Document:

<PAGE>

                                 Exhibit 10.1

CONTACTS
----------------------------------------------------------------------------

    Administrator:             Barbara A Campbell
    Direct Phone No:           (714)247-6278
    Address:                   Deutsche Bank
                               1761 E. St. Andrew Place
                               Santa Ana, CA 92705

    Web Site:                  http://www-apps.gis.deutsche-bank.com/invr
    Factor Information:        (800) 735-7777
    Main Phone No:             (714) 247-6000
----------------------------------------------------------------------------

ISSUANCE INFORMATION
<TABLE>
--------------------------------------------------------------------------------------------------------------------------------
    <S>                     <C>                                                     <C>                     <C>
    Seller:                 GreenPoint Mortgage                                     Cut-Off Date:           February 28, 2001
    Certificate Insurer:    Financial Guaranty Insurance Corporation                Closing Date:           April 12, 2001
    Servicer(s):            GreenPoint Mortgage - Master Servicer                   First Payment Date      May 15, 2001

    Underwriter(s):         Lehman Brothers Securities Corporation - Underwriter    Distribution Date:      June 15, 2001
                                                                                    Record Date:            June 14, 2001
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

                   GreenPoint Home Equity Loan Trust 2001-1
                  Home Equity Loan Asset-Backed Certificates
                                 Series 2001-1
           Certificate Payment Report for June 15, 2001 Distribution

Distribution in Dollars - Current Period
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
                                       Prior                                                                              Current
          Class        Original      Principal                                  Total        Realized       Deferred    Principal
 Class     Type       Face Value     Balance        Interest     Principal    Distribution   Losses         Interest      Balance
------------------------------------------------------------------------------------------------------------------------------------
<S>      <C>        <C>              <C>            <C>          <C>          <C>            <C>            <C>        <C>
                                       (1)             (2)          (3)       (4)=(2)+(3)       (5)             (6)    (7)=(1)-(3)-
                                                                                                                         (5)+(6)
------------------------------------------------------------------------------------------------------------------------------------

  A-1    FLT,STEP   196,178,000.00   192,953,392.98   721,525.09   4,831,035.31  5,552,560.40         -           -  188,122,357.67
  A-2    FLT,STEP   106,801,000.00   105,745,685,25   396,333.36     937,695.50  1,334,028.86         -           -  104,807,989,75
   R        R                    -                -            -              -             -         -           -               -
------------------------------------------------------------------------------------------------------------------------------------
 Total              302,979,000.00   298,699,078.23 1,117,858.45   5,768,730.81  6,886,589.26         -           -  292,930,347.42
------------------------------------------------------------------------------------------------------------------------------------

<CAPTION>
Interest Accrual Detail               Current Period Factor Information per $1,000 of Original Face
------------------------------------------------------------------------------------------------------------------------------------
 <S>    <C>       <C>       <C>        <C>      <C>               <C>           <C>         <C>          <C>          <C>
                                                 Orig. Principal   Prior                                                Current
         Period    Period                        (with Notional   Principal                                 Total      Principal
 Class  Starting   Ending    Method     Cusip        Balance       Balance      Interest      Principal   Distribution   Balance
------------------------------------------------------------------------------------------------------------------------------------
                                                                    (1)          (2)         (3)         (4)=(2)+(3)        (5)
------------------------------------------------------------------------------------------------------------------------------------
  A-1   05/15/01  06/14/01  A-Act/360  395385AJ6  196,178,000.00  983.562851   3.677910      24.625775   28.303685     958.937076
  A-2   05/15/01  06/14/01  A-Act/360  395385AK3  106,801,000.00  990.118868   3.710952       8.779838   12.490790     981.339030
   R                                -                          -           -          -              -           -              -
------------------------------------------------------------------------------------------------------------------------------------

<CAPTION>
Distribution in Dollars - to Date
------------------------------------------------------------------------------------------------------------------------------------
 <S>      <C>             <C>         <C>            <C>            <C>          <C>             <C>          <C>         <C>
                                                                                                                           Current
           Original                   Unscheduled    Scheduled        Total          Total       Realized     Deferred    Principal
 Class    Face Value      Interest     Principal     Principal      Principal    Distribution     Losses      Interest     Balance
------------------------------------------------------------------------------------------------------------------------------------
             (1)            (2)          (3)           (4)        (5)=(3)+(4)    (6)=(2)+(5)       (7)     (8)         (9)=(1)-(5)-
                                                                                                                          (7)+(8)
------------------------------------------------------------------------------------------------------------------------------------

  A-1   196,178,000.00  1,663,833.42    7,639,779.85   415,862.49   8,055,642.34  9,719,475.76          -        -    188,122,357.67
  A-2   106,801,000.00    910,313.17    1,759,817.77   233,192.48   1,993,010.25  2,903,323.42          -        -    104,807,989.75
   R                 -             -               -            -              -             -          -        -                 -
------------------------------------------------------------------------------------------------------------------------------------
 Total  302,979,000.00  2,574,146.59    9,399,597.62   649,054.97  10,048,652.59 12,622,799.18          -        -    292,930,347.42
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
Interest Detail
------------------------------------------------------------------------------------------------------------------------------------
          Pass-     Prior Principal                     Non-          Prior       Unscheduled                  Paid or    Current
         Through    (with Notional)     Accrued      Supported        Unpaid       Interest      Optimal      Deferred     Unpaid
 Class     Rate         Balance        Interest     Interest SF      Interest     Adjustments    Interest     Interest    Interest
------------------------------------------------------------------------------------------------------------------------------------
                                         (1)           (2)            (3)            (4)          (5)=(1)-      (6)      (7)=(5)-(6)
                                                                                                 (2)+(3)+(4
------------------------------------------------------------------------------------------------------------------------------------
<S>      <C>        <C>               <C>            <C>              <C>          <C>         <C>           <C>           <C>
  A-1     4.34250%  192,953,392.98      721,525.09              -              -           -     721,525.09    721,525.09          -
  A-2     4.35250%  105,745,685.25      396,333.36              -              -           -     396,333.36    396,333.36          -
   R                             -               -              -              -           -              -             -          -
------------------------------------------------------------------------------------------------------------------------------------
 Total              298,699,078.23    1,117,858.45              -              -           -   1,117,858.45  1,117,858.45          -
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

--------------------------------------------------------------------------------
                           Collection Account Report
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
SUMMARY                                                                                POOL II          POOL I           TOTAL
-------------------------------------------------------------------------------------------------------------------------------
<S>                                                                               <C>            <C>             <C>
    Net Principal Collections                                                       725,954.43    4,419,042.88     5,144,997.31

    TOTAL PRINCIPAL                                                                 725,954.43    4,419,042.88     5,144,997.31

    Interest Collections                                                            836,244.38    1,575,019.81     2,411,264.19
    Interest Fees                                                                   (16,605.89)     (29,832.85)      (46,438.74)

    TOTAL INTEREST                                                                  819,638.49    1,545,186.96     2,364,825.45

    TOTAL AVAILABLE FUNDS                                                         1,545,592.92    5,964,229.84     7,509,822.76
-------------------------------------------------------------------------------------------------------------------------------

