Document:

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                                                                    EXHIBIT 10-9

                             INTERCREDITOR AGREEMENT

     THIS INTERCREDITOR AGREEMENT (this "Intercreditor Agreement"), dated as of
May 31, 2006 (the "Effective Date"), is made by and between CAPITALSOURCE
FINANCE LLC, a Delaware limited liability company, not individually, but in its
capacity as agent (in such capacity, the "Working Capital Agent" (as hereinafter
further defined)) for the benefit of each entity (each a "Working Capital
Lender" and collectively, the "Working Capital Lenders" (as hereinafter further
defined)) who may from time to time be a "Lender" or a "Lender Party" under (and
as defined in) the Working Capital Credit Agreement (as defined below); and CSE
MORTGAGE LLC, a Delaware limited liability company, not individually, but in its
capacity as agent (in such capacity, the "Term Loan Agent" (as hereinafter
further defined)) for the benefit of each entity (each a "Term Loan Lender" and
collectively, the "Term Loan Lenders" (as hereinafter further defined)) who may
from time to time be a "Lender" or a "Lender Party" under (and as defined in)
the Term Loan Financing Agreement (as defined below).

                                    RECITALS:

          A. Working Capital Agent and Working Capital Lenders have entered into
the Working Capital Credit Agreement with the Borrowers (as hereinafter
defined), pursuant to which Working Capital Lenders have made and may, upon
certain terms and conditions, continue to make loans and provide other financial
accommodations to Borrowers secured by a security interest in substantially all
of the assets and properties of Borrowers.

          B. Term Loan Agent and Term Loan Lenders have entered into the Term
Loan Financing Agreement with the Borrowers, pursuant to which Term Loan Lenders
have made term loans to Borrowers secured by security interests in substantially
all of the assets and properties of Borrowers.

          C. Working Capital Agent has been authorized to enter into this
Agreement on behalf of the Working Capital Lenders pursuant to the Working
Capital Credit Agreement, and to bind all Working Capital Lenders pursuant
hereto.

          D. Term Loan Agent has been authorized to enter into this Agreement on
behalf of the Term Loan Lenders pursuant to the Term Loan Financing Agreement,
and to bind all Term Loan Lenders pursuant hereto.

          E. Working Capital Agent and Term Loan Agent desire to enter into this
Intercreditor Agreement to (i) confirm the relative priorities of the respective
security interests of Working Capital Agent and Working Capital Lenders and Term
Loan Agent and Term Loan Lenders in the assets and properties of Borrowers and
any other Obligors, (ii) provide for the orderly sharing among them, in
accordance with such priorities, of the proceeds of such assets and properties
upon any foreclosure thereon or other disposition thereof and (iii) make certain
other agreements relative to the foregoing.

     In consideration of the mutual benefits accruing to Working Capital Agent,
Working Capital Lenders, Term Loan Agent and Term Loan Lenders hereunder and
other good and

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valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto do hereby agree as follows:

     1.   DEFINITIONS.

     As used above and in this Intercreditor Agreement, the following terms
shall have the meanings ascribed to them below:

          1.1 "Accounts" shall mean any "accounts," as such term is defined in
the UCC, now owned or hereafter acquired by any Obligor or in which any Obligor
now has or hereafter acquires any rights (whether or not specifically listed on
any schedule furnished to the Secured Party pursuant hereto or in connection
herewith), and, in any event, shall include, without limitation, all accounts
receivable, book debts and other forms of obligations (other than forms of
obligations evidenced by Chattel Paper, Documents, Investment Property or
Instruments) now owned or hereafter received or acquired by or belonging or
owing to any Obligor (including, without limitation, under any trade names,
styles or divisions thereof) whether arising out of goods sold or leased or
services rendered by any Obligor or from any other transaction, whether or not
the same involves the sale or lease of goods or services by any Obligor
(including, without limitation, any such obligation, that might be characterized
as an account or contract right under the UCC) and all of any Obligor's rights
in, to and under all purchase orders or receipts now owned or hereafter acquired
by it for goods or services, and all of any Obligor's rights to any goods
represented by any of the foregoing (including, without limitation, unpaid
seller's rights of rescission, replevin, reclamation and stoppage in transit and
rights to returned, reclaimed or repossessed goods), and all moneys due or to
become due to any Obligor under all contracts for the sale of goods or the
performance of services or both by any Obligor (whether or not yet earned by
performance on the part of any Obligor or in connection with any other
transaction), now in existence or hereafter occurring, including, without
limitation, the right to receive the proceeds of said purchase orders and
contracts, the right to receive all proceeds of any credit insurance policies
relating thereto issued in any Obligor's favor, and all collateral security,
Supporting Obligations and guarantees of any kind given by any Person with
respect to any of the foregoing.

          1.2 "Agents" shall mean, collectively, the Term Loan Agent and the
Working Capital Agent.

          1.3 "Agreements" shall mean, collectively, the Working Capital Loan
Agreements and the Term Loan Agreements.

          1.4 "Balances" shall mean and include: (i) all property of each
Obligor left with any Lender; (ii) any and all Deposit Accounts of each Obligor
now or hereafter opened with any Lender, together with all funds from time to
time on deposit therein; (iii) all certificates of deposit issued by any Lender
to any Obligor; and (iv) all drafts, checks and other items deposited in or with
any Lender by any Obligor for collection now or hereafter. The term "Balances"
further extends to and includes all "Blocked Accounts" and any "Lockbox
Account," as those quoted terms are defined in the Working Capital Credit
Agreement and the Term Loan Financing Agreement, and all funds from time to time
on deposit therein.

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          1.5 "Borrowers" shall mean LEXINGTON PRECISION CORPORATION, a Delaware
corporation, and LEXINGTON RUBBER GROUP, INC., a Delaware corporation; and their
respective successors and assigns, including, without limitation, any receiver,
trustee or debtor-in-possession on behalf of such Person or on behalf of any
such successor or assign.

          1.6 "Chattel Paper" shall mean any "chattel paper," as such term is
defined in the UCC, including, without limitation, electronic chattel paper and
tangible chattel paper, now owned or hereafter acquired by any Obligor or in
which any Obligor now has or hereafter acquires any rights, wherever located.

          1.7 "Collateral" shall mean, collectively, the Working Capital
Collateral and the Term Loan Collateral.

          1.8 "Commercial Tort Claim" shall mean any "commercial tort claim", as
such term is defined in the UCC, now owned or hereafter acquired by any Obligor
or in which any Obligor now has or hereafter acquires any rights.

