Document:

exv10w2

Exhibit 10.2

G-III APPAREL GROUP, LTD.

AMENDED AND RESTATED 2005 STOCK INCENTIVE PLAN

     1. Purpose. The purpose of the G-III Apparel Group, Ltd. 2005 Stock Incentive Plan
(the “Plan”) is to enable G-III Apparel Group, Ltd., a Delaware corporation (the
“Company”), and its stockholders to secure the benefits of ownership of Company common
stock, $.01 par value (the “Common Stock”) by, and otherwise provide incentive compensation
to, eligible personnel of the Company and its affiliates. The Board of Directors of the Company
(the “Board”) believes that the grant of awards pursuant to the Plan will foster the
Company’s ability to attract, retain and motivate such persons.

     2. Types of Awards. Awards under the Plan may be in the form of any one or more of
the following: (a) options to purchase shares of Common Stock at a specified price during specified
time periods granted pursuant to Section 7(b) (“Options”), including Options intended to
qualify as “incentive stock options” (“ISOs”) under Section 422 of the Internal Revenue
Code of 1986, as amended (the “Code”), and Options that do not qualify as ISOs; (b) stock
appreciation rights granted pursuant to Section 7(c) (“SARs”); (c) Common Stock granted
pursuant to Section 7(d) which is subject to certain restrictions and to a risk of forfeiture
(“Restricted Stock”); (d) rights to receive Common Stock at the end of a specified deferral
period granted pursuant to Section 7(e) (“Deferred Stock”), whether denominated as “stock
units,” “restricted stock units,” “phantom shares” or “performance shares”; (e) other stock-based
awards and cash incentive awards granted pursuant to Section 7(f) (“Other Awards”); and/or
(f) performance-based awards granted pursuant to Section 7(h) (“Performance Awards”).

     3. Available Shares. Subject to the provisions of Section 9, the Company may issue a
total of 3,449,771 shares of Common Stock pursuant to the Plan. Notwithstanding the preceding
sentence, subject to the provisions of Section 9, in no event may more than 1,340,000 shares of
Common Stock be issued pursuant to the exercise of ISOs granted under the Plan. In determining the
number of shares available for issuance pursuant to the Plan at any time, the following shares
shall be deemed not to have been issued (and shall remain available for issuance) pursuant to the
Plan: (a) shares subject to an award that is forfeited, canceled, terminated or settled in cash;
(b) shares repurchased by the Company from the recipient of an award for not more than the original
purchase price of such shares or forfeited to the Company by the recipient of an award; and (c)
shares withheld or tendered by the recipient of an award as payment of the exercise or purchase
price under an award or the tax withholding obligations associated with an award. Such shares may
be either authorized and unissued or held by the Company in its treasury. No fractional shares of
Common Stock may be issued under the Plan.

     4. Per-Person Award Limitations. In each fiscal year during any part of which the
Plan is in effect, an eligible person may be granted stock-based awards intended to qualify as
“performance-based compensation” under Section 162(m) of the Code relating to up to his Annual
Share Limit. Subject to the provisions of Section 9, an eligible person’s “Annual Share Limit”
shall equal, in any year during any part of which the eligible person is then eligible under the
Plan, 200,000 shares plus the amount of the eligible person’s unused Annual Share Limit as of the
close of the previous year. For each fiscal year, the maximum amount a participant may

 

 

earn pursuant to a cash incentive award granted under Section 7(f) shall be limited to
$5,000,000. For these purposes, an award is “earned” upon satisfaction of the applicable
performance conditions, even if settlement is deferred or subject to continuing service and/or
other non-performance conditions; and an employee’s annual limit is deemed to be used in a calendar
year to the extent a share or cash award could be earned in that year, regardless of the extent to
which such award is earned.

     5. Administration.

          (a) Committee. The Plan shall be administered by the Compensation Committee of the
Board or such other committee appointed by the Board to administer the Plan from time to time (the
“Committee”). The full Board may perform any function of the Committee hereunder, in which
case the term “Committee” shall refer to the Board. Notwithstanding the foregoing, the Compensation
Committee will have sole responsibility and authority for matters relating to the grant and
administration of awards to non-employee directors of the Company.

          (b) Responsibility and Authority of Committee. Subject to the provisions of the Plan,
the Committee, acting in its discretion, shall have responsibility and full power and authority to
(i) select the persons to whom awards shall be made; (ii) prescribe the terms and conditions of
each award and make amendments thereto; (iii) construe, interpret and apply the provisions of the
Plan and of any agreement or other document evidencing an award made under the Plan; and (iv) make
any and all determinations and take any and all other actions as it deems necessary or desirable in
order to carry out the terms of the Plan. In exercising its responsibilities under the Plan, the
Committee may obtain at the Company’s expense such advice, guidance and other assistance from
outside compensation consultants and other professional advisers as it deems appropriate.

          (c) Delegation of Authority. To the fullest extent authorized under Section 157(c) of
the Delaware General Corporation Law, the Committee may delegate to officers of the Company or any
affiliate, or committees thereof, the authority, subject to such terms as the Committee shall
determine, to perform such functions, including administrative functions, as the Committee may
determine.

          (d) Committee Actions. A majority of the members of the Committee shall constitute a
quorum. The Committee may act by the vote of a majority of its members present at a meeting at
which there is a quorum or by unanimous written consent. The decision of the Committee as to any
disputed question, including questions of construction, interpretation and administration, shall be
final and conclusive on all persons. The Committee shall keep a record of its proceedings and acts
and shall keep or cause to be kept such books and records as may be necessary in connection with
the proper administration of the Plan.

          (e) Indemnification. The Company shall indemnify and hold harmless each member of the
Board, the Committee or any officer or subcommittee member to whom authority is delegated by the
Committee and any employee of the Company who provides assistance with the administration of the
Plan from and against any loss, cost, liability (including any sum paid in settlement of a claim
with the approval of the Board), damage and expense (including reasonable

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legal fees and other expenses incident thereto and, to the extent permitted by applicable law,
advancement of such fees and expenses) arising out of or incurred in connection with the Plan,
unless and except to the extent attributable to such person’s fraud or willful misconduct.

     6. Eligibility. Awards may be granted under the Plan to any member of the Board
(whether or not an employee of the Company or its affiliates), to any officer or other employee of
the Company or its affiliates (including prospective officers and employees) and to any consultant
or other independent contractor who performs or will perform services for the Company or its
affiliates.

     7. Specific Terms of Awards.

          (a) General. Awards may be granted on the terms and conditions set forth in this
Section 7. In addition, the Committee may impose on any award or the exercise thereof, at the date
of grant or thereafter, such additional terms and conditions, not inconsistent with the provisions
of the Plan, as the Committee shall determine, including terms requiring forfeiture of awards in
the event of termination of employment or service by the recipient. The Committee shall require the
payment of lawful consideration for an award to the extent necessary to satisfy the requirements of
the Delaware General Corporation Law, and may otherwise require payment of consideration for an
award except as limited by the Plan. The Committee may not accelerate the vesting of an outstanding
award in connection with the termination of a participant’s employment unless either (1) such
termination is in connection with a change in control or the participant’s death, total disability
or retirement, or (2) such termination occurs for any other reason and the net number of shares the
Company would issue by reason of such acceleration of vesting would not cause the Company to exceed
the 10% limitation contained in Section 7(g) (relating to the issuance of shares under full value
stock awards), determined as if such issuance would be made pursuant to a full value stock award.

          (b) Stock Options. The Committee is authorized to grant Options to eligible persons
on the following terms and conditions:

               (i) Exercise Price. The exercise price per share of Common Stock purchasable under an
Option shall be determined by the Committee, provided that such exercise price shall not be less
than the Fair Market Value (as defined below) of a share of Common Stock on the date of grant of
such Option.

               (ii) Option Term; Time and Method of Exercise. The Committee shall determine the term
of each Option, which in no event shall exceed a period of ten years from the date of grant. The
Committee shall determine the time or times at which or the circumstances under which an Option may
be exercised in whole or in part (including based on achievement of performance goals and/or future
service requirements), the methods by which such exercise price may be paid or deemed to be paid
and the form of such payment (including, without limitation, cash, Common Stock (including through
withholding of Common Stock deliverable upon exercise), other awards or awards granted under other
plans of the Company or any affiliate, or other property (including through “cashless exercise”
arrangements, to the extent permitted by applicable law) and the methods by or forms in which
Common Stock shall be delivered or deemed to be delivered in satisfaction of Options.

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               (iii) ISO Grants to 10% Stockholders. Notwithstanding anything to the contrary in
this Section 7(b), if an ISO is granted to an employee who owns stock representing more than 10% of
the voting power of all classes of stock of the Company or a subsidiary corporation thereof (as
such term is defined in Section 424 of the Code), the term of the Option shall not exceed five
years from the date of grant and the exercise price shall be at least 110% of the Fair Market Value
(on the date of grant) of the Common Stock subject to the Option.

          (c) Stock Appreciation Rights. The Committee is authorized to grant SARs to eligible
persons on the following terms and conditions:

               (i) Right to Payment. A SAR shall confer on the recipient a right to receive a
payment, in shares of Common Stock, with a value equal to the excess of the Fair Market Value of a
specified number of shares of Common Stock at the time the SAR is exercised over the exercise price
of such SAR, which shall be no less than the Fair Market Value of the same number of shares at the
time the SAR was granted.

               (ii) Other Terms. The Committee shall determine the time or times at which and the
circumstances under which a SAR may be exercised in whole or in part (including based on
achievement of performance goals and/or future service requirements), the method of exercise, the
method by or forms in which Common Stock shall be delivered or deemed to be delivered to recipients
upon exercise of a SAR, whether or not a SAR shall be free-standing or in tandem or combination
with any other award, and the maximum term of an SAR, which in no event shall exceed a period of
ten years from the date of grant.

          (d) Restricted Stock. The Committee is authorized to grant Restricted Stock to
eligible persons on the following terms and conditions:

               (i) Grant and Restrictions. Restricted Stock shall be subject to such restrictions on
transferability, risk of forfeiture and other restrictions, if any, as the Committee may impose,
which restrictions may lapse separately or in combination at such times, under such circumstances
(including based on achievement of performance goals and/or future service requirements), in such
installments or otherwise and under such other circumstances as the Committee may determine at the
date of grant or thereafter. Notwithstanding the foregoing, (i) the original stated time-based
vesting period applicable to a restricted stock award may not be shorter than three years, and (ii)
the original stated performance period applicable to performance-based vesting of a restricted
stock award may not be shorter than one year. Except to the extent restricted under the terms of
the Plan and any award document relating to the Restricted Stock, a recipient of Restricted Stock
shall have all of the rights of a stockholder, including the right to vote the Restricted Stock and
the right to receive dividends thereon (subject to any mandatory reinvestment or other requirements
imposed by the Committee).

               (ii) Forfeiture. Except as otherwise determined by the Committee, upon termination of
employment or service during the applicable restriction period, Restricted Stock that is at that
time subject to restrictions shall be forfeited and reacquired by the Company; provided that the
Committee may provide, by rule or regulation or in any award document, or may determine in any
individual case, that restrictions or forfeiture conditions relating to
Restricted Stock shall lapse in whole or in part, including in the event of terminations
resulting from specified causes.

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               (iii) Certificates for Stock. Restricted Stock granted under the Plan may be
evidenced in such manner as the Committee shall determine. If certificates representing Restricted
Stock are registered in the name of the recipient, the Committee may require that such certificates
bear an appropriate legend referring to the terms, conditions and restrictions applicable to such
Restricted Stock, that the Company retain physical possession of the certificates and that the
recipient deliver a stock power to the Company, endorsed in blank, relating to the Restricted
Stock.

          (e) Deferred Stock. The Committee is authorized to grant Deferred Stock to eligible
persons, which are rights to receive Common Stock, other awards, or a combination thereof at the
end of a specified deferral period, subject to the following terms and conditions:

               (i) Award and Restrictions. The issuance of Common Stock shall occur upon expiration
of the deferral period specified for an award of Deferred Stock by the Committee. Notwithstanding
the foregoing, (i) the original stated time-based vesting period applicable to a deferred stock
award may not be shorter than three years, and (ii) the original stated performance period
applicable to performance-based vesting of a deferred stock award may not be shorter than one year.
In addition, Deferred Stock shall be subject to such restrictions on transferability, risk of
forfeiture and other restrictions, if any, as the Committee may impose, which restrictions may
lapse at the expiration of the deferral period or at earlier specified times (including based on
achievement of performance goals and/or future service requirements), separately or in combination,
in installments or otherwise, and under such other circumstances as the Committee may determine at
the date of grant or thereafter. Deferred Stock may be satisfied by delivery of Common Stock, other
awards, or a combination thereof, as determined by the Committee at the date of grant or
thereafter.

               (ii) Forfeiture. Except as otherwise determined by the Committee, upon termination of
employment or service during the applicable deferral period or portion thereof to which forfeiture
conditions apply (as provided in the award document evidencing the Deferred Stock), all Deferred
Stock that is at that time subject to such forfeiture conditions shall be forfeited; provided that
the Committee may provide, by rule or regulation or in any award document, or may determine in any
individual case, that restrictions or forfeiture conditions relating to Deferred Stock shall lapse
in whole or in part, including in the event of terminations resulting from specified causes. Each
Deferred Stock award shall be settled no later than the 15th day of the third month
following the calendar year in which such award becomes vested; provided, however, that, subject to
compliance with Section 409A, the Committee, in its discretion, may provide for deferred
settlement.

          (f) Other Stock-Based and Cash Incentive Awards. The Committee is authorized, subject
to limitations under applicable law, to grant to eligible persons such other awards that may be
denominated or payable in, valued in whole or in part by reference to, or otherwise based on, or
related to, Common Stock or factors that may influence the value of Common Stock, including,
without limitation, stock bonuses, dividend equivalents, convertible or exchangeable debt
securities, other rights convertible or exchangeable into Common Stock,

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purchase rights for Common Stock, awards with value and payment contingent upon performance of
the Company or business units thereof or any other factors designated by the Committee, awards
valued by reference to the book value of Common Stock or the value of securities of or the
performance of specified subsidiaries or affiliates or other business units and awards designed to
comply with or take advantage of the applicable local laws or jurisdictions other than the United
States. The Committee shall determine the terms and conditions of such stock-based Other Awards. In
addition, the Committee may grant performance-based cash incentive awards, including annual
incentive awards and long-term incentive awards, denominated and settled in cash, subject to such
terms and conditions as the Committee may determine, provided, however, that any such cash
incentive award that is intended to qualify for the performance-based compensation exemption from
the deduction limitation provisions of Section 162(m) of the Code will be subject to terms and
conditions described in Section 7(h). Unless the Committee, acting in a manner that is consistent
with the election and distribution timing requirements of Section 409A, determines otherwise, Other
Awards, including cash incentive awards, earned in or for any fiscal year, shall be settled and
paid by the 15th day of the third month of the following fiscal year.

          (g) Notwithstanding anything to the contrary contained herein, the aggregate number of shares
the Company may issue pursuant to full value stock awards under Section 7(f) may not exceed 10% of
the aggregate number of shares that may be issued under the Plan.

          (h) Performance Awards. The Committee is authorized to grant Performance Awards to
eligible persons on the following terms and conditions:

               (i) Generally. The Committee may specify that any stock-based or cash incentive award
granted under the Plan shall constitute a Performance Award by conditioning the grant, exercise,
amount, vesting or settlement, and the timing thereof, upon achievement or satisfaction of such
performance conditions as may be specified by the Committee. The Committee may use such business
criteria and other measures of performance as it may deem appropriate in establishing any
performance conditions, and may exercise its discretion to reduce or increase the amounts payable
under any award subject to performance conditions, except as limited under this Section 7(h) in the
case of a Performance Award intended to qualify as “performance-based compensation” under Section
162(m) of the Code.

               (ii) Awards exempt under Section 162(m) of the Code. If the Committee determines that
an award should qualify as “performance-based compensation” for purposes of Section 162(m) of the
Code (other than Options or SARs which otherwise qualify as “performance-based compensation” for
purposes of Section 162(m) of the Code), the grant, exercise, vesting, amount and/or settlement of
such Performance Award shall be contingent upon achievement of one or more preestablished,
objective performance goals, which shall be prescribed in writing by the Committee not later than
90 days after the commencement of the performance period and in any event before completion of 25%
of the performance period. The performance goal or goals for such Performance Awards shall consist
of one or more business criteria and a targeted level or levels of performance with respect to each
of such criteria, as specified by the Committee consistent with this subsection (ii). One or more
of the following business criteria for the Company, on a consolidated basis, and/or for specified
subsidiaries or affiliates or other business units of the Company, shall be used by the Committee
in establishing

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performance goals for such Performance Awards, either on an absolute basis or relative to an
index: (1) revenues on a corporate or product by product basis; (2) earnings from operations,
earnings before or after taxes, earnings before or after interest, depreciation, amortization,
incentives, service fees or extraordinary or special items; (3) net income or net income per common
share (basic or diluted); (4) return on assets, return on investment, return on capital, or return
on equity; (5) cash flow, free cash flow, cash flow return on investment, or net cash provided by
operations; (6) economic value created or added; (7) operating margin or profit margin; and/or (8)
stock price, dividends or total stockholder return. The targeted level or levels of performance
with respect to such business criteria may be established at such levels and in such terms as the
Committee may determine, in its discretion, including in absolute terms, as a goal relative to
performance in prior periods, or as a goal compared to the performance of one or more comparable
companies or an index covering multiple companies. All determinations by the Committee as to the
establishment of performance goals, the amount potentially payable in respect of Performance
Awards, the level of actual achievement of the specified performance goals relating to Performance
Awards and the amount of any final Performance Award shall be recorded in writing. Specifically,
the Committee shall certify in writing, in a manner conforming to applicable regulations under
Section 162(m) of the Code, prior to settlement of each such award, that the performance objective
relating to the Performance Award and other material terms of the award upon which settlement of
the award was conditioned have been satisfied. The Committee shall have the authority, in its
discretion, to reduce the formula amount otherwise payable pursuant to a cash incentive or other
Performance Award, but may not increase the amount that would otherwise be payable under any such
award.

     8. Limits on Transferability. No award or other right or interest of an award
recipient under the Plan shall be pledged, hypothecated or otherwise encumbered or subject to any
lien, obligation or liability of such recipient to any party (other than the Company or an
affiliate thereof), or assigned or transferred by such recipient otherwise than by will or the laws
of descent and distribution or to a beneficiary upon the death of a recipient, and such awards or
rights that may be exercisable shall be exercised during the lifetime of the recipient only by the
recipient or his or her guardian or legal representative, except that awards and other rights may
be transferred to one or more transferees during the lifetime of the recipient, and may be
exercised by such transferees in accordance with the terms of such award, but only if and to the
extent such transfers are permitted by the Committee, subject to any terms and conditions which the
Committee may impose thereon. A beneficiary, transferee, or other person claiming any rights under
the Plan from or through any award recipient shall be subject to all terms and conditions of the
Plan and any award document applicable to such Participant, except as otherwise determined by the
Committee, and to any additional terms and conditions deemed necessary or appropriate by the
Committee. For purposes hereof, “beneficiary” shall mean the legal representatives of the
recipient’s estate entitled by will or the laws of descent and distribution to receive the benefits
under a recipient’s award upon a recipient’s death, provided that, if and to the extent authorized
by the Committee, a recipient may be permitted to designate a beneficiary, in which case the
“beneficiary” instead shall be the person, persons, trust or trusts (if any are then surviving)
which have been designated by the recipient in his or her most recent written beneficiary
designation filed with the Committee to receive the benefits specified under the recipient’s award
upon such recipient’s death.

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     9. Capital Changes; Change in Control.

          (a) Adjustments upon Changes in Capitalization. The aggregate number and class of
shares issuable pursuant to the Plan and pursuant to the exercise of ISOs, the Annual Share Limit,
the number and class of shares and the exercise price per share covered by each outstanding Option,
the number and class of shares and the base price per share covered by each outstanding SAR, the
number and class of shares covered by each outstanding Award other than Options and SARs, any
per-share base or purchase price or target market price included in the terms of any such award,
and related terms shall all be adjusted by the Board proportionately or as otherwise deemed
appropriate to reflect any increase or decrease in the number of issued shares of Common Stock
resulting from an extraordinary cash dividend, split-up or consolidation of shares or any like
capital adjustment, or the payment of any stock dividend, and/or to reflect a change in the
character or class of shares covered by the Plan arising from a readjustment or recapitalization of
the Company’s capital stock. The determination of the Board with respect to any such adjustment
shall be binding and conclusive.

          (b) Effect of Change in Control on Outstanding Awards. If a Change in Control (as
defined below) occurs, then, except as otherwise specifically provided by the applicable Award
agreement (or any other applicable agreement approved by the Board or the Committee), each Award
outstanding under the Plan immediately prior to the Change in Control will be either assumed and
converted in accordance with part (i) below, or vested and disposed of in accordance with part (ii)
below.

               (i) Assumption and Conversion of Outstanding Awards. If a Change in Control occurs,
the parties to the Change in Control may agree that any stock-based Award outstanding under the
Plan immediately prior to the Change in Control shall, at the effective time of the Change in
Control, be assumed and converted into a similar form of award with respect to shares of common
stock of the successor or acquiring company (or a parent company thereof). If an Option or SAR is
assumed, the number of shares and exercise price or base price per share covered by the assumed
Award will be adjusted in accordance with the principles set forth in Sections 1.424-1(a)(5) and
1.409A-1(b)(5)(v)(D) of the Treasury Regulations. If a stock-based Award other than an Option or
SAR is assumed, the number of shares covered by the assumed Award will be a whole number that
reflects the exchange ratio applicable to holders of shares of Common Stock in connection with the
Change in Control. An assumed or converted Award, as so adjusted, will be subject to substantially
the same vesting and other terms and conditions as applied to the Award being assumed or converted,
provided, however, that, in the case of a Performance Award, any performance criteria applicable to
the Award will be deemed to have been satisfied immediately prior to the Change in Control to the
maximum extent specified in connection with the Award. Notwithstanding the foregoing, if, within
two years following a Change in Control, a participant’s employment or other service is terminated
either by the Company or a successor or acquiring company (or any of its or their affiliates)
without Cause (as defined below) or by the participant for Good Reason (as defined below), then any
outstanding assumed Awards held by such terminated participant shall immediately become fully
vested and exercisable or payable, as the case may be in accordance with their terms.

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               (ii) Vesting and Disposition of Awards Not Assumed. Any Award outstanding under the
Plan immediately prior to a Change in Control that is not assumed and converted pursuant to part
(i) above (or, due to the nature of the Change in Control, cannot be assumed and converted because
there is no transaction with a successor or acquiring entity), will be terminated at the effective
time of the Change in Control. If the terminated Award is a restricted stock Award, then the
restricted shares covered by the Award immediately prior to the effective time of the Change in
Control will become fully vested and will participate in the Change in Control on the same basis as
other outstanding shares of Common Stock. If the terminated Award is in a form other than a
restricted stock Award, the holder of the terminated Award will be entitled to receive at the
effective time of the Change in Control a single sum payment equal to the excess, if any, of the
transaction value of the shares that are then covered by the outstanding Award over the aggregate
purchase price or base price, if any, for or with respect to such shares pursuant to the terms of
the Award. No consideration will be payable in respect of the termination of an outstanding Option
or SAR with an exercise or base price per share that is greater than the transaction value per
share. The amount (if any) payable with respect to the termination of an outstanding Award pursuant
to this part (ii) will be paid in cash, unless and except to the extent that the parties to the
Change in Control agree that some or all of such amount will be payable in the form of freely
tradable shares of common stock of the successor or acquiring company (or a parent company
thereof).

          (c) Definitions.

               (i) Change in Control. For the purpose hereof, a “Change in Control” shall be deemed
to have occurred upon the happening of any of the following events:

          (a) any “person” as such term is used in Sections 13(d) and 14(d) of the
Exchange Act (other than the Company, a subsidiary of the Company, any trustee or
other fiduciary holding securities under any employee benefit plan of the Company or
any corporation owned, directly or indirectly, by the stockholders of the Company in
substantially the same proportions as their ownership of stock of the Company), is
or becomes, including pursuant to a tender or exchange offer for shares of Common
Stock pursuant to which purchases are made, the “beneficial owner” (as defined in
Rule l3d-3 under the Exchange Act), directly or indirectly, of securities of the
Company representing 50% or more of the combined voting power of the Company’s then
outstanding securities, provided, however, that the provisions of this paragraph (a)
shall not be applicable to any acquisition directly from the Company; or

          (b) individuals who, as of the date hereof, constitute the Board (the
“Incumbent Board”), shall cease for any reason to constitute at least a majority
thereof; provided, however, that any individual becoming a director subsequent to
the date hereof whose appointment or election by the Board or nomination for
election by the Company’s stockholders was approved or recommended by a vote of at
least two-thirds (2/3) of the directors then still in office who were either
directors on the date hereof, or whose appointment, election or nomination for
election was previously so approved or recommended, shall be considered a member of
the Incumbent Board, but excluding for this purpose any new director

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whose initial assumption of office is in connection with an actual or threatened
election contest relating to the election of directors of the Company; or

          (c) there is consummated a merger or consolidation of the Company or any direct
or indirect subsidiary of the Company with any other corporation, other than a
merger or consolidation which would result in the voting securities of the Company
outstanding immediately prior to such merger or consolidation continuing to
represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity or any parent thereof) more than 50% of the
combined voting power of the securities of the Company or such surviving entity or
any parent thereof outstanding immediately after such merger or consolidation; or

          (d) there is consummated a plan of complete liquidation or dissolution of the
Company or there is consummated the sale or disposition by the Company of all or
substantially all of the Company’s assets, in one transaction or a series of related
transactions, other than a sale or disposition by the Company of all or
substantially all of the Company’s assets to an entity, more than 50% of the
combined voting power of the voting securities of which is owned by stockholders of
the Company in substantially the same proportion as their ownership of the Company
immediately prior to such sale.

               (ii) Cause. For the purposes hereof, the term “Cause” shall have the meaning ascribed
to that term (or a term of like import) in a participant’s employment agreement or, if such term
(or a term of like import) is not defined in the participant’s employment agreement or there is no
such agreement, then the term “Cause” shall mean (1) a participant’s repeated failure or refusal to
perform the duties of the participant’s employment, consistent with past practice and his or her
position and title where such conduct shall not have ceased or been remedied within ten days
following written warning from the Company specifying such conduct; (2) the participant’s
conviction of, or entering a plea of guilty or no contest to, a felony; (3) the participant’s
performance of any act or the participant’s failure to act, for which, if the participant were
prosecuted and convicted, a crime or offense involving money or property of the Company would have
occurred; (4) the participant’s performance of any act or the participant’s failure to act which
constitutes fraud or a breach of a fiduciary trust, including, without limitation, misappropriation
of funds or a material misrepresentation of the Company’s operating results or financial condition;
(5) any attempt by the participant to secure any personal profit (other than pursuant to the terms
of the participant’s employment or through the participant’s ownership of equity in the Company) in
connection with the business of the Company (for example, without limitation, using Company assets
to pursue other interests, diverting to the participant or to a third party any business
opportunity belonging to the Company, insider trading or taking bribes or kickbacks); (6) the
participant’s engagement in conduct or activities materially damaging to the property, business or
reputation of the Company other than as a result of good faith performance of his duties; (7) the
participant’s illegal use of controlled substances; (8) any act or omission by the participant
involving malfeasance or gross negligence in the performance of the duties of the participant’s
employment to the material detriment of the Company; or (9) the entry of any order of a court that
remains in effect and is not discharged for a period of at least sixty days, which enjoins or
otherwise limits or restricts the performance by

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the participant of the duties of the participant’s employment, relating to any contract,
agreement or commitment made by or applicable to the participant in favor of any former employer or
any other person.

               (iii) Good Reason. For the purposes hereof, the term “Good Reason” shall have the
meaning ascribed to that term (or a term of like import) in a participant’s employment agreement
or, if such term (or a term of like import) is not defined in the participant’s employment
agreement or there is no such agreement, then the term “Good Reason” shall mean any of the
following events that occur, after expiration of any remedy or cure period, (1) a material
diminution of the participant’s duties and responsibilities that result in a material adverse
effect on the participant’s status and authority, (2) a change in the principal location of the
participant’s employment to a location more than fifty (50) miles outside of New York City or its
then current other location, except for travel reasonably required as part of such employment, (3)
failure to timely pay the participant any salary or bonus when due or (4) any reduction in (i) the
participant’s annual rate of salary from the highest annual rate of salary in effect during the
one-year period prior to the date of the Change of Control or (ii) the amount of annual bonus paid
to the participant after the date of the Change in Control in light of the results of operations of
the Company for that year compared to the bonus paid for the most recent fiscal year prior to the
date of the Change of Control in light of the results of operations of the Company for that year.
Notwithstanding the foregoing, in order to terminate for “Good Reason,” a participant must specify
in writing to the Company (or the successor or acquiring company) the nature of the act or omission
that the participant deems to constitute Good Reason and provide the Company (or the successor or
acquiring company) 30 days after receipt of such notice to review and, if required, correct the
situation (and thus prevent the participant’s termination for Good Reason). Notice of termination
for Good Reason must be provided, if at all, within 90 days after the occurrence of the event or
condition giving rise to such termination.

          (d) Section 409A Compliance. Notwithstanding anything to the contrary contained herein
or in an Award agreement, if a provision of the Plan or an Award agreement would cause a payment of
deferred compensation that is subject to Section 409A of the Code to be made upon the occurrence of
a Change in Control, then such payment shall not be made unless such Change in Control also
constitutes a “change in ownership”, “change in effective control” or “change in ownership of a
substantial portion of the Company’s assets” within the meaning of Section 409A of the Code. Any
payment that would have been made except for the application of the preceding sentence shall be
made in accordance with the payment or settlement schedule that would have applied under the Award
in the absence of a Change in Control or termination of employment or service, without regard to
any future service or performance requirements that otherwise would have applied.

          (e) Dividends on Restricted Stock and Deferred Stock. If a dividend is declared with
respect to Common Stock, then, unless the Committee determines otherwise at the time an award is
granted, the holder of Restricted Stock or an unvested Deferred Stock award will be credited with
dividends as if such Restricted Stock or the shares covered by the unvested Deferred Stock award
were outstanding and otherwise entitled to participate in such dividend. Dividends with respect to
Restricted Stock or an unvested Deferred Stock award will be in the form of additional shares of
Restricted Stock or Deferred Stock and/or a right to receive cash, in an amount or having a value
equal to the dividend, all as determined by the Committee.

-11-

 

Dividends with respect to Restricted Stock and Deferred Stock awards shall be subject to the
same vesting conditions and payment terms as are applicable to the shares of Restricted Stock or
Deferred Stock with respect to which such dividends are credited.

     10. Tax Withholding; Section 409A Compliance. As a condition to the exercise of any
award, the delivery of any shares of Common Stock pursuant to any award, the lapse of restrictions
on any award or the settlement of any award, or in connection with any other event that gives rise
to a federal or other governmental tax withholding obligation on the part of the Company or an
affiliate relating to an award (including, without limitation, an income tax deferral arrangement
pursuant to which employment tax is payable currently), the Company and/or the affiliate may (a)
deduct or withhold (or cause to be deducted or withheld) from any payment or distribution to an
award recipient whether or not pursuant to the Plan or (b) require the recipient to remit cash
(through payroll deduction or otherwise), in each case in an amount sufficient in the opinion of
the Company to satisfy such withholding obligation. If the event giving rise to the withholding
obligation involves a transfer of shares of Common Stock, then, at the sole discretion of the
Committee, the recipient may satisfy the withholding obligation described under this Section 10 by
electing to have the Company withhold shares of Common Stock or by tendering previously-owned
shares of Common Stock, in each case having a Fair Market Value equal to the amount of tax to be
withheld (or by any other mechanism as may be required or appropriate to conform with local tax and
other rules). It is intended that awards made under the Plan, including any deferred payment or
settlement terms and conditions shall be structured, applied and interpreted in a manner that
complies with Section 409A of the Code. Notwithstanding the foregoing, each participant shall be
solely responsible for the tax consequences associated with awards made to such participant under
the Plan and no participant shall have a claim against the Company by reason of an award being
subject to Section 409A of the Code.

     11. Fair Market Value. For purposes of the Plan, “Fair Market Value” shall
mean the fair market value of the Common Stock as determined in good faith by the Committee or
under procedures established by the Committee. Unless otherwise determined by the Committee, the
Fair Market Value of the Common Stock as of any given date shall be the closing sale price per
share of Common Stock reported on a consolidated basis for securities listed on the principal stock
exchange or market on which the Common Stock is traded on the date as of which such value is being
determined or, if there is no sale on that day, then on the last previous day on which a sale was
reported.

     12. Amendment and Termination of the Plan. Except as may otherwise be required by law
or the requirements of any stock exchange or market upon which the Common Stock may then be listed,
the Board, acting in its sole discretion and without further action on the part of the stockholders
of the Company, may amend the Plan at any time and from time to time and may terminate the Plan at
any time. No amendment or termination may affect adversely any outstanding award without the
written consent of the award recipient.

     13. General Provisions.

          (a) Compliance with Law. The Company shall not be obligated to issue or deliver
shares of Common Stock pursuant to the Plan unless the issuance and delivery of such

-12-

 

shares complies with applicable law, including, without limitation, the Securities Act, the
Securities Exchange Act of 1934, as amended, and the requirements of any stock exchange or market
upon which the Common Stock may then be listed, and shall be further subject to the approval of
counsel for the Company with respect to such compliance.

          (b) Transfer Orders; Placement of Legends. All certificates for shares of Common
Stock delivered under the Plan shall be subject to such stock-transfer orders and other
restrictions as the Company may deem advisable under the rules, regulations, and other requirements
of the Securities and Exchange Commission, any stock exchange or market upon which the Common Stock
may then be listed, and any applicable federal or state securities law. The Company may cause a
legend or legends to be placed on any such certificates to make appropriate reference to such
restrictions.

          (c) No Rights Conferred. Nothing contained herein shall be deemed to give any
individual a right to receive an award under the Plan or to be retained in the employ or service of
the Company or any affiliate.

          (d) Decisions and Determinations to be Final. Any decision or determination made by
the Board pursuant to the provisions hereof and, except to the extent rights or powers under the
Plan are reserved specifically to the discretion of the Board, all decisions and determinations of
the Committee are final and binding.

          (e) Nonexclusivity of the Plan. No provision of the Plan, and neither its adoption
Plan by the Board or submission to the stockholders for approval, shall be construed as creating
any limitations on the power of the Board or a committee thereof to adopt such other incentive
arrangements, apart from the Plan, as it may deem desirable.

     14. Governing Law. The Plan and each award agreement or other document evidencing an
award shall be governed by the laws of the State of Delaware, without regard to its principles of
conflict of laws.

     15. Term of the Plan. The Plan shall become effective on the date on which it is
approved by the Company’s stockholders (the “Effective Date”). Unless sooner terminated by
the Board, the Plan shall terminate on the tenth anniversary of the Effective Date. The rights of
any person with respect to an award made under the Plan that is outstanding at the time of the
termination of the Plan shall not be affected solely by reason of the termination of the Plan and
shall continue in accordance with the terms of the award and of the Plan, as each is then in effect
or is thereafter amended.

-13-exv10w3

Exhibit 10.3

EXECUTION VERSION

AMENDED AND RESTATED FINANCING AGREEMENT

The CIT Group/Commercial Services, Inc.

(as Agent)

the Lenders that are parties hereto

and

G-III Leather Fashions, Inc.,

J. Percy for Marvin Richards, Ltd.

CK Outerwear, LLC

A. Marc & Co., Inc.

and

Andrew & Suzanne Company Inc.

(as Borrowers)

Dated: April 3, 2008

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	SECTION
	 	 	 	 	 	 
	1.

	 	Definitions
	 	 	2	 
	1.1.

	 	Defined Terms
	 	 	2	 
	 
	SECTION
	 	 	 	 	 	 
	2.

	 	Conditions Precedent
	 	 	26	 
	2.1.

	 	Conditions Precedent to Initial Funding
	 	 	26	 
	 
	SECTION
	 	 	 	 	 	 
	3.

	 	Revolving Loans and Collections
	 	 	30	 
	3.1.

	 	Funding Conditions and Procedures
	 	 	30	 
	3.2.

	 	Handling of Proceeds of Collateral; Cash Dominion
	 	 	32	 
	3.3.

	 	Collective Borrowing Arrangement; Revolving Loan Account
	 	 	33	 
	3.4.

	 	Repayment of Overadvances
	 	 	33	 
	3.5.

	 	Application of Proceeds of Collateral
	 	 	34	 
	3.6.

	 	Monthly Statement
	 	 	34	 
	3.7.

	 	Access to CIT’s System
	 	 	35	 
	 
	SECTION
	 	 	 	 	 	 
	4.

	 	[RESERVED]
	 	 	35	 
	 
	SECTION
	 	 	 	 	 	 
	5.

	 	Letters of Credit, Bankers Acceptances, Steamship Guarantees and Airway Releases
	 	 	36	 
	5.1.

	 	Assistance and Purpose
	 	 	36	 
	5.2.

	 	Authority to Charge Revolving Loan Account
	 	 	37	 
	5.3.

	 	Indemnity Relating to Letters of Credit and Bankers Acceptances
	 	 	37	 
	5.4.

	 	Compliance of Goods, Documents and Shipments with Agreed Terms
	 	 	37	 
	5.5.

	 	Handling of Goods, Documents and Shipments
	 	 	38	 
	5.6.

	 	Compliance with Laws; Payment of Levies and Taxes
	 	 	38	 
	5.7.

	 	Subrogation Rights
	 	 	39	 
	5.8.

	 	Risk Participation
	 	 	39	 
	 
	SECTION
	 	 	 	 	 	 
	6.

	 	Collateral
	 	 	39	 
	6.1.

	 	Grant of Security Interest
	 	 	39	 
	6.2.

	 	Limited License
	 	 	40	 
	6.3.

	 	Representations, Covenants and Agreements Regarding Collateral Generally
	 	 	40	 
	6.4.

	 	Representations Regarding Accounts and Inventory
	 	 	40	 
	6.5.

	 	Covenants and Agreements Regarding Accounts and Inventory
	 	 	41	 
	6.6.

	 	Covenants and Agreements Regarding Equipment
	 	 	42	 
	6.7.

	 	General Intangibles
	 	 	42	 
	6.8.

	 	Commercial Tort Claims
	 	 	42	 
	6.9.

	 	Letter of Credit Rights
	 	 	43	 
	6.10.

	 	Intentionally Omitted.
	 	 	43	 
	6.11.

	 	Reference to Other Loan Documents
	 	 	43	 
	6.12.

	 	Credit Balances; Additional Collateral
	 	 	43	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	SECTION
	 	 	 	 	 	 
	7.

	 	Representations, Warranties and Covenants
	 	 	44	 
	7.1.

	 	Initial Disclosure Representations and Warranties
	 	 	44	 
	7.2.

	 	Affirmative Covenants
	 	 	46	 
	7.3.

	 	Financial Covenants
	 	 	56	 
	7.4.

	 	Negative Covenants
	 	 	57	 
	7.5.

	 	Licensor Consent Letters
	 	 	60	 
	7.6.

	 	Landlord Waivers
	 	 	60	 
	7.7.

	 	Excluded Subsidiaries
	 	 	61	 
	7.8.

	 	Foreign Subsidiaries
	 	 	61	 
	 
	SECTION
	 	 	 	 	 	 
	8.

	 	Interest, Fees and Expenses
	 	 	61	 
	8.1.

	 	Interest
	 	 	61	 
	8.2.

	 	Default Interest Rate
	 	 	61	 
	8.3.

	 	Fees and Expenses Relating to Letters of Credit,
Bankers Acceptances, Steamship Guarantees and Airway
Releases
	 	 	62	 
	8.4.

	 	Out-of-Pocket Expenses
	 	 	62	 
	8.5.

	 	Line of Credit Fee; Charging of Interest and Fees
	 	 	62	 
	8.6.

	 	Intentionally Omitted
	 	 	62	 
	8.7.

	 	Fee Letter
	 	 	62	 
	8.8.

	 	Standard Operational Fees
	 	 	62	 
	8.9.

	 	LIBOR Loans
	 	 	63	 
	8.10.

	 	LIBOR Breakage Costs and Fees
	 	 	65	 
	8.11.

	 	Early Termination Fee
	 	 	65	 
	8.12.

	 	Capital Adequacy
	 	 	65	 
	8.13.

	 	Taxes, Reserves and Other Conditions
	 	 	66	 
	8.14.

	 	Authority to Charge Revolving Loan Account
	 	 	66	 
	 
	SECTION
	 	 	 	 	 	 
	9.

	 	Powers
	 	 	67	 
	9.1.

	 	Authority
	 	 	67	 
	9.2.

	 	Limitations on Exercise
	 	 	67	 
	 
	SECTION
	 	 	 	 	 	 
	10.

	 	Events of Default and Remedies
	 	 	67	 
	10.1.

	 	Events of Default
	 	 	67	 
	10.2.

	 	Remedies With Respect to Outstanding Loans
	 	 	69	 
	10.3.

	 	Remedies With Respect to Collateral
	 	 	70	 
	10.4.

	 	Application of Proceeds
	 	 	71	 
	10.5.

	 	General Indemnity
	 	 	71	 
	 
	SECTION
	 	 	 	 	 	 
	11.

	 	Termination
	 	 	72	 
	 
	SECTION
	 	 	 	 	 	 
	12.

	 	Miscellaneous
	 	 	72	 
	12.1.

	 	Waivers
	 	 	72	 
	12.2.

	 	Entire Agreement; Amendments
	 	 	73	 
	12.3.

	 	Usury Limit
	 	 	73	 
	12.4.

	 	Severability
	 	 	73	 
	12.5.

	 	WAIVER OF JURY TRIAL; SERVICE OF PROCESS
	 	 	73	 
	12.6.

	 	Notices
	 	 	74	 
	12.7.

	 	Joint and Several Liability
	 	 	75	 
	12.8.

	 	CHOICE OF LAW
	 	 	76	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	SECTION
	 	 	 	 	 	 
	13.

	 	Agreements Regarding the Lenders
	 	 	76	 
	13.1.

	 	Copies of Statements and Financial Information
	 	 	76	 
	13.2.

	 	Payments of Principal, Interest and Fees
	 	 	76	 
	13.3.

	 	Defaulting Lender
	 	 	76	 
	13.4.

	 	Participations and Assignments
	 	 	76	 
	13.5.

	 	Sharing of Liabilities
	 	 	77	 
	13.6.

	 	Exercise of Setoff Rights
	 	 	78	 
	13.7.

	 	Confidentiality
	 	 	78	 
	13.8.

	 	Register
	 	 	79	 
	 
	SECTION
	 	 	 	 	 	 
	14.

	 	Agency
	 	 	80	 
	14.1.

	 	Appointment of Agent; Powers
	 	 	80	 
	14.2.

	 	Delegation of Agent’s Duties
	 	 	80	 
	14.3.

	 	Disclaimer of Agent’s Liabilities
	 	 	80	 
	14.4.

	 	Reliance and Action by Agent
	 	 	81	 
	14.5.

	 	Events of Default
	 	 	81	 
	14.6.

	 	Lenders’ Due Diligence
	 	 	82	 
	14.7.

	 	Right to Indemnification
	 	 	82	 
	14.8.

	 	Other Transactions
	 	 	82	 
	14.9.