<CAPTION>
PRINCIPAL - COLLECTIONS                                                                POOL II          POOL I            TOTAL
-------------------------------------------------------------------------------------------------------------------------------
<S>                                                                              <C>             <C>             <C>
    Principal Collections                                                         4,351,038.37    8,316,785.31    12,667,823.68
    Repurchases/Substitutions                                                             0.00            0.00             0.00
    Liquidations                                                                          0.00            0.00             0.00
    Insurance Principal                                                                   0.00            0.00             0.00
    Liquidation Loss Amounts                                                              0.00            0.00             0.00
    Additional Balances                                                          (3,625,083.94)  (3,898,542.43)   (7,523,626.37)

    TOTAL PRINCIPAL COLLECTED                                                       725,954.43    4,419,042.88     5,144,997.31
-------------------------------------------------------------------------------------------------------------------------------

<CAPTION>
PRINCIPAL - WITHDRAWALS                                                                POOL II          POOL I            TOTAL
-------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                    <C>              <C>               <C>
                                                  SPACE INTENTIONALLY LEFT BLANK

-------------------------------------------------------------------------------------------------------------------------------

<CAPTION>
PRINCIPAL - OTHER ACCOUNTS                                                             POOL II          POOL I            TOTAL
-------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                    <C>              <C>                <C>
                                                  SPACE INTENTIONALLY LEFT BLANK

-------------------------------------------------------------------------------------------------------------------------------

<CAPTION>
INTEREST - COLLECTIONS                                                                 POOL II          POOL I            TOTAL
-------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                <C>           <C>              <C>
    Interest Collections                                                            880,474.39    1,655,739.18     2,536,213.57
    Repurchases/Substitutions                                                             0.00            0.00             0.00
    Liquidations                                                                          0.00            0.00             0.00
    Insurance Interest                                                                    0.00            0.00             0.00
    Other Additional Interest                                                             0.00            0.00             0.00
    Current Servicing Fee                                                           (44,230.01)     (80,719.37)     (124,949.38)

    TOTAL INTEREST                                                                  836,244.38    1,575,019.81     2,411,264.19
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
INTEREST - WITHDRAWALS                                                          POOL II          POOL I            TOTAL
-------------------------------------------------------------------------------------------------------------------------
<S>                                                                             <C>              <C>               <C>
                                    SPACE INTENTIONALLY LEFT BLANK

-------------------------------------------------------------------------------------------------------------------------

INTEREST - OTHER ACCOUNTS                                                       POOL II          POOL I            TOTAL
-------------------------------------------------------------------------------------------------------------------------
                                    SPACE INTENTIONALLY LEFT BLANK

-------------------------------------------------------------------------------------------------------------------------

INTEREST - FEES                                                                 POOL II          POOL I            TOTAL
-------------------------------------------------------------------------------------------------------------------------

    Trustee Fee                                                                  707.68        1,291.51         1,999.19
    Certificate Insurer Premium                                               15,721.20       28,218.35        43,939.55
    Management Fee                                                               177.01          322.99           500.00

    TOTAL INTEREST  FEES                                                      16,605.89       29,832.85        46,438.74

-------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

--------------------------------------------------------------------------------
                            Credit Enhancement Report
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
ACCOUNTS                                                                               POOL II          POOL I            TOTAL
--------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                    <C>              <C>               <C>
    Beginning Reserve Fund Balance                                                                                 1,179,724.79
    Curr Period Amounts Dep to Res Fund                                                                              623,733.50
    Curr Withdrawal from Reserve Fund                                                                                      0.00
    Reserve Fund Balance                                                                                           1,803,458.29

--------------------------------------------------------------------------------------------------------------------------------

INSURANCE                                                                              POOL II          POOL I            TOTAL
--------------------------------------------------------------------------------------------------------------------------------

    Insured Amount                                                                        0.00            0.00             0.00
    Reimbursements to the Insurer                                                         0.00            0.00             0.00
    Cumulative Insurance Payment                                                          0.00            0.00             0.00

    Draws on the Policy                                                                   0.00            0.00             0.00
    Draws on the Demand Note                                                              0.00            0.00             0.00

    Interest portion of Guarantee Payment                                                 0.00            0.00             0.00
    Principal portion of Guarantee Payment                                                0.00            0.00             0.00
    Guarantee Payment for this date                                                       0.00            0.00             0.00
    Cumulative Guaranty Payments                                                          0.00            0.00             0.00

--------------------------------------------------------------------------------------------------------------------------------

STRUCTURAL FEATURES                                                                    POOL II          POOL I            TOTAL
--------------------------------------------------------------------------------------------------------------------------------

    Three Month Average Net Excess Spread Amount                                        0.0000%         0.0000%
    Rolling Six-month Pool Delinquency Rate                                             0.0000%         0.0000%

    Prior Overcollateralization Amount                                              406,328.04      773,906.74     1,180,234.78
    Specified Overcollateralization Amount                                        3,866,074.60    4,028,876.52     7,894,951.12
    Overcollateralization Amount                                                    406,328.04      773,906.74     1,180,234.78
    Overcollateralization Deficiency Amount                                       3,459,746.56    3,254,969.78     6,714,716.34

    Overcollateralization Deficit                                                         0.00            0.00             0.00
    Overcollateralization Reduction Amount                                                0.00            0.00             0.00
    Step-Up Overcollateralization Amount                                          3,866,074.60    4,028,876.52     7,894,951.12

    Current Accelerated Principal Payment                                           211,741.07      411,992.43       623,733.50
    Cumulative Accelerated Principal Payment                                        617,886.71    1,185,571.58     1,803,458.29
</TABLE>
--------------------------------------------------------------------------------
<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
                                                         Collateral Report
------------------------------------------------------------------------------------------------------------------------------

    COLLATERAL                                                                  POOL II          POOL I            TOTAL
------------------------------------------------------------------------------------------------------------------------------
<S>                                                                    <C>             <C>              <C>
      Loan Count:
    Original                                                                     1191            4428             5619
    Prior                                                                       1,132           4,267            5,399
    Prefunding                                                                      -               -                -
    Scheduled Paid Offs                                                             -               -                -
    Full Voluntary Prepayments                                                    (35)           (113)            (148)
    Repurchases                                                                     -               -                -
    Liquidations                                                                    -               -                -
    --------------------------------------------------------------------------------------------------------------------------
    Current                                                                     1,097           4,154            5,251

    Principal Balance:
    Original                                                           106,801,182.40  196,178,327.60   302,979,510.00
    Prior                                                              106,152,013.29  193,727,299.72   299,879,313.01
    Prefunding                                                           3,625,083.94    3,897,742.43     7,522,826.37
    Scheduled Principal                                                   (171,032.10)    (322,156.34)     (493,188.44)
    Partial and Full Voluntary Prepayments                              (4,180,006.27)  (7,994,628.97)  (12,174,635.24)
    Repurchases                                                                     -               -                -
------------------------------------------------------------------------------------------------------------------------------
    Liquidations                                                                    -               -                -
    Current                                                            105,426,058.86  189,308,256.84   294,734,315.70
------------------------------------------------------------------------------------------------------------------------------
<CAPTION>