          1.9 "Contracts" shall mean all contracts, undertakings, or other
agreements (other than rights evidenced by Chattel Paper, Documents, Investment
Property or Instruments) in or under which any Obligor may now or hereafter have
any right, title or interest, with respect to any Collateral (including any
agreement relating to the terms of payment or the terms of performance thereof).

          1.10 "Debt" shall mean, collectively, (i) Term Loan Debt and (ii)
Working Capital Debt.

          1.11 "Deposit Accounts" shall mean all "deposit accounts", as such
term is defined in the UCC, now or hereafter held in the name of an Obligor by
any Lender.

          1.12 "Documents" shall mean any "documents," as such term is defined
in the UCC, now owned or hereafter acquired by any Obligor or in which any
Obligor now has or hereafter acquires any rights, wherever located, with respect
to any Accounts or any Inventory.

          1.13 "Equipment" shall mean any "equipment", as such term is defined
in the UCC, now owned or hereafter acquired by an Obligor or in which an Obligor
now has or hereafter acquires any rights, wherever located, including, without
limitation, all machinery, motor vehicles, fittings, furniture, furnishings,
Fixtures, molds, discs, tools, stamps, parts, accessories and all replacements
and substitutions therefor or accessions thereto, and all Software embedded
therein.

          1.14 "Event of Default" shall mean each "Event of Default" or similar
term, as such term is defined in any Working Capital Loan Agreement or any Term
Loan Agreement, so long as any such Agreement is in effect.

          1.15 "Exigent Circumstance" shall mean an event or circumstance that
in the judgment of Term Loan Agent, as to the Term Loan Priority Collateral, or
the judgment of Working Capital Agent, as to the Working Capital Priority
Collateral, immediately threatens the value of, or its ability to realize upon,
all or any material portion of such Collateral, including,

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for example, but without limitation, fraudulent removal, concealment or
abscondment thereof, or destruction or material waste thereof, or abandonment
thereof.

          1.16 "Fixtures" shall mean any "fixtures", as such term is defined in
the UCC, now owned or hereafter acquired by an Obligor or in which an Obligor
now has or hereafter acquires any rights and wherever located.

          1.17 "General Intangibles" shall mean any "general intangibles," as
such term is defined in the UCC, now owned or hereafter acquired by any Obligor
or in which any Obligor now has or hereafter acquires any rights with respect to
any Accounts or any Inventory, and, in any event, shall include, without
limitation, all right, title and interest that any Obligor may now or hereafter
have in or under any Contract, causes of action, franchises, tax refund claims,
customer lists, software, data bases, business records data, all claims under
guarantees, security interests or other security held by or granted to any
Obligor to secure payment of the Accounts by an account debtor obligated
thereon, all rights of indemnification and all other intangible property of any
kind and nature relating to any Accounts or any Inventory.

          1.18 "Goods" shall mean any "goods", as such term is defined in the
UCC, now owned or hereafter acquired by any Obligor or in which any Obligor now
has or hereafter acquires any rights and wherever located, including, without
limitation, embedded Software to the extent included therein. Without limitation
of the foregoing, but for avoidance of any doubt, the term "Goods" includes all
Equipment.

          1.19 "Insolvency Proceeding" shall mean, as to any Person, any of the
following: (i) any case or proceeding with respect to such Person under the U.S.
Bankruptcy Code or any other Federal or State bankruptcy, insolvency,
reorganization or other law affecting creditors' rights or any other or similar
proceedings seeking any stay, reorganization, arrangement, composition or
readjustment of the obligations and indebtedness of such Person or (ii) any
proceeding seeking the appointment of any trustee, receiver, liquidator,
custodian or other insolvency official with similar powers with respect to such
Person or any of its assets or (iii) any proceeding for liquidation, dissolution
or other winding up of the business of such Person or (iv) any assignment for
the benefit of creditors or any marshalling of assets of such Person.

          1.20 "Instruments" shall mean any "instrument," as such term is
defined in the UCC, now owned or hereafter acquired by any Obligor or in which
any Obligor now has or hereafter acquires any rights, wherever located, other
than instruments that constitute, or are a part of a group of writings that
constitute, Chattel Paper or Investment Property.

          1.21 "Inventory" shall mean any "inventory," as such term is defined
in the UCC, now owned or hereafter acquired by any Obligor or in which any
Obligor now has or hereafter acquires any rights, wherever located, and, in any
event, shall include, without limitation, all inventory held for sale or lease,
or furnished or to be furnished under a contract of service or that constitute
raw materials, work in process or materials used or consumed or to be used or
consumed in any Obligor's business, or in the processing, packaging, delivery or
shipping of the same, all Inventory returned to or repossessed by any Obligor.

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          1.22 "Investment Property" shall mean any "investment property", as
that term is defined in the UCC, of each Obligor now owned or hereafter acquired
by any Obligor, or in which any Obligor now has or hereafter acquires any
rights. The term "Investment Property" extends to and includes all capital
stock, partnership interests and membership interests in each Person (including
another Borrower or any Obligor) owned by an Obligor.

          1.23 "Lender Agreements" shall mean, collectively, (i) the Working
Capital Loan Agreements and (ii) the Term Loan Agreements.

          1.24 "Lenders" shall mean, collectively, the Working Capital Agent,
the Working Capital Lenders, the Term Loan Agent and the Term Loan Lenders, and
their respective successors and assigns, each being sometimes referred to herein
individually as a "Lender".

          1.25 "Letter-of-Credit Rights" shall mean letter-of-credit rights, as
such term is defined in the UCC, now owned or hereafter acquired by any Obligor,
including, without limitation, rights to payment or performance under a letter
of credit, whether or not such Obligor, as beneficiary, has demanded or is
entitled to demand payment or performance, with respect to any Accounts or any
Inventory.

          1.26 "Lien" shall mean any mortgage, deed of trust, pledge,
hypothecation, assignment, deposit arrangement, security interest, encumbrance
(including, but not limited to, easements, rights of way and the like), lien
(statutory or other), security agreement or transfer intended as security,
including without limitation, any conditional sale or other title retention
agreement, the interest of a lessor under a capital lease or any financing lease
having substantially the same economic effect as any of the foregoing.

