uuml;rzburg as herein described, and W&uuml;rzburg covenants to give the other parties to this Agreement prompt written notice of (x)&nbsp;any change in the name or address of
the Process Agent (or any successor Process Agent) and (y)&nbsp;the name and address of any successor Process Agent.  </B></FONT></P>

<P><FONT SIZE=2><B> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;Latitude hereby irrevocably and unconditionally appoints its registered agent, as specified in its charter, as amended from time to time (the "Latitude Registered
Agent"), as its agent to receive on behalf of Latitude service of copies of the summons and complaint and any other process which may be served in any action or proceeding within the scope of
Section&nbsp;10.06 of this Agreement in any New York Court. In any such action or proceeding in any New York Court, such service may be made on Latitude by delivering a copy of such process to
Latitude in care of the Latitude Registered Agent at the Latitude Registered Agent's address and by depositing a copy of such process in the mails (certified or registered, if available), or by
overnight courier, addressed to Latitude at its address for notices in this Agreement (such service to be effective upon receipt by the Latitude Registered Agent, and the depositing of such service in
the mails (or delivery thereof to such overnight courier)). Latitude hereby irrevocably and unconditionally authorizes and directs the Latitude Registered Agent to accept such service on Latitude's
behalf. As an alternative method of service, Latitude hereby irrevocably and unconditionally consents to the service of any and all process in any such action or proceeding in any New York Court by
mailing of copies of such process to Latitude by mail (certified or registered, if available), or by overnight courier, at its address for notices in this Agreement. Latitude agrees that, to the
fullest extent permitted by applicable law, a final judgment in any such action or proceeding in any New York Court shall be conclusive and may be enforced in any other jurisdiction by suit on the
judgment or in any other manner provided by law. Latitude represents and warrants to the other parties to this Agreement that the Latitude Registered Agent has accepted its appointment as registered
agent for Latitude as herein described.  </B></FONT></P>

<P><FONT SIZE=2><B> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;The Corporation hereby irrevocably and unconditionally appoints its registered agent, as specified in its charter, as amended from time to time (the "Corporation
Registered Agent"), as its agent to receive on behalf of the Corporation service of copies of the summons and complaint and any other process which may be served in any action or proceeding within the
scope of  </B></FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>14</FONT></P>

<HR NOSHADE>
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<A NAME="page_ma1971_1_15"> </A>
<UL>
<BR>

<P><FONT SIZE=2><B> Section&nbsp;10.06 of this Agreement in any New York Court. In any such action or proceeding in any such New York Court, such service may be made on the Corporation by delivering a copy of such
process to the Corporation in care of the Corporation Registered Agent at the Corporation Registered Agent's address and by depositing a copy of such process in the mails (certified or registered, if
available), or by overnight courier, addressed to the Corporation at its address for notices in this Agreement (such service to be effective upon receipt by the Corporation Registered Agent, and the
depositing of such service in the mails (or delivery thereof to such overnight courier)). The Corporation hereby irrevocably and unconditionally authorizes and directs the Corporation Registered Agent
to accept such service on the Corporation's behalf. As an alternative method of service, the Corporation hereby irrevocably and unconditionally consents to the service of any and all process in any
such action or proceeding in any New York Court by mailing of copies of such process to the Corporation by mail (certified or registered, if available), or by overnight courier, at its address for
notices in this Agreement. The Corporation agrees that, to the fullest extent permitted by applicable law, a final judgment in any such action or proceeding in any New York Court shall be conclusive
and may be enforced in any other jurisdiction by suit on the judgment or in any other manner provided by law. The Corporation represents and warrants to the other parties to this Agreement that the
Corporation
Registered Agent has accepted its appointment as registered agent for the Corporation as herein described.  </B></FONT></P>

<P><FONT SIZE=2><B> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;Isaacs hereby irrevocably and unconditionally appoints its registered agent, as specified in its limited partnership agreement, as amended from time to time (the
"Isaacs
Registered Agent"), as its agent to receive on behalf of Isaacs service of copies of the summons and complaint and any other process which may be served in any action or proceeding within the scope of
Section&nbsp;10.06 of this Agreement in any New York Court. In any such action or proceeding in any New York Court, such service may be made on Isaacs by delivering a copy of such process to Isaacs
in care of the Isaacs Registered Agent at the Isaacs Registered Agent's address and by depositing a copy of such process in the mails (certified or registered, if available), or by overnight courier,
addressed to Isaacs at its address for notices in this Agreement (such service to be effective upon receipt by the Isaacs Registered Agent, and the depositing of such service in the mails (or delivery
thereof to such overnight courier)). Isaacs hereby irrevocably and unconditionally authorizes and directs the Isaacs Registered Agent to accept such service on Isaacs' behalf. As an alternative method
of service, Isaacs hereby irrevocably and unconditionally consents to the service of any and all process in any such action or proceeding in any New York Court by mailing of copies of such process to
Isaacs by mail (certified or registered, if available), or by overnight courier, at its address for notices in this Agreement. Isaacs agrees that, to the fullest extent permitted by applicable law, a
final judgment in any such action or proceeding in any New York Court shall be conclusive and may be enforced in any other jurisdiction by suit on the judgment or in any other manner provided by law.
Isaacs represents and warrants to the other parties to this Agreement that the Isaacs Registered Agent has accepted its appointment as registered agent for Isaacs as herein described.  </B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>SECTION 10.08</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><I><U>WAIVER OF
IMMUNITY</U></I></B></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>Each party to this Agreement represents, warrants, and agrees that to the extent such party may have or hereafter
acquire any right of sovereign or other immunity from suit, court jurisdiction, attachment in aid of execution of judgment, set-off, execution or other legal process, such party hereby
irrevocably and unconditionally waives, to the fullest extent permitted by law, such right of immunity with respect to its obligations hereunder and with respect to legal proceedings to enforce the
same and to enforce any judgment rendered in such proceedings.</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
10.09.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;<U>Counterparts; Facsimile</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;This Agreement may be executed in any
number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument. It shall not be necessary in making proof of
this Agreement to produce or account for more than one such counterpart. This Agreement may be executed and </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>15</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=15,SEQ=49,EFW="2083326",CP="I.C. ISAACS & COMPANY, INC.",DN="1",CHK=307807,FOLIO='15',FILE='DISK032:[02WDC1.02WDC1971]MA1971A.;12',USER='KSEAMON',CD='28-JUN-2002;14:30' -->
<A NAME="page_ma1971_1_16"> </A>
<BR>

<P><FONT SIZE=2>
transmitted by facsimile and with confirmation of transmission shall have the same binding effect as though such executed Agreement was delivered as an original. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
10.10.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;<U>Third Party Beneficiaries</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;There shall be no third-party
beneficiaries of this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION
10.11.</FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;<U>Entire Agreement</U></I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;The parties hereto agree that this Agreement,
together with the Textile Consent Letter Agreement, is a complete and exclusive expression of all of the terms hereof. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B><I>[Remainder of page intentionally left blank]</I></B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>16</FONT></P>

<HR NOSHADE>
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<A NAME="page_ma1971_1_17"> </A>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, and intending to be legally bound hereby, each of the parties hereto executes this Agreement under seal as of the date first above written. </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="51%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=4><FONT SIZE=2>I.C. ISAACS &amp; COMPANY L.P.,<BR>
a Delaware limited partnership</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="51%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
I.C. Isaacs &amp; Company, Inc., a Delaware<BR>
corporation, its general partner</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="51%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2><BR>
/s/ Robert J. Arnot</FONT><HR NOSHADE></TD>
<TD WIDTH="16%"><FONT SIZE=2><BR>
(SEAL)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="51%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Name:</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2>Robert J. Arnot</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="51%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Title:</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2>Chairman and Chief Executive Officer</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="51%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD COLSPAN=4><FONT SIZE=2><BR>
I.C. ISAACS &amp; COMPANY, INC.,<BR>
a Delaware corporation</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="51%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2><BR>
/s/ Robert J. Arnot</FONT><HR NOSHADE></TD>
<TD WIDTH="16%"><FONT SIZE=2><BR>
(SEAL)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="51%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Name:</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2>Robert J. Arnot</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="51%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Title:</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2>Chairman and Chief Executive Officer</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="51%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD COLSPAN=4><FONT SIZE=2><BR>
TEXTILE INVESTMENT<BR>
INTERNATIONAL S.A.,<BR>
a Luxembourg corporation</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="51%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2><BR>
/s/ Ren&eacute; Faltz</FONT><HR NOSHADE></TD>
<TD WIDTH="16%"><FONT SIZE=2><BR>
(SEAL)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="51%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Name:</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2>Ren&eacute; Faltz</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="51%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Title:</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2>Managing Director</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="51%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2><BR>
/s/ Tom Felgen</FONT><HR NOSHADE></TD>
<TD WIDTH="16%"><FONT SIZE=2><BR>
(SEAL)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="51%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Name:</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2>Tom Felgen</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="51%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Title:</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2>Managing Director</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="51%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD COLSPAN=4><FONT SIZE=2><BR>
LATITUDE LICENSING CORP.,<BR>
a Delaware corporation</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="51%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2><BR>
/s/ Antoine Feidt</FONT><HR NOSHADE></TD>
<TD WIDTH="16%"><FONT SIZE=2><BR>
(SEAL)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="51%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Name:</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2>Antoine Feidt</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="51%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Title:</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2>President</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="51%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD COLSPAN=4><FONT SIZE=2><BR>
W&Uuml;RZBURG HOLDING S.A.,<BR>
a Luxembourg corporation</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="51%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2><BR>
/s/ Ren&eacute; Faltz</FONT><HR NOSHADE></TD>
<TD WIDTH="16%"><FONT SIZE=2><BR>
(SEAL)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="51%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Name:</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2>Ren&eacute; Faltz</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="51%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Title:</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2>Managing Director</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="51%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2><BR>
/s/ Tom Felgen</FONT><HR NOSHADE></TD>
<TD WIDTH="16%"><FONT SIZE=2><BR>
(SEAL)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="51%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Name:</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2>Tom Felgen</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="51%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Title:</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2>Managing Director</FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>17</FONT></P>

<HR NOSHADE>
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<A NAME="page_ma1971_1_18"> </A>
<P ALIGN="CENTER"><FONT SIZE=2><B>EXHIBITS  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Exhibit&nbsp;A to the Framework Agreement, the Form of Replacement Note, was filed as part of Exhibit&nbsp;10.96 with the Company's Current
Report on Form&nbsp;8-K filed with the Securities and Exchange Commission on May&nbsp;21, 2002. All other Exhibits to the Framework Agreement are attached as Exhibits to this Proxy
Statement.] </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>18</FONT></P>

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<BR>
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<P ALIGN="RIGHT"><FONT SIZE=2><A
NAME="me1971_exhibit_b"> </A>
<A NAME="toc_me1971_1"> </A>
<BR></FONT><FONT SIZE=2><B><U>EXHIBIT B</U>    <BR>  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="me1971_second_certificate_of_amendmen__sec08672"> </A>
<A NAME="toc_me1971_2"> </A></FONT> <FONT SIZE=2><B>Second Certificate of Amendment to<BR>  <BR>    Certificate of Designation, Number, Voting Powers,<BR>  Preferences and Rights of the Series of the Preferred Stock of<BR>  <BR>    I.C.
Isaacs&nbsp;&amp; Company,&nbsp;Inc.<BR>  <BR>    Designated as Series&nbsp;A Convertible Preferred Stock    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I.C. Isaacs&nbsp;&amp; Company,&nbsp;Inc. (the "</FONT><FONT SIZE=2><B>Corporation</B></FONT><FONT SIZE=2>"), a corporation organized and existing under and by
virtue of the General Corporation Law of the State of Delaware (the "</FONT><FONT SIZE=2><B>DGCL</B></FONT><FONT SIZE=2>"), does hereby certify as follows: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIRST:
The name of the Corporation is I.C. Isaacs&nbsp;&amp; Company,&nbsp;Inc. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECOND:
The Corporation desires to amend its Amended and Restated Certificate of Incorporation (the "</FONT><FONT SIZE=2><B>Certificate of Incorporation</B></FONT><FONT SIZE=2>") by
amending certain provisions contained in the Certificate of Designation relating to the Series&nbsp;A Convertible Preferred Stock of the Corporation, as filed with the Secretary of State of the
State of Delaware (the "</FONT><FONT SIZE=2><B>Secretary</B></FONT><FONT SIZE=2>") on November&nbsp;5, 1999, as amended pursuant to a Certificate of Amendment filed with the Secretary on
March&nbsp;30, 2001 (as so amended, the "</FONT><FONT SIZE=2><B>Certificate of Designation</B></FONT><FONT SIZE=2>"). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIRD:
The following resolutions were duly adopted by the Board of Directors of the Corporation on&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2002, in
accordance with the provisions of Sections 151 and 242 of the
DGCL and pursuant to the authority conferred on the Board of Directors of the Corporation by the Certificate of Incorporation. Pursuant to such resolutions, the Certificate of Designation is hereby
amended, from and after the date of acceptance of this Certificate of Amendment by the Secretary, as follows: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
under Article Fourth of the Amended and Restated Certificate of Incorporation (the "</FONT><FONT SIZE=2><B>Certificate of Incorporation</B></FONT><FONT SIZE=2>") of the
Corporation, the Board of Directors of the Corporation is permitted to authorize the issuance of one or more classes of its preferred stock with the designations,
preferences, and relative participating, optional, or other rights and qualifications, limitations, or restrictions as may be fixed by the Board of Directors, and to amend the same; and </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
pursuant to the authority conferred on the Board of Directors of the Corporation by the Certificate of Incorporation and in the provisions of Section&nbsp;151 of the General
Corporation Law of the State of Delaware, (i)&nbsp;the Corporation duly adopted on November&nbsp;1, 1999 a resolution providing for the establishment and issuance of a series of preferred stock of
the Corporation, par value $0.0001 per share, which was designated "Series&nbsp;A Convertible Preferred Stock" (the "</FONT><FONT SIZE=2><B>Preferred Stock</B></FONT><FONT SIZE=2>") and which
consisted of 3,300,000 shares, and had such preferences and rights as are set forth in the Certificate of Designation filed with the Secretary of State of the State of Delaware (the
"</FONT><FONT SIZE=2><B>Secretary</B></FONT><FONT SIZE=2>") on November&nbsp;5, 1999 (the "</FONT><FONT SIZE=2><B>Original Certificate of Designation</B></FONT><FONT SIZE=2>"), and (ii)&nbsp;the
Corporation duly adopted on March&nbsp;23, 2001 a resolution providing for an amendment to the Original Certificate of Designation to amend the preferences and rights of the Preferred Stock as set
forth in the Certificate of Amendment filed with the Secretary on March&nbsp;30, 2001 (as so amended, the "</FONT><FONT SIZE=2><B>Certificate of Designation</B></FONT><FONT SIZE=2>"); and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
the directors deem it fair, advisable and in the best interests of the Corporation and its stockholders to amend the terms of the Preferred Stock as set forth in the Certificate
of Designation as follows: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RESOLVED,
that Resolution Paragraphs (2)&nbsp;through (3)&nbsp;of the Certificate of Designation shall be deleted in their entirety and replaced with the following Paragraphs
(2)&nbsp;through (3): </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;Until
and including December&nbsp;3 1, 2006 (the "</FONT><FONT SIZE=2><B>Conversion Period</B></FONT><FONT SIZE=2>"), the shares of Preferred Stock shall be
convertible, in whole as to all of such shares but not in part, at the </FONT></P>

</UL>
</UL>
<HR NOSHADE>
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<A NAME="page_me1971_1_2"> </A>
<UL>
<UL>

<P><FONT SIZE=2>
option of the holders thereof, into fully paid and nonassessable shares of common stock of the Corporation, par value $0.0001 per share (the "</FONT><FONT SIZE=2><B>Common
Stock</B></FONT><FONT SIZE=2>"), at a conversion ratio of 1:1 (the "</FONT><FONT SIZE=2><B>Conversion Ratio</B></FONT><FONT SIZE=2>"). The shares of Common Stock issuable upon conversion of the
shares of Preferred Stock, when such shares of Common Stock shall be issued in accordance with the terms thereof, are hereby declared to be and shall be duly authorized, validly issued, fully paid and
nonassessable shares of Common Stock held by the holders thereof. </FONT></P>

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(3)</FONT></DT><DD><FONT SIZE=2>a.&nbsp;&nbsp;&nbsp;&nbsp;To
convert shares of Preferred Stock into shares of Common Stock pursuant to Paragraph&nbsp;(2) above, the holders thereof shall surrender the certificate or
certificates therefor, duly endorsed, at the office of the Corporation or to the transfer agent for the Preferred Stock or the Common Stock, together with written notice to the Corporation stating
that it elects to convert the same and setting
forth the name or names in which the certificate or certificates for the shares of Common Stock should be issued. </FONT></DD></DL>
</UL>
</UL>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>b.&nbsp;&nbsp;&nbsp;&nbsp;No
fractional shares of Common Stock shall be issued upon conversion of shares of Preferred Stock. Any fractional shares of Common Stock resulting from conversion of the Preferred
Stock shall be rounded down to the nearest whole share. </FONT></P>

<P><FONT SIZE=2>c.&nbsp;&nbsp;&nbsp;&nbsp;The
Corporation shall, as soon as practicable after the surrender of the certificate or certificates evidencing shares of Preferred Stock for conversion at the office of the
Corporation or the transfer agent for the Preferred Stock or the Common Stock, issue to each holder of such shares, or its nominee or nominees, a certificate or certificates evidencing the number of
shares of Common Stock (and any other securities and property) to which it shall be entitled. Such conversion shall be deemed to have been made immediately prior to the close of business on the date
of such surrender of the shares of Preferred Stock to be converted, and the person or persons entitled to receive the shares of Common Stock issuable upon such conversion shall be treated for all
purposes as the record holder or holders of such shares of Common Stock at such date and shall, with respect to such shares, have only those rights of a holder of Common Stock of the Corporation. At
the time the conversion is deemed to have occurred, the rights of the holders of the shares of Preferred Stock shall cease except for the right to receive such shares of Common Stock. </FONT></P>


<P><FONT SIZE=2>d.&nbsp;&nbsp;&nbsp;&nbsp;If
outstanding shares of the Common Stock shall be subdivided into a greater number of shares, or combined into a smaller number of shares, or a dividend or other distribution in
shares of Common Stock or other securities of the Corporation convertible into or exchangeable for shares of Common Stock shall be paid in respect of the outstanding shares Common Stock (in which
latter event the number of shares of Common Stock issuable upon the conversion or exchange of such securities shall be deemed to have been distributed), the Conversion Ratio in effect immediately
prior to such subdivision or combination or at the record date of such dividend or distribution shall, simultaneously with the effectiveness of such subdivision or combination or immediately after the
record date of such dividend or distribution, be proportionately adjusted so that the holders of shares of Preferred Stock shall have the right to convert such shares of Preferred Stock into the
number of shares of Common Stock which they would have owned after the event had such shares of Preferred Stock been converted immediately before the happening of such event. Any adjustment to the
Conversion Ratio under this Paragraph&nbsp;(3)d. shall become effective at the close of business on the date the subdivision, combination, dividend or distribution referred to herein becomes
effective. </FONT></P>

<P><FONT SIZE=2>e.&nbsp;&nbsp;&nbsp;&nbsp;In
the event of any capital reorganization, any reclassification of the Common Stock (other than a change in par value), or the consolidation or merger of the Corporation with or into
another Person (collectively referred to hereinafter as a "</FONT><FONT SIZE=2><B>Reorganization</B></FONT><FONT SIZE=2>"), </FONT></P>