PREFUNDING                                                                      POOL II          POOL I            TOTAL
------------------------------------------------------------------------------------------------------------------------------
<S>                                                                             <C>              <C>               <C>
                                                  SPACE INTENTIONALLY LEFT BLANK

------------------------------------------------------------------------------------------------------------------------------

<CAPTION>

CHARACTERISTICS                                                                 POOL II          POOL I            TOTAL
------------------------------------------------------------------------------------------------------------------------------
<S>                                                                         <C>             <C>              <C>
    Weighted Average Coupon Original                                         9.879188%      10.019075%        9.969764%
    Weighted Average Coupon Prior                                            9.879188%      10.019075%        9.969764%
    Weighted Average Coupon Current                                         10.479307%      10.572115%       10.539263%
------------------------------------------------------------------------------------------------------------------------------
    Weighted Average Months to Maturity Original                                  189             195              193
    Weighted Average Months to Maturity Prior                                     189             195              193
    Weighted Average Months to Maturity Current                                   188             194              192
------------------------------------------------------------------------------------------------------------------------------
    Weighted Avg Remaining Amortization Term Original                             196             213              207
    Weighted Avg Remaining Amortization Term Prior                                196             213              207
    Weighted Avg Remaining Amortization Term Current                              194             211              205
------------------------------------------------------------------------------------------------------------------------------
    Weighted Average Seasoning Original                                          2.92            3.09             3.03
    Weighted Average Seasoning Prior                                             2.92            3.09             3.03
    Weighted Average Seasoning Current                                           3.93            4.07             4.02
------------------------------------------------------------------------------------------------------------------------------
</TABLE>

Note:  Original information refers to deal issue.
<PAGE>

<TABLE>
<CAPTION>
ARM CHARACTERISTICS                                                                      POOL II          POOL I           TOTAL
----------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                     <C>             <C>             <C>
    Weighted Average Margin Original                                                     293.006%        228.112%
    Weighted Average Margin Prior                                                        293.006%        228.112%
    Weighted Average Margin Current                                                      292.855%        228.156%
    ------------------------------------------------------------------------------------------------------------------------------
    Weighted Average Max Rate Original                                                    17.033%         14.638%
    Weighted Average Max Rate Prior                                                       17.033%         14.638%
    Weighted Average Max Rate Current                                                     17.056%         14.796%
    ------------------------------------------------------------------------------------------------------------------------------
    Weighted Average Min Rate Original                                                     2.930%          2.281%
    Weighted Average Min Rate Prior                                                        2.930%          2.281%
    Weighted Average Min Rate Current                                                      2.929%          2.282%
    ------------------------------------------------------------------------------------------------------------------------------
    Weighted Average Cap Up Original
    Weighted Average Cap Up Prior
    Weighted Average Cap Up Current
    ------------------------------------------------------------------------------------------------------------------------------
    Weighted Average Cap Down Original
    Weighted Average Cap Down Prior
    Weighted Average Cap Down Current

----------------------------------------------------------------------------------------------------------------------------------
Note:  Original information refers to deal issue.

<CAPTION>
SERVICING FEES / ADVANCES                                                                POOL II          POOL I           TOTAL
----------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                    <C>             <C>             <C>
    TOTAL SERVICING FEE                                                                44,230.01       80,719.37       124,949.38

----------------------------------------------------------------------------------------------------------------------------------

<CAPTION>
ADDITIONAL COLLATERAL INFORMATION                                                        POOL II          POOL I           TOTAL
----------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                      <C>              <C>              <C>
                                                  SPACE INTENTIONALLY LEFT BLANK

----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

--------------------------------------------------------------------------------
                          Delinquency Report - Total
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                            CURRENT       1 PAYMENT       2  PAYMTS      3+  PAYMTS            TOTAL
--------------------------------------------------------------------------------------------------------------------------
<S>                                      <C>            <C>             <C>            <C>            <C>
DELINQUENT   Balance                                      2,365,088.62     714,250.71     28,000.00     3,107,339.33
             % Balance                                            0.80%          0.24%         0.01%            1.05%
             # Loans                                                34             17             1               52
             % # Loans                                            0.65%          0.32%         0.02%            0.99%
--------------------------------------------------------------------------------------------------------------------------
FORECLOSURE  Balance                              -                  -              -  1,015,478.80     1,015,478.80
             % Balance                         0.00%              0.00%          0.00%         0.34%            0.34%
             # Loans                              -                  -              -             5                5
             % # Loans                         0.00%              0.00%          0.00%         0.10%            0.10%
--------------------------------------------------------------------------------------------------------------------------
BANKRUPTCY   Balance                     128,533.85                  -              -    140,633.34       269,167.19
             % Balance                         0.04%              0.00%          0.00%         0.05%            0.09%
             # Loans                              4                  -              -             1                5
             % # Loans                         0.08%              0.00%          0.00%         0.02%            0.10%
--------------------------------------------------------------------------------------------------------------------------
REO          Balance                              -                  -              -             -                -
             % Balance                         0.00%              0.00%          0.00%         0.00%            0.00%
             # Loans                              -                  -              -             -                -
             % # Loans                         0.00%              0.00%          0.00%         0.00%            0.00%
--------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------
TOTAL        Balance                     128,533.85       2,365,088.62     714,250.71  1,184,112.14     4,391,985.32
             % Balance                         0.04%              0.80%          0.24%         0.40%            1.49%
             # Loans                              4                 34             17             7               62
             % # Loans                         0.08%              0.65%          0.32%         0.13%            1.18%
--------------------------------------------------------------------------------------------------------------------------
</TABLE>

Note: Current = 0-29days, 1 Payment =30-59days, 2 Payments = 60-89days, 3+
Payments = 90+

--------------------------------------------------------------------------------
                       Delinquency Report - Pool I Group
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
                                                        CURRENT       1 PAYMENT       2  PAYMTS      3+  PAYMTS           TOTAL
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                  <C>         <C>              <C>             <C>             <C>
DELINQUENT           Balance                                       1,272,014.94      575,250.71       28,000.00     1,875,265.65
                     % Balance                                             0.67%           0.30%           0.01%            0.99%
                     # Loans                                                 27              14               1               42
                     % # Loans                                             0.65%           0.34%           0.02%            1.01%
------------------------------------------------------------------------------------------------------------------------------------
FORECLOSURE          Balance                                  -               -               -      228,200.00       228,200.00
                     % Balance                             0.00%           0.00%           0.00%           0.12%            0.12%
                     # Loans                                  -               -               -               3                3
                     % # Loans                             0.00%           0.00%           0.00%           0.07%            0.07%
-----------------------------------------------------------------------------------------------------------------------------------
BANKRUPTCY           Balance                         128,533.85               -               -               -       128,533.85
                     % Balance                             0.07%           0.00%           0.00%           0.00%            0.07%
                     # Loans                                  4               -               -               -                4
                     % # Loans                             0.10%           0.00%           0.00%           0.00%            0.10%
------------------------------------------------------------------------------------------------------------------------------------
REO                  Balance                                  -               -               -               -                -
                     % Balance                             0.00%           0.00%           0.00%           0.00%            0.00%
                     # Loans                                  -               -               -               -                -
                     % # Loans                             0.00%           0.00%           0.00%           0.00%            0.00%
------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------
TOTAL                Balance                         128,533.85    1,272,014.94      575,250.71      256,200.00     2,231,999.50
                     % Balance                             0.07%           0.67%           0.30%           0.14%            1.18%
                     # Loans                                  4              27              14               4               49
                     % # Loans                             0.10%           0.65%           0.34%           0.10%            1.18%
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