          1.27 "Lien Enforcement Action" shall mean (a) any action by any Lender
to foreclose on the Lien of such Person on all or a material portion of the
Collateral, (b) any action by any Lender to take possession of, sell or
otherwise realize (judicially or non-judicially) upon all or a material portion
of the Collateral (including, without limitation, by setoff or notification of
account debtors), and/or (c) the commencement by any Lender of any legal
proceedings against any Obligor or with respect to all or a material portion of
the Collateral to facilitate any of the actions described in clauses (a) and (b)
above. Notwithstanding the foregoing, the term "Lien Enforcement Action" does
not include actions taken by any Working Capital Lender in connection with (i)
cash management services performed for any Obligor, whether at such Obligor's
request or as required by the terms of the Working Capital Credit Agreement as
in effect on the date hereof, or (ii) the collection of Accounts through lockbox
or blocked account arrangements, regardless of whether such collection occurs
prior to or following any Working Capital Default; provided, however, that for
purposes of clarification, the term "Lien Enforcement Action" does include
notification of account debtors to make payments thereon directly to any Lender
or its agent.

          1.28 "Obligors" shall mean, individually and collectively, the
Borrowers together with any Person or Persons at any time or from time to time
liable on or in respect of the Term Loan Debt or the Working Capital Debt, and
each of their respective successors and assigns, including, without limitation,
a receiver, trustee or debtor-in-possession on behalf of such Person or on
behalf of any such successor or assign.

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          1.29 "payment in full" or "paid in full" and phrases of like import
mean (a) with respect to Working Capital Debt, (i) in the case of Working
Capital Debt consisting of outstanding letter of credit accommodations, the
termination of such letter of credit accommodations or the receipt by Working
Capital Agent of cash collateral in an amount equal to 105% of the aggregate
undrawn face amount thereof and (ii) in the case of all other Working Capital
Debt, payment in full thereof in cash or other immediately available funds (or,
so long as the same is accepted voluntarily by Working Capital Lenders, other
property or securities of any Person), and termination of all commitments to
extend any further credit in regard thereto and (b) in the case of Term Loan
Debt, payment in full thereof in cash or other immediately available funds (or
so long as the same is accepted voluntarily by Term Loan Lenders, other property
or securities of any Person), and termination of all commitments to extend any
further credit in regard thereto.

          1.30 "Person" shall mean any individual, sole proprietorship,
partnership, corporation (including without imitation, any corporation that
elects subchapter S status under the Internal Revenue Code of 1986, as amended),
limited liability company, limited liability partnership, business trust,
unincorporated association, joint stock company, trust, joint venture, or other
entity or any government or any agency, instrumentality or political subdivision
thereof.

          1.31 "Proceeds" shall mean "proceeds," as such term is defined the UCC
and, in any event, shall include, without limitation, (i) any and all proceeds
of any insurance, indemnity, warranty or guaranty payable to any Obligor from
time to time with respect to any of the Collateral, (ii) any and all payments
(in any form whatsoever) made or due and payable to Obligor from time to time in
connection with any requisition, confiscation, condemnation, seizure or
forfeiture of all or any part of the Collateral by any governmental body,
authority, bureau or agency (or any person acting under color of governmental
authority), (iii) any and all other amounts from time to time paid or payable
under or in connection with or distributed on account of any of the Collateral
(including, without limitation, all distributions, dividends and other amounts
payable with respect to Investment Property), and (iv) the following types of
property acquired with cash proceeds: Accounts, Chattel Paper, Contracts,
Documents, General Intangibles, Investment Property, Balances, Inventory and
Goods.

          1.32 "Real Property" shall mean all real property, or interests in
real property (including leasehold interests) now owned or hereafter acquired by
an Obligor or in which an Obligor now has or hereafter acquires any rights,
wherever located. Without limitation of the foregoing, for avoidance of any
doubt, the term "Real Property" extends to and includes all "Real Property
Collateral" as that term is defined in the Term Loan Financing Agreement.

          1.33 "Software" shall mean all "software", as such term is defined in
the UCC, now owned or hereafter acquired by any Obligor, other than software
embedded in any category of Goods, including, without limitation, all computer
programs and all supporting information provided in connection with a
transaction related to any program.

          1.34 "Supporting Obligations" means all supporting obligations, as
such term is defined in the UCC, including, without limitation, letters of
credit and guaranties issued in support of Accounts, Chattel Paper, Documents,
General Intangibles, Instruments, or Investment Property.

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          1.35 "Term Loan Agent" shall mean CSE MORTGAGE LLC, a Delaware limited
liability company, in its capacity as Agent pursuant to the Term Loan Financing
Agreement for the benefit and on behalf of Term Loan Lenders, and its successors
and assigns (and including, without limitation, any successor, assignee or
additional Person at any time acting as agent for the benefit of or on behalf of
it and/or Term Loan Lenders).

          1.36 "Term Loan Agreements" shall mean the Term Loan Financing
Agreement, and all agreements, documents and instruments at any time executed
and/or delivered by Borrowers or any Obligor or any other Person with, to or in
favor of Term Loan Agent or any Term Loan Lender in connection therewith or
related thereto, as all of the foregoing now exist or may hereafter be amended,
modified, supplemented, extended, renewed or restated.

          1.37 "Term Loan Collateral" shall mean all assets and properties of
any kind whatsoever, real or personal, tangible or intangible, wherever located,
of Borrowers or any Obligor, in which a Lien is now or hereafter granted,
obtained or otherwise claimed by Term Loan Agent or any Term Loan Lender to
secure payment of any Term Loan Debt.

          1.38 "Term Loan A Debt" shall mean all Term Loan Debt, other than Term
Loan Debt in excess of the Term Loan A Debt Cap.

          1.39 "Term Loan A Debt Cap" shall mean an aggregate amount of Term
Loan Debt equal to the sum Eleven Million Dollars ($11,000,000) plus all
interest, fees, costs, expenses, indemnities and other amounts payable in
respect of the "Term Loan A" (as defined in the Term Loan Financing Agreement)
pursuant to the terms of the Term Loan Agreements, whether or not the same are
added to the principal amount of the Term Loan Debt (including interest that
would be payable as post-petition interest in connection with any Insolvency
Proceeding), less all repayments (including mandatory and voluntary prepayments)
of principal in respect of such Term Loan A made subsequent to the Effective
Date.

          1.40 "Term Loan A Repayment Date" the date on which all Term Loan A
Debt has been paid in full.