</UL>
</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

<HR NOSHADE>
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<A NAME="page_me1971_1_3"> </A>
<UL>
<UL>
<UL>
<BR>

<P><FONT SIZE=2>
the holders of the Preferred Stock shall thereafter been titled to receive, and provision shall be made therefor in any agreement relating to a Reorganization, upon conversion of the Preferred Stock
pursuant to Paragraph&nbsp;(2) above, the kind and number of shares of Common Stock or other securities or property (including cash) of the Corporation, or other corporation resulting from such
consolidation or surviving such merger, to which a holder of the number of shares of the Common Stock of the
Corporation which such holder would have owned had such shares of Preferred Stock been converted immediately before such Reorganization (based on the Conversion Ratio then in effect) would have been
entitled to receive with respect to such Reorganization; and in any such case appropriate adjustment shall be made in the application of the provisions herein set forth with respect to the rights and
interests thereafter of the holders of the Preferred Stock, to the end that the provisions set forth herein (including the specified changes and other adjustments to the Conversion Ratio) shall
thereafter be applicable, as nearly as reasonably practicable, in relation to any shares, other securities or property thereafter receivable upon conversion of the Preferred Stock. The provisions of
this Paragraph&nbsp;(3)e. shall similarly apply to successive Reorganizations. </FONT></P>

<P><FONT SIZE=2>f.&nbsp;&nbsp;&nbsp;&nbsp;The
Corporation shall at all times reserve and keep available out of its authorized but unissued shares of Common Stock, solely for the purpose of effecting the conversion of the
Preferred Stock, such number of its shares of Common Stock as shall from time to time be sufficient to effect a conversion of all outstanding shares of the Preferred Stock, and if at any time the
number of authorized but unissued shares of Common Stock shall not be sufficient to effect the conversion of all then outstanding shares of the Preferred Stock, the Corporation shall promptly seek
such corporate action as may, in the opinion of its counsel, be necessary to increase its authorized but unissued shares of Common Stock to such number of shares as shall be sufficient for such
purpose. In the event of the consolidation or merger of the Corporation with another corporation where the Corporation is not the surviving corporation, effective provisions shall be made in the
certificate or articles of incorporation, merger, or consolidation, or otherwise of the surviving corporation so that such corporation will at all times reserve and keep available a sufficient number
of shares of common stock or other securities or property to provide for the conversion of the Preferred Stock in accordance with the provisions of Paragraph&nbsp;(3) hereof. </FONT></P>

<P><FONT SIZE=2>g.&nbsp;&nbsp;&nbsp;&nbsp;No
conversion rights shall attach to the Preferred Stock after the expiration of the Conversion Period. Upon liquidation of the Corporation, the right of conversion shall terminate as
of the close of business on the day fixed for payment of the liquidation preference payable with respect to the Preferred Stock pursuant to Paragraph&nbsp;(4) hereof. </FONT></P>

</UL>
</UL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, the Corporation has caused this certificate to be signed by Robert J. Arnot, its President and Chief Executive Officer, this&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;day
of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2002. </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="56%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2>I.C. Isaacs &amp; Company, Inc.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="56%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="39%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="56%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="39%"><HR NOSHADE><FONT SIZE=2> Robert J. Arnot, President and CEO<BR></FONT>
</TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

<HR NOSHADE>
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<!-- TOC_END -->
<P ALIGN="RIGHT"><FONT SIZE=2><A
NAME="mg1971_exhibit_c-1"> </A>
<A NAME="toc_mg1971_1"> </A>
<BR></FONT><FONT SIZE=2><B><U>EXHIBIT C-1</U>    <BR>  </B></FONT></P>

<P><FONT SIZE=2>NEITHER
THIS WARRANT NOR THE SHARES OF STOCK ISSUABLE UPON EXERCISE HEREOF, HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE SOLD,
TRANSFERRED, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER SUCH LAWS. </FONT></P>

<P><FONT SIZE=2>No.&nbsp;1
</FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="mg1971_i._c._isaacs___company,__mg102152"> </A>
<A NAME="toc_mg1971_2"> </A>
<BR></FONT><FONT SIZE=2><B>I. C. ISAACS&nbsp;&amp; COMPANY,&nbsp;INC.<BR>  <BR>    Common Stock Purchase Warrant    <BR>  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I.C. Isaacs&nbsp;&amp; Company,&nbsp;Inc., a Delaware corporation (the </FONT><FONT SIZE=2><B><I>"Company"</I></B></FONT><FONT SIZE=2>), hereby certifies that, for
value received, Textile Investment International S.A. (the </FONT><FONT SIZE=2><B><I>"Holder"</I></B></FONT><FONT SIZE=2>), is entitled, subject to the terms set forth below, to purchase from the Company at
any time after the date hereof (the "</FONT><FONT SIZE=2><B><I>Eligibility Date</I></B></FONT><FONT SIZE=2>") and before 5:00&nbsp;P.M., New York time, on the Expiration Date (as hereinafter defined),
Three Hundred Thousand (300,000) fully paid and nonassessable shares of Common Stock (as hereinafter defined) at a price of $0.75 per share (the "</FONT><FONT SIZE=2><B><I>Exercise
Price</I></B></FONT><FONT SIZE=2>"). The number of shares of Common Stock and the Exercise Price are subject to adjustment as provided herein. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
used herein, the following terms, unless the context otherwise requires, have the following respective meanings for purposes of this Warrant: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>"</FONT><FONT
SIZE=2><B><I>Affiliate</I></B></FONT><FONT SIZE=2>" means, with respect to a particular Person, any other Person, whether now or hereafter existing, which controls, is
controlled by, or is under common control with, such Person. For this purpose, "control" shall mean ownership of 50% or more of the total combined voting power or value of all classes of stock or
interests of the Person.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>"</FONT><FONT
SIZE=2><B><I>Company</I></B></FONT><FONT SIZE=2>" means the Company and any Person that shall succeed or otherwise assume the obligations of the Company hereunder.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2>"</FONT><FONT
SIZE=2><B><I>Common Stock</I></B></FONT><FONT SIZE=2>" means (i)&nbsp;the Company's common stock, $0.0001 par value per share, and (ii)&nbsp;any other securities or other
property into which or for which such common stock may be converted or exchanged pursuant to a plan of recapitalization, reorganization, merger, sale of assets or other similar corporate
rearrangement.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(d)</FONT></DT><DD><FONT SIZE=2>"</FONT><FONT
SIZE=2><B><I>Expiration Date</I></B></FONT><FONT SIZE=2>" means December&nbsp;31, 2011.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(e)</FONT></DT><DD><FONT SIZE=2>"</FONT><FONT
SIZE=2><B><I>Fair Market Value</I></B></FONT><FONT SIZE=2>" of a share of Common Stock on the date of determination shall have the following meaning:
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2>In
the event that, as of the date of determination, the Company is a Reporting Company, then Fair Market Value of the Common Stock shall mean the last reported sale price per share of
Common Stock on such date or, in case no such sale takes place on such date, the average closing bid and asked prices, in either case as reported in the principal consolidated transaction reporting
system with respect to securities listed or admitted to trading on a national securities exchange or included for quotation on the Nasdaq-National Market or the Nasdaq Small Cap Market, as applicable,
or if the Common Stock is not so listed or admitted to trading or included for quotation, the average high bid and low asked prices in the OTC Bulletin Board (or other
over-the-counter market regulated by the National Association of Securities Dealers,&nbsp;Inc.) or, if such system is no longer in use, the principal other automated
quotations system that may then be in use or, if the Common Stock is not quoted by any such organization, the average of the closing bid and asked prices, as furnished by a professional market maker
making a market in the Common Stock as selected in good faith by the Board of Directors of the Company or by such other source or sources as shall be selected in good faith by the </FONT></DD></DL>
</DD></DL>
</UL>
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<A NAME="page_mg1971_1_2"> </A>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>Board
of Directors of the Company. If the date of determination is not a trading day, the determination shall be made as of the next preceding trading day. As used herein, the term "trading day"
shall mean a day on which public trading of securities occurs and is reported in the principal consolidated reporting system referred to above, or if the Common Stock is not listed or admitted to
trading on a national securities exchange or included for quotation on the Nasdaq-National Market or Nasdaq Small Cap Market, any business day. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(ii)</FONT></DT><DD><FONT SIZE=2>If,
as of the date of the determination of Fair Market Value, the Company is not a Reporting Company, then the Fair Market Value shall be the appraised fair market value as of such
date, as
determined by an independent appraiser of recognized standing and appraisal method selected by the Board of Directors of the Company. </FONT></DD></DL>
<BR>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(f)</FONT></DT><DD><FONT SIZE=2>"</FONT><FONT
SIZE=2><B><I>Person</I></B></FONT><FONT SIZE=2>" means a natural person or any association, corporation, general partnership, limited partnership or limited liability company.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(g)</FONT></DT><DD><FONT SIZE=2>"</FONT><FONT
SIZE=2><B><I>Reporting Company</I></B></FONT><FONT SIZE=2>" means a company the common stock of which is registered under Section&nbsp;12 of the Securities Exchange Act of
1934, as amended. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;<U>Exercise
of Warrant</U>. The Holder may exercise this Warrant at any time and from time to time after the date hereof until 5:00&nbsp;P.M., New
York time, on the Expiration Date, provided however, that if such day is a day on which banking institutions in the State of New York are authorized by law to close, then on the next succeeding day
that shall not be such a day. </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;<U>Full
Exercise</U>. This Warrant may be exercised by the Holder by surrender of this Warrant, with the form of subscription at the end hereof
duly executed by the Holder to the Company at its principal office, accompanied by payment, in cash or by certified or official bank check payable to the order of the Company, in the amount obtained
by multiplying the number of shares of Common Stock for which this Warrant is then exercisable by the Exercise Price. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;<U>Partial
Exercise</U>. This Warrant may be exercised in part by surrender of the Warrant in the manner and at the place provided in
Section&nbsp;1(a) except that the amount payable by the Holder on such partial exercise shall be the amount obtained by multiplying the number of shares of Common Stock designated by the Holder in
the subscription at the end hereof by the Exercise Price. Upon any such partial exercise, the Company at its expense will forthwith issue and deliver to or upon the order of the Holder a new warrant
or warrants of like tenor, in the name of the Holder may request, calling in the aggregate on the face or faces thereof for the number of shares of Common Stock for which such warrant or warrants may
still be exercised. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;<U>Exercise
by Exchange of Warrant</U>. Notwithstanding the provisions of Subsection (a)&nbsp;above, the exercise price may be paid at the
Holder's election by surrender of all or a portion of the Warrant at any time or from time to time prior to its expiration ("</FONT><FONT SIZE=2><B><I>Net Issuance</I></B></FONT><FONT SIZE=2>"). If the
Holder elects the Net Issuance method, the Company will, as promptly as practicable, issue certificates </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

<HR NOSHADE>
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<A NAME="page_mg1971_1_3"> </A>
<UL>
<BR>

<P><FONT SIZE=2>
representing shares of its Common Stock to the Holder hereof in accordance with the following formula: </FONT></P>
</UL>
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<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="41%" ALIGN="RIGHT"><FONT SIZE=2>X =</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="CENTER"><FONT SIZE=2>(P)(A-B)</FONT><HR NOSHADE><FONT SIZE=2> A<BR></FONT>
</TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="41%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE>
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<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="9%"><FONT SIZE=2>Where:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="89%"><FONT SIZE=2>X&nbsp;= the number of shares of Common Stock to be issued to the Holder for the portion of the Warrant being exercised.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="9%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="89%"><FONT SIZE=2><BR>
P&nbsp;= the number of shares of Common Stock for which this Warrant is requested to be exercised.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="9%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="89%"><FONT SIZE=2><BR>
A&nbsp;= the Fair Market Value of one (1)&nbsp;share of the Company's Common Stock as of the date of such exercise.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="9%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="89%"><FONT SIZE=2><BR>
B&nbsp;= the Exercise Price.</FONT></TD>
</TR>
</TABLE>
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<P><FONT SIZE=2>Such
exchange shall be effective upon the date of receipt by the Company of the original Warrant surrendered for cancellation and a written request from the Holder that the exchange pursuant to this
section be made, or at such later date as may be specified in such request. No fractional shares arising out of the above formula for determining the number of shares issuable in such exchange shall
be issued, and the Company shall in lieu thereof make payment to the Holder of cash in the amount of such fraction multiplied by the then Fair Market Value of such securities on the date of the
exchange. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;<U>Delivery
of Stock Certificates, on Exercise</U>. As soon as practicable after the exercise of this Warrant in full or in part, and in any event
within five (5)&nbsp;business days thereafter, the Company, at its expense (including the payment by it of any applicable issue taxes), will cause to be issued in the name of and delivered to the
Holder, a certificate or certificates for the number of fully paid and non-assessable shares of Common Stock to which the Holder shall be entitled on such exercise, plus, any cash in lieu
of any fractional share to which the Holder would otherwise be entitled (calculated in accordance with Section&nbsp;1 (c), together with any other stock or other securities and property (including
cash, where applicable) to which the Holder is entitled upon such exercise pursuant to Section&nbsp;1 or otherwise. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;<U>Adjustment
for Dividends in Other Stock, Property, Reclassification</U>. In case at any time or from time to time, the holders of Common Stock
shall have received, or shall have become entitled to receive (on or after the record date fixed therefor), without payment therefor, </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>other
or additional stock or other securities or property (other than cash) by way of dividend, or
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>any
cash (excluding cash dividends payable solely out of earnings or earned surplus of the Company), or
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2>other
or additional stock or other securities or property (including cash) by way of spin-off, split-up, reclassification, recapitalization, combination of
shares or similar corporate rearrangement, </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>other
than additional shares of Common Stock issued as a stock dividend or in a stock-split (adjustments in respect of which are provided for in Section&nbsp;5 hereof), then and in each such case
the Holder, upon the exercise hereof as provided in Section&nbsp;1 hereof, shall be entitled to receive the amount of stock and other securities and property (including cash in the cases referred to
in subdivisions (b)&nbsp;and (c)&nbsp;of this Section&nbsp;3) that Holder would hold on the date of such exercise if on the date hereof had he been the holder of record of the number of shares
of Common Stock called for on the face of this Warrant and had thereafter, during the period from the date hereof to and including </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

<HR NOSHADE>
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<A NAME="page_mg1971_1_4"> </A>
<BR>

<P><FONT SIZE=2>
the date of such exercise, retained such shares and all such other or additional stock and other securities and property (including cash in the cases referred to in subdivisions (b)&nbsp;and
(c)&nbsp;of this Section&nbsp;3) receivable by him as aforesaid during such period, giving effect to all adjustments called for during such period by Sections 4 and 5. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;<U>Adjustment
for Reorganization, Consolidation, Merger</U>. </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;<U>General</U>.
In case at any time or from time to time, the Company shall (i)&nbsp;effect a reorganization, (ii)&nbsp;consolidate with or
merge into any other Person, or (iii)&nbsp;transfer all or substantially all of its properties or assets to any other Person under any plan or arrangement contemplating the dissolution of the
Company, then, in each such case, except as otherwise provided in Section&nbsp;4(c) hereof, Holder, upon the exercise hereof as provided in Section&nbsp;1 hereof, at any time after the
consummation of such reorganization, consolidation or merger or the effective date of such dissolution, as the case may be, shall receive, in lieu of Common Stock issuable on such exercise prior to
such consummation or such effective date, the stock and other securities and property (including cash) to which such holder would have been entitled upon such consummation or in connection with such
dissolution, as the case may be, if such holder had so exercised this Warrant immediately prior thereto, all subject to further adjustment thereafter as provided in Sections 3 and 5 hereof. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;<U>Dissolution</U>.
In the event of any dissolution of the Company following the transfer of all or substantially all of its properties or assets,
the Company, prior to such dissolution, shall at its expense deliver or cause to be delivered the stock and other securities and property (including cash, where
applicable) receivable by the holders of this Warrant after the effective date of such dissolution pursuant to this Section&nbsp;4 to a bank or trust company, as trustee for Holder. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;<U>Continuation
of Terms</U>. Except as otherwise provided herein, upon any reorganization, consolidation, merger or transfer (and any dissolution
following any transfer) referred to in this Section&nbsp;4, this Warrant shall continue in full force and effect and the terms hereof shall be applicable to the shares of stock and other securities
and property receivable on the exercise of this Warrant after the consummation of such reorganization, consolidation or merger or the effective date of dissolution following any such transfer, as the
case may be, and shall be binding upon the issuer of any such stock or other securities, including, in the case of any such transfer, the Person acquiring all or substantially all of the properties or
assets of the Company, whether or not such Person shall have expressly assumed the terms of this Warrant. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;<U>Adjustment
for Extraordinary Events</U>. In the event that the Company shall (a)&nbsp;issue additional shares of Common Stock as a dividend or
other distribution on outstanding Common Stock, (b)&nbsp;subdivide its outstanding shares of Common Stock, or (c)&nbsp;combine its outstanding shares of Common Stock into a smaller number of
shares of Common Stock, then, in each such event, the Exercise Price shall, simultaneously with the happening of such event, be adjusted by multiplying the Exercise Price by a fraction, the numerator
of which shall be the number of shares of Common Stock outstanding immediately prior to such event and the denominator of which shall be the number of shares of Common Stock outstanding immediately
after such event, and the product so obtained shall thereafter be the Exercise Price then in effect. The Exercise Price, as so adjusted, shall be readjusted in the same manner upon the happening of
any successive event or events described in this Section&nbsp;5. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
holder of this Warrant shall thereafter, on the exercise hereof as provided in Section&nbsp;1 hereof, be entitled to receive that number of shares of Common Stock determined by
multiplying the number of shares of Common Stock which would otherwise (but for the provisions of this Section&nbsp;5) be issuable on such exercise by a fraction, the numerator of which is the
Exercise Price that would otherwise (but for the provisions of this Section 5)&nbsp;be in effect, and the denominator of which is the Exercise Price in effect on the date of such exercise. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

