<PAGE>


                           TENTH AMENDMENT AGREEMENT

                  TENTH AMENDMENT AGREEMENT, dated as of March 31, 1998, to the
Credit Agreement, dated as of June 5, 1995 (as heretofore or hereafter amended,
supplemented or modified from time to time in accordance with its terms, the
"Credit Agreement"), among Donnkenny Apparel, Inc., Beldoch Industries
Corporation and Megaknits, Inc. (collectively, the "Borrowers"), the lenders
named therein (the "Lenders"), the guarantors named therein (the "Guarantors"),
The CIT Group/Commercial Services, Inc., as Administrative Agent, and The Chase
Manhattan Bank, as agent (the "Agent") for Lenders. Terms used herein and not
otherwise defined herein shall have the meanings attributed thereto in the
Credit Agreement.

                  WHEREAS, the Borrowers have requested that the Lenders amend
certain provisions of the Credit Agreement, and the Lenders, subject to the
terms and conditions set forth herein, are willing to do so.

                  NOW, THEREFORE, for valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, and subject to the fulfillment of
the conditions set forth below, the parties hereto agree as follows:

                  SECTION 1.        AMENDMENT UNDER CREDIT AGREEMENT

                  1.1 The definition of "Inventory Amount" in Article I of the
Credit Agreement is hereby amended in its entirety to read as follows:

                  "`Inventory Amount' shall mean, during any month, the amount
set forth below as corresponds to such month:

                  Month                                       Inventory Amount

                  January 1998                                   $ 13,400,000
                  February 1998                                    13,700,000
                  March 1998                                       13,300,000
                  April 1998                                       12,900,000
                  May 1998                                         14,300,000
                  June 1998                                        18,700,000
                  July 1998                                        20,750,000
                  August 1998                                      21,900,000
                  September 1998                                   17,300,000
                  October 1998                                     13,000,000
                  November 1998                                    11,900,000
                  December 1998                                    12,700,000
                  January 1999                                     13,400,000
                  February 1999                                    13,700,000
                  March 1999                                       13,300,000"


<PAGE>


                  1.2 The definitions of "Excess Collateral Requirement" and
"Overadvance Amount" in Article I of the Credit Agreement are hereby amended in
their entirety to read as follows:

                  "Excess Collateral Requirement" shall mean, during any End of
Month Period or Intramonth Period, as applicable, the amounts set forth below
as correspond to the applicable period commencing in the months set forth
below, and zero as to any other date:

<TABLE>
<CAPTION>
                    ------------------------------- --------------------------- ------------------------------

                                                        Excess Collateral             Excess Collateral
                                                       Requirement for End       Requirement for Intramonth
                    Month                                of Month Period                   Period
                   <S>                              <C>                         <C>
                    ------------------------------- --------------------------- ------------------------------
                    October 1998                             $4,560,000                    $    -0-
                    ------------------------------- --------------------------- ------------------------------
                    November 1998                             5,068,000                       560,000
                    ------------------------------- --------------------------- ------------------------------
                    December 1998                             4,164,000                     1,068,000
                    ------------------------------- --------------------------- ------------------------------
                    January 1999                              2,236,000                       164,000
                    ------------------------------- --------------------------- ------------------------------
                    February 1999                             3,784,000                         -0-
                    ------------------------------- --------------------------- ------------------------------
                    March 1999                                3,065,000                         -0-
                    ------------------------------- --------------------------- ------------------------------
</TABLE>

                  For purposes of this paragraph, the terms "End of Month
                  Period" and "Intramonth Period" shall have their respective
                  meanings as set forth in the definition of "Overadvance
                  Amount."

                  "`Overadvance Amount' shall mean, during any End of Month
Period and Intramonth Period, the amounts set forth below as correspond to the
End of Month Period and the Intramonth Period during the months set forth
below:
<TABLE>
<CAPTION>
                                                                                                Overadvance
                                                           Overadvance                            Amount
                                                         Amount during the                      during the
                  Month                                 End of Month Period                  Intramonth Period
                  --------------------------------------------------------------------------------------------
                  <S>                                   <C>                                  <C>
                  January 1998                            $    -0-                              $   4,200,000
                  February 1998                                -0-                                  1,764,000
                  March 1998                                   -0-                                    216,000
                  April 1998                                1,828,000                               4,000,000
                  May 1998                                  3,394,000                               5,828,000
                  June 1998                                 5,220,000                               7,394,000
                  July 1998                                 7,347,000                              11,000,000
                  August 1998                               5,734,000                              11,347,000
                  September 1998                             461,000                                9,734,000
                  October 1998                                 -0-                                  4,461,000
                  November 1998                                -0-                                        -0-

