GENERAL RELEASE


     TO ALL  WHOM  THESE  PRESENTS  SHALL  COME  OR MAY  CONCERN,  KNOW  THAT in
consideration  of the  mutual  releases  contained  herein  and  other  good and
valuable consideration,  receipt whereof is hereby acknowledged,  CYGNE DESIGNS,
INC. ("Cygne") and FENN, WRIGHT AND MANSON,  INCORPORATED  ("FWM"; Cygne and FWM
are hereinafter  collectively  referred to as "Tenant") and S.L. GREEN OPERATING
PARTNERSHIP,  L.P., a limited partnership  ("Owner") hereby mutually release and
discharge the other parties hereto and such other parties' respective  partners,
shareholders, officers, members, employees, representatives,  agents, successors
and assigns (other than  AnnTaylor,  Inc. and AnnTaylor,  Inc.'s  successors and
assigns,  hereinafter collectively referred to as the "AnnTaylor Entities") from
all actions,  causes of action,  suits,  debts,  dues, sums of money,  accounts,
reckonings,  bonds,  bills  specialties,  covenants,  contracts,  controversies,
agreements,   promises,  variances,  trespasses,  damages,  judgments,  extents,
executions,  claims and demands whatsoever,  in law, admiralty or equity,  which
Tenant or Owner or their respective partners,  shareholders,  officers, members,
employees,  representatives,  agents,  successors  and  assigns  (other than the
AnnTaylor  Entities)  ever had,  now have or  hereafter  can,  shall or may have
against the other for, upon, or by reason of any matter,  cause or thing arising
under or in connection with the lease, demise, license,  possession,  use and/or
occupancy of any space in the building  located at 1372 Broadway,  New York, New
York  and/or  any  guaranty  by  Cygne  or FWM  in  connection  with  any of the
foregoing,  including,  without  limitation (a) that certain  agreement of lease
dated  as of  August  16,1991  between  Nineteen  New  York  Properties  Limited
Partnership ("19NY") as landlord,  and Cygne, as tenant (such lease, as amended,
severed and  .assigned is  hereinafter  referred  collectively  to as the "Cygne
Lease");  (b) that certain  agreement of lease dated as of June 24,1994  between
19NY and FWM  (such  lease,  as same has been  amended,  split  and  severed  is
hereinafter  referred to as the "FWM  Lease";  the Cygne Lease and the FWM Lease
are  hereinafter  collectively  referred to as the  "Leases");  (c) that certain
guaranty of the FWM Lease dated as of June 24,1994  given by Cygne to 19NY;  and
(d) that certain  Sixth  Amendment  and Severance of Lease dated as of September
1996 between 1372 Broadway LLC and Cygne; from the beginning of the world to the
date of this Release. In further consideration of the foregoing releases, Tenant
agrees that Tenant shall pay Owner,  simultaneously  with its  execution of this
Release,  $175,000.00  (the "Release  Payment"),  which Release Payment shall be
deemed earned in full by Owner on receipt thereof.

     Whenever the text hereof requires, the use of singular number shall include
the appropriate plural number as the text of the within instrument may require.

     The  provisions  and  conditions set forth in this Release shall be binding
upon and inure to the benefit of Tenant and Owner and their respective  partners
owners   directors,   shareholders,   officers,   members,   affiliates,   legal
representatives employees, representatives, agents, successors and assigns.


<PAGE>


     This Release may not be changed orally.

     IN WITNESS  WHEREOF,  Cygne,  FWM and Owner  have cause this  Release to be
executed on this 1st day of March, 1999.



CYGNE DESIGNS, INC.

By: /s/ Roy E. Green
   ---------------------------------
   Roy E. Green
   Vice President


FENN, WRIGHT AND MANSON INCORPORATED

 By: /s/ Roy E. Green
     --------------------------------
    Name:  Roy E. Green
    Title: Vice President


S.L. GREEN OPERATING PARTNERSHIP, L.P.

     By: S.L. Green Realty Corp., its general partner

         By: /s/ Benjamin P. Feldman
             -----------------------------
             Name: Benjamin P. Feldman
             Title: EVP



                                       2
<PAGE>



STATE OF NEW YORK  )
                   ) ss.:
COUNTY OF NEW YORK )

On the 1st day of March,  1999 before me  personally  came Roy E.  Green,  to me
known,  who being by me duly  sworn,  did depose and say that he resides at 1372
Broadway  NY;  that  he is  the  Vice  President  of  Cygne  Designs,  Inc.  the
corporation  described in and which executed the above  instrument;  and that he
signed his name thereto by order of the Board of Directors of said corporation.


            [NOTARY STAMP]
        M. CASSIN MALONEY, JR.
  Notary Public, State of New York
           No. 02MA5047468                       /s/ M. Cassin Maloney, Jr.
    Qualified in New York County                ------------------------------
       Commission Expires Aug. 7, 1999                   Notary Public



STATE OF NEW YORK  )
                   ) ss.:
COUNTY OF NEW YORK )

On the 1st day of March,  1999 before me  personally  came Roy E.  Green,  to me
known,  who being by me duly  sworn,  did depose and say that he resides at 1372
Broadway  NY;  that  he is  the  Vice  President  of  Fenn,  Wright  and  Manson
Incorporated,  the  corporation  described  in  and  which  executed  the  above
instrument;  and that he  signed  his  name  thereto  by  order of the  Board of
Directors of said corporation.


            [NOTARY STAMP]
        M. CASSIN MALONEY, JR.
  Notary Public, State of New York
           No. 02MA5047468                       /s/ M. Cassin Maloney, Jr.
    Qualified in New York County                ------------------------------
       Commission Expires Aug. 7, 1999                   Notary Public



STATE OF NEW YORK  )
                   ) ss.:
COUNTY OF NEW YORK )

On 2nd day of March, 1999,  personally appeared before me Benjamin P Feldman, to
me known,  who being  duly  sworn,  did depose and say that he resides at 400 E.
85th St. NYC, that he is the Exec. Vice President of SL Green Realty,  Corp. the
corporation  described in and which  executed the  foregoing  instrument;  which
corporation  is the  general  partner  of the  partnership  which  executed  the
foregoing instrument; that the execution of the instrument by Benjamin P Feldman
was duly authorized  according to the Articles of Partnership;  that the general
partner,  executed the instrument on behalf of the said partnership  pursuant to
said authorization and that he knows the seal of said corporation; that the seal
affixed to said  instrument is such  corporate  seal;  that it was so affixed by
order of the board of directors of said corporation, and that he signed his name
thereto by like order.


                                               /s/ Nancy Ann Peck
                                               ------------------------------
                                                    Notary Public


                                                      [NOTARY STAMP]           
                                                      Nancy Ann Peck         
                                            Notary Public, State of New York   
                                                     No. 31-4711298           
                                               Qualified in New York County    
                                              Commission Expires May 31, 2000