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<A NAME="page_mg1971_1_5"> </A>
<BR>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;<U>Reservation
of Stock, etc., Issuable on Exercise of Warrant</U>. The Company will at all times reserve and keep available, solely for issuance
and delivery on the exercise of this Warrant, all shares of Common Stock from time to time issuable on the exercise hereof. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;<U>Exchange
of Warrant</U>. On surrender for exchange of this Warrant, properly endorsed, to the Company, the Company at its expense will issue and
deliver to or on the order of the Holder thereof a new warrant or warrant of like tenor, in the name of the Holder, calling in the aggregate on the face or faces thereof for the number of shares of
Common Stock for which this Warrant is then exercisable. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;<U>Replacement
of Warrant</U>. On receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this
Warrant and, in the case of any such loss, theft or destruction of this Warrant, on delivery of an indemnity agreement or security reasonably satisfactory in form and amount to the Company or, in the
case of any such mutilation, on surrender and cancellation of such Warrant, the Company at its expense will execute and deliver, in lieu thereof, a new warrant of like tenor. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp;<U>Resale
of Warrant or Securities</U>. Neither this Warrant nor the securities issuable upon exercise of this Warrant have been registered under
the Securities Act of 1933, as amended (the "</FONT><FONT SIZE=2><B><I>Securities Act</I></B></FONT><FONT SIZE=2>"), or under the securities laws of any state. Neither this Warrant nor such securities when
issued may be sold, transferred, pledged or hypothecated, directly or indirectly, in whole or in part, in the absence of (i)&nbsp;an effective registration statement for this Warrant or such
securities, as the case may be, under the Securities Act and such registration or qualification as may be necessary under the securities laws of any state, or (ii)&nbsp;an opinion of counsel
reasonably satisfactory to the Company that such registration or qualification is not required. The Company shall cause a certificate or certificates evidencing all or any of the securities issued
upon exercise of this Warrant prior to said registration and qualification of such securities to bear the following legend: "The shares evidenced by this certificate have not been registered under the
Securities Act of 1933, as amended, or under the securities laws of any state. These shares may not be sold, transferred, pledged, hypothecated or otherwise disposed of, directly or indirectly, in
whole or in part, in the absence of an effective registration statement under the Securities Act of 1933, as amended, and such registration or qualification as may be necessary under the securities
laws of any state, or an opinion of counsel reasonably satisfactory to the Company that such registration or qualification is not required." </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;&nbsp;<U>Restrictions
on Transfer</U>. In addition to the restrictions set forth in Section&nbsp;9 above, this Warrant shall not be transferred,
pledged or hypothecated, directly or indirectly, in whole or in part, by the Holder to any Person other than the Company or an Affiliate of the Holder without the prior written consent of the Company.
The Holder agrees that any of the shares of Common Stock issued upon the exercise of this Warrant shall be subject to the Stockholders' Agreement by and between the Company and the Holder dated
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2002, as hereinafter amended (the "</FONT><FONT SIZE=2><B><I>Stockholders' Agreement</I></B></FONT><FONT
SIZE=2>"), which imposes certain stock transfer and other restrictions on the holder
of such shares as set forth in the Stockholders' Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;&nbsp;<U>Notices,
Etc</U>. All notices and other communications from the Company to the Holder of this Warrant shall be mailed by first class registered
or certified mail, postage prepaid, at such address as may have been furnished to the Company in writing by the Holder. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;&nbsp;<U>Governing
Law</U>. This Warrant shall be governed by, and construed in accordance with, the laws of the State of Delaware. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;&nbsp;<U>Miscellaneous</U>.
The headings in this Warrant are for purposes of reference only, and shall not limit or otherwise affect any of the terms
hereof. This Warrant is being executed as an instrument under
seal. The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision. </FONT></P>

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<TD WIDTH="56%"><FONT SIZE=2>Issue Date:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2002</FONT></TD>
<TD COLSPAN=2 VALIGN="TOP"><FONT SIZE=2>I.C. ISAACS &amp; COMPANY, INC.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="56%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="39%"><BR><HR NOSHADE><FONT SIZE=2> Robert J. Arnot, President<BR></FONT>
</TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>5</FONT></P>

<HR NOSHADE>
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<P ALIGN="CENTER"><FONT SIZE=2>
FORM OF SUBSCRIPTION<BR>
(To be signed only on exercise of Warrant) </FONT></P>

<P><FONT SIZE=2>TO:
I.C. Isaacs&nbsp;&amp; Company,&nbsp;Inc. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned Holder of the attached Warrant hereby irrevocably elects to exercise this Warrant for, and to purchase thereunder,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of Common Stock of I.C.
Isaacs&nbsp;&amp; Company,&nbsp;Inc. and [herewith makes payment of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;therefor] [hereby elects to have such shares issued as a Net
Issuance], and requests that the certificates for such shares be issued in the name of, and delivered to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
whose address is&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective
as of Holder's purchase of such shares of Common Stock of I.C. Isaacs&nbsp;&amp; Company,&nbsp;Inc. pursuant to the attached Warrant, Holder [and/or each person in
whose name certificates for shares of Common Stock of the Company are issued pursuant hereto] agrees to be fully bound by, and be subject to, all of the covenants, terms and conditions of
the Company Stockholders' Agreement dated&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2002 (which has been made available to the undersigned) as
though an original party thereto and agrees that he/she/it shall be deemed a
"Stockholder" for all purposes thereof. </FONT></P>

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<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="53%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="47%"><FONT SIZE=2>[HOLDER]</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="53%"><FONT SIZE=2><BR>
Dated:</FONT></TD>
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="53%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="47%"><HR NOSHADE><FONT SIZE=2> (Signature must conform to name of holder as specified on the face of this Warrant)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="53%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="47%"><BR><HR NOSHADE><FONT SIZE=2> (Address)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="53%"><FONT SIZE=2><BR>
Dated:</FONT></TD>
<TD WIDTH="47%"><FONT SIZE=2><BR>
[Stockholder(s)]</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="53%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="47%"><BR><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="53%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="47%"><BR><HR NOSHADE><FONT SIZE=2> (Address)</FONT></TD>
</TR>
</TABLE>
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<P ALIGN="RIGHT"><FONT SIZE=2><A
NAME="mi1971_exhibit_c-2"> </A>
<A NAME="toc_mi1971_1"> </A>
<BR></FONT><FONT SIZE=2><B><U>EXHIBIT C-2</U>    <BR>  </B></FONT></P>

<P><FONT SIZE=2>NEITHER
THIS WARRANT NOR THE SHARES OF STOCK ISSUABLE UPON EXERCISE HEREOF, HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE SOLD,
TRANSFERRED, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER SUCH LAWS. </FONT></P>

<P><FONT SIZE=2>No.&nbsp;2
</FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="mi1971_i._c._isaacs___company,__mi102154"> </A>
<A NAME="toc_mi1971_2"> </A>
<BR></FONT><FONT SIZE=2><B>I. C. ISAACS&nbsp;&amp; COMPANY,&nbsp;INC.<BR>  <BR>    Common Stock Purchase Warrant    <BR>  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I.C. Isaacs&nbsp;&amp; Company,&nbsp;Inc., a Delaware corporation (the </FONT><FONT SIZE=2><B><I>"Company"</I></B></FONT><FONT SIZE=2>), hereby certifies that, for
value received, Textile Investment International S.A. (the </FONT><FONT SIZE=2><B><I>"Holder"</I></B></FONT><FONT SIZE=2>), is entitled, subject to the terms set forth below, to purchase from the Company at
any time after the date hereof (the "</FONT><FONT SIZE=2><B><I>Eligibility Date</I></B></FONT><FONT SIZE=2>") and before 5:00&nbsp;P.M., New York time, on the Expiration Date (as hereinafter defined), Two
Hundred Thousand (200,000) fully paid and nonassessable shares of Common Stock (as hereinafter defined) at a price of $0.75 per share (the "</FONT><FONT SIZE=2><B><I>Exercise
Price</I></B></FONT><FONT SIZE=2>"). The number of shares of Common Stock and the Exercise Price are subject to adjustment as provided herein. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
used herein, the following terms, unless the context otherwise requires, have the following respective meanings for purposes of this Warrant: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>"</FONT><FONT
SIZE=2><B><I>Affiliate</I></B></FONT><FONT SIZE=2>" means, with respect to a particular Person, any other Person, whether now or hereafter existing, which controls, is
controlled by, or is under common control with, such Person. For this purpose, "control" shall mean ownership of 50% or more of the total combined voting power or value of all classes of stock or
interests of the Person.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>"</FONT><FONT
SIZE=2><B><I>Company</I></B></FONT><FONT SIZE=2>" means the Company and any Person that shall succeed or otherwise assume the obligations of the Company hereunder.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2>"</FONT><FONT
SIZE=2><B><I>Common Stock</I></B></FONT><FONT SIZE=2>" means (i)&nbsp;the Company's common stock, $0.0001 par value per share, and (ii)&nbsp;any other securities or other
property into which or for which such common stock may be converted or exchanged pursuant to a plan of recapitalization, reorganization, merger, sale of assets or other similar corporate
rearrangement.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(d)</FONT></DT><DD><FONT SIZE=2>"</FONT><FONT
SIZE=2><B><I>Expiration Date</I></B></FONT><FONT SIZE=2>" means December&nbsp;31, 2011.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(e)</FONT></DT><DD><FONT SIZE=2>"</FONT><FONT
SIZE=2><B><I>Fair Market Value</I></B></FONT><FONT SIZE=2>" of a share of Common Stock on the date of determination shall have the following meaning:
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2>In
the event that, as of the date of determination, the Company is a Reporting Company, then Fair Market Value of the Common Stock shall mean the last reported sale price per share of
Common Stock on such date or, in case no such sale takes place on such date, the average closing bid and asked prices, in either case as reported in the principal consolidated transaction reporting
system with respect to securities listed or admitted to trading on a national securities exchange or included for quotation on the Nasdaq-National Market or the Nasdaq Small Cap Market, as applicable,
or if the Common Stock is not so listed or admitted to trading or included for quotation, the average high bid and low asked prices in the OTC Bulletin Board (or other
over-the-counter market regulated by the National Association of Securities Dealers,&nbsp;Inc.) or, if such system is no longer in use, the principal other automated
quotations system that may then be in use or, if the Common Stock is not quoted by any such organization, the average of the closing bid and asked prices, as furnished by a professional market maker
making a market in the Common Stock as selected in good faith by the Board of Directors of the Company or by such other source or sources as shall be selected in good faith by the </FONT></DD></DL>
</DD></DL>
</UL>
<HR NOSHADE>
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<A NAME="page_mi1971_1_2"> </A>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>Board
of Directors of the Company. If the date of determination is not a trading day, the determination shall be made as of the next preceding trading day. As used herein, the term "trading day"
shall mean a day on which public trading of securities occurs and is reported in the principal consolidated reporting system referred to above, or if the Common Stock is not listed or admitted to
trading on a national securities exchange or included for quotation on the Nasdaq-National Market or Nasdaq Small Cap Market, any business day. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(ii)</FONT></DT><DD><FONT SIZE=2>If,
as of the date of the determination of Fair Market Value, the Company is not a Reporting Company, then the Fair Market Value shall be the appraised fair market value as of such
date, as determined by an independent appraiser of recognized standing and appraisal method selected by the Board of Directors of the Company. </FONT></DD></DL>
<BR>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(f)</FONT></DT><DD><FONT SIZE=2>"</FONT><FONT
SIZE=2><B><I>Person</I></B></FONT><FONT SIZE=2>" means a natural person or any association, corporation, general partnership, limited partnership or limited liability company.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(g)</FONT></DT><DD><FONT SIZE=2>"</FONT><FONT
SIZE=2><B><I>Reporting Company</I></B></FONT><FONT SIZE=2>" means a company the common stock of which is registered under Section&nbsp;12 of the Securities Exchange Act of
1934, as amended. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;<U>Exercise
of Warrant</U>. The Holder may exercise this Warrant at any time and from time to time after the date hereof until 5:00&nbsp;P.M., New
York time, on the Expiration Date, provided however, that if such day is a day on which banking institutions in the State of New York are authorized by law to close, then on the next succeeding day
that shall not be such a day. </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;<U>Full
Exercise</U>. This Warrant may be exercised by the Holder by surrender of this Warrant, with the form of subscription at the end hereof
duly executed by the Holder to the Company at its principal office, accompanied by payment, in cash or by certified or official bank check payable to the order of the Company, in the amount obtained
by multiplying the number of shares of Common Stock for which this Warrant is then exercisable by the Exercise Price. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;<U>Partial
Exercise</U>. This Warrant may be exercised in part by surrender of the Warrant in the manner and at the place provided in
Section&nbsp;1(a) except that the amount payable by the Holder on such partial exercise shall be the amount obtained by multiplying the number of shares of Common Stock designated by the Holder in
the subscription at the end hereof by the Exercise Price. Upon any such partial exercise, the Company at its expense will forthwith issue and deliver to or upon the order of the Holder a new warrant
or warrants of like tenor, in the name of the Holder may request, calling in the aggregate on the face or faces thereof for the number of shares of Common Stock for which such warrant or warrants may
still be exercised. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;<U>Exercise
by Exchange of Warrant</U>. Notwithstanding the provisions of Subsection (a)&nbsp;above, the exercise price may be paid at the
Holder's election by surrender of all or a portion of the Warrant at any time or from time to time prior to its expiration ("</FONT><FONT SIZE=2><B><I>Net Issuance</I></B></FONT><FONT SIZE=2>"). If the
Holder elects the Net Issuance method, the Company will, as promptly as practicable, issue certificates </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

<HR NOSHADE>
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<A NAME="page_mi1971_1_3"> </A>
<UL>
<BR>

<P><FONT SIZE=2>
representing shares of its Common Stock to the Holder hereof in accordance with the following formula: </FONT></P>
</UL>
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<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="41%" ALIGN="RIGHT"><FONT SIZE=2>X =</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="CENTER"><FONT SIZE=2>(P)(A-B)</FONT><HR NOSHADE><FONT SIZE=2> A<BR></FONT>
</TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="41%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="9%"><FONT SIZE=2>Where:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="89%"><FONT SIZE=2>X&nbsp;= the number of shares of Common Stock to be issued to the Holder for the portion of the Warrant being exercised.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="9%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="89%"><FONT SIZE=2><BR>
P&nbsp;= the number of shares of Common Stock for which this Warrant is requested to be exercised.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="9%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="89%"><FONT SIZE=2><BR>
A&nbsp;= the Fair Market Value of one (1)&nbsp;share of the Company's Common Stock as of the date of such exercise.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="9%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="89%"><FONT SIZE=2><BR>
B&nbsp;= the Exercise Price.</FONT></TD>
</TR>
</TABLE>
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<P><FONT SIZE=2>Such
exchange shall be effective upon the date of receipt by the Company of the original Warrant surrendered for cancellation and a written request from the Holder that the exchange pursuant to this
section be made, or at such later date as may be specified in such request. No fractional shares arising out of the above formula for determining the number of shares issuable in such exchange shall
be issued, and the Company shall in lieu thereof make payment to the Holder of cash in the amount of such fraction multiplied by the then Fair Market Value of such securities on the date of the
exchange. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;<U>Delivery
of Stock Certificates, on Exercise</U>. As soon as practicable after the exercise of this Warrant in full or in part, and in any event
within five (5)&nbsp;business days thereafter, the Company, at its expense (including the payment by it of any applicable issue taxes), will cause to be issued in the name of and delivered to the
Holder, a certificate or certificates for the number of fully paid and non-assessable shares of Common Stock to which the Holder shall be entitled on such exercise, plus, any cash in lieu
of any fractional share to which the Holder would otherwise be entitled (calculated in accordance with Section&nbsp;1 (c), together with any other stock or other securities and property (including
cash, where applicable) to which the Holder is entitled upon such exercise pursuant to Section&nbsp;1 or otherwise. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;<U>Adjustment
for Dividends in Other Stock, Property, Reclassification</U>. In case at any time or from time to time, the holders of Common Stock
shall have received, or shall have become entitled to receive (on or after the record date fixed therefor), without payment therefor, </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>other
or additional stock or other securities or property (other than cash) by way of dividend, or
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>any
cash (excluding cash dividends payable solely out of earnings or earned surplus of the Company), or
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2>other
or additional stock or other securities or property (including cash) by way of spin-off, split-up, reclassification, recapitalization, combination of
shares or similar corporate rearrangement, </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>other
than additional shares of Common Stock issued as a stock dividend or in a stock-split (adjustments in respect of which are provided for in Section&nbsp;5 hereof), then and in each such case
the Holder, upon the exercise hereof as provided in Section&nbsp;1 hereof, shall be entitled to receive the amount of stock and other securities and property (including cash in the cases referred to
in subdivisions (b)&nbsp;and (c)&nbsp;of this Section&nbsp;3) that Holder would hold on the date of such exercise if on the date hereof had he been the holder of record of the number of shares
of Common Stock called for on the face of this Warrant and had thereafter, during the period from the date hereof to and including </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

<HR NOSHADE>
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<A NAME="page_mi1971_1_4"> </A>
<BR>

<P><FONT SIZE=2>
the date of such exercise, retained such shares and all such other or additional stock and other securities and property (including cash in the cases referred to in subdivisions (b)&nbsp;and
(c)&nbsp;of this Section&nbsp;3) receivable by him as aforesaid during such period, giving effect to all adjustments called for during such period by Sections 4 and 5. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;<U>Adjustment
for Reorganization, Consolidation, Merger</U>. </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;<U>General</U>.
In case at any time or from time to time, the Company shall (i)&nbsp;effect a reorganization, (ii)&nbsp;consolidate with or
merge into any other Person, or (iii)&nbsp;transfer all or substantially all of its properties or assets to any other Person under any plan or arrangement contemplating the dissolution of the
Company, then, in each such case, except as otherwise provided in Section&nbsp;4(c) hereof, Holder, upon the exercise hereof as provided in Section&nbsp;1 hereof, at any time after the
consummation of such reorganization, consolidation or merger or the effective date of such dissolution, as the case may be, shall receive, in lieu of Common Stock issuable on such exercise prior to
such consummation or such effective date, the stock and other securities and property (including cash) to which such holder would have been entitled upon such consummation or in connection with such
dissolution, as the case may be, if such holder had so exercised this Warrant immediately prior thereto, all subject to further adjustment thereafter as provided in Sections 3 and 5 hereof. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;<U>Dissolution</U>.
In the event of any dissolution of the Company following the transfer of all or substantially all of its properties or assets,
the Company, prior to such dissolution, shall at its expense deliver or cause to be delivered the stock and other securities and property (including cash, where applicable) receivable by the holders
of this Warrant after the effective date of such dissolution pursuant to this Section&nbsp;4 to a bank or trust company, as trustee for Holder. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;<U>Continuation
of Terms</U>. Except as otherwise provided herein, upon any reorganization, consolidation, merger or transfer (and any dissolution
following any transfer) referred to in this Section&nbsp;4, this Warrant shall continue in full force and effect and the terms hereof shall be applicable to the shares of stock and other securities
and property receivable on the exercise of this Warrant after the consummation of such reorganization, consolidation or merger or the effective date of dissolution following any such transfer, as the
case may be, and shall be binding upon the issuer of any such stock or other securities, including, in the case of any such transfer, the Person acquiring all or substantially all of the properties or
assets of the Company, whether or not such Person shall have expressly assumed the terms of this Warrant. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;<U>Adjustment
for Extraordinary Events</U>. In the event that the Company shall (a)&nbsp;issue additional shares of Common Stock as a dividend or
other distribution on outstanding Common Stock, (b)&nbsp;subdivide its outstanding shares of Common Stock, or (c)&nbsp;combine its outstanding shares of Common Stock into a smaller number of
shares of Common Stock, then, in each such event, the Exercise Price shall, simultaneously with the happening of such event, be adjusted by multiplying the Exercise Price by a fraction, the numerator
of which shall be the number of shares of Common Stock outstanding immediately prior to such event and the denominator of which shall be the number of shares of Common Stock outstanding immediately
after such event, and the product so obtained shall thereafter be the Exercise Price then in effect. The Exercise Price, as so adjusted, shall be readjusted in the same manner upon the happening of
any successive event or events described in this Section&nbsp;5. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
holder of this Warrant shall thereafter, on the exercise hereof as provided in Section&nbsp;1 hereof, be entitled to receive that number of shares of Common Stock determined by
multiplying the number of shares of Common Stock which would otherwise (but for the provisions of this Section&nbsp;5) be issuable on such exercise by a fraction, the numerator of which is the
Exercise Price that would otherwise (but for the provisions of this Section 5)&nbsp;be in effect, and the denominator of which is the Exercise Price in effect on the date of such exercise. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