Note: Current = 0-29days, 1 Payment =30-59days, 2 Payments = 60-89days, 3+
Payments = 90+
<PAGE>

--------------------------------------------------------------------------------
                      Delinquency Report - Pool II Group
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                      CURRENT          1 PAYMENT       2  PAYMTS      3+  PAYMTS            TOTAL
------------------------------------------------------------------------------------------------------------------------------------
<S>                                               <C>              <C>               <C>           <C>             <C>
DELINQUENT           Balance                                           1,093,073.68    139,000.00              -     1,232,073.68
                     % Balance                                                 1.04%         0.13%          0.00%            1.17%
                     # Loans                                                      7             3              -               10
                     % # Loans                                                 0.64%         0.27%          0.00%            0.91%
------------------------------------------------------------------------------------------------------------------------------------
FORECLOSURE          Balance                                -                     -             -     787,278.80       787,278.80
                     % Balance                           0.00%                 0.00%         0.00%          0.75%            0.75%
                     # Loans                                -                     -             -              2                2
                     % # Loans                           0.00%                 0.00%         0.00%          0.18%            0.18%
------------------------------------------------------------------------------------------------------------------------------------
BANKRUPTCY           Balance                                -                     -             -     140,633.34       140,633.34
                     % Balance                           0.00%                 0.00%         0.00%          0.13%            0.13%
                     # Loans                                -                     -             -              1                1
                     % # Loans                           0.00%                 0.00%         0.00%          0.09%            0.09%
------------------------------------------------------------------------------------------------------------------------------------
REO                  Balance                                -                     -             -              -                -
                     % Balance                           0.00%                 0.00%         0.00%          0.00%            0.00%
                     # Loans                                -                     -             -              -                -
                     % # Loans                           0.00%                 0.00%         0.00%          0.00%            0.00%
------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------
TOTAL                Balance                                -          1,093,073.68    139,000.00     927,912.14     2,159,985.82
                     % Balance                           0.00%                 1.04%         0.13%          0.88%            2.05%
                     # Loans                                -                     7             3              3               13
                     % # Loans                           0.00%                 0.64%         0.27%          0.27%            1.19%
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

Note: Current = 0-29days, 1 Payment =30-59days, 2 Payments = 60-89days, 3+
Payments = 90+
<PAGE>

--------------------------------------------------------------------------------
    REO Report - Mortgage Loans that Become REO During Current Distribution
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
SUMMARY                                               LOAN GROUP
-----------------------------------------------------------------------------------------------------------------
<S>                                                   <C>
Total Loan Count = 0                                  Loan Group 1 = Pool I Group; REO Book Value = 000.00
Total Original Principal Balance = 000.00             Loan Group 2 = Pool II Group; REO Book Value = 000.00
Total Current Balance = 000.00
REO Book Value = 000.00

-----------------------------------------------------------------------------------------------------------------
</TABLE>

REO Book Value reported corresponds to total REO loans, including loans that
become REO during current distribution.

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
   Loan Number      Original     Stated                  Current     State &
        &          Principal    Principal    Paid to       Note       LTV at       Original    Origination
    Loan Group      Balance      Balance      Date         Rate     Origination      Term          Date
-----------------------------------------------------------------------------------------------------------------
<S>                <C>          <C>          <C>         <C>        <C>            <C>         <C>
                                           SPACE INTENTIONALLY LEFT BLANK

-----------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

--------------------------------------------------------------------------------
                   Prepayment Report - Voluntary Prepayments
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
VOLUNTARY PREPAYMENTS                                                             POOL II          POOL I            TOTAL
--------------------------------------------------------------------------------------------------------------------------
<S>                                                                         <C>             <C>              <C>
    Current
    Number of Paid in Full Loans                                                       35             113              148
    Number of Repurchased Loans                                                         -               -                -
    ----------------------------------------------------------------------------------------------------------------------
    Total Number of Loans Prepaid in Full                                              35             113              148

    Paid in Full Balance                                                     2,772,455.59    6,022,826.79     8,795,282.38
    Repurchased Loans Balance                                                           -               -                -
    Curtailments Amount                                                      1,407,550.68    1,971,802.18     3,379,352.86
    ----------------------------------------------------------------------------------------------------------------------
    Total Prepayment Amount                                                  4,180,006.27    7,994,628.97    12,174,635.24

    Cumulative
    Number of Paid in Full Loans                                                       94             274              368
    Number of Repurchased Loans                                                         -               -                -
    ----------------------------------------------------------------------------------------------------------------------
    Total Number of Loans Prepaid in Full                                              94             274              368

    Paid in Full Balance                                                     8,237,022.69   14,159,990.68    22,397,013.37
    Repurchased Loans Balance                                                           -               -                -
    Curtailments Amount                                                      6,073,337.91    8,039,070.38    14,112,408.29
    ----------------------------------------------------------------------------------------------------------------------
    Total Prepayment Amount                                                 14,310,360.60   22,199,061.06    36,509,421.66

                                           SPACE INTENTIONALLY LEFT BLANK

--------------------------------------------------------------------------------------------------------------------------
<CAPTION>
VOLUNTARY PREPAYMENT RATES                                                        POOL II          POOL I            TOTAL
---------------------------------------------------------------------------------------------------------------------------
<S>                                                                              <C>             <C>              <C>
    SMM                                                                             3.94%           4.13%            4.07%
    3 Months Avg SMM
    12 Months Avg SMM
    Avg SMM Since Cut-off                                                           6.76%           5.70%            6.07%

    CPR                                                                            38.30%          39.74%           39.24%
    3 Months Avg CPR
    12 Months Avg CPR
    Avg CPR Since Cut-off                                                          56.82%          50.56%           52.84%

    PSA                                                                          4868.73%        4877.57%         4875.59%
    3 Months Avg  PSA Approximation
    12 Months Avg PSA Approximation
    Avg PSA Since Cut-off Approximation                                          8287.95%        7057.57%         7490.90%

---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

PREPAYMENT CALCULATION METHODOLOGY

<TABLE>
    <S>                              <C>
------------------------------------------------------------------------------------------------------------------------------------
    Single Monthly Mortality (SMM):  (Voluntary partial and full prepayments + Repurchases)/(Beg Principal Balance - Sched
    Principal)

    Conditional Prepayment Rate (CPR): 1-((1-SMM)[]12)

    PSA Standard Prepayment Model:  CPR/(0.02*min(30,WAS))

    Average SMM over period between nth month and mth month (AvgSMMn,m): [(1-SMMn) * (1-SMMn+1) *.......*(1-SMMm)][](1/months in
    period n,m)

    Average CPR over period between the nth month and mth month    (AvgCPRn,m):  1-((1-AvgSMMn,m)[]12)

