<PAGE>

                                      LEASE

                                                               EXHIBIT NO. 10(b)



                   THIS AGREEMENT,  made this 27 day of January,  1999,  between
RUTH R. ABRAMS LLC,  ROSALIE ABRAMS KATZ, FIRST HALF REALTY CO., INC. and SECOND
HALF REALTY CO.,  INC.,  do  Insignia / Edward S.  Gordon  Co.,  Inc.,  200 Park
Avenue,  New York,  New York 10166  ("Landlord")  and  JACLYN,  INC.,  330 Fifth
Avenue, New York, New York 10001 ("Tenant").

                   Landlord   and  Tenant   hereby  agree  that  the  terms  and
provisions  of the annexed  lease  ("Prior  Lease")  between 330 Realty  Company
("Prior Landlord") and Tenant,  dated January 31, 1997, in the building known as
330 Fifth Avenue,  New York,  New York,  are hereby  incorporated  into this new
lease in their  entirety to be  effective as of the  Commencement  Date with the
following modifications:
        Premises:                           Suites 1303 & 1305-07
        Tenant's Percentage:                2.78%
        Commencement Date:                  February 1, 1999
        Term:                               Three (3) years
        Fixed Annual (Monthly) Rent:        See Schedule A
        Real Estate Tax Base Year:          Calendar year 1999 from January 1,
                                            1999 to December 31, 1999
        Operating Expenses:                 Provision deleted
        Security Deposit:                   $6,289.15

                   The following  provisions  shall apply as of the Commencement
Date:

                   1.  Notwithstanding  that the Prior  Lease has or shall  have
expired prior to the  Commencement  Date,  the terms and provisions of the Prior
Lease  shall be deemed  incorporated  in their  entirety  into this  Lease to be
effective as of the Commencement Date as a new direct lease between Landlord and
Tenant, except as modified herein.

                   2.  Except  as  expressly  set forth in this  Agreement,  (i)
Landlord  shall  perform no work to the Premises or incur any expense to prepare
same for  Tenant's  initial  or  continuing  occupancy,  as the case may be, and
Tenant agrees to accept same in its "as is" condition on the Commencement  Date;
(ii)  there  shall be no  "rent  free"  period,  landlord's  contribution,  rent
concession  or work  allowance  to Tenant;  and (iii) there shall be no Tenant's
right of  termination  or  extension,  right of first  refusal or right to lease
additional space.

                   3.  Tenant  hereby  agrees  that  Tenant  shall  not  look to
Landlord for any claims it may have against the Prior  Landlord  under the Prior
Lease, including, without limitation, any claims arising
<PAGE>

                                      LEASE


due to (i) Prior Landlord's  default under the Prior Lease, (ii) any application
by Prior Landlord of any security deposit (or interest  thereon),  (iii) receipt
of rent by Prior Landlord for any period after the  Commencement  Date, (iv) any
misapplication  by or overpayment to Prior Landlord of rent or (v) any refund of
prior rent previously paid to Prior Landlord.

                  4.  Tenant  represents  and  warrants  that  Tenant has had no
dealings or communications  with any broker or agent other than  Insignia/Edward
S. Gordon Co., Inc. in connection  with the subject  matter or  consummation  of
this  Agreement,  and Tenant  covenants and agrees to defend,  hold harmless and
indemnify  Landlord  from  and  against  any and all  cost,  expense  (including
reasonable  attorneys' fees) or liability for any  compensation,  commissions or
charges claimed by any other broker or agent with respect to this Agreement.

                  It is  expressly  agreed  that if,  prior to the  Commencement
Date,  Tenant shall be in default in any of the covenants,  terms and conditions
contained in the Prior Lease by virtue of which Tenant is now in  possession  of
the Premises, this Agreement shall, at the option of Landlord, be void, null and
of no effect, as though the same had never been made.

                  IN WITNESS  WHEREOF,  the  parties  hereto have  executed,  or
caused to be executed, these presents by the properly authorized parties and the
appropriate seals thereto duly affixed, the day and year first above written.


                                   HENRY I. FEUERSTEIN, as agent for Landord


                                   JACLYN, INC., Tenant


                                   Name: /s/ Anthony Christon
                                   Title:    CFO

                                   Employer ID No. 22-1432053
<PAGE>

                                 RENT SCHEDULE



<TABLE>
<CAPTION>






            Period                           Fixed Annual Rental Rate                Fixed monthly Rental Rate
            ------                           ------------------------                -------------------------
<S>                                          <C>                                     <C>
February 1, 1999 - January 31, 2000                   $75,500.00                            $6,291.67
February 1, 2000 - January 31, 2001                   $77,765.00                            $6,480.42
February 1, 2001 - January 31, 2002                   $80,097.95                            $6,674.83
</TABLE>