          1.41 "Term Loan Debt" shall mean all loans and advances or extensions
of credit made or to be made by any Lender to any Obligor, or to others for any
Obligor's account, in each case, pursuant to the terms and provisions of the
Term Loan Financing Agreement or any of the Term Loan Agreements, together with
interest thereon (including interest that would be payable as post-petition
interest in connection with any Insolvency Proceeding) and all indebtedness,
fees, liabilities and obligations that may at any time be owing by any Obligor
to any Lender, in each case pursuant to the Term Loan Financing Agreement or any
of the Term Loan Agreements whether now in existence or incurred by any Obligor
from time to time hereafter, whether unsecured or secured by a pledge of, Lien
upon or security interest in any of any Obligor's assets or property or the
assets or property of any other Person, whether such indebtedness is absolute or
contingent, joint or several, matured or unmatured, direct or indirect, and
whether such Obligor is liable to such Lender for such indebtedness as
principal, surety, endorser, guarantor or otherwise. The term "Term Loan Debt"
shall also include any other indebtedness, fees, liabilities and obligations
owing to any Lender by any Obligor under the

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Term Loan Financing Agreement or any of the other Term Loan Agreements, any
Obligor's liability to any Lender pursuant to the Term Loan Financing Agreement
as maker or endorser of any promissory note or other instrument for the payment
of money, any Obligor's liability to any Lender pursuant to the Term Loan
Financing Agreement or any of the Term Loan Agreements or under any instrument
of guaranty or indemnity, or arising under any guaranty, endorsement or
undertaking that any Lender may make or issue to others for any such Obligor's
account pursuant to the Term Loan Financing Agreement; subject, however, in
respect of all of the foregoing, to the Term Loan Debt Cap.

          1.42 "Term Loan Debt Cap" shall mean an aggregate principal amount of
Term Loan Debt equal to Fifteen Million Dollars ($15,000,000); less all
repayments (including mandatory and voluntary prepayments) of Term Loan Debt
made subsequent to the Effective Date.

          1.43 "Term Loan Default" shall mean an Event of Default under the Term
Loan Financing Agreement.

          1.44 "Term Loan Financing Agreement" shall mean the Loan and Security
Agreement, dated as of the Effective Date, among Borrowers, Term Loan Agent and
Term Loan Lenders, as the same now exists or may hereafter be amended, modified,
supplemented, extended, renewed or restated.

          1.45 "Term Loan Lenders" shall mean the "Lenders" (as defined in the
Term Loan Financing Agreement) and any other lender or group of lenders that at
any time succeeds to or refinances, replaces or substitutes for all or any
portion of the Term Loan Debt at any time and from time to time.

          1.46 "Term Loan Priority Collateral" shall mean all Term Loan
Collateral, except that portion thereof consisting of any Working Capital
Priority Collateral. Without limitation of the foregoing, for avoidance of any
doubt, "Term Loan Priority Collateral" shall extend to and include: (i) all Real
Property, (ii) all Contracts and General Intangibles of each Obligor (including
Software) pertaining to Real Property, (iii) all Accounts, Chattel Paper and
Instruments constituting Proceeds of Real Property, to the extent thereof; (iv)
all Investment Property of each Obligor containing Proceeds of Real Property,
(v) all Deposit Accounts of each Obligor containing Proceeds of Real Property,
to the extent thereof; (vi) all money, cash or cash equivalents of each Obligor
and all tort claims, insurance claims and the rights to payment of each Obligor
now owned or hereafter acquired by any Obligor or in which any Obligor now has
or hereafter acquires any rights constituting Proceeds of Real Property; (vii)
any and all Commercial Tort Claims of each Obligor pertaining to any Term Loan
Priority Collateral; and (viii) to the extent not otherwise included, all
Proceeds of each of the foregoing, including insurance Proceeds, and, all
accessions to, substitutions and replacements for, and rents, profits and
products of each of the foregoing, and all books and records relating to each of
the foregoing.

          1.47 "Term Loan Termination Date" shall mean the date that Term Loan
Agent and Term Loan Lenders have received payment in full of all of the Term
Loan Debt.

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          1.48 "UCC" or "Uniform Commercial Code" shall mean the Uniform
Commercial Code as the same may, from time to time, be in effect in the State of
New York; provided, however, that to the extent that the UCC is used to define
any term herein or in any other Credit Document and such term is defined
differently in different Articles or Divisions of the UCC, the definition of
such term contained in Article or Division 9 shall govern; provided, further,
however, in the event that, by reason of mandatory provisions of law, any or all
of the attachment, perfection or priority of a Lender's security interest in any
Collateral is governed by the Uniform Commercial Code as in effect in a
jurisdiction other than the State of New York, the term "UCC" shall mean the
Uniform Commercial Code as in effect in such other jurisdiction for purposes of
the provisions hereof relating to such attachment, perfection or priority and
for purposes of definitions related to such provisions.

          1.49 "UCC Terms" shall mean all terms defined in the Uniform
Commercial Code of the State of New York, which, unless otherwise expressly
defined herein, shall have the meanings set forth therein.

          1.50 "Working Capital Agent" shall mean CAPITALSOURCE FINANCE LLC, a
Delaware limited liability company, in its capacity as Agent pursuant to the
Working Capital Credit Agreement for the benefit and on behalf of Working
Capital Lenders, and its successors and assigns (and including, without
limitation, any successor, assignee or additional Person at any time acting as
administrative agent for the benefit of or on behalf of it and/or Working
Capital Lenders).

          1.51 "Working Capital Collateral" shall mean and include all assets
and properties of any kind whatsoever, real or personal, tangible or intangible,
wherever located, of Borrowers or any Obligor, in which a Lien is now or
hereafter granted, obtained or otherwise claimed by Working Capital Agent or any
Working Capital Lender to secure payment of any Working Capital Debt.

          1.52 "Working Capital Credit Agreement" shall mean the Credit and
Security Agreement, dated as of the Effective Date, among Borrowers, Working
Capital Agent and Working Capital Lenders, as the same now exists or as may
hereafter be amended, modified, supplemented, extended, renewed or restated.