    Average PSA Approximation over period between the nth month and mth month:  AvgCPRn,m/(0.02*Avg WASn,m))

    Average WASn,m: (min(30,WASn)+min(30,WASn+1)+.......+min(30,WASm)/(number of months in the period n,m)

    Weighted Average Seasoning (WAS)

    Note:  Prepayment rates are calculated since deal issue date and include partial and full voluntary prepayments and repurchases.
           Dates correspond to distribution dates.
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

--------------------------------------------------------------------------------
                       Realized Loss Report - Collateral
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>

COLLATERAL REALIZED LOSSES                                                                   POOL II          POOL I         TOTAL
------------------------------------------------------------------------------------------------------------------------------------
    <S>                                                                                      <C>              <C>           <C>
    Current
    Number of Loans Liquidated                                                                      -             -              -
    Collateral Realized Loss/(Gain) Amount                                                          -             -              -
    Net Liquidation Proceeds                                                                        -             -              -

    Cumulative
    Number of Loans Liquidated                                                                      -             -              -
    Collateral Realized Loss/(Gain) Amount                                                          -             -              -
    Net Liquidation Proceeds                                                                        -             -              -

    Note: Collateral realized losses may include adjustments to loans liquidated in
          prior periods.

    Cumulative Losses as % of Original Balance                                                 0.0000%       0.0000%        0.0000%

    Cumulative Losses as % of Current Balance                                                  0.0000%       0.0000%        0.0000%

------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
DEFAULT SPEEDS                                                                               POOL II          POOL I         TOTAL
------------------------------------------------------------------------------------------------------------------------------------
    <S>                                                                                      <C>            <C>             <C>
    MDR                                                                                          0.00%         0.00%          0.00%
    3 Months Avg MDR
    12 Months Avg MDR
    Avg MDR Since Cut-off                                                                        0.00%         0.00%          0.00%

    CDR                                                                                          0.00%         0.00%          0.00%
    3 Months Avg CDR
    12 Months Avg CDR
    Avg CDR Since Cut-off                                                                        0.00%         0.00%          0.00%

    SDA                                                                                          0.00%         0.00%          0.00%
    3 Months Avg  SDA Approximation
    12 Months Avg SDA Approximation
    Avg SDA Since Cut-off Approximation                                                          0.00%         0.00%          0.00%

    Loss Severity Approximation for Current Period
    3 Months Avg Loss Severity Approximation
    12 Months Avg Loss Severity Approximation
    Avg  Loss Severity Approximation Since Cut-off

------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

COLLATERAL REALIZED LOSS  CALCULATION METHODOLOGY

<TABLE>
    <S>                            <C>
-----------------------------------------------------------------------------------------------------------------------------------
    Monthly Default Rate (MDR):    (Beg Principal Balance of Liquidated Loans)/(Total Beg Principal Balance)

    Conditional Default Rate (CDR):  1-((1-MDR)[]12)

    SDA Standard Default Assumption:    CDR/IF(WAS**61,MIN(30,WAS)*0.02,MAX(0.03,MIN(30,WAS)*0.02-0.0095*(WAS-60)))

    Average MDR over period between nth month and mth month (AvgMDRn,m):    [(1-MDRn) * (1-MDRn+1) *.......*(1-MDRm)][](1/months in
    period n,m)

    Average CDR over period between the nth month and mth month (AvgCDRn,m):    1-((1-AvgMDRn,m)[]12)

    Average SDA Approximation over period between the nth month and mth month:

    AvgCDRn,m/IF(Avg WASn,m**61,MIN(30,Avg WASn,m)*0.02,MAX(0.03,MIN(30,Avg WASn,m)*0.02-0.0095*(Avg WASn,m-60)))

    Average WASn,m: (WASn + WASn+1 +.......+ WASm )/(number of months in the period n,m)

    Loss Severity Approximation for current period: sum(Realized Loss Amount)/sum(Beg Principal Balance of Liquidated Loans)

    Average Loss Severity Approximation over period between nth month and mth month: Avg(Loss Severityn,m)

    Note: Default rates are calculated since deal issue date and include realized gains and additional realized losses and gains
          from prior periods.

          Dates correspond to distribution dates.

------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

** [less than]
<PAGE>

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
                                  Realized Loss Detail Report - Loans Liquidated During Current Distribution
----------------------------------------------------------------------------------------------------------------------------------

SUMMARY                                                                  LOAN GROUP
---------------------------------------------------------                ---------------------------------------------------------
<S>                                                                      <C>
Total Loan Count                      =     0                            Loan Group 1    =    Pool I Group
Total Original Principal Balance      =  0.00                            Loan Group 2    =    Pool II Group
Total Prior Principal Balance         =  0.00
Total Realized Loss Amount            =  0.00
Total Net Liquidation Proceeds        =  0.00
---------------------------------------------------------                ---------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------------------
   Loan Number               Original         Prior                         Current       State &
        &           Loan     Principal      Principal        Realized        Note          LTV at         Original     Origination
   Loan Group     Status     Balance        Balance        Loss/(Gain)       Rate       Origination         Term          Date
----------------------------------------------------------------------------------------------------------------------------------
                                                  SPACE INTENTIONALLY LEFT BLANK

-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
                                        Triggers, Adj. Rate Cert. and Miscellaneous Report
----------------------------------------------------------------------------------------------------------------------------------

TRIGGER EVENTS                                                                    POOL II          POOL I            TOTAL
----------------------------------------------------------------------------------------------------------------------------------
<S>                                                                              <C>              <C>               <C>
    Servicer Event of Default                                                        No              No               No

    Insurer Default                                                                  No              No               No

----------------------------------------------------------------------------------------------------------------------------------

ADJUSTABLE RATE CERTIFICATE INFORMATION                                            POOL II          POOL I            TOTAL
----------------------------------------------------------------------------------------------------------------------------------
                                                          SPACE INTENTIONALLY LEFT BLANK

----------------------------------------------------------------------------------------------------------------------------------

ADDITIONAL INFORMATION                                                                 POOL II          POOL I            TOTAL
----------------------------------------------------------------------------------------------------------------------------------

    Detail Delinq. Breakdown to Supplement pages 11-13
    Number of Mort. Loans Delinq. 90 -119 days                                                 -               1                1
    Balance of Mort. Loans Delinq. 90 -119 days                                             0.00       28,000.00        28,000.00
    Number of Mort. Loans Delinq. 120 -149 days                                                -               -                -
    Balance of Mort. Loans Delinq. 120 -149 days                                            0.00            0.00             0.00
    Number of Mort. Loans Delinq. 150 -179 days                                                -               -                -
    Balance of Mort. Loans Delinq. 150 -179 days                                            0.00            0.00             0.00
    Number of Mort. Loans Delinq. 180 days or more                                             -               -                -
    Balance of Mort. Loans Delinq. 180 days or more                                         0.00            0.00             0.00
    Count of ALL Loans 180 day plus bucket                                                     -               -                -
    Balance of ALL Loans 180 day plus bucket                                                0.00            0.00             0.00
    Management Fee Accrued and Unpaid                                                     354.02          645.98         1,000.00

-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>Exhibit 10.1

                      AMENDMENT AGREEMENT NO. 4 AND WAIVER

                  AMENDMENT AGREEMENT NO. 4 AND WAIVER, dated as of June 19,
2001 (this "Agreement"), to the Amended and Restated Credit Agreement dated as
of July 9, 1999 (as amended, restated or modified from time to time, the "Credit
Agreement"), among KASPER A.S.L., LTD., a Delaware corporation (the "Borrower"),
the Guarantors named therein, the financial institutions from time to time party
thereto (collectively, the "Lenders"), THE CHASE MANHATTAN BANK, as
administrative and collateral agent for the Lenders (in such capacity, the
"Agent"), and THE CIT GROUP/COMMERCIAL SERVICES, INC., as collateral monitor (in
such capacity, the "Collateral Monitor"). Capitalized terms used herein and not
otherwise defined herein shall have the meanings ascribed to them in the Credit
Agreement.