	 	Resignation of Agent
	 	 	82	 
	14.10.

	 	Voting Rights; Agent’s Discretionary Rights
	 	 	83	 
	14.11.

	 	Deemed Consent
	 	 	84	 
	14.12.

	 	Survival of Agreements of the Lenders
	 	 	84	 

iii

 

EXHIBITS

	 	 	 

	Exhibit A

	 	Form of Assignment and Transfer Agreement
	Exhibit B

	 	Form of Revolving Loan Promissory Note
	Exhibit D

	 	Form of Compliance Certificate
	Exhibit E

	 	Form of Borrowing Base Certificate
	Exhibit F

	 	Form Continuing Agreement for Issuance of Steamship Guaranties and Airway Releases
	Exhibit H

	 	Form of Available to Sell Report Designated in Dollars
	Exhibit I

	 	Form of Inventory Analysis Report
	Exhibit J

	 	Form of Key item Report
	Exhibit 7.5

	 	Form of Licensor Consent Letters
	Exhibit 7.6

	 	Form of Landlord Waiver Letters

SCHEDULES

	 	 	 

	Schedule 1.1(a)

	 	Existing Indebtedness
	Schedule 1.1(c)

	 	Existing Bankers Acceptances
	Schedule 1.1(d)

	 	Existing Letters of Credit
	Schedule 1.1(e)

	 	Excluded Subsidiaries
	Schedule 1.1(b)

	 	Description of Real Estate
	Schedule 7.1(b)

	 	Companies and Collateral Information
	Schedule 7.1(f)

	 	Environmental Matters
	Schedule 7.1(i)

	 	Taxes
	Schedule 7.1(k)

	 	Labor Matters
	Schedule 7.5

	 	Licensor Consent Letters
	Schedule 7.6

	 	Landlord Waivers

iv

 

     THE CIT GROUP/COMMERCIAL SERVICES, INC., a New York corporation, (“CIT”) with
offices located at 11 West 42nd Street, New York, New York 10036, (CIT and any other
entity presently or hereafter becoming a Lender hereunder pursuant to Section 13.4(b) of
this Financing Agreement, are collectively referred to as the “Lenders” and individually as
a “Lender”), and CIT, as the Agent for the Lenders (the “Agent”), are pleased to
confirm the terms and conditions under which the Lenders, acting through the Agent, shall make
revolving loans and other financial accommodations to G-III Leather Fashions, Inc., a New York
corporation (“G-III Inc.”), J. Percy for Marvin Richards, Ltd., a New York corporation
(“JPMR”), CK Outerwear, LLC, a New York limited liability company (“CKO”), A. Marc
& Co., Inc., a New York corporation (“AMC”) and Andrew & Suzanne Company Inc., a New York
corporation (“A&S” and together with G-III Inc., JPMR, CKO and AMC, individually a
“Company” and collectively, the “Companies”).

RECITALS

     WHEREAS, each of G-III Inc., JPMR and CKO (the “Original Companies”) were parties to
the that certain Financing Agreement (as amended by letter agreement dated as of August 1, 2005,
Amendment No. 2 to Financing Agreement dated as of February 24, 2006, Amendment No. 3 to Financing
Agreement dated as of July 26, 2006, Amendment No. 4 to Financing Agreement dated as of March 5,
2007, and as otherwise amended, supplemented or modified prior to the date hereof, the
“Original Financing Agreement”) dated as of July 11, 2005 (the “Original Closing
Date”) and related agreements and documents pursuant to which CIT and the other Lenders
extended to the Original Companies a Revolving Line of Credit in an amount of up to $165,000,000 in
the aggregate and a Term Loan in the aggregate amount of $30,000,000; and

     WHEREAS, pursuant to Purchase Agreement dated as of February 11, 2008, G-III Inc. acquired
100% of the issued and outstanding shares of the capital stock of AM Apparel Holdings, Inc., a
Delaware corporation and the owner of 100% of the issued and outstanding shares of the capital
stock of each of AMC and A&S; and

     WHEREAS, each of AMC and A&S desires to become a party to the Original Financing Agreement and
obtain Revolving Loans from the Lenders from time to time thereunder, which Agent and Lenders are
willing to do on the terms and conditions hereafter set forth; and

     WHEREAS, pursuant to certain Assignment and Transfer Agreements by and among CIT and other
Lenders dated various dates, a portion of the Commitment of CIT was assigned to other Lenders and,
as of the date hereof,
after giving effect to this Financing Agreement, the respective Commitment of each of the
Lenders is as set forth on the signature page hereof; and

     WHEREAS, the Companies have requested the Agent and the Lenders to (i) increase the Revolving
Line of Credit to up to $250,000,000, a portion of which would be used on the Closing Date to
repay, in full, the Term Loan, and (ii) make certain modifications to the terms and conditions set
forth in the Original Financing Agreement; and

 

 

     WHEREAS, under the terms and conditions hereof the Agent and the Lenders have agreed to
increase the Revolving Line of Credit as requested by the Companies, and make certain other
modifications to the terms and conditions of the Original Financing Agreement, and each of the
parties hereto desires to amend and restate the Original Financing Agreement, all as provided
herein.

     NOW, THEREFORE, in consideration of the mutual covenants and undertakings herein contained,
the Companies, Agent and Lenders hereby agree as follows:

AMENDMENT AND RESTATEMENT

     As of the date of this Amended and Restated Financing Agreement among the Companies, Agent and
Lenders (the “Financing Agreement”), the terms, conditions, covenants, agreements,
representations and warranties contained in the Original Financing Agreement shall be deemed
amended and restated in their entirety as follows and the Original Financing Agreement shall be
consolidated with and into and superseded by this Financing Agreement without breaking continuity;
provided, however, that nothing contained in this Financing Agreement shall impair,
limit or affect the security interests heretofore granted, pledged and or assigned to Agent as
security for the Obligations under the Original Financing Agreement and this Financing Agreement
does not constitute a novation of the Original Financing Agreement or the security interests
granted in connection therewith.

SECTION 1. DEFINITIONS

     1.1. Defined Terms. As used in this Financing Agreement:

     Accounts shall mean any and all of the Companies’ present and future: (a) accounts (as
defined in the UCC), including without limitation, Due from Factor Receivables; (b) instruments,
documents, chattel paper (including electronic chattel paper) (all as defined in the UCC); (c)
unpaid seller’s or lessor’s rights (including rescission, replevin, reclamation, repossession and
stoppage in transit) relating to the foregoing or arising therefrom; (d) rights to any goods
represented by any of the foregoing, including rights to returned, reclaimed or repossessed goods;
(e) reserves and credit balances arising in connection with or pursuant to this Financing
Agreement; (f) guaranties, other supporting obligations, payment intangibles and letter of credit
rights (all as defined in the UCC); (g) insurance policies or rights relating to any of the
foregoing; (h) general intangibles pertaining to any of the foregoing (including rights to payment,
including those arising in connection with bank and non-bank credit cards), and all books and
records and any electronic media and software relating thereto; (i) notes, deposits or other
property of the Companies’ account debtors securing the obligations owed by such account debtors to
the Companies; and (j) all Proceeds of any of the foregoing.

     Accounts Receivable Aging Report shall mean a summary account receivable trial balance
showing accounts receivable of the Companies as of the last day of the preceding week (in the case
of a weekly report) or month (in the case of a monthly report) outstanding from the due date set
forth in the invoice in the following categories: future, current, 1-30 days; 31-60 days; 61-90
days; and 90 days and over.

     Affiliate shall mean as to any Person, any other Person that directly or indirectly
controls, or is under common control with, or is controlled by, such Person. As used in this
definition, “control” (including, with its correlative meanings, “controlled by” and “under common
control

2

 

with”) shall mean possession, directly or indirectly, of power to direct or cause the
direction of management or policies (whether through ownership of securities or partnership or
other ownership interests, by contract or otherwise), provided, that, in any event: (i) any
Person that owns directly or indirectly securities having 5% or more (with respect to any
corporation other than the Parent) or 15% or more (with respect to the Parent) of the ordinary
voting power for the election of directors or other governing body of a corporation or 5% or more
of the partnership or other ownership interests of any Person (other than as a limited partner of
such other Person) will be deemed to control such corporation or other Person; and (ii) each
shareholder, director and officer of the Companies shall be deemed to be an Affiliate of the
Companies.

     Agent’s Bank Account shall mean the Agent’s bank account at JPMorgan Chase Bank (or
its successor) in New York, New York.

     Airway Releases shall mean airway releases agreed to be issued or caused to be issued
by Agent pursuant to the Continuing Agreement for Issuance of Steamship Guaranties and Airway
Releases.

     Applicable Margin shall mean, with respect to (a) the Revolving Loans, minus 0.25% for
Chase Bank Rate Loans and 2.00% for LIBOR Loans, (b) standby Letters of Credit, 1.50%, (c)
documentary Letters of Credit, 0.125%, or (d) Bankers Acceptances, Airway Releases and Steamship
Guaranties, CIT’s discount rate plus 2.50%.

     Asset Securitization shall mean with respect to any Person, a transaction involving
the sale or transfer of receivables by such Person to an SPV; provided, however,
that the Person may (A) establish and maintain a reserve account containing Cash or Securities as a
credit enhancement in respect of any such sale, or (B) purchase or retain a subordinated interest
in such receivables being sold.

     Asset Securitization Recourse Liability shall mean with respect to any Person, the
maximum amount of such Person’s liability (whether matured or contingent) under any agreement, note
or other instrument in connection with any one or more Asset Securitizations in which such Person
has agreed to repurchase receivables or other assets, to provide direct or indirect credit support
(whether through cash payments, the establishment of reserve accounts containing Cash or
Securities, an agreement to reimburse a provider of a letter of credit for any draws thereunder,
the purchase or retention of a subordinated interest in such receivables or other assets, or other
similar arrangements), or in which such person may be otherwise liable for all or a portion of any
SPV’s obligations under Securities issued in connection with such Asset Securitizations.

     Assignment and Transfer Agreement shall mean the Assignment and Transfer Agreement in
the form of Exhibit A attached hereto.

     Assignment of Factoring Proceeds Agreement shall mean the Amended and Restated
Intercreditor Agreement and Assignment of Factoring Proceeds dated as of the Closing Date, among
Factor, the Agent and the Companies, pursuant to which, inter alia, (a) each of the
Companies assigns and transfers to the Agent, on its behalf and on behalf of the Lenders, all of
their rights to the proceeds or monies due them under the Factoring Agreement, (b) the Agent, on

3

 

its behalf and on behalf of the Lenders, subordinates to Factor its lien upon all Accounts
(and related interests and proceeds) purchased by Factor under the Factoring Agreement and (c) the
Factor subordinates to the Agent and the Lenders its lien upon all other assets of the Companies.

     Attributable Indebtedness shall mean on any date, (a) in respect of any Capitalized
Lease of any Person, the capitalized amount thereof that would appear on a balance sheet of such
Person prepared as of such date in accordance with generally accepted accounting principles, and
(b) in respect of any Synthetic Lease Obligation, the capitalized amount of the remaining lease
payments under the relevant lease that would appear on a balance sheet of such Person prepared as
of such date in accordance with generally accepted accounting principles if such lease were
accounted for as a Capitalized Lease.

     Availability Reserve shall mean an amount equal to the sum of:

     (a) any reserve which the Agent may establish from time to time pursuant to the express terms
of this Financing Agreement, including without limitation, for any customer disputes, unpaid ad
valorem taxes, including sales taxes, plus

     (b) (i) three (3) months rental payments or similar charges for each Company’s leased premises
or other Collateral locations for which such Company has not delivered to the Agent a landlord’s
waiver in form and substance reasonably satisfactory to the Agent, and (ii) three (3) months
estimated payments (plus any other fees or charges owing by any Company) to any applicable
warehousemen or third party processor (as determined by the Agent in the exercise of its reasonable
business judgment), provided that any of the foregoing amounts shall be adjusted from time to time
hereafter upon (x) delivery to the Agent of any such acceptable waiver, (y) the opening or closing
of a Collateral location and/or (z) any change in the amount of rental, storage or processor
payments or similar charges; plus

     (c) at the option of the Agent, a monthly reserve for accrued interest on LIBOR Loans having
an Interest Period of more than 30 days; plus

     (d) such other reserves against Net Availability as the Agent deems necessary in the exercise
of its sole and absolute discretion, including without limitation with respect to Inventory which
is not subject to a licensor consent letter in the form of Exhibit 7.5; provided, however, that, in
determining the amount of any such Availability Reserve, the Agent shall take into account the
terms of any letter, consent or agreement as may actually be provided to the Agent from the
relevant licensor but which, in the Agent’s judgment, is less favorable to the Agent than that
contained in Exhibit 7.5.

     Banking Services means each and any of the following bank services provided to any
Company by any Lender or any of such Lender’s Affiliates: (a) commercial credit cards, purchasing
cards or other similar charge cards, (b) stored value cards and (c) treasury management services
(including, without limitation, controlled disbursement, automated clearinghouse transactions,
return items, overdrafts and interstate depository network services).

     Banking Services Obligations of the Companies means any and all obligations of the
Companies, whether absolute or contingent and howsoever and whensoever created, arising, evidenced
or acquired (including all renewals, extensions and modifications thereof and substitutions
therefor) in connection with Banking Services.

4

 

     Bankers Acceptance shall mean, at any time, a time draft that has been presented
and accepted by the Issuing Bank in connection with a documentary Letter of Credit, and with
respect to which the beneficiary of such Letter of Credit has received payment at a discount, or
will receive payment at a later date, and for which the Issuing
Bank has not received payment or reimbursement from a Company. Without limiting the foregoing,
as used herein the term Bankers Acceptances shall include the Existing Bankers Acceptances.

     Borrowing Base shall mean, at any time:

     (a) the sum at such time of: (i) eighty-five percent (85%) of the Companies’ aggregate
outstanding Eligible Accounts Receivable; plus (ii) the lesser of (x) the sum of (I) fifty percent
(50%) of the aggregate value of the Companies’ Eligible Inventory, valued at the lower of cost or
market on a first in, first out basis and (II) fifty percent (50%) of the undrawn amount of trade
Letters of Credit with respect to finished goods Inventory acceptable to the Agent in the exercise
of the Agent’s reasonable business judgment or (y) $100,000,000; plus (iii) Invested Cash plus (iv)
the Supplemental Amount; less

     (b) the aggregate amount of the Availability Reserve in effect at such time.

     Borrowing Base Certificate shall mean a fully-completed Certificate in the form of
Exhibit E hereto.

     Business Day shall mean any day on which the Agent and JPMorgan Chase Bank are open
for business in New York, New York; provided that, when used in connection with a LIBOR Loan, the
term “Business Day” shall also exclude any day on which banks are not open for dealings in dollar
deposits in the London interbank market.

     Capital Expenditures shall mean, for any period, the aggregate amount of all payments
made during such period by any Person directly or indirectly for the purpose of acquiring,
constructing or maintaining fixed assets, real property or equipment that, in accordance with
generally accepted accounting principles, would be added as a debit to the fixed asset account of
such Person, including, without limitation, all amounts paid or payable during such period with
respect to interest that are required to be capitalized in accordance with generally accepted
accounting principles.

     Capitalized Lease shall mean any lease, the obligations to pay rent or other amounts
under which constitute Capitalized Lease Obligations.

     Capitalized Lease Obligations shall mean as to any person, the obligations of such
Person to pay rent or other amounts under a lease of (or other agreement conveying the right to
use) real and /or personal property which obligations are required to be classified and accounted
for as a Capitalized Lease on a balance sheet of such Person under generally accepted accounting
principles and, for purpose hereof, the amount of such obligations shall be the capitalized amount
thereof, determined in accordance with generally accepted accounting principles.

5

 

     Cash shall mean as to any Person, such Person’s cash and cash equivalents, as
defined in accordance with generally accepted accounting principles consistently applied.

     Cash Collateral Account shall have the meaning set forth in Section 5.1 hereof.

     Cash Equivalents shall have the meaning set forth in Section 5.1 hereof.

     Casualty Proceeds shall mean (a) payments or other proceeds from an insurance carrier
with respect to any loss, casualty or damage to Collateral, and (b) payments received on account of
any condemnation or other governmental taking of any of the Collateral.

     Chase Bank Rate shall mean the rate of interest per annum announced by JPMorgan Chase
Bank (or its successor) from time to time as its “prime rate” in effect at its principal office in
New York City. (The prime rate is not intended to be the lowest rate of interest charged by
JPMorgan Chase Bank to its borrowers).

     Chase Bank Rate Loans shall mean any loans or advances made pursuant to this Financing
Agreement that bear interest based upon the Chase Bank Rate.

     CIT’s System shall mean the Agent’s internet-based loan accounting and reporting
system.

     Closing Date shall mean the date on which this Financing Agreement is executed by the
Companies, the Agent and the Lenders that initially are parties hereto, and delivered to the Agent.

     Collateral shall mean, collectively, all present and future Accounts, Equipment,
Inventory and other Goods, Documents of Title, General Intangibles, Investment Property, Real
Estate and Other Collateral.

     Commitment shall mean, as to each Lender, the amount of the Commitment for such Lender
set forth on the signature page to this Financing Agreement or in the Assignment and Transfer
Agreement to which such Lender is a party, as such amount may be reduced or increased in accordance
with the provisions of Section 13.4(b) or any other applicable provision of this Financing
Agreement.

     Compliance Certificate shall mean the fully-completed certificate in the form of
Exhibit D hereto.

     Confidential Information shall have the meaning provided for in Section 13.7
of this Agreement.

     Consolidated Balance Sheet shall mean a consolidated balance sheet for Parent and its
Subsidiaries, eliminating all intercompany transactions and prepared in accordance with GAAP.

     Consolidating Balance Sheet shall mean a Consolidated Balance Sheet of Parent and its
Subsidiaries plus individual balance sheets for the Companies, showing all eliminations of
intercompany transactions and prepared in accordance with GAAP.

6

 

     Continuing Agreement for Issuance of Steamship Guaranties and Airway Releases
shall mean and refer to the agreement attached hereto as Exhibit F.

     Copyrights shall mean all of the Companies’ present and hereafter acquired copyrights,
copyright registrations, recordings, applications, designs, styles, licenses, marks, prints and
labels bearing any of the foregoing, all reissues and renewals thereof, all licenses thereof, all
other general intangible, intellectual property and other rights pertaining to any of the
foregoing, together with the goodwill associated therewith, and all income, royalties and other
Proceeds of any of the foregoing.

     Default shall mean any event specified in Section 10.1 hereof, regardless of
whether any requirement for the giving of notice, the lapse of time, or both, or any other
condition, event or act, has occurred or been satisfied.

     Default Rate of Interest shall mean a rate of interest (which the Agent and the
Lenders shall be entitled to charge the Companies in the manner set forth in Section 8.2 of this
Financing Agreement) equal to (a) in respect of the principal amount of any Revolving Loan, two
percent (2%) per annum plus the interest rate accruing on such Revolving Loan pursuant to Section
8.1 hereof and (b) in respect of any other Obligation, two percent (2%) per annum plus the Chase
Bank Rate.

     Depository Account shall mean each bank account (and the related lockbox, if any)
subject to the Agent’s control that is established by the Agent or the Companies pursuant to
Section 2.1(j) or Section 3.2(c) of this Financing Agreement.

     Depository Account Control Agreement shall mean a three-party agreement in form and
substance satisfactory to the Agent among the Agent, the applicable Company and the bank which will
maintain a Depository Account, (a) which provides the Agent with control of such Depository Account
and provides for the transfer of funds in a manner consistent with the provisions of Section
3.2(b) of this Financing Agreement, and (b) pursuant to which such bank agrees that (x) all
cash, checks, wires and other items received or deposited into the Depository Account are the
property of the Agent, for the benefit of the Agent and the Lenders, and (y) except as otherwise
provided in the Depository Account Control Agreement, such bank has no lien upon, or right of set
off against, the Depository Account and any cash, checks, wires and other items from time to time
on deposit therein.

     Dilution Percentage shall mean, with respect to the Companies in the aggregate during
any period of measurement, the quotient (expressed as a percentage) obtained by dividing (a) the
aggregate amount of the Companies’ non-cash reductions against Trade Accounts Receivable, during
such period, by (b) the aggregate amount of the Companies’ gross sales during such period, as
determined by the Agent in the exercise of its reasonable business judgment. The Dilution
Percentage shall be determined by the Agent based on its reviews of the periodic financial and
collateral reports submitted by the Companies to the Agent as well as the results of the periodic
field examinations of the Companies conducted by the Agent from time to time. The period of
measurement for calculating the Dilution Percentage shall be determined by the Agent from time to
time in the exercise of its reasonable business judgment.

7

 

     Documentation Fees shall mean the Agent’s standard fees for the use of the
Agent’s in-house legal department relating to any and all modifications, waivers, releases, legal
file reviews or additional collateral with respect to this Financing Agreement, the Collateral
and/or the Obligations.

     Documents of Title shall mean all present and future documents (as defined in the
UCC), and any and all warehouse receipts, bills of lading, shipping documents, chattel paper,
instruments and similar documents, all whether negotiable or non-negotiable, together with all
Inventory and other Goods relating thereto, and all Proceeds of any of the foregoing.

     Domestic Subsidiary shall mean a Subsidiary that is organized under the laws of the
United States of America or any State thereof

     Due from Factor Receivables shall mean amounts due from Factor with respect to Trade
Accounts Receivable generated in the ordinary course of business of the Companies which are
purchased in each case by Factor under the Factoring Agreement and are and continue to be subject
to the Assignment of Factoring Proceeds Agreement and which are and continue to be credit approved
by Factor. In addition (but without duplication of the foregoing), Trade Accounts Receivable that
are purchased and not credit approved by Factor under the relevant Factoring Agreement may be
deemed Due from Factor Receivables if such Trade Accounts Receivable are subject to a valid,
exclusive, first priority and fully perfected security interest in favor of the Agent (subject only
to the Lien of the Factor), for the benefit of the Agent and the Lenders, and conform to the
warranties contained herein and which, at all times, continue to be acceptable to the Agent in the
exercise of its reasonable business judgment, less, without duplication, the sum of:

     (a) actual returns, discounts, claims, credits and allowances of any nature (whether issued,
owing, granted, claimed or outstanding), plus

     (b) reserves for such Trade Accounts Receivable that arise from, or are subject to or include:
(i) sales to the United States of America, any state or other governmental entity or to any agency,
department or division thereof, except for any such sales as to which the Companies have complied
with the Assignment of Claims Act of 1940 or any other applicable statute, rules or regulation to
the Agent’s satisfaction in the exercise of its reasonable business judgment; (ii) foreign sales,
other than sales which otherwise comply with all of the other criteria for eligibility hereunder
and are (x) secured by letters of credit (in form and substance satisfactory to the Agent) issued
or confirmed by, and payable at, banks acceptable to the Agent having a place of business in the
United States of America, or (y) to customers residing in Canada, provided that such
Accounts are payable in United States Dollars; (iii) Accounts that remain unpaid more than the
earlier of ninety (90) days from invoice date or sixty (60) days from due date; (iv) contra
accounts; (v) sales to (A) Parent, (B) any Subsidiary of any Company, (C) any 15% or greater
shareholder of Parent, any Company or any Subsidiary of any Company or (D) any other Person
otherwise Affiliated with Parent, any Company or any Subsidiary of any Company; (vi) bill and hold
(deferred shipment) or consignment sales; (vii) sales to any customer which is either (w)
insolvent, (x) the debtor in any bankruptcy, insolvency, arrangement, reorganization, receivership
or similar proceedings under any federal or state law, (y) negotiating, or has called a meeting of
its creditors for purposes of negotiating, a compromise of its debts, or (z) financially

8

 

unacceptable to the Agent or has a credit rating unacceptable to the Agent; (viii) all sales
to any customer if fifty percent (50%) or more of the aggregate dollar amount of all outstanding
invoices to such customer are unpaid more than the earlier of ninety (90) days from invoice date or
sixty (60) days from due date; (ix) sales to any customer and/or its affiliates to the extent the
aggregate outstanding amount of such sales at any time exceed twenty percent (20%) or more of all
Eligible Accounts Receivable at such time; (x) pre-billed receivables and receivables arising from
progress billings; and (xi) sales not payable in United States currency; plus

     (c) reserves established by the Agent to account for increases in the Companies’ Dilution
Percentage above the Companies’ historical Dilution Percentage, and such other reserves against
Trade Accounts Receivable as the Agent deems necessary in the exercise of its reasonable business
judgment and which are customary either in the commercial finance industry or in the lending
practices of the Agent or the Lenders; plus

     (d) Trade Accounts Receivable (i) with respect to which any check or other instrument of
payment has been returned uncollected for any reason; (ii) evidenced by any promissory note,
chattel paper or instrument; (iii) that do not comply in all material respects with the
requirements of all applicable laws and regulations; and (iv) which
represent a sale on a bill-and-hold, guaranteed sale, sale-and-return, consignment which is
billed prior to actual sale to the end user, cash-on-delivery or any other repurchase or return
basis.

     Early Termination Date shall mean a date prior to the Termination Date on which the
Companies prepay the entire Revolving Loan and terminate this Financing Agreement or the Revolving
Line of Credit (within two years of the Closing Date).

     Early Termination Fee shall mean an amount equal to the product obtained by
multiplying (a) the sum of the average daily principal amount of the Revolving Loans and average
undrawn amount of Letters of Credit, Bankers Acceptances, Steamship Guarantees and Airway Releases
(each calculated from the Closing Date through the Early Termination Date) times (b) (i) one
percent (1.0%) if the Early Termination Date occurs on or before the first anniversary of the
Closing Date, and (ii) one half of one percent (0.50%) if the Early Termination Date occurs after
the first anniversary of the Closing Date but on or before the second anniversary of the Closing
Date.

     EBITDA shall mean, for any period, (a) all earnings of Parent and its Subsidiaries on
a consolidated basis for such period (b) before all interest, tax obligations, depreciation
and amortization expense, any other non-cash charges of Parent and its Subsidiaries on a
consolidated basis for such period, all determined in conformity with GAAP on a basis consistent
with the latest audited financial statements of Parent and its Subsidiaries, (c) but, for all
periods, excluding the effect of any extraordinary and/or nonrecurring gains or losses for
such period.

     Electronic Transmission shall have the meaning given to such term in Section
7.2(g) of this Financing Agreement.

9

 

     Eligible Accounts Receivable shall mean, as to any Company, the gross amount of
such Company’s Due from Factor Receivables plus (without duplication of any Due from Factor
Receivables) the amount of such Company’s Eligible Trade Accounts Receivable.

     Eligible Assignee shall mean (i) a Lender; (ii) an Affiliate of a Lender; and (iii)
subject to the prior approval of the Agent and, so long as no Event of Default shall have occurred
and be continuing, the Companies, such approval by the Agent or the Companies not to be
unreasonably withheld or delayed, (A) a commercial bank organized under the laws of the United
States of America, or any State thereof, and having total assets in excess of $500,000,000; (B) a
savings association or savings bank organized under the laws of the United States of America, or
any State thereof, and having total assets in excess of $500,000,000; (C) a commercial bank
organized under the laws of any other country that is a member of the Organization for Economic
Cooperation and Development (“OECD”) or has included special lending arrangements with the
International Monetary Fund associated with its General Arrangements to Borrower or of the Cayman
Islands, or a political subdivision of any such country, and having total assets in excess of
$500,000,000, so long as such bank is acting through a branch or agency located in the United
States of America; (D) the central bank of any country that is a member of the OECD; and (E) a
finance company, insurance company or other financial institution or fund (whether a corporation,
partnership, trust or other entity) that is engaged in making, purchasing or otherwise investing in
commercial loans (of a size similar to the Loans) in the ordinary course of its business and having
total assets in excess of $500,000,000; provided, however, that neither any Company
nor any Affiliate of any Company shall qualify as an Eligible Assignee under this definition.

     Eligible Inventory shall mean the gross amount of the Companies’ Inventory that is
subject to a valid, exclusive, first priority and fully perfected security interest in favor of the
Agent, for the benefit of the Agent and the Lenders, and which conforms to the warranties contained
herein, is marketable in the ordinary course of the Companies’ business, has not been produced in
violation of applicable law and which, at all times continues to be acceptable to the Agent in the
exercise of its reasonable business judgment, less, without duplication, (a) all work-in-process,
(b) raw materials and supplies, (c) all Inventory not present in the United States of America, (d)
all
Inventory returned or rejected by the Companies’ customers (other than goods that are
undamaged and resalable in the normal course of business) and goods to be returned to the
Companies’ suppliers, (e) all Inventory in transit or in the possession of a warehouseman, bailee,
third party processor, or other third party, unless such warehouseman, bailee or third party has
executed a notice of security interest agreement (in form and substance satisfactory to the Agent)
and such other documents as the Agent may require, (f) perishables, and (g) the amount of such
other reserves against Inventory as the Agent deems necessary in the exercise of its reasonable
business judgment, including, without limitation, reserves for special order, licensed or private
label goods, discontinued, slow-moving and obsolete Inventory, market value declines, bill and hold
(deferred shipment), Inventory purchased by the Companies on consignment or sold by the Companies
on consignment, shrinkage and any applicable customs, freight, duties and Taxes.

10

 

     Eligible Trade Accounts Receivables shall mean the Trade Accounts Receivable of a
Company that are subject to a valid, exclusive, first priority and fully perfected security
interest in favor of the Agent, for the benefit of the Agent and the Lenders, and conform to the
warranties contained herein and which, at all times, continue to be acceptable to the Agent in the
exercise of its reasonable business judgment, less, without duplication, the sum of:

     (a) actual returns, discounts, claims, credits and allowances of any nature (whether issued,
owing, granted, claimed or outstanding), plus

     (b) reserves for such Trade Accounts Receivable that arise from, or are subject to or include:
(i) sales to the United States of America, any state or other governmental entity or to any agency,
department or division thereof, except for any such sales as to which the Companies have complied
with the Assignment of Claims Act of 1940 or any other applicable statute, rules or regulation to
the Agent’s satisfaction in the exercise of its reasonable business judgment; (ii) foreign sales,
other than sales which otherwise comply with all of the other criteria for eligibility hereunder
and are (x) secured by letters of credit (in form and substance satisfactory to the Agent) issued
or confirmed by, and payable at, banks acceptable to the Agent having a place of business in the
United States of America, or (y) to customers residing in Canada, provided that such Accounts are
payable in United States Dollars; (iii) Accounts that remain unpaid more than the earlier of ninety
(90) days from invoice date or sixty (60) days from due date; (iv) contra accounts; (v) sales to
(A) Parent, (B) any Subsidiary of any Company, (C) any 15% or greater shareholder of Parent, any
Company or any Subsidiary of any Company or (D) any other Person otherwise Affiliated with Parent,
any Company or any Subsidiary of any Company; (vi) bill and hold (deferred shipment) or consignment
sales; (vii) sales to any customer which is either (w) insolvent, (x) the debtor in any bankruptcy,
insolvency, arrangement, reorganization, receivership or similar proceedings under any federal or
state law, (y) negotiating, or has called a meeting of its creditors for purposes of negotiating, a
compromise of its debts, or (z) financially unacceptable to the Agent or has a credit rating
unacceptable to the Agent; (viii) all sales to any customer if fifty percent (50%) or more of the
aggregate dollar amount of all outstanding invoices to such customer are unpaid more than the
earlier of ninety (90) days from invoice date or sixty (60) days from due date; (ix) sales to any
customer and/or its affiliates to the extent the aggregate outstanding amount of such sales at any
time exceed twenty percent (20%) or more of all Eligible Accounts Receivable at such time; (x)
pre-billed receivables and receivables arising from progress billings; and (xi) sales not payable
in United States currency; plus

     (c) reserves established by the Agent to account for increases in the Companies’ Dilution
Percentage above the Companies’ historical Dilution Percentage, and such other reserves against
Trade Accounts Receivable as the Agent deems necessary in the exercise of its reasonable business
judgment and which are customary either in the commercial finance industry or in the lending
practices of the Agent or the Lenders; plus

     (d) Trade Accounts Receivable (i) with respect to which any check or other instrument of
payment has been returned uncollected for any reason; (ii) evidenced by any promissory note,
chattel paper or instrument; (iii) that do not comply in all material respects with the
requirements of all applicable laws and regulations; and (iv) which
represent a sale on a bill-and-hold, guaranteed sale, sale-and-return, consignment which is
billed prior to actual sale to the end user, cash-on-delivery or any other repurchase or return
basis.

11

 

     Equipment shall mean all of the Companies’ present and hereafter acquired
equipment (as defined in the UCC) including, without limitation, all machinery, equipment, rolling
stock, furnishings and fixtures, and all additions, substitutions and replacements thereof,
wherever located, together with all attachments, components, parts, equipment and accessories
installed thereon or affixed thereto and all Proceeds of any of the foregoing.

     ERISA shall mean the Employee Retirement Income Security Act or 1974, as amended from
time to time, and the rules and regulations promulgated thereunder from time to time.

     Eurocurrency Reserve Requirements shall mean for any day, as applied to a LIBOR Loan,
the aggregate (without duplication) of the maximum rates of reserve requirement (expressed as a
decimal fraction) in effect with respect to the Agent or any Lender on such day (including, without
limitation, basic, supplemental, marginal and emergency reserves under Regulation D or any other
applicable regulations of the Board of Governors of the Federal Reserve System or other
governmental authority having jurisdiction with respect thereto, as now and from time to time in
effect, dealing with reserve requirements prescribed for Eurocurrency funding (currently referred
to as “Eurocurrency Liabilities” in Regulation D of such Board) maintained by the Agent or any
Lender (such rates to be adjusted to the nearest one-sixteenth of one percent (1/16 of 1%) or, if
there is not a nearest one-sixteenth of one percent (1/16 of 1%), to the next higher one sixteenth
of one percent (1/16 of 1%).

     Event(s) of Default shall have the meaning given to such term in Section 10.1 of this
Financing Agreement.

     Excluded Subsidiary shall mean each corporation or other entity listed on Schedule
1.1(e) hereto.

     Existing Bankers Acceptances shall mean the bankers acceptances issued by CIT or with
the assistance of CIT, as set forth on Schedule 1.1(c) hereto.

     Existing Letters of Credit shall mean the letters of credit issued by CIT or with the
assistance of CIT, as set forth on Schedule 1.1(d) hereto.

     Factor shall mean The CIT Group/Commercial Services, Inc. in its capacity as Factor
pursuant to the Factoring Agreement. Notwithstanding anything to the contrary contained herein or
in any other Loan Document, any reference herein or in any other Loan Document to “Factor” shall
not include CIT in its capacity as “Agent” or “Lender” and any reference herein or in any Loan
Document to “Agent” or “Lender” shall not include CIT in its capacity as “Factor”.

     Factoring Agreement shall mean the Amended and Restated Accounts Receivable Purchase
Agreement dated November 8, 1995 between CIT and G-III; as such agreement has been, and may
hereafter be, supplemented, modified, amended or amended and restated from time to time.

     Factoring Fees shall mean the fees payable to Factor by the Companies pursuant to the
Factoring Agreement, solely on behalf of Factor.

     Fee Letter shall mean the letter regarding fees dated April 3, 2008 by CIT to G-III.

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     Fixed Charge Coverage Ratio shall mean, for any period, the quotient (expressed
as a ratio) obtained by dividing (a) EBITDA of Parent and its Subsidiaries on a consolidated basis
for such period by (b) Fixed Charges of Parent and its Subsidiaries on a consolidated basis for
such period.

     Fixed Charges shall mean, for any period, the sum of (a) all interest obligations
(including the interest component of Capitalized Leases) of Parent and its Subsidiaries on a
consolidated basis paid or due during such period, (b) the amount of principal repaid or scheduled
to be repaid on other Indebtedness of Parent and its Subsidiaries on a consolidated basis
(including, without limitation, the amount of principal repaid or scheduled to be repaid with
respect to Capitalized Leases, but in all cases excluding the Revolving Loans) during such period,
(c) unfinanced Capital Expenditures, as incurred by the Parent and its Subsidiaries on a
consolidated basis during such period (other than Special Capital Expenditures), and (d) all
federal, state and local income tax expenses accrued by Parent and its Subsidiaries on a
consolidated basis during such period (as reflected in the financial statements of Parent and its
Subsidiaries) or Permitted Distributions paid to shareholders in lieu of such taxes as permitted
under Section 7.4(f) hereof).

     Funds Administrator shall mean G-III Inc. in its capacity as the borrowing agent and
loan funds administrator on behalf of itself and the other Companies.

     GAAP shall mean generally accepted accounting principles in the United States of
America as in effect from time to time and for the period as to which such accounting principles
are to apply.

     General Intangibles shall mean all of the Companies’ present and hereafter acquired
general intangibles (as defined in the UCC), and shall include, without limitation, all present and
future right, title and interest in and to: (a) all Trademarks, (b) Patents, utility models,
industrial models, and designs, (c) Copyrights, (d) trade secrets, (e) licenses, permits and
franchises, (f) any other forms of intellectual property, (g) all domain names, customer lists,
distribution agreements, supply agreements, blueprints, indemnification rights and tax refunds, (h)
all monies and claims for monies now or hereafter due and payable in connection with the foregoing,
including, without limitation, payments for infringement and royalties arising from any licensing
agreement between any Company and any licensee of any of such Company’s General Intangibles, and
(i) all Proceeds of any of the foregoing.

     Goods shall mean all present and hereafter acquired “goods”, as defined in the UCC,
and all Proceeds thereof.

     Guaranties shall mean the guaranty agreements executed and delivered to the Agent by
Guarantors.

     Guarantors shall mean (a) Parent and each Domestic Subsidiary of Parent that is not a
Company or an Excluded Subsidiary (including without limitation Holdings and each Domestic
Subsidiary of Holdings that is not a Company or an Excluded Subsidiary), and (b) any other future
guarantor of all or any part of the Obligations.

13

 

     Holdings shall mean AM Apparel Holdings, Inc., a Delaware corporation and the
owner of 100% of the issued and outstanding shares of the capital stock of each of AMC and A&S.

     Indebtedness shall mean, without duplication, with respect to any Person, all: (i)
liabilities or obligations, direct and contingent, which in accordance with generally accepted
accounting principles would be included in determining total liabilities as shown on the liability
side of a balance sheet of such Person at the date as of which Indebtedness is to be determined,
including, without limitation, contingent liabilities that in accordance with such principles,
would be set forth in a specific Dollar amount on the liability side of such balance sheet; (ii)
liabilities or
obligations of others for which such Person is directly or indirectly liable, by way of
guaranty (whether by direct guaranty, suretyship, discount, endorsement, take-or-pay agreement,
agreement to purchase or advance or keep in funds or other agreement having the effect of a
guaranty) or otherwise; (iii) liabilities or other obligations secured by liens, security interests
or other encumbrances on any assets of such Person, whether or not such liabilities or obligations
shall have been assumed by it; (iv) liabilities or obligations of such Person, direct or
contingent, with respect to letters of credit issued for the account of such Person and bankers
acceptances created for such Person; (v) Asset Securitization Recourse Liabilities to the extent,
but only to the extent that such obligations have matured; (vi) Capitalized Lease Obligations and
Synthetic Lease Obligations of such Person (the amount of any Capitalized Lease Obligation or
Synthetic Lease Obligation as of any date shall be deemed to be the amount of Attributable
Indebtedness in respect thereof as of such date); and (vii) liabilities or obligations of such
Person in respect of letters of credit, bankers acceptances, steamship guarantees and airway
releases and Swap Contracts.

     Indemnified Party shall have the meaning given to such term in Section 10.5 of this
Financing Agreement.

     Interest Period shall mean, subject to availability: (a) with respect to an initial
request by the Companies for a LIBOR Loan or the conversion of a Chase Bank Rate Loan to a LIBOR
Loan, at the option of the Companies a one-month, two-month, three-month or six-month period
commencing on the borrowing or conversion date with respect to such LIBOR Loan and ending one
month, two months, three months or six months thereafter, as applicable; and (b) with respect to
any continuation of a LIBOR Loan, at the option of the Companies a one-month, two-month,
three-month or six-month period commencing on the last day of the immediately preceding Interest
Period applicable to such LIBOR Loan and ending one month, two months, three months or six months
thereafter, as applicable; provided that (i) if any Interest Period would otherwise end on
a day which is not a Working Day, such Interest Period shall be extended to the next succeeding
Working Day, and (ii) if any Interest Period begins on the last Working Day of any month, or on a
day for which there is no numerically corresponding day in the month in which such Interest Period
ends, such Interest Period shall end on the last Working Day of the month in which such Interest
Period ends.

     Inventory shall mean all of the Companies’ present and hereafter acquired inventory
(as defined in the UCC) including, without limitation, all merchandise and inventory in all stages
of production (from raw materials through work-in-process to finished goods), and all additions,
substitutions and replacements thereof, wherever located, together with all goods and materials
used or usable in manufacturing, processing, packaging or shipping of the foregoing, and all
Proceeds of any of the foregoing.

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     Invested Cash shall mean Cash of G-III Inc. invested with Banc of America
Securities LLC which is subject to that certain Collateral Account Notification and Acknowledgement
dated December 5, 2005 between G-III Inc. and Agent, and any other Cash of the Companies which (a)
is not maintained in a Depository Account, (b) has been designated by the Companies, with the
written consent of Agent, as Invested Cash and (c) is invested by the Companies with a financial
institution reasonably acceptable to the Agent pursuant to a collateral deposit agreement in form
and substance satisfactory to the Agent in all respects, excluding any ‘peg balance’ or other
minimum balance that any such agreement provides will not be wired to the Agent. Notwithstanding
the foregoing, and without limitation of any other provisions of this Agreement, no Cash of the
Companies shall be deemed to be Invested Cash unless (x) it is subject to the first priority
perfected security interest of the Agent for the benefit of Lenders and (y) at the option of the
Agent, the agreement establishing such perfected security interest shall be the subject of an
opinion of counsel in form and substance satisfactory to the Agent, including with respect to
perfection.

     Investment Property shall mean all of the Companies’ present and hereafter acquired
“investment property”, as defined in the UCC, together with all stock and other equity interests in
the Companies’ subsidiaries, and all Proceeds thereof.

     Issuing Bank shall mean, as applicable, CIT or any other Lender issuing a Letter of
Credit for a Company, a Bankers Acceptance, a Steamship Guaranty or an Airway Release with respect
to such Letter of Credit.

     Ledger Debt shall mean the outstanding amount of any indebtedness for goods and
services purchased by any Company or its affiliates from any company or entity whose accounts are
factored by Factor (including any ledger debt assumed by the Companies pursuant to the acquisitions
contemplated under this Agreement).

     Letters of Credit shall mean all letters of credit issued for or on behalf of a
Company with the assistance of the Lenders (acting through the Agent) by an Issuing Bank in
accordance with Section 5 hereof. Without limiting the foregoing, as used herein the term
Letters of Credit shall include the Existing Letters of Credit.

     Letter of Credit Guaranty shall mean any guaranty, indemnity agreement, assumption and
confirmation agreement or similar agreement delivered by the Agent on behalf of the Lenders (but
subject to the terms of Section 5.8), to an Issuing Bank of a Company’s reimbursement obligation
under such Issuing Bank’s reimbursement agreement, application for letter of credit, bankers
acceptance, steamship guarantee, airway release or other like document.

     Letter of Credit Guaranty Fee shall mean the fee that the Agent, for the benefit of
the Lenders, shall charge the Companies under Section 8.3(a) of this Financing Agreement
for issuing a Letter of Credit Guaranty or otherwise assisting the Companies in obtaining Letters
of Credit.