                                       2

<PAGE>

                  December 1998                                -0-                                        -0-
                  January 1999                                 -0-                                        -0-
                  February 1999                                -0-                                  1,764,000
                  March 1999                                   -0-                                    216,000

</TABLE>

                  For purposes of this paragraph, (i) the term "End of Month
                  Period" shall mean the period commencing on the last Business
                  Day of a month and ending on the fifth day of the immediately
                  following month and (ii) the term "Intramonth Period" shall
                  mean the period commencing on the sixth day of a month and
                  ending on the day immediately preceding the last Business Day
                  of the same month."

     1.3 Section 2.01(b) of the Credit Agreement is hereby amended by amending
the proviso to the second sentence thereof to read in its entirety as follows:

                  "provided, however, that in no event shall the aggregate
                  principal amount of Revolving Credit Loan outstanding at any
                  time to the Borrowers exceed $60,000,000."

     1.4 Section 2.09(d) of the Credit Agreement is hereby amended by deleting
the phrase "in excess of $2,000,000 in the aggregate" from the second sentence
thereof, by substituting "1997" for "1996" in such sentence and by adding the
following additional sentences to such subsection to read in their entirety as
follows:

                  "Within one (1) Business Day of the sale or other disposition
                  of any assets of the Parent and/or any of its subsidiaries
                  (excluding sales of inventory in the ordinary course of
                  business), the Borrowers shall make a mandatory prepayment of
                  the Term Loans in an amount equal to 100% of the proceeds
                  received (net of taxes due and any reasonable expenses of
                  sale) which proceeds shall be applied as set forth in
                  paragraph (f) below. Nothing contained in this paragraph (d)
                  shall be or be deemed to be a consent to the sale of any
                  assets."

     1.5 Section 2.17(c) of the Credit Agreement is hereby amended by deleting
the reference to "$70,000,000" at the end of the second sentence thereof and
substituting therefore a reference to "$60,000,000."

     1.6 A new Section numbered Section 4.23 shall be added to the Credit
Agreement to read in its entirety as follows:

                           "Section 4.23. Year 2000. The Cost to the Borrowers
                  of reprogramming and testing of the Borrowers' computer
                  systems and related equipment to permit proper functioning in
                  and following the year 2000 and of the reasonably foreseeable
                  consequences of year 2000 to the Borrowers (including,
                  without limitation, reprogramming errors and the failure of
                  others' systems or equipment) will not result in a Default or
                  have a Material Adverse Effect."

                                       3
<PAGE>


     1.7 Subsection (b) of Section 6.03 (Insurance) of the Credit Agreement is
hereby amended by adding thereto the following additional proviso:

                  "and provided, further, that at all times the Borrowers shall
                  keep in full force and effect the directors and officers
                  liability insurance presently being maintained, and in the
                  amounts presently being maintained,"

     1.8 Subsections (a) and (b) of Section 6.05 of the Credit Agreement are
hereby amended in their entirety to read as follows:

                           "(a) within 90 days after the end of each Fiscal
                  year, (i) a Consolidated balance sheet and income statement
                  showing the financial condition of the Parent and it
                  subsidiaries as of the close of such Fiscal Year and the
                  results of their operations during such year, and (ii) a
                  Consolidated statement of shareholders' equity and a
                  Consolidated statement of cash flow, as of the close of such
                  Fiscal Year, all the foregoing Consolidated financial
                  statements to be audited by independent public accountants
                  acceptable to the Administrative Agent (which report shall
                  not contain any qualification except with respect to new
                  accounting principles mandated by the Financial Accounting
                  Standards Board) and to be in form and substance acceptable
                  to the Administrative Agent.

                           (b) within 45 days after the end of each of the
                  first three fiscal quarters, (i) an unaudited Consolidated
                  balance sheet and income statement showing the financial
                  condition and results of operations of the Parent and its
                  subsidiaries as of the end of each such quarter and (ii) a
                  Consolidated statement of cash flow for the fiscal quarter
                  just ended and prepared and certified by the Financial
                  Officer of the Parent as presenting fairly the financial
                  condition and results of operations of the Parent and its
                  subsidiaries and as having been prepared in accordance with
                  GAAP, subject to normal year-end audit adjustments."