<HR NOSHADE>
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<A NAME="page_mi1971_1_5"> </A>
<BR>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;<U>Reservation
of Stock, etc., Issuable on Exercise of Warrant</U>. The Company will at all times reserve and keep available, solely for issuance
and delivery on the exercise of this Warrant, all shares of Common Stock from time to time issuable on the exercise hereof. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;<U>Exchange
of Warrant</U>. On surrender for exchange of this Warrant, properly endorsed, to the Company, the Company at its expense will issue and
deliver to or on the order of the Holder thereof a new warrant or warrant of like tenor, in the name of the Holder, calling in the aggregate on the face or faces thereof for the number of shares of
Common Stock for which this Warrant is then exercisable. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;<U>Replacement
of Warrant</U>. On receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this
Warrant and, in the case of any such loss, theft or destruction of this Warrant, on delivery of an indemnity agreement or security reasonably satisfactory in form and amount to the Company or, in the
case of any such mutilation, on surrender and cancellation of such Warrant, the Company at its expense will execute and deliver, in lieu thereof, a new warrant of like tenor. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp;<U>Resale
of Warrant or Securities</U>. Neither this Warrant nor the securities issuable upon exercise of this Warrant have been registered under
the Securities Act of 1933, as amended (the "</FONT><FONT SIZE=2><B><I>Securities Act</I></B></FONT><FONT SIZE=2>"), or under the securities laws of any state. Neither this Warrant nor such securities when
issued may be sold, transferred, pledged or hypothecated, directly or indirectly, in whole or in part, in the absence of (i)&nbsp;an effective registration statement for this Warrant or such
securities, as the case may be, under the Securities Act and such registration or qualification as may be necessary under the securities laws of any state, or (ii)&nbsp;an opinion of counsel
reasonably satisfactory to the Company that such registration or qualification is not required. The Company shall cause a certificate or certificates evidencing all or any of the securities issued
upon exercise of this Warrant prior to said registration and qualification of such securities to bear the following legend: "The shares evidenced by this certificate have not been registered under the
Securities Act of 1933, as amended, or under the securities laws of any state. These shares may not be sold, transferred, pledged, hypothecated or otherwise disposed of, directly or indirectly, in
whole or in part, in the absence of an effective registration statement under the Securities Act of 1933, as amended, and such registration or qualification as may be necessary under the securities
laws of any state, or an opinion of counsel reasonably satisfactory to the Company that such registration or qualification is not required." </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;&nbsp;<U>Restrictions
on Transfer</U>. In addition to the restrictions set forth in Section&nbsp;9 above, this Warrant shall not be transferred,
pledged or hypothecated, directly or indirectly, in whole or in part, by the Holder to any Person other than the Company or an Affiliate of the Holder without the prior written consent of the Company.
The Holder agrees that any of the shares of Common Stock issued upon the exercise of this Warrant shall be subject to the Stockholders' Agreement by and between the Company and the Holder dated
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2002, as hereinafter amended (the "</FONT><FONT SIZE=2><B><I>Stockholders' Agreement</I></B></FONT><FONT
SIZE=2>"), which imposes certain stock transfer and other restrictions on the holder
of such shares as set forth in the Stockholders' Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;&nbsp;<U>Notices,
Etc</U>. All notices and other communications from the Company to the Holder of this Warrant shall be mailed by first class registered
or certified mail, postage prepaid, at such address as may have been furnished to the Company in writing by the Holder. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;&nbsp;<U>Governing
Law</U>. This Warrant shall be governed by, and construed in accordance with, the laws of the State of Delaware. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;&nbsp;<U>Miscellaneous</U>.
The headings in this Warrant are for purposes of reference only, and shall not limit or otherwise affect any of the terms
hereof. This Warrant is being executed as an instrument under seal. The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other
provision. </FONT></P>

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<TR VALIGN="BOTTOM">
<TD WIDTH="56%"><FONT SIZE=2>Issue Date:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2002</FONT></TD>
<TD COLSPAN=2 VALIGN="TOP"><FONT SIZE=2>I.C. ISAACS &amp; COMPANY, INC.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="56%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="39%"><BR><HR NOSHADE><FONT SIZE=2> Robert J. Arnot, President<BR></FONT>
</TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>5</FONT></P>

<HR NOSHADE>
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<P ALIGN="CENTER"><FONT SIZE=2>
FORM OF SUBSCRIPTION<BR>
(To be signed only on exercise of Warrant) </FONT></P>

<P><FONT SIZE=2>TO:
I.C. Isaacs&nbsp;&amp; Company,&nbsp;Inc. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned Holder of the attached Warrant hereby irrevocably elects to exercise this Warrant for, and to purchase thereunder,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of Common Stock of I.C.
Isaacs&nbsp;&amp; Company,&nbsp;Inc. and [herewith makes payment of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;therefor] [hereby elects to have such shares issued as a Net
Issuance], and requests that the certificates for such shares be issued in the name of, and delivered to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
whose address is&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective
as of Holder's purchase of such shares of Common Stock of I.C. Isaacs&nbsp;&amp; Company,&nbsp;Inc. pursuant to the attached Warrant, Holder [and/or each person in
whose name certificates for shares of Common Stock of the Company are issued pursuant hereto] agrees to be fully bound by, and be subject to, all of the covenants, terms and conditions of
the Company Stockholders' Agreement dated&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2002 (which has been made available to the undersigned) as
though an original party thereto and agrees that he/she/it shall be deemed a
"Stockholder" for all purposes thereof. </FONT></P>

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<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="53%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="47%"><FONT SIZE=2>[HOLDER]</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="53%"><FONT SIZE=2><BR>
Dated:</FONT></TD>
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="53%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="47%"><HR NOSHADE><FONT SIZE=2> (Signature must conform to name of holder as specified on the face of this Warrant)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="53%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="47%"><BR><HR NOSHADE><FONT SIZE=2> (Address)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="53%"><FONT SIZE=2><BR>
Dated:</FONT></TD>
<TD WIDTH="47%"><FONT SIZE=2><BR>
[Stockholder(s)]</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="53%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="47%"><BR><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="53%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="47%"><BR><HR NOSHADE><FONT SIZE=2> (Address)</FONT></TD>
</TR>
</TABLE>
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<P ALIGN="RIGHT"><FONT SIZE=2><A
NAME="mm1971_exhibit_d"> </A>
<A NAME="toc_mm1971_1"> </A>
<BR></FONT><FONT SIZE=2><B><U>EXHIBIT D</U>    <BR>  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="mm1971_i.c._isaacs___company,_inc._stockholders__agreement"> </A>
<A NAME="toc_mm1971_2"> </A>
<BR></FONT><FONT SIZE=2><B>I.C. ISAACS&nbsp;&amp; COMPANY,&nbsp;INC.<BR>  STOCKHOLDERS' AGREEMENT    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This STOCKHOLDERS' AGREEMENT (the "Agreement")
dated&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2002 is by and among I.C. Isaacs&nbsp;&amp; Company,&nbsp;Inc., a Delaware corporation
having its principal office and place of business at 3840 Bank Street, Baltimore, Maryland 21224-2522 (the "Company"), and the Persons (as hereinafter defined) whose names are set forth in
Schedule&nbsp;A hereto (the "Stockholders" and each a "Stockholder"). </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B><U>RECITALS</U>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Textile Investment International S.A., a Luxembourg corporation ("Textile Investment"), a wholly-owned subsidiary of W&uuml;rzburg Holding
S.A., a Luxembourg corporation, also known in abbreviation as W&uuml;rzburg S.A. ("W&uuml;rzburg"), has acquired from Ambra&nbsp;Inc., a Delaware corporation ("Ambra"), shares of
Common Stock, par value $.0001 per share, of the Company (the "Common Stock"), and Series&nbsp;A Convertible Preferred Stock, par value $.0001 per share, of the Company (the "Preferred Stock")
representing, in the aggregate and upon conversion of the Preferred Stock, Three Million Nine Hundred Sixty-Six Thousand Six Hundred Sixty-Seven (3,966,667) shares of Common Stock (the
"Subsequently Acquired Stock"); and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
prior to Textile Investment's acquisition of the Common Stock and the Preferred Stock from Ambra, each Stockholder held the number of shares of Common Stock set forth opposite
its name on <U>Schedule&nbsp;A</U> hereto (the "Initial Stock"); and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
the Company and the Stockholders desire to establish in this Agreement certain terms and conditions regarding the acquisition and disposition of securities of the Company by the
Stockholders and the Stockholders' relationship with the Company. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW,
THEREFORE, in consideration of the foregoing, and of the mutual covenants and agreements hereinafter provided, the parties to this Agreement, on behalf of themselves and their
successors and assigns, agree as follows: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><U>DEFINITIONS</U>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
used in this Agreement, the following terms shall have the following meanings: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Affiliate</U>.
Affiliate shall have the meaning set forth in Rule&nbsp;12b-2 promulgated under the Exchange Act, but shall include, in the case of
a Person who is an individual, any relative or spouse of such Person or any relative of such spouse, any of whom has the same home as such Person. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Beneficial
Ownership</U>. Beneficial Ownership with respect to any Equity Securities shall mean having "beneficial ownership" of such Equity Securities as
determined pursuant to Rule&nbsp;13d-3 promulgated under the Exchange Act, but omitting the words "within 60&nbsp;days" from Subsection (d)(1)(i)&nbsp;of such definition. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Board
of Directors</U>. Board of Directors shall mean the Board of Directors of the Company. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Budget</U>.
Budget shall mean for fiscal year 2002, the budget attached hereto as <U>Exhibit&nbsp;A</U>. For each fiscal year after 2002,
Budget shall mean the budget substantially in the form of <U>Exhibit&nbsp;A</U> prepared by Senior Executives for such year and approved by the Board of Directors by a
Supermajority Vote at least thirty (30)&nbsp;days prior to the commencement of such fiscal year. If no Budget for a fiscal year is approved by the Board of Directors by a Supermajority Vote at least
thirty (30)&nbsp;days prior to the beginning of a fiscal year, until such time as a budget for such fiscal year is approved as set forth herein, expenses, by category (as such categories are set
forth in <U>Exhibit&nbsp;A</U> hereto), for such fiscal year shall be in the same proportion to sales of the Company for such fiscal year as the proportion of expenses, by
category (as such categories are set forth in <U>Exhibit&nbsp;A</U> hereto), to sales of the Company for the fiscal year immediately preceding such fiscal year. </FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Class&nbsp;I
Directors</U>. Class&nbsp;I Directors shall mean the Directors elected to serve until the 2004 Annual Meeting of Stockholders. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Class&nbsp;II
Directors</U>. Class&nbsp;II Directors shall mean the Directors elected at the 2002 Annual Meeting of Stockholders to serve until the 2005
Annual Meeting of Stockholders. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Class&nbsp;III
Directors</U>. Class&nbsp;III Directors shall mean the Directors elected to serve until the 2003 Annual Meeting of Stockholders. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Code</U>.
Code shall mean the Internal Revenue Code of 1986, as amended. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Common
Stock</U>. Common Stock shall have the meaning set forth in the Recitals of this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Company</U>.
Company shall have the meaning set forth in the first paragraph of this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Company
Directors</U>. Company Directors shall mean (i)&nbsp;the Company's Chief Executive Officer and (ii)&nbsp;the Company's President&#151;Girbaud
Division, or (iii)&nbsp;if such positions are vacant or do not exist, the Chief Executive Officer and the President&#151;Girbaud Division are the same person, or for whatever reason either or
both of the individuals referred to in (i)&nbsp;and (ii)&nbsp;above cannot serve, such officers of the Company as are proposed by a majority of the Directors other than the Satisfactory Nominees. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Company-Nominated
Independent Directors</U>. Company-Nominated Independent Directors shall have the meaning set forth in Section&nbsp;3.01(b) hereof. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Company
Process Agent</U>. Company Process Agent shall have the meaning set forth in Section&nbsp;13 of this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Directors</U>.
Directors shall mean the members of the Board of Directors of the Company. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Exchange
Act</U>. Exchange Act shall mean the Securities Exchange Act of 1934, as amended. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Equity
Rights</U>. Equity Rights shall mean, with respect to any Person, any subscriptions, options, warrants, commitments, purchase rights, preemptive rights or
agreements of any kind (including any stockholders' or voting trust agreements) for the issuance, sale, or voting of, any Equity Securities in such Person. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Equity
Securities</U>. Equity Securities of any Person shall mean any capital stock of any class, partnership interests, membership interests, or other ownership
interests of any kind, in such Person, or securities convertible into shares of capital stock of any class, partnership interests, membership interests, or other ownership interests of any kind, in
such Person. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Extraordinary
Transaction</U>. Extraordinary Transaction means any of the following in any one or more transactions: (i)&nbsp;any merger, consolidation, share
exchange or other business combination of the Company or any Subsidiary; (ii)&nbsp;any sale, lease, pledge, granting of a security interest in, or exchange of substantially all of the assets of the
Company or any Subsidiary; (iii)&nbsp;the disposal of a material amount of assets of the Company or any Subsidiary other than in the normal course of business in a transaction involving a member of
an Investor Group; (iv)&nbsp;any issuance by the Company or any Subsidiary of Equity Rights or Equity Securities to any member of an Investor Group; (v)&nbsp;the adoption of any plan or proposal
for liquidation or dissolution of the Company; (vi)&nbsp;the making or granting by the Company or any Subsidiary of any loan, advance, guarantee, pledge or other financial assistance or tax benefit
to any member of an Investor Group, directly or indirectly; (vii)&nbsp;any other material contract, arrangement or agreement, including without limitation any agreement for the redemption of Stock,
involving the Company or any Subsidiary and a member of an Investor Group; (viii)&nbsp;any termination, nonrenewal or amendment of or waiver of any of the terms of, any agreement between the Company
or any Subsidiary and any member of an Investor Group; (ix)&nbsp;any merger, tender offer, reverse stock split or other transaction that would result in the Company ceasing to be a reporting company
pursuant to </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