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     Letter of Credit Sub-Line shall mean the aggregate commitment of the Lenders to
assist the Companies in obtaining Letters of Credit (and with respect to trade Letters of Credit,
Bankers Acceptances) in an aggregate amount of up to (x) $85,000,000 for trade Letters of Credit,
Bankers Acceptances, Steamship Guarantees and Airway Releases and (y) $10,000,000 for standby
Letters of Credit.

     LIBOR shall mean, for any Interest Period and subject to availability, a rate of
interest equal to the quotient obtained by dividing: (a) at the Agent’s election, (i) LIBOR for
such Interest Period as quoted to the Agent by JPMorgan Chase Bank (or any successor thereof) two
(2) Business Days prior to the first day of such Interest Period, or (ii) the rate of interest
determined by the Agent at which deposits in U.S. Dollars are offered for such Interest Period as
presented on Telerate Systems at page 3750 as of 11:00 a.m. (London time) two (2) Business Days
prior to the first day of such Interest Period (provided that if two or more offered rates
are presented on Telerate Systems at page 3750 for such Interest Period, the arithmetic mean of all
such rates, as determined by the Agent, will be the rate elected); by (b) a number equal to 1.00
minus the Eurocurrency Reserve Requirements, if any, in effect on the day which is two (2) Business
Days prior to the beginning of such Interest Period.

     LIBOR Interest Payment Date shall mean, with respect to any LIBOR Loan, the last day
of the Interest Period for such LIBOR Loan and, with respect to Interest Periods of greater than
three months duration, the first day of the third month after the start of such Interest Period
(counting the month in which such Interest Period starts as the first month).

     LIBOR Lending Office shall mean, (a) with respect to the Agent and CIT, the office of
JPMorgan Chase Bank, or any successor thereof, located at 270 Park Avenue, New York, NY 10017, and
(b) with respect to each Lender, the address set forth on the signature page to this Financing
Agreement or the Assignment and Transfer Agreement to which such Lender is a party.

     LIBOR Loan shall mean any loans made pursuant to this Financing Agreement that bear
interest based upon LIBOR.

     Line of Credit shall mean the aggregate commitment of the Lenders in an amount equal
to $250,000,000 to (a) make Revolving Loans pursuant to Section 3 of this Financing
Agreement, and (b) assist any Company in opening Letters of Credit and/or Bankers Acceptances
pursuant to Section 5 of this Financing Agreement.

     Line of Credit Fee shall mean, for any month, the product obtained by multiplying (a)
(i) the amount of the Revolving Line of Credit minus (ii) the average daily principal
balance of Revolving Loans and the average daily undrawn amount of Letters of Credit, Bankers
Acceptances, Steamship Guarantees and Airway Releases outstanding during such month, times
(b) one-quarter of one percent (0.25%) per annum for the number of days in said month;
provided, however, that the Line of Credit Fee during any one year period
commencing on the Closing Date and ending on the day before each anniversary thereof shall not
exceed $95,000.

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     Loan Documents shall mean this Financing Agreement, the Promissory Notes,
mortgages and deeds of trust on any Real Estate, the Guaranties, the other closing documents
executed by the Companies or the Guarantors, and any other ancillary loan and security agreements
executed by the Companies or the Guarantors from time to time in connection with the Original
Financing Agreement, this Financing Agreement and/or the Factoring Agreement, all as may be
renewed, amended, restated or supplemented from time to time.

     Material Adverse Effect shall mean a material adverse effect on either (a) the
business, condition (financial or otherwise), operations, performance, properties or prospects of
the Companies taken as a whole, (b) the ability of any Company to perform its obligations under
this Financing Agreement or any other Loan Document, or to enforce its rights against account
debtors of such Company, (c) the value of the Collateral or (d) the ability of the Agent or the
Lenders to enforce the Obligations or their rights and remedies under this Financing Agreement or
any of the other Loan Documents.

     Net Availability shall mean, at any time, the amount by which (a) the lesser of (x)
the Revolving Line of Credit and (y) the Borrowing Base of the Companies at such time exceeds (b)
the sum at such time of (i) the principal amount of all outstanding Revolving Loans, plus
(ii) the undrawn amount of all outstanding Letters of Credit, Bankers Acceptances, Steamship
Guarantees and Airway Releases.

     Net Orderly Liquidation Value shall mean, at any time, the aggregate value of the
Companies’ Inventory at such time in an orderly liquidation, taking into account all costs, fees
and expenses estimated to be incurred by the Agent and the Lenders in connection with such
liquidation, based upon the most recent appraisal of the Companies’ Inventory conducted by an
appraiser selected by the Agent.

     Non-Excluded Taxes shall mean any income, stamp or other taxes, duties, levies,
imposts, charges, fees, deductions or withholdings, now or hereafter imposed, levied, collected,
withheld or assessed by any governmental authority, other than net income or franchise taxes
imposed with respect to a Lender by a governmental authority under the laws of which such Lender
(or any other lending office, branch or affiliate thereof) is organized or in which it maintains an
office.

     Obligations shall mean: (a) all loans, advances and other extensions of credit made by
the Lenders, or the Agent for the account of the Lenders, to the Companies (or any of them), or to
others for the Companies’ account (including, without limitation, all Revolving Loans, Bankers
Acceptances, Steamship Guarantees and Airway Releases and all obligations of the Agent under Letter
of Credit Guaranties); (b) any and all other indebtedness, obligations and liabilities which may be
owed by the Companies (or any of them) to the Agent or any Lender and arising out of, or incurred
in connection with, this Financing Agreement or any of the other Loan Documents (including all
Out-of-Pocket Expenses), whether (i) now in existence or incurred by the Companies (or any of them)
from time to time hereafter, (ii) secured by pledge, lien upon or security interest in any
Company’s assets or property or the assets or property of any other person, firm, entity or
corporation, (iii) such indebtedness is absolute or contingent, joint or several, matured or
unmatured, direct or indirect, or (iv) the Companies are liable to the Agent
or any Lender for such indebtedness as principals, sureties, endorsers, guarantors or
otherwise; (c) without duplication, the Companies’ liabilities to the Agent under any instrument of
guaranty or indemnity, or arising under any guaranty, endorsement or undertaking which the Agent,
on

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behalf of the Lenders, may make or issue to others for the account of the Companies (or any of
them), including any accommodations extended by the Agent with respect to applications for Letters
of Credit, the Agent’s acceptance of drafts or the Agent’s endorsement of notes or other
instruments for the Companies’ account and benefit; (d) any and all indebtedness, obligations and
liabilities which may be owed by the Companies (or any of them) to the Agent or any Lender with
respect to Swap Contracts and Banking Services Obligations; (e) any and all indebtedness,
obligations and liabilities incurred by, or imposed on, the Agent or any Lender as a result of
environmental claims relating to any Company’s operations, premises or waste disposal practices or
disposal sites; (f) all indebtedness, obligations and liabilities incurred under the Factoring
Agreement; and (g) all Ledger Debt.

     Operating Leases shall mean all leases of property (whether real, personal or mixed)
other than Capitalized Leases.

     Original Closing Date shall have the meaning provided for such term in the Recitals to
this Agreement.

     Original Companies shall have the meaning provided for such term in the Recitals to
this Agreement.

     Original Financing Agreement shall have the meaning provided for such term in the
Recitals to this Agreement.

     Other Collateral shall mean all of the Companies’: (a) present and hereafter
established lockbox, blocked account and other deposit accounts maintained with any bank or
financial institution into which the proceeds of Collateral are or may be deposited (including the
Depository Accounts); (b) Cash and other property in the possession of, or under the control of,
the Agent or any Lender (including negative balances in the Revolving Loan Account and cash
collateral held by the Agent pursuant this Financing Agreement); (c) Invested Cash; (d) books,
records, ledger cards, disks and related data processing software at any time evidencing or
containing information relating to any of the Collateral described herein or otherwise necessary or
helpful in the collection thereof or realization thereon; and (e) all Proceeds of any of the
foregoing.

     Other Permitted Investments shall mean any of the following, in each case subject to
the first priority perfected security interest of the Agent pursuant to arrangements acceptable to
Agent, and maturing or being due or payable in full not more than 180 days after a Company’s
acquisition thereof:

     (i) obligations issued or guaranteed by the United States of America;

     (ii) certificates of deposit, bankers acceptances and other “money market instruments” issued
by any bank or trust company organized under the laws of the United States of America or any State
thereof and having capital and surplus in an aggregate amount of not less than $100,000,000;

     (iii) open market commercial paper bearing the highest credit rating issued by Standard &
Poor’s Corporation or by another nationally recognized credit rating agency;

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     (iv) repurchase agreements entered into with any bank or trust company organized under
the laws of the United States of America or any State thereof and having capital and surplus in an
aggregate amount of not less than $100,000,000 relating to United States of America government
obligations; and

     (v) shares of “money market funds”, each having net assets of not less than $100,000,000;

     (vi) corporate securities, including commercial paper, rated A1/P1 or better, and corporate
debt instruments, including medium term notes and floating rate notes issued by foreign or domestic
corporations which pay in U.S. dollars and carrying a rate of A1/A+ or better;

     (vii) asset-backed securities rated AAA or better, with a maturity, average life, soft bullet
date, or put date exercisable at the option of the holder of no more than thirty-six (36) months;

     (viii) corporate auction rate issues with a maximum term to reset date of 365 days and rated
A1 or better; and

     (ix) (a) shares of common stock of any publicly traded company having a market capitalization
of no less than $500,000,000, in an aggregate amount at any time not to exceed $5,000,000 or (b)
shares of common stock of any publicly traded company having a market capitalization of less than
$500,000,000, in an aggregate amount at any time not to exceed $3,000,000;

provided, however, that the foregoing Other Permitted Investments may be made only
if the outstanding principal balance of the Revolving Loans is zero.

     Out-of-Pocket Expenses shall mean all of the Agent’s and the Lenders’ present and
future costs, fees and expenses incurred in connection with this Financing Agreement and the other
Loan Documents and the Factoring Agreement, including, without limitation, (a) the cost of lien
searches (including tax lien and judgment lien searches), pending litigation searches and similar
items, (b) fees and taxes imposed in connection with the filing of any financing statements or
other personal property security documents; (c) all costs and expenses incurred by the Agent in
opening and maintaining the Depository Accounts and any related lockboxes, depositing checks, and
receiving and transferring funds (including charges imposed on the Agent for “insufficient funds”
and the return of deposited checks); (d) any amounts paid by, incurred by or charged to the Agent
by an Issuing Bank under any Letter of Credit or the reimbursement agreement relating thereto, any
application for Letter of Credit, Letter of Credit Guaranty or other like document which pertains
either directly or indirectly to Letters of Credit, and the Agent’s standard fees relating to the
Letters of Credit and any drafts thereunder; (e) title insurance premiums, real estate survey
costs, note taxes, intangible taxes and mortgage or recording taxes and fees; (f) all appraisal
fees and expenses payable by the Companies hereunder, and all costs, fees and expenses incurred by
the Agent and the Lenders in connection with any action taken under Section 7.2(a) hereof,
including reasonable travel, meal and lodging expenses of the Agent’s personnel; (g) all costs that
the Agent may incur to maintain the

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Required Insurance, and all reasonable costs, fees and expenses incurred by the Agent in
connection with the collection of Casualty Proceeds and the monitoring of any repair or restoration
of any Real Estate; (h) all reasonable and reasonably documented costs, fees, expenses and
disbursements of outside counsel hired by the Agent to consummate the transactions contemplated by
this Financing Agreement (including the documentation and negotiation this Financing Agreement, the
other Loan Documents and all amendments, supplements and restatements thereto or thereof), and to
advise the Agent and/or the Lenders as to matters relating to the transactions contemplated hereby;
(i) all costs, fees and expenses incurred by the Agent and the Lenders in connection with any
action taken under Section 10.3 hereof; and (j) without duplication, all costs, fees and
expenses incurred by the
Agent and the Lenders in connection with the collection, liquidation, enforcement, protection and
defense of the Obligations, the Collateral and the rights of the Agent and the Lenders under this
Financing Agreement and the other Loan Documents, including, without limitation, all reasonable
fees and disbursements of in-house and outside counsel to the Agent and the Lenders incurred as a
result of a workout, restructuring, reorganization, liquidation, insolvency proceeding and in any
appeals arising therefrom, whether incurred before, during or after the termination of this
Financing Agreement or the commencement of any case with respect to the Companies (or any of them),
any Guarantor or any subsidiary of a Company (as the case may be) under the United States
Bankruptcy Code or any similar statute.

     Overadvances shall mean, at any time, the amount by which (a) the sum at such time of
the principal amount of all outstanding Revolving Loans plus the undrawn amount of all outstanding
Letters of Credit, Bankers Acceptances, Steamship Guarantees and Airway Releases exceeds (b) the
lesser of (x) the Revolving Line of Credit and (y) the Borrowing Base at such time.

     Parent shall mean G-III Apparel Group, Ltd., a Delaware corporation.

     Patents shall mean all of the Companies’ present and hereafter acquired patents,
patent applications, registrations, all reissues and renewals thereof, all licenses thereof, all
inventions and improvements claimed thereunder, all general intangible, intellectual property and
other rights of any Company with respect thereto, and all income, royalties and other Proceeds of
the foregoing.

     Permitted Distributions shall mean:

     (a) dividends from a wholly-owned subsidiary of the Company to such Company;

     (b) dividends payable solely in stock or other equity interests of the Companies;

     (c) distributions or dividends by the Company in an amount sufficient to enable Parent to pay
such Company’s and any Domestic Subsidiary of the Company’s reasonable share of income or franchise
Taxes owed by Parent, due as a result of the filing by Parent of a consolidated, combined or
unitary tax return in which the operations of the Companies and such Domestic Subsidiary are
included; and

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     (d) cash distributions or cash dividends to Parent’s shareholders or redemptions of the
capital stock of Parent; provided that the aggregate amount of distributions, dividends or
redemptions shall not exceed during the term of this Agreement the sum of (i) $1,500,000 and (ii)
75% of the cash proceeds from the sale of equity securities by Parent at any time during the period
from the Original Closing Date through the Termination Date (but only to the extent that such sale
of equity securities has not been used to fund a Special Capital Expenditure; and provided,
further, that no Default or Event of Default shall have occurred and remain outstanding on
the date of the making of such distribution, dividend or redemption, or would occur as a result
thereof).

     Permitted Encumbrances shall mean: (a) all liens existing on the Closing Date on
specific items of Equipment; (b) Purchase Money Liens; (c) statutory liens of landlords and liens
of carriers, warehousemen, bailees, mechanics, materialmen and other like liens imposed by law,
created in the ordinary course of business and securing amounts not yet due (or which are being
contested in good faith, by appropriate proceedings or other appropriate actions which are
sufficient to prevent imminent foreclosure of such liens), and with respect to which adequate
reserves or other appropriate provisions are being maintained by the Companies in accordance with
GAAP; (d) pledges or deposits made (and the liens thereon) in the ordinary course of business of
any Company (including, without limitation, security deposits for leases, indemnity bonds, surety
bonds and appeal bonds) in connection with workers’ compensation, unemployment insurance and other
types of social security benefits or to secure the performance of tenders, bids, contracts (other
than for the repayment or guarantee of borrowed money or purchase
money obligations), statutory obligations and other similar obligations arising as a result of
progress payments under government contracts; (e) liens granted to the Agent, for the benefit of
the Agent and the Lenders, by the Companies; (f) liens of judgment creditors, provided that such
liens do not exceed $5,000,000 in the aggregate at any time (other than liens bonded or insured to
the reasonable satisfaction of the Agent); (g) Permitted Tax Liens; (h) easements (including,
without limitation, reciprocal easement agreements and utility agreements), encroachments, minor
defects or irregularities in title, variation and other restrictions, charges or encumbrances
(whether or not recorded) affecting the Real Estate, if applicable, and which in the aggregate (i)
do not materially interfere with the occupation, use or enjoyment by any Company of its business or
property so encumbered and (ii) in the reasonable business judgment of the Agent, do not materially
and adversely affect the value of such Real Estate; (i) the liens granted to the Factor pursuant to
the Factoring Agreement, to the extent subject to the Assignment of Factoring Proceeds Agreement;
and (j) customary restrictions in any license agreement with a Company as licensee, including,
without limitation, with respect to the sale of Inventory (provided that the Companies shall give
Agent prompt notice of its execution of such license agreement and provided,
further, that the foregoing shall not affect the Agent’s rights under the definition of
Eligible Inventory, Section 7.4(l) and/or Section 7.5.

     Permitted Indebtedness shall mean: (a) current Indebtedness maturing in less than one
year and incurred in the ordinary course of business for raw materials, supplies, equipment,
services, Taxes or labor; (b) Indebtedness secured by Purchase Money Liens; (c) Indebtedness
arising under the Letters of Credit and this Financing Agreement; (d) deferred Taxes and other
expenses incurred in the ordinary course of business; (e) Permitted Intercompany Loans; (f) other
Indebtedness existing on the Closing Date and listed on Schedule 1.1(a) attached hereto;
(g) indebtedness due to the Factor pursuant to the Factoring Agreement; (h) guaranties executed in
the ordinary course of the Companies’ business with respect to Indebtedness owing by suppliers of
goods to the Companies in connection with the acquisition of goods by the Companies, in an
aggregate amount not to exceed $5,000,000; and (i) Subordinated Debt.

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     Permitted Intercompany Loan shall mean a loan made in the ordinary course of
business by a Company to another Company or a Subsidiary of Parent, but only so long as (a) such
loan is evidenced by a promissory note, the original of which shall be delivered to the Agent, (b)
the promissory note evidencing such loan provides (in form and substance satisfactory to the Agent)
that the repayment thereof is subordinated to the full and final payment of the Obligations and (c)
if the loan is made to a Subsidiary of Parent organized outside of the United States of America,
then the total outstanding amount thereof, together with the aggregate sum of other advances and
investments by the Companies in Subsidiaries of Parent organized outside of the United States of
America, does not exceed $5,000,000.

     Permitted Tax Liens shall mean liens for Taxes not due and payable and liens for Taxes
that any Company is contesting in good faith, by appropriate proceedings which are sufficient to
prevent imminent foreclosure of such liens, and with respect to which adequate reserves are being
maintained by such Company in accordance with GAAP; provided that in either case, such
liens (a) are not filed of record in any public office, (b) other than with respect to Real Estate,
are not senior in priority to the liens granted by such Company to the Agent, for the benefit of
the Agent and the Lenders, or (c) do not secure taxes owed to the United States of America (or any
department or agency thereof) or any State or State authority, if applicable State law provides for
the priority of tax liens in a manner similar to the laws of the United States of America.

     Person shall mean any individual, sole proprietorship, partnership, corporation,
business trust, joint stock company, trust, unincorporated organization, association, limited
liability company, institution, public benefit corporation, joint venture, entity or government
(whether Federal, state, county, city, municipal or otherwise, including any instrumentality,
division, agency, body or department thereof).

     Pro Rata Percentage shall mean, as to each Lender at any time, a fraction (expressed
as a percentage), the numerator of which is the amount of such Lender’s Commitment at such time and
the denominator of which is the aggregate amount of all Commitments at such time (or in the event
that the Commitments of the Lenders hereunder have terminated, the numerator of which is the
principal amount of loans then owed to such Lender hereunder and the denominator of which is the
principal amount of loans then owed to all Lenders hereunder, as reflected by CIT’s System).

     Proceeds shall have the meaning given to such term in the UCC, including, without
limitation, all Casualty Proceeds.

     Promissory Notes shall mean, collectively, the notes in the form of Exhibit B
attached hereto, delivered by the Companies (or any of them) to a Lender to evidence the loans made
by such Lender to the Companies (or any of them) pursuant to this Financing Agreement.

     Purchase Money Liens shall mean liens on any item of Equipment acquired by a Company
after the date of this Financing Agreement, provided that (a) each such lien shall attach
only to the Equipment acquired and (b) a description of the Equipment so acquired is furnished by
the Companies to the Agent.

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     Real Estate shall mean all of the Companies’ present and future fee and leasehold
interests in real property, including the real property owned by the Companies as of the Closing
Date and described on Schedule 1.1(b) attached hereto.

     Register shall have the meaning provided in Section 13.8(a) of this Agreement.

     Regulatory Change shall mean any change after the Closing Date in United States
federal, state or foreign law or regulation (including, without limitation, Regulation D of the
Board of Governors of the Federal Reserve System), or the adoption or making after the Closing Date
of any interpretation, directive or request applying to a class of lenders including the Agent or
any Lender of or under any United States federal, state or foreign law or regulation, in each case
whether or not having the force of law and whether or not failure to comply therewith would be
unlawful.

     Required Insurance shall have the meaning provided for in Section 7.2(c) of
this Financing Agreement.

     Required Lenders shall mean (a) at all times while there are (2) two or fewer Lenders
hereunder, all of the Lenders, and (b) at all times while there are three (3) or more Lenders
hereunder, those Lenders holding at least sixty-six and two-thirds percent (66 2/3%) of the total
Commitments under the Line of Credit (or sixty-six and two-thirds percent (66 2/3%) of the
outstanding principal amount of all loans outstanding hereunder, as reflected by CIT’s System, in
the event that the Commitments of the Lenders hereunder have terminated).

     Revolving Line of Credit shall mean the Commitments of the Lenders to make Revolving
Loans pursuant to Section 3 of this Financing Agreement and assist the Companies in opening
Letters of Credit, Bankers Acceptances, Steamship Guarantees and Airway Releases pursuant to
Section 5 of this Financing Agreement, in an aggregate amount equal to $250,000,000.

     Revolving Loan Account shall mean the account on the Agent’s books, in the name of the
Funds Administrator on behalf of the Companies, in which the Companies will be charged with all
Obligations when due or incurred by the Agent or any Lender.

     Revolving Loans shall mean the loans and advances made from time to time to or for the
account of the Companies by the Agent, on behalf of the Lenders, pursuant to Section 3 of
this Financing Agreement. The Revolving Loans shall include the Assigned Existing Loans.

     Security shall mean such term as defined in Section 2(1) of the Securities Act of
1933, as amended; provided, however, that Asset Securitization Recourse Liabilities
shall not constitute “Securities” except (i) to the extent that such obligations arise from a
Company’s obligation to repurchase receivables or other assets as a result of a default in payment
by the obligor thereunder or any other default in performance by such obligor under any agreement
related to such receivables or (ii) if the Companies shall maintain a reserve account containing
Cash or Securities in respect of any such obligations or shall maintain or purchase a subordinated
interest therein to the extent of the amount of such reserve account or subordinated interest.

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     Senior Leverage Ratio shall mean, for any period, the quotient (expressed as a
ratio) obtained by dividing (a) the amount of the Revolving Loans outstanding on the last day of
the period by (b) EBITDA of Parent and its Subsidiaries on a consolidated basis for such period.

     Settlement Date shall mean Monday of each week (or if any Monday is not a Business Day
on which all Lenders are open for business, the immediately preceding Business Day on which all
Lenders are open for business), provided that, after the occurrence of an Event of Default
or during a continuing decline or sudden increase in the principal amount of Revolving Loans, the
Agent, in its discretion, may require that the Settlement Date occur more frequently (even daily)
so long as any Settlement Date chosen by the Agent is a Business Day on which each Lender is open
for business.

     Special Capital Expenditures shall mean Capital Expenditures of up to an aggregate of
$5,000,000 during the period from the Original Closing Date through the Termination Date that are
incurred in connection with warehouse and showroom construction and renovation expenses to the
extent that such Capital Expenditures have been directly financed in advance by an additional
issuance of equity by Parent raised during the same period.

     SPV shall mean with respect to any Person, a special purpose corporation or grantor
trust established solely for the purpose of purchasing receivables of such Person for Cash in an
amount equal to the fair market value of such receivables.

     Steamship Guarantees shall mean steamship guarantees agreed to be issued or caused to
be issued by Agent pursuant to the Continuing Agreement for Issuance of Steamship Guarantees and
Airway Releases.

     Subordinated Debt shall mean Indebtedness of the Companies which has been subordinated
to the Obligations of the Companies to the Agent and the Lenders pursuant to subordination
agreements and/or subordination provisions of the respective debt instruments in each case in form
and substance satisfactory to the Agent and the Required Lenders.

     Subsidiary shall mean a corporation or other entity of whose shares of stock or other
ownership interests having ordinary voting power (other than stock or other ownership interests
having such power only by reason of the happening of a contingency) to elect a majority of the
directors of such corporation, or other Persons performing similar functions for such entity, are
owned, directly or indirectly, by such Person, excluding any Excluded Subsidiary. When used with
respect to Parent, the term “Subsidiary” shall at all times include each of the Companies.

     Supplemental Amount shall mean the following amounts during the following time periods
(in each case, minus all Supplemental Amount Reductions):

	 	 	 	 	 
	 	 	Supplemental
	Period	 	Amount
	Closing Date through and including April 30, 2008
	 	$	0	 
	May 1, 2008 through and including May 31, 2008
	 	$	25,000,000	 
	June 1, 2008 through and including June 30, 2008
	 	$	40,000,000	 
	July 1, 2008 through and including July 31, 2008
	 	$	45,000,000	 
	August 1, 2008 through and including September 29, 2008
	 	$	50,000,000	 
	September 30, 2008 through and including October 15, 2008
	 	$	10,000,000	 
	October 16, 2008 through and including April 30, 2009
	 	$	0	 

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     The Supplemental Amount for all periods subsequent to April 30, 2009 shall be determined
by Agent, each of the Lenders and the Companies based upon the projections and unaudited (or, if
available, audited) financial statements of Parent and its consolidated Subsidiaries for the fiscal
years ending January 31, 2009, 2010 and 2011, respectively (in each case delivered pursuant to
Section 7.2(h)), but in no event shall the periods be of different durations or the amounts be less
than the amounts for the periods corresponding to the periods set forth above unless the Agent
determines (in its reasonable discretion) that such periods and amounts warrant adjustment based
upon such projections or unaudited (or, if available, audited) financial statements or other
information as Agent shall reasonably determine. The determination of the Supplemental Amount shall
become effective after receipt and satisfactory review by the Agent of the unaudited (or, if
available, audited) financial statements for the fiscal years ending January 31, 2009, 2010 and
2011, respectively.

     Supplemental Amount Reductions shall mean all reductions to the Supplemental Amount
pursuant to the final sentence of Section 3.5(a) and/or Section 7.2(c).

     Swap Contracts shall mean (i) any and all rate swap transactions, basis swaps, credit
derivative transactions, forward rate transactions, commodity swaps, commodity options, forward
commodity contracts, equity or equity index swaps or options, bond or bond price or bond index
swaps or options or forward bond or forward bond price or forward bond index transactions, interest
rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar
transactions, currency swap transactions, cross-currency rate swap transactions, currency options,
spot contracts, or any other similar transactions or any combination of any of the foregoing
(including any options to enter into any of the foregoing), whether or not any such transaction is
governed by or subject to any master agreement, and (ii) any and all transactions of any kind, and
the related confirmations, which are subject to the terms and conditions of, or governed by, any
form of master agreement published by the International Swaps and Derivatives Association, Inc.,
any International Foreign Exchange Master Agreement, or any other master agreement (any such master
agreement, together with any related schedules, a “Master Agreement”), including ay such
obligations or liabilities under any Master Agreement.

     Synthetic Lease Obligation shall mean the monetary obligation of a Person under (a) a
so-called synthetic, off-balance sheet or tax retention lease, or (b) an agreement for the use or
possession of property creating obligations that do not appear on the balance sheet of such Person
but which, upon the insolvency or bankruptcy of such Person, would be characterized as the
indebtedness of such Person (without regard to accounting treatment).

     Taxes shall mean all federal, state, municipal and other governmental taxes, levies,
charges, claims and assessments which are or may be owed or collected by the Companies with respect
to their business, operations, Collateral or otherwise.

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     Term Loan shall mean the term loan in the original principal amount of
$30,000,000 made by the Lenders to the Original Companies under the Original Financing Agreement on
or about the Original Closing Date.

     Termination Date shall mean July 11, 2011.

     Trade Accounts Receivable shall mean that portion of each Company’s Accounts which
arises from the sale of Inventory or the rendition of services in the ordinary course of such
Company’s business.

     Trademarks shall mean all of the Companies’ present and hereafter acquired trademarks,
trademark registrations, recordings, applications, tradenames, trade styles, corporate names,
business names, service marks, logos and any other designs or sources of business identities,
prints and labels (on which any of the foregoing may appear), all reissues and renewals thereof,
all licenses thereof, all other general intangible, intellectual property and other rights
pertaining to any of the foregoing, together with the goodwill associated therewith, and all
income, royalties and other Proceeds of any of the foregoing.

     UCC shall mean the Uniform Commercial Code as the same may be amended and in effect
from time to time in the State of New York.

     Unused Non-Supplemental Availability shall mean at any time (i) the lesser of (a) the
amount of the Revolving Line of Credit and (b) an amount equal to the Borrowing Base minus
the Supplemental Amount then in effect, minus (ii) the principal balance of Revolving Loans
plus the undrawn amount of Letters of Credit, Bankers Acceptances, Steamship Guarantees and
Airway Releases.

     Working Day shall mean any Business Day on which dealings in foreign currencies and
exchanges between banks may be transacted.

SECTION 2. CONDITIONS PRECEDENT.

     2.1. Conditions Precedent to Initial Funding. The obligation of the Agent and the
Lenders to make Revolving Loans on the Closing Date and to assist the Companies in obtaining
Letters of Credit, Bankers Acceptances, Steamship Guarantees and Airway Releases hereunder,
immediately prior to or concurrently with the making of such loans or the issuance of such Letters
of Credit, Bankers Acceptances, Steamship Guarantees and Airway Releases is subject to the
satisfaction or waiver in writing by the Agent and the Lenders of the following conditions
precedent:

          (a) Financing Agreement and Other Loan Documents. The Agent shall have received originally
executed copies of this Financing Agreement from each of the parties hereto, including from each of
the Companies and the Lenders in sufficient quantities as determined by the Agent, together with
originally executed copies of the Promissory Notes and all Loan Documents necessary to consummate
the lending arrangements contemplated by this Financing Agreement.

26

 

          (b) Lien Searches. The Agent shall have received tax lien, judgment lien and Uniform
Commercial Code searches from all jurisdictions reasonably required by the Agent, and such searches
shall verify that the Agent, for the benefit of the Agent and the Lenders, has a first priority
security interest in the Collateral, subject to Permitted Encumbrances.

          (c) Casualty Insurance. Each Company shall have delivered to the Agent evidence satisfactory
to the Agent that all Required Insurance is in full force and effect, and the Agent shall have
confirmed that the Agent, for the benefit of the Agent and the Lenders, has been named as a loss
payee or additional insured with respect to the Required Insurance in a manner satisfactory to the
Agent.

          (d) UCC Filings. All UCC financing statements and similar documents required to be filed in
order to create in favor of the Agent, for the benefit of the Agent and the Lenders, a first
priority perfected security interest in the Collateral (to the extent that such a security interest
may be perfected by a filing under the UCC or applicable law), shall have been properly filed in
each office in each jurisdiction required. The Agent shall have received (i) acknowledgement copies
of all such filings (or, in lieu thereof, the Agent shall have received other evidence satisfactory
to the Agent that all such filings have been made), and (ii) evidence that all necessary filing
fees, taxes and other expenses related to such filings have been paid in full.

          (e) Resolutions. The Agent shall have received (x) a copy of the resolutions of the Board of
Directors of each Company that is a corporation authorizing the execution, delivery and performance
of the Loan Documents to be executed by each such Company, certified by the Secretary or Assistant
Secretary of each such Company as of the date hereof, together with a certificate of such Secretary
or Assistant Secretary as to the incumbency and signature of the officer(s) executing the Loan
Documents on behalf of each such Company and (y) a copy of resolutions of the members and manager
of each Company that is a limited liability company authorizing the execution, delivery and
performance of the Loan Documents to be executed by each such Company, certified by the respective
Secretary or Assistant Secretary of the manager of each such Company as of the date hereof,
together with a certificate of such Secretary or Assistant Secretary as to the incumbency and
signature of the officer(s) executing the Loan Documents on behalf of the manager of each such
Company.

          (f) Organizational Documents. The Agent shall have received (x) a copy of the Certificate or
Articles of Incorporation of each Company that is a corporation, certified by the applicable
authority in each such Company’s State of incorporation, and copies of the by-laws (as amended
through the date hereof) of each such Company, certified by the respective Secretary or an
Assistant Secretary thereof and (y) a copy of the Articles of Organization of each Company that is
a limited liability company, certified by the applicable authority in each such Company’s State of
organization, and copies of the operating agreement (as amended through the date hereof) of each
such Company, certified by the respective Secretary or Assistant Secretary of the manager thereof.

          (g) Officer’s Certificate. The Agent shall have received an executed Officer’s Certificate of
each Company, satisfactory in form and substance to the Agent, certifying that as of the Closing
Date (i) the representations and warranties contained herein are true and correct in all material
respects, (ii) each Company is in compliance with all of the terms and provisions set forth herein
and (iii) no Default or Event of Default has occurred.

27

 

          (h) Disbursement Authorizations. The Companies shall have delivered to the Agent all
information necessary for the Agent to issue wire transfer instructions on behalf of each Company
for the initial and subsequent loans and/or advances to be made under this Financing Agreement,
including disbursement authorizations in form acceptable to the Agent.

          (i) Examination & Verification; Net Availability; Projections. The Agent shall have completed
and be satisfied with an updated examination and verification of the Trade Accounts Receivable,
Inventory and the books and records of the Companies, and such examination shall indicate that no
material adverse change has occurred in the financial condition, business, prospects, profits,
operations or assets of the Companies, the Companies’ Subsidiaries or the Guarantors since January
31, 2007. In addition, the Companies shall have delivered to the Agent, and the Agent shall be
satisfied with, balance sheet, income statement, cash flows and Net Availability projections for
the Companies on a consolidated basis for not less than twelve (12) months following the Closing
Date.

          (j) Depository Accounts; Payment Direction. (i) The Companies or the Agent, on behalf of the
Lenders, shall have established one or more Depository Accounts with respect to the collection of
Accounts and the deposit of proceeds of Collateral, and (ii) the Agent, the applicable Company and
each depository bank shall have entered into a Depository Account Control Agreement with respect to
each Depository Account.

          (k) Repayment of Term Loan and Accrued Interest. All loans and obligations of the Companies
and the Guarantors with respect to the Term Loan, including without limitation all principal and
interest accrued thereon, and all other interest and fees accrued under the Original Financing
Agreement, shall be paid or satisfied in full utilizing the proceeds of the initial Revolving Loans
to be made under this Financing Agreement on the Closing Date.

          (l) Guaranty and Related Documents. The Guarantors shall have executed and delivered to the
Agent (i) the Guaranties and (ii) if applicable, the items described in Sections 2.1(d),
2.1(e) and 2.1(m) hereof with respect to the Guarantors.

          (m) Opinions. Subject to the filing, priority and remedies provisions of the UCC, the
provisions of the Bankruptcy Code, insolvency statutes or other like laws, the equity powers of a
court of law and such other matters as may be agreed upon with the Agent, counsel for the Companies
and the Guarantors shall have delivered to the Agent, on behalf of the Lenders, opinion(s)
satisfactory to the Agent opining, inter alia, that each Loan Document to which each Company or any
Guarantor is a party is valid, binding and enforceable in accordance with its terms, as applicable,
and that the execution, delivery and performance by each Company and each Guarantor of the Loan
Documents to which such person or entity is a party are (i) duly authorized, (ii) do not violate
any terms, provisions, representations or covenants in the articles of incorporation, by-laws or
other organizational agreement of any Company or such Guarantor, as the case may be, and (iii) to
the best knowledge of such counsel, do not violate any terms, provisions, representations or
covenants in any loan agreement, mortgage, deed of trust, note,

28

 

security agreement, indenture or other material contract to which any Company or any Guarantor
is a signatory, or by which any Company or any Guarantor (or any Company’s or any Guarantor’s
assets) are bound.

          (n) Legal Restraints/Litigation. As of the Closing Date, there shall be no (x) injunction,
writ or restraining order restraining or prohibiting the consummation of the financing arrangements
contemplated under this Financing Agreement, or (y) suit, action, investigation or proceeding
(judicial or administrative) pending against any Company, any Guarantor, any subsidiary of any
Company or any of their assets, which, in the opinion of the Agent, if adversely determined, could
have a Material Adverse Effect.

          (o) Fee Letter and Out-of-Pocket Expenses. Each Company shall have fully complied with all of
the terms and conditions of the Fee Letter, including without limitation the payment of all amounts
due thereunder on the Closing Date, together with all Out-of-Pocket Expenses incurred on or prior
to the Closing Date.

          (p) Revolving Loan Promissory Notes. If any Lender elects to evidence its Commitments with
respect to the Revolving Line of Credit with Promissory Notes, each Company shall have executed and
delivered to such Lender a Promissory Note in the form attached hereto as Exhibit B.

          (q) Pledge Agreements. Each Company shall have executed and delivered to the Agent, for the
benefit of the Agent and the Lenders, (x) a stock pledge agreement in form and substance
satisfactory to the Agent covering all capital stock in such Company’s subsidiaries (including any
other Company, if applicable), together with all stock certificates and duly executed stock powers
(undated and in-blank) with respect thereto and (y) a collateral assignment in form and substance
satisfactory to Agent of such Company’s partnership or membership interests in any partnership or
limited liability company and, if necessary, the consent thereto from the other partners or members
of such entity. In addition, Parent shall have executed and delivered to the Agent, for the benefit
of the Agent and the Lenders, a stock pledge agreement in form and substance satisfactory to the
Agent covering all capital stock in G-III Inc. owned by Parent, together with all stock
certificates and duly executed stock powers (undated and in-blank) with respect thereto.

          (r) Factoring Agreement. The Factoring Agreement with G-III shall be in full force and effect.

          (s) Collateral Assignment of Licenses. Agent shall have received true and correct copies of
all material licensing agreements with respect to Patents, Trademarks and other intellectual
property with respect to which any Company is licensor or licensee.

          (t) Intercreditor Agreement and Assignment of Factoring Proceeds. G-III, CIT as Factor and
Agent shall have entered into the Assignment of Factoring Proceeds Agreement, in form and substance
satisfactory to Agent.

     Upon the execution of this Financing Agreement and the initial disbursement of the initial
loans hereunder, all of the above conditions precedent shall have been deemed satisfied, except as
the Companies and the Agent shall otherwise agree in a separate writing.

29

 

SECTION 3. REVOLVING LOANS AND COLLECTIONS

     3.1. Funding Conditions and Procedures.

          (a) Amounts and Requests. Subject to the terms and conditions of this Financing Agreement, the
Agent and the Lenders, pro rata in accordance with their respective Pro Rata Percentages, severally
(and not jointly) agree to make loans and advances to the Funds Administrator on behalf of each
Company on a revolving basis (i.e. subject to the limitations set forth herein, each Company,
through the Funds Administrator, may borrow, repay and re-borrow Revolving Loans). In no event
shall the Agent or any Lender have an obligation to make a Revolving Loan to any Company, nor shall
the Funds Administrator or any Company be entitled to request or receive a Revolving Loan, if (i) a
Default or Event of Default shall have occurred and remain outstanding on the date of request for
such Revolving Loan or the date of the funding thereof, (ii) the amount of such Revolving Loan,
when added to the principal amount of the Revolving Loans outstanding plus the undrawn amount of
all Letters of Credit, Bankers Acceptances, Steamship Guarantees and Airway Releases on the date of
the request therefor or the funding thereof, would exceed the Revolving Line of Credit, or (iii)
amount of such Revolving Loan would exceed the Net Availability of the Companies on the date of the
request therefor or the funding thereof. Any request for a Revolving Loan must be received from the
Funds Administrator by an officer of the Agent no later than 12:00 p.m., New York City time, (a) on
the Business Day on which such Revolving Loan is required, if the request is for a Chase Bank Rate
Loan, or (b) three (3) Business Days prior to the Business Day on which such Revolving Loan is
required, if the request is for a LIBOR Loan. The funding of any LIBOR Loan is also subject to the
satisfaction of the conditions set forth in Section 8.9 of this Financing Agreement.

          (b) Phone and Electronic Loan Requests. The Companies hereby authorize the Agent and the
Lenders to make Revolving Loans to the Funds Administrator based upon a telephonic or e-mail
request (or, if permitted by the Agent, based upon a request posted on CIT’s System) made by any
officer or other employee of the Funds Administrator that the Funds Administrator has authorized in
writing to request Revolving Loans hereunder, as reflected by the Agent’s records. Each telephonic,
e-mail or posted request by the Funds Administrator shall be irrevocable, and the Funds
Administrator agrees to confirm any such request for a Revolving Loan in a writing approved by the
Agent and signed by such authorized officer or employee, within one (1) Business Day of the Agent’s
request for such confirmation. The Agent shall have the right to rely on any telephonic, e-mail or
posted request for a Revolving Loan made by anyone purporting to be an officer or other employee of
the Funds Administrator that the Funds Administrator has authorized in writing to request Revolving
Loans hereunder, without further investigation.

          (c) Advances by the Agent. The Agent, on behalf of the Lenders, shall disburse all loans and
advances to the Funds Administrator and shall handle all collections of Collateral and repayment of
all Obligations. It is understood that for purposes of advances to the Funds Administrator and for
purposes of this Section 3.1, the Agent will be using the funds of the Agent, and pending
settlement, all interest accruing on such advances shall be payable to the Agent.

30

 

          (d) Settlement Among Lenders.

               (i) Unless the Agent shall have been notified in writing by any Lender prior to any advance to
the Funds Administrator that such Lender will not make the amount which would constitute its Pro
Rata Percentage of the borrowing on such date available to the Agent, the Agent may assume that
such Lender shall make such amount available to the Agent on a Settlement Date, and in reliance
upon such assumption, the Agent may make available to the Funds Administrator a corresponding
amount. A certificate of the Agent submitted to any Lender with respect to any amount owing under
this subsection shall be conclusive, absent manifest error. If such Lender’s Pro Rata Percentage of
such borrowing is not in fact made available to the Agent by such Lender on the Settlement Date,
the Agent shall be entitled to recover from the Companies, on demand, such Lender’s Pro Rata
Percentage of such borrowing, together with interest thereon (for the account of the Agent) at the
rate per annum applicable to such borrowing, without prejudice to any rights which the Agent may
have against such Lender under Section 13.3 hereof. Nothing contained herein shall be
deemed to obligate the Agent to make available to the Companies the full amount of a requested
advance when the Agent has any notice (written or otherwise) that any of the Lenders will not
advance its Pro Rata Percentage thereof.

               (ii) On each Settlement Date, the Agent and the Lenders shall each remit to the other, in
immediately available funds, all amounts necessary so as to ensure that, as of the Settlement Date,
the Lenders shall have advanced their respective Pro Rata Percentages of all outstanding Revolving
Loans. Each Lender’s obligation to make the Revolving Loans referred to in Section 3.1(a)
and to make the settlements pursuant to this Section 3.1(d) shall be absolute and
unconditional and shall not be affected by any circumstance, including without limitation (v) any
set-off, counterclaim, recoupment, defense or other right which any such Lender or the Companies
may have against the Agent, the other Companies, any other Lender or any other person, (w) the
occurrence or continuance of a Default or an Event of Default, (x) any adverse change in the
condition (financial or otherwise) of the Companies, or any of them, (y) any breach of this
Financing Agreement or any other Loan Document by the Companies, or any of them, or any other
Lender or (z) any other circumstance, happening or event whatsoever, whether or not similar to any
of the foregoing.