          1.53 "Working Capital Debt" shall mean all loans and advances or
extensions of credit made or to be made by any Lender to any Obligor, or to
others for any Obligor's account, in each case, pursuant to the terms and
provisions of the Working Capital Credit Agreement or any of the Working Capital
Loan Agreements together with interest thereon (including interest that would be
payable as post-petition interest in connection with any Insolvency Proceeding)
and, including, without limitation, any reimbursement obligation or indemnity of
the Obligors on account of "Letters of Credit," and all indebtedness, fees,
liabilities and obligations that may at any time be owing by any Obligor to any
Lender, in each case pursuant to the Working Capital Credit Agreement or any
other Working Capital Loan Agreement, whether now in existence or incurred by
any Obligor from time to time hereafter, whether unsecured or secured by a
pledge of, Lien upon or security interest in any of any Obligor's assets or
property or the assets or property of any other Person, whether such
indebtedness is absolute or contingent, joint or several, matured or unmatured,
direct or indirect

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and whether such Obligor is liable to such Lender for such indebtedness as
principal, surety, endorser, guarantor or otherwise. The term "Working Capital
Debt" shall also include any other indebtedness, fees, liabilities and
obligations owing to any Lender by any Obligor under the Working Capital Credit
Agreement or any of the other Working Capital Loan Agreements, any Obligor's
liability to any Lender pursuant to the Working Capital Credit Agreement as
maker or endorser of any promissory note or other instrument for the payment of
money, any Obligor's liability to any Lender pursuant to the Working Capital
Credit Agreement or any other Working Capital Loan Agreement or under any
instrument of guaranty or indemnity, or arising under any guaranty, endorsement
or undertaking that any Lender may make or issue to others for any such
Obligor's account pursuant to the Working Capital Credit Agreement or any
Working Capital Loan Agreement, including any accommodation extended with
respect to applications for Letters of Credit; subject, however, in respect of
the foregoing, to the Working Capital Debt Cap. Quoted terms used in this
definition, but not expressly defined herein, shall have the meanings given to
such defined terms in the Working Capital Credit Agreement.

          1.54 "Working Capital Debt Cap" shall mean an aggregate outstanding
principal amount of Working Capital Debt equal to Thirty Four Million Five
Hundred Thousand Dollars ($34,500,000), minus all repayments (including
mandatory and voluntary prepayments) in respect of the "Equipment Term Loan" (as
defined in the Working Capital Credit Agreement) made subsequent to the
Effective Date minus all permanent reductions of the "Revolving Credit
Commitments" (as defined in the Working Capital Credit Agreement) made
subsequent to the Effective Date (other than reductions due to a termination of
such Commitments at a time at which Working Capital Debt remains outstanding).

          1.55 "Working Capital Default" shall mean an Event of Default under
the Working Capital Credit Agreement.

          1.56 "Working Capital Lenders" shall mean the "Lenders," the "Agent"
and the "Lender Parties" (as each such term is defined in the Working Capital
Credit Agreement) and any other lender or group of lenders that at any time
succeeds to or refinances, replaces or substitutes for all or any portion of the
Working Capital Debt at any time and from time to time.

          1.57 "Working Capital Loan Agreements" shall mean the Working Capital
Credit Agreement and all agreements, documents and instruments at any time
executed and/or delivered by Borrowers or any Obligor or any other Person with,
to or in favor of Working Capital Agent or any Working Capital Lender in
connection therewith or related thereto, as all of the foregoing now exist or
may hereafter be amended, modified, supplemented, extended, renewed or restated.

          1.58 "Working Capital Loan Termination Date" shall mean the date on
which Working Capital Agent and Working Capital Lenders shall have received
payment in full of all Working Capital Debt.

          1.59 "Working Capital Priority Collateral" shall mean, collectively,
that portion of the Working Capital Collateral consisting of, and limited to,
the following property and interests in property, whether now owned or hereafter
acquired or existing and wherever located, of each Obligor:

                                       10

<PAGE>

               (a) all Inventory of each Obligor;

               (b) all Accounts of each Obligor, excluding any portion thereof
constituting Proceeds of Term Loan Priority Collateral;

               (c) all Chattel Paper of each Obligor, excluding any portion
thereof constituting Proceeds of Term Loan Priority Collateral;

               (d) all Contracts of each Obligor excluding any portion thereof
pertaining to Term Loan Priority Collateral, to the extent thereof;

               (e) all Documents of each Obligor;

               (f) all Equipment and Goods of each Obligor;

               (g) all General Intangibles of each Obligor (including, without
limitation, payment intangibles and Software) excluding any portion thereof
pertaining to Term Loan Priority Collateral, to the extent thereof;

               (h) all Instruments of each Obligor, excluding any portion
thereof constituting Proceeds of Term Loan Priority Collateral, to the extent
thereof;

               (i) all Investment Property of each Obligor, excluding any
portion thereof containing Proceeds of Term Loan Priority Collateral, to the
extent thereof;

               (j) all Balances of each Obligor, excluding any portion thereof
constituting or containing, Proceeds of Term Loan Priority Collateral, to the
extent thereof;

               (k) to the extent not otherwise included (or excluded) pursuant
to clause (i), all Deposit Accounts of each Obligor and all deposits therein,
excluding any portion thereof containing Proceeds of Term Loan Priority
Collateral, to the extent thereof;

               (l) all money, cash or cash equivalents of each Obligor and all
tort claims, insurance claims and the rights to payment of each Obligor now
owned or hereafter acquired by an Obligor or in which any Obligor now has or
hereafter acquires any rights, excluding any portion thereof constituting
Proceeds of Term Loan Priority Collateral, to the extent thereof;

               (m) all Supporting Obligations and Letter-of-Credit Rights of
each Obligor, excluding any portion thereof constituting Proceeds of Term Loan
Priority Collateral, to the extent thereof;

               (n) any and all Commercial Tort Claims of each Obligor, excluding
any portion thereof pertaining to Term Loan Priority Collateral, to the extent
thereof;

               (o) to the extent not otherwise included, all Proceeds of each of
the foregoing, including insurance Proceeds, and, all accessions to,
substitutions and replacements

                                       11

<PAGE>

for, and rents, profits and products of each of the foregoing, and all books and
records relating to each of the foregoing.

     2.   SECURITY INTERESTS; PRIORITIES; REMEDIES.

          2.1 Working Capital Agent hereby acknowledges that Term Loan Agent,
acting for and on behalf of itself and the Term Loan Lenders, has been granted,
or may be granted, Liens upon all of Collateral, including the Working Capital
Priority Collateral, pursuant to the Term Loan Agreements to secure the Term
Loan Debt; consents thereto; and waives any Working Capital Default in regard
thereto. Term Loan Agent hereby acknowledges that Working Capital Agent, acting
for and on behalf of itself and the Working Capital Lenders, has been granted,
or may be granted, Liens upon all of the Collateral, including the Term Loan
Priority Collateral, pursuant to the Working Capital Loan Agreements to secure
the Working Capital Debt; consents thereto; and waives any Term Loan Default in
regard thereto.