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<P><FONT SIZE=2>
Section&nbsp;12 of the Exchange Act or in the Common Stock ceasing to be listed on any of (a)&nbsp;the OTC Bulletin Board, (b)&nbsp;the Nasdaq Stock Market or (c)&nbsp;a national exchange; or
(x)&nbsp;any transaction involving the Company or any Subsidiary (whether or not involving a member of an Investor Group) and including, without limitation, any reclassification of securities
(including a reverse stock split), recapitalization or reorganization of the Company, any self-tender offer or a repurchase of Equity Rights or Equity Securities of the Company by the
Company or any Subsidiary or any other transaction (whether or not with or into or otherwise involving a member of an Investor Group) which in any such case has the effect, directly or indirectly, of
increasing the proportionate Beneficial Ownership by any member of an Investor Group of the outstanding shares of any class of Equity Securities of the Company or any Subsidiary. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Independent
Director</U>. Independent Director shall mean any one (1)&nbsp;of the Independent Directors. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Independent
Directors</U>. Independent Directors shall mean Directors who are (apart from such directorship) independent of, and otherwise not affiliated with,
any Stockholder, the Company or any Subsidiary, or any Affiliate of any of the foregoing, and none of whom shall be a current or former officer, employee, consultant or adviser (financial, legal or
other) or Affiliate of any Stockholder, the Company or any Subsidiary or any Affiliate of any of the foregoing. Notwithstanding the foregoing, the
Independent Directors shall not include any person unless such person has business experience, stature and character that is commensurate with service on the board of a publicly-held
enterprise and would be deemed an independent director for purposes of Nasdaq Marketplace Rule&nbsp;4200(a)(14). Notwithstanding anything in this definition to the contrary, the Company and the
Stockholders agree that each of Jon Hechler and Neal J. Fox shall be deemed to meet the criteria for Independent Directors set forth in this definition. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Initial
Stock</U>. Initial Stock shall have the meaning set forth in the Recitals of this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Investor
Group</U>. Investor Group shall mean (i)&nbsp;the Stockholders, (ii)&nbsp;any Affiliates of Stockholders, and/or (iii)&nbsp;any Person with whom
any of the Stockholders is part of a 13D Group. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Partnership</U>.
Partnership shall mean I.C. Isaacs&nbsp;&amp; Company L.P., a Delaware limited partnership. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Person</U>.
Person shall mean any individual, corporation, partnership, limited liability company, association, joint venture or trust. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Preferred
Stock</U>. Preferred Stock shall have the meaning set forth in the Recitals of this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Process
Agent</U>. Process Agent shall have the meaning set forth in Section&nbsp;13 of this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Quarterly
Payment Amounts</U>. Quarterly Payment Amounts shall have the meaning set forth for such term in the Subordinated Secured Promissory Note. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Quarterly
Payment Dates</U>. Quarterly Payment Dates shall have the meaning set forth for such term in the Subordinated Secured Promissory Note. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>SEC</U>.
SEC shall mean the U.S. Securities and Exchange Commission. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Satisfactory
Nominee</U>. Satisfactory Nominee shall mean a person who is (i)&nbsp;a Stockholder Director or (ii)&nbsp;a Stockholder-Nominated Independent
Director. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Securities
Act</U>. Securities Act shall mean the Securities Act of 1933, as amended. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Senior
Executives</U>. Senior Executives shall mean the following executive officers of the Company only: (i)&nbsp;the President and the Chief Executive
Officer, (ii)&nbsp;the Chief Financial Officer and (iii)&nbsp;the President&#151;Girbaud Division. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Senior
Executive Employment Agreements</U>. Senior Executive Employment Agreements shall mean (i)&nbsp;that certain Executive Employment Agreement by and
between Robert J. Arnot and the Partnership, and, for the limited purposes set forth therein, the Company, dated as of April&nbsp;17, 2002; (ii)&nbsp;that certain Executive Employment Agreement by
and between Daniel Gladstone and the Partnership and, for the limited purposes set forth therein, the Company, dated as of April&nbsp;17, 2002; and (iii)&nbsp;that certain Executive Employment
Agreement by and between Eugene C. Wielepski and the Partnership and, for the limited purposes set forth therein, the Company, dated as of April&nbsp;17, 2002. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Stock</U>.
Stock shall mean the Initial Stock, the Subsequently Acquired Stock and any Equity Securities of the Company or any of its successors or assigns
hereinafter issued or paid, directly or indirectly, in respect of the Initial Stock and/or the Subsequently Acquired Stock pursuant to the exercise of any conversion rights, any stock split, stock
dividend, recapitalization, merger, share exchange or otherwise. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Stockholder</U>.
Stockholder shall have the meaning set forth in the first paragraph of this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Stockholder
Director</U>. Stockholder Director shall mean any Director who is (a)&nbsp;a Stockholder (if such Stockholder is an individual), (b)&nbsp;any
person who is a current or former officer, employee, partner, owner, consultant or advisor (financial, legal or other) or Affiliate of any Stockholder, and (c)&nbsp;any other person proposed by a
Stockholder who is not a Stockholder-Nominated Independent Director and who, in the case of (a), (b)&nbsp;or (c), at the time of nomination or appointment to the Board of Directors shall have been
satisfactory to the Board of Directors, as determined in its exercise of its fiduciary duties to the stockholders of the Company. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Stockholder-Nominated
Independent Director</U>. Stockholder-Nominated Independent Director shall have the meaning set forth in Section&nbsp;3.01(b) hereof. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Stockholders</U>.
Stockholders shall have the meaning set forth in the first paragraph of this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Subordinated
Secured Promissory Note</U>. Subordinated Secured Promissory Note shall mean the Amended and Restated Subordinated Secured Promissory Note of the
Company dated as of May&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2002 made payable to the order of Textile Investment and having an original principal amount of Six Million Five Hundred Fifty-Seven Thousand Nine
Hundred
Eight and 53/100 Dollars ($6,557,908.53). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Subsequently
Acquired Stock</U>. Subsequently Acquired Stock shall have the meaning set forth in the Recitals of this Agreement. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Subsidiary</U>.
Subsidiary shall mean any Person of which more than fifty percent (50%) of the outstanding Equity Securities having voting power generally in the
election of directors is Beneficially Owned, directly or indirectly, by the Company, and shall include, without limitation, the Partnership. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Supermajority
Vote</U>. Supermajority Vote shall mean the affirmative vote of a number of Directors equal to at least two-thirds (<SUP>2</SUP>/<SMALL>3</SMALL>)
of the total number of seats on the Board of Directors (including any seats that are, at the time of such vote, vacant). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>13D
Group</U>. 13D Group shall mean any group of Persons who, with respect to the acquiring, holding, voting or disposing of Voting Securities would, assuming
ownership of the requisite percentage thereof, be required under Section&nbsp;13(d) of the Exchange Act and the rules and regulations promulgated thereunder to file&nbsp;a statement on
Schedule&nbsp;13D with the SEC as a "person" within the meaning of Section&nbsp;13(d)(3) of the Exchange Act, or who would be considered a "person" under Section&nbsp;13(g)(3) of the Exchange
Act. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>382
Affiliate</U>. 382 Affiliate shall have the meaning set forth in Section&nbsp;2.01 hereof. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>2002
Annual Meeting of Stockholders</U>. 2002 Annual Meeting of Stockholders shall mean the 2002 annual meeting of stockholders of the Company and any
adjournments or postponements thereof. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Transfer</U>.
Transfer shall mean to sell, assign, pledge, grant a security interest in, hypothecate or otherwise to transfer, voluntarily or involuntarily, by
operation of law or otherwise. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Vote
of the Independent Directors</U>. Vote of the Independent Directors shall mean the affirmative vote of at least a majority of the Independent Directors,
provided that such affirmative vote of at least a majority of the Independent Directors shall not constitute a Vote of the Independent Directors unless
(a)&nbsp;such affirmative vote of at least a majority of the Independent Directors includes the affirmative vote of not fewer than one (1)&nbsp;Independent Director who is not a Satisfactory
Nominee, and (b)&nbsp;at the time of such vote, there shall be no fewer than two (2)&nbsp;Independent Directors who are not Satisfactory Nominees; provided that preceding clause&nbsp;(b) of this
definition shall not be applicable with respect to a vote taken when one (1)&nbsp;Company-Nominated Independent Director position is vacant if such position shall have been vacant for a period of
more than thirty (30)&nbsp;consecutive days without a replacement Company-Nominated Independent Director having been proposed as a nominee to fill such vacant position of Company-Nominated
Independent Director in accordance with Section&nbsp;3.01(b) hereof. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Voting
Securities</U>. Voting Securities shall mean any outstanding securities or other interests entitling the holder thereof to vote generally in the election
of directors or managers of a Person. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><U>RESTRICTIONS ON TRANSFERS AND ACQUISITIONS</U>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.01.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><U>Restrictions on Transfer.</U>&nbsp;&nbsp;&nbsp;&nbsp;No Stockholder may Transfer any interest in the
Stock except to (i)&nbsp;the Company, (ii)&nbsp;an Affiliate of such Stockholder, (iii)&nbsp;any Person pursuant to Rule&nbsp;144 promulgated under the Securities Act, provided that no such
Transfers under this clause&nbsp;(iii) are made to any Person that has (together with its Affiliates and any Persons that are, together with such Person and/or any of its Affiliates, part of any 13D
Group, after giving effect to such Transfer) Beneficial Ownership of Equity Securities representing more than 5% of the total Equity Securities of the Company, or (iv)&nbsp;any Person pursuant to an
exemption to the registration requirements of the Securities Act, provided that the approval requirements of Section&nbsp;3.05 hereof are satisfied; provided further that the restrictions contained
in this Agreement shall continue to be applicable to the Stock following any transfer pursuant to (ii)&nbsp;or (iv)&nbsp;above, and the transferees of any Stock pursuant to (ii)&nbsp;and
(iv)&nbsp;above shall have executed and delivered to the Company an Instrument of Accession substantially in the form attached hereto as <U>Exhibit&nbsp;B</U>.
Notwithstanding the foregoing, from and after the date hereof and to and including November&nbsp;14, 2004, neither the Stockholders nor any other Person(s) the ownership of securities by which would
be attributable to the Stockholders for purposes of applying Section&nbsp;382 of the Code (a "</FONT><FONT SIZE=2><B>382 Affiliate</B></FONT><FONT SIZE=2>"), shall Transfer, directly or indirectly,
any Equity Security or Equity Rights of the Company if such Transfer, together with all other acquisitions and/or dispositions of Equity Securities or Equity Rights of the Company prior to and/or
subsequent to the date hereof involving any one or more of (i)&nbsp;Textile Investment, (ii)&nbsp;W&uuml;rzburg, (iii)&nbsp;any 382 Affiliate, and (iv)&nbsp;any other party (to the
extent that the relevant acquisition or disposition involving such other party is actually known to the Stockholders or Latitude Licensing Corp. or is reported pursuant to the Exchange Act), would
result in an "ownership change" within the meaning of Section&nbsp;382 of the Code. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.02.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><U>Transfers in Breach of this Agreement.</U>&nbsp;&nbsp;&nbsp;&nbsp;In the event of any Transfer of Stock
in breach of this Agreement, commencing immediately upon the time of such attempted Transfer, (a)&nbsp;such Transfer shall be void and of no effect, (b)&nbsp;no dividend of any kind or any
distribution pursuant to any liquidation, redemption or otherwise shall be paid by the Company to the purported transferee in respect of such Stock (all such rights to payment by the transferring
Stockholder and/or the purported transferee being deemed waived), and (c)&nbsp;neither the transferring Stockholder nor the purported transferee shall be entitled to exercise any such rights with
respect to such Stock until such Transfer in breach of this Agreement has been rescinded. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>5</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.03</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><U>RESTRICTIONS ON ACQUISITIONS</U>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From
and after the date hereof and to and including November&nbsp;14, 2004, neither the Stockholders nor any 382 Affiliate, shall acquire, directly or indirectly, any Equity Securities
or Equity Rights of the Company if such acquisition, together with all other acquisitions and/or dispositions of Equity Securities or Equity Rights of the Company prior to and/or subsequent to the
date hereof involving any one or more of (i)&nbsp;Textile Investment, (ii)&nbsp;W&uuml;rzburg, (iii)&nbsp;any 382 Affiliate, and (iv)&nbsp;any other party (to the extent that the
relevant acquisition or disposition involving such other party is actually known to the Stockholders or Latitude Licensing Corp. or is reported pursuant to the Exchange Act), would result in an
"ownership change" within the meaning of Section&nbsp;382 of the Code. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><U>VOTING PROVISIONS</U>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.01.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><U>Nomination of Satisfactory Nominees.</U>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;At all times during the term
of this Agreement, the Company and the Stockholders shall use their best efforts to cause the composition of the Board of Directors to reflect the following proportionate representation of Stockholder
Directors, Company Directors and Independent Directors and to cause the Satisfactory Nominees to be apportioned as evenly as possible among the Class&nbsp;I Directors, Class&nbsp;II Directors and
Class&nbsp;III Directors: </FONT></P>

<UL>

<P><FONT SIZE=2>Three
(3)&nbsp;Stockholder Directors<BR>
Two (2)&nbsp;Company Directors<BR>
Four (4)&nbsp;Independent Directors </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;At
each annual meeting of stockholders of the Company at which the term of any Independent Director is to expire and at any time that a vacancy of an Independent
Director on the Board of Directors is to be filled, the identity of the person nominated by the Company to stand for election to the Board of Directors or to be appointed to fill such vacancy, as the
case may be, shall be determined in the following manner. If the term of any Independent Director initially proposed by the Stockholders or, thereafter, of any Independent Director proposed by the
committee referred to in this sentence (each, a "Stockholder-Nominated Independent Director" and, collectively, the "Stockholder-Nominated Independent Directors"), expires or such position on the
Board of Directors becomes vacant, a committee of Directors, a minority of whom shall consist of Directors other than Satisfactory Nominees, shall propose to the Board of Directors the nominee to
serve as an Independent Director on the slate to be recommended by the Board of Directors to fill such vacancy. If the term of any Independent Director initially proposed by the Senior Executives or,
thereafter, of any Independent Director proposed by the committee referred to in this sentence (each, a "Company-Nominated
Independent Director" and, collectively, the "Company-Nominated Independent Directors"), expires or such position on the Board of Directors becomes vacant, a committee of Directors, a minority of whom
shall consist of Directors who are Satisfactory Nominees, shall propose to the Board of Directors the nominee to serve as an Independent Director on the slate to be recommended by the Board of
Directors to fill such vacancy. The Board of Directors shall approve the Independent Directors proposed in accordance with the preceding two (2)&nbsp;sentences unless the Board of Directors
determines that to do so would constitute a breach of its fiduciary obligations to the Company's stockholders. For purposes of this Agreement, Neal J. Fox and Jon Hechler (assuming he was elected to
the Board of Directors at the 2002 Annual Meeting of Stockholders) shall be deemed to be Independent Directors initially proposed by the Senior Executives. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;For
purposes of this Agreement, (i)&nbsp;the Company shall be considered to have used its "best efforts," as required in Subsection (a), if it causes each Satisfactory
Nominee and each Company Director whose class then stands for election to be included in the slate of nominees recommended by the Board of Directors to the Company's stockholders for election as
directors and uses all reasonable efforts to cause the election of such Satisfactory Nominees and Company Nominees, including the solicitation of proxies in favor of the election of such persons, and
(ii)&nbsp;the </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>6</FONT></P>

<HR NOSHADE>
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<A NAME="page_mm1971_1_7"> </A>
<UL>
<BR>

<P><FONT SIZE=2>
Stockholders shall be considered to have used their "best efforts," as required in Subsection (a)&nbsp;above, if in each election of Directors they vote the Stock in favor of the Stockholder
Directors, the Company Directors and the Independent Directors. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.02</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><U>Declassification of the Board of Directors.</U>&nbsp;&nbsp;&nbsp;&nbsp;The Company shall include in its
proxy statement for the annual meeting of stockholders to be held in 2003 a proposal that the Amended and Restated Certificate of Incorporation of the Company be amended to declassify the Board of
Directors and shall recommend to the stockholders of the Company that such proposal be approved. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.03.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><U>Committees.</U>&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors will not establish any committee
authorized to exercise the power of the Board of Directors unless (i)&nbsp;the Directors who are not Satisfactory Nominees are granted representation on such committee consistent with the
proportions of the total number of Directors who are not Satisfactory Nominees to the total number of Directors as described in Section&nbsp;3.01(a) and (b)&nbsp;hereof, or (ii)&nbsp;in the case
of the Audit Committee and Compensation Committee, such committees consist of equal numbers of Stockholder-Nominated Independent Directors and Company-Nominated Independent Directors. A committee of
five (5)&nbsp;Directors having as its members two (2)&nbsp;Directors who are not Satisfactory Nominees and three (3)&nbsp;Directors who are Satisfactory Nominees shall be deemed to satisfy the
requirements of clause&nbsp;(i) of the preceeding sentence. The Board of Directors shall not establish or employ committees as a means designed to circumvent the purposes of this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.04</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><U>Voting Provisions.</U>&nbsp;&nbsp;&nbsp;&nbsp;Except for any Extraordinary Transaction approved by a Vote
of the Independent Directors pursuant to Section&nbsp;3.05 hereof, the Company shall not take, or cause or permit any Subsidiary to take, any of the following actions without approval by the Board
of Directors by a Supermajority Vote: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;the
creation of any new Subsidiary which is in any way advantageous or preferential to any member of an Investor Group; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;the
entering into by the Company or any of its Subsidiaries of any joint ventures, partnerships or profit sharing agreements; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;the
guarantee by the Company or any Subsidiary of the debts or obligations of any entity other than a wholly-owned Subsidiary; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;the
entering into by the Company or any Subsidiary of any new supplier or distribution agreements; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;any
media expenditures or sponsorships by the Company or any Subsidiary inconsistent with past practice; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;any
material change to, or deviations from, the Budget; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;the
hiring and termination of any of the Senior Executives; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;the
loaning or advancing of money by, or bank overdrafts on any account of, the Company or any Subsidiary in excess of $750,000 outstanding at any time; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;the
use of cash or other assets of the Company or any Subsidiary, or the incurring of any liability by the Company or any Subsidiary, in connection with the opening of
any retail stores, outlets or other retail distribution outlets; provided, however, that nothing in this subsection shall prevent the Company or any Subsidiary from entering into franchise agreements
allowing franchisees to open retail stores or outlets using trademarks owned by or licensed to the Company or any Subsidiary (to the extent that such franchise agreements do not result in any
significant cost to, or the incurrence of liability by, the Company or any Subsidiary); </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>7</FONT></P>

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<UL>
<BR>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;the
incurring by the Company or the Partnership of any costs or liabilities, including without limitation liabilities pursuant to any pledge, granting of a security
interest, or guaranty, not directly related to the apparel business of the Company or the Partnership; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;any
prepayment of the Subordinated Secured Promissory Note; or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;the
making of any quarterly installment of principal and interest on the Subordinated Secured Promissory Note in the Quarterly Payment Amounts on the corresponding
Quarterly Payment Dates set forth in the Subordinated Secured Promissory Note unless the Partnership has an average of at least Two Million Five Hundred Thousand Dollars ($2,500,000) of availability
under its line of credit from Congress Financial Corporation (including its successors and assigns) during the forty-five (45)&nbsp;day period immediately prior to such Quarterly Payment
Date. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.05</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><U>Special Approval of Extraordinary Transaction.</U>&nbsp;&nbsp;&nbsp;&nbsp;The Company shall not engage
in, and shall not cause or permit any Subsidiary to engage in, any Extraordinary Transaction unless it is determined by a Vote of the Independent Directors that such Extraordinary Transaction is fair
to the public stockholders of the Company without taking into account any effect of the stock ownership of the Stockholders and their Affiliates. In making such determination, the Independent
Directors shall be entitled, in their sole discretion and at the expense of the Company, to retain the services of independent legal counsel and independent financial advisors to advise them regarding
their fiduciary duties and the overall fairness of the transaction. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.06</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><U>Covenants of Stockholders.</U>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;Except
by virtue of the Stockholders' representation on the Board, neither the Stockholders nor any of their Affiliates shall act, alone or in concert with others, to
seek to control the day-to-day management of the Company or Board of Directors. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;Neither
the Stockholders nor any of their Affiliates shall, either alone or in concert with others, (i)&nbsp;initiate or propose any stockholder proposal or
stockholder nominations or make, or in any way participate in, directly or indirectly, any "solicitation" of "proxies" to vote, or seek to influence any Person with respect to the voting of, any
voting securities, or become a "participant" in a "solicitation" (as such terms are defined in Regulation&nbsp;14A promulgated under the Exchange Act, as in effect as of the date hereof) in
contravention of any of the provisions of this Agreement; (ii)&nbsp;otherwise act in contravention of the purposes of this Agreement or (iii)&nbsp;advise, assist or encourage or finance other
Persons in connection with any of the foregoing types of activities. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><U>LEGENDS ON CERTIFICATES</U>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
certificates evidencing the Stock held by the Stockholders shall bear any legends required by federal or state securities law and the following legend required by Section&nbsp;202
(a)&nbsp;of the Delaware General Corporation Law: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"The
shares represented by this Certificate are subject to a Stockholders' Agreement dated as of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2002, a copy
of which is on file at the principal office of the Company
and will be furnished to any prospective purchaser on request. Such Stockholders' Agreement provides, among other things, for certain restrictions on the sale, transfer, pledge, granting of a security
interest, hypothecation or disposition of the shares represented by this Certificate." </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><U>BENEFIT</U>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Agreement shall be binding upon and shall operate for the benefit of the parties hereto and their respective successors and assigns. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>8</FONT></P>

<HR NOSHADE>
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<A NAME="page_mm1971_1_9"> </A>
<BR>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><U>INVALIDITY OF ANY PROVISION</U>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
invalidity or unenforceability of any provision of this Agreement shall not affect the other provisions hereof, and the Agreement shall be construed in all respects as if such
invalid or unenforceable provisions were omitted, provided that the parties shall negotiate in good faith to replace the invalid provision with a valid provision reflecting the same balance of
economic interests. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><U>MODIFICATION OF AGREEMENT</U>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
modification, amendment or waiver of any of the provisions of this Agreement shall be valid unless approved by a majority of the Board of Directors (excluding for this purpose any
Director who is a Satisfactory Nominee) and made in writing and signed by the Company and Stockholders owning, in the aggregate, a majority of the Stock subject to this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><U>FURTHER ACTION</U>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
approval by the Board of Directors, a copy of this Agreement shall be made a part of the minutes of the Company. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><U>ATTORNEY'S FEES AND COSTS</U>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
any action at law or in equity (including any arbitration proceeding under Section&nbsp;11 hereof) is necessary to enforce or interpret the terms of this Agreement, the prevailing
party shall be entitled to reasonable attorneys' fees, costs, and necessary disbursements, in addition to any other relief to which it may be entitled. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><U>APPLICABLE LAW</U>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Agreement shall be construed in accordance with the laws of the State of Delaware without the application of principles of conflicts of law. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><U>ARBITRATION OF DISPUTES</U>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;Any
dispute regarding any aspect of this Agreement or any act which allegedly has or would violate any provision of this Agreement will be submitted to binding
arbitration. Such arbitration shall be conducted before an arbitrator sitting in New York, New York or in such other location as may be agreed upon by the Company and the Stockholders, in accordance
with the Commercial Arbitration Rules of the American Arbitration Association then in effect. Judgment may be entered on the award of the arbitrator in any court having competent jurisdiction. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;The
arbitration provision set forth in clause&nbsp;(a) of this Section shall not restrict or otherwise affect the right of any party to this Agreement to bring suit
for specific performance of this Agreement. The parties agree that irreparable damage would occur in the event that any of the provisions of Articles 2 or 3 of this Agreement was not performed in
accordance with its specific terms or was otherwise breached. Each party agrees that, in the event of any breach or threatened breach by such party of any covenant or obligation contained in this
Agreement, the other parties shall be entitled (in addition to any other remedy that may be available to them, including monetary damages) to seek and obtain (i)&nbsp;a decree or order of specific
performance to enforce the observance and performance of such covenant or obligation, and (ii)&nbsp;an injunction restraining such breach or threatened breach. The parties further agree that neither
the Company nor any other Person shall be required to obtain, furnish or post any bond or similar instrument in connection with or as a condition to obtaining any remedy referred to in this
<U>Section&nbsp;11</U>, and irrevocably waive any rights they may have to require the obtaining, furnishing or posting of any such bond or similar instrument. </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>9</FONT></P>

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<UL>
<BR>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>12.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><U>JURISDICTION; VENUE</U></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(A)&nbsp;&nbsp;Each party to this Agreement hereby irrevocably consents to the exclusive jurisdiction of the Supreme Court of the State of New York for the
County of New York and/or United States District Court for the Southern District of New York (collectively, the "New York Courts" and each a "New York Court") in connection with any and all claims
based upon or arising out of this Agreement or the matters or transactions contemplated herein, and irrevocably agrees that all claims in respect of any such matters or transactions may be heard in
either of such New York Courts.  </B></FONT></P>