                  WHEREAS, the Borrower has requested that the Lenders agree (i)
to waive certain Events of Defaults that have occurred and are continuing under
the Credit Agreement and (ii) to amend certain terms and provisions of the
Credit Agreement;

                  WHEREAS, the Lenders have agreed to waive certain Events of
Defaults that have occurred and are continuing under the Credit Agreement and
the Lenders, the Borrower and the Guarantors have agreed to amend the Credit
Agreement, in each case as described herein;

                  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. WAIVERS OF EVENTS OF DEFAULT

                  Upon the fulfillment of the conditions set forth in Section 4
below, the following provisions of the Credit Agreement are hereby waived as
follows:

                  1.1 The Lenders hereby agree to waive any Event of Default
which has occurred and is continuing as a result of the Borrower's failure to
comply with the provisions of Section 7.08 for the period ended on or about
March 31, 2001.

                  1.2 The Lenders hereby agree to waive any Event of Default
which has occurred and is continuing as a result of the Borrower's failure to
comply with the provisions of Section 7.09 for the period ended on or about
March 31, 2001.

                  1.3 The Lenders hereby agree to waive any Event of Default
which has occurred and is continuing as a result of the Borrower's failure to
comply with the provisions of Section 7.10 for the periods ended on or about
February 28, 2001, March 31, 2001, April 30, 2001 and May 31, 2001.

<PAGE>

         SECTION 2. AMENDMENTS TO CREDIT AGREEMENT

                  Upon the fulfillment of the conditions set forth in Section 4
below, the Credit Agreement is hereby amended as follows:

                  2.1 The definitions set forth in Article I of the Credit
Agreement are hereby amended by inserting the following new definition in
appropriate alphabetical order:

                           "Amendment Agreement No. 3" shall mean that certain
                  Amendment Agreement No. 3 and Waiver, dated as of November 13,
                  2000, to the Credit Agreement.

                  2.2 The definition of the term "Obligations" set forth in
Section 1.01 of the Credit Agreement is hereby amended by inserting the
parenthetical phrase "(or any of their Affiliates)" immediately following the
words "Indebtedness of the Borrower to the Lenders" each time the same appears
therein and immediately following the words "so long as any Lender" appearing in
the first parenthesis thereof.

                  2.3 The definition of the term "Trademark Advance" set forth
in Section 1.01 of the Credit Agreement is hereby amended by inserting the words
"fiscal monthly" immediately preceding the words "period as set forth on Exhibit
A annexed hereto" appearing in clause (ii)(y) of such definition.

                  2.4 Section 2.17 of the Credit Agreement is hereby amended (i)
by deleting the amount "$10,000,000" appearing in the first sentence thereof and
inserting in lieu thereof the amount "$15,000,000" and (ii) by inserting the
following proviso at the end of the first sentence thereof:

                  "and provided, further, that no standby Letter of Credit shall
                  be issued for the purchase of inventory other than standby
                  Letters of Credit in the aggregate undrawn face amount not in
                  excess of $500,000 and which are issued for the benefit of
                  Nissho Iwai Textile (USA) Inc., DFK Trading Corp. Ltd. and
                  Union Industries Inc."

                  2.5 Section 7.01 of the Credit Agreement is hereby amended by
inserting the word "; or" at the end of subsection (n) thereof and by inserting
the following new subsection (o) immediately thereafter:

                  "(o) Liens, in an amount not to exceed $1,700,000 in the
                  aggregate, on unearned insurance premiums that are financed by
                  one or more finance companies."

                  2.6 Section 7.03(xii) of the Credit Agreement is hereby
amended in its entirety to read as follows:

                                       2
<PAGE>

                  "and (xii) other Indebtedness of the Borrower and its
                  subsidiaries provided that the aggregate amount of
                  Indebtedness permitted pursuant to this clause (xii) shall not
                  exceed $3,500,000 in the aggregate during the period from and
                  after June 1, 2001 through February 10, 2002, and at any time
                  thereafter, $2,500,000."

                  2.7 Subject to the proviso set forth at the end of this
Section 2.7, Sections 7.08, 7.09 and 7.10 of the Credit Agreement are hereby
amended in their entireties to read as follows (it being understood that if any
of the Senior Notes are converted to equity, the covenant levels set forth in
such Sections shall be recalculated and reset at levels mutually agreed upon
between the Borrower and the Required Lenders):

                           "SECTION 7.08 Capitalization Ratio. Permit the
                  Capitalization Ratio of the Borrower and its subsidiaries on a
                  Consolidated basis for the four consecutive fiscal quarter
                  periods ending on or about the dates set forth below to be
                  greater than the respective amounts set forth below opposite
                  such dates:

         Fiscal Quarter ending                                      Ratio
         ---------------------                                      -----
         on or about
         -----------

         June 30, 2001                                                70%

         September 30, 2001                                           72%

         December 31, 2001                                            70%

         March 31, 2002                                               66%

         June 30, 2002                                                64%

         September 30, 2002                                           65%

         December 31, 2002                                            61%

         March 31, 2003                                               63%

         June 30, 2003                                                63%

         September 30, 2003                                           63%

                                       3
<PAGE>

                           SECTION 7.09 Interest Coverage Ratio. Permit the
                  Interest Coverage Ratio of the Borrower and its subsidiaries
                  on a Consolidated basis for the four consecutive fiscal
                  quarter periods ending on or about the dates set forth below
                  to be less than the respective amounts set forth below
                  opposite such dates:

         Fiscal Quarter ending                                       Ratio
         ---------------------                                       -----
         on or about
         -----------

         June 30, 2001                                              .27:1.00

         September 30, 2001                                         .37:1.00

         December 31, 2001                                          .77:1.00

         March 31, 2002                                            1.40:1.00

         June 30, 2002                                             1.50:1.00

         September 30, 2002                                        1.65:1.00

         December 31, 2002                                         1.80:1.00

         March 31, 2003                                            1.95:1.00

         June 30, 2003                                             2.05:1.00

         September 30, 2003                                        2.25:1.00

                           SECTION 7.10 Net Worth. Permit the Net Worth of the
                  Borrower and its subsidiaries on a Consolidated basis at any
                  time to be less than the respective amounts set forth below
                  for the fiscal periods indicated:

                                       4
<PAGE>

Fiscal Month ending                                          Amount
-------------------                                          ------
on or about
-----------

May 31, 2001                                                 $80,000,000

June 30, 2001                                                $78,000,000

July 31, 2001                                                $78,000,000

August 31, 2001                                              $79,000,000

September 30, 2001                                           $78,000,000

October 31, 2001                                             $78,000,000

November 30, 2001                                            $76,500,000

December 31, 2001                                            $74,500,000

Fiscal Quarter ending
---------------------
on or about
-----------

March 31, 2002                                               $  97,000,000

June 30, 2002                                                $  98,000,000

September 30, 2002                                           $  99,000,000

December 31, 2002                                            $103,000,000

March 31, 2003                                               $104,000,000

June 30, 2003                                                $108,000,000

September 30, 2003                                           $109,000,000

December 31, 2003                                            $115,000,000"

; provided that in the event the Borrower shall make any payment on account of
the principal of, interest on, or any redemption or sinking fund payment in
respect of, any of the Senior Notes, the amendments provided for in this Section

                                       5
<PAGE>

2.7 as well as the amendments provided for in Section 2.8 of Amendment Agreement
No. 3 shall be automatically rescinded in their entirety and the applicable
covenant amounts for any period shall again be the covenant amounts set forth in
Sections 7.08, 7.09 and 7.10 as applicable as of the date immediately preceding
the date on which Amendment Agreement No. 3 became effective.

                  2.8 Section 7.20 of the Credit Agreement is hereby amended in
its entirety to read as follows:

                           "SECTION 7.20. Revolving Credit Loans. Permit the
                  aggregate outstanding principal amount of Revolving Credit
                  Loans (excluding Letter of Credit Usage) on the last Business
                  Day of any of the fiscal months set forth below to exceed the
                  lesser of (A) the amount permitted by Section 2.01(a) hereof
                  and (B) the amount (or such other amount as may be consented
                  to by the Required Lenders) set forth opposite such fiscal
                  month:

                  Fiscal Month                                Maximum Amount
                  ------------                                --------------

                  June 2001                                      $80,900,000

                  July 2001                                      $89,904,000

                  August 2001                                   $107,114,000

                  September 2001                                $104,096,000

                  October 2001                                   $79,600,000

                  November 2001                                  $88,867,000

                  December 2001                                  $76,051,000

                  January 2002                                   $91,000,000

                  February 2002                                 $102,500,000

                  March 2002 and thereafter through the
                  Revolving Credit Termination Date              $92,000,000

                                       6
<PAGE>

                  2.9 Subject to the proviso set forth at the end of this
Section 2.9, Exhibit A to the Credit Agreement is hereby amended by deleting the
entries for the fiscal monthly periods commencing with "May `01" and ending with
"August `01" appearing therein and inserting in lieu thereof the following:

                          "May `01           Jun `01            Jul `01
                          $42,000            $42,000            $42,000

                          Aug `01
                          $42,000"

; provided that in the event the Borrower shall make any payment on account of
the principal of, interest on or any redemption or sinking fund payment in
respect of, any of the Senior Notes, the amendments provided for in this Section
2.9 as well as the amendments provided for in Section 2.10 of Amendment
Agreement No. 3 shall be automatically rescinded in their entirety and the
applicable amount of the Trademark Advance for any period shall again be the
amount set forth on Exhibit A to the Credit Agreement as of the date immediately
preceding the date on which Amendment Agreement No. 3 became effective.
Notwithstanding anything to the contrary set forth in this Section 2.9 or in
Exhibit A to the Credit Agreement as amended hereby, from the fifth calendar day
through the twenty-fifth calendar day of each fiscal month commencing with June,
2001 and ending with the fiscal month of September 2001, the amount of the
Trademark Advance may be up to $3,000,000 in excess of the amount thereof for
such fiscal month set forth on Exhibit A, but at no time in excess of
$45,000,000.

         SECTION 3. CONFIRMATION OF LOAN DOCUMENTS

                  3.1 Each Loan Party, by its execution and delivery of this
Agreement, irrevocably and unconditionally ratifies and confirms in favor of the
Agent and the Lenders that (i) it consents to the terms and conditions of the
Credit Agreement as it has been amended by this Agreement and that
notwithstanding this Agreement, each Loan Document to which such Loan Party is a
party shall continue in full force and effect in accordance with its terms, as
it has been amended by this Agreement, and is and shall continue to be
applicable to all of the Obligations and (ii) it is truly and justly indebted to
the Agent, the Collateral Monitor and the Lenders, for all of the Obligations
without defense, offset or counterclaim of any kind whatsoever and hereby
releases the Agent, the Collateral Monitor and each of the Lenders from any and
all claims, obligations, acts, omissions, damages or causes of action arising
out of, related or in any way connected with any action or failure to act, prior
to the execution of this Agreement , in connection with the events or
circumstances arising under or otherwise related to the Credit Agreement or any
other Loan Document.

                                       7
<PAGE>

         SECTION 4. CONDITIONS PRECEDENT

         This Agreement shall become effective upon the execution and delivery
to the Agent of counterparts hereof by the Borrower, each Guarantor and Lenders
constituting the Required Lenders and the fulfillment of the following
conditions:

                  4.1 The Agent shall have received a non-refundable amendment
fee in the amount of $675,000 for the ratable benefit of the Lenders who have
executed and delivered to the Agent a counterpart to this Agreement by not later
than 5:00 p.m. (New York City time) on June 25, 2001.

                  4.2 Morgan, Lewis & Bockius LLP counsel to the Agent, shall
have received payment in full for all legal fees charged, and all costs and
expenses incurred and invoiced, by such counsel through the date hereof and all
legal fees charged, and all costs and expenses incurred, by such counsel in
connection with the transactions contemplated under the Credit Agreement, this
Agreement and the other Loan Documents and instruments in connection herewith
and therewith and the Agent shall have received payment in full of any other
fees and expenses of the Agent, the Collateral Monitor, or any other
professional retained by the Agent which the Borrower is obligated to pay
pursuant to the Credit Agreement and the other Loan Documents.

                  4.3 All legal matters in connection with this Agreement shall
be satisfactory to the Agent and its counsel in their sole discretion.

                  4.4 The Agent shall have received a certificate signed by a
Financial Officer of the Borrower and each Guarantor stating that after giving
effect to this Agreement (i) all representations and warranties contained in
this Agreement and the Credit Agreement shall be true and correct in all
material respects with the same effect as though made on and as of the date on
which the conditions set forth in this Section 4 are fulfilled (except insofar
as such representations and warranties relate expressly to an earlier date) and
(ii) there exists no Event of Default.