          2.2

               (a) Notwithstanding the order or time of attachment, or the
order, time or manner of perfection, or the order or time of filing or
recordation of any document or instrument, or other method of perfecting a Lien
in favor of each Lender in any Collateral, and notwithstanding any conflicting
terms or conditions that may be contained in any of the Agreements, the Liens
upon any Working Capital Priority Collateral of Working Capital Agent and
Working Capital Lenders have and shall have priority over the Liens upon any
Working Capital Priority Collateral of Term Loan Agent and Term Loan Lenders and
such Liens of Term Loan Agent and Term Loan Lenders upon any Working Capital
Priority Collateral are and shall be junior and subordinate to any Liens of
Working Capital Agent and Working Capital Lenders upon the Working Capital
Priority Collateral to the full extent of the Working Capital Debt outstanding
from time to time.

               (b) Notwithstanding the order or time of attachment, or the
order, time or manner of perfection, or the order or time of filing or
recordation of any document or instrument, or other method of perfecting a Lien
in favor of each Lender in any Collateral, and notwithstanding any conflicting
terms or conditions that may be contained in any of the Agreements, the Liens
upon any Term Loan Priority Collateral of Term Loan Agent and Term Loan Lenders
have and shall have priority over the Liens upon any Term Loan Priority
Collateral of Working Capital Agent and Working Capital Lenders to the full
extent of the Term Loan A Debt outstanding from time to time and such Liens of
Working Capital Agent and Working Capital Lenders upon any Term Loan Priority
Collateral are and shall be junior and subordinate to any Liens of Term Loan
Agent and Term Loan Lenders upon the Term Loan Priority Collateral to the full
extent of the Term Loan A Debt outstanding from time to time.

          2.3

               (a) The relative priorities of the Liens provided in Section 2.2
shall not be altered or otherwise affected by any amendment, modification,
supplement, extension, renewal, restatement, replacement or refinancing of the
Working Capital Debt or the Term Loan

                                       12

<PAGE>

Debt, nor by any action or inaction that any of the Lenders may take or fail to
take in respect of the Collateral.

               (b) Working Capital Agent agrees not to enter into any agreement
with another creditor of Borrowers or any Obligor to subordinate its Lien in any
Working Capital Priority Collateral to the Lien of such other creditor of
Borrowers or any Obligor in such Working Capital Priority Collateral without the
prior written consent of Term Loan Agent.

               (c) Term Loan Agent agrees not to enter into any agreement with
another creditor of Borrowers or any Obligor to subordinate its Lien on any Term
Loan Priority Collateral to the Lien of such other creditor of Borrowers or any
Obligor in such Term Loan Priority Collateral without the prior written amount
of Working Capital Agent.

          2.4

               (a) Subject to Section 2.2 and Section 2.10, all proceeds of the
Working Capital Priority Collateral received by the Term Loan Agent or any Term
Loan Lender shall be forthwith paid over, in the funds and currency received
(without interest), to Working Capital Agent for application to the Working
Capital Debt (unless otherwise required by law); and any proceeds of Working
Capital Priority Collateral received by Working Capital Agent or any Working
Capital Lender after the Working Capital Loan Termination Date shall be
forthwith paid over, in the funds and currency received, to Term Loan Agent for
application to the Term Loan Debt (unless otherwise required by law). For
purposes of this Section 2.4(a), payments made by any Obligor to Term Loan Agent
or Term Loan Lenders in respect of the Term Loan Debt with proceeds of loans by
Working Capital Agent or Working Capital Lenders to Borrowers shall not be
construed to constitute proceeds of Working Capital Priority Collateral.

               (b) Subject to Section 2.2 and Section 2.10, all proceeds of the
Term Loan Priority Collateral received by the Working Capital Agent or any
Working Capital Lender shall be forthwith paid over, in the funds and currency
received (without interest), to Term Loan Agent for application to the Term Loan
Debt (unless otherwise required by law) until the Term Loan A Repayment Date
shall have occurred; and all proceeds of Term Loan Priority Collateral received
by the Term Loan Agent or any Term Loan Lender after the Term Loan A Repayment
Date shall be forthwith paid over, in the funds and currency received, to
Working Capital Agent for application to the Working Capital Debt (unless
otherwise required by law) until the Working Capital Debt is paid in full.

               (c) Subject to Section 2.2 and Section 2.10, all proceeds of Term
Loan Priority Collateral received by the Working Capital Agent or any Working
Capital Lender after the Working Capital Loan Termination Date shall be
forthwith paid over, in the funds and currency received, to Term Loan Agent for
application to the remaining balance of the Term Loan Debt (unless otherwise
required by law).

          2.5 Except as provided in Section 4.6 of this Agreement, each Lender
shall be solely responsible for perfecting and maintaining the perfection of its
Lien in and to each item constituting the Collateral in which such Lender has
been granted a Lien. The foregoing provisions of this Intercreditor Agreement
are intended solely to govern the respective Lien

                                       13

<PAGE>

priorities as between the Lenders and shall not impose on any Lender any
obligations in respect of the disposition of proceeds of any Collateral that
would conflict with prior perfected claims therein in favor of any other Person
or any order or decree of any court or governmental authority or any applicable
law. Term Loan Agent agrees that it will not contest the validity, perfection,
priority, enforceability or unavoidability of the Liens upon any Working Capital
Priority Collateral of Working Capital Agent or any Working Capital Lender; and
Working Capital Agent agrees that it will not contest the validity, perfection,
priority, enforceability or unavoidability of the Liens upon any Term Loan
Priority Collateral of Term Loan Agent or any Term Loan Lender.

          2.6

               (a) In the event that Working Capital Agent or any Working
Capital Lender shall, in the exercise of its rights under its Agreements or
otherwise, receive possession or control of any books and records of Borrowers
or any Obligor that contain information identifying or pertaining to any Term
Loan Priority Collateral, Working Capital Agent shall notify Term Loan Agent
that it has received such books and records and shall, as promptly as
practicable thereafter, if requested to do so by Term Loan Agent make available
to Term Loan Agent such books and records for inspection and duplication.