          (e) Reaffirmation of Representations and Warranties. Except for the representations and
warranties set forth in Sections 6.8, 6.9 and 7.1, all of the
representations and warranties made by the Companies in this Financing Agreement shall be deemed to
be remade by the Companies each time that the Funds Administrator requests a Revolving Loan, a
Letter of Credit, a Bankers Acceptance, a Steamship Guarantee or an Airway Release under this
Financing Agreement, and each such request shall also constitute a representation and warranty by
the Companies that, after giving effect to the requested Revolving Loan, Letter of Credit, a
Bankers Acceptance, a Steamship Guarantee or an Airway Release, no Default or Event of Default
shall have occurred and remain outstanding.

          (f) Funds Administrator Appointment. Each Company hereby irrevocably appoints the Funds
Administrator, as the agent for such Company on its behalf, to (i) request Revolving Loans from
CIT, (ii) to give and receive notices under the Loan Documents and (iii) take all other action
which the Funds Administrator or the Companies are permitted or required to take under this
Financing Agreement.

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     3.2. Handling of Proceeds of Collateral; Cash Dominion.

          (a) Collection of Accounts and Other Proceeds. The Companies, at their expense, will enforce
and collect payments and other amounts owing on all Accounts in the ordinary course of the
Companies’ business subject to the terms hereof. The Companies agree to direct their account
debtors to send payments on all Accounts directly to a lockbox associated with a Depository
Account, and to include on all of the Companies’ invoices the address of such a lockbox as the sole
address for remittance of payment. Notwithstanding the foregoing, should any Company ever receive
any payment on an Account or other Proceeds of the sale of Collateral, including checks, cash,
receipts from credit card sales and receipts, notes or other instruments or property with respect
to any Collateral, such Company agrees to hold such proceeds in trust for the Agent, for the
benefit of the Agent and the Lenders, separate from such Company’s other property and funds, and to
deposit such proceeds directly into a Depository Account on the Business Day received.

          (b) Transfer of Funds from Depository Accounts. Funds remaining on deposit in a Depository
Account shall be transferred to the Agent’s Bank Account on each Business Day in accordance with
the terms and provisions of the applicable Depository Account Control Agreement, and the Companies
agree to take all actions reasonably required by the Agent or any bank at which a Depository
Account is maintained in order to effectuate the transfer of funds in this manner. All amounts
received from a Depository Account and any other proceeds of the Collateral deposited into the
Agent’s Bank Account will, for purposes of calculating Net Availability and interest, be credited
to the Revolving Loan Account on the date of deposit in the Agent’s Bank Account. No checks, drafts
or other instruments received by the Agent shall constitute final payment to the Agent unless and
until such instruments have actually been collected.

          (c) New Depository Accounts. Each Company agrees not to open any lockbox or new bank account
into which Proceeds of Collateral are to be delivered or deposited unless concurrently with the
opening of such lockbox and/or bank account, the Agent, such Company and the bank which will
maintain such lockbox or at which such account will be maintained, execute a Depository Account
Control Agreement with respect to such lockbox and/or related bank account. Upon compliance with
the terms set forth above, such lockbox and/or bank account shall constitute a Depository Account
for purposes of this Financing Agreement.

          (d) Credit Card Receipts. Each Company agrees to direct all credit card processors handling
proceeds of sale of such Company’s Inventory to transfer all funds due to such Company pursuant to
such arrangement directly to a Depository Account. Promptly after the establishment of any credit
card processing or depository relationship, the Companies agree to notify the Agent in writing of
the establishment of such relationship and shall cause the credit card processor to execute and
deliver to the Agent an agreement in form and substance satisfactory to the Agent, pursuant to
which the credit card processor agrees to deposit all sums due to the Companies (or any of them)
pursuant to such arrangement directly to a Depository Account.

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     3.3. Collective Borrowing Arrangement; Revolving Loan Account.

          (a) Collective Borrowing Arrangement. The Companies have informed the Agent that: (i) in order
to increase the efficiency and productivity of each Company, the Funds Administrator has
established a centralized cash management system for the Companies that entails, in part, central
disbursement and operating accounts in which the Funds Administrator provides the working capital
needs of each of the other Companies and manages and timely pays the accounts payable of each of
the other Companies; (ii) the Funds Administrator further enhances the operating efficiencies of
the other Companies by purchasing, or causing to be purchased, in the Funds Administrator’s name
for its account, all or substantially all materials, supplies, inventory and services required by
the other Companies, resulting in a reduction in operating costs of the other Companies; and (iii)
all of the Companies presently engage in an integrated operation that requires financing on an
integrated basis, and each Company expects to benefit from the continued successful performance of
such integrated operations. Therefore, in order to best utilize the borrowing powers of the
Companies in the most effective and cost efficient manner and to avoid adverse effects on the
operating efficiencies of each Company and the existing back-office practices of the Companies,
each Company has requested that all Revolving Loans and other advances be disbursed solely upon the
request of the Funds Administrator and to bank accounts managed solely by the Funds Administrator,
it being the intent and desire of the Companies that the Funds Administrator manage for the benefit
of each Company the expenditure and usage of such funds.

          (b) Revolving Loan Account. The Agent shall charge the Revolving Loan Account for all loans
and advances made by the Agent and the Lenders to the Funds Administrator, or otherwise for any
Company’s account, and for all any other Obligations, including Out-of-Pocket Expenses, when due
and payable hereunder. Subject to the provisions of Section 3.5 below, the Agent will credit the
Revolving Loan Account with all amounts received by the Agent from each Depository Account or from
others for each Company’s account, including, as set forth above, all amounts received by the Agent
in payment of Accounts, and such amounts will be applied to payment of the Obligations in the order
and manner set forth herein. In no event shall prior recourse to any Account or other security
granted to or by the Companies be a prerequisite to the Agent’s or the Lenders’ rights to demand
payment of any of the Obligations. In addition, the Companies agree that neither the Agent nor any
Lender shall have any obligation whatsoever to perform in any respect any Company’s contracts or
obligations relating to the Accounts.

     3.4. Repayment of Overadvances. If at any time (a) the sum of the outstanding balance
of Revolving Loans and undrawn amount of Letters of Credit, Bankers Acceptances, Steamship
Guarantees and Airway Releases exceed the Revolving Line of Credit, or (b) an Overadvance exists,
the amount of such excess (in the case of clause (a)) or the amount of the Overadvance (in the case
of clause (b)) shall be immediately due and payable unless the Agent (as permitted hereunder) or
the Lenders otherwise agree in writing. Should the Agent or the Lenders for any reason honor
requests for Overadvances, such Overadvances shall be made in the Agent’s or the Lenders’ sole
discretion and subject to any additional terms the Agent or the Lenders deem necessary. In no event
shall any Company withdraw any Invested Cash if, after giving effect to any such withdrawal, an
Overadvance would exist.

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     3.5. Application of Proceeds of Collateral.

          (a) Generally. Unless this Financing Agreement expressly provides otherwise, so long as no
Event of Default shall have occurred and remain outstanding, the Agent agrees to apply all Proceeds
of Due from Factor Receivables and Trade Accounts Receivable, all Proceeds of all other Collateral,
and any other payment received by the Agent with respect to the Obligations, in such order and
manner as the Agent shall elect in the exercise of its reasonable business judgment. Any amounts
applied to the repayment of the Revolving Loans pursuant to this Section 3.5(a) (other than
the proceeds of Due from Factor Receivables and Trade Accounts Receivable in the ordinary course of
the Companies’ business) shall result in a reduction of the Supplemental Amount in an amount equal
to such repayment of Revolving Loans.

          (b) Application of Proceeds to Chase Bank Rate Loans and LIBOR Loans. So long as no Event of
Default shall have occurred and remain outstanding, the Agent agrees to apply all Proceeds of
Collateral and other payments described in Section 3.5(a) to Chase Bank Rate Loans until
there are no Chase Bank Rate Loans outstanding, and then to LIBOR Loans; provided that in
the event the aggregate outstanding principal amount of Revolving Loans that are LIBOR Loans
exceeds Net Availability or any other applicable limit set forth herein, the Agent may apply all
proceeds of Collateral received by the Agent to the payment of the Obligations in such manner and
in such order as the Agent may elect in the exercise of its reasonable business judgment. Subject
to the terms of the preceding sentence, so long as no Event of Default shall have occurred and
remain outstanding, if the Agent receives Proceeds of Collateral or other payments that exceed the
outstanding principal amount of Revolving Loans that are Chase Bank Rate Loans, the Funds
Administrator may request, in writing, that the Agent not apply such excess Proceeds to outstanding
Revolving Loans that are LIBOR Loans, in which case the Agent shall remit such excess to the Funds
Administrator. If as a result of the application of the provisions of this Section 3.5(b),
any Proceeds of Collateral are applied to loans that are LIBOR Loans, such application shall be
treated as a prepayment of such LIBOR Loans and the Lenders shall be entitled to the costs and fees
provided for in Section 8.10 hereof.

          (c) Application of Proceeds During an Event of Default. If an Event of Default shall have
occurred and remain outstanding, the Agent agrees to apply all Proceeds of Collateral and all other
payments received by the Agent to the payment of the Obligations in the manner and order set forth
in Section 10.4 hereof. If as a result of the application of the provisions of this
Section 3.5(c), any Proceeds or payments are applied to loans that are LIBOR Loans, such
application shall be treated as a prepayment of such LIBOR Loans and the Lenders shall be entitled
to the costs and fees provided for in Section 8.10 hereof.

     3.6. Monthly Statement. After the end of each month, the Agent agrees to prepare and
make available to the Companies (by mail, facsimile, e-mail or posting to CIT’s System, as mutually
agreed to by the Funds Administrator and the Agent) and the Lenders, a statement showing the
accounting for the charges, loans, advances and other transactions occurring among the Agent, the
Lenders, the Funds Administrator and each Company during that month. Absent

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manifest error, each monthly statement shall be deemed correct and binding upon each Company,
the Funds Administrator and the Lenders, and shall constitute accounts stated between the Companies
and the Funds Administrator on one hand, and the Lenders and the Agent on the other hand, as the
case may be, unless the Agent receives a written statement of exception from the Companies, the
Funds Administrator or any Lender within thirty (30) days of the date of such monthly statement.

     3.7. Access to CIT’s System. The Agent shall provide to the Funds Administrator access
to CIT’s System during normal business hours, for the purposes of (i) obtaining information
regarding loan balances and Net Availability, and (ii) if permitted by the Agent, making requests
for Revolving Loans and submitting Borrowing Base Certificates. Such access shall be subject to the
following terms, in addition to all terms set forth on the website for CIT’s System:

          (a) The Agent shall provide to the Funds Administrator an initial password for secured access
to CIT’s System. The Funds Administrator shall provide the Agent with a list of officers and
employees that are authorized from time to time to access CIT’s System, and the Funds Administrator
agrees to limit access to the password and CIT’s System to such authorized officers and employees.
After the initial access, the Funds Administrator shall be solely responsible for (i) changing and
maintaining the integrity of the Funds Administrator’s password and (ii) any unauthorized use of
the Funds Administrator’s password or CIT’s System by any Company’s officers and employees.

          (b) The Companies shall use CIT’s System and the Companies’ information thereon solely for the
purposes permitted above, and shall not access CIT’s System for the benefit of third parties or
provide any information obtained from CIT’s System to third parties. The Agent makes no
representation that loan balance or Net Availability information is or will be available, accurate,
complete, correct or current at all times. CIT’s System may be inoperable or inaccessible from time
to time, whether for required website maintenance, upgrades to CIT’s System, or for other reasons,
and in any such event the Funds Administrator must obtain loan balance and Net Availability
information, and (if permitted by the Agent) make requests for Revolving Loans and submit Borrowing
Base Certificates using other available means.

          (c) The Companies hereby confirm and agree that CIT’s System consist of proprietary software,
data, tools, scripts, algorithms, business logic, website designs and interfaces and related
intellectual property, information and documentation. CIT’s System and related intellectual
property, information and documentation are the sole and exclusive property of the Agent, and the
Companies shall have no right, title or interest therein or thereto, except for the limited right
to access CIT’s System for the purposes permitted above. Upon termination of this Financing
Agreement, the Companies agree to cease any use of CIT’s System.

          (d) All agreements, covenants and representations and warranties made by the Funds
Administrator in any Borrowing Base Certificate submitted to the Agent by means of CIT’s System are
incorporated herein by reference and shall be deemed to be made by each Company.

SECTION 4. [RESERVED]

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SECTION 5. LETTERS OF CREDIT, BANKERS ACCEPTANCES, STEAMSHIP GUARANTEES AND AIRWAY
RELEASES.

     In order to assist the Companies (or any of them) in establishing or opening Letters of Credit
(and Bankers Acceptances, Steamship Guarantees and Airway Releases relating thereto) with an
Issuing Bank, the Companies have requested that the Lenders (acting through the Agent) join in the
applications for such Letters of Credit (and Bankers Acceptances, Steamship Guarantees and Airway
Releases relating thereto), buy risk participations in, and/or guarantee payment or performance of,
such Letters of Credit and any drafts or Bankers Acceptances, Steamship Guarantees and Airway
Releases thereunder through the issuance of one or more Letter of Credit Guaranties, thereby
lending the Lenders’ credit to the Companies, and the Agent and the Lenders have agreed to do so
based upon their respective Pro Rata Percentages. These arrangements shall be handled by the Agent
subject to satisfaction of the conditions set forth in Section 2.1 hereof and the terms and
conditions set forth below.

     5.1. Assistance and Purpose. Within the Revolving Line of Credit and subject to
sufficient Net Availability, the Lenders (acting through the Agent) shall assist the Companies in
obtaining Letters of Credit (and Bankers Acceptances, Steamship Guarantees and Airway Releases
relating thereto) based upon their respective Pro Rata Percentages in an aggregate undrawn amount
outstanding at any time not to exceed the Letter of Credit Sub-Line. The term, form and purpose of
each Letter of Credit, Bankers Acceptance, Steamship Guaranty and Airway Release and all
documentation in connection therewith, and any amendments, modifications or extensions thereof,
must be mutually acceptable to the Agent, the Issuing Bank and the Funds Administrator, provided
that the Companies shall not request a Letter of Credit to support the purchase of domestic
Inventory or to secure present or future indebtedness owed to suppliers of domestic Inventory,
except to the extent consistent with their past business practices. Notwithstanding any other
provision of this Financing Agreement to the contrary, if a Default or an Event of Default shall
have occurred and remain outstanding, (a) the Agent’s and the Lenders’ assistance in connection
with any Letter of Credit, Bankers Acceptance, Steamship Guarantee or Airway Release shall be in
the discretion of the Required Lenders, and (b) each Company shall be required to furnish cash
collateral in an amount equal to 105% of the aggregate face amount of all outstanding Letters of
Credit, Bankers Acceptances, Steamship Guarantees or Airway Releases provided to such Company. If a
Company is required to provide cash collateral for any such Letter of Credit, Bankers Acceptance,
Steamship Guaranty or Airway Release pursuant to this Agreement on or prior to the Termination
Date, such Company will pay to the Agent for the ratable benefit of itself and Lenders cash or cash
equivalents acceptable to the Agent (“Cash Equivalents”) in an amount equal to 105% of the
maximum amount then available to be drawn under each such Letter of Credit, Bankers Acceptance,
Steamship Guarantee and Airway Release outstanding. Such funds or Cash Equivalents shall be held by
the Agent in a cash collateral account for each Company (each, a “Cash Collateral Account”)
maintained by the Agent or at a bank or financial institution acceptable to the Agent. The Cash
Collateral Account shall be in the name of the relevant Company and shall be pledged to, and
subject to the control of, the Agent, for the benefit of the Agent and the Lenders, in a manner
satisfactory to the Agent, and all monies on deposit in a Cash Collateral Account shall accrue
interest at an annual rate equal to the Chase Bank Rate minus four percent (4%), which interest
shall be added to and constitute a part of the monies held in such Cash Collateral Account. Each of
the Companies hereby pledges and grants to the Agent, on behalf of itself and the Lenders, a
security interest in all such funds

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of such Company and Cash Equivalents held in such Company’s Cash Collateral Account from time
to time and all proceeds thereof, as security for the payment of all amounts due in respect of such
Company’s Obligations under Letter of Credits, Bankers Acceptances, Steamship Guaranties, Airway
Releases and other Obligations of such Company, whether or not then due. This Agreement, including
this Section 5.1, shall constitute a security agreement under applicable law.

     5.2. Authority to Charge Revolving Loan Account. The Companies hereby authorize the
Agent, without notice to the Companies, to charge the Revolving Loan Account as a Revolving Loan in
the amount of all indebtedness, liabilities and obligations of any kind incurred by the Agent or
the Lenders under a Letter of Credit Guaranty, including the charges of an Issuing Bank, as such
indebtedness, liabilities and obligations are charged to or paid by the Agent or the Lenders, or,
if earlier, upon the occurrence of an Event of Default. Any amount charged to the Revolving Loan
Account shall be deemed a Revolving Loan and a Chase Bank Rate Loan hereunder and shall incur
interest at the rate provided in Section 8.1 (or Section 8.2, if applicable) of this Financing
Agreement. The Companies confirm that any charges which the Agent may make to the Revolving Loan
Account as provided herein will be made as an accommodation to the Companies and solely at the
Agent’s discretion.

     5.3. Indemnity Relating to Letters of Credit and Bankers Acceptances. Each Company
jointly and severally unconditionally indemnifies the Agent and the Lenders (and each Lender that
is an Issuing Bank), and holds the Agent and the Lenders (and each Lender that is an Issuing Bank)
harmless from any and all loss, claim or liability incurred by the Agent or the Lenders (and each
Lender that is an Issuing Bank) arising from any transactions or occurrences relating to Letters of
Credit, Bankers Acceptances, Steamship Guarantees and Airway Releases established or opened for any
Company’s account, the Collateral relating thereto and any drafts or acceptances thereunder, and
all Obligations thereunder, including any such loss, claim or liability arising from any error,
omission, negligence, misconduct or other action taken by an Issuing Bank, other than for any such
loss, claim or liability arising out of the gross negligence or willful misconduct by the Agent
with respect to a Letter of Credit Guaranty. This indemnity shall survive the termination of this
Financing Agreement and the repayment of the Obligations.

     5.4. Compliance of Goods, Documents and Shipments with Agreed Terms. Neither the Agent
nor any Issuing Bank nor any Lender shall be responsible for: (a) the existence, character,
quality, quantity, condition, packing, value or delivery of the goods purporting to be represented
by any documents relating to any Letter of Credit; (b) any difference or variation in the
character, quality, quantity, condition, packing, value or delivery of the goods from that
expressed in such documents; (c) the validity, sufficiency or genuineness of such documents or of
any endorsements thereon, even if such documents should in fact prove to be in any or all respects
invalid, insufficient, fraudulent or forged; (d) the time, place, manner or order in which shipment
is made; (e) partial or incomplete shipment, or failure or omission to ship any or all of the goods
referred to in the Letters of Credit or documents relating thereto; (f) any deviation from
instructions; (g) delay, default, or fraud by the shipper and/or anyone else in connection with the
goods or the shipping thereof; or (h) any breach of contract between the shipper or vendors and any
Company.

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     5.5. Handling of Goods, Documents and Shipments. The Companies agree that any
action taken by the Agent, if taken in good faith, or any action taken by the Issuing Bank of
whatever nature, under or in connection with the Letters of Credit, the Letter of Credit
Guaranties, drafts or acceptances relating to Letters of Credit, any Steamship Guaranty or Airway
Release, or the goods subject thereto, shall be binding on each Company and shall not result in any
liability whatsoever of the Agent, any Issuing Bank or any Lender to the Companies. The Agent shall
have the full right and authority, on behalf of the Lenders, to (a) clear and resolve any questions
of non-compliance of documents, (b) give any instructions as to acceptance or rejection of any
documents or goods, (c) execute any and all steamship or airway guaranties (and applications
therefor), indemnities or delivery orders, (d) grant any extensions of the maturity of, time of
payment for, or time of presentation of, any drafts, acceptances, or documents, and (e) agree to
any amendments, renewals, extensions, modifications, changes or cancellations of any of the terms
or conditions of any of the applications, the Letters of Credit, the Letter of Credit Guaranties or
drafts or acceptances relating to Letters of Credit. An Issuing Bank shall be entitled to comply
with and honor any and all such documents or instruments executed by or received solely from the
Agent, without any notice to or any consent from the Companies or the Funds Administrator.
Notwithstanding any prior course of conduct or dealing with respect to the foregoing (including
amendments to and non-compliance with any documents, and/or the Companies’ or the Funds
Administrator’s instructions with respect thereto), the Agent may exercise its rights under this
Section 5.5 in its sole but reasonable business judgment. In addition, each Company and the
Funds Administrator agree not to: (a) at any time, (i) execute any application for steamship or
airway guaranties, indemnities or delivery orders, (ii) grant any extensions of the maturity of,
time of payment for, or time of presentation of, any drafts, acceptances or documents, or (iii)
agree to any amendments, renewals, extensions, modifications, changes or cancellations of any of
the terms or conditions of any of the applications, Letters of Credit, drafts or acceptances; and
(b) if an Event of Default shall have occurred and remain outstanding, (i) clear and resolve any
questions of non-compliance of documents or (ii) give any instructions as to acceptances or
rejection of any documents or goods.

     5.6. Compliance with Laws; Payment of Levies and Taxes. The Companies agree that (a)
all necessary import and export licenses and certificates necessary for the import or handling of
the Collateral will be promptly procured, (b) all foreign and domestic governmental laws and
regulations in regard to the shipment and importation of the Collateral or the financing thereof
will be promptly and fully complied with, and (c) any certificate in that regard that the Agent may
at any time request will be promptly furnished to the Agent. In connection herewith, the Companies
represent and warrant to the Agent, the Lenders and each Issuing Bank that all shipments made under
any Letter of Credit are and will be in compliance with the laws and regulations of the countries
in which the shipments originate and terminate, and are not prohibited by any such laws and
regulations. The Companies assume all risk, liability and responsibility for, and agree to pay and
discharge, all present and future local, state, federal or foreign Taxes, duties, or levies
pertaining to the importation and delivery of the Collateral. Any embargo, restriction, law, custom
or regulation of any country, state, city, or other political subdivision, where the Collateral is
or may be located, or wherein payments are to be made, or wherein drafts may be drawn, negotiated,
accepted, or paid, shall be solely the Companies’ risk, liability and responsibility.

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     5.7. Subrogation Rights. Upon any payments made to an Issuing Bank under a Letter
of Credit Guaranty, the Agent, for the benefit of the Agent and the Lenders, shall acquire by
subrogation, any rights, remedies, duties or obligations granted to or undertaken by the Companies,
or any of them, to the Issuing Bank in any application for Letter of Credit, any standing agreement
relating to Letters of Credit or otherwise, all of which shall be deemed to have been granted to
the Agent, for the benefit of the Agent and the Lenders, and apply in all respects to the Agent and
shall be in addition to any rights, remedies, duties or obligations contained herein.

     5.8. Risk Participation. To the extent that any applicable law, rule or regulation
prohibits any Lenders from issuing a guaranty of any Letter of Credit, Bankers Acceptance,
Steamship Guarantee and/or Airway Release, each such Lender with a Commitment shall instead, and
does hereby, irrevocably purchase a risk participation in each such Letter of Credit, Bankers
Acceptance, Steamship Guarantee and/or Airway Release and agrees to pay to Agent for the benefit of
the Lender and/or each Issuing Bank (on Agent’s demand) its Pro Rata Percentage of all payments
made with respect to each such Letter of Credit, Bankers Acceptance, Steamship Guarantee and/or
Airway Release.

SECTION 6. COLLATERAL

     6.1. Grant of Security Interest.

          (a) Grant of Security Interest. As security for the prompt payment in full of all Obligations,
each of the Original Companies hereby ratifies, confirms and acknowledges its prior grant of a
security interest to the Agent and the Lenders, and each of the Original Companies and each other
Company hereby further pledges and grants to the Agent, for the benefit of the Agent and the
Lenders, a continuing general lien upon, and security interest in, all of the Collateral in which
such Company has rights.

          (b) Extent of Security Interests. The security interests granted hereunder shall extend and
attach to:

               (i) all Collateral which is presently in existence or hereafter acquired and which is owned by
any Company or in which any Company has any interest, whether held by such Company or by others for
the such Company’s account, and wherever located, and, if any Collateral is Equipment, whether such
Company’s interest in such Equipment is as owner, lessee or conditional vendee;

               (ii) all Equipment whether the same constitutes personal property or fixtures, including, but
without limiting the generality of the foregoing, all dies, jigs, tools, benches, molds, tables,
accretions, component parts thereof and additions thereto, as well as all accessories, motors,
engines and auxiliary parts used in connection with, or attached to, the Equipment; and

               (iii) all Inventory and any portion thereof which may be returned, rejected, reclaimed or
repossessed by either the Agent or the Companies from the Companies’ customers, as well as to all
supplies, goods, incidentals, packaging materials, labels and any other items which contribute to
the finished goods or products manufactured or processed by the Companies, or to the sale,
promotion or shipment thereof.

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     6.2. Limited License. Regardless of whether the Agent’s security interests in any
of the General Intangibles has attached or is perfected, each Company hereby irrevocably grants to
the Agent, for the benefit of the Agent and the Lenders, a royalty-free, non-exclusive license to
use such Company’s Trademarks, Copyrights, Patents and other proprietary and intellectual property
rights, in connection with the (i) advertisement for sale, and the sale or other disposition of,
any finished goods Inventory by the Agent in accordance with the provisions of this Financing
Agreement, and (ii) the manufacture, assembly, completion and preparation for sale of any
unfinished Inventory by the Agent in accordance with the provisions of this Financing Agreement.

     6.3. Representations, Covenants and Agreements Regarding Collateral Generally.

          (a) Representations and Warranties. The Companies represent and warrant to the Agent and the
Lenders that except for the Permitted Encumbrances, (i) this Financing Agreement creates a valid,
perfected, first priority and exclusive security interest in all personal property of the Companies
as to which perfection may be achieved by filing, (ii) the Agent’s security interests in the
Collateral constitute, and will at all times constitute, first priority and exclusive liens on the
Collateral, and (iii) each Company is, or will be at the time additional Collateral is acquired by
such Company, the absolute owner of such additional Collateral with full right to pledge, sell,
transfer and create a security interest therein, free and clear of any and all claims or liens
other than Permitted Encumbrances.

          (b) Covenants. The Companies, at their expense, agree to forever warrant and defend the
Collateral from any and all claims and demands of any other person, other than holders of Permitted
Encumbrances.

     6.4. Representations Regarding Accounts and Inventory. The Companies represent and
warrant to the Agent and the Lenders that:

          (a) each Trade Account Receivable is based on an actual and bona fide sale and delivery of
Inventory or rendition of services to customers, made by the Companies in the ordinary course of
their business;

          (b) the Inventory being sold and the Trade Accounts Receivable created by such sales are the
exclusive property of the Companies and are not subject to any lien, encumbrance, security interest
or financing statement whatsoever, other than Permitted Encumbrances;

          (c) the invoices evidencing such Trade Accounts Receivable are in the name of the Companies;

          (d) the customers of the Companies have accepted the Inventory or services, and owe and are
obligated to pay the full amounts stated in the invoices according to their terms, without dispute,
offset, defense, counterclaim or contra, except in each case for disputes and other matters arising
in the ordinary course of business of which the Companies have notified the Agent pursuant to
Section 7.2(g) hereof;

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          (e) the Companies Inventory, except as written down or reserved against in accordance
with generally accepted accounting principles and the Companies’ customary practices, is marketable
in the ordinary course of the Companies’ businesses, and no Inventory has been produced in
violation of the Fair Labor Standards Act (29 U.S.C. §201 et seq.), as amended; and

          (f) neither any Eligible Inventory nor any Eligible Accounts Receivable are subject to any
consignment arrangement.

     6.5. Covenants and Agreements Regarding Accounts and Inventory.

          (a) Each Company confirms to the Agent and the Lenders that all Taxes and fees relating to
such Company’s business, such Company’s sales, and the Accounts or Inventory relating thereto, are
such Company’s sole responsibility, and that same will be paid by such Company when due, subject to
Section 7.2(d) hereof, and that none of said Taxes or fees represents a lien on or claim
against the Accounts, other than a Permitted Tax Lien.

          (b) [Intentionally Omitted].

          (c) Each Company agrees to maintain such books and records regarding Accounts and Inventory as
the Agent reasonably may require and agrees that the books and records of such Company will reflect
the Agent’s interest in the Accounts and Inventory. In support of the continuing assignment and
security interest of the Agent in the Accounts and Inventory, the Companies agree to deliver to the
Agent all of the schedules, reports and other information described in Section 7.2(g) of
this Financing Agreement. The Companies’ failure to maintain their books in the manner provided
herein or to deliver to the Agent any of the foregoing information shall in no way affect,
diminish, modify or otherwise limit the security interests granted to the Agent in the Accounts and
Inventory.

          (d) Each Company agrees to issue credit memoranda promptly after accepting returns or granting
allowances, and to deliver to the Agent copies of such credit memoranda as and when required to do
so under Section 7.2(g) hereof.

          (e) Each Company agrees to safeguard, protect and hold all Inventory for the account of the
Agent, on behalf of the Lenders, and to make no sale or other disposition thereof except in the
ordinary course of such Company’s business, on open account and on commercially reasonable terms
consistent with such Company’s past practices. Notwithstanding the ordinary course of any Company’s
business or any Company’s past practices, each Company agrees not to retain any lien on or security
interest in any Inventory sold. As to any sale or other disposition of Inventory, the Agent shall
have all of the rights of an unpaid seller, including stoppage in transit, replevin, rescission and
reclamation. Each Company agrees to handle all Proceeds of sales of Inventory in accordance with
the provisions of Section 3.2 hereof.

          (f) Each Company agrees that no Inventory acquired on a consigned basis, nor Inventory sold on
a consigned basis, shall be includable in the Borrowing Base.

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     6.6. Covenants and Agreements Regarding Equipment.

          (a) Maintenance of Equipment. Each Company agrees to (i) maintain the Equipment in as good and
substantial repair and condition as the Equipment owned by such Company is now maintained (or at
the time that the Agent’s security interest may attach to such Equipment), reasonable wear and tear
excepted, (ii) make any and all repairs and replacements when and where necessary, and (iii)
safeguard, protect and hold all Equipment owned by such Company in accordance with the terms hereof
and subject to the Agent’s security interest. The Equipment will only be used by the Companies in
the operation of their respective businesses and will not be sold or held for sale or lease, except
as expressly provided in Section 6.6(b) below.

          (b) Sales of Equipment. The Companies may sell Equipment from time to time, provided that in
each such instance: (i) no Event of Default shall have occurred and remain outstanding at the time
of such sale; (ii) the aggregate book value of the Equipment subject to sale, taken together with
any other assets sold during the term of this Agreement under the proviso contained in Section
7.4(c) hereof, does not exceed $25,000,000 in the aggregate; and (iii) all net proceeds of such
sales are either (x) promptly delivered by the Companies to the Agent by deposit to the Depository
Account, for application first against the then outstanding Revolving Loans and second against any
other Obligations in such manner and in such order as the Required Lenders may elect in the
exercise of their reasonable business judgment), or (y) within 90 days of such sale, used to
purchase replacement Equipment that the Companies determine in their reasonable business judgment
to have a value at least equal to the Equipment sold. Upon the sale, transfer, lease or other
disposition of Equipment, the Agent’s security interest in the Equipment shall, without break in
continuity and without further formality or act, continue in, and attach to, all Proceeds. Such
Proceeds shall not be commingled with the Companies’ other property, but shall be segregated and
held by the Companies in trust for the Agent as the Agent’s property, for the benefit of the Agent
and the Lenders. As to any such sale, transfer, lease or other disposition, the Agent shall have
all of the rights of an unpaid seller, including stoppage in transit, replevin, rescission and
reclamation.

     6.7. General Intangibles. Each Company represents and warrants to the Agent and the
Lenders that the Companies, together with Parent and each Subsidiary of Parent, possess all General
Intangibles necessary to conduct the business of Parent and its Subsidiaries as presently conducted
and/or as conducted from time to time. Each Company agrees to maintain such Company’s rights in,
and the value of, all such General Intangibles, and to pay when due all payments required to
maintain in effect any licensed rights. The Companies shall provide the Agent with adequate notice
of the acquisition of rights with respect to any additional Patents, Trademarks and Copyrights so
that the Agent may, for the benefit of the Agent and the Lenders and to the extent permitted under
the documentation granting such rights or applicable law, perfect the Agent’s security interest in
such rights in a timely manner.

     6.8. Commercial Tort Claims. Each Company represents and warrants to the Agent and the
Lenders that as of the date hereof, such Company holds no interest in any commercial tort claim. If
any Company at any time holds or acquires a commercial tort claim, such Company agrees to promptly
notify the Agent in writing of the details thereof, and in such writing such Company shall grant to
the Agent, for the benefit of the Agent and the Lenders, a security interest in such commercial
tort claim and in the Proceeds thereof, all upon the terms of this Financing Agreement.

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     6.9. Letter of Credit Rights. Each Company represents and warrants to the Agent
and the Lenders that as of the date hereof, such Company is not the beneficiary of any letter of
credit. If any Company becomes a beneficiary under any letter of credit, such Company agrees to
promptly notify the Agent, and upon request by the Agent, such Company agrees to either (a) cause
the issuer of such letter of credit to consent to the assignment of the proceeds of such letter of
credit to the Agent, for the benefit of the Agent and the Lenders, pursuant to an agreement in form
and substance satisfactory to the Agent, or (b) cause the issuer of such letter of credit to name
the Agent, for the benefit of the Agent and the Lenders, as the transferee beneficiary of such
letter of credit.

     6.10. Intentionally Omitted.

     6.11. Reference to Other Loan Documents. Reference is hereby made to the other Loan
Documents for additional representations, covenants and other agreements of the Companies regarding
the Collateral covered by such Loan Documents. To the extent any of the Loan Documents is not
otherwise amended and/or amended and restated on the Closing Date, each of the Companies party
thereto hereby ratifies, confirms and acknowledges each of representations, covenants and other
agreements of the Companies regarding the Collateral covered by such Loan Documents as of the
Closing Date.

     6.12. Credit Balances; Additional Collateral.

          (a) The rights and security interests granted to the Agent and the Lenders hereunder shall
continue in full force and effect, notwithstanding the termination of this Financing Agreement or
the fact that the Revolving Loan Account may from time to time be temporarily in a credit position,
until the termination of this Financing Agreement and the full and final payment and satisfaction
of the Obligations. Any reserves or balances to the credit of the Companies (in the Revolving Loan
Account or otherwise), and any other property or assets of the Companies (or any of them) in the
possession of the Agent or any Lender, may be held by the Agent or such Lender as Other Collateral,
and applied in whole or partial satisfaction of such Obligations when due, subject to the terms of
this Financing Agreement. The liens and security interests granted to the Agent, for the benefit of
the Agent and the Lenders, herein and any other lien or security interest which the Agent or the
Lenders may have in any other assets of the Companies secure payment and performance of all present
and future Obligations.

          (b) Notwithstanding the Agent’s security interests in the Collateral, to the extent that the
Obligations are now or hereafter secured by any assets or property other than the Collateral, or by
the guaranty, endorsement, assets or property of any other person, the Agent shall have the right
in its sole discretion to determine which rights, security, liens, security interests or remedies
the Agent shall at any time pursue, foreclose upon, relinquish, subordinate, modify or take any
other action with respect to, without in any way modifying or affecting any of such rights,
security, liens, security interests or remedies, or any of the Agent’s or the Lenders’ rights under
this Financing Agreement.

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SECTION 7. REPRESENTATIONS, WARRANTIES AND COVENANTS

     7.1. Initial Disclosure Representations and Warranties. The Companies represent
and warrant to the Agent and the Lenders that:

          (a) Financial Condition. (i) The amount of each Company’s assets, at fair valuation, exceeds
the book value of such Company’s liabilities, (ii) each Company is generally able to pay its debts
as they become due and payable, and (iii) each Company does not have unreasonably small capital to
carry on its business as currently conducted absent extraordinary and unforeseen circumstances. All
financial statements of the Companies previously furnished to the Agent present fairly, in all
material respects, the financial condition of the Companies as of the date of such financial
statements.

          (b) Organization Matters; Collateral Locations. Each of the Companies is a duly and validly
existing corporation or limited liability company in good standing under the laws of the
jurisdiction of its organization and is qualified in all states where the failure to so qualify
would have an adverse effect on its business or its ability to enforce collection of Accounts due
from customers residing in that state. Schedule 7.1(b) attached hereto correctly and
completely sets forth (w) each Companies’ exact name, as currently reflected by the records of each
Companies’ State of incorporation or formation, (x) each Companies’ State of incorporation or
formation, (y) each Companies’ federal employer identification number and State organization
identification number (if any), and (z) the address of each Companies’ chief executive office and
all locations of Collateral.

          (c) Power and Authority; Conflicts; Enforceability.

               (i) Each Company has full power and authority to execute and deliver this Financing Agreement
and the other Loan Documents to which such Company is a party, and to perform all of such Company’s
obligations thereunder.

               (ii) The execution and delivery by each of this Financing Agreement and the other Loan
Documents to which such Company is a party, and the performance of such Company’s obligations
hereunder and thereunder, have been duly authorized by all necessary corporate or other relevant
action, and do not (w) require any consent or approval of any director, shareholder, partner or
member of such Company that has not been obtained, (x) violate any term, provision or covenant
contained in the organizational documents of such Company (such as the certificate or articles of
incorporation, certificate of origin, partnership agreement, by-laws or operating agreement), (y)
violate, or cause such Company to be in default under, any law, rule, regulation, order, judgment
or award applicable to such Company or its assets, or (z) violate any term, provision, covenant or
representation contained in, or constitute a default under, or result in the creation of any lien
under, any loan agreement, lease, indenture, mortgage, deed of trust, note, security agreement or
pledge agreement to which such Company a signatory or by which such Company or such Company’s
assets are bound or affected.

               (iii) This Financing Agreement and the other Loan Documents to which the Companies (or any of
them) are parties constitute legal valid and binding obligations of the Companies, enforceable in
accordance with their respective terms, subject to applicable

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bankruptcy, insolvency, moratorium, fraudulent transfer and other laws affecting creditors’
rights generally, and subject to general principles of equity, regardless of whether considered in
a proceeding at law or in equity.

          (d) Schedules. Each of the Schedules attached to this Financing Agreement set forth a true,
correct and complete description of the matter or matters covered thereby.

          (e) Compliance with Laws. Each Company and such Company’s properties are in compliance with
all federal, state and local acts, rules and regulations, and all orders of any federal, state or
local legislative, administrative or judicial body or official, except to the extent the failure to
so comply would not have a Material Adverse Effect. Each Company has obtained and maintains all
permits, approvals, authorizations and licenses necessary to conduct its business as presently
conducted, except to the extent the failure to have such permits, approvals, authorizations or
licenses would not have a Material Adverse Effect.

          (f) Environmental Matters. Except as set forth on Schedule 7.1(f):

               (i) None of the operations of any Company are the subject of any federal, state or local
investigation to determine whether any remedial action is needed to address the presence or
disposal of any environmental pollution, hazardous material or environmental clean-up of the Real
Estate or such Company’s leased real property. No enforcement proceeding, complaint, summons,
citation, notice, order, claim, litigation, investigation, letter or other communication from a
federal, state or local authority has been filed against or delivered to any Company, regarding or
involving any release of any environmental pollution or hazardous material on any real property now
or previously owned or operated by such Company.

               (ii) Except as would not have a Material Adverse Effect, no Company has any known contingent
liability with respect to any release of any environmental pollution or hazardous material on any
real property now or previously owned or operated by such Company.

               (iii) Each Company is in compliance with all environmental statutes, acts, rules, regulations
and orders applicable to the operation of such Company’s business, except to the extent that the
failure to so comply would not have a Material Adverse Effect.

          (g) Pending Litigation. Except as previously disclosed by the Companies to the Agent in
writing, there exist no actions, suits or proceedings of any kind by or against any Company pending
in any court or before any arbitrator or governmental body, that, individually or in the aggregate,
could reasonably be expected to have a Material Adverse Effect.

          (h) Acquisition. G-III Inc. has consummated its acquisition of all of the issued and
outstanding stock of AM Apparel Holdings, Inc., and its direct and indirect Subsidiaries, AMC, A&S,
Ash Retail of Easthampton, Inc. and ASH Retail Corp., upon the terms set forth in the acquisition
agreement therefor, and has delivered to the Agent (or its counsel) a fully executed copy of the
acquisition agreement and related documents with respect to such acquisition, all of which remain
in full force and effect, and no event of default has occurred thereunder. The rights of G-III
under such acquisition agreement has been collaterally assigned to the Agent pursuant to Collateral
Assignment dated as of February 11, 2008, which such Collateral Assignment remains in full force
and effect.

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          (i) Taxes. Except as disclosed on Schedule 7.1(i), each Company and its Subsidiaries has
(in the case of the Companies or Subsidiaries acquired by G-III Inc., since the date of
acquisition) timely filed or caused to be filed all federal, provincial, territorial and other
material Tax returns and reports required to have been filed by it and has paid or caused to be
paid all Taxes required to have been paid by it, except (x) Taxes that are being contested in good
faith by appropriate proceedings and for which such Company or Subsidiary has set aside on its
books adequate reserves in accordance with GAAP and (y) Taxes the non-payment of which, in the
aggregate, is not reasonably expected to have a Material Adverse Effect. Except as disclosed on
Schedule 7.1(i), no material Tax liens are currently in effect with respect to the assets of any of
the Companies or their respective Subsidiaries, and no material claims asserted in writing with
respect to any such Taxes are currently pending or unresolved.

          (j) ERISA and Benefit Plans. No event described in Section 10.1(g) has occurred or is
reasonably expected to occur. Except as disclosed on Schedule 7.1(j), the present value of all
accumulated benefit obligations under each “plan” (based on the assumptions used for purposes of
Statement of Financial Accounting Standards No. 87) did not, as of the date of the most recent
financial statements reflecting such amounts, exceed by an amount that could reasonably be expected
to result in a Material Adverse Effect the fair market value of the assets of such “plan”, and the
present value of all accumulated benefit obligations of all underfunded “plans” (based on the
assumptions used for purposes of Statement of Financial Accounting Standards No. 87) did not, as of
the date of the most recent financial statements reflecting such amounts, exceed by more than
$100,000 the fair market value of the assets of all such underfunded “plans”. No pension,
retirement, superannuation or similar policy or arrangement is sponsored, maintained or contributed
to by any Company in a jurisdiction other than the United States of America. Except as required by
applicable law, or which could not reasonably be expected to give rise to a Material Adverse
Effect, none of the Companies nor any Subsidiary thereof maintains, sponsors or contributes to any
plan, policy or arrangement that provides medical benefits to retirees or their beneficiaries.

          (k) Labor Matters. As of the Closing Date (a) except as set forth on Schedule 7.1(k), there is
no collective bargaining agreement or other material labor contract covering employees of any
Company or any of its Subsidiaries, (b) no union or other labor organization is seeking to
organize, or to be recognized as, a collective bargaining unit of employees of any Company or any
of its Subsidiaries or for any similar purpose, and (c) there is no pending or (to the best of the
Companies’ knowledge) threatened, strike, work stoppage, material unfair labor practice claim, or
other material labor dispute against or affecting any Company or any of its Subsidiaries or
employees.