<P><FONT SIZE=2><B> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;Each party to this Agreement hereby waives any objection to jurisdiction and venue of any such claim brought, or action instituted, hereunder in any New York Court and
further agrees not to assert (i)&nbsp;any defense based on the lack of jurisdiction or venue in any New York Court, or (ii)&nbsp;any defense of improper venue or inconvenient forum in any New York
Court.  </B></FONT></P>

<P><FONT SIZE=2><B> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;Each party to this Agreement hereby waives any right of jurisdiction on account of the place of such party's residence, or domicile, or on account of such party's
place
of incorporation, formation or organization.  </B></FONT></P>

<P><FONT SIZE=2><B> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)&nbsp;&nbsp;Each party to this Agreement hereby acknowledges and agrees that any forum other than a New York Court is an inconvenient forum and that a suit brought by any party
against any other party in any court other than a New York Court should be transferred to a New York Court.  </B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>13.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><U>SERVICE OF PROCESS; TEXTILE INVESTMENT;
W&Uuml;RZBURG</U></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(a)&nbsp;&nbsp;Textile Investment hereby irrevocably and unconditionally appoints Steven D. Dreyer, Esquire of Hall Dickler Kent Goldstein&nbsp;&amp; Wood, LLP,
currently located at 909 Third Avenue, 27<SUP>th</SUP> Floor, New York, New York 10022 (the "Process Agent") as its agent to receive on behalf of Textile Investment service of copies of the summons
and complaint and any other process which may be served in any action or proceeding within the scope of Section&nbsp;11 or 12 of this Agreement in any New York Court and agrees promptly to appoint a
successor Process Agent in the City of New York (which appointment such successor Process Agent shall accept in writing) prior to the termination for any reason of the appointment of the Process Agent
(or the termination of any successor Process Agent). In any such action or proceeding in any New York Court, such service may be made on Textile Investment by delivering a copy of such process to
Textile Investment in care of the Process Agent at the Process Agent's above address and by depositing a copy of such process in the mails (certified or registered, if
available), or by overnight courier, addressed to Textile Investment at its address for notices in this Agreement (such service to be effective upon receipt by the Process Agent, and the depositing of
such service in the mails (or delivery thereof to such overnight courier)). Textile Investment hereby irrevocably and unconditionally authorizes and directs the Process Agent to accept such service on
Textile Investment's behalf. As an alternative method of service, Textile Investment hereby irrevocably and unconditionally consents to the service of any and all process in any such action or
proceeding in any New York Court by mailing of copies of such process to Textile Investment by mail (certified or registered, if available), or by overnight courier, at its address for notices in this
Agreement. Textile Investment agrees that, to the fullest extent permitted by applicable law, a final judgment in any such action or proceeding in any New York Court shall be conclusive and may be
enforced in any other jurisdiction by suit on the judgment or in any other manner provided by law. Textile Investment represents and warrants to the other parties to this Agreement that the Process
Agent has accepted its appointment as process agent for Textile Investment as herein described, and Textile Investment covenants to give the other parties to this Agreement prompt written notice of
(x)&nbsp;any change in the name or address of the Process Agent (or any successor Process Agent) and (y)&nbsp;the name and address of any successor Process Agent.  </B></FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>10</FONT></P>

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<UL>

<P><FONT SIZE=2><B> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;W&uuml;rzburg hereby irrevocably and unconditionally appoints the Process Agent as its agent to receive on behalf of W&uuml;rzburg service of copies
of the summons and complaint and any other process which may be served in any action or proceeding within the scope of Section&nbsp;11 or 12 of this Agreement in any New York Court and agrees
promptly to appoint a successor Process Agent in the City of New York (which appointment such successor Process Agent shall accept in writing) prior to the termination for any reason of the
appointment of the Process Agent (or the termination of any successor Process Agent). In any such action or proceeding in any New York Court, such service may be made on W&uuml;rzburg by
delivering a copy of such process to W&uuml;rzburg in care of the Process Agent at the Process Agent's address and by depositing a copy of such process in the mails (certified or registered,
if available), or by overnight courier, addressed to W&uuml;rzburg at its address for notices in this Agreement (such service to be effective upon receipt by the Process Agent, and the
depositing of such service in the mails (or delivery thereof to such overnight courier)). W&uuml;rzburg hereby irrevocably and unconditionally authorizes and directs the Process Agent to
accept such service on W&uuml;rzburg's behalf. As an alternative method of service, W&uuml;rzburg hereby irrevocably and unconditionally consents to the service of any and all
process in any such action or proceeding in any New York Court by mailing of copies of such process to W&uuml;rzburg by mail (certified or registered, if available), or by overnight courier,
at its address for notices in this Agreement. W&uuml;rzburg agrees that, to the fullest extent permitted by applicable law, a final judgment in any such action or proceeding in any New York
Court shall be conclusive and may be enforced in any other jurisdiction by suit on the judgment or in any other manner provided by law. W&uuml;rzburg represents and warrants to the other
parties to this Agreement that the Process Agent has accepted its appointment as process agent for W&uuml;rzburg as herein described, and W&uuml;rzburg covenants to give the other
parties to this Agreement prompt written notice of (x)&nbsp;any change in the name or address of the Process Agent (or any successor Process Agent) and (y)&nbsp;the name and address of any
successor Process Agent.  </B></FONT></P>

<P><FONT SIZE=2><B> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;The Company hereby irrevocably and unconditionally appoints its registered agent, as specified in its charter, as amended from time to time (the "Company Registered
Agent"), as its agent to receive on behalf of the Company service of copies of the summons and complaint and any other process which may be served in any action or proceeding within the scope of
Section&nbsp;11 or 12 of this Agreement
in any New York Court. In any such action or proceeding in any such New York Court, such service may be made on the Company by delivering a copy of such process to the Company in care of the Company
Registered Agent at the Company Registered Agent's address and by depositing a copy of such process in the mails (certified or registered, if available), or by overnight courier, addressed to the
Company at its address for notices in this Agreement (such service to be effective upon receipt by the Company Registered Agent, and the depositing of such service in the mails (or delivery thereof to
such overnight courier)). The Company hereby irrevocably and unconditionally authorizes and directs the Company Registered Agent to accept such service on the Company's behalf. As an alternative
method of service, the Company hereby irrevocably and unconditionally consents to the service of any and all process in any such action or proceeding in any New York Court by mailing of copies of such
process to the Company by mail (certified or registered, if available), or by overnight courier, at its address for notices in this Agreement. The Company agrees that, to the fullest extent permitted
by applicable law, a final judgment in any such action or proceeding in any New York Court shall be conclusive and may be enforced in any other jurisdiction by suit on the judgment or in any other
manner provided by law. The Company represents and warrants to the other parties to this Agreement that the Company Registered Agent has accepted its appointment as registered agent for the Company as
herein described.  </B></FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>11</FONT></P>

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<BR>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>14.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><U>WAIVER OF
IMMUNITY</U></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>Each party to this Agreement represents, warrants, and agrees that to the extent such party may have or hereafter acquire any right of sovereign or other immunity
from suit, court jurisdiction, attachment in aid of execution of judgment, set-off, execution or other legal process, such party hereby irrevocably and unconditionally waives, to the
fullest extent permitted by law, such right of immunity with respect to its obligations hereunder and with respect to legal proceedings to enforce the same and to enforce any judgment rendered in such
proceedings.</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><U>ENTIRE AGREEMENT</U>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Agreement supersedes all agreements as to the subject matter hereof among the Stockholders and the Company including in each case amendments thereto, previously executed by the
Stockholders and the Company, including without limitation the Company's Shareholders' Agreement dated August&nbsp;9, 1999. This Agreement sets forth all of the provisions, covenants, agreements,
conditions and undertakings between the parties hereto with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements and understandings express or implied, oral or
written as to the subject matter hereof. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><U>NOTICES</U>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless
otherwise specified herein, all notices, requests, demands and other communications to be given under this Agreement shall be in writing and shall be deemed given if
(i)&nbsp;delivered in person, or by United States mail, certified or registered, with return receipt requested, (ii)&nbsp;if sent by telex or facsimile transmission, with a copy mailed on the same
day in the manner provided in (i)&nbsp;above, when transmitted and receipt is confirmed by telephone, or (iii)&nbsp;if otherwise actually delivered: </FONT></P>

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<TABLE WIDTH="76%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="29%"><FONT SIZE=2>TO THE COMPANY:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="69%"><FONT SIZE=2>3840 Bank Street, Baltimore, MD 21224-2522;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="29%"><FONT SIZE=2><BR>
TO ANY STOCKHOLDER:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="69%"><FONT SIZE=2><BR>
As the name and address of such Stockholder appears on the records of the Company;</FONT></TD>
</TR>
</TABLE>
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<P><FONT SIZE=2>or
at such other address as may have been furnished by such person in writing to the other parties. Any such notice, demand or other communication shall be deemed to have been given on the date
actually delivered or as of the date mailed, as the case may be. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><U>TERM OF AGREEMENT</U>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Agreement shall be effective until the earliest to occur of (i)&nbsp;the Stockholders becoming the Beneficial Owners of all of the Equity Securities of the Company;
(ii)&nbsp;liquidation or dissolution of the Company; or (iii)&nbsp;November&nbsp;14, 2004. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>12</FONT></P>

<HR NOSHADE>
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<A NAME="page_mm1971_1_13"> </A>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, the parties hereto have executed and sealed this Agreement as of the day and year first above written. </FONT></P>

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<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="46%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>I.C. ISAACS &amp; COMPANY, INC.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="46%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD COLSPAN=2><BR><HR NOSHADE><FONT SIZE=2> Robert J. Arnot, Chief Executive Officer</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="46%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
STOCKHOLDERS:</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="46%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
TEXTILE INVESTMENT INTERNATIONAL S.A.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="46%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD COLSPAN=2><BR><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="46%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Name:</FONT></TD>
<TD WIDTH="42%"><FONT SIZE=2>Ren&eacute; Faltz</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="46%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Title:</FONT></TD>
<TD WIDTH="42%"><FONT SIZE=2>Managing Director</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="46%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD COLSPAN=2><BR><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="46%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Name:</FONT></TD>
<TD WIDTH="42%"><FONT SIZE=2>Tom Felgen</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="46%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Title:</FONT></TD>
<TD WIDTH="42%"><FONT SIZE=2>Managing Director</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="46%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
W&Uuml;RZBURG HOLDING S.A.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="46%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD COLSPAN=2><BR><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="46%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Name:</FONT></TD>
<TD WIDTH="42%"><FONT SIZE=2>Ren&eacute; Faltz</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="46%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Title:</FONT></TD>
<TD WIDTH="42%"><FONT SIZE=2>Managing Director</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="46%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD COLSPAN=2><BR><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="46%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Name:</FONT></TD>
<TD WIDTH="42%"><FONT SIZE=2>Tom Felgen</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="46%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Title:</FONT></TD>
<TD WIDTH="42%"><FONT SIZE=2>Managing Director</FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>13</FONT></P>

<HR NOSHADE>
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<P ALIGN="CENTER"><FONT SIZE=2><B><U>SCHEDULE A</U></B></FONT></P>

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<TR VALIGN="BOTTOM">
<TH WIDTH="72%" ALIGN="LEFT"><FONT SIZE=1><B>Stockholder<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="25%" ALIGN="CENTER"><FONT SIZE=1><B>No. of Shares of Common Stock</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="72%"><FONT SIZE=2>W&uuml;rzburg Holding S.A.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="25%" ALIGN="RIGHT"><FONT SIZE=2>500,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="72%"><FONT SIZE=2>Textile Investment International S.A.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="25%" ALIGN="RIGHT"><FONT SIZE=2>0</FONT></TD>
</TR>
</TABLE>
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<HR NOSHADE>
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<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<P ALIGN="CENTER"><FONT SIZE=2><B><U>EXHIBIT A</U><BR>
<U>Budget</U>  </B></FONT></P>

<HR NOSHADE>
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<P ALIGN="CENTER"><FONT SIZE=2><B><U>EXHIBIT B</U><BR>
<U>Instrument of Accession</U>  </B></FONT></P>

<P><FONT SIZE=2>The
undersigned,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, in order to become the owner or holder
of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of Common Stock, $.0001 par value per share (the "Shares"), of I.C. Isaacs&nbsp;&amp;
Company,&nbsp;Inc., a Delaware corporation, hereby agrees to become a Stockholder under, and a party to, that certain Stockholders' Agreement, dated as
of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2002 (the
"<U>Stockholder Agreement</U>"), a copy of which is attached hereto. This Instrument of Accession shall become a part of such Stockholders' Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Executed
as of the date set forth below under the laws of the State of Delaware. </FONT></P>

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<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="40%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%"><FONT SIZE=2>Signature:</FONT></TD>
<TD WIDTH="39%"><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="40%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%"><FONT SIZE=2>Address:</FONT></TD>
<TD WIDTH="39%"><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="40%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="39%"><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="40%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="39%"><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="40%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="12%"><FONT SIZE=2><BR>
Date:</FONT></TD>
<TD WIDTH="39%"><BR><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=2><BR>
Accepted:</FONT></TD>
<TD WIDTH="12%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="39%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=2><BR>
I.C. ISAACS &amp; COMPANY, INC.</FONT></TD>
<TD WIDTH="12%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="39%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=2><BR><HR NOSHADE></TD>
<TD WIDTH="39%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2><BR>
Date:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=2><BR><HR NOSHADE></TD>
<TD WIDTH="39%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
</TABLE>
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<HR NOSHADE>
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<!-- TOC_END -->
<P ALIGN="RIGHT"><FONT SIZE=2><A
NAME="mt1971_exhibit_e"> </A>
<A NAME="toc_mt1971_1"> </A>
<BR></FONT><FONT SIZE=2><B><U>EXHIBIT E</U>    <BR>  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="mt1971_amendment_no._4_to_trademark_l__ame02701"> </A>
<A NAME="toc_mt1971_2"> </A></FONT> <FONT SIZE=2><B>AMENDMENT NO. 4<BR>  TO TRADEMARK LICENSE AND TECHNICAL ASSISTANCE AGREEMENT    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Amendment No.&nbsp;4, dated&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2002, is
to the Trademark License and Technical Assistance Agreement dated January&nbsp;15, 1998, by and
between Latitude Licensing Corp. ("Licensor") and I.C. Isaacs&nbsp;&amp; Company L.P. ("Licensee") (the "Agreement"). Previous amendments to the Agreement were made effective on November&nbsp;12,
1998, June&nbsp;21, 2000 and May&nbsp;31, 2001. Capitalized terms used herein have the meaning ascribed to them in the Agreement unless otherwise indicated. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>WHEREAS</B></FONT><FONT SIZE=2>, the parties therefore wish to extend the term and scope of the Agreement and to provide for certain fees as set forth herein. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>NOW, THEREFORE,</B></FONT><FONT SIZE=2> for good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties agree to
amend the Agreement as follows: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>1.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><U>Section&nbsp;2&#151;Term and
Territory</U></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.1
of the Agreement, relating to the term and territory, is hereby amended by adding the following provision as the last sentence: </FONT></P>

<UL>
<UL>

<P><FONT SIZE=2>In
addition, Licensee shall have the option to renew this Agreement for an additional term of four (4)&nbsp;years commencing January&nbsp;1, 2008 and ending December&nbsp;31, 2011. </FONT></P>

</UL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>2.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><U>Section&nbsp;5&#151;Royalties</U></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.2
of the Agreement, is hereby amended by adding the following to the Minimum Royalties table set forth therein: </FONT></P>

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<DIV ALIGN="CENTER"><TABLE WIDTH="80%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="28%" ALIGN="CENTER"><FONT SIZE=1><B>Calendar Year</B></FONT><HR NOSHADE></TH>
<TH WIDTH="33%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="38%" ALIGN="CENTER"><FONT SIZE=1><B>Minimum Royalties</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="CENTER"><FONT SIZE=2>2008</FONT></TD>
<TD WIDTH="33%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="38%" ALIGN="CENTER"><FONT SIZE=2>$3,000,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="CENTER"><FONT SIZE=2>2009</FONT></TD>
<TD WIDTH="33%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="38%" ALIGN="CENTER"><FONT SIZE=2>$3,000,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="CENTER"><FONT SIZE=2>2010</FONT></TD>
<TD WIDTH="33%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="38%" ALIGN="CENTER"><FONT SIZE=2>$3,000,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="CENTER"><FONT SIZE=2>2011</FONT></TD>
<TD WIDTH="33%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="38%" ALIGN="CENTER"><FONT SIZE=2>$3,000,000</FONT></TD>
</TR>
</TABLE></DIV>
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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>3.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><U>Section&nbsp;9&#151;Sales</U></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9
of the Agreement, relating to sales, is hereby amended by adding the following provision as Section&nbsp;9.3: </FONT></P>

<UL>
<UL>

<P><FONT SIZE=2>9.3&nbsp;&nbsp;&nbsp;&nbsp;Licensor
shall retain the services of a consultant or consultants (which may be or include the Designated Representative, as such term is hereinafter defined) (the "Consultants") for
the purpose of assisting Licensee's senior executives with the implementation of this Agreement. The Consultants shall provide such services by way of interaction solely with Licensee's senior
management. The Consultants shall be selected by Licensor subject to the prior approval of the Chief Executive Officer of Licensee. Licensee shall pay the Licensor Consultants' fees (the "Consultants'
Fees") in an aggregate amount of One Hundred Twenty-five Thousand Dollars ($125,000) for calendar year 2002, and One Hundred Fifty Thousand Dollars ($150,000) for each remaining calendar
year under the term of this Agreement; such amounts shall be inclusive of all expenses relating to such Consultants for such calendar year and shall be prorated for any partial year subsequent to
2002. The Consultants' Fees for each year under the term of this Agreement shall be payable in equal installments on the last day of each fiscal quarter of the Company (each March&nbsp;31,
June&nbsp;30, September&nbsp;30 and December&nbsp;31 of any year under the term of this Agreement), beginning on June&nbsp;30, 2002. </FONT></P>

</UL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
purposes of this Section, "Designated Representative" shall mean an individual designated in writing to the Licensee
by&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;as the designated representative of
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;. </FONT></P>