               (b) In the event that Term Loan Agent or any Term Loan Lender
shall, in the exercise of its rights under its Agreements or otherwise, receive
possession or control of any books and records of Borrowers or any Obligor that
contain information identifying or pertaining to any Working Capital Priority
Collateral, Term Loan Agent shall notify Working Capital Agent that it has
received such books and records and shall, as promptly as practicable
thereafter, if requested to do so by Working Capital Agent make available to
Working Capital Agent such books and records for inspection and duplication.

          2.7 Subject to the terms and conditions set forth in this
Intercreditor Agreement, including, particularly, Section 2.10:

               (a) Working Capital Agent and Working Capital Lenders shall have
the exclusive right to manage, perform and enforce the terms of the Working
Capital Loan Agreements with respect to the Working Capital Priority Collateral,
to exercise and enforce all privileges and rights thereunder according to their
discretion and the exercise of its business judgment, including, without
limitation, the exclusive right to take or retake control or possession of such
Working Capital Priority Collateral, to hold, prepare for sale, process, sell,
lease, dispose of, or liquidate such Working Capital Priority Collateral and to
take all other Lien Enforcement Actions with respect thereto.

               (b) Until the Term Loan A Repayment Date shall have occurred,
Term Loan Agent and Term Loan Lenders shall have the exclusive right to manage
perform and enforce the terms of the Term Loan Agreements with respect to the
Term Loan Priority Collateral, to exercise and enforce all privileges and rights
thereunder according to their discretion and the exercise of their business
judgment, including, without limitation, the exclusive right to take or retake
control or possession of such Collateral and to hold, prepare for

                                       14

<PAGE>

sale, process, sell, lease, dispose of, or liquidate such Collateral and to take
all other Lien Enforcement Actions with respect thereto.

          2.8 Working Capital Agent shall give Term Loan Agent, and Term Loan
Agent shall give to Working Capital Agent, concurrently with the giving thereof
to the Borrowers (i) a copy of any written notice by such Person of an Event of
Default under its Agreements with the Borrowers, or written notice of demand for
payment from Borrowers or any Obligor, and (ii) a copy of any written notice
sent by such Lender to Borrowers or any Obligor at any time an Event of Default
under such Person's Agreements with Borrowers exists, stating such Person's
intention to exercise any of its enforcement rights or remedies, including
written notice pertaining to any foreclosure on any of the Collateral or other
judicial or non-judicial remedy in respect thereof to the extent permitted
hereunder, and any legal process served or filed in connection therewith;
provided, however, that the failure of any party to give notice as required
hereby shall not affect the relative priorities of Term Loan Agent's or Working
Capital Agent's respective Liens as provided herein or the validity or
effectiveness of any such notice as against the Borrowers or any Obligor.

          2.9

               (a) Term Loan Agent shall, at any time prior to the Working
Capital Loan Termination Date: (i) upon the request of Working Capital Agent
with respect to any Working Capital Priority Collateral (which request shall
specify the proposed terms of the sale and the type and amount of consideration
to be received in connection therewith), release or otherwise terminate its
Liens on such Working Capital Priority Collateral, to the extent such Collateral
is to be sold or otherwise disposed of either by (A) Working Capital Agent or
its agents, or (B) Borrowers or any Obligor with the consent of Working Capital
Agent; (ii) as promptly as practicable, authorize, execute and/or deliver such
release documents and confirmations of the authorization to file Uniform
Commercial Code amendments and terminations, in each case, as Working Capital
Agent may reasonably require in connection therewith; provided, however, that,
(A) such release by the Term Loan Agent shall not extend to or otherwise affect
any of the rights of the Term Loan Agent or Term Loan Lenders to the proceeds
from any such sale or other disposition of Collateral subject to the terms
hereof, (B) Working Capital Agent shall promptly apply such proceeds to the
Working Capital Debt, (C) after such application, to the extent that the Working
Capital Debt has been reduced to zero (0) as a result thereof, Working Capital
Agent shall (unless otherwise required by law) promptly deliver any remainder of
proceeds from such sale or disposition of such Collateral to Term Loan Agent,
and (D) no such release documents shall be delivered (1) to Borrowers or any
Obligor, but only to Working Capital Agent, or (2) more than three (3) business
days prior to the date of the closing of the sale or disposition of such
Collateral; provided further, that if the closing of the sale or disposition of
such Collateral is not consummated, Working Capital Agent shall promptly return
all release documents to Term Loan Agent; and (iii) be deemed to have consented,
under the Agreements to which such Term Loan Agent is a party, to such sale or
other disposition. The effectiveness of any such release or termination by Term
Loan Agent shall be subject to the sale or other disposition of such Collateral
on the terms described in such request or on substantially similar terms and
shall lapse in the event such sale or other disposition does not occur within
ten (10) Business Days of the anticipated closing date. In any sale or other
disposition of any of the Working Capital Priority Collateral by Working Capital
Agent, Working Capital Agent shall

                                       15

<PAGE>

conduct such sale or other disposition in a commercially reasonable manner. For
purposes hereof, any such sale or other disposition of Working Capital Priority
Collateral made by Working Capital Agent pursuant to the Working Capital Credit
Agreement, or otherwise in accordance with Section 9-627 of the Uniform
Commercial Code as then in effect, shall be deemed to constitute a sale or other
disposition done in a "commercially reasonable manner."

               (b) Working Capital Agent shall, at any time prior to the Term
Loan A Repayment Date: (i) upon the request of Term Loan Agent with respect to
any Term Loan Priority Collateral (which request shall specify the proposed
terms of the sale and the type and amount of consideration to be received in
connection therewith), release or otherwise terminate its Liens on such Term
Loan Priority Collateral, to the extent such Collateral is to be sold or
otherwise disposed of either by (A) Term Loan Agent or its agents, or (B)
Borrowers or any Obligor with the consent of Term Loan Agent; (ii) as promptly
as practicable, authorize, execute and/or deliver such release documents and
confirmations of the authorization to file Uniform Commercial Code amendments
and terminations, in each case, as Term Loan Agent may reasonably require in
connection therewith; provided, however, that, (A) such release by the Working
Capital Agent shall not extend to or otherwise affect any of the rights of the
Working Capital Agent or Working Capital Lenders to the proceeds from any such
sale or other disposition of Collateral subject to the terms hereof, (B) Term
Loan Agent shall (unless otherwise required by law) promptly apply such proceeds
to the Term Loan A Debt, (C) after such application, to the extent that the Term
Loan A Debt has been repaid in full, Term Loan Agent shall promptly deliver any
remainder of proceeds from such sale or disposition of such Collateral to
Working Capital Agent, and (D) no such release documents shall be delivered (1)
to Borrowers or any Obligor, but only to Term Loan Agent, or (2) more than three
(3) business days prior to the date of the closing of the sale or disposition of
such Collateral; provided further, that if the closing of the sale or
disposition of such Collateral is not consummated, Term Loan Agent shall
promptly return all release documents to Working Capital Agent; and (iii) be
deemed to have consented, under the Agreements to which such Working Capital
Agent is a party, to such sale or other disposition. The effectiveness of any
such release or termination by Working Capital Agent shall be subject to the
sale or other disposition of such Collateral on the terms described in such
request or on substantially similar terms and shall lapse in the event such sale
or other disposition does not occur within ten (10) Business Days of the
anticipated closing date. In any sale or other disposition of any of the Working
Capital Collateral by Term Loan Agent, Term Loan Agent shall conduct such sale
or other disposition in a commercially reasonable manner. For purposes hereof,
any such sale or other disposition of Working Capital Collateral made by Term
Loan Agent pursuant to the Term Loan Agreement, or otherwise in accordance with
Section 9-627 of the Uniform Commercial Code as then in effect, shall be deemed
to constitute a sale or other disposition done in a "commercially reasonable
manner."