     7.2. Affirmative Covenants. Until the termination of this Financing Agreement and the
full and final payment and satisfaction of the Obligations:

          (a) Maintenance of Financial Records; Inspections. Each Company agrees to maintain books and
records pertaining to such Company’s financial matters in such detail, form and scope as the Agent
reasonably may require. Each Company agrees that the Agent, and/or any agent designated by the
Agent, may enter upon any Company’s premises at any time during normal business hours, and from
time to time, in order to (i) examine and inspect the books and records of any Company, and make
copies thereof and take extracts therefrom, and

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(ii) verify, inspect and perform physical counts and other valuations of the Collateral and
any and all records pertaining thereto. The Companies irrevocably authorize all accountants and
third parties to disclose and deliver directly to the Agent and the Lenders, at the Companies’
expense, all financial statements and information, books, records, work papers and management
reports generated by them or in their possession regarding the Companies or the Collateral. All
costs, fees and expenses incurred by the Agent in connection with such examinations, inspections,
physical counts and other valuations shall constitute Out-of-Pocket Expenses for purposes of this
Financing Agreement.

          (b) Further Assurances. Each Company agrees to comply with the requirements of all state and
federal laws in order to grant to the Agent, for the benefit of the Agent and the Lenders, valid
and perfected first priority security interests in the Collateral, subject only to the Permitted
Encumbrances. The Agent is hereby authorized by the Companies to file any financing statements,
continuations and amendments covering the Collateral without the Companies’ signatures in
accordance with the provisions of the UCC. The Companies hereby consent to and ratify the filing of
any financing statements covering the Collateral by the Agent on or prior to the Closing Date. The
Companies agree to do whatever the Agent reasonably may request from time to time, by way of (i)
filing notices of liens, financing statements, amendments, renewals and continuations thereof, (ii)
cooperating with agents and employees of the Agent, (iii) keeping Collateral records, (iv)
transferring proceeds of Collateral to the Agent’s possession in accordance with the terms hereof
and (v) performing such further acts as the Agent reasonably may require in order to effect the
purposes of this Financing Agreement, including the execution of control agreements with respect to
Depository Accounts and Investment Property.

          (c) Insurance and Condemnation.

               (i) Required Insurance. The Companies agree to maintain insurance on all Real Estate,
Equipment and Inventory under such policies of insurance, with such insurance companies, in such
reasonable amounts and covering such insurable risks as are at all times reasonably satisfactory to
the Agent (the “Required Insurance”). All policies covering the Real Estate, Equipment and
Inventory are, subject to the rights of any holder of a Permitted Encumbrance having priority over
the security interests of the Agent, to be made payable solely to the Agent, for the benefit of the
Agent and the Lenders, in case of loss, under a standard non-contributory “mortgagee”, “secured
party” or “lender’s loss payable” clause or endorsement, and are to contain such other provisions
as the Agent reasonably may require to fully protect the Agent’s interest in the Real Estate,
Inventory and Equipment and to any payments to be made under such policies. Each loss payable
endorsement in favor of the Agent shall provide (x) for not less than thirty (30) days prior
written notice to the Agent of the exercise of any right of cancellation and (y) that the Agent’s
right to payment under any property insurance policy will not be invalidated by any act or neglect
of, or any breach of warranty or condition by, the Companies (or any of them) or any other party.
If an Event of Default shall have occurred and remain outstanding, the Agent, subject to the rights
of any holder of a Permitted Encumbrance having priority over the security interests of the Agent,
shall have the sole right, in the name of the Agent or the Companies (or any of them), to file
claims under any insurance policies, to receive, receipt and give acquittances for any payments
that may be payable thereunder, and to execute any and all endorsements, receipts, releases,
assignments, reassignments or other documents that may be necessary to effect the collection,
compromise or settlement of any claims under any such insurance policies.

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               (ii) The Agent’s Purchase of Insurance. In the event the Companies fail to
provide the Agent with evidence of the Required Insurance in the manner set forth in Section
7.2(c)(i) above, the Agent may purchase insurance at the Companies’ expense to protect the interest
in the Collateral of the Agent for the benefit of the Agent and the Lenders. The insurance
purchased by the Agent may, but need not, protect the Companies’ interests in the Collateral, and
therefor such insurance may not pay any claim which the Companies may make or any claim which is
made against the Companies in connection with the Collateral. The Companies may later request that
the Agent cancel any insurance purchased by the Agent, but only after providing the Agent with
satisfactory evidence that the Companies have the Required Insurance. If the Agent purchases
insurance covering all or any portion of the Collateral, the Companies shall be responsible for the
costs of such insurance, including interest (at the applicable rate set forth hereunder) and other
charges accruing on the purchase price therefor, until the effective date of the cancellation or
the expiration of the insurance, and the Agent may charge all of such costs, interest and other
charges to the Revolving Loan Account as a Revolving Loan. The costs of the premiums of any
insurance purchased by the
Agent may exceed the costs of insurance which the Companies may be able to purchase on their
own. In the event that the Agent purchases insurance, the Agent will notify the Companies of such
purchase within thirty (30) days after the date of such purchase. If, within thirty (30) days after
the date of receipt of such notice, the Companies provide the Agent with proof that the Companies
had the Required Insurance as of the date on which the Agent purchased insurance and the Companies
have continued at all times thereafter to have the Required Insurance, then the Agent agrees to
cancel the insurance purchased by the Agent and credit the Revolving Loan Account for the amount of
all costs, interest and other charges associated with such insurance that the Agent previously
charged to the Revolving Loan Account.

               (iii) Application of Insurance and Condemnation Proceeds. So long as no Default or
Event of Default shall have occurred and remain outstanding as of the date of the Agent’s receipt
of any Casualty Proceeds:

                    (w) In the event of any loss or damage to any Inventory by condemnation, fire or other
casualty, the Agent agrees to apply the Casualty Proceeds to repay the outstanding Revolving Loans.

                    (x) In the event of any loss or damage to any item of Collateral other than Inventory by
condemnation, fire or other casualty, if the Casualty Proceeds relating to such condemnation, fire
or other casualty are less than or equal to $100,000, the Agent agrees to apply such Casualty
Proceeds to repay the outstanding Revolving Loans.

                    (y) In the event of any loss or damage to any item of Equipment by condemnation, fire or other
casualty, if the Casualty Proceeds relating to such condemnation, fire or other casualty exceed
$100,000, the Companies may elect (by delivering written notice to the Agent within ten (10)
Business Days following the Agent’s receipt of such Casualty Proceeds) to replace or repair such
item of Equipment. If the Companies elect to replace or repair any item of Equipment, the Agent
initially shall apply all such Casualty

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Proceeds to the outstanding Revolving Loans and will establish an Availability Reserve in an
amount equal to such Casualty Proceeds. The Agent agrees to reduce this Availability Reserve
dollar-for-dollar as and when payments then are due under the contract(s) for the purchase of
replacement Equipment or the repair of such item of Equipment. Upon the replacement or completion
of repair of such item of Equipment, the Agent will eliminate any remaining Availability Reserve
established hereunder.

                    (z) In the event of any loss or damage to any Real Estate leased by the Companies by
condemnation, fire or other casualty, the Companies may use the Casualty Proceeds in the manner
required or permitted by the lease agreement relating thereto. In the event of any loss or damage
to any Real Estate owned by the Companies by condemnation, fire or other casualty, if the Casualty
Proceeds relating to such condemnation, fire or other casualty exceed $100,000, and so long as the
Companies have sufficient business interruption insurance to replace the lost profits of the
facilities affected by the condemnation, fire or other casualty, the Companies may elect to repair
or replace such Real Estate, subject to the following terms:

                         (1) If the Companies reasonably determine that the Real Estate may be repaired to
substantially the same condition of the Real Estate prior to the condemnation, fire or other
casualty, the Companies may elect to repair the Real Estate by delivering written notice to the
Agent within thirty (30) days following the Agent’s receipt of such Casualty Proceeds. The Agent
initially shall apply all such Casualty Proceeds to the outstanding Revolving Loans and will
establish an Availability Reserve in an amount equal to such Casualty Proceeds. The Companies shall
provide the Agent with a repair plan, the contract(s) for repair and a total budget certified by an
independent third party experienced in construction costing. If such budget indicates that there
are insufficient Casualty Proceeds to cover the full cost of repair of the Real Estate, the
Companies shall fund such deficiency before the Availability Reserve established hereunder shall be
reduced. The Agent agrees to reduce this Availability Reserve dollar-for-dollar as and when
payments are due under the contract(s) for repair. Upon
completion of the repair of the Real Estate (as determined by the Agent in the exercise of its
reasonable business judgment), the Agent will eliminate any remaining Availability Reserve
established hereunder.

                         (2) The Companies may elect to replace the Real Estate owned by the Companies only on terms
and conditions satisfactory to the Required Lenders in their sole discretion.

If a Default or an Event of Default shall have occurred and remain outstanding as of the date of
the Agent’s receipt of any Casualty Proceeds, or if the Companies do not or cannot elect to use the
Casualty Proceeds in the manner set forth in paragraphs (y) or (z) above, the Agent may, subject to
the rights of any holder of a Permitted Encumbrance having priority over the security interests of
the Agent, apply the Casualty Proceeds to the payment of the Obligations in such manner and in such
order as the Agent may elect in its sole discretion. Any amounts that are applied to the repayment
of the Revolving Loans under this Section 7.2(c) shall also result in a reduction in the
Supplemental Amount in an amount equal to such repayment of Revolving Loans.

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          (d) Payment of Taxes. The Companies shall pay when due all Taxes lawfully levied,
assessed or imposed upon the Companies or the Collateral (including all sales taxes collected by
the Companies on behalf of the Companies’ customers in connection with sales of Inventory and all
payroll taxes collected by the Companies on behalf of the Companies’ employees), unless the
Companies are contesting such Taxes in good faith, by appropriate proceedings, and is maintaining
adequate reserves for such Taxes in accordance with GAAP. Notwithstanding the foregoing, if a lien
securing any Taxes is filed in any public office and such lien is not a Permitted Tax Lien, then
the Companies shall pay all Taxes secured by such lien immediately and remove such lien of record
promptly. Pending the payment of such Taxes and removal of such lien, the Agent may, at its
election and without curing or waiving any Event of Default which may have occurred as a result
thereof, (i) establish an Availability Reserve in the amount of such Taxes (or such other amount as
the Agent shall deem appropriate in the exercise of its reasonable business judgment) or (ii) pay
such Taxes on behalf of the Companies, and the amount paid by the Agent shall become an Obligation
which is due and payable on demand by the Agent.

          (e) Compliance With Laws.

               (i) The Companies agree to comply with all federal, state and local acts, rules and
regulations, and all orders of any federal, state or local legislative, administrative or judicial
body or official, if the failure to so comply would have a Material Adverse Effect, provided that
the Companies may contest any acts, rules, regulations, orders and directions of such bodies or
officials in any reasonable manner which the Agent determines, in the exercise of its reasonable
business judgment, will not materially and adversely effect the Agent’s or the Lenders’ rights or
priorities in the Collateral.

               (ii) Without limiting the generality of the foregoing, each Company agrees to comply with all
environmental statutes, acts, rules, regulations or orders, as presently existing or as adopted or
amended in the future, applicable to the ownership and/or use of such Company’s real property and
operation of its business, if the failure to so comply would have a Material Adverse Effect. No
Company shall be deemed to have breached any provision of this Section 7.2(e) if (x) the
failure to comply with the requirements of this Section 7.2(e) resulted from good faith
error or innocent omission, (y) such Company promptly commences and diligently pursues a cure of
such breach and (z) such failure is cured within thirty (30) days following the Companies’ receipt
of notice from the Agent of such failure, or if such breach cannot in good faith be cured within
thirty (30) days following the Companies’ receipt of such notice, then such breach is cured within
a reasonable time frame based on the extent and nature of the breach and the necessary remediation,
and in conformity with any applicable consent order, consensual agreement and applicable law.

          (f) Notices Concerning Environmental, Employee Benefit and Pension Matters. The Companies
agree to notify the Agent in writing of:

               (i) any expenditure (actual or anticipated) in excess of $100,000 for environmental clean-up,
environmental compliance or environmental testing and the impact of said expenses on the any
Company’s working capital;

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               (ii) any Company’s receipt of notice from any local, state or federal authority advising
the Companies of any environmental liability (real or potential) arising from such Company’s
operations, its premises, its waste disposal practices, or waste disposal sites used by such
Company; and

               (iii) any Company’s receipt of notice from any governmental agency or any sponsor of any
“multiemployer plan” (as that term is defined in ERISA) to which such Company has contributed,
relating to any of the events described in Section 10.1(g) hereof.

The Companies agree to provide the Agent promptly with copies of all such notices and other
information pertaining to any matter set forth above if the Agent so requests.

          (g) Collateral Reporting.

               (i) The Companies agree to furnish to the Agent:

                    (1) (x) At all times when Unused Non-Supplemental Availability is not less than $0, monthly,
delivered not more than seven (7) days after the end of each calendar month and (y) at all times
when Unused Non-Supplemental Availability is less than $0 (determined at any time commencing on any
Friday and continuing through the next Wednesday), on or before the Wednesday of each week as of
the previous Friday (but more frequently upon the Agent’s reasonable request), a Borrowing Base
Certificate certified by the treasurer or chief financial officer of the Funds Administrator (or
any other authorized officer satisfactory to the Agent), together with such confirmatory schedules
of Trade Accounts Receivable and Inventory (in form and substance satisfactory to the Agent) as the
Agent reasonably may request. The Agent, in its sole discretion, may permit the Funds Administrator
to access CIT’s System for the purpose (in addition to those set forth in Section 3.7) of
completing and submitting Borrowing Base Certificates when required hereunder. The Agent will
promptly provide to each Lender a copy of the Borrowing Base Certificate received from the
Companies.

                    (2) (a) (x) At all times when Unused Non-Supplemental Availability is not less than $0,
monthly, delivered not more than seven (7) days after the end of each calendar month and (y) at all
times when Unused Non-Supplemental Availability is less than $0 (determined at any time commencing
on any Friday and continuing through the next Wednesday), on or before the Wednesday of each week
as of the previous Friday:

                         (i) an Accounts Receivable Aging Report;

                         (ii) an Available to Sell Report designated in Dollars in the form attached hereto as Exhibit
H;

                         (iii) an Inventory Analysis Report on LDP Cost vs. LCM Cost in the form attached hereto as
Exhibit I; and

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                         (iv) a divisional status report detailing by division: (A) open customer orders detailed
by “this year versus last year” and “TLC/FLC versus warehouse”; and (B) inventory detailed as to
inventory on hand and in transit.

                    (b) Monthly, delivered not more than 25 days (except as otherwise provided below) after the
end of each calendar month;

                         (i) all the reports identified in clauses (a)(i) through (a)(iv) above, prepared on a monthly
basis as to the preceding calendar month;

                         (ii) a key item report (“Key item Report”), as of the last day of the immediately preceding
month with respect to the Companies and each Guarantor in the form attached hereto as Exhibit J;
provided, however, that such statement may be delivered not more than 30 days after
the end of each calendar month; provided, further, that such statement shall not be
required during the months of February and March;

                         (iii) a statement with respect to compliance with the financial covenants set forth in Section
7.3; provided, however, that such statement may be delivered not more than 30 days after the end of
each calendar month;

                         (iv) a reconciliation between the general ledger and the Accounts Receivable Aging Report and
the month-end Borrowing Base Certificate;

                         (v) a Gross Margin Report in form satisfactory to the Agent and the Lenders; and

                         (vi) an accounts payable aging report in the form satisfactory to the Agent;

each of which shall be certified as true and correct by the chief executive officer, president,
chief operating officer or the chief financial officer of the Companies or the Parent, as the case
may be.

                    (3) Prompt written disclosure of (x) all matters adversely affecting the value, enforceability
or collectibility of the Trade Accounts Receivable of the Companies, (y) all customer disputes,
offsets, defenses, counterclaims, returns, rejections and all reclaimed or repossessed merchandise
or goods, and (z) all matters adversely effecting the value or marketability of the Inventory, all
in such detail and format as the Agent reasonably may require, provided that to the extent that any
such matter would not have a Material Adverse Effect, the Companies may disclose such matter to the
Agent when the Companies provide the Agent with the Borrowing Base Certificate described in clause
(1) above.

                    (4) Prior written notice of any change in the location of any Collateral.

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                    (5) From time to time, access to the Companies’ computers, electronic media, software
programs (including any electronic records, contracts and signatures) and such other documentation
and information relating to the Trade Accounts Receivable, Inventory and other Collateral as the
Agent reasonably may require.

               (ii) The Companies may deliver to the Agent any Borrowing Base Certificate, collateral report
or other material that the Companies are required to deliver to the Agent under clauses (1) and (2)
of Section 7.2(g)(i) by e-mail or other electronic transmission (an “Electronic Transmission”),
subject to the following terms:

                    (1) Each Electronic Transmission must be sent by the treasurer or chief financial officer of
the Funds Administrator (or any other authorized officer satisfactory to the Agent), and must be
addressed to the loan officer and the collateral analyst of the Agent that handle the Companies’
account, as designated by the Agent from time to time. If any Electronic Transmission is returned
to the sender as undeliverable, the material included in such Electronic Transmission must be
delivered to the intended recipient in the manner required by Section 12.6 hereof.

                    (2) Each certificate, collateral report or other material contained in an Electronic
Transmission must be in a “pdf” or other imaging format and, to the extent that such material must
be certified by an officer of the Funds Administrator under this Section 7.2(g), must contain the
signature of the officer submitting the Electronic Transmission. As provided in Section 12.6, any
signature on a certificate, collateral report or other material contained in an Electronic
Transmission shall constitute a valid signature for purposes hereof. The Agent may rely upon, and
assume the authenticity of, any such signature, and any material containing such signature shall
constitute an “authenticated” record for purposes of the Uniform Commercial Code and shall satisfy
the requirements of any applicable statute of frauds.

                    (3) Each Electronic Transmission must contain the name and title of the officer of Funds
Administrator transmitting the Electronic Transmission, and shall include following text in the
body of the Electronic Transmission:

“Pursuant to the Amended and Restated Financing Agreement dated
April 3, 2008 among G-III Leather Fashions, Inc., J. Percy for
Marvin Richards, Ltd., CK Outerwear, LLC, A. Marc & Co., Inc. and
Andrew & Suzanne Company Inc. (the “Companies”), the Lenders that
are parties thereto and The CIT Group/Commercial Services, Inc., as
Agent for the Lenders (the “Agent”), the undersigned __________
[title of submitting officer] of the Funds Administrator hereby
delivers to the Agent the Companies’ ____________ [describe
submitted reports]. The Funds Administrator, on behalf of the
Companies, represents and warrants to the Agent and the Lenders
that the materials included in this Electronic Transmission are
true, correct, and complete in all material respects. The name of
the officer of the Funds Administrator set forth in this e-mail
constitutes the signature of such officer, and this e-mail shall
constitute an authenticated record of the Companies.”

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                    (4) The Funds Administrator agrees to maintain in its files the original versions of all
certificates, collateral reports and other materials delivered to the Agent by means of an
Electronic Transmission and agrees to furnish to the Agent such original versions within five (5)
Business Days of the Agent’s request for such materials, signed and certified (to the extent
required hereunder) by the officer submitting the Electronic Transmission.

                    (5) Each Company authorizes the Funds Administrator, on behalf of such Company, to deliver to
the Agent all Borrowing Base Certificates, collateral reports and other material that the Companies
are required to deliver to the Agent under this Section 7.2(g). Each Company hereby authorizes the
Agent to regard the Companies’ printed name or rubber stamp signature on assignment schedules or
invoices as the equivalent of a manual signature by such Company’s authorized officers or agents.
The Companies’ failure to promptly deliver to
the Agent any schedule, report, statement or other information set forth in this Section
7.2(g) shall not affect, diminish, modify or otherwise limit the Agent’s security interests in the
Collateral.

          (h) Financial Reporting. The Companies agree to furnish to the Agent and the Lenders (it being
understood that the filing of any of the following by Parent with the Securities and Exchange
Commission shall constitute “furnishing to the Agent and the Lenders” for all purposes hereunder):

               (i) (x) within ninety (90) days after the end of each fiscal year of Parent, a Consolidated
Balance Sheet and a Consolidating Balance Sheet as at the close of such year, and consolidated and
consolidating statements of profit and loss and cash flow of Parent and its consolidated
Subsidiaries for such year, audited by independent public accountants selected by Parent, together
with (x) the unqualified opinion of the accountants preparing such consolidated financial
statements and (y) if requested by the Agent, such accountants’ management practice letter, as soon
as practicable after such letter is received by Parent;

               (ii) (a) within thirty (30) days after the end of each month (excluding the months of February
and March of each fiscal year), (x) a Consolidated Balance Sheet and a Consolidating Balance Sheet
as at the end of such month, (y) consolidated and consolidating statements of profit and loss of
Parent and its consolidated Subsidiaries for the period commencing on the first day of the current
fiscal year through the end of such month, and consolidated statements of profit and loss for such
month, and (z) comparative statements of profit and loss of Parent and its consolidated
Subsidiaries for the same month and same fiscal year-to-date period in the prior fiscal year,
certified by an authorized financial or accounting officer of the Funds Administrator (or any other
authorized officer satisfactory to the Agent); and

                    (b)within forty-five (45) days after the end of each fiscal quarter, (x) a Consolidated
Balance Sheet and a Consolidating Balance Sheet as at the end of such fiscal quarter, (y)
consolidated and consolidating statements of profit and loss of Parent and its consolidated
Subsidiaries for the period commencing on the first day of the current fiscal year through the end
of such fiscal quarter, and consolidated statements of profit and loss for such

54

 

fiscal quarter, and (z) comparative statements of profit and loss of Parent and its
consolidated Subsidiaries for the same fiscal quarter and same fiscal year-to-date period in the
prior fiscal year, certified by an authorized financial or accounting officer of the Funds
Administrator (or any other authorized officer satisfactory to the Agent);

               (iii) as and when filed by Parent and/or any of its Subsidiaries, copies of all (x) financial
reports, registration statements and other documents filed by Parent with the U.S. Securities and
Exchange Commission, as and when filed by Parent, and (ii) annual reports filed pursuant to ERISA
in connection with each benefit plan of each Company subject to ERISA; and

               (iv) no later than forty-five (45) days prior to the beginning of each fiscal year of Parent,
monthly projections of Consolidated Balance Sheet of Parent and its consolidated Subsidiaries, and
consolidated statements of profits and loss of Parent and its consolidated Subsidiaries, as well as
monthly projected Net Availability for the Companies for such fiscal year.

     Each financial statement which the Companies are required to submit pursuant to clauses (i)
and (ii) above must be accompanied by a Compliance Certificate substantially in the form set forth
on Exhibit D attached hereto, signed by an authorized financial or accounting officer of the Funds
Administrator (or any other authorized officer satisfactory to the Agent). The financial statements
which the Companies is required to submit pursuant to clause (ii) (b) above must also be reviewed
by independent public accountants selected by Parent. In addition, should the Companies modify
their accounting principles and procedures from those in effect on the Closing Date, the
Companies agree to prepare and deliver to the Agent and the Lenders statements of
reconciliation in form and substance reasonably satisfactory to the Agent.

          (i)Asset Appraisals. During the existence of an Event of Default, the Companies agree to
reimburse the Agent for the costs and expenses relating to Inventory appraisals and Equipment
appraisals. All appraisals shall be performed by qualified appraisers selected by the Agent. To the
extent that the Companies are required by this Section 7.2(i) to reimburse the Agent for the
Agent’s costs and expenses relating to appraisals, such costs and expenses shall constitute
Out-of-Pocket Expenses.

          (j) Business Qualification. The Companies agree to qualify to do business, and to remain
qualified to do business and in good standing, in each jurisdiction where the failure to so
qualify, or to remain qualified or in good standing, would have a Material Adverse Effect.

          (k) Anti-Money Laundering and Terrorism Regulations. The Companies agree to comply with all
applicable anti-money laundering and terrorism laws, regulations and executive orders in effect
from time to time (including, without limitation, the USA Patriot Act (Pub. L. No. 107-56)). The
Companies also agree to ensure that no person who owns a controlling interest in or otherwise
controls the Companies (or any of them) is a person designated under Section 1(b), (c) or (d) of
Executive Order No. 13224 (issued September 23, 2001) or any other similar Executive Order. The
Companies acknowledge that the Agent’s and each Lender’s performance hereunder is subject to
compliance with all such laws, regulations

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and executive orders, and in furtherance of the foregoing, the Companies agree to provide to
the Agent and the Lenders all information about the Companies’ ownership, officers, directors,
customers and business structure as the Agent and the Lenders reasonably may require to comply
with, such laws, regulations and executive orders.

     7.3. Financial Covenants. Until termination of this Financing Agreement and the full
and final payment and satisfaction of all Obligations, Parent and its Subsidiaries shall on a
consolidated basis:

          (a) Senior Leverage Coverage. Maintain a Senior Leverage Ratio, as at the end of each fiscal
quarter set forth below, on a trailing twelve months basis, of not greater than the following for
the applicable test period:

	 	 	 
	Twelve Months Ending	 	Senior Leverage Ratio
	April 30, 2008

	 	1.00 to 1.00
	July 31, 2008

	 	5.00 to 1.00
	October 31, 2008

	 	6.00 to 1.00
	January 31, 2009

	 	1.00 to 1.00
	April 30, 2009

	 	1.00 to 1.00
	July 31, 2009

	 	5.00 to 1.00
	October 31, 2009

	 	6.00 to 1.00
	January 31, 2010

	 	1.00 to 1.00
	April 30, 2010

	 	1.00 to 1.00
	July 31, 2010

	 	5.00 to 1.00
	October 31, 2010

	 	6.00 to 1.00
	January 31, 2011

	 	1.00 to 1.00
	April 30, 2011

	 	1.00 to 1.00

          (b) Fixed Charge Coverage. Maintain a Fixed Charge Coverage Ratio, as at the end of each
fiscal quarter set forth below, on a trailing twelve months basis, of not less than the following
for the applicable test period:

	 	 	 
	Twelve Months Ending	 	Fixed Charge Coverage Ratio
	April 30, 2008

	 	1.00 to 1.00
	July 31, 2008

	 	1.00 to 1.00
	October 31, 2008

	 	1.20 to 1.00
	January 31, 2009

	 	1.30 to 1.00
	April 30, 2009

	 	1.00 to 1.00
	July 31, 2009

	 	1.00 to 1.00
	October 31, 2009

	 	1.20 to 1.00
	January 31, 2010

	 	1.30 to 1.00
	April 30, 2010

	 	1.00 to 1.00
	July 31, 2010

	 	1.00 to 1.00
	October 31, 2010

	 	1.20 to 1.00
	January 31, 2011

	 	1.30 to 1.00
	April 30, 2011

	 	1.00 to 1.00

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          (c) Receivables Only Availability. Cause for ninety (90) consecutive days during each
period from November 1 through April 30 during the term hereof, the Borrowing Base of the Companies
minus that portion of the Borrowing Base determined under clauses (a)(ii), (a)(iii) and
(a)(iv) of the definition of Borrowing Base, to exceed the sum of (i) the principal amount of all
outstanding Revolving Loans, plus (ii) the undrawn amount of all outstanding Letters of Credit,
Bankers Acceptances, Steamship Guarantees and Airway Releases.

     7.4. Negative Covenants. Until termination of this Financing Agreement and full and
final payment and satisfaction of all Obligations, each Company agrees not to, and will cause each
Guarantor and each subsidiary of such Company not to:

          (a) Liens and Encumbrances. Mortgage, assign, pledge, transfer or otherwise permit any lien,
charge, security interest, encumbrance or judgment (whether as a result of a purchase money or
title retention transaction, or other security interest, or otherwise) to exist on any of the
Collateral or its other assets, whether now owned or hereafter acquired, except for the Permitted
Encumbrances.

          (b) Indebtedness. Incur or create any Indebtedness other than the Permitted Indebtedness.

          (c) Sale of Assets. Sell, lease, assign, transfer or otherwise dispose of (i) Collateral,
except as otherwise specifically permitted by this Financing Agreement, or (ii) all or any
substantial part of its assets, if any, which do not constitute Collateral; provided,
however, that, during the term of this Agreement, the Companies may dispose of assets
having an aggregate value not in excess of $25,000,000 (including any Equipment sold in accordance
with Section 6.6(b)), provided, further that the proceeds of such sales are
promptly delivered to the Agent by deposit to the Depository Account, for application first against
the then outstanding Revolving Loans and
second against any other Obligations in such manner and in such order as the Required Lenders
may elect in the exercise of their reasonable business judgment.

          (d) Corporate Change. (i) Merge or consolidate with any other entity, (ii) its name or
principal places of business, (iii) change its structure or organizational form, or reincorporate
or reorganize in a new jurisdiction, (iv) enter into or engage in any operation or activity
materially different from that presently being conducted by such Company, any Guarantor or any
Subsidiary of such Company, as the case may be; provided that any Company, any Guarantor and any
Subsidiary of a Company may change its name or its principal place of business so long as the
Companies provide the Agent with thirty (30) days prior written notice thereof and the appropriate
parties execute and deliver to the Agent, prior to making such change, all documents and agreements
required by the Agent in order to ensure that the liens and security interests granted to the
Agent, for the benefit of the Agent and the Lenders, hereunder continue in effect without any break
or lapse in perfection.

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          (e) Guaranty Obligations. Other than guaranties described in clause (h) of the definition
of Permitted Indebtedness, assume, guarantee, endorse, or otherwise become liable upon the
obligations of any person, firm, entity or corporation, except pursuant to this Agreement and the
other Loan Documents, and by the endorsement of negotiable instruments for deposit or collection or
similar transactions in the ordinary course of business.

          (f) Dividends and Distributions. Declare or pay any dividend or distribution of any kind on,
or purchase, acquire, redeem or retire, any of its equity interests (of any class or type
whatsoever), whether now or hereafter issued and outstanding, other than Permitted Distributions.

          (g) Investments and Acquisitions. (i) Create any new subsidiary, or (ii) make any advance or
loan to, or any investment in, any firm, entity, person or corporation other than Permitted
Intercompany Loans and Other Permitted Investments, or (iii) acquire any assets of (other than
purchases of Inventory in the ordinary course of business), or any capital stock or any equity
interests in, any firm, entity or corporation, other than current investments of such Company, any
Guarantor and any subsidiary of such Company, as the case may be, in existing subsidiaries of such
entities; provided, however that the Companies may consummate a “Permitted Acquisition,” which
shall mean any acquisition of assets, capital stock or other equity interests of any firm, entity,
person or corporation engaged in any retail or wholesale consumer products business and/or related
services business, subject to the following conditions:

     (I) the aggregate consideration in respect of all acquisitions contemplated by
this clause (g) shall not exceed, during the term of this Agreement, (x) the sum of
(A) $25,000,000 in cash (whether payable on or prior to the closing thereof or at any
time thereafter through and including the Termination Date, but excluding any
contingent “earn out” payments relating to such Permitted Acquisition;
provided, however, that no more than $5,000,000 of such amount shall
be available for acquisitions that are not in the same line of business as the
Companies on the Closing Date or a complementary line of business) minus (B)
the aggregate amount of any Permitted Distributions distributed during the term of
this Agreement (reduced, but not below zero, by the net proceeds of any public
offering received by the Companies subsequent to the Original Closing Date, plus (y)
an amount equal to any consideration payable in the form of additional capital stock
of Parent issued to the applicable seller in connection with such acquisition;

     (II) the relevant Company shall give the Agent and the Lenders not less than one
(1) Business Day prior written notice of its intention to make a Permitted
Acquisition, such notice (A) to include the proposed amounts, date and form of the
proposed Permitted Acquisition, a reasonable description of the assets or stock to be
acquired and the location of the relevant assets and (B) to be accompanied
by a certificate executed by the chief executive officer, president, chief
operating officer or chief financial officer of the relevant Company to the

58

 

effect that: (1) as of the effective date of the Permitted Acquisition, no
Default or Event of Default under this Agreement shall exist or would exist after
giving effect to the action intended to be taken by the relevant Company as described
in such certificate, including, without limitation, that the covenants set forth in
Section 7.3 would not be breached after giving effect to such action, together with a
calculation in reasonable detail, and in form and substance satisfactory to the Agent
and the Lenders, of such compliance, and (2) the representations and warranties
contained in this Agreement are true and correct with the same effect as though such
representations and warranties were made on the date of such Permitted Acquisition,
except for changes in the ordinary course of business none of which, either singly or
in the aggregate, have had a material adverse effect on the business, operations or
financial conditions of the relevant Company;

     (III) concurrently with the making of a Permitted Acquisition, the relevant
Company shall, as additional collateral security for the Obligations, grant to the
Agent, for the ratable benefit of the Agent and the Lenders, prior liens on and
security interests in all of its right, title and interest in and to any of the
acquired stock and assets, by the execution and delivery to the Agent of such
agreements, instruments and documents as shall be satisfactory in form and substance
to the Agent; and

     (IV) the Companies shall not make any acquisition at any time during which an
Event of Default shall exist and be continuing or would exist after giving effect to
such acquisition.

     The parties hereto acknowledge and agree that the Agent may impose limitations upon the
inclusion in the Borrowing Base of any assets acquired in a Permitted Acquisition.

          (h) Related Party Transactions. Enter into any transaction, including, without limitation, any
purchase, sale, lease, loan or exchange of property, with any shareholder, officer, director,
parent (direct or indirect), subsidiary (direct or indirect) or other person or entity otherwise
affiliated with the Companies, any Guarantor or any subsidiary of a Company, unless (i) such
transaction otherwise complies with the provisions of this Financing Agreement, (ii) such
transaction is for the sale of goods or services rendered in the ordinary course of business and
pursuant to the reasonable requirements of the Companies, any Guarantor or any subsidiary of a
Company, as the case may be, and upon standard terms and conditions and fair and reasonable terms,
no less favorable to such entity than such entity could obtain in a comparable arms length
transaction with an unrelated third party, and (iii) no Event of Default shall have occurred and
remain outstanding at the time such transaction occurs, or would occur after giving effect to such
transaction; provided, however, that if no Event of Default shall have occurred
which shall remain outstanding at the time such transaction occurs, or would occur after giving
effect to such transaction, the Companies may make up to $5,000,000 in the aggregate during the
term of this Agreement with respect to payments otherwise prohibited or restricted by this Section
7.4(h).

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          (i) Restricted Payments. Pay management, consulting or other similar fees to
shareholders, directors, the parent (direct or indirect), subsidiaries (direct or indirect) or
other persons or entities otherwise affiliated with the Companies, any Guarantor or any subsidiary
of a Company, other than director and committee fees to non-employee directors and salaries,
bonuses and other compensation paid to any full-time executive employee in respect of such
full-time employment; provided, however, that if no Event of Default shall have
occurred which shall remain outstanding at the time such transaction occurs, or would occur after
giving effect to such transaction, the Companies may make up to $5,000,000 in the aggregate during
the term of this Agreement with respect to payments otherwise prohibited or restricted by this
Section 7.4(i).

          (j) Subordinated Debt. Make any prepayment of any Subordinated Debt or any payment of
Subordinated Debt, whether of interest, premium or principal if (a) after giving effect to such
payment any Event of Default shall have occurred which is then continuing or (b) if the making of
such payment is in violation of the terms of any applicable subordination agreement or any
subordination provision contained in any agreement applicable thereto.

          (k) Prohibited Uses of Proceeds. Use the proceeds of any Revolving Loan made under this
Financing Agreement, directly or indirectly, in violation of any applicable law or regulation,
including without limitation Regulations T, U or X of the Board of Governors of the Federal Reserve
System as from time to time in effect (and any successor regulation or official interpretation of
such Board), or to purchase or carry any “margin stock,” as defined in Regulations U and X, or any
“margin security,” “marginable OTC stock” or “foreign margin stock” within the meaning of
Regulation T, U or X.

          (l) Retail Stores. Open any additional retail stores during the period from the date hereof
through the Termination Date; provided however, that the Companies may open full time stores so
long as not more than twenty-five (25) such stores are open at any time.

          (m) Fiscal Year. Change the fiscal year of Parent or any of its Subsidiaries.

     7.5. Licensor Consent Letters. To the extent not received by the Agent prior to the
Closing Date, the Companies shall cause to be delivered to the Agent, reasonably promptly after any
request therefor by the Agent, licensor consent letters from each licensor listed on Schedule 7.5,
each in substantially the form of Exhibit 7.5 hereof, with such modifications as such licensors
shall request to the extent such modifications are acceptable to the Agent. The foregoing shall not
affect the Agent’s rights under the definition of Eligible Inventory or under Section 7.4(l). In
the event that any such licensor consent is not obtained, the Agent may, at its option, reduce
Eligible Inventory by up to the gross amount of the Companies’ Inventory related to such unobtained
licensor consent.

     7.6. Landlord Waivers. To the extent not received by the Agent prior to the Closing
Date, the Companies shall cause to be delivered to the Agent, reasonably promptly after any request
therefor by the Agent, waiver letters from each landlord listed on Schedule 7.6, each in
substantially the form of Exhibit 7.6 hereof, with such modifications as such landlords shall
request to the extent such modifications are acceptable to Agent. In the event that any such
landlord waiver is not obtained, the Agent may, at its option, reduce Eligible Inventory by up to
the gross amount of the Companies’ Inventory related to such unobtained landlord waiver.

60

 

     7.7. Excluded Subsidiaries. Permit any Excluded Subsidiary to (x) own any assets
or conduct any business or (y) accept any loan or advance from, or investment by, any Company or
any Guarantor or any Subsidiary thereof.

     7.8. Foreign Subsidiaries. Directly or indirectly, make any loan, advance or
investment in, or transfer any assets to, any Subsidiary that is not a Company or a Guarantor
(other than working capital advances and letters of credit provided by any Company in the ordinary
course of the Company’s business in respect of trade accounts payable, Capitalized Lease
Obligations and rental obligations of such Subsidiary to the extent consistent with the
Companies’ and such Subsidiary’s past practices) except to the extent the total outstanding
amount thereof, together with the aggregate sum of other advances and investments by the Companies
in Subsidiaries of Parent organized outside of the United States of America, does not exceed
$5,000,000.

SECTION 8. INTEREST, FEES AND EXPENSES

     8.1. Interest. Interest on the outstanding principal balance of the Revolving Loans
that are Chase Bank Rate Loans shall be due and payable monthly on the first day of each month and
shall accrue at a rate per annum equal to the Applicable Margin plus the Chase Bank Rate on
the average net principal balance of such Revolving Loans at the close of each day during the
immediately preceding month, as reflected by CIT’s System. On each Revolving Loan that is a LIBOR
Loan, interest shall be due and payable on the LIBOR Interest Payment Date and shall accrue at a
rate per annum equal to the Applicable Margin plus the applicable LIBOR on the outstanding
principal balance of such LIBOR Loan. In the event of any change in said Chase Bank Rate, the rate
set forth in the first sentence of this Section 8.1 shall change, effective as of the first
day of the month following the date of such change, so as to remain equal to the Applicable Margin
plus the new Chase Bank Rate. All interest rates shall be calculated based on a 360-day year and
actual days elapsed. Unless the Company has received forms or other documents reasonably
satisfactory to it from Lenders that are not organized under the laws of the United States or any
State thereof (each such Lender, a “Foreign Lender”) indicating that payments to such Foreign
Lender under a Revolving Loan are not subject to United States withholding tax, the Company shall
withhold such United States withholding tax from such payments to such Foreign Lender at the
applicable statutory rate.

     8.2. Default Interest Rate. Upon the occurrence of an Event of Default, (a)
provided that the Agent has given the Companies written notice of such Event of Default
(other than an Event of Default described in Section 10.1(d) of this Financing Agreement,
for which no written notice shall be required), all Obligations may, at the election of the Agent
or the Required Lenders, bear interest at the Default Rate of Interest until such Event of Default
is waived, and (b) at the Agent’s or the Required Lenders’ election at any time thereafter,
interest on each outstanding LIBOR Loan shall be due and payable on the first day of each month,
notwithstanding the Interest Period with respect thereto.

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     8.3. Fees and Expenses Relating to Letters of Credit, Bankers Acceptances, Steamship
Guarantees and Airway Releases.

          (a) Letter of Credit Guaranty Fee and Bankers Acceptance Fee. In consideration of the issuance
of any Letter of Credit Guaranty by the Agent or other assistance of the Agent and the Lenders in
obtaining Letters of Credit, Bankers Acceptances, Steamship Guarantees and/or Airway Releases
pursuant to Section 5 hereof, the Companies agree to pay to the Agent, for the ratable
benefit of the Lenders (based upon their respective Pro Rata Percentages), a Letter of Credit
Guaranty Fee equal to the Applicable Margin on the face amount of each Letter of Credit (such
Letter of Credit Guaranty Fee to be paid at a per annum rate in advance with respect to standby
Letters of Credit and on the date of issuance of documentary Letters of Credit) and a Bankers
Acceptance Fee, Steamship Guarantee Fee and/or Airway Release Fee, in each case equal to the
Applicable Margin per annum on the face amount of each Bankers Acceptance, Steamship Guarantee or
Airway Release, as the case may be (such Bankers Acceptance Fee, Steamship Guarantee Fee and/or
Airway Release Fee to be paid at a per annum rate in advance). All Letter of Credit Guaranty Fees,
Bankers Acceptance Fees, Steamship Guarantee Fees and/or Airway Release Fees shall be due and
payable on the date of issuance and each date of renewal of the applicable Letter of Credit,
Bankers Acceptance, Steamship Guarantee and/or Airway Release.

          (b) Charges of Issuing Bank. The Companies agree to reimburse the Agent for any and all
charges, fees, commissions, costs and expenses charged to the Agent for any Company’s account by an
Issuing Bank in
connection with, or arising out of, Letters of Credit or out of transactions relating thereto,
when charged to or paid by the Agent, or as may be due upon any termination of this Financing
Agreement.

     8.4. Out-of-Pocket Expenses. The Companies agree to reimburse the Agent and the
Lenders for all Out-of-Pocket Expenses when charged to or paid by the Agent or the Lenders.

     8.5. Line of Credit Fee; Charging of Interest and Fees. On the first day of each
month, commencing on May 1, 2008, (a) the Companies agree to pay to the Agent, for the ratable
benefit of the Lenders (based upon their respective Pro Rata Percentages), the Line of Credit Fee,
and (b) the Agent shall charge the Companies for interest on Chase Bank Rate Loans at the rate set
forth in Section 8.1 (or Section 8.2, if applicable) hereof for the immediately
preceding month. The Agent shall charge the Companies for interest on LIBOR Loans at the rate set
forth in Section 8.1 (or Section 8.2, if applicable) hereof on the applicable LIBOR
Interest Payment Date for the immediately preceding Interest Period.

     8.6. Intentionally Omitted.

     8.7. Fee Letter. The Companies agree to pay all fees and other amounts due under the
Fee Letter pursuant to the terms of the Fee Letter.