<HR NOSHADE>
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<A NAME="page_mt1971_1_2"> </A>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>4.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><U>Section&nbsp;26&#151;Right of First
Refusal</U></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
first sentence of Section&nbsp;26, relating to the right of first refusal, is hereby deleted and replaced with the following sentence: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Should
Licensor decide, at its initiative or upon an offer from a third party, to introduce, market, import, manufacture and/or distribute, or cause to be introduced, marketed, imported
or manufactured, within the Territory, any of the following additional products: (i)&nbsp;Men's Active, (ii)&nbsp;Boys', Women's and Girls' Jeans, Casual or Active collections, and
(iii)&nbsp;Underwear, Licensee shall have a right of First Refusal for a license for these products, with terms and royalty rates as offered by the third party or otherwise to be discussed and
agreed upon at that time. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>5.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><U>Section&nbsp;32&#151;Licensor's Brand
Strategy</U></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the end of Section&nbsp;31 of the Agreement, the following shall be added to the Agreement as a new section: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;32.
Licensor's Brand Strategy. Licensor is responsible for, and will control the brand's strategic positioning and the voice of the brand. Licensor will provide
communication guidelines to Licensee to help in developing communication execution. Licensee shall submit to Licensor for review, prior to submission to the advertising agency, any campaign briefing
materials, and shall consult with Licensor before accepting any creative response to such briefing materials. The Trademarks, the visual representation, and the image of the Products shall be subject
to written approval by Licensor (which shall not be unreasonably withheld) prior to public distribution or display in any medium; provided, however, that any advertising or promotional materials
supplied by Licensor will not require its approval prior to dissemination by Licensee, except as otherwise provided in this Agreement. All advertising campaigns in the Territory shall correspond to
the international advertising theme and image worldwide. Licensor will make available to Licensee all advertising campaigns produced worldwide. The Licensee shall cause its advertising staff and/or
agency to consult with Licensor's designated advertising agency and/or creative staff, at least twice a year, for a review of Product image and with a view toward coordinating and enhancing worldwide
advertising strategy. Approved
advertising and promotional materials shall not be disapproved by Licensor for use within the same campaign. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>6.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><U>Effective Date</U></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Amendment No.&nbsp;4 shall be effective as of the date first written above. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>7.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><U>Full Force and Effect</U></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as expressly amended by this Amendment No.&nbsp;4, the Agreement shall continue in full force and effect. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>IN WITNESS WHEREOF</B></FONT><FONT SIZE=2>, the parties, by their duly authorized representatives, have executed this Amendment No.&nbsp;4 as of the dates
indicated below. </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=2><B>LATITUDE LICENSING CORP.</B></FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><B>I.C. ISAACS &amp; COMPANY L.P.</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="8%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="38%"><BR><HR NOSHADE></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="38%"><BR><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="8%"><FONT SIZE=2>Name:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="38%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Name:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="38%"><FONT SIZE=2>Robert J. Arnot</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="8%"><FONT SIZE=2>Title:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="38%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Title:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="38%"><FONT SIZE=2>Chief Executive Officer</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="8%"><FONT SIZE=2>Date:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="38%"><HR NOSHADE></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Date:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="38%"><HR NOSHADE></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

<HR NOSHADE>
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<P ALIGN="RIGHT"><FONT SIZE=2><A
NAME="mv1971_exhibit_f"> </A>
<A NAME="toc_mv1971_1"> </A>
<BR></FONT><FONT SIZE=2><B><U>EXHIBIT F</U>    <BR>  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="mv1971_amendment_no._6_to_trademark_l__ame03698"> </A>
<A NAME="toc_mv1971_2"> </A></FONT> <FONT SIZE=2><B>AMENDMENT NO. 6<BR>  TO TRADEMARK LICENSE AND TECHNICAL ASSISTANCE<BR>  AGREEMENT FOR WOMEN'S COLLECTIONS    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Amendment No.&nbsp;6, dated&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2002, is
to the Trademark License and Technical Assistance Agreement For Women's Collections dated
March&nbsp;4, 1998 by and between Latitude Licensing Corp. ("Licensors") and I.C. Isaacs&nbsp;&amp; Company L.P. ("Licensee") covering Women's Products (the "Agreement"). Previous amendments to the
Agreement were made effective on June&nbsp;18, 1998, November&nbsp;12, 1998, December&nbsp;23, 1998, August&nbsp;2, 1999 and June&nbsp;21, 2000. Capitalized terms used herein have the
meaning ascribed to them in the Agreement unless otherwise indicated. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>WHEREAS</B></FONT><FONT SIZE=2>, the parties wish to extend the term of the Agreement and to provide for certain fees as set forth herein. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>NOW, THEREFORE,</B></FONT><FONT SIZE=2> for good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties agree to
amend the Agreement as follows: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>1.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><U>Section&nbsp;2&#151;Term and
Territory</U></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.1
of the Agreement, relating to the term and territory, is hereby amended by adding the following provision as the last sentence: </FONT></P>

<UL>
<UL>

<P><FONT SIZE=2>In
addition, Licensee shall have the option to renew this Agreement for an additional term of four (4)&nbsp;years commencing January&nbsp;1, 2008 and ending December&nbsp;31, 2011. </FONT></P>

</UL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>2.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><U>Section&nbsp;4&#151;Royalties</U></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.2
of the Agreement, is hereby amended by adding the following to the Minimum Royalties table set forth therein: </FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="80%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="28%" ALIGN="CENTER"><FONT SIZE=1><B>Calendar Year</B></FONT><HR NOSHADE></TH>
<TH WIDTH="33%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="38%" ALIGN="CENTER"><FONT SIZE=1><B>Minimum Royalties</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="CENTER"><FONT SIZE=2>2008</FONT></TD>
<TD WIDTH="33%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="38%" ALIGN="CENTER"><FONT SIZE=2>$1,500,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="CENTER"><FONT SIZE=2>2009</FONT></TD>
<TD WIDTH="33%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="38%" ALIGN="CENTER"><FONT SIZE=2>$1,500,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="CENTER"><FONT SIZE=2>2010</FONT></TD>
<TD WIDTH="33%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="38%" ALIGN="CENTER"><FONT SIZE=2>$1,500,000</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="28%" ALIGN="CENTER"><FONT SIZE=2>2011</FONT></TD>
<TD WIDTH="33%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="38%" ALIGN="CENTER"><FONT SIZE=2>$1,500,000</FONT></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>3.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><U>Section&nbsp;9&#151;Sales</U></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9
of the Agreement, relating to sales, is hereby amended by adding the following provision as Section&nbsp;9.3: </FONT></P>

<UL>
<UL>

<P><FONT SIZE=2>9.3&nbsp;&nbsp;&nbsp;&nbsp;3&nbsp;&nbsp;&nbsp;&nbsp;Licensor
shall retain the services of a consultant or consultants (which may be or include the Designated Representative, as such term is hereinafter defined) (the
"Consultants") for the purpose of assisting Licensee's senior executives with the implementation of this Agreement. The Consultants shall provide such services by way of interaction solely with
Licensee's senior management. The Consultants shall be selected by Licensor subject to the prior approval of the Chief Executive Officer of Licensee. Licensee shall pay the Licensor Consultants' fees
(the "Consultants' Fees") in an aggregate amount of One Hundred Twenty-five Thousand Dollars ($125,000) for calendar year 2002, and One Hundred Fifty Thousand Dollars ($150,000) for each
remaining calendar year under the term of this Agreement; such amounts shall be inclusive of all expenses relating to such Consultants for such calendar year and shall be prorated for any partial year
subsequent to 2002. The Consultants' Fees for each year under the term of this Agreement shall be payable in equal installments on the last day of each fiscal quarter of the Company (each
March&nbsp;31, June&nbsp;30, September&nbsp;30 and December&nbsp;31 of any year under the term of this Agreement), beginning on June&nbsp;30, 2002. </FONT></P>

</UL>
</UL>
<HR NOSHADE>
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<A NAME="page_mv1971_1_2"> </A>
<UL>
<UL>
</UL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
purposes of this Section, "Designated Representative" shall mean an individual designated in writing to the Licensee
by&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;as the designated representative of
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>4.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><U>Effective Date</U></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Amendment No.&nbsp;6 shall be effective as of the date first written above. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>5.</B></FONT><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;</I></FONT><FONT SIZE=2><B><U>Full Force and Effect</U></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as expressly amended by this Amendment No.&nbsp;6, the Agreement shall continue in full force and effect. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>IN WITNESS WHEREOF</B></FONT><FONT SIZE=2>, the parties, by their duly authorized representatives, have executed this Amendment No.&nbsp;6 as of the dates
indicated below. </FONT></P>

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<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=2><B>LATITUDE LICENSING CORP.</B></FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><B>I.C. ISAACS &amp; COMPANY L.P.</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="8%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="38%"><BR><HR NOSHADE></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="38%"><BR><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="8%"><FONT SIZE=2>Name:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="38%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Name:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="38%"><FONT SIZE=2>Robert J. Arnot</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="8%"><FONT SIZE=2>Title:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="38%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Title:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="38%"><FONT SIZE=2>Chief Executive Officer</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="8%"><FONT SIZE=2>Date:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="38%"><HR NOSHADE></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Date:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="38%"><HR NOSHADE></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

<HR NOSHADE>
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<!-- TOC_END -->
<P ALIGN="RIGHT"><FONT SIZE=2><A
NAME="mx1971_exhibit_g"> </A>
<A NAME="toc_mx1971_1"> </A>
<BR></FONT><FONT SIZE=2><B><U>EXHIBIT G</U>    <BR>  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="mx1971_i.c._isaacs___company,_inc._am__i.c03077"> </A>
<A NAME="toc_mx1971_2"> </A>
<BR></FONT><FONT SIZE=2><B>I.C. ISAACS&nbsp;&amp; COMPANY,&nbsp;INC.<BR>  AMENDED AND RESTATED<BR>  OMNIBUS STOCK PLAN    <BR>    <BR>    (As amended
through&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2002)    <BR>  </B></FONT></P>

<P><FONT SIZE=2><B>1.&nbsp;&nbsp;&nbsp;&nbsp;Establishment, Purpose and Types of Awards  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I.C. Isaacs&nbsp;&amp; Company,&nbsp;Inc., a Delaware corporation (the "Company"), established and maintains the I.C. Isaacs&nbsp;&amp; Company,&nbsp;Inc. 1997
Omnibus Stock Plan which is hereby amended and restated in its entirety to be known hereafter as the I.C. Isaacs&nbsp;&amp; Company,&nbsp;Inc. Amended and Restated Omnibus Stock Plan (the "Plan"). The
purpose of the Plan is to promote the long-term growth and profitability of the Company by (i)&nbsp;providing key people with incentives to improve stockholder value and to contribute to
the growth and financial success of the Company, and (ii)&nbsp;enabling the Company to attract, retain and reward the best-available persons. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Plan permits the granting of stock options (including incentive stock options qualifying under Code section&nbsp;422 and nonqualified stock options), stock appreciation rights,
restricted or unrestricted stock awards, phantom stock, performance awards, or any combination of the foregoing. </FONT></P>

<P><FONT SIZE=2><B>2.&nbsp;&nbsp;&nbsp;&nbsp;Definitions  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under this Plan, except where the context otherwise indicates, the following definitions apply: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Affiliate"</I></FONT><FONT SIZE=2> shall mean any entity, whether now or hereafter existing, which controls, is controlled by, or is under
common control with, the Company (including, but not limited to, joint ventures, limited liability companies, and partnerships). For this purpose, "control" shall mean ownership of 50% or more of the
total combined voting power or value of all classes of stock or interests of the entity. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>"Award"</I></FONT><FONT SIZE=2> shall mean any stock option, stock appreciation right, stock award, phantom stock award, or performance award. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>"Board"</I></FONT><FONT SIZE=2> shall mean the Board of Directors of the Company. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>"Code"</I></FONT><FONT SIZE=2> shall mean the Internal Revenue Code of 1986, as amended, and any regulations promulgated thereunder. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>"Common Stock"</I></FONT><FONT SIZE=2> shall mean shares of common stock of the Company, par value of $0.0001 per share. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>"Exchange Act"</I></FONT><FONT SIZE=2> shall mean the Securities Exchange Act of 1934, as amended. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>"Fair Market Value"</I></FONT><FONT SIZE=2> of a share of the Company's Common Stock for any purpose on a particular date shall be determined in
a manner such as the Administrator shall in good faith determine to be appropriate; provided that in the event the Common Stock shall become registered under Section&nbsp;12(b) of the Exchange Act,
then thereafter the Fair Market Value of the Company's Common Stock for any purpose on a particular date shall mean the last reported sale price per share of Common Stock, regular way, on such date
or, in case no such sale takes place on such date, the average of the closing bid and asked prices, regular way, in either case as reported in the principal consolidated transaction reporting system
with respect to securities listed or admitted to trading on a national securities exchange or included for quotation on the Nasdaq-National Market, or if the Common Stock is not so listed or admitted
to trading or included for quotation, the last quoted price, or if the Common Stock is not so quoted, the average of the high bid and low asked prices, regular way, in the
over-the-counter market, as reported by the National Association of Securities Dealers,&nbsp;Inc. Automated Quotation System or, if such system is no longer in use, the
principal other automated quotations system that may then be in use or, if the Common Stock is not quoted by any such </FONT></P>

<HR NOSHADE>
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<A NAME="page_mx1971_1_2"> </A>
<BR>

<P><FONT SIZE=2>
organization, the average of the closing bid and asked prices, regular way, as furnished by a professional market maker making a market in the Common Stock as selected in good faith by the
Administrator or by such other source or sources as shall be selected in good faith by the Administrator. If, as the case may be, the relevant date is not a trading day, the determination shall be
made as of the next preceding trading day. As used herein, the term "trading day" shall mean a day on which public trading of securities occurs and is reported in the principal consolidated reporting
system referred to above, or if the Common Stock is not listed or admitted to trading on a national securities exchange or included for quotation on the Nasdaq-National Market, any business day. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>"Grant Agreement"</I></FONT><FONT SIZE=2> shall mean a written document memorializing the terms and conditions of an Award granted pursuant to
the Plan and shall incorporate the terms of the Plan. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>"Parent"</I></FONT><FONT SIZE=2> shall mean a corporation, whether now or hereafter existing, within the meaning of the definition of "parent
corporation" provided in Code section&nbsp;424(e), or any successor thereto. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>"Subsidiary" and "subsidiaries"</I></FONT><FONT SIZE=2> shall mean only a corporation or corporations, whether now or hereafter existing, within
the meaning of the definition of "subsidiary corporation" provided in Code section&nbsp;424(f), or any successor thereto. </FONT></P>


<P><FONT SIZE=2><B>3.&nbsp;&nbsp;&nbsp;&nbsp;Administration  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Administration of the Plan.</I></FONT><FONT SIZE=2> The Plan shall be administered by the Board or by such committee or committees as may be
appointed by the Board from time to time (the Board, committee or committees hereinafter referred to as the "Administrator"). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Powers of the Administrator</I></FONT><FONT SIZE=2>. The Administrator shall have all the powers vested in it by the terms of the Plan, such
powers to include authority, in its sole and absolute discretion, to grant Awards under the Plan, prescribe Grant Agreements evidencing such Awards and establish programs for granting Awards. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Administrator shall have full power and authority to take all other actions necessary to carry out the purpose and intent of the Plan, including, but not limited to, the authority
to: (i)&nbsp;determine the eligible persons to whom, and the time or times at which Awards shall be granted; (ii)&nbsp;determine the types of Awards to be granted; (iii)&nbsp;determine the
number of shares to be covered by or used for reference purposes for each Award; (iv)&nbsp;impose such terms, limitations, restrictions and conditions upon any such Award as the Administrator shall
deem appropriate; (v)&nbsp;modify, amend, extend or renew outstanding Awards, or accept the surrender of outstanding Awards and substitute new Awards (provided however, that, except as provided in
Section&nbsp;7(d) of the Plan, any modification that would materially adversely affect any outstanding Award shall not be made without the consent of the holder); (vi)&nbsp;accelerate or otherwise
change the time in which an Award may be exercised or becomes payable and to waive or accelerate the lapse, in whole or in part, of any restriction or condition with respect to such Award, including,
but not limited to, any restriction or condition with respect to the vesting or exercisability of an Award following termination of any grantee's employment or other relationship with the Company; and
(vii)&nbsp;establish objectives and conditions, if any, for earning Awards and determining whether Awards will be paid after the end of a performance period. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Administrator shall have full power and authority, in its sole and absolute discretion, to administer and interpret the Plan and to adopt and interpret such rules, regulations,
agreements, guidelines and instruments for the administration of the Plan and for the conduct of its business as the Administrator deems necessary or advisable. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Non-Uniform Determinations</I></FONT><FONT SIZE=2>. The Administrator's determinations under the Plan (including without limitation,
determinations of the persons to receive Awards, the form, amount and timing of such Awards, the terms and provisions of such Awards and the Grant Agreements evidencing such Awards) need not be
uniform and may be made by the Administrator selectively among persons who </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

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<P><FONT SIZE=2>
receive, or are eligible to receive, Awards under the Plan, whether or not such persons are similarly situated. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Limited Liability.</I></FONT><FONT SIZE=2> To the maximum extent permitted by law, no member of the Administrator shall be liable for any action
taken or decision made in good faith relating to the Plan or any Award thereunder. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Indemnification</I></FONT><FONT SIZE=2>. To the maximum extent permitted by law and by the Company's charter and by-laws, the members
of the Administrator shall be indemnified by the Company in respect of all their activities under the Plan. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Effect of Administrator's Decision</I></FONT><FONT SIZE=2>. All actions taken and decisions and determinations made by the Administrator on all
matters relating to the Plan pursuant to the powers vested in it hereunder shall be in the Administrator's sole and absolute discretion and shall be conclusive and binding on all parties
concerned, including the Company, its stockholders, any participants in the Plan and any other employee, consultant, or director of the Company, and their respective successors in interest. </FONT></P>

<P><FONT SIZE=2><B>4.&nbsp;&nbsp;&nbsp;&nbsp;Shares Available for the Plan; Maximum Awards  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to adjustments as provided in Section&nbsp;7(d) of the Plan, the shares of Common Stock that may be issued with respect to Awards granted under the Plan
shall not exceed an aggregate of 1,600,000 shares of Common Stock. The Company shall reserve such number of shares for Awards under the Plan, subject to adjustments as provided in Section&nbsp;7(d)
of the Plan. If any Award, or portion of an Award, under the Plan expires or terminates unexercised, becomes unexercisable or is forfeited or otherwise terminated, surrendered or canceled as to any
shares, or if any shares of Common Stock are surrendered to the Company in connection with any Award (whether or not such surrendered shares were acquired pursuant to any Award), the shares subject to
such Award and the surrendered shares shall thereafter be available for further Awards under the Plan; provided, however, that any such shares that are surrendered to the Company in connection with
any Award or that are otherwise forfeited after issuance shall not be available for purchase pursuant to incentive stock options intended to qualify under Code section&nbsp;422. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
to adjustments as provided in Section&nbsp;7(d) of the Plan, the maximum number of shares of Common Stock subject to Awards of any combination that may be granted during any
one fiscal year of the Company to any one individual under this Plan shall be limited to 500,000 shares. Such per-individual limit shall not be adjusted to effect a restoration of shares
of Common Stock with respect to which the related Award is terminated, surrendered or canceled. </FONT></P>

<P><FONT SIZE=2><B>5.&nbsp;&nbsp;&nbsp;&nbsp;Participation  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Participation in the Plan shall be open to all employees, officers, directors, and consultants of the Company, or of any Affiliate of the Company, as may be
selected by the Administrator from time to time. </FONT></P>

<P><FONT SIZE=2><B>6.&nbsp;&nbsp;&nbsp;&nbsp;Awards  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Administrator, in its sole discretion, establishes the terms of all Awards granted under the Plan. Awards may be granted individually or in tandem with other
types of Awards. All Awards are subject to the terms and conditions provided in the Grant Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Stock Options.</I></FONT><FONT SIZE=2> The Administrator may from time to time grant to eligible participants Awards of incentive stock options
as that term is defined in Code section&nbsp;422 or nonqualified stock options;
provided, however, that Awards of incentive stock options shall be limited to employees of the Company or of any Parent or Subsidiary of the Company. Options intended to qualify as incentive stock
options under Code section&nbsp;422 must have an exercise price at least equal to Fair Market Value </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