     1.9 A new Section numbered 6.16 shall be added to the Credit Agreement to
read in its entirety as follows:

                           "Section 6.16. Year 2000. Take all actions necessary
                  to complete by January 1, 1999 any reprogramming required to
                  permit the proper functioning, in and following the year
                  2000, of (i) the Borrowers' computer systems and (ii)
                  equipment containing embedded microchips (including systems
                  and equipment supplied by others or with which Borrowers'
                  systems interface) and the testing of all such systems and
                  equipment, as so programmed."

     1.10 Sections 7.07, 7.11 and 7.12 of the Credit Agreement are hereby
amended in their entirety to read as follows:

                                       4

<PAGE>


                           "SECTION 7.07. Capital Expenditures. Permit the
                  aggregate amount of payments made for capital expenditures,
                  including Capitalized Lease Obligations and Indebtedness
                  secured by Liens permitted under Section 7.01(e) hereof, in
                  Fiscal Year 1998 to exceed $3,500,000 for the Parent and its
                  subsidiaries on a Consolidated basis.

                           SECTION 7.11. Pre-Tax Income. Permit Net Income of
                  the Parent and its Subsidiaries (in each case computed and
                  calculated in accordance with GAAP) on a Consolidated basis
                  in any Fiscal Year to be less than $750,000.

                           SECTION 7.12.  Tangible Net Worth.  Permit the
                  Tangible Net Worth of the Parent and its Subsidiaries on a
                  Consolidated basis to be less than (a) $17,500,000 at any
                  time through August 31, 1998 and (b) $19,500,000 at any
                  time thereafter."

     1.11 Subparagraph (j) of Article VIII is hereby amended in its entirety to
read as follows:

                           "(j) (x) a judgment (not reimbursed by insurance
                  policies of any Loan Party) or decree for the payment of
                  money, a fine or penalty which when taken together with all
                  other such judgments, decrees, fines and penalties shall
                  exceed $325,000 shall be rendered by a court or other
                  tribunal against any Loan Party and (i) shall remain
                  undischarged or unbonded for a period of 30 consecutive days
                  during which the execution of such judgment, decree, fine or
                  penalty shall not have been stayed effectively or (ii) any
                  judgment creditor or other person shall legally commence
                  actions to collect on or enforce such judgment, decree, fine
                  or penalty, or (y) Borrowers' directors and officers
                  liability insurance carriers at any time for any reason shall
                  either deny liability to pay or fail to pay any judgment,
                  award or settlement amount arising from or in connection with
                  the shareholders' litigation pending against the Borrowers
                  and certain Affiliates."

     1.12 Schedule 2.01(b) annexed to the Credit Agreement is hereby amended in
its entirety to read as Schedule 2.01(b) annexed hereto.

     1.13 Except for the specific amendments set forth in Sections 1.1 through
1.12, nothing herein shall be deemed to be an amendment of any covenant or
agreement contained in the Credit Agreement, and the Borrowers and Guarantors
hereby agree that all of the covenants and agreements contained in the Credit
Agreement, are hereby ratified and confirmed in all respects.

                                       5
<PAGE>


                  SECTION 2.        CONDITIONS PRECEDENT

                  Section 1 of this Tenth Amendment Agreement shall become
effective upon the execution and delivery of counterparts hereof by the parties
listed below and the fulfillment of the following conditions:

                  (1)      The representations and warranties contained in
                           Article V of the Credit  Agreement shall be
                           true and correct in all material respects.

                  (1)      No unwaived event has occurred and is continuing
                           which constitutes an Event of Default under the
                           Credit Agreement or would constitute such an Event
                           of Default but for the requirement that notice be
                           given or time elapse or both.

                  (2)      The Agent shall have received for the ratable
                           benefit of the Lenders a waiver and amendment fee in
                           the amount of $100,000.

                  SECTION 3.        MISCELLANEOUS

                  3.1 The Borrowers reaffirm and restate the representations
and warranties set forth in Article V of the Credit Agreement and all such
representations and warranties shall be true and correct in all material
respects on the date hereof with the same force and effect as if made on such
date, except as they may specifically refer to an earlier date.