     8.8. Standard Operational Fees. In addition to fees payable pursuant to the Fee
Letter, the Administrative Management Fee and all Out-of-Pocket Expenses incurred by the Agent in
connection with any action taken under Section 7.2(a) hereof (but without duplication), the
Companies agree to pay to the Agent, for its own account, (a) all Documentation Fees, (b) the
Agent’s standard charges for any employee of the Agent used to conduct any of the examinations,
verifications, inspections, physical counts and other valuations described in Section
7.2(a) hereof (currently $1,000 per person, per day; provided, however, that
unless an

62

 

Event of Default has occurred which is then continuing, the Companies shall not be required to
pay for more than one field examination during any calendar year) and (c) the Agent’s standard
charges for each wire transfer made by the Agent to or for the benefit of the Companies and for
Dunn and Bradstreet searches conducted by the Agent for the any Company’s account, provided
that such standard charges may be increased by the Agent from time to time. Such charges shall be
due and payable in accordance with the Agent’s standard practices, as in effect from time to time.

     8.9. LIBOR Loans.

          (a) Conditions Applicable to LIBOR Loans. The Companies may elect to use LIBOR as to any
Revolving Loans, convert any Chase Bank Rate Loan to a new LIBOR Loan or continue any existing
LIBOR Loan as a new LIBOR Loan on the last day of the Interest Period with respect to such existing
LIBOR Loan, so long as:

               (i) no Default or Event of Default shall have occurred and remain outstanding on the date on
which such new LIBOR Loan is requested and on the first day of the Interest Period for such new
LIBOR Loan;

               (ii) the Funds Administrator requests the new LIBOR Loan no later than three (3) Business Days
preceding the first day of the Interest Period for such new LIBOR Loan (or three (3) Business Days
prior to the expiration of any Interest Period, in the case of a continuation of an existing LIBOR
Loan);

               (iii) if the Agent requests written confirmation of any new LIBOR Loan from the Funds
Administrator, the Funds Administrator shall have signed and returned to the Agent any such
confirmation on or prior to the first day of the Interest Period for such new LIBOR Loan; and

               (iv) with respect to the Interest Period selected by the Companies for such new LIBOR Loan,
(x) either (1) JPMorgan Chase Bank provides a LIBOR quote for such Interest Period or the Agent
otherwise determines the LIBOR for such Interest Period, as provided in the definition of LIBOR, or
(2) the LIBOR for such Interest Period as quoted by JPMorgan Chase Bank or as determined by the
Agent adequately and fairly reflects the cost of maintaining or funding the Lenders’ loans bearing
interest at LIBOR for such Interest Period, and (y) such Interest Period ends on or before the
Termination Date.

     Any LIBOR election must be for at least $5,000,000 and if greater, in integral multiples of
$1,000,000, and there shall be no more than ten (10) LIBOR Loans outstanding at one time. Elections
for LIBOR Loans shall be irrevocable once made. If any condition for a LIBOR election is not
satisfied, then the requested new loan (or continuation of an existing LIBOR Loan) shall be made to
the Companies as a Chase Bank Rate Loan.

          (b) Restrictions Affecting the Making or Funding of LIBOR Loans. Notwithstanding any other
provision of this Financing Agreement to the contrary, if any law, regulation, treaty or directive,
or any amendment thereto or change in the interpretation or application thereof, shall make it
unlawful for any Lender to make or maintain any LIBOR Loan, then (x) such LIBOR Loan shall convert
automatically to a Chase Bank Rate Loan at the end of

63

 

the applicable Interest Period, or such earlier date as may be required by such law,
regulation, treaty or directive, and (y) the obligation of the Agent or the Lenders thereafter to
make or continue LIBOR Loans and to convert Chase Bank Rate Loans into LIBOR Loans hereunder shall
be suspended until the Agent determines that it is no longer unlawful for any Lender to make and
maintain LIBOR Loans as contemplated herein. In addition, in the event that, by reason of any
Regulatory Change, any Lender either (x) incurs any material additional costs based on or measured
by the excess above a specified level of the amount of a category of deposits or other liabilities
of such Lender which includes deposits by reference to which the interest rate on LIBOR Loans is
determined hereunder, or a category of extensions of credit or other assets of such Lender which
includes LIBOR Loans, or (y) becomes subject to any material restrictions on the amount of such a
category of liabilities or assets which such Lender may hold, then if the Agent so elects by notice
to the Companies, the obligations of the Agent and the Lenders thereafter to make or continue LIBOR
Loans and to convert Chase Bank Rate Loans into LIBOR Loans hereunder shall be suspended until such
Regulatory Change ceases to be in effect.

          (c) Inability to Determine LIBOR. Notwithstanding any other provision of this Financing
Agreement to the contrary, if the Agent determines in the exercise of its reasonable business
judgment (which determination shall be conclusive and binding upon each Company) that by reason of
circumstances affecting the interbank LIBOR market, adequate and reasonable means do not exist for
ascertaining LIBOR applicable to an Interest Period with respect to any election of a new LIBOR
Loan, the Agent shall give written notice of such determination to the Companies prior to the
effective date of such election. Upon receipt of such notice, the Funds Administrator may cancel
the Funds Administrator’s request for such new LIBOR Loan, in which case the requested LIBOR Loan
shall be made as a Chase Bank Rate Loan. Until such notice has been withdrawn by the Agent, the
obligations of the Agent and the Lenders thereafter to make or continue LIBOR Loans and to convert
Chase Bank Rate Loans into LIBOR Loans hereunder shall be suspended until the Agent determines that
adequate and reasonable means again exist for ascertaining LIBOR applicable to an Interest Period
with respect to any election of a new LIBOR Loan.

          (d) Compensation for Costs. The Companies hereby agree to pay to the Agent, for the benefit of
the Lenders, on demand, any additional amounts necessary to compensate the Lenders for any costs
incurred by the Lenders in making any conversions from LIBOR Loans to Chase Bank Rate Loans in
accordance with this Section 8.9, including, without limitation, breakage costs provided
for in Section 8.10 of this Financing Agreement.

          (e) Loan Participants. For purposes of this Section 8.9, the term “Lender” shall
include any financial institution that purchases from any Lender a participation in the loans made
by such Lender to the Companies hereunder.

If the Companies fail to select a valid Interest Period as of the last day of the Interest Period
with respect to an existing LIBOR Loan, then the existing LIBOR Loan shall be continued as a Chase
Bank Rate Loan to the Companies as of the end of such Interest Period.

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     8.10. LIBOR Breakage Costs and Fees. The Companies shall pay to the Agent for the
account of each Lender, upon the request of such Lender through the Agent, such amount or amounts
as shall compensate such Lender for any loss (including loss of profit), cost or expense incurred
by such Lender (as reasonably determined by such Lender) as a result of:

          (a) any payment or prepayment or conversion of a LIBOR Loan held by such Lender on a date
other than the last day of an Interest Period for such LIBOR Loan; or

          (b) any failure by the Companies to borrow a LIBOR Loan held by such Lender on the date for
such borrowing specified in the relevant request to Agent; such compensation to include, without
limitation, an amount equal to the excess, if any, of (i) the amount of interest which would have
accrued on the amount so paid, prepaid or converted or not borrowed for the period from the date of
such payment, prepayment or conversion or failure to borrow, convert or prepay to the last day of
the then current Interest Period for such LIBOR Loan (or, in the case of a failure to borrow, the
Interest Period for such LIBOR Loan which would have commenced on the date of such failure to
borrow) at the applicable rate of interest for such LIBOR Loan provided for herein over (ii) the
amount of interest (as reasonably determined by such Lender) such Lender would have bid in the
London interbank market for Dollar deposits of amounts comparable to such principal amount and
maturities comparable to such period.

          (c) The indemnification provisions of this Section 8.10 shall survive the termination of this
Financing Agreement and the payment and satisfaction of the Obligations.

     8.11. Early Termination Fee. In the event the Companies terminate the Revolving Line
of Credit or this Financing Agreement on an Early Termination Date, the Early Termination Fee shall
be due and payable in full to Agent for the pro rata benefit of Lenders with Commitments on the
date of termination.

     8.12. Capital Adequacy. In the event that any Lender, subsequent to the Closing Date,
determines in the exercise of its reasonable business judgment that (x) any change in applicable
law, rule, regulation or guideline regarding capital adequacy, or (y) any change in the
interpretation or administration thereof, or (z) compliance by such Lender with any new request or
directive regarding capital adequacy (whether or not having the force of law) of any central bank
or other governmental or regulatory authority, has or would have the effect of reducing the rate of
return on such Lender’s capital as a consequence of its obligations hereunder to a level below that
which such Lender could have achieved but for such change or compliance (taking into consideration
such Lender’s policies with respect to capital adequacy) by an amount deemed material by such
Lender in the exercise of its reasonable business judgment, the Companies agree to pay to such
Lender, no later than five (5) days following demand by such Lender, such additional amount or
amounts as will compensate such Lender for such reduction in rate of return. In determining such
amount or amounts, such Lender may use any reasonable averaging or attribution methods. The
protection of this Section 8.12 shall be available to any Lender regardless of any possible
contention of invalidity or inapplicability with respect to the applicable law, regulation or
condition. A certificate of a Lender setting forth such amount or amounts as shall be necessary to
compensate such Lender with respect to this Section 8.12 and the calculation thereof, when
delivered to the Companies, shall be conclusive and binding on each Company absent manifest error.
In the event a Lender exercises its rights pursuant to this Section 8.12, and subsequent
thereto determines that the amounts paid by the Companies

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exceeded the amount which such Lender actually required to compensate such Lender for any
reduction in rate of return on its capital, such excess shall be returned to the Companies by such
Lender. This indemnification shall survive the termination of this Financing Agreement and the
payment and satisfaction of the Obligations.

     8.13. Taxes, Reserves and Other Conditions. In the event that any applicable law,
treaty or governmental regulation, or any change therein or in the interpretation or application
thereof, or compliance by any Lender with any new request or directive (whether or not having the
force of law) of any central bank or other governmental or regulatory authority, shall:

          (a) subject such Lender to any Non-Excluded Taxes with respect to this Financing Agreement or
with respect to principal, fees, interest or any other amount payable hereunder or under any other
Loan Documents;

          (b) impose or require any reserve, special deposit, assessment or similar requirement against
assets held by, or deposits in or for the account of, advances or loans by, or other credit
extended by such Lender by reason of or in respect to this Financing Agreement and the Loan
Documents, including (without limitation) pursuant to Regulation D of the Board of Governors of the
Federal Reserve System; or

          (c) impose on such Lender any other condition with respect to this Financing Agreement or any
other document;

and the result of any of the foregoing is to (i) increase the cost to such Lender of making,
renewing or maintaining such Lender’s loans hereunder by an amount deemed material by such Lender
in the exercise of its reasonable business judgment, or (ii) reduce the amount of any payment
(whether of principal, interest or otherwise) in respect of any of the loans made hereunder by an
amount that such Lender deems to be material in the exercise of its reasonable business judgment,
the Companies agrees to pay to such Lender, no later than five (5) days following demand by such
Lender, such additional amount or amounts as will compensate such Lender for such increase in cost
or reduction in payment, as the case may be. A certificate of any Lender setting forth such amount
or amounts as shall be necessary to compensate such Lender with respect to this Section
8.13 and the calculation thereof, when delivered to the Companies, shall be conclusive and
binding on the Companies absent manifest error. In the event any Lender exercises its rights
pursuant to this Section 8.13, and subsequent thereto determines that the amounts paid by
the Companies in whole or in part exceeded the amount which such Lender actually required to
compensate such Lender for any increase in cost or reduction in payment, such excess shall be
returned to the Companies by such Lender. This indemnification shall survive the termination of
this Financing Agreement and the payment and satisfaction of the Obligations.

     8.14. Authority to Charge Revolving Loan Account. The Companies hereby authorize the
Agent to charge the Revolving Loan Account as a Revolving Loan in the amount of all payments due
under this Section 8 as such payments become due. Any amount charged to the Revolving Loan
Account shall be deemed a Revolving Loan and a Chase Bank Rate Loan hereunder and shall bear
interest at the rate provided in Section 8.1 (or Section 8.2, if applicable) of
this Financing Agreement. The Companies confirm that any charges which the Agent may make to the
Revolving Loan Account as provided herein will be made as an accommodation to the Companies and
solely at the Agent’s discretion.

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SECTION 9. POWERS

     9.1. Authority. The Companies hereby authorize the Agent, or any person or agent which
the Agent may designate, at the Companies’ cost and expense, to exercise all of the following
powers, which authority shall be irrevocable until the termination of this Financing Agreement and
the full and final payment and satisfaction of the Obligations:

          (a) To receive, take, endorse, sign, assign and deliver, all in the name of the Agent or the
Companies (or any of them), any and all checks, notes, drafts, and other documents or instruments
relating to the Collateral;

          (b) To receive, open and dispose of all mail addressed to the Companies (or any of them), and
to notify postal authorities to change the address for delivery thereof to such address as the
Agent may designate;

          (c) To request from customers indebted on Accounts at any time, in the name of the Agent,
information concerning the amounts owing on the Accounts;

          (d) To request from customers indebted on Accounts at any time, in the name of the Companies
(or any of them), any certified public accountant designated by the Agent or any other designee of
the Agent, information concerning the amounts owing on the Accounts;

          (e) To transmit to customers indebted on Accounts notice of the Agent’s interest therein and
to notify customers indebted on Accounts to make payment directly to the Agent for the Companies’
account; and

          (f) To take or bring, in the name of the Agent, the Lenders or the Companies (or any of them),
all steps, actions, suits or proceedings deemed by the Agent necessary or desirable to enforce or
effect collection of the Accounts.

     9.2. Limitations on Exercise. Notwithstanding any other provision of this Financing
Agreement to the contrary, the powers set forth in Sections 9.1(b), (c),
(e) and (f) may only be exercised if an Event of Default shall have occurred and
remain outstanding.

SECTION 10. EVENTS OF DEFAULT AND REMEDIES

     10.1. Events of Default. Each of the following events shall constitute an “Event of
Default” under this Agreement:

          (a) the failure of the Companies to pay any (i) principal of any of the Obligations when due,
or (ii) any of the other Obligations within five (5) Business Days of the due date thereof,
provided that nothing contained herein shall prohibit the Agent from charging such amounts
to the Revolving Loan Account as a Revolving Loan on the due date thereof;

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          (b) the cessation of the business of any Company, any Guarantor or any Subsidiary of a
Company, or the calling of a meeting of the creditors of any Company, any Guarantor or any
Subsidiary of a Company for purposes of compromising its debts and obligations;

          (c) the failure of any Company, any Guarantor or any Subsidiary of a Company to generally meet
its debts as those debts mature;

          (d) (i) the commencement by any Company, any Guarantor or any Subsidiary of a Company of any
bankruptcy, insolvency, arrangement, reorganization, receivership, assignment for the benefit of
creditors or similar proceedings under any federal or state law; or (ii) the commencement against
any Company, any Guarantor or any Subsidiary of a Company of any bankruptcy, insolvency,
arrangement, reorganization, receivership, assignment for the benefit of creditors or similar
proceeding under any federal or state law by creditors of any of them, but only if such proceeding
is not contested by such Company, any Guarantor or any Subsidiary of such Company, as applicable,
within ten (10) days and not dismissed or vacated within forty-five (45) days of commencement, or
any of the actions or relief sought in any such proceeding shall occur or be authorized by such
Company, any Guarantor or any Subsidiary of a Company;

          (e) the breach or violation by any Company of any warranty, representation or covenant
contained in this Financing Agreement (other than Sections 7.5 and 7.6 and those referred to in
Section 10.1(e) below), provided that such breach or violation shall not be deemed
to be an Event of Default unless such Company fails to cure such
breach or violation to the Agent’s reasonable satisfaction within fifteen (15) days from the
date of such breach or violation;

          (f) the breach or violation by any Company of any warranty, representation or covenant
contained in Sections 3.2, 6.3, 6.4, 6.5, 6.6(b), 7.2(c), 7.2(d), 7.2(g)(i), 7.3, 7.4, 7.7 and 7.8;

          (g) any Company shall (i) engage in any non-exempt “prohibited transaction” as defined in
ERISA, (ii) incur any “accumulated funding deficiency” as defined in ERISA, (iii) incur any
“reportable event” as defined in ERISA for which notice is not waived, (iv) terminate any “plan”
subject to Title IV of ERISA or (v) become involved in any proceeding in which the Pension Benefit
Guaranty Corporation shall seek appointment, or is appointed, as trustee or administrator of any
“plan” subject to Title IV of ERISA, and with respect this Section 10.1(g), such event or
condition (x) remains uncured for a period of thirty (30) days from date of occurrence and (y)
could, in the Agent’s reasonable business judgment, subject any Company to any tax, penalty or
other liability having a Material Adverse Effect;

          (h) the occurrence of any default or event of default (after giving effect to any applicable
grace or cure period) under any of the other Loan Documents, or any of the other Loan Documents
ceases to be valid, binding and enforceable in accordance with its terms;

          (i) the occurrence of any default or event of default (after giving effect to any applicable
grace or cure period) under any instrument or agreement evidencing or governing Indebtedness of the
Companies (or any of them) having a principal amount in excess of $5,000,000 individually or in the
aggregate, taken with all other defaults under similar agreements;

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          (j) a final judgment for the payment of money in excess of $5,000,000 individually or in
the aggregate, taken with all other judgments, shall be rendered against the Companies (or any one
of them) or any Guarantor (other than a judgment as to which a financially sound and reputable
insurance company has acknowledged coverage of such claim in writing), and either (i) within thirty
(30) days after the entry of such judgment, shall not have been discharged or stayed pending (or if
stayed pending appeal, shall not have been discharged within thirty (30) days after the entry of a
final order of affirmance on appeal), or (ii) enforcement proceedings shall be commenced by any
holder of such judgment;

          (k) Morris Goldfarb (or, in the event of his death, his estate, legal representative or heirs)
shall at any time beneficially own less than 10% in the aggregate of all of the issued and
outstanding shares of capital stock of the Parent having ordinary voting rights for the election of
directors;

          (l) any Guarantor shall attempt to terminate its Guaranty or deny that such Guarantor has any
liability thereunder, or any Guaranty shall be declared null and void and of no further force and
effect; or

          (m) there shall have occurred a material adverse change in the financial condition or business
prospects of the Companies, the Parent and/or their respective Subsidiaries, taken as a whole,
since the closing date hereof.

     10.2. Remedies With Respect to Outstanding Loans. Upon the occurrence of a Default or
an Event of Default, at the option of the Agent or the Required Lenders, all loans, advances and
extensions of credit provided for in Sections 3 and 5 of this Financing Agreement
thereafter shall be made in the Agent’s and the Lenders’ discretion, and the obligation of the
Agent and the Lenders to make Revolving Loans, and to assist the Companies in opening Letters of
Credit, Bankers Acceptances, Steamship Guarantees and Airway Releases shall cease unless such
Default is cured to the satisfaction of the Required Lenders or such Event of Default is waived in
accordance herewith. In addition, upon the occurrence of an Event of Default, the Agent may, at its
option, and the Agent shall, upon the
request of the Required Lenders, (a) declare all Obligations immediately due and payable, (b)
charge the Companies the Default Rate of Interest on all then outstanding or thereafter incurred
Obligations in lieu of the interest provided for in Sections 8.1 of this Financing
Agreement, provided that the Agent has given the Companies written notice of such Event of
Default if required by Section 8.2, and (c) immediately terminate this Financing Agreement
upon notice to the Companies. Notwithstanding the foregoing, (x) the Agent’s and the Lenders’
commitments to make loans, advances and extensions of credit provided for in Sections 3 and
5 of this Financing Agreement automatically shall terminate without any declaration, notice
or demand by the Agent or the Lenders upon the commencement of any proceeding described in clause
(ii) of Section 10.1(d), and (y) this Financing Agreement automatically shall terminate and
all Obligations shall become due and payable immediately without any declaration, notice or demand
by the Agent or the Lenders, upon the commencement of any proceeding described in clause (i) of
Section 10.1(d) or the occurrence of an Event of Default described in clause (ii) of
Section 10.1(d). The exercise of any option is not exclusive of any other option that may
be exercised at any time by the Agent or the Lenders.

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     10.3. Remedies With Respect to Collateral. Immediately after the occurrence of an
Event of Default, the Agent may, at its option, and the Agent shall, upon the request of the
Required Lenders, to the extent permitted by applicable law: (a) remove from any premises where
same may be located any and all books and records, computers, electronic media and software
programs associated with any Collateral (including electronic records, contracts and signatures
pertaining thereto), documents, instruments and files, and any receptacles or cabinets containing
same, relating to the Accounts, and the Agent may use, at the Companies’ expense, such of the
Companies’ personnel, supplies or space at any Company’s place of business or otherwise, as may be
necessary to properly administer and control the Accounts or the handling of collections and
realizations thereon; (b) bring suit, in the name of the Companies (or any of them), the Lenders or
the Agent on behalf of the Lenders, and generally shall have all other rights respecting the
Accounts, including, without limitation, the right to (i) accelerate or extend the time of payment,
(ii) settle, compromise, release in whole or in part any amounts owing on any Accounts and (iii)
issue credits in the name of the Companies (or any of them) or the Agent; (c) sell, assign and
deliver the Collateral and any returned, reclaimed or repossessed merchandise, with or without
advertisement, at public or private sale, for cash, on credit or otherwise, at the Agent’s sole
option and discretion, and the Agent, on behalf of the Lenders, may bid or become a purchaser at
any such sale, free from any right of redemption, which right is hereby expressly waived by the
Companies; (d) foreclose the Agent’s security interests in the Collateral by any available judicial
procedure, or take possession of any or all of the Collateral without judicial process, and to
enter any premises where any Collateral may be located for the purpose of taking possession of or
removing the same; and (e) exercise any other rights and remedies provided in law, in equity, by
contract or otherwise. The Agent shall have the right, without notice or advertisement, to sell,
lease, or otherwise dispose of all or any part of the Collateral whether in its then condition or
after further preparation or processing, in the name of the Companies (or any of them) or the
Agent, on behalf of the Lenders, or in the name of such other party as the Agent may designate,
either at public or private sale or at any broker’s board, in lots or in bulk, for cash or for
credit, with or without warranties or representations (including, without limitation, warranties of
title, possession, quiet enjoyment and the like), and upon such other terms and conditions as the
Agent in its sole discretion may deem advisable, and the Agent shall have the right to purchase at
any such sale on behalf of the Lenders. If any Inventory and Equipment shall require rebuilding,
repairing, maintenance or preparation, the Agent shall have the right, at its option, to do such of
the aforesaid as is necessary, for the purpose of putting the Inventory and Equipment in such
saleable form as the Agent shall deem appropriate. The Companies agree, at the request of the
Agent, to assemble the Inventory and Equipment, and to make it available to the Agent at premises
of the Companies or elsewhere and to make available to the Agent the premises and facilities of the
Companies for the purpose of the Agent’s taking possession of, removing or putting the Inventory
and Equipment in saleable form. If notice of intended disposition of any Collateral is required by
law, it is agreed that ten (10) days notice shall constitute reasonable notification and full
compliance with the law. The net cash proceeds resulting from the Agent’s exercise of any of the
foregoing rights (after deducting all Out-of-Pocket Expenses relating thereto) shall be applied by
the Agent to the payment of the Obligations in the order set
forth in Section 10.4 hereof, and the Companies shall remain liable to the Agent and
the Lenders for any deficiencies, and the Agent in turn agrees to remit to the

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Companies or their successors or assigns, any surplus resulting therefrom. The enumeration of
the foregoing rights is not intended to be exhaustive and the exercise of any right shall not
preclude the exercise of any other right of the Agent or the Lenders under applicable law or the
other Loan Documents, all of which shall be cumulative.

     10.4. Application of Proceeds. The Agent agrees to apply the net cash proceeds
resulting from the Agent’s exercise of any of the foregoing rights (after deducting all
Out-of-Pocket Expenses relating thereto) to the payment of the Obligations in the following order:

          (a) first, to all unpaid Out of Pocket Expenses;

          (b) second, to all accrued and unpaid fees owed to the Agent and the Lenders;

          (c) third, to accrued and unpaid interest on the Obligations (other than with respect to
Banking Services Obligations and Swap Contracts, and excluding Ledger Debt);

          (d) fourth, to the unpaid principal amount of the Obligations (other than with respect to
Banking Services Obligations and Swap Contracts, and excluding Ledger Debt);

          (e) fifth, to provide cash collateral for any outstanding Letters of Credit, Bankers
Acceptances, Steamship Guarantees or Airway Releases;

          (f) sixth, to pay any amounts owed to the Agent or any of the Lenders with respect to Banking
Services Obligations and Swap Contracts; and

          (g) seventh, to any unpaid Obligations not described in clauses (a) through (f) above.

     10.5. General Indemnity. In addition to the Companies’ agreement to reimburse the
Agent and the Lenders for Out-of-Pocket Expenses, but without duplication, the Companies hereby
agree to indemnify the Agent and the Lenders, and each of their respective officers, directors,
employees, attorneys and agents (each, an “Indemnified Party”) from, and to defend and hold each
Indemnified Party harmless against, any and all losses, liabilities, obligations, claims, actions,
judgments, suits, damages, penalties, costs, fees, expenses (including reasonable attorney’s fees)
of any kind or nature which at any time may be imposed on, incurred by, or asserted against, any
Indemnified Party:

          (a) as a result of the Agent’s or the Lenders, exercise of (or failure to exercise) any of
their respective rights and remedies hereunder, including, without limitation, (i) any sale or
transfer of the Collateral, (ii) the preservation, repair, maintenance, preparation for sale or
securing of any Collateral, and (iii) the defense of the Agent’s interests in the Collateral
(including the defense of claims brought by the Companies (or any of them) as a
debtor-in-possession or otherwise, any secured or unsecured creditors of the Companies (or any of
them), or any trustee or receiver in bankruptcy);

          (b) as a result of any environmental pollution, hazardous material or environmental clean-up
relating to the Real Estate, the Companies’ operation and use of the Real Estate, and the
Companies’ off-site disposal practices;

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          (c) arising from or relating to (i) the maintenance and operation of any Depository
Account, (ii) any Depository Account Control Agreements and (iii) any action taken (or failure to
act) by any Indemnified Party with respect thereto;

          (d) in connection with any regulatory investigation or proceeding by any regulatory authority
or agency having jurisdiction over the Companies (or any of them); and

          (e) otherwise relating to or arising out of the transactions contemplated by this Financing
Agreement and the other Loan Documents, or any action taken (or failure to act) by any Indemnified
Party with respect thereto;

provided that an Indemnified Party’s conduct in connection with the any of the foregoing
matters does not constitute gross negligence or willful misconduct, as finally determined by a
court of competent jurisdiction. This indemnification shall survive the termination of this
Financing Agreement and the payment and satisfaction of the Obligations. The Agent may from time to
time establish Availability Reserves with respect to this indemnity as the Agent may deem advisable
in the exercise of its reasonable business judgment, and upon termination of this Financing
Agreement, the Agent may hold such reserves as cash reserves as security for this indemnity.

SECTION 11. TERMINATION

     The Companies, or any one of them, may terminate this Financing Agreement at any time prior to
the Termination Date upon thirty (30) days prior written notice to the Agent (a copy of which
notice the Agent shall promptly provide to the Lenders), provided that the Companies pay to the
Agent, for the benefit of the Lenders, any Early Termination Fee due and payable hereunder on the
date of termination. A termination by one Company shall be deemed to be a termination by all
Companies. All Obligations shall become due and payable in full on the date of any termination
hereunder and, pending a final accounting of the Obligations, the Agent may withhold any credit
balances in the Revolving Loan Account (unless supplied with an indemnity satisfactory to the
Agent), and/or require the Companies to deliver to the Agent sufficient Cash Equivalents, in either
case to be held in a Cash Collateral Account to cover any contingent Obligation then outstanding,
including, but not limited to, an amount equal to 110% of the face amount of any outstanding
Letters of Credit, Bankers Acceptances, Steamship Guarantees and Airway Releases. All of the
Agent’s and the Lenders’ rights, liens and security interests granted pursuant to the Loan
Documents shall continue after any termination of this Financing Agreement until all Obligations
have been fully and finally paid and satisfied.

SECTION 12. MISCELLANEOUS

     12.1. Waivers. The Companies hereby waive diligence, demand, presentment, protest and
any notices thereof as well as notices of nonpayment, intent to accelerate and acceleration.
Subject to the provisions of Section 14.10 hereof that expressly relate to waivers
requiring the approval of all Lenders, no waiver of an Event of Default shall be effective unless
such waiver is in writing and signed by the Agent and the Required Lenders. No delay or failure of
the Agent or the Lenders to exercise any right or remedy hereunder, whether before or after the
happening of any Event of Default, shall impair any such right or remedy, or shall operate as a
waiver of

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such right or remedy, or as a waiver of such Event of Default. A waiver on any occasion shall
not be construed as a bar to or waiver of any right or remedy on any future occasion. No single or
partial exercise by the Agent or the Lenders of any right or remedy precludes any other or further
exercise thereof, or precludes any other right or remedy.

     12.2. Entire Agreement; Amendments. This Financing Agreement and the other Loan
Documents: (a) constitute the entire agreement among the Companies, the Agent and/or the Lenders;
(b) supersede any prior agreements (other than the Original Financing Agreement and the Loan
Documents as defined therein, except to the extent each has been amended and restated as
contemplated hereunder); (c) subject to the provisions of Section 14.10 hereof that relate
to matters subject to the approval of all Lenders, may be amended only by a writing signed by the
Companies, the Agent and the Required Lenders; and (d) shall bind and benefit the Companies, the
Agent, the Lenders and their respective successors and assigns. Should the provisions of any other
Loan Document conflict with the provisions of this Financing Agreement, the provisions of this
Financing Agreement shall apply and govern.

     12.3. Usury Limit. In no event shall the Companies, upon demand by the Agent for
payment of any indebtedness relating hereto, by acceleration of the maturity thereof, or otherwise,
be obligated to pay interest and fees in excess of the amount permitted by law. Regardless of any
provision herein or in any agreement made in connection herewith, the Agent and the Lenders shall
never be entitled to receive, charge or apply, as interest on any indebtedness relating hereto, any
amount in excess of the maximum amount of interest permissible under applicable law. If the Agent
or the Lenders ever receive, collect or apply any such excess, it shall be deemed a partial
repayment of principal and treated as such. If as a result, the entire principal amount of the
Obligations is paid in full, any remaining excess shall be refunded to the Companies. This
Section 12.3 shall control every other provision of the Financing Agreement, the other Loan
Documents and any other agreement made in connection herewith.

     12.4. Severability. If any provision hereof or of any other Loan Document is held to
be illegal or unenforceable, such provision shall be fully severable, and the remaining provisions
of the applicable agreement shall remain in full force and effect and shall not be affected by such
provision’s severance. Furthermore, in lieu of any such provision, there shall be added
automatically as a part of the applicable agreement a legal and enforceable provision as similar in
terms to the severed provision as may be possible.

     12.5. WAIVER OF JURY TRIAL; SERVICE OF PROCESS. EACH COMPANY, THE AGENT AND THE
LENDERS EACH HEREBY WAIVE ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING ARISING OUT OF
OR RELATING TO THE LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED THEREUNDER. EACH COMPANY HEREBY
IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO SERVICE OF PROCESS BY CERTIFIED OR
REGISTERED MAIL, RETURN RECEIPT REQUESTED. IN NO EVENT WILL THE AGENT OR THE LENDERS BE LIABLE FOR
LOST PROFITS OR OTHER SPECIAL OR CONSEQUENTIAL DAMAGES.

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     12.6. Notices. Except as otherwise herein provided, any notice or other
communication required hereunder shall be in writing (messages sent by e-mail or other electronic
transmission (other than by telecopier) shall not constitute a writing, however any signature on a
document or other writing that is transmitted by e-mail or telecopier shall constitute a valid
signature for purposes hereof), and shall be deemed to have been validly served, given or delivered
when received by the recipient if hand delivered, sent by commercial overnight courier or sent by
facsimile, or three (3) Business Days after deposit in the United States mail, with proper first
class postage prepaid and addressed to the party to be notified as follows:

          (a) if to the Agent, at:

The CIT Group/Commercial Services, Inc.

11 West 42nd Street

New York, New York 10036

Attention: Regional Credit Manager

Facsimile: (212) 461-5342;

with a copy to:

Hahn & Hessen LLP

488 Madison Avenue

New York, New York 10022

Attention: Leonard Lee Podair

Facsimile: (212) 478-7400;

          (b) if to the Companies at:

G-III Leather Fashions, Inc.

512 Seventh Avenue

New York, New York 10018

Attention: Neal Nackman

Facsimile: (212) 719-0921

with a copy to:

Fulbright & Jaworski L.L.P.

666 Fifth Avenue

New York, New York 10103

Attention: Neil Gold

Facsimile: (212) 318-3400;

          (c) if to any Lender, at its address set forth below its signature to this Financing Agreement
or its address specified in the Assignment and Transfer Agreement executed by such Lender; or

          (d) to such other address as any party may designate for itself by like notice.

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     12.7. Joint and Several Liability.

          (a) Joint and Several Liability. All Revolving Loans made to the Companies shall be deemed
jointly funded to, and received by, the Companies. Each Company jointly and severally agrees to
pay, and shall be jointly and severally liable for the payment and performance of, all Obligations.
Each Company acknowledges and agrees that the joint and several liability of the Companies is
provided as an inducement to the Agent and the Lenders to provide loans and other financial
accommodations to the Companies, and that each such loan or other financial accommodation shall be
deemed to have been done or extended by the Agent and the Lenders in consideration of, and in
reliance upon, the joint and several liability of the Companies. The joint and several liability of
each Company hereunder is absolute, unconditional and continuing, regardless of the validity or
enforceability of any of the Obligations, or the fact that a security interest or lien in any
Collateral may not be enforceable or subject to equities or defenses or prior claims in favor of
others, or may be invalid or defective in any way and for any reason. Each Company hereby waives:
(i) all notices to which such Company may be entitled as a co-obligor with respect to the
Obligations, including, without limitation, notice of (x) acceptance of this Financing Agreement,
(y) the making of loans or other financial accommodations under this Financing Agreement, or the
creation or existence of the Obligations, and (z) presentment, demand, protest, notice of protest
and notice of non-payment; and (ii) all defenses based on (w) any modification (or series of
modifications) of this Financing Agreement or the other Loan Documents that may create a
substituted contract, or that may fundamentally alter the risks imposed on such Company hereunder,
(x) the release of any other Company from its duties this Financing Agreement or the other Loan
Documents, or the extension of the time of performance of any other Company’s duties hereunder or
thereunder, (y) the taking, releasing, impairment or abandonment of any Collateral, or the
settlement, release or
compromise of the Obligations or any other Company’s or Guarantor’s liabilities with respect
to all or any portion of the Obligations, or (z) any other act (or any failure to act) that
fundamentally alters the risks imposed on such Company by virtue of its joint and several liability
hereunder. It is the intent of each Company by this paragraph to waive any and all suretyship
defenses available to such Company with respect to the Obligations, whether or not specifically
enumerated above.

          (b) Subrogation and Contribution Rights. Each Company hereby agrees that until the full and
final payment and satisfaction of the Obligations and the expiration and termination of the
Commitments of the Lenders under this Financing Agreement, such Company will not exercise any
subrogation, contribution or other right or remedy against any other Company or any security for
any of the Obligations arising by reason of such Company’s performance or satisfaction of its joint
and several liability hereunder. In addition, each Company agrees that (i) such Company’s right to
receive any payment of amounts due with respect to such subrogation, contribution or other rights
is subordinated to the full and final payment and satisfaction of the Obligations, and (ii) such
Company agrees not to demand, sue for or otherwise attempt to collect any such payment until the
full and final payment and satisfaction of the Obligations and the expiration and termination of
the Commitments of the Lenders under this Financing Agreement.

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     12.8. CHOICE OF LAW. THE VALIDITY, INTERPRETATION AND ENFORCEMENT OF THIS
FINANCING AGREEMENT AND THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW
YORK, EXCEPT TO THE EXTENT THAT ANY OTHER LOAN DOCUMENT INCLUDES AN EXPRESS ELECTION TO BE GOVERNED
BY THE LAWS OF ANOTHER JURISDICTION.

SECTION 13. AGREEMENTS REGARDING THE LENDERS

     13.1. Copies of Statements and Financial Information. The Agent shall forward to each
Lender a copy of the monthly loan account statement delivered by the Agent to the Companies. In
addition, the Agent agrees to provide the Lenders with copies of all financial statements,
projections and business plans of the Companies and the Guarantors that the Agent receives from the
Companies or their advisors from time to time, without any duty to confirm or verify that such
information is true, correct or complete.

     13.2. Payments of Principal, Interest and Fees. After the Agent’s receipt of, or
charging of, any interest and fees earned under this Financing Agreement, the Agent agrees to remit
promptly to the Lenders its respective Pro Rata Percentages of:

          (a) fees payable by the Companies hereunder, provided that (i) the Lenders shall not
share the fees set forth in Sections 8.7 or 8.8 of this Financing
Agreement, and (ii) each of the Lenders shall share in the fees payable under the Fee Letter in
accordance with their respective express agreements with the Agent; and

          (b) interest paid on the outstanding principal amount of Revolving Loans, calculated based on
the outstanding amount of Revolving Loans advanced by each of the Lenders as of each Settlement
Date during the period for which interest is paid.

     13.3. Defaulting Lender. In the event that any Lender fails to make available to the
Agent such Lender’s applicable Pro Rata Percentage of any borrowing by the Companies on the
Settlement Date in accordance with the provisions of Section 3.1(d) hereof, and the
Companies do not repay to the Agent such Lender’s applicable Pro Rata Percentage of the borrowing
within one (1) Business Day of such Settlement Date, the Agent shall have the right to recover such
Lender’s applicable Pro Rata Percentage of the borrowing directly from such Lender, together with
interest thereon from the Settlement Date at the rate per annum applicable to such borrowing. In
addition, until the Agent recovers such amount, (x) such Lender shall not be entitled to receive
any payments under Section 13.2
hereof, and (y) for purposes of voting on or consenting to other matters with respect to this
Agreement or the other Loan Documents, such Lender’s Commitment shall be deemed to be zero and such
Lender shall not be considered to be a Lender.

     13.4. Participations and Assignments.

          (a) Participations. Upon five (5) days notice to Agent, the Lenders may sell to one or more
Eligible Assignees, participations in the loans and other extensions of credit made and to be made
to the Companies hereunder. The Companies acknowledge that in selling such participations, the
Lenders may grant to participants certain rights to consent to waivers, amendments and other
actions with respect to this Financing Agreement, provided that the consent of any
participant shall be limited solely to matters as to which all Lenders must consent

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under Section 14.10 hereof. Except for the consent rights set forth above, no
participant shall have any rights as a Lender hereunder, and notwithstanding the sale of any
participation by a Lender, such Lender shall remain solely responsible to the other parties hereto
for the performance of such Lender’s obligations hereunder, and the Companies, the Agent and the
other Lenders may continue to deal solely with such Lender with respect to all matters relating to
this Financing Agreement and the transactions contemplated hereby. In addition, all amounts payable
under this Financing Agreement to a Lender which sells a participation in accordance with this
paragraph shall continue to be paid directly to such Lender.

          (b) Assignments. Upon five (5) days notice to Agent, the Lenders may assign all or any portion
of their respective rights and obligations under this Financing Agreement to Eligible Assignees,
provided that (i) the principal amount of loans assigned to any institution shall not be
less than $5,000,000, and (ii) the Companies shall pay to the Agent an assignment processing and
recording fee of Five Thousand Dollars ($5,000.00) for the Agent’s own account. Each assignment of
a Commitment hereunder must be made pursuant to an Assignment and Transfer Agreement. From and
after the effective date of an Assignment and Transfer Agreement, (i) the assignee thereunder shall
become a party to this Financing Agreement and, to the extent that rights and obligations hereunder
have been assigned to such assignee pursuant to such assignment, shall have all rights and
obligations of a Lender hereunder, and (ii) the assigning Lender, to the extent that rights and
obligations hereunder have been assigned by such Lender pursuant to such assignment, shall
relinquish its rights and be released from its obligations under this Financing Agreement.

          (c) Cooperation of Companies and Guarantors. If necessary, the Companies and the Guarantors
agree to (i) execute any documents (including new Promissory Notes) reasonably required to
effectuate and acknowledge each assignment of a Commitment made pursuant to an Assignment and
Transfer Agreement, (ii) make the Companies’ management available to meet with the Agent and
prospective participants and assignees of Commitments and (iii) assist the Agent or the Lenders in
the preparation of information relating to the financial affairs of the Companies and the
Guarantors as any prospective participant or assignee of a Commitment reasonably may request.
Subject to the provisions of Section 13.7, the Companies authorize each Lender to disclose
to any prospective participant or assignee of a Commitment, any and all information in such
Lender’s possession concerning the Companies, the Guarantors and their respective financial affairs
which has been delivered to such Lender by or on behalf of the Companies and the Guarantors
pursuant to this Financing Agreement, or which has been delivered to such Lender by or on behalf of
the Companies and the Guarantors in connection with such Lender’s credit evaluation of the
Companies and the Guarantors prior to entering into this Financing Agreement.

     13.5. Sharing of Liabilities. In the event that the Agent, the Lenders or any of them
is sued or threatened with a suit, action or claim by the Companies, or any of one of them, or any
of the Guarantors, or by a creditor, committee of creditors, trustee, receiver, liquidator,
custodian, administrator or other similar official acting for or on behalf of the Companies (or any
of them) or any of the Guarantors, on account of (a) any preference, fraudulent
conveyance or other voidable transfer alleged to have occurred or been received as a result of
the operation of this Financing Agreement, any of the Loan Documents or the transactions
contemplated hereby, or (b) any lender liability theory based on any action taken or not taken by
such person in

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connection with this Financing Agreement, any of the Loan Documents or the transactions
contemplated hereby, any money paid in satisfaction or compromise of such suit, action, claim or
demand, and any expenses, costs and attorneys’ fees paid or incurred in connection therewith
(whether by the Agent, the Lenders or any of them), shall be shared proportionately by the Lenders
according to their respective Pro Rata Percentages, except to the extent that such person’s own
gross negligence or willful misconduct directly gave rise to such suit, action or claim. In
addition, any reasonable costs, expenses, fees or disbursements incurred in good faith by agents or
attorneys retained by the Agent to collect the Obligations or enforce any rights in the Collateral,
including enforcing, preserving or maintaining rights under this Financing Agreement and other Loan
Documents, shall be shared among the Lenders according to their respective Pro Rata Percentages to
the extent not reimbursed by the Companies or from the Proceeds of Collateral. The provisions of
this Section 13.5 shall not apply to any suits, actions, proceedings or claims that (a) are
filed or asserted prior to the Closing Date or (b) are based on transactions, actions or omissions
occurring prior to the date of this Financing Agreement.