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<P><FONT SIZE=2>
on the date of grant, but nonqualified stock options may be granted with an exercise price less than Fair Market Value. No stock option shall be an incentive stock option unless so designated by the
Administrator at the time of grant or in the Grant Agreement evidencing such stock option. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Stock Appreciation Rights.</I></FONT><FONT SIZE=2> The Administrator may from time to time grant to eligible participants Awards of Stock
Appreciation Rights ("SAR"). An SAR entitles the grantee to receive, subject to the provisions of the Plan and the Grant Agreement, a payment having an aggregate value equal to the product of
(i)&nbsp;the excess of (A)&nbsp;the Fair Market Value on the exercise date of one share of Common Stock over (B)&nbsp;the base price per share specified in the Grant Agreement, times
(ii)&nbsp;the number of shares specified by the SAR, or portion thereof, which is exercised. Payment by the Company of the amount receivable upon any exercise of an SAR may be made by the delivery
of Common Stock or cash, or any combination of Common Stock and cash, as determined in the sole discretion of the Administrator. If upon settlement of the exercise of an SAR a grantee is to receive a
portion of such payment in shares of Common Stock, the number of shares shall be determined by dividing such portion by the Fair Market Value of a share of Common Stock on the exercise date. No
fractional shares shall be used for such payment and the Administrator shall determine whether cash shall be given in lieu of such fractional shares or whether such fractional shares shall be
eliminated. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Stock Awards.</I></FONT><FONT SIZE=2> The Administrator may from time to time grant restricted or unrestricted stock Awards to eligible
participants in such amounts, on such terms and conditions, and for such consideration, including no consideration or such minimum consideration as may be required by law, as it shall determine. A
stock Award may be paid in Common Stock, in cash, or in a combination of Common Stock and cash, as determined in the sole discretion of the Administrator. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Phantom Stock.</I></FONT><FONT SIZE=2> The Administrator may from time to time grant Awards to eligible participants denominated in
stock-equivalent units ("phantom stock") in such amounts and on such terms and conditions as it shall determine. Phantom stock units granted to a participant shall be credited to a bookkeeping reserve
account solely for accounting purposes and shall not require a segregation of any of the Company's assets. An Award of phantom stock may be settled in Common Stock, in cash, or in a combination of
Common Stock and cash, as determined in the sole discretion of the Administrator. Except as otherwise provided in the applicable Grant Agreement, the grantee shall not have the rights of a stockholder
with respect to any shares of Common Stock represented by a phantom stock unit solely as a result of the grant of a phantom stock unit to the grantee. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Performance Awards</I></FONT><FONT SIZE=2>. The Administrator may, in its discretion, grant performance awards which become payable on account of
attainment of one or more performance goals established by the Administrator. Performance awards may be paid by the delivery of Common Stock or cash, or any combination of Common Stock and cash, as
determined in the sole discretion of the Administrator. Performance goals established by the Administrator may be based on the Company's or an Affiliate's operating income or one or more other
business criteria selected by the Administrator that apply to an
individual or group of individuals, a business unit, or the Company or an Affiliate as a whole, over such performance period as the Administrator may designate. </FONT></P>

<P><FONT SIZE=2><B>7.&nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Withholding of Taxes</I></FONT><FONT SIZE=2>. Grantees and holders of Awards shall pay to the Company or its Affiliate, or make provision
satisfactory to the Administrator for payment of, any taxes required to be withheld in respect of Awards under the Plan no later than the date of the event creating the tax liability. The Company or
its Affiliate may, to the extent permitted by law, deduct any such tax obligations from any payment of any kind otherwise due to the grantee or holder of an Award. In the event that payment to the
Company or its Affiliate of such tax obligations is made in shares of Common Stock, such shares shall be valued at Fair Market Value on the applicable date for such purposes. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Loans</I></FONT><FONT SIZE=2>. The Company or its Affiliate may make or guarantee loans to grantees to assist grantees in exercising Awards and
satisfying any withholding tax obligations. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Transferability</I></FONT><FONT SIZE=2>. Except as otherwise determined by the Administrator, and in any event in the case of an incentive stock
option or a stock appreciation right granted with respect to an incentive stock option, no Award granted under the Plan shall be transferable by a grantee otherwise than by will or the laws of descent
and distribution. Unless otherwise determined by the Administrator in accord with the provisions of the immediately preceding sentence, an Award may be exercised during the lifetime of the grantee,
only by the grantee or, during the period the grantee is under a legal disability, by the grantee's guardian or legal representative. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Adjustments; Business Combinations</I></FONT><FONT SIZE=2>. In the event of changes in the Common Stock of the Company by reason of any stock
dividend, spin-off, split-up, recapitalization, merger, consolidation, business combination or exchange of shares and the like, the Administrator shall, in its discretion, make
appropriate adjustments to the maximum number and kind of shares reserved for issuance or with respect to which Awards may be granted under the Plan as provided in Section&nbsp;4 of the Plan and to
the number, kind and price of shares covered by outstanding Awards, and shall, in its discretion and without the consent of holders of Awards, make any other adjustments in outstanding Awards,
including but not limited to reducing the number of shares subject to Awards or providing or mandating alternative settlement methods such as settlement of the Awards in cash or in shares of Common
Stock or other securities of the Company or of any other entity, or in any other matters which relate to Awards as the Administrator shall, in its sole discretion, determine to be necessary or
appropriate. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
anything in the Plan to the contrary and without the consent of holders of Awards, the Administrator, in its sole discretion, may make any modifications to any Awards,
including but not limited to cancellation, forfeiture, surrender or other termination of the Awards in whole or in part regardless of the vested status of the Award, in order to facilitate any
business combination that is authorized by the Board to comply with requirements for treatment as a pooling of interests transaction for accounting purposes under generally accepted accounting
principles. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Administrator is authorized to make, in its discretion and without the consent of holders of Awards, adjustments in the terms and conditions of, and the criteria included in, Awards
in recognition of unusual or nonrecurring events affecting the Company, or the financial statements of the Company or any Affiliate, or of changes in applicable laws, regulations, or accounting
principles, whenever the Administrator determines that such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available
under the Plan. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Substitution of Awards in Mergers and Acquisitions.</I></FONT><FONT SIZE=2> Awards may be granted under the Plan from time to time in
substitution for Awards held by employees, officers, consultants or directors of entities who become or are about to become employees, officers, consultants or directors of the Company or an Affiliate
as the result of a merger or consolidation of the employing entity with the Company or an Affiliate, or the acquisition by the Company or an Affiliate of the assets or stock of the employing entity.
The terms and conditions of any substitute Awards so granted may vary from the terms and conditions set forth herein to the extent that the Administrator deems appropriate at the time of grant to
conform the substitute Awards to the provisions of the awards for which they are substituted. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Termination, Amendment and Modification of the Plan</I></FONT><FONT SIZE=2>. The Board may terminate, amend or modify the Plan or any portion
thereof at any time. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Non-Guarantee of Employment or Service</I></FONT><FONT SIZE=2>. Nothing in the Plan or in any Grant Agreement thereunder shall confer
any right on an individual to continue in the service of the Company or shall </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>5</FONT></P>

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<P><FONT SIZE=2>
interfere in any way with the right of the Company to terminate such service at any time with or without cause or notice. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>No Trust or Fund Created</I></FONT><FONT SIZE=2>. Neither the Plan nor any Award shall create or be construed to create a trust or separate fund
of any kind or a fiduciary relationship between the Company and a grantee or any other person. To the extent that any grantee or other person acquires a right to receive payments from the Company
pursuant to an Award, such right shall be no greater than the right of any unsecured general creditor of the Company. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Governing Law</I></FONT><FONT SIZE=2>. The validity, construction and effect of the Plan, of Grant Agreements entered into pursuant to the Plan,
and of any rules, regulations, determinations or decisions made by the Administrator relating to the Plan or such Grant Agreements, and the rights of any and all persons having or claiming to have any
interest therein or thereunder, shall be determined exclusively in accordance with applicable federal laws and the laws of the State of Delaware, without regard to its conflict of laws principles. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Effective Date; Termination Date</I></FONT><FONT SIZE=2>. The Plan initially became effective May&nbsp;15, 1997, was first amended and restated
on April&nbsp;26, 1999, and shall continue in effect as amended and restated herein, subject to approval of the stockholders of the Company at the 2002 Annual Meeting of the Stockholders or a
special meeting of the stockholders at which the Plan, as amended and restated herein, is presented for approval, provided that any such special meeting is held within twelve months of the date this
amended and restated Plan is adopted by the Board. If the stockholders of the Company fail to approve the Plan as amended and restated herein within the time frame described in the immediately
preceding sentence, then the Plan will continue in effect as last amended and restated and approved by the stockholders on April&nbsp;26, 1999. No Award shall be granted under the Plan after the
close of business on May&nbsp;14, 2007. Subject to other applicable provisions of the Plan, all Awards made under the Plan prior to such termination of the Plan shall remain in effect until such
Awards have been satisfied or terminated in accordance with the Plan and the terms of such Awards. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>6</FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=3><B>I.C. ISAACS&nbsp;&amp; COMPANY,&nbsp;INC.  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B>PROXY FOR ANNUAL MEETING OF STOCKHOLDERS<BR>
To be Held on [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;], 2002  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned hereby constitutes and appoints Robert J. Arnot and Eugene C. Wielepski, as attorneys and proxies with full power of substitution, to attend and
vote all of the shares which the undersigned is entitled to vote at the Annual Meeting of Stockholders of I.C. Isaacs&nbsp;&amp; Company,&nbsp;Inc. (the "Company") to be held at the offices of Piper
Rudnick LLP, 1251 Avenue of the Americas,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Floor, New York, New York 10020, at 11:00&nbsp;a.m. Eastern Time,
on&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2002 and at any and all adjournments
or postponements thereof, with the same force and effect as if the undersigned were personally present and the undersigned hereby instructs said attorneys and proxies to vote as follows with respect
to the matters described in the Proxy Statement: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>1.</FONT></DT><DD><FONT SIZE=2>To
approve the transactions contemplated by the Framework Agreement dated May&nbsp;14, 2002 among the Company, I.C. Isaacs&nbsp;&amp; Company L.P., Textile Investment International
S.A., Latitude Licensing Corp., and Wurzburg Holding S.A. </FONT></DD></DL>
</UL>
<BR>

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<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="17%"><FONT SIZE=2><FONT FACE="WINGDINGS">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>FOR</B></FONT></TD>
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2><FONT FACE="WINGDINGS">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>AGAINST</B></FONT></TD>
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><FONT SIZE=2><FONT FACE="WINGDINGS">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>ABSTAIN</B></FONT></TD>
</TR>
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<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>2.</FONT></DT><DD><FONT SIZE=2>To
elect three Class&nbsp;II directors to the Company's Board of Directors each for a term of three years and until their successors have been elected and qualified, one
Class&nbsp;I director for a term of two years and until his successor is elected and qualified, and one Class&nbsp;II director for a term of one year and until his successor is elected and
qualified. The following three persons have been nominated to serve as Class&nbsp;II directors: Messrs.&nbsp;Jon Hechler, Daniel J. Gladstone and Ronald Loubet. Mr.&nbsp;Rene Faltz has been
nominated to serve as a Class&nbsp;I director and Mr.&nbsp;Robert Stephen Stec has been nominated to serve as a Class&nbsp;III director. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="WINGDINGS">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>FOR</B></FONT><FONT SIZE=2> all nominees listed
above&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="WINGDINGS">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>WITHHOLD AUTHORITY</B></FONT><FONT SIZE=2> to vote for all nominees listed below </FONT></P>

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<P><FONT SIZE=2><B>(INSTRUCTION: To withhold authority to vote for any one or more individual nominees, write the name of each such nominee on the line provided above.)</B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>3.</FONT></DT><DD><FONT SIZE=2>To
approve the Company's Amended and Restated 1997 Omnibus Stock Plan. </FONT></DD></DL>
</UL>
<BR>

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<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="17%"><FONT SIZE=2><FONT FACE="WINGDINGS">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>FOR</B></FONT></TD>
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2><FONT FACE="WINGDINGS">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>AGAINST</B></FONT></TD>
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><FONT SIZE=2><FONT FACE="WINGDINGS">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>ABSTAIN</B></FONT></TD>
</TR>
</TABLE>
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<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>4.</FONT></DT><DD><FONT SIZE=2>To
ratify the appointment of BDO Seidman, LLP as the Company's independent auditors for the current fiscal year. </FONT></DD></DL>
</UL>
<BR>

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<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="17%"><FONT SIZE=2><FONT FACE="WINGDINGS">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>FOR</B></FONT></TD>
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2><FONT FACE="WINGDINGS">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>AGAINST</B></FONT></TD>
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><FONT SIZE=2><FONT FACE="WINGDINGS">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>ABSTAIN</B></FONT></TD>
</TR>
</TABLE>
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<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>5.</FONT></DT><DD><FONT SIZE=2>To
transact such other business as may properly come before the meeting or any adjournments or postponements thereof. </FONT></DD></DL>
</UL>
<BR>

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<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="17%"><FONT SIZE=2><FONT FACE="WINGDINGS">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>FOR</B></FONT></TD>
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2><FONT FACE="WINGDINGS">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>AGAINST</B></FONT></TD>
<TD WIDTH="17%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%"><FONT SIZE=2><FONT FACE="WINGDINGS">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>ABSTAIN</B></FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2><I>(Please sign on reverse side)  </I></FONT></P>

<HR NOSHADE>
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<P><FONT SIZE=2><B>THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS OF THE COMPANY, WHICH RECOMMENDS A VOTE FOR THE DIRECTOR NOMINEES LISTED IN ITEM 1 AND FOR
ITEMS 2, 3, 4 AND 5. AS TO ANY OTHER MATTER WHICH MAY PROPERLY COME BEFORE THE MEETING, SAID PROXIES WILL VOTE IN ACCORDANCE WITH THEIR BEST JUDGMENT.</B></FONT></P>


<P><FONT SIZE=2>THIS
PROXY when properly executed will be voted in the manner directed herein. If no direction is given, the proxy will be voted FOR the director nominees listed in Item 1 and FOR Items 2, 3, 4 and 5. </FONT></P>

<P><FONT SIZE=2><FONT FACE="WINGDINGS">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;Please
indicate by check mark if you plan to attend the Annual Meeting of Stockholders. </FONT></P>

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<TR VALIGN="TOP">
<TD WIDTH="52%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>DATED:</FONT></TD>
<TD WIDTH="27%"><HR NOSHADE></TD>
<TD WIDTH="8%"><FONT SIZE=2>, 2002</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="52%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD COLSPAN=3><BR><HR NOSHADE><FONT SIZE=2> (Signature)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="52%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD COLSPAN=3><BR><HR NOSHADE><FONT SIZE=2> (Signature)<BR></FONT>
</TD>
</TR>
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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOTE:
Please sign exactly as your name or names appear on this card. Joint owners should each sign personally. When signing as attorney, executor, administrator, personal representative,
trustee or guardian, please give full titles as such. (Please sign, date and return this proxy in the enclosed envelope) </FONT></P>

<HR NOSHADE>
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<BR>
<P><br><A NAME="02WDC1971_1">QuickLinks</A><br></P><!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_dg1971_1">NOTICE OF ANNUAL MEETING OF STOCKHOLDERS TO BE HELD ON [ , 2002]</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_di1971_1">PROXY STATEMENT FOR ANNUAL MEETING OF STOCKHOLDERS TO BE HELD ON [ , 2002 ]</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_di1971_2">INFORMATION CONCERNING THE BOARD OF DIRECTORS AND ITS COMMITTEES</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_di1971_3">EXECUTIVE COMPENSATION</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_dk1971_1">COMPENSATION COMMITTEE REPORT ON EXECUTIVE OFFICER COMPENSATION</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_dk1971_2">COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION IN COMPENSATION DECISIONS</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_dk1971_3">STOCK PERFORMANCE TABLE</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_dk1971_4">SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</A></FONT><BR>

<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_dm1971_1">CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_dm1971_2">AUDIT COMMITTEE</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_dm1971_3">REPORT OF AUDIT COMMITTEE</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_dm1971_4">SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_dm1971_5">STOCKHOLDER PROPOSALS FOR 2002 ANNUAL MEETING OF STOCKHOLDERS</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_dm1971_6">STOCKHOLDER PROPOSALS FOR 2003 ANNUAL MEETING OF STOCKHOLDERS</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_dm1971_7">OTHER MATTERS</A></FONT><BR>
<!-- TOC_BEGIN -->
<UL>
<FONT SIZE=2><A HREF="#toc_ma1971_1">EXHIBIT A</A></FONT><BR>
</UL>
<FONT SIZE=2><A HREF="#toc_ma1971_2">FRAMEWORK AGREEMENT</A></FONT><BR>
<!-- TOC_BEGIN -->
<UL>
<FONT SIZE=2><A HREF="#toc_me1971_1">EXHIBIT B</A></FONT><BR>
</UL>
<FONT SIZE=2><A HREF="#toc_me1971_2">Second Certificate of Amendment to Certificate of Designation, Number, Voting Powers, Preferences and Rights of the Series of the Preferred Stock of I.C. Isaacs &amp; Company, Inc. Designated as Series A
Convertible Preferred Stock</A></FONT><BR>

<!-- TOC_BEGIN -->
<UL>
<FONT SIZE=2><A HREF="#toc_mg1971_1">EXHIBIT C-1</A></FONT><BR>
</UL>
<FONT SIZE=2><A HREF="#toc_mg1971_2">I. C. ISAACS &amp; COMPANY, INC. Common Stock Purchase Warrant</A></FONT><BR>
<!-- TOC_BEGIN -->
<UL>
<FONT SIZE=2><A HREF="#toc_mi1971_1">EXHIBIT C-2</A></FONT><BR>
</UL>
<FONT SIZE=2><A HREF="#toc_mi1971_2">I. C. ISAACS &amp; COMPANY, INC. Common Stock Purchase Warrant</A></FONT><BR>
<!-- TOC_BEGIN -->
<UL>
<FONT SIZE=2><A HREF="#toc_mm1971_1">EXHIBIT D</A></FONT><BR>
</UL>
<FONT SIZE=2><A HREF="#toc_mm1971_2">I.C. ISAACS &amp; COMPANY, INC. STOCKHOLDERS' AGREEMENT</A></FONT><BR>

<!-- TOC_BEGIN -->
<UL>
<FONT SIZE=2><A HREF="#toc_mt1971_1">EXHIBIT E</A></FONT><BR>
</UL>
<FONT SIZE=2><A HREF="#toc_mt1971_2">AMENDMENT NO. 4 TO TRADEMARK LICENSE AND TECHNICAL ASSISTANCE AGREEMENT</A></FONT><BR>

<!-- TOC_BEGIN -->
<UL>
<FONT SIZE=2><A HREF="#toc_mv1971_1">EXHIBIT F</A></FONT><BR>
</UL>
<FONT SIZE=2><A HREF="#toc_mv1971_2">AMENDMENT NO. 6 TO TRADEMARK LICENSE AND TECHNICAL ASSISTANCE AGREEMENT FOR WOMEN'S COLLECTIONS</A></FONT><BR>

<!-- TOC_BEGIN -->
<UL>
<FONT SIZE=2><A HREF="#toc_mx1971_1">EXHIBIT G</A></FONT><BR>
</UL>
<FONT SIZE=2><A HREF="#toc_mx1971_2">I.C. ISAACS &amp; COMPANY, INC. AMENDED AND RESTATED OMNIBUS STOCK PLAN (As amended through , 2002)</A></FONT><BR>

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