                  4.5 The Agent shall have received such other documents as the
Agent or Agent's counsel shall reasonably deem necessary.

         SECTION 5. MISCELLANEOUS

                  5.1 Each of the Borrower and the Guarantors reaffirms and
restates the representations and warranties set forth in Article IV of the
Credit Agreement, and represents that after giving effect to this Agreement all
such representations and warranties shall be true and correct in all material
respects with the same effect as though made on and as of the date on which the
conditions set forth in Section 4 are fulfilled (except insofar as such
representations and warranties relate expressly to an earlier date). Each Loan

                                       8
<PAGE>

Party represents and warrants (which representations and warranties shall
survive the execution and delivery hereof) to the Lenders that:

                  (a) It has the corporate power and authority to execute,
         deliver and carry out the terms and provisions of this Agreement hereby
         and has taken or caused to be taken all necessary corporate action to
         authorize the execution, delivery and performance of this Agreement;

                  (b) No consent of any other person (including, without
         limitation, shareholders or creditors of any Loan Party), and no action
         of, or filing with any governmental or public body or authority is
         required to authorize, or is otherwise required in connection with the
         execution, delivery and performance of this Agreement;

                  (c) This Agreement has been duly executed and delivered on
         behalf of each Loan Party by a duly authorized officer, and constitutes
         a legal, valid and binding obligation of each Loan Party enforceable in
         accordance with its terms, subject to bankruptcy, reorganization,
         insolvency, moratorium and other similar laws affecting the enforcement
         of creditors' rights generally and the exercise of judicial discretion
         in accordance with general principles of equity; and

                  (d) The execution, delivery and performance of this Agreement
         will not violate any law, statute or regulation, or any order or decree
         of any court or governmental instrumentality, or conflict with, or
         result in the breach of, or constitute a default under any contractual
         obligation of any Loan Party.

                  5.2 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.

                  5.3 All references to the Credit Agreement in the Credit
Agreement and the other Loan Documents and the other documents and instruments
delivered pursuant to or in connection therewith shall mean the Credit Agreement
as amended hereby and as may in the future be amended, restated, supplemented or
modified from time to time.

                  5.4 This 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.

                  5.5 Delivery of an executed counterpart of a signature page to
this Agreement by telecopier shall be effective as delivery of a manually
executed counterpart of this Agreement.

                                       9
<PAGE>

                  5.6 THIS AGREEMENT, IN ACCORDANCE WITH SECTION 5-1401 OF THE
GENERAL OBLIGATION LAW OF THE STATE OF NEW YORK, SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD
TO ANY CONFLICTS OF LAWS PRINCIPLES THEREOF THAT WOULD CALL FOR THE APPLICATION
OF THE LAWS OF ANY OTHER JURISDICTION.

                  5.7 The parties hereto shall, at any time and from time to
time following the execution of this Agreement, execute and deliver all such
further instruments and take all such further actions as may be reasonably
necessary or appropriate in order to carry out the provisions of this Agreement.

               [Remainder of this page intentionally left blank.]

                                       10
<PAGE>

                  IN WITNESS WHEREOF, the Borrower, Guarantors, the Agent, the
Collateral Monitor and the Lenders have caused this Amendment Agreement No. 4
and Waiver to be duly executed by their respective authorized officers as of the
day and year first above written.

                                KASPER A.S.L., LTD., as Borrower

                                By: /s/ Arthur S. Levine
                                    ---------------------
                                   Name: Arthur S. Levine
                                   Title: Chief Executive Officer

                                A.S.L. RETAIL OUTLETS, INC., as a Guarantor

                                By: /s/ Arthur S. Levine
                                    ---------------------
                                   Name: Arthur S. Levine
                                   Title: Chief Executive Officer

                                ASL/K LICENSING CORP., as a Guarantor

                                By: /s/ Arthur S. Levine
                                    ---------------------
                                   Name: Arthur S. Levine
                                   Title: Chief Executive Officer

                                KASPER A.S.L. EUROPE, LTD., as a Guarantor

                                By: /s/ Arthur S. Levine
                                    ---------------------
                                   Name: Arthur S. Levine
                                   Title: Chief Executive Officer

                                KASPER HOLDINGS INC., as a Guarantor

                                By: /s/ Arthur S. Levine
                                    ---------------------
                                   Name: Arthur S. Levine
                                   Title: Chief Executive Officer

<PAGE>

                                AKC ACQUISITION, LTD., as a Guarantor

                                By: /s/ Lester E. Schreiber
                                    ------------------------
                                   Name: Lester E. Schreiber
                                   Title: Director

                                LION LICENSING, LTD., as a Guarantor

                                By: /s/ Lester E. Schreiber
                                    ------------------------
                                   Name: Lester E. Schreiber
                                   Title: Director

                                ASIA EXPERT LIMITED, as a Guarantor

                                By: /s/ Arthur S. Levine
                                    ---------------------
                                   Name: Arthur S. Levine
                                   Title: Director

                                TOMWELL LIMITED, as a Guarantor

                                By: /s/ Arthur S. Levine
                                    ---------------------
                                   Name: Arthur S. Levine
                                   Title: Director

                                THE CHASE MANHATTAN BANK, as Lender

                                By: /s/ Susan H. Atha
                                    ---------------------
                                   Name: Susan H. Atha
                                   Title: Vice President

                                THE CHASE MANHATTAN BANK, as Agent

                                By: /s/ Susan H. Atha
                                    ------------------------
                                   Name: Susan H. Atha
                                   Title: Vice President

<PAGE>

                                THE CIT GROUP/COMMERCIAL
                                SERVICES, INC., as Lender

                                By: /s/ Frank A. Grimaldi
                                    ---------------------
                                   Name: Frank A. Grimaldi
                                   Title: Vice President

                                THE CIT GROUP/COMMERCIAL
                                SERVICES, INC., as Collateral Monitor

                                By: /s/ Frank A. Grimaldi
                                    ---------------------
                                   Name: Frank A. Grimaldi
                                   Title: Vice President

                                LASALLE BANK, NATIONAL ASSOCIATION, as
                                Lender

                                By: /s/ Michael W. Kiss
                                    ---------------------
                                   Name: Michael W. Kiss
                                   Title: Senior Vice President

                                FLEET CAPITAL CORPORATION, as Lender

                                By: /s/ Frank J. Galle
                                    ---------------------
                                   Name: Frank J. Galle
                                   Title: Senior Vice President

                                FINOVA CAPITAL CORPORATION, as Lender

                                By: /s/ William D. Robinson
                                    --------------------------
                                   Name: William D. Robinson
                                   Title: Vice President Senior Credit Officer

<PAGE>

                                ISRAEL DISCOUNT BANK OF NEW
                                YORK, as Lender

                                By: /s/ Tim McCurry
                                    ---------------------
                                   Name: Tim McCurry
                                   Title: Assistant Manager

                                By: /s/ Howard Weinberg
                                    ---------------------
                                   Name: Howard Weinberg
                                   Title: Senior Vice President

                                PNC BANK, NATIONAL ASSOCIATION,
                                as Lender

                                By: /s/ Wallace G. Clements
                                    ------------------------
                                   Name: Wallace G. Clements
                                   Title: Vice President

                                DEBIS FINANCIAL SERVICES, INC., as Lender

                                By: /s/ G. Alexander Cole
                                    ----------------------
                                   Name: G. Alexander Cole
                                   Title: Managing Director -
                                         Credit ABL Division

                                BANK LEUMI USA, as Lender

                                By: /s/ Steven Farron
                                    ---------------------
                                   Name: Steven Farron
                                   Title: Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00027-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00027-of-00352.parquet"}]]