     13.6. Exercise of Setoff Rights. The Companies authorize each Lender, and each Lender
shall have the right, after the occurrence of an Event of Default, without notice, to set-off and
apply against any and all property or assets of any Company or any Guarantor held by, or in the
possession of such Lender, any of the Obligations owed to such Lender. Promptly after the exercise
of any right to set-off, the Lender exercising such right irrevocably agrees to purchase for cash
(and the other Lenders irrevocably agree to sell) participation interests in each other Lender’s
outstanding Revolving Loans as would be necessary to cause such Lender to share the amount of the
property set- off with the other Lenders based on each Lender’s Pro Rata Percentage. The Companies
agree, to the fullest extent permitted by law, that any Lender also may exercise its right to
set-off with respect to amounts in excess of such Lender’s Pro Rata Percentage of the Obligations
then outstanding, and may purchase participation interests in the amounts so set-off from the other
Lenders, and upon doing so shall deliver such excess to Agent, for distribution to the other
Lenders in settlement of the participation purchases described above in this Section 13.6.
Notwithstanding the foregoing, each Lender hereby agrees with each other Lender that no Lender
shall independently take any action to enforce or protect its rights arising out of this Financing
Agreement or any other Loan Document without first obtaining the prior written consent of the Agent
or the Required Lenders, it being the intent of the Lenders that any such action shall be taken in
concert and at the direction of the Agent or the Required Lenders; provided,
however, that each Lender may, after the occurrence and during the continuance of an Event
of Default (and upon prior written notice to Agent) exercise its right of setoff with respect to
the Companies, so long as the benefits of such setoff are shared on a pro rata
basis with the other Lenders as required pursuant to this Section 13.6.

     13.7. Confidentiality. For the purposes of this Section 13.7,
“Confidential Information” means all financial projections and all other information
delivered to the Agent or any Lender by or on behalf of the Companies or any of the Guarantors in
connection with the transactions contemplated by or otherwise pursuant to this Financing Agreement,
provided that such term does not include information that (a) was publicly known or
otherwise known to the Agent or any of the Lenders prior to the time of such disclosure, (b)
subsequently becomes publicly known through no act or omission by the Agent or the Lenders or any
person acting on their behalf, (c) otherwise becomes known to the Agent or the Lenders other than
through disclosure by the Companies or any of the Guarantors or (d) constitutes financial
statements

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delivered under Section 7.1(h) that are otherwise publicly available. The Agent and
the Lenders will maintain the confidentiality of such Confidential Information in accordance with
commercially reasonable procedures adopted by the Agent and the Lenders in good faith to protect
confidential information of third parties delivered to them, provided that the Agent and
the Lenders may deliver or disclose Confidential Information to:

          (a) their respective directors, officers, employees, agents, attorneys and affiliates who are
advised to hold confidential the Confidential Information substantially in accordance with the
terms of this Section 13.7 (to the extent such disclosure reasonably relates to the
administration of the Line of Credit);

          (b) their respective financial advisors and other professional advisors who are advised to
hold confidential the Confidential Information substantially in accordance with the terms of this
Section 13.7;

          (c) any other Lender;

          (d) a commercial bank, commercial finance lender or other financial institution to which the
Agent or a Lender sells or offers to sell a portion of their rights and obligations under this
Financing Agreement or any participation therein, provided that so long as no Event of Default
shall have occurred and remain outstanding, such entity agrees in writing prior to their receipt of
such Confidential Information to be bound by the provisions of this Section 13.7; or

          (e) any other person or entity (including bank auditors and other regulatory officials) to
which such delivery or disclosure may be necessary or appropriate (i) to comply with any applicable
law, rule, regulation or order, or any request of a regulatory authority having jurisdiction over
the Agent or any Lender, (ii) in response to any subpoena or other legal process, (iii) in
connection with any litigation to which the Agent or a Lender is a party or (iv) if an Event of
Default shall have occurred and remain outstanding, to the extent the Agent may reasonably
determine such delivery and disclosure to be necessary or appropriate in the enforcement or for the
protection of the rights and remedies under this Financing Agreement.

Each Lender becoming a Lender subsequent to the initial execution and delivery of this Financing
Agreement, by its execution and delivery of an Assignment and Transfer Agreement, will be deemed to
have agreed to be bound by, and to be entitled to the benefits of, this Section 13.7.

     13.8. Register.

          (a) Each Company hereby authorizes the Agent, solely for the purpose of this Section
13.8(a), to maintain a register (the “Register”) on which the Agent will record each
Lender’s loans and other extensions of credit made to the Company hereunder and each repayment in
respect of such loans and other extensions of credit of each Lender and annexed to which the Agent
shall retain a copy of each Assignment and Transfer Agreement. Failure to make any recordation, or
any error in such recordation, shall not affect the Company’s obligations in respect of such loans
and other extensions of credit. The entries in the Register shall be conclusive (provided, however,
that any failure to make any recordation, or any error in

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such recordation, shall be corrected by the Agent upon Agent’s actual notice or discovery
thereof), and the Companies, the Agent and the Lenders shall treat each person in whose name a loan
and other extension of credit is registered as the owner thereof for all purposes of this
Agreement, notwithstanding notice or any provision herein to
the contrary. A Lender’s loans and other extensions of credit may be assigned or otherwise
transferred in whole or in part only by registration of such assignment or transfer in the
Register. Any assignment or transfer of a Lender’s loan and other extensions of credit shall be
registered in the Register only upon delivery to the Agent of the applicable Assignment and
Transfer Agreement. No assignment or transfer of a Lender’s loan and other extensions of credit
shall be effective unless such assignment or transfer shall have been recorded in the Register by
the Agent as provided in this Section 13.8(a).

          (b) Each Lender that sells a participation in the loans and other extensions of credit made to
the Companies hereunder shall, solely for the purpose of this Section 13.8(b), record in
book entries maintained by such Lender the name and the amount of the participation of each
participant entitled to receive payments in respect of such participation.

SECTION 14. AGENCY

     14.1. Appointment of Agent; Powers. Each Lender hereby irrevocably designates and
appoints CIT to act as the Agent for such Lender under this Financing Agreement and the other Loan
Documents, and irrevocably authorizes CIT, as Agent for such Lender, to take such action on its
behalf under the provisions of this Financing Agreement and the other Loan Documents, and to
exercise such powers and perform such duties as are expressly delegated to the Agent by the terms
of this Financing Agreement and the other Loan Documents, together with such other powers as are
reasonably incidental thereto. In performing its functions under this Financing Agreement, the
Agent is acting solely as an agent of the Lenders, and the Agent does not assume, and shall not be
deemed to have assumed, an agency or other fiduciary relationship with the Companies or any Lender.
The Agent shall not have any (a) duty, responsibility, obligation or liability to any Lender,
except for those duties, responsibilities, obligations and liabilities expressly set forth in this
Financing Agreement, or (b) fiduciary relationship with any Lender, and no implied covenants,
functions, responsibilities, duties, obligations or liabilities shall be read into this Financing
Agreement or the other Loan Documents, or otherwise exist against the Agent.

     14.2. Delegation of Agent’s Duties. The Agent may execute any of its duties under this
Financing Agreement and all ancillary documents by or through agents or attorneys, and shall be
entitled to the advice of counsel concerning all matters pertaining to such duties.

     14.3. Disclaimer of Agent’s Liabilities. Neither the Agent nor any of its officers,
directors, employees, agents, or attorneys shall be liable to any Lender for any action lawfully
taken or not taken by the Agent or such person under or in connection with the Financing Agreement
and the other Loan Documents (except for the Agent’s or such person’s gross negligence or willful
misconduct). Without limiting the generality of the foregoing, the Agent shall not be liable to the
Lenders for (i) any recital, statement, representation or warranty made by the Companies or the
Guarantors or any officer thereof contained in (x) this Financing Agreement, (y) any other Loan
Document or (z) any certificate, report, audit, statement or other

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document referred to or provided for in this Financing Agreement or received by the Agent
under or in connection with this Financing Agreement, (ii) the value, validity, effectiveness,
enforceability or sufficiency of this Financing Agreement, the other Loan Documents or the security
interests in the Collateral of the Agent for the benefit of the Agent and the Lenders, (iii) any
failure of the Companies or the Guarantors to perform their respective obligations under this
Financing Agreement and the other Loan Documents, (iv) any loss or depreciation in the value of,
delay in collecting the Proceeds of, or failure to realize on, any Collateral, (v) the Agent’s
delay in the collection of the Obligations or enforcing the Agent’s rights against the Companies or
the Guarantors, or the granting of indulgences or extensions to the Companies, any of the
Guarantors or any account debtor of the Companies, or (vi) any mistake, omission or error in
judgment in passing upon or accepting any Collateral. In addition, the Agent shall have no duty or
responsibility to ascertain or to inquire as to the observance or performance of any of the terms,
conditions,
covenants or other agreements of the Companies or the Guarantors contained in this Financing
Agreement or the other Loan Documents, or to inspect, verify, examine or audit the assets, books or
records of the Companies or the Guarantors at any time.

     14.4. Reliance and Action by Agent. The Agent shall be entitled to rely, and shall be
fully protected in relying, upon legal counsel, independent public accountants and experts selected
by Agent, and shall not be liable to the Lenders for any action taken or not taken in good faith
based upon the advice of such counsel, accountants or experts. In addition, the Agent shall be
entitled to rely, and shall be fully protected in relying, upon any note, writing, resolution,
notice, consent, certificate, affidavit, letter, telecopy, telex or teletype message, statement,
order or other document believed by the Agent in good faith to be genuine and correct, and to have
been signed, sent or made by the proper person or persons. The Agent shall be fully justified in
taking or refusing to take any action under this Financing Agreement and the other Loan Documents
unless the Agent (a) receives the advice or consent of the Lenders or the Required Lenders, as the
case may be, in a manner that the Agent deems appropriate, or (b) is indemnified by the Lenders to
the Agent’s satisfaction against any and all liability, cost and expense which may be incurred by
the Agent by reason of taking or refusing to take any such action. The Agent shall in all cases be
fully protected in acting, or in refraining from acting, under this Financing Agreement and the
other Loan Documents in accordance with a request of all Lenders or the Required Lenders, as the
case may be, and such request and any action taken or failure to act pursuant thereto shall be
binding upon all Lenders.

     14.5. Events of Default. The Agent shall not be deemed to have knowledge or notice of
the occurrence of any Default or Event of Default hereunder (other than a Default or Event of
Default with respect to payments of principal and/or interest with respect to the Revolving Loans)
unless the Agent has received notice from the Companies or a Lender describing such Default or
Event of Default with specificity. In the event that the Agent receives such a notice, the Agent
shall promptly give notice thereof to all Lenders. The Agent shall take such action with respect to
such Default or Event of Default as shall be reasonably directed by the Lenders or Required
Lenders, as the case may be, provided that (a) if appropriate, the Agent may require
indemnification from the Lenders under Section 14.4 prior to taking such action, (b) under
no circumstances shall the Agent have an obligation to take any action that the Agent believes in
good faith would violate any law or any provision of this Financing Agreement or the other Loan
Documents, and (c) unless and until the Agent shall have received direction from the Lenders or the
Required Lenders, as the case may be, the Agent may (but shall not be obligated to) take such
action or refrain from taking action with respect to such Default or Event of Default as the Agent
shall deem advisable and in the best interests of the Lenders.

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     14.6. Lenders’ Due Diligence. Each Lender expressly acknowledges that neither the
Agent, nor any of its officers, directors, employees or agents, has made any representation or
warranty to such Lender regarding the transactions contemplated by this Financing Agreement or the
financial condition of the Companies or the Guarantors, and such Lender agrees that no action taken
by the Agent hereafter, including any review of the business or financial affairs of the Companies
or the Guarantors, shall be deemed to constitute a representation or warranty by the Agent to any
Lender. Each Lender also acknowledges that such Lender has, independently and without reliance upon
the Agent or any other Lender and based on such documents and information as such Lender has deemed
appropriate, made its own credit analysis, appraisal of and investigation into the business,
operations, property, financial condition and creditworthiness of the Companies and the Guarantors,
and made its own decision to enter into this Financing Agreement. Each Lender agrees, independently
and without reliance upon the Agent or any other Lender and based on such documents and information
as such Lender shall deem appropriate at the time, (a) to continue to make its own credit analyses
and appraisals in deciding whether to take or not take action under this Financing Agreement and
(b) to make such investigations as such Lender deems necessary to inform itself as to the business,
operations, property, financial condition and creditworthiness of the Companies and the Guarantors.

     14.7. Right to Indemnification. The Lenders agree to indemnify the Agent and the
Agent’s officers, directors, employees, advisors and agents (collectively, the “Agent Parties”) (to
the extent not reimbursed by the Companies and without limiting the obligation of the Companies to
do so), from and against any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind whatsoever which may at any time be
imposed on, incurred by or asserted against the Agent Parties in any way relating to or arising out
of (a) this Financing Agreement or any other Loan Document, (b) the transactions contemplated
hereby or (c) any action taken or not taken by the Agent Parties under or in connection with any of
the foregoing, provided that no Lender shall be liable to an Agent Party for the payment of any
portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements resulting solely from such Agent Party’s gross negligence or
willful misconduct.

     14.8. Other Transactions. The Agent and any Lender may make loans to and generally
engage in any kind of business with the Companies, as though the Agent or such Lender were not the
Agent or a Lender hereunder. With respect to loans made by the Agent under this Financing Agreement
as a Lender, the Agent shall have the same rights and powers, duties and liabilities under this
Financing Agreement and the other Loan Documents as any other Lender, and may exercise the same as
though it was not the Agent, and the term “Lender” and “Lenders” shall include the Agent in its
individual capacity as such.

     14.9. Resignation of Agent. The Agent may resign as the Agent upon 30 days notice to
the Lenders, and such resignation shall be effective on the earlier of (a) the appointment of a
successor Agent by the Lenders or (b) the date on which such 30-day period expires. If the Agent
provides the Lenders with notice of its intention to resign as Agent, the Lenders agree to appoint
a successor to the Agent as promptly as possible thereafter, whereupon such successor

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shall succeed to the rights, powers and duties of the Agent, and the term “Agent” shall mean
such successor effective upon its appointment, which such appointment shall be subject to the
approval of the Required Lenders. Upon the effective date of an Agent’s resignation, such Agent’s
rights, powers and duties as Agent hereunder immediately shall terminate, without any other or
further act or deed on the part of such former Agent or any of the parties to this Financing
Agreement. After an Agent’s resignation hereunder, the provisions of this Section 14 shall continue
to inure to such Agent’s benefit as to any actions taken or not taken by such Agent while acting as
the Agent.

     14.10. Voting Rights; Agent’s Discretionary Rights. Notwithstanding anything contained
in this Financing Agreement to the contrary, without the prior written consent of all Lenders, the
Agent will not agree to:

          (a) amend or waive the Companies’ compliance with any term or provision of this Financing
Agreement, if the effect of such amendment or waiver would be to (i) increase the Revolving Line of
Credit or the Line of Credit, (ii) reduce (or forgive) the principal of, or rate of interest on,
the Revolving Loans, (iii) reduce or waive the payment of any fee in which all Lenders share
hereunder or (iv) extend the maturity date of any of the Obligations or the date fixed for payment
of any installment thereof;

          (b) alter or amend (i) this Section 14.10, (ii) the definitions of “Eligible
Accounts Receivable”, “Eligible Inventory”, “Collateral”, “Required
Lenders” or “Supplemental Amount” or (iii) the advance rates set forth in clause (a) of
the definition of Borrowing Base to increase such advance rates to a level greater than the level
in effect on the Closing Date;

          (c) except as otherwise expressly permitted or required hereunder, release any Collateral
having a value (as determined by the Agent in its reasonable business judgment) of more than
$250,000 in any fiscal year of the Companies;

          (d) knowingly make any Revolving Loan to the Companies if after giving effect thereto the
principal amount of all outstanding Revolving Loans plus the undrawn amount of all outstanding
Letters of Credit, Bankers Acceptances, Steamship Guarantees and/or Airway Releases would exceed
the lesser of (i) the Revolving Line of Credit or (ii) one hundred ten percent (110%) of the
Borrowing Base of the Companies; provided that in no event shall the Agent continue to knowingly
make Overadvances under this Section 14.10(d) for a period in excess of ninety (90) consecutive
days without the consent of all Lenders, and provided further that after the occurrence of an Event
of Default, the Agent in its sole discretion shall have the right to make Overadvances in excess of
the limitation set forth in clause (ii) above in order to preserve, protect and realize upon the
Collateral; or

          (e) release any of the Guarantors from any of their Obligations under any Guaranty.

     In all other respects the Agent is authorized to take or to refrain from taking any action
which the Agent, in the exercise of its reasonable business judgment, deems to be advisable and in
the best interest of the Lenders, unless this Financing Agreement specifically requires the
Companies or the Agent to obtain the consent of, or act at the direction of, the Required Lenders.

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Without limiting the generality of the foregoing sentence, and notwithstanding any other
provision of this Financing Agreement to the contrary, the Agent shall have the right in its sole
discretion to (i) determine whether the requirements for eligibility set forth in the definitions
of “Eligible Accounts Receivable” and “Eligible Inventory” are satisfied, (ii)
establish, adjust and release the amount of reserves provided for in the definitions of
“Availability Reserve”, “Eligible Accounts Receivable” and “Eligible
Inventory”, (iii) make Overadvances in accordance with clause (d) of this Section
14.10, (iv) release any Collateral having a value (as determined by the Agent in its reasonable
business judgment) of up to $250,000 in each fiscal year of the Companies, and (v) amend any
provision of this Financing Agreement or the other Loan Documents in order to cure any error,
ambiguity, defect or inconsistency set forth therein. Except as provided in the foregoing sentence,
and as provided in clauses (a) through (e) of this Section 14.10, all waivers of any Events of
Default (other than with respect to the provisions of Section 7.2(g) and (h) which may be waived by
the Agent in its discretion, but any modifications and amendments thereto shall require the consent
of the Required Lenders), and all waivers, modifications and amendments to the provisions of
Section 7.3 or Section 7.4 shall require the consent of the Required Lenders. In
the event the Agent terminates this Financing Agreement pursuant to the terms hereof, the Agent
agrees to cease making additional loans or advances upon the effective date of termination, except
for loans or advances which the Agent in its sole discretion determines are reasonably required to
preserve, protect or realize upon the Collateral.

     14.11. Deemed Consent. If a Lender’s consent to a waiver amendment or other course of
action is required under the terms of this Financing Agreement and such Lender does not respond to
any request by the Agent for such consent within ten (10) Business Days after the date of such
request (which such request and each consent thereto shall be in writing (including, for purposes
of this Section 14.11, messages sent by e-mail or telecopier)), such failure to respond
shall be deemed a consent to the requested course of action.

     14.12. Survival of Agreements of the Lenders. The obligations of the Lenders set forth
in Sections 13.3, 13.5, 13.6, 14.4 and 14.7 hereof shall
survive the termination of this Financing Agreement.

[Remainder of Page Intentionally Blank]

84

 

     IN WITNESS WHEREOF, the parties hereto have caused this Financing Agreement to be
executed, accepted and delivered at New York, New York, by its proper and duly authorized officers
as of the date first herein above set forth.

	 	 	 	 	 
	 	THE CIT GROUP/COMMERCIAL

SERVICES, INC., as Agent and Lender

 	 
	 	By:  	         /s/ EDWARD J. AHEARN
 	 
	 	 	Name:  	       Edward J. Ahearn 	 
	 	 	Title:  	      Senior Vice President 	 
	 
	 	Commitment: $15,000,000

Pro Rata Percentage: 6%

HSBC BANK USA, NATIONAL

ASSOCIATION, as Lender

 	 
	 	By:  	         /s/ SAM OPITZ
 	 
	 	 	Name:  	       Sam Opitz 	 
	 	 	Title:  	      Vice President 	 
	 
	 	Commitment: $35,000,000

Pro Rata Percentage: 14%

SOVEREIGN BANK, as Lender

 	 
	 	By:  	             /s/ MATILDE REYES
 	 
	 	 	Name:  	           Matilde Reyes 	 
	 	 	Title:  	          Senior Vice President 	 
	 
	 	Commitment: $20,000,000

Pro Rata Percentage: 8%

[signatures continued on succeeding page]

 	 

 

 

	 	 	 	 	 
	 	ISRAEL DISCOUNT BANK OF NEW
YORK, as 
Lender

 	 
	 	By:  	         /s/ JUAN C. ZAINO
 	 
	 	 	Name:  	       Juan C. Zaino 	 
	 	 	Title:  	      First Vice President 	 
	 
	 	 	 
	 	By:  	                     /s/ R. DAVID KOMGRUEN
 	 
	 	 	Name:  	       R. David Komgruen 	 
	 	 	Title:  	      Vice President 	 
	 
	 	Commitment: $30,000,000

Pro Rata Percentage: 12%

COMMERCE BANK, N.A., as Lender

 	 
	 	By:  	                /s/ MARTIN NOREN
 	 
	 	 	Name:  	              Martin Noren 	 
	 	 	Title:  	             Vice President 	 
	 
	 	Commitment: $30,000,000

Pro Rata Percentage: 12%

SIGNATURE BANK, as Lender

 	 
	 	By:  	             /s/ ROBERT A. BROCH
 	 
	 	 	Name:  	           Robert A. Broch 	 
	 	 	Title:  	          Senior Vice President 	 
	 
	 	Commitment: $15,000,000

Pro Rata Percentage: 6%

[signatures continued on succeeding page]

 	 

 

 

	 	 	 	 	 
	 	BANK LEUMI USA, as Lender

 	 
	 	By:  	             /s/ JOHN KOENIGSBERG
 	 
	 	 	Name:  	           John Koenigsberg 	 
	 	 	Title:  	          Senior Vice President 	 
	 
	 	 	 
	 	By:  	                     /s/ IRIS STEINHARDT
 	 
	 	 	Name:  	       Iris Steinhardt 	 
	 	 	Title:  	      Vice President 	 
	 
	 	Commitment: $15,000,000

Pro Rata Percentage: 6%

WEBSTER BUSINESS CREDIT, as Lender

 	 
	 	By:  	                  /s/ DANIEL C. DUPRE
 	 
	 	 	Name:  	                Daniel C. Dupre 	 
	 	 	Title:  	               Vice President 	 
	 
	 	Commitment: $15,000,000

Pro Rata Percentage: 6%

 	 
	 
	 	JPMORGAN CHASE BANK, N.A., as Lender

 	 
	 	By:  	                                 /s/ BRITT O’ROURKE
 	 
	 	 	Name:  	                               Britt O’Rourke 	 
	 	 	Title:  	                              Vice President 	 
	 
	 	Commitment: $30,000,000

Pro Rata Percentage: 12%

[signatures continued on succeeding page]

 	 

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., as Lender

 	 
	 	By:  	                 /s/ DAVID GUTIERREZ
 	 
	 	 	Name:  	               David Gutierrez 	 
	 	 	Title:  	              Senior Vice President 	 
	 
	 	Commitment: $25,000,000

Pro Rata Percentage: 10%

WACHOVIA BANK, N.A., as Lender

 	 
	 	By:  	                /s/ ROBERT MAICHIN
 	 
	 	 	Name:  	              Robert Maichin 	 
	 	 	Title:  	             Senior Vice President 	 
	 
	 	Commitment: $20,000,000

Pro Rata Percentage: 8%

THE COMPANIES:

G-III LEATHER FASHIONS, INC., as a

Company and the Funds Administrator

 	 
	 	By:  	         /s/ NEAL S. NACKMAN
 	 
	 	 	Name:  	       Neal S. Nackman 	 
	 	 	Title:  	      Vice President — Finance 	 
	 
	 	J. PERCY FOR MARVIN RICHARDS, LTD., as a

Company

 	 
	 	By:  	                     /s/ NEAL S. NACKMAN
 	 
	 	 	Name:  	                   Neal S. Nackman 	 
	 	 	Title:  	                  Secretary 	 
	 
	 	[signatures continued on succeeding page]

 	 
	 	 	 
	 	 	 
	 	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	CK OUTERWEAR, LLC, as a Company

 	 
	 	By:  	                /s/ NEAL S. NACKMAN
 	 
	 	 	Name:  	              Neal S. Nackman 	 
	 	 	Title:  	             Secretary 	 
	 
	 	A. MARC & CO., INC., as a Company

 	 
	 	By:  	                 /s/ NEAL S. NACKMAN
 	 
	 	 	Name:  	               Neal S. Nackman 	 
	 	 	Title:  	              Vice President — Finance and Secretary 	 
	 
	 	ANDREW & SUZANNE COMPANY INC., as a Company

 	 
	 	By:  	         /s/ NEAL S. NACKMAN
 	 
	 	 	Name:  	       Neal S. Nackman 	 
	 	 	Title:  	      Vice President — Finance and Secretary 	 
	 
	 	AGREED AS TO SECTIONS 7.3 and 7.4(m):

G-III APPAREL GROUP, LTD., as Parent

 	 
	 	By:  	                   /s/ NEAL S. NACKMAN
 	 
	 	 	Name:  	                 Neal S. Nackman 	 
	 	 	Title:  	                Chief Financial Officer and Treasurer 	 

 

 

	 	 	 	 	 

EXHIBIT A

FORM OF ASSIGNMENT AND TRANSFER AGREEMENT

ASSIGNMENT AND TRANSFER AGREEMENT

     Reference is made to the Amended and Restated Financing Agreement dated as of April 3, 2008
(as amended, restated supplemented or otherwise modified and in effect from time to time, the
“Financing Agreement”) among G-III Leather Fashions, Inc., a New York corporation
(“G-III”), J. Percy for Marvin Richards, Ltd., a New York corporation (“JPMR”), CK
Outerwear, LLC, a New York limited liability company (“CK”), A. Marc & Co., Inc., a New
York corporation (“AMC”) and Andrew & Suzanne Company, Inc., a New York corporation
(“A&S”), and together with G-III, JPMR, CK and AMC, individually, a “Company” and
collectively the “Companies”), the financial institutions from time to time party thereto,
as lenders (collectively, the “Lenders”, and individually, each a “Lender”), and
The CIT Group/Commercial Services, Inc, a New York corporation, as agent for the Lenders (in such
capacity, the “Agent”). Capitalized terms used in this Assignment and Transfer Agreement
(this “Agreement”) and not otherwise defined shall have the meanings given to such terms in
the Financing Agreement. This Agreement, between the Assignor (as defined and set forth on Schedule
1, which is made a part of this Agreement) and the Assignee (as defined and set forth on
Schedule 1) is effective as of Effective Date (as set forth on Schedule 1).

     1. The Assignor hereby irrevocably sells and assigns to the Assignee, without recourse to the
Assignor, and the Assignee hereby irrevocably purchases and assumes from the Assignor, without
recourse to the Assignor, as of the Effective Date, an undivided interest (the “Assigned
Interest”) in and to all of the Assignor’s rights and obligations under the Financing Agreement
respecting those, and only those, portions of the financing facilities contained in the Financing
Agreement as are set forth on Schedule 1 (collectively, the “Assigned Facilities”),
in an amount for each of the Assigned Facilities as set forth on Schedule 1.

     2. The Assignor: (i) makes no representation or warranty and assumes no responsibility with
respect to any statements, warranties or representations made in or in connection with the
Financing Agreement or any other instrument, document or agreement executed or delivered in
connection therewith (collectively the “Loan Documents”), or the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the Financing Agreement, any
Collateral thereunder or any of the other Loan Documents, other than a representation and warranty
that the Assignor is the legal and beneficial owner of the Assigned Interest and that the Assigned
Interest is free and clear of any adverse claim; and (ii) makes no representation or warranty and
assumes no responsibility with respect to (x) the financial condition of the Companies or any
Guarantor, or (y) the performance or observance by the Companies or any Guarantor of any of their
respective obligations under the Financing Agreement or any of the Loan Documents.

     3. The Assignee (i) represents and warrants that it is legally authorized to enter into this
Agreement, (ii) confirms that it has received a copy of the Financing Agreement as amended through
the Effective Date, together with the copies of the most recent financial statements of the
Companies, and such other documents and information as the Assignee has deemed appropriate

 

 

to make its own credit analysis, (iii) agrees that the Assignee will, independently and
without reliance upon the Agent, the Assignor or any other Lender and based on such documents and
information as the Assignee shall deem appropriate at the time, continue to make its own credit
decisions in taking or not taking action under the Financing Agreement, (iv) appoints and
authorizes the Agent to take such action as agent on the Assignee’s behalf and to exercise such
powers under the Financing Agreement as are delegated to the Agent by the terms thereof, together
with such powers as are reasonably incidental thereto, (v) agrees that the Assignee will be bound
by the provisions of the Financing Agreement and will perform in accordance with its terms all the
obligations which by the terms of the Financing Agreement are required to be performed by it as
Lender, and (vi) if the Assignee is organized under the laws of a jurisdiction within the United
States (but is not a corporation), attaches IRS Form W-9 (or a substitute form thereof) to avoid
any back-up withholding and (vii) if the Assignee is organized under the laws of a jurisdiction
outside the United States, attaches the forms prescribed by the IRS certifying as to the Assignee’s
exemption from
United States withholding taxes with respect to all payments to be made to the Assignee under the
Financing Agreement or such other documents as are necessary to indicate that all such payments are
subject to such tax rate reduced by an applicable tax treaty.

     4. Following the execution of this Assignment and Transfer Agreement, such agreement will be
delivered to the Agent for acceptance by the Agent, effective as of the Effective Date.

     5. Upon such acceptance, from and after the Effective Date, the Agent shall make all payments
in respect of the Assigned Interest (including payments of principal, interest, fees and other
amounts) to the Assignee, whether such amounts have accrued prior to the Effective Date or accrue
subsequent to the Effective Date. The Assignor and the Assignee shall make all other appropriate
adjustments in payments for periods prior to the Effective Date made by the Agent or with respect
to the making of this assignment directly between themselves.

     6. From and after the Effective Date, (i) the Assignee shall be a party to the Financing
Agreement and, to the extent provided in this Agreement, have the rights and obligations of a
Lender thereunder, and (ii) the Assignor shall, to the extent provided in this Agreement,
relinquish its rights and be released from its obligations under the Financing Agreement.

     7. THIS ASSIGNMENT AND TRANSFER AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES.

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by its
respective duly authorized officers on Schedule 1 hereto.

Schedule 1 to Assignment and Transfer Agreement

Name of Assignor:                                                                   
              

Name of Assignee:                                                                   
              

Effective Date of Assignment:                                                  , 200__

	 	 	 	 	 
	 	 	Percentage of	 	 
	Assigned Facilities	 	Facilities Assigned	 	Dollar Amount Assigned
	Revolving Line of Credit

	 	                    %
	 	$                              

	 	 	 	 	 	 	 	 	 	 	 

	 
	 	 	 	 	 	 	 	 	 	 
	ASSIGNOR:	 	 	 	ASSIGNEE:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 
	 	By:
	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	Its:

	 	 	 	 	 	Its:	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Accepted by the Agent:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	THE CIT GROUP/COMMERCIAL SERVICES,

INC., as Agent as aforesaid	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Its:
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 

 

 

EXHIBIT B

SECOND AMENDED AND RESTATED

REVOLVING LOAN PROMISSORY NOTE R-__

			
	$___________
	 	April 3, 2008
	 
	 	New York, New York

     FOR VALUE RECEIVED, the undersigned, G-III Leather Fashions, Inc., a New York corporation
(“G-III Inc.”), J. Percy for Marvin Richards, Ltd., a New York corporation (“JPMR”), CK Outerwear,
LLC, a New York limited liability company (“CKO”), A. Marc & Co., Inc., a New York corporation
(“AMC”), and Andrew and Suzanne Company Inc., a New York corporation (“A&S”, and together with
G-III Inc., JPMR, CKO and AMC, individually, a “Company” and collectively, the “Companies”),
jointly and severally, absolutely and unconditionally, promise to pay to the order of ____________
(“Lender”) at the offices of The CIT Group/Commercial Services, Inc., as agent (“Agent”) for the
lenders (including Lender) under the Amended and Restated Financing Agreement referred to below, at
11 West 42nd Street, New York, New York, in lawful money of the United States of America and in
immediately available funds, the principal amount of _____________________ DOLLARS ($____________),
or such lesser amount as may be advanced to the Companies by Lender as Revolving Loans under the
Financing Agreement (as defined below) and remain unpaid, on the Termination Date.

     The Companies jointly and severally, absolutely and unconditionally, further agree to pay
interest at said office, in like money, on the unpaid amount of Revolving Loans outstanding from
time to time on the dates and at the rates specified in Section 8 of the Amended and Restated
Financing Agreement dated as of April 3, 2008 (as amended, restated, modified and supplemented, the
“Financing Agreement”) among the Companies, the Lenders that are parties thereto and Agent.
Capitalized terms used in this Note and defined in the Financing Agreement shall have the meanings
given to such terms in the Financing Agreement unless otherwise specifically defined herein.

     This Note is a Revolving Loan Promissory Note referred to in the Financing Agreement,
evidences the Revolving Loans made to the Companies by the Lender thereunder, and is subject to,
and entitled to, all provisions and benefits thereof, including optional and mandatory prepayment,
in whole or in part, as provided therein.

     This Note together with the other Second Amended and Restated Revolving Loan Promissory Notes
dated the date hereof in favor of the Lenders in the aggregate principal amount of $250,000,000
amend and restate in their entireties and are given in substitution for (but not in satisfaction
of) (a) that certain Amended and Restated Revolving Loan Promissory Note R-1 dated October 16, 2006
issued by the Companies to The CIT Group/ Commercial Services, Inc. in the original principal
amount of $48,541,310.00, (b) that certain Amended and Restated Revolving Loan Promissory Note R-2
dated October 16, 2006 issued by the Companies to HSBC Bank USA, National Association in the
original principal amount of $26,654,260.00, (c) that certain Amended and Restated Revolving Loan
Promissory Note R-3 dated October 16, 2006 issued by the Companies to Webster Business Credit
Corporation in the original principal

 

 

amount of $11,276,884.00, (d) that certain Amended and Restated Revolving Loan Promissory Note
R-4 dated October 16, 2006 issued by the Companies to Commerce Bank, N.A. in the original principal
amount of $15,992,556.00, (e) that certain Amended and Restated Revolving Loan Promissory Note R-5
dated October 16, 2006 issued by the Companies to Bank Leumi USA, National Association in the
original principal amount of $13,327,130.00, (f) that certain Amended and Restated Revolving Loan
Promissory Note R-6 dated October 16, 2006 issued by the Companies to Israel Discount Bank of New
York in the original principal amount of $26,654,260.00, (g) that certain Amended and Restated
Revolving Loan Promissory Note R-7 dated October 16, 2006 issued by the Companies to JPMorgan Chase
Bank, N.A. in the original principal amount of $9,021,433.00, and (h) that certain Amended and
Restated Revolving Loan Promissory Note R-8 dated October 16, 2006 issued by the Companies to
Signature Bank in the original principal amount of $13,532,165.00.

[BALANCE OF PAGE INTENTIONALLY LEFT BLANK]

[SIGNATURE PAGE FOLLOWS]

 

 

     Notwithstanding any other provision of this Note to the contrary, upon the occurrence of
any Event of Default specified in the Financing Agreement, or upon termination of the Financing
Agreement for any reason, all amounts then remaining unpaid on this Note may become, or be declared
to be, at the sole election of Agent or the Required Lenders, immediately due and payable as
provided in the Financing Agreement.

	 	 	 	 	 
	 	G-III LEATHER FASHIONS, INC. 

 	 
	 	By:  	 	 
	 	 	Name:  	Neal S. Nackman 	 
	 	 	Title:  	Vice President — Finance 	 
	 
	 	J. PERCY FOR MARVIN RICHARDS, LTD. 

 	 
	 	By:  	 	 
	 	 	Name:  	Neal S. Nackman 	 
	 	 	Title:  	Secretary 	 
	 
	 	CK OUTERWEAR, LLC 

 	 
	 	By:  	 	 
	 	 	Name:  	Neal S. Nackman 	 
	 	 	Title:  	Secretary 	 
	 
	 	A. MARC & CO., INC. 

 	 
	 	By:  	 	 
	 	 	Name:  	Neal S. Nackman 	 
	 	 	Title:  	Vice President — Finance & Secretary 	 
	 
	 	ANDREW & SUZANNE COMPANY, INC. 

 	 
	 	By:  	 	 
	 	 	Name:  	Neal S. Nackman 	 
	 	 	Title:  	Vice President — Finance & Secretary 	 

 

 

	 	 	 	 	 

EXHIBIT C

[INTENTIONALLY OMITTED]

 

 

EXHIBIT D

Compliance Certificate

[Quarterly]

     I, Neal S. Nackman, Vice President of Finance of G-III Leather Fashions, Inc., a New York
corporation (the “Borrower”), and Chief Financial Officer and Treasurer of G-III Apparel
Group, Ltd. (the “Parent”), hereby certify on behalf of the Borrower that:

     1. This Certificate is being delivered pursuant to Section 7.2 of the Amended and Restated
Financing Agreement , dated April 3, 2008, by and among the Borrower, the other Companies party
thereto, the Lenders signatory thereto (the “Banks”) and CIT, as agent for the Banks (hereinafter,
as it may be from time to time amended, modified or supplemented, referred to as the “Loan
Agreement”);

     2. Pursuant to subsection 7.2(g) of the Loan Agreement, attached hereto as Exhibit A is a true
and correct copy of the Key Item Report for the quarter ending _____.

     3. There exists no defaults under the Loan Agreement, no default under any other material
agreement to which the Borrower, the Parent or any of the Subsidiaries is a party or by which it is
bound, or by which, to the best knowledge of the Borrower, the Parent or any Subsidiary, any of its
properties or assets, taken as a whole, may be materially affected, and no event which, with the
giving of notice or the lapse of time, or both, would constitute such an Event of Default or
Default.

     Attached hereto as Exhibit A is a detailed calculation indicating compliance as of ________
with the covenants contained in Section 7.3 of the Loan Agreement.

     Each capitalized item not otherwise defined herein shall have the meaning assigned to it in
the Loan Agreement.

     IN WITNESS WHEREOF, I have executed this Certificate on this __th day of ______.

	 	 	 	 	 
	 	G-III LEATHER FASHIONS, INC. 

 	 
	 	By:  	 	 
	 	 	Neal S. Nackman      	 
	 	 	Vice President — Finance 	 
	 
	 	G-III APPAREL GROUP, LTD. 

 	 
	 	By:  	 	 
	 	 	Neal S. Nackman      	 
	 	 	Chief Financial Officer and Treasurer 	 

 

 

	 	 	 	 	 

EXHIBIT D

Compliance Certificate

[Monthly]

     I, Neal S. Nackman, Vice President of Finance of G-III Leather Fashions, Inc., a New York
corporation (the “Borrower”), and Chief Financial Officer and Treasurer of G-III Apparel Group,
Ltd. (the “Parent”), hereby certify on behalf of the Borrower that:

     1. This Certificate is being delivered pursuant to Section 7.2 of the Amended and Restated
Financing Agreement , dated April 3, 2008, by and among the Borrower, the other Companies party
thereto, the Lenders signatory thereto (the “Banks”) and CIT, as agent for the Banks (hereinafter,
as it may be from time to time amended, modified or supplemented, referred to as the “Loan
Agreement”);

     2. Pursuant to Section 7.2(g) of the Loan Agreement, attached hereto as Exhibit A is a true
and correct copy of the Key Items Report for the month of ________.

     3. There exists no defaults under the Loan Agreement, no default under any other material
agreement to which the Borrower, the Parent or any of the Subsidiaries is a party or by which it is
bound, or by which, to the best knowledge of the Borrower, the Parent or any Subsidiary, any of its
properties or assets, taken as a whole, may be materially affected, and no event which, with the
giving of notice or the lapse of time, or both, would constitute such an Event of Default or
Default.

     Each capitalized item not otherwise defined herein shall have the meaning assigned to it in
the Loan Agreement.

     IN WITNESS WHEREOF, I have executed this Certificate on this __st day of _______.

	 	 	 	 	 
	 	G-III LEATHER FASHIONS, INC.

 	 
	 	By:  	
 	 
	 	 	Neal S. Nackman 	 
	 	 	Vice President — Finance 	 
	 
	 	G-III APPAREL GROUP, LTD.

 	 
	 	By:  	
 	 
	 	 	Neal S. Nackman 	 
	 	 	Chief Financial Officer and Treasurer 	 
	 

 

 

Exhibit E

Please see following page

 

 

	 	 	 

	CIT

	 	ateral Update Certificate
	 
	 	 
	Company Name:     G-III Apparel Group, LTD.

	 	Date: 3/25/08

	 	 	 	 	 	 	 	 	 	 	 

	 	 	 
	 	 	 	 	 	 	 	 
	1.	 	 Period End Accounts Receivable as of:
	3/22/2008	 	 	 	 	$	95,419,882	 
	 	 	 
	 	 	 	 	 	 
	2.	 	Accounts Receivable Ineligibles as of:
	3/22/2008	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 
	 	 	Accounts over 61 days from Due Date:
	 	$	13,845,430	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 
	 	 	Intercompany Accounts
	 	 	0	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 
	 	 	Government Accounts
	 	 	0	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 
	 	 	Other Accounts
	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 
	 	 	50 % Cross-Aging Exclusion
	 	 	1,984,087	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 
	 	 	Other    Credit Balances over 61 days
	 	 	653,275	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 
	 	 	Other    CB Net of           —      @     100.00%
	 	 	0	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	 	 	TOTAL INELIGIBLES
	 	 	 	 	 	 	16,482,792	 
	 	 	 
	 	 	 	 	 	 	 
	 
	3.
	 	 Eligible Accounts Receivable (Line 1 minus Line 2)	 	 	 	 	 	$	78,937,090	 
	 
	 	 	 	 	 	 
	4.
	 	Accounts Receivable Advance Rate	 	 	 	 	 	 	85	%
	 
	 	 	 	 	 	 
	5.
	 	Accounts Receivable Availability (Line 3 times Line 4)	 	 	 	 	 	$	67,096,526	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	6.
	 	Inventory as of:     ________          Source:     _________	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Type	 	Gross Amount	 	(-)	 	Ineligible	 	(X)	 	Adv. Rate	 	( = )	 	Available or CAP
	Inventory
	 	$	37,634,820	 	 	 	-	 	 	$	6,272,280	 	 	 	X	 	 	 	50	%	 	 	=	 	 	 	15,681,270	 
	Merchandise L/C Inventory
	 	$	17,336,075	 	 	 	-	 	 	 	 	 	 	 	X	 	 	 	37	%	 	 	=	 	 	 	6,414,348	 

	 	 	 	 	 	 	 	 	 

	 
	 	Total Inventory Availability	 	 	 	$	22,095,618	 
	 
	 	 	 	 	 	 	 	 
	7.
	 	Other Availability	 	Over Advance Privilege	 	$	0	 
	7a.
	 	Other Availability	 	Over advance reduction equal to 50% of eligible licensed inventory	 	 	0	 
	 
	 	 	 	 	 	 	 	 
	8.
	 	Other Availability	 	Invested Cash 	 	 	34,338	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	9.
	 	Total Gross Availability	 	(The  lesser of the  total  of  Lines  5,6,7 and  8  or
 Credit Line of $45,000,000)	 	$	45,000,000	 
	 
	 	 	 	 	 	 	 	 
	10.
	 	Loan Balance	 	 	 	$	4,369,100	 
	 
	 	 	 	 	 	 	 	 
	11.
	 	Trade L/Cs Outstanding	 	 	 	$	17,718,596	 
	 
	 	 	 	 	 	 	 	 
	12.
	 	Total of FX, SBLC, BA, and Bill of Lading Guarantee Exposures	 	$	555,263	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	13.
	 	Net Availability (Line 9 minus the total of Lines 10, 11, & 12)	 	$	22,357,041	 
	 
	 	 	 	 	 	 	 

The Company named in the box above labeled “Company Name” (the “Company”) by its duly
authorized officer signing below, hereby certifies that (a) the information set forth in
this certificate is true and correct as of the date(s) indicated herein and (b) the Company
is in compliance with all terms and provisions in (i) the loan or other agreement between
the Company and CIT pursuant to which this certificate is delivered (the “Agreement”) and
(ii) any and all documents, instruments and agreements evidencing, governing or securing
the Agreement or otherwise executed in connection therewith.