                  3.2 Except as herein expressly amended, the Credit Agreement
is ratified and confirmed in all respects and shall remain in full force and
effect in accordance with its terms.

                  3.3 This Tenth Amendment Agreement may be executed by the
parties hereto individually or in combination, in one or more counterparts,
each of which shall be an original and all of which shall constitute one and
the same agreement. Delivery of an executed counterpart of a signature page by
telecopier shall be effective as delivery of a manually executed counterpart.

                  3.4 THIS TENTH AMENDMENT AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF
NEW YORK.

                  3.5 The parties hereto shall, at any time and from time to
time following the execution of this Tenth Amendment Agreement, execute and
deliver all such further instruments.


                                       6
<PAGE>


and take all such further action as may be reasonably necessary or appropriate
in order to carry out the provisions of this First Amendment Agreement.

                         THE CHASE MANHATTAN BANK
                            as Agent and Lender

                         By:   /s/Jay Linde
                         ---------------------------------
                               Name:  Jay Linde
                               Title:  Vice President

                         THE CIT GROUP/COMMERCIAL SERVICES,
                             INC., as Administrative Agent and Lender

                         By:   /s/Lori Kudish
                         ---------------------------------
                               Name:  Lori Kudish
                               Title:  Associate Vice President

                         THE BANK OF NEW YORK,
                             as Lender

                         By:
                         ---------------------------------
                               Name:  Joanne Collett
                               Title:  Vice President

                         FLEET BANK N.A., as a Lender

                         By:   /s/Amy H. Witryol
                         ---------------------------------
                               Name:  Amy H. Witryol
                               Title:  Vice President

                                       7
<PAGE>




                         DONNKENNY APPAREL, INC.,
                             as a Borrower

                         By:   /s/ Stuart S. Levy
                         ---------------------------------
                               Name:  Stuart S. Levy
                               Title:  Vice President of Finance

                         BELDOCH INDUSTRIES CORPORATION,
                             as a Borrower

                         By:   /s/ Stuart S. Levy
                         ---------------------------------
                               Name:  Stuart S. Levy
                               Title:  Vice President of Finance

                         MEGAKNITS, INC., as a Borrower

                         By:   /s/ Stuart S. Levy
                         ---------------------------------
                               Name:  Stuart S. Levy
                               Title:  Vice President of Finance

                         DONNKENNY, INC., as a Guarantor

                         By:   /s/ Stuart S. Levy
                         ---------------------------------
                               Name:  Stuart S. Levy
                               Title:  Vice President of Finance

                         CHRISTIANSBURG GARMENT COMPANY,
                             INCORPORATED, as a Guarantor

                         By:   /s/ Stuart S. Levy
                         ---------------------------------
                               Name:  Stuart S. Levy
                               Title:  Vice President of Finance


                                       8
<PAGE>



                                SCHEDULE 2.01(b)

                          Revolving Credit Commitments
<TABLE>
<CAPTION>

                                                                                                Approximate
                                                                   Revolving                   Percentage of
                                                                    Credit                    Total Revolving
Lender                                                            Commitment                 Credit Commitment
------                                                            ----------                 -----------------
<S>                                                               <C>                            <C>
The Chase Manhattan Bank                                          $29,814,770                    35.0762%
1411 Broadway
5th Floor
New York, NY  10018
Attn:  Jay T. Linde

The Bank of New York                                              $21,296,325                    25.0545%
One Wall Street
New York, NY  10286
Attn:  Joanne M. Collett

Fleet Bank N.A.                                                   $21,296,325                    25.0545%
777 Main Street
Hartford, CT  06115
Attn: Ed Walsh

The CIT Group/Commercial Services, Inc.                           $12,592,580                    14.8148%
1211 Avenue of the Americas
New York, NY  10036
Attn: Lori Kudish
</TABLE>


                      Sublimit for Revolving Credit Loans
                      -----------------------------------
<TABLE>
<CAPTION>
                                                                                                Approximate
Lender                                                             Sublimit                      Percentage
------                                                             --------                     -----------
<S>                                                               <C>                            <C>
The Chase Manhattan Bank                                          $21,045,720                    35.0762%

The Bank of New York                                              $15,032,700                    25.0545%

Fleet Bank                                                        $15,032,700                    25.0545%

The CIT Group/Commercial Services, Inc.                           $ 8,888,880                    14.8148%

</TABLE>




                                       9