	 	 	 	 	 

	
	 	 	 	
	 
	 	 	 	 
	Prepared by
	 	 
	 	Authorized Signature

 

 

Exhibit F

AMENDED AND RESTATED

CONTINUING AGREEMENT FOR ISSUANCE OF STEAMSHIP

GUARANTEES/AIR FREIGHT RELEASES

April 3, 2008

The CIT Group/Commercial Services, Inc.

11 West 42nd Street

New York, New York 10036

     In consideration of any Steamship Guarantees or Air Freight Releases executed by you or any
of your correspondents or agents upon our request, we agree to indemnify you against, and hold you
harmless from, any claim, lawsuit, loss, liability or damage, and to reimburse you promptly on
demand for all payments made by you therefor, together with all charges and expenses, including
counsel fees, which you may sustain or incur by reason of your complying with such request.

     We agree from time to time upon your demand to deposit with you as security, cash or other
collateral as you may request, and as further security for the fulfillment of our obligations
hereunder we hereby give you a lien upon and authorize you to assert and exercise a right of
set-off and/or sale against all deposits, securities and other property of ours now or at any time
hereafter for your possession.

     In the event any guarantee or release has been executed in connection with any Letter of
Credit issued by you, we hereby authorize and request you to honor any and all drafts drawn under
such Letter of Credit, even though the accompanying documents do not in all respects conform to the
requirements of the Letter of Credit or certain of such documents do not accompany the draft or
drafts, and we hereby agree that any such discrepancies, defects or omissions in the accompanying
documents shall in no way prejudice your rights against us under this application, agreement and
guarantee covering the issuance of the Letter of Credit.

 

 

	 	 	 	 	 
	 	G-III LEATHER FASHIONS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Neal S. Nackman  	 
	 	 	Title:  	Vice President — Finance 	 
	 
	 	J. PERCY FOR MARVIN RICHARDS, LTD.

 	 
	 	By:  	 	 
	 	 	Name:  	Neal S. Nackman  	 
	 	 	Title:  	Secretary 	 
	 
	 	CK OUTERWEAR, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	Neal S. Nackman  	 
	 	 	Title:  	Secretary 	 
	 
	 	A. MARC & CO., INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Neal S. Nackman 	 
	 	 	Title:  	Vice President — Finance and Secretary 	 
	 
	 	ANDREW & SUZANNE COMPANY INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Neal S. Nackman 	 
	 	 	Title:  	Vice President — Finance and Secretary 	 
	 

Signature Page to A&R Continuing Agreement for Issuance of Steamship Guarantees — 1415206

 

 

EXHIBIT H

G-III LEATHER FASHIONS, INC.

Finished Goods (incl. I/T)

As of

	 	 	 	 	 	 	 	 	 

	Total Company:
	 	 	 	 	 	 	 	 
	Available to Sell
	 	 	 	 	 	 	0	 
	I/Ts:  Dock
	 	$	0	 	 	 	 	 
	L/C Paid
	 	 	0	 	 	 	 	 
	Not Paid
	 	$	0	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	$	0	 
	13% of I/T
	 	 	 	 	 	$	0	 
	 
	 	 	 	 	 	 	 
	Total Company
	 	 	 	 	 	$	0	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Non — Licensed Inventory (Eligible):	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Available to Sell
	 	 	 	 	 	$	0	 
	I/Ts:  Dock
	 	 	 	 	 	 	0	 
	L/C Paid
	 	 	 	 	 	 	0	 
	Not Paid
	 	 	 	 	 	 	0	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	$	0	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Licensed Inventory (Eligible):	 	 	 	 
	Available to Sell
	 	 	 	 	 	$	0	 
	I/Ts:  Dock
	 	 	 	 	 	 	0	 
	L/C Paid
	 	 	 	 	 	 	0	 
	Not Paid
	 	 	 	 	 	 	0	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	$	0	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Total Eligible Licensed Inventory	 	$	0	 
	 
	 	 	 	 	 	 	 

 

 

EXHIBIT I

     INVHNDLC

DATE-

* * * * * G-III APPAREL * * * * *

INVENTORY ANALYSIS REPORT FOR LDPCOST VS LCM COST

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	NET ACT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SEA STYLE DESCRIPTION INV ON HAND	 	COST LCM COST	 	 	ACT VALUE	 	 	LCM VALUE	 	 	DIFFERENCE	 	 	OPEN UNITS	 	 	OPEN $$	 	 	ATS UNITS	 	 	ACT ATS $$	 	 	LCM ATS $$	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	GRAND TOTAL
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	RECAP BY DIVISION
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	G-III/BILL BLASS MZ
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	G-III/BLACK RIVET
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	G-III/BILL BLASS WO
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	G-III/JAMSE DEAN
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	G-III/JNY MENS
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	G-III/JNY WOOLS
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	G-III/BEAN JOHN
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	G-III WOMENS LEATHE
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	G-III MENS LEATHER
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	G-III/TIMBERLAND
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	G-III/J L COLEBROOK
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	G-III/K C WOMENS OO
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	G-III/COLE
HAAN WOMEN
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	G-III/K C MENS OOTE
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	G-III/COLE HAAN MEN
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	G-III/LICENSING
DIV
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	G-III/HOT-MARKETS
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	G-III/CLASSICS
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	G-III/BLACK
RIVET M
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	G-III/SIENA
STUDIO
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	G-III/NINE WEST OUT
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SIENA
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

Exhibit J

Form
of Key Items Report

Please see next page

 

 

G-III Leather Fashions, Inc.

Key Items Report

January 2008

($000)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Marvin	 	 	 	 	 	 	 	 	 	 
	 	 	Consolidated	 	 	G-III Leather	 	 	G-III HK	 	 	Kostroma	 	 	Richards	 	 	Retail	 	 	Global	 	 	Wee Beez	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1 Accounts Receivable
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Balance per runs 
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Reserve, doubtful accounts
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Reserve, discounts/allowances
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 
	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Marvin	 	 	 	 
	 	 	Consolidated	 	 	G-III Leather	 	 	Richards	 	 	Retail	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2 Inventory by location
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	NJ/CT warehouses
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 
	Public warehouses

	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 
	
At sub-contractors (NY/NJ)
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 
	China
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other locations
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 
	Overhead
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 
	In-transit
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 
	Reserve
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 
	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Marvin	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Apparel	 	 	 	 
	 	 	Consolidated	 	 	G-III Leather	 	 	G-III HK	 	 	Kostroma	 	 	Richards	 	 	Balihides	 	 	Retail	 	 	Wee Beez	 	 	Group	 	 	Brands	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3 Accounts Payable
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Accounts Payable
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Accrued Expenses
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 
	Total
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 
	 	 	 

 

 

G-III Leather Fashions, Inc.

Key Items Report

January 2008

($000)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	TOTAL	 	 	FEB	 	 	MAR	 	 	APR	 	 	MAY	 	 	JUN	 	 	JUL	 	 	AUG-JAN	 
	 	4	 	 	Unshipped orders 1/31/08
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	AA	 	Andrew Marc Accessories
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	AD	 	AM/Dockers
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	AL	 	AM/Levi’s
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	AM	 	Andrew Marc Mens
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	AW	 	Andrew Marc Womens
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CD	 	CK Dresses
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CM	 	CK Mens
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CO	 	Coldwater Creek
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CS	 	Calvin Klein Suits
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CW	 	CK Womens
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ED	 	Ellen Tracy Dresses
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	EJ	 	Eliza J
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	EX	 	Exsto
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	HD	 	Beyonce
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	IC	 	Industrial Cotton
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	JH	 	Jessica Howard
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	JW	 	Jones Womens
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MM	 	Marc NY Mens
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MR	 	Marvin Richards
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MW	 	Marc NY Womens
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PF	 	CK Performance
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PL	 	Private Label
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SD	 	Sean John Dresses
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SJ	 	Sean John Mens
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SL	 	Sean John Sportswear
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SW	 	Sean John Womens
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	00	 	 	Womens Leather
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	01	 	 	Mens Leather
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	11	 	 	Guess Mens
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	15	 	 	Tommy Hilfiger
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	16	 	 	Izod Mens
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	17	 	 	Kenneth Cole
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	22	 	 	Guess Womens
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	26	 	 	Izod Women
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	33	 	 	Winlit Women
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	35	 	 	Cole Haan Women
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	44	 	 	Kenneth Cole Mens
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	53	 	 	Cole Haan Men
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	58	 	 	Licensing
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	62	 	 	Hot Market
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	66	 	 	Winlit Mens
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	77	 	 	La Nouvelle
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	80	 	 	Black Rivet Mens
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	86	 	 	Studio
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	88	 	 	Ellen Tracy
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	9W	 	 	Nine West
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	99	 	 	Siena /Other
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Total
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 
	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

G-III Leather Fashions, Inc.

Key Items Report

January 2008

($000)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	TOTAL	 	 	FEB	 	 	MAR	 	 	APR	 	 	MAY	 	 	JUN	 	 	JUL	 	 	AUG-JAN	 
	 	 	 	 	Unshipped orders 1/31/07
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CD	 	CK Dresses
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CM	 	CK Mens
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CS	 	Calvin Klein Suits
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CW	 	CK Womens
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	EX	 	Exsto
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	HD	 	Beyonce
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	JW	 	Jones Womens
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	LM	 	London Fog Mens
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	LW	 	London Fog Womens
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MR	 	Marvin Richards
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PL	 	Private Label
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SJ	 	Sean John
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SL	 	Sean John Sportswear
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SW	 	Sean John Womens
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	00	 	 	Womens Leather
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	01	 	 	Mens Leather
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	11	 	 	Guess Mens
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	15	 	 	Tommy Hilfiger
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	16	 	 	Izod Mens
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	17	 	 	Kenneth Cole
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	22	 	 	Guess Womens
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	26	 	 	Izod Women
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	33	 	 	Winlit Women
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	35	 	 	Cole Haan Women
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	44	 	 	Kenneth Cole Mens
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	53	 	 	Cole Haan Men
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	57	 	 	Pacific Trails Mens
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	58	 	 	Licensing
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	62	 	 	Hot Market
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	66	 	 	Winlit Mens
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	77	 	 	La Nouvelle
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	80	 	 	Black Rivet Mens
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	86	 	 	Studio
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	88	 	 	Ellen Tracy
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	9W	 	 	Nine West
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	90	 	 	BCBG
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	99	 	 	Siena /Other
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Total
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 
	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

G-III Leather Fashions, Inc.

Key Items Report

January 2008

($000)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	G-III Leather	 	 	G-III HK	 	 	G-III Retail	 	 	G-III Brands	 	 	Kostroma	 	 	Wee Beez	 	 	Balihides	 	 	Holding	 	 	Global	 	 	GIII-Apparel	 	 	Richards	 	 	Consol	 	 	Total	 
	5 Intercompany balances
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	G-III Leather
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	G-III HK
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	G-III Retail
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	G-III Brands
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	Kostroma
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	Wee Beez
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	P.T. Balihides
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	Indawa Holding
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	Global International
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	G-III Apparel
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	Marvin Richards
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	Consolidation
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	 	 	 
	 
	0	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 
	 	 	 
	 
	 	 	0

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Jan-08	 	 	 	 	 	 	 	 	 	 	Jan-07	 	 	 	 	 	 	 	 	 	 	Jan-08	 	 	 	 
	 	 	 	 	 	 	Actual	 	 	 	 	 	 	 	 	 	 	Prior Year	 	 	 	 	 	 	 	 	 	 	Plan	 	 	 	 
	 	 	Sales	 	 	GM	 	 	GM%	 	 	Sales	 	 	GM	 	 	GM%	 	 	Sales	 	 	GM	 	 	GM%	 
	6 Divisional Sales and Gross Margin
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Womens
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Studio
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Mens
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	JL Colebrook
	 	 	 	 	SEE ATTACHED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cole Haan Men’s
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Sports Licensing
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Kenneth Cole
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Sean John
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Jones Wools
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Nine West
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Jones NY
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cole Haan Women’s
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Retail
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PT Balihides
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other CGS
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 
	Total
	 	 	0	 	 	 	0	 	 	 	 	 	 	 	0	 	 	 	0	 	 	 	 	 	 	 	0	 	 	 	0	 	 	 	 	 
	Less: TLC/FLC Adjustment
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 
	Total, Net
	 	 	0	 	 	 	0	 	 	 	 	 	 	 	0	 	 	 	0	 	 	 	 	 	 	 	0	 	 	 	0	 	 	 	 	 
	 	 	 

Capital expenditures:

Lease expenditures:

Capital leases, principal

Operating leases, annualized, net of terminations

 

 

Exhibit 7.5

FORM OF LICENSOR CONSENT LETTER1 

[NAME AND ADDRESS OF LICENSOR]

 

 

                     
                              April 3, 2008

The CIT Group/Commercial Services, Inc., as Agent

11 West 42nd Street

New York, New York 10036

Gentlemen:

     We understand that The CIT Group/Commercial Services, Inc. (“CIT”), certain other
financial institutions (together with CIT, the “Lenders”) and CIT, as agent for the Lenders (in
such capacity, “Agent”) and [G-III Leather Fashions, Inc.] [J. Percy for Marvin Richards, Ltd.]
[CK Outerwear, LLC][A. Marc & Co., Inc.] [Andrew & Suzanne Company Inc.] (“Licensee”) are
about to enter into or have entered into an Amended and Restated Financing Agreement and other
related documents (all such documents, as amended, restated, supplemented or otherwise modified
from time to time, the “Loan Documents”) to, inter alia, provide for the ongoing
working capital needs of Licensee. The undersigned has granted Licensee the right to use the
[define licensed Trademarks and other IP] and distribute the [describe products] (herein, the
“Products”) pursuant to the [name of agreement] by and between the undersigned and
Licensee
dated ________ __, 200_ (as amended, restated, supplemented or otherwise modified from time to
time, the “Agreement”), in the territories set forth in the Agreement. All capitalized
terms not otherwise defined herein shall have the meaning given to them in the Loan Documents.

     In order to induce the Lenders to grant financial accommodations to Licensee, the undersigned
hereby acknowledges that in connection with the exercise of your rights under the Loan Documents
with respect to the Products, you shall be entitled to the benefit of all of the rights of Licensee
under the Agreement. In addition to those rights, in the event of an Event of Default under the
Loan Documents or if the Agreement is terminated for any reason whatsoever (notice of which
termination will be promptly given by the undersigned to Agent) the undersigned consents to the
sale by Agent of the Products which are subject to Agent’s security interests, with all tags,
labels, wrapping and packaging material and any other indicia of the Products, in each case subject
to the terms of the Agreement. Agent shall not be liable for the payment of any royalties or other
license fees on the sale of Products to the extent such Products are not sold by Agent (such
royalties and license fees to remain the obligation of Licensee), but Agent shall be liable for the
payment of any royalties or other license fees under the Agreement on the sale of Products to the
extent such Products are sold by Agent.

 

			
	1	 	This is a form that may need to be modified to conform to a specific license
agreement

 

 

     The undersigned recognizes and acknowledges that any claim or claims that Agent has or
may hereafter have against the inventory or other property of Licensee by virtue of the
aforementioned Loan Documents is superior to any lien or claim of any nature which the undersigned
now has or may hereafter have on such inventory or other property of Licensee by statute,
agreement or otherwise.

     Agent and/or Lenders may, without affecting the validity of this consent, extend the terms of
payment of any indebtedness of Licensee to Agent and/or Lenders or alter the performance of any of
the terms and conditions of the Loan Documents, without the consent of the undersigned and without
giving notice thereof to the undersigned.

     The undersigned hereby acknowledges that no event of default exists under the Agreement which
would entitle the undersigned to terminate the Agreement at the present time and if any such event
should occur, the undersigned will promptly notify Agent and Agent shall, simultaneously with
Licensee, have the same time period as Licensee under the Agreement within which to cure such
default or cause Licensee to cure such default.

[SIGNATURE PAGE FOLLOWS]

 

 

     This consent shall inure to the benefit of successors and assigns of Agent and shall be
binding upon the heirs, personal representatives, successors and assigns of the undersigned.

	 	 	 	 	 
	 	Very truly yours, 

[NAME OF LICENSOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	Consented and Agreed to by:

[G-III Leather Fashions, Inc.]

[J. Percy for Marvin Richards, Ltd.]

[CK Outerwear, LLC]

[A. Marc & Co., Inc.]

[Andrew & Suzanne Company Inc.]

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

 

 

Exhibit 7.6 

[FORM OF] LANDLORD’S WAIVER AND CONSENT

NAME OF RECORD OWNER OF REAL PROPERTY: ______________________ (“Landlord”)

ADDRESS OF REAL PROPERTY: ________________________________ (the “Premises”)

     WHEREAS, Landlord is the owner of the Premises, and represents that Landlord has or is about
to enter into a lease transaction (the “Lease”) with [G-III Leather Fashions, Inc.] [J. Percy for
Marvin Richards, Ltd.] [CK Outerwear, LLC][A. Marc & Co., Inc.][Andrew & Suzanne Company Inc.]
(“Borrower”) pursuant to which Borrower has or will acquire a leasehold interest in all or a
portion of the Premises; and

     WHEREAS, The CIT Group/Commercial Services, Inc. (“CIT”), certain financial institutions
(including CIT, the “Lenders”) and CIT, as Agent for the Lenders (in such capacity, “Agent”) have
or are about to enter into a financing transaction with Borrower and related companies
(collectively with Borrower, individually and collectively, the “Company”); to secure such
financing, each Company has granted to Agent for the benefit of Lenders a security interest and
lien in the tangible and intangible personal property of such Company, including, without
limitation, goods, inventory, machinery and equipment, together with all additions, substitutions,
replacements and improvements to, and the products and proceeds of the foregoing (collectively, the
“Collateral”); and

     WHEREAS, all or a portion of the Collateral may from time to time be located at the
Premises or may become wholly or partially affixed to the Premises;

     NOW THEREFORE, in consideration of any financial accommodation extended by Agent and/or
Lenders to Company at any time, and other good and valuable consideration the receipt and
sufficiency of which Landlord hereby acknowledges, Landlord hereby agrees as follows:

     1. A true and correct copy of the Lease is attached hereto as Exhibit A. The Lease is
in full force and effect and Landlord is not aware of any existing default under the Lease.

     2. The Collateral may be stored, utilized and/or installed at the Premises and shall
not be deemed a fixture or part of the real estate but shall at all times be considered personal
property, whether or not any of the Collateral becomes so related to the real estate that an
interest
therein arises under real estate law.

     3. Until such time as the obligations of Company to Agent and/or Lenders are paid
in full, Landlord disclaims any interest in the Collateral, and agrees not to distrain or levy
upon any of the Collateral or to assert any claim against the Collateral for any reason.

     4. Agent or its representatives may enter upon the Premises at any time to inspect or
remove the Collateral, and may advertise and conduct public auctions or private sales of the
Collateral at the Premises, in each case without liability of Agent to Landlord; provided
however,

 

 

that Agent shall promptly repair, at Agent’s expense, any physical damage to the Premises actually
caused by said removal by Agent. Agent shall not be liable for any diminution in value of the
Premises caused by the absence of Collateral actually removed or by any necessity of replacing the
Collateral.

     5. Landlord shall not interfere with any sale of the Collateral, by public auction or
otherwise, conducted by or on behalf of Agent on the Premises.

     6. Landlord agrees to provide Agent with written notice of any default or claimed
default by Borrower under the Lease, and prior to the termination of the Lease, to permit
Agent
the same opportunity to cure or cause to be cured such default as is granted Borrower under
the
Lease, provided, however that Agent shall have at least ten (10) days following receipt of
said
notice to cure such default. Landlord will permit Agent to remain on the Premises for a period
of up to ninety (90) days following receipt by Agent of written notice from Landlord that
Landlord
is in possession and control of the Premises, has terminated the Lease and is directing
removal of
the Collateral, subject, however, to the payment to Landlord by Lender of the basic rent due
under the Lease for the period of occupancy by Agent, pro-rated on per diem basis determined
on a 30 day month. Agent’s right to occupy the Premises under the preceding sentence shall be
extended for the time period Agent is prohibited from selling the Collateral due to the
imposition
of the automatic stay by the filing of bankruptcy proceedings by or against any Company. Agent
shall not assume nor be liable for any unperformed or unpaid obligations of Borrower under the
Lease.

     7. This waiver shall inure to the benefit of Agent, its successors and assigns and
shall be binding upon Landlord, its heirs, assigns, representatives and successors.

     8. All notices to Agent hereunder shall be in writing, sent by certified mail, and shall
be addressed to Agent at the following address: 11 West 42nd Street, New York, New
York 10036.

Dated this 2nd day of April, 2008.

	 	 	 	 	 	 	 	 	 	 	 

	Witnessed By:	 	 	LANDLORD:	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	By:
	 	 
	 

	Name:
	 	 
	 	 	Name:
	 	 
	 

	Title:
	 	 
	 	 	Title:
	 	 

 

 

	 	 	 	 	 	 	 

	STATE OF ________________

	 	 	)	 	 	 
	 

	 	 	:	 	 	ss.:
	COUNTY OF _______________

	 	 	)	 	 	 

     On the _______ day of __________, 2008, before me personally came ____________
to me known, who, being by me duly sworn did depose and say that s/he is the ____________
of __________________________, the corporation and landlord described
in and which executed the above instrument; and that s/he signed her/his name thereto by order of the
board of directors of said corporation.

	 	 	 	 	 
	 	  	
 	 
	 	 	Notary Public 	 
	 	 	 	 

 

 

	 	 	 	 	 

EXHIBIT A

[COPY OF LEASE]

 

 

Schedule 1.1 (a)

	 	 	 	 	 
	 	 	IDB Leasing Inc. 511	 	IDB Leasing Inc. 511
	 	 	Fifth Avenue New	 	Fifth Avenue New
	Lender	 	York, NY 10017	 	York, NY 10017
	Master lease schedule
	 	#003	 	#004
	Amount Outstanding
	 	$128,550.33	 	$497,461.86
	End of Term
	 	August 31, 2007	 	September 28, 2008
	Description of
Equipment
	 	Computer hardware	 	Leasehold improvements

 

 

Schedule 1.1(b) Description of Real Estate

     G-III Leather Fashions, Inc.

Lease dated February 1, 2003 between 345 W. 37* Corp. (Lessor) and G-III Leather Fashions,
Inc. (Lessee) (and amendment) for premises located at 341-345 W. 37th Street,
New York, NY 10018.

Lease agreement dated January 31, 1994 between 500-512 Seventh Avenue Limited Partnership, (Lessor)
and G-III Leather Fashions, Inc. (Lessee) (and amendment) for premises located on the
33rd floor of 512 Seventh Avenue, New York, NY 10018.

Agreement of Sublease dated December 17, 2003 between Loan Pricing Corporation (Sublessor) and
G-III Leather Fashions, Inc. (Lessee) (and amendments) for premises located at 500-506 Seventh
Avenue, New York, NY 10018.

Agreement of Lease dated June 1993, between 500-512 Seventh Avenue Limited Partnership (Lessor) and
G-III Leather Fashions, Inc. (Lessee) (and amendment) for premises located on the 34th
and 35th floor of 512 Seventh Avenue, New York, NY 10018.

Lease dated September 21, 1993 between Hartz Mountain Associates (Lessor) and G-III Leather
Fashions, Inc. (Lessee) (and subsequent Modification Agreements 1-4) for premises located at 1000
Secaucus Road, Secaucus, NJ 07094.

     J. Percy for Marvin Richards, Ltd.

Lease dated July 6, 2001 between Heller Family LLC (Lessor) and J. Percy for Mandn Richards, Ltd.
(Lessee) for premises located at 275 Mill Road, Edison, NJ 08837.

Agreement of Lease dated March 1998 between 500-512 Seventh Avenue Associates (Lessor) and J. Percy
for Marvin Richards, Ltd. (Lessee) (and amendment) for premises located on the 10th
floor of 512 Seventh Avenue, New York, NY 10018.

Agreement of Lease dated November 25, 2003 between 500-512 Seventh Avenue Associates (Lessor) and
J. Percy for Marvin Richards, Ltd. (Lessee) (and amendments) for premises located on the
24th floor of 512 Seventh Avenue, New York, NY 10018.

     CK Outerwear. LLC

No real property leases.

-2-

 

Schedule 1.1(c) Existing Bankers Acceptances

None.

-3-

 

Schedule 1.1(d) Commercial Letters of Credit

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Letter of Credit	 	 	 	Issue	 	 	 	Available
	Number	 	Beneficiary	 	Date	 	Expiry Date	 	Amount
	 	64088194	 	 	ANHUI TECHNOLOGY IMP.
AND EXP.

	 	Jun 17, 2005
	 	Sep 7, 2005
	 	$	346,532.00	 
	 	64088235	 	 	APOLLO INTERNATIONAL LTD.

	 	Jun 29, 2005
	 	Jul 30, 2005
	 	 	48,166.50	 
	 	64088236	 	 	APOLLO INTERNATIONAL LTD.

	 	Jun 29, 2005
	 	Aug 15, 2005
	 	 	55,206.70	 
	 	64088092	 	 	APOLLO INTERNATIONAL LTD.

	 	May 16, 2005
	 	Jun 30, 2005
	 	 	45,850.00	 
	 	64088098	 	 	APOLLO INTERNATIONAL LTD.

	 	May 17, 2005
	 	JullO, 2005
	 	 	64,499.20	 
	 	64088163	 	 	ASIA UNITED GARMENT 

MANUFACTURING

	 	Jun 6, 2005
	 	Aug 15, 2005
	 	 	324,283.20	 
	 	64088164	 	 	ASIA UNITED GARMENT 

MANUFACTURING

	 	Jun 6, 2005
	 	Jul 15, 2005
	 	 	66,300.00	 
	 	64088169	 	 	CARNIVAL INDUSTRIAL 

CORPORATION

	 	Jun 6, 2005
	 	Aug 15, 2005
	 	 	337,510.32	 
	 	64088233	 	 	CHATHAM INDUSTRIES LTD.

	 	Jun 27, 2005
	 	Aug 12, 2005
	 	 	216,192.65	 
	 	64088126	 	 	CHATHAM INDUSTRIES LTD.

	 	May 24, 2005
	 	Jul 30, 2005
	 	 	239,750.20	 
	 	64088185	 	 	CHATHAM INDUSTRIES LTD.

	 	Jun 16, 2005
	 	Jul 13, 2005
	 	 	172,632.35	 
	 	64088090	 	 	CHINA TUHSU SUNRY 

DEVELOPMENT

	 	May 12, 2005
	 	Jun 30, 2005
	 	 	111,800.00	 
	 	64088219	 	 	CLTPORT TRADING LTD.

	 	Jun 27, 2005
	 	rAuR 15, 2G05
	 	 	112,238.00	 
	 	64088240	 	 	CLIPORT TRADING LTD.

	 	Jun 29, 2005
	 	Aug 15, 2005
	 	 	51,480.00	 
	 	64088162	 	 	CLTPORT TRADFNG LTD.

	 	Jun 6, 2005
	 	Jul 25, 2005
	 	 	23,700.00	 
	 	64088145	 	 	COMUS INTERNATIONA!.
CO., LTD.

	 	Jun 2, 2005
	 	Jul 15, 2005
	 	 	40,553.00	 
	 	64088142	 	 	CONCERIA SAN GIULIANO

	 	Jun 1, 2005
	 	Jul 15, 2005
	 	 	18,392.85	 
	 	64088214	 	 	CSJ CORPORATION

	 	Jun 22, 2005
	 	Jul 17, 2005
	 	 	27,903.60	 
	 	64088215	 	 	CS J CORPORATION

	 	Jun 22, 2005
	 	Jul 15, 2005
	 	 	18,900.00	 
	 	64088246	 	 	CSJ CORPORATION

	 	Jun 30, 2005
	 	Aug 30, 2005
	 	 	139,949.10	 
	 	64088227	 	 	DAE HO TEXTILE CO, LTD.

	 	Jun 27, 2005
	 	Jul 20, 2005
	 	 	30,138.00	 
	 	64088248	 	 	DAE HO TEXTILE CO, LTD.

	 	Jul 5, 2005
	 	Aug 15, 2005
	 	 	310,340.00	 
	 	64088141	 	 	DALIAN HATLONG GARMENT
CO, LTD.

	 	Jun 1, 2005
	 	Jul 25, 2005
	 	 	156,352.40	 
	 	64088140	 	 	DERKON DERIVE 

KONFEKSIYON SANAYI

	 	Jun 1, 2005
	 	Jul 30, 2005
	 	 	25,000.00	 
	 	64088189	 	 	DK GARMENT KOREA

	 	Jun 16, 2005
	 	Aug 2, 2005
	 	 	120,638.66	 
	 	64088200	 	 	DK GARMENT KOREA

	 	Jun 17, 2005
	 	Aug 2, 2005
	 	$	254,459.91	 
	 	64088179	 	 	EXCELLENT JADE LIMITED

	 	Jun 9, 2005
	 	Jul 11, 2005
	 	 	46,330.25	 

-4-

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Letter of Credit	 	 	 	Issue	 	 	 	Available
	Number	 	Beneficiary	 	Date	 	Expiry Date	 	Amount
	 	64088097	 	 	KENTEX (ORIENT) ENTERPRISES
LTD.

	 	May 17, 2005
	 	Jul 15, 2005
	 	 	86,655.00	 
	 	64088203	 	 	KENTEX (ORIENT) ENTERPRISES
LTD.

	 	Jun 17, 2005
	 	Jul 15, 2005
	 	 	361,273.80	 
	 	64088132	 	 	MARSLAND INDUSTRIES LTD.

	 	May 26, 2005
	 	Aug 15, 2005
	 	 	329,486.40	 
	 	64088204	 	 	MARSLAND INDUSTRIES LTD.

	 	Jun 21, 2005
	 	Aug 5, 2005
	 	 	45,700.00	 
	 	64088244	 	 	MINGO INTERNATIONAL LIMITED

	 	Jun 30, 2005
	 	Aug 15, 2005
	 	 	826,897.58	 
	 	64088137	 	 	MINGO INTERNATIONAL LIMITED

	 	Jun 1, 2005
	 	Jul 15, 2005
	 	 	38,987.60	 
	 	64088138	 	 	MINGO INTERNATIONAL LIMITED

	 	Jun 1, 2005
	 	Jul 15, 2005
	 	 	102,445.20	 
	 	64088174	 	 	NANJING HOLYTON IMPORT AND 

EXPORT

	 	Jun 8, 2005
	 	Jul 30, 2005
	 	 	40,860.00	 
	 	64088175	 	 	NANJING HOLYTON IMPORT AND 

EXPORT

	 	Jun 8, 2005
	 	Aug 10, 2005
	 	 	71,559.20	 
	 	64088195	 	 	NANJING NICE GATN(HG)
GARMENT CO.

	 	Jun 17, 2005
	 	Jul 15, 2005
	 	 	15,372.90	 
	 	64088250	 	 	NANJING NICE GAIN(HG)
GARMENTS CO.

	 	Jul 7, 2005
	 	Aug 15, 2005
	 	 	59,017.40	 
	 	64088160	 	 	NANJING NICE GAIN(HG)
GARMENTS CO.

	 	Jun 6, 2005
	 	Aug 29, 2005
	 	 	67,001.00	 
	 	64088161	 	 	NANJING NICE GAIN(HG)
GARMENTS CO.

	 	Jun 6, 2005
	 	Aug 30, 2005
	 	 	392,290.20	 
	 	64088182	 	 	NANJING NICE GAIN(HG)
GARMENTS CO.

	 	Jun 13, 2005
	 	Sep 15, 2005
	 	 	501,364.50	 
	 	64088191	 	 	OH KWANG TRADING CO.

	 	Jun 16, 2005
	 	Aug 15, 2005
	 	 	184,076.00	 
	 	64088232	 	 	OUTFIT WORKSHOP LTD.

	 	Jun 27, 2005
	 	Jul 30, 2005
	 	 	532^566^27	 
	 	64088065	 	 	OUTFIT WORKSHOP LTD.

	 	Apr 22, 2005
	 	Jul 15, 2005
	 	 	43,444.96	 
	 	64088106	 	 	OUTFIT WORKSHOP LTD.

	 	May 20, 2005
	 	Jul 15, 2005
	 	 	80,592.00	 
	 	64088109	 	 	OUTFIT WORKSHOP LTD.

	 	May 20, 2005
	 	Aug 5, 2005
	 	 	1,683,554.40	 
	 	64088110	 	 	OUTFIT WORKSHOP LTD.

	 	May 20, 2005
	 	Jul 15, 2005
	 	 	704,239.20	 
	 	64088133	 	 	OUTFIT WORKSHOP LTD.

	 	May 26, 2005
	 	Aug 10, 2005
	 	 	84,503.20	 
	 	64088134	 	 	OUTFIT WORKSHOP LTD.

	 	May 26, 2005
	 	Aug 10, 2005
	 	 	148,060.20	 
	 	64088149	 	 	OUTFIT WORKSHOP LTD.

	 	Jun 2, 2005
	 	Jul 15, 2005
	 	 	78,263.25	 
	 	64088150	 	 	OUTFIT WORKSHOP LTD.

	 	Jun 2, 2005
	 	Jul 25, 2005
	 	 	789,212.08	 
	 	64088237	 	 	P AND G ENTERPRISES PVT. LTD.

	 	Jun 29, 2005
	 	Aug 15, 2005
	 	 	13,920.00	 
	 	64088231	 	 	POONG IN TRADING CO., LTD.

	 	Jun 27, 2005
	 	Aug 15, 2005
	 	 	157,691.40	 
	 	64088096	 	 	POONG FN TRADING CO., LTD.

	 	May 16, 2005
	 	Jul 15, 2005
	 	$	561,116.20	 
	 	64088156	 	 	QTNGDAO DEBAO LEATHER 

PRODUCTION

	 	Jun 6, 2005
	 	Jul 15, 2005
	 	 	132,540.00	 

-5-

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Letter of Credit	 	 	 	Issue	 	 	 	Available
	Number	 	Beneficiary	 	Date	 	Expiry Date	 	Amount
	 	64088068	 	 	SNOW COAST INC.

	 	May 3, 2005
	 	Jul 5, 2005
	 	 	104.236.80	 
	 	64088103	 	 	SNOW COAST ENC.

	 	May 18, 2005
	 	Jul 15, 2005
	 	 	131,748.00	 
	 	64088155	 	 	SNOW COAST INC.

	 	Jun 6, 2005
	 	Aug 15, 2005
	 	 	450,103.51	 
	 	64088157	 	 	SNOW COAST INC.

	 	Jun 6, 2005
	 	Aug 20, 2005
	 	 	37,598.40	 
	 	64088158	 	 	SNOW COAST INC.

	 	Jun 6, 2005
	 	Aug 15, 2005
	 	 	18,000.00	 
	 	64088159	 	 	SNOW COAST INC.

	 	Jim 6, 2005
	 	Aug 30, 2005
	 	 	279,040.80	 
	 	64088168	 	 	SOOHYUN TRADING CO.,
LTD.

	 	Jun 6, 2005
	 	Jul 15, 2005
	 	 	28,220.40	 
	 	64088104	 	 	STIG JIANGSU
MACHINERY IMP. AND

	 	May 18, 2005
	 	Jul 25, 2005
	 	 	288,229.35	 
	 	64088243	 	 	SUMEC TEXTILE AND 

LIGHT INDUSTRY

	 	Jun 30, 2005
	 	Aug 5, 2005
	 	 	26,611.20	 
	 	64088052	 	 	SUMEC TEXTILE AND 

LIGHT INDUSTRY

	 	Apr 21, 2005
	 	Jul 15, 2005
	 	 	214,920.40	 
	 	64088053	 	 	SUMEC TEXTILE AND 

LIGHT INDUSTRY

	 	Apr 21, 2005
	 	Jul 15, 2005
	 	 	14,142.24	 
	 	64088072	 	 	SUNMYONG APPAREL INC.

	 	May 3, 2005
	 	Jun 22, 2005
	 	 	217,192.00	 
	 	64088186	 	 	SUNMYONG APPAREL INC.

	 	Jun 16, 2005
	 	Jul 15, 2005
	 	 	59,245.20	 
	 	64088205	 	 	SUNMYONG APPAREL INC.

	 	Jun 21, 2005
	 	Jul 30, 2005
	 	 	523,922.00	 
	 	64088216	 	 	SYNPLUS, INC.

	 	Jun 27, 2005
	 	Jul 20, 2005
	 	 	70,300.00	 
	 	64088208	 	 	TIANJIN GMT IMP AND 

EXP INC

	 	Jun 22, 2005
	 	Aug 30, 2005
	 	 	46,173.80	 
	 	64088223	 	 	TOSCANO
INTERNATIONAL
TRADING CO.

	 	Jun 27, 2005
	 	Aug 10, 2005
	 	 	46,995.60	 
	 	64088224	 	 	TOSCANO
INTERNATIONAL
TRADING CO.

	 	Jun 27, 2005
	 	Jul 30, 2005
	 	 	145,566.00	 
	 	64088112	 	 	TOSCANO
INTERNATIONAL
TRADING INC.

	 	May 23, 2005
	 	Jul 10, 2005
	 	 	239,095.80	 
	 	64088129	 	 	TOSCANO
INTERNATIONAL
TRADING CO.

	 	May 26, 2005
	 	Jul 12, 2005
	 	 	42,585.00	 
	 	64088165	 	 	TOSCANO
INTERNATIONAL
TRADING CO.

	 	Jun 6, 2005
	 	Jul 15, 2005
	 	 	25,344.00	 
	 	64088180	 	 	TOSCANO
INTERNATIONAL
TRADING CO.

	 	Jun 9, 2005
	 	Aug 25, 2005
	 	 	25,658.00	 
	 	64088234	 	 	TRIAM INTERNATIONAL 

LIMITED

	 	Jun 27, 2005
	 	Aug 3, 2005
	 	 	241,569.67	 
	 	64088245	 	 	TRIAM INTERNATIONAL 

LIMITED

	 	Jun 30, 2005
	 	Aug 3, 2005
	 	$	105,700.00	 
	 	64088136	 	 	TRIAM INTERNATIONAL 

LIMITED

	 	Jun 1, 2005
	 	Jun 30, 2005
	 	 	108.00	 

-6-

 

1197800.1/MSai 1542/056

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Letter of	 	 	 	Issue	 	Expiry	 	Available
	Credit Number	 	Beneficiary	 	Date	 	Date	 	Amount
	 	64088119	 	 	ZHEJIANG WARMTHIA
LEATHER AND FUR
	 	May 23, 2005	 	Jun 30, 2005	 	 	150,774.50	 
	 	64088218	 	 	ZHEJIANG WARMTHIA
LEATHER AND FUR
	 	Jun 27, 2005	 	Aug 16, 2005	 	 	156,832.60	 

Standby Letters of Credit

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Letter of	 	 	 	Issue	 	Expiry	 	Available
	Credit Number	 	Beneficiary	 	Date	 	Date	 	Amount
	 	64146849	 	 	WOORIBANK
	 	 	04/01/2005	 	 	 	11/30/2005	 	 	$	1,500,000.00	 
	 	00113176	 	 	HARTZ MOUNTAIN ASSOCIATES
	 	 	03/31/2007	 	 	 	02/28/2006	 	 	 	151,622.50	 

Airway Releases

	 	 	 	 	 
	Instrument No.	 	Outstanding Amount
	00000068006805
	 	$	940.00	 
	00000068007004
	 	 	10,947.20	 
	00000068007052
	 	 	14,091.00	 
	00000068007067
	 	 	3,015.00	 
	00000068007069
	 	 	3,660.00	 
	00000068007137
	 	 	14,141.40	 
	00000068007169
	 	 	1,656.00	 

1197800.1/MSC/l 1542/056

-7-

 

Schedule 1.1(e) Excluded Subsidiaries

Indawa Holding Coip.

Global Apparel Sourcing, Ltd.

Siena Leather Ltd.

-8-

 

Schedule 7.1(b) Companies and Collateral Information

     G-III Leather Fashions, Inc.

Full legal name: G-III Leather Fashions, Inc.

State of Incorporation: New York

Tax I.D. No.: 13-2766681

New York does not issue state organization identification numbers.

Chief executive office address: 512 Seventh Avenue New York, NY 10018

Locations of all Collateral:

Leather Skins Inventory:

Qingdao Cherry Leather Garments Co., Ltd. Xinjiekou, Qingdao

Special Economic Zone Huangdao Area, Qingdao, China

G-HI Distribution Center (G-III Entity)

1000 Secaucus Road, S NJ 07094

Jade Fashion

153 Kossuth Street, Newark, NJ 07105

Jeffco./Distribution Solutions, Inc.

422 Ave. P, Newark, NJ 07105

Beantown

45 Walter Street, Hyde Park, MA 02136

     J. Percy for Marvin Richards, Ltd.

Full legal name: J. Percy for Marvin Richards, Ltd.

State of Incorporation: New York

Tax ID. No.: 13-3270555

New York does not issue state organization identification numbers.

Cliief executive office address: 512 Seventh Avenue New York, NY 10018

Locations of all Collateral:

Capital Style, SA Zona Franca Industrial Santiago,

Dominican Republic

Contex — Drouihba

-9-

 

Schedule 7.1(f) Environmental Matters

None.

-10-

 

Schedule 7.1(i) Taxes

None.

-11-

 

Schedule 7.1(j) ERISA

None.

-12-

 

Schedule 7.1(k) Labor Matters

None.

-13-

 

Schedule 7.5 Licensor Consent Letters

Kenneth Cole NY/Reaction Kenneth Cole

Nine West

Cole Haan

Jones New York/Jones NY Collection

Sean John

Cece Cord

IZOD

House of Dereon

National Football League

National Basketball Association

Major League Baseball

National Hockey League

NHL Canada

Hardwood Classics

Collegiate Licensing Company

CLC/The Yard

-14-

 

Louisville Slugger

United States Tennis Association

NASCAR

World Poker Tour

Guess (Ladies’)

Guess (Men’s)

-15-

 

Schedule 7.6 Landlord Waivers

Landlord Waivers

Landlord: G-III Distribution Center (G-III Entity)

Warehouse Address: 1000 Secaucus Road, Secaucus, NJ 07094

Landlord: Heller Family L.L.C.

Warehouse Address: 275 Mill Road, Edison, NJ 08837

Warehouse Waivers

Landlord: Jade Fashion

Warehouse Address: 153 Kossuth Street, Newark, NJ 07105

Landlord: Impac

Warehouse Address: 809 E. 236 St., Carson, CA 90745

Landlord: Dynamic Distribution Services

Warehouse Address: 200 Central Avenue, S. Keamy, NJ 07306

Landlord: Beantown

Warehouse Address: 45 Walter Street, Hyde Park, MA 02136

Landlord: Jeffco./Distribution Solutions, Inc.

Warehouse Address: 422 Ave. P, Newark, NJ 07105

Landlord: Pacific Terminals (Public Warehouse)

Warehouse Address: 3480 W. Marginal Way SW, Seattle, WA 98106

Landlord: A&P Designs, Inc.

Warehouse Address: 436 Ferry Street, Newark, NJ 07105

Landlord: T.A. Services

Warehouse Address: 900 Passaic Avenue, E. Newark, NJ 07029

Landlord: Yiannis Furs, Inc.

Warehouse Address: 259 West 30th Street, New York, NY 10001

-16-

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