          2.10 Except as specifically provided in Section 2.11 below,

               (a) Notwithstanding any rights or remedies available to Term Loan
Agent and the Term Loan Lenders under any of the Term Loan Documents, applicable
law or otherwise, prior to the Working Capital Loan Termination Date, neither
Term Loan Agent nor any of the Term Loan Lenders shall, directly or indirectly,
seek to foreclose, enforce or realize upon (judicially or non-judicially) their
Liens on any Working Capital Priority Collateral or assert any other claims or
interests therein (including without limitation, by setoff or notification

                                       16

<PAGE>

of account debtors); provided, that upon the occurrence and during the
continuance of a Term Loan Default and for so long as such Term Loan Default is
continuing, subject at all times to the provisions of Sections 2.2 and 2.4,
commencing 180 days after the receipt by Working Capital Agent of a copy of the
declaration of Term Loan Agent of such Term Loan Default under the Term Loan
Documents and written demand by Term Loan Agent to Obligors for the accelerated
payment of all Term Loan Debt (unless Obligors are subject to an Insolvency
Proceeding by reason of which such declaration and the making of such demand is
stayed, in which case, commencing on the date that is 180 days after the date of
the commencement of such Insolvency Proceeding), Term Loan Agent may take any
action to enforce its Liens on any of the Working Capital Priority Collateral,
but only (i) so long as Working Capital Agent is not diligently pursuing in good
faith the exercise of its enforcement rights or remedies against all or a
material portion of the Working Capital Priority Collateral (including without
limitation, any of the following: solicitation of bids from third parties to
conduct the liquidation of all or a material portion of the Working Capital
Priority Collateral, the engagement or retention of sales brokers, marketing
agents, investment bankers, accountants, auctioneers or other third parties for
the purpose of valuing, marketing, promoting or selling a material portion of
the Working Capital Priority Collateral, notification of account debtors to make
payments to Working Capital Agent or its agents, any action to take possession
of all or any material portion of the Working Capital Priority Collateral or
commencement of any legal proceedings or actions against or with respect to all
or any material portion of the Working Capital Priority Collateral) or
diligently attempting to vacate any stay of enforcement of its Liens on all or a
material portion of the Working Capital Priority Collateral and (ii) if Term
Loan Agent shall have given Working Capital Agent five (5) Business Days' prior
written notice of Term Loan Agent's intention to take any such action, which
notice shall include a description, in reasonable detail, of the actions that
Term Loan Agent proposes to take. In the event Term Loan Agent has commenced any
actions to enforce its Lien on any Working Capital Priority Collateral to the
extent permitted hereunder and is diligently pursuing such actions in good
faith, no Working Capital Lender shall take any action of a similar nature with
respect to such Working Capital Priority Collateral; provided, that in any sale
or other disposition of any of the Working Capital Priority Collateral by any
Term Loan Lender, such Term Loan Lender shall conduct such sale or other
disposition in a commercially reasonable manner and shall comply in all respects
with this Intercreditor Agreement.

               (b) Notwithstanding any rights or remedies available to Working
Capital Agent and the other Working Capital Lenders under any of the Working
Capital Credit Documents, applicable law or otherwise, until the Term Loan A
Repayment Date, neither Working Capital Agent nor any of the other Working
Capital Lenders shall, directly or indirectly, seek to foreclose, enforce or
realize upon (judicially or non-judicially) their Liens on any Term Loan
Priority Collateral or assert any other claims or interests therein (including
without limitation, by setoff or notification of account debtors); provided,
that upon the occurrence and during the continuance of a Working Capital Default
and for so long as such Working Capital Default is continuing, subject at all
times to the provisions of Sections 2.2 and 2.4, commencing 180 days after the
receipt by Term Loan Agent of a copy of the declaration of Working Capital Agent
of such Working Capital Default under the Working Capital Credit Documents and
written demand by Working Capital Agent to Obligors for the accelerated payment
of all Working Capital Debt (unless Obligors are subject to an Insolvency
Proceeding by reason of which such declaration and the making of such demand is
stayed, in which case, commencing on the date that is 180 days after the date of
the commencement of such Insolvency

                                       17

<PAGE>

Proceeding), Working Capital Agent may take any action to enforce its Liens on
any of the Term Loan Priority Collateral, but only (i) so long as Term Loan
Agent is not diligently pursuing in good faith the exercise of its enforcement
rights or remedies against all or a material portion of the Term Loan Priority
Collateral (including without limitation, any of the following: solicitation of
bids from third parties to conduct the liquidation of all or a material portion
of the Term Loan Priority Collateral, the engagement or retention of sales
brokers, marketing agents, investment bankers, accountants, auctioneers or other
third parties for the purpose of valuing, marketing, promoting or selling a
material portion of the Term Loan Priority Collateral, any action to take
possession of all or any material portion of the Term Loan Priority Collateral
or commencement of any legal proceedings or actions against or with respect to
all or any material portion of the Term Loan Priority Collateral) or diligently
attempting to vacate any stay of enforcement of its Liens on all or a material
portion of the Term Loan Priority Collateral and (ii) if Working Capital Agent
shall have given Term Loan Agent five (5) Business Days' prior written notice of
Working Capital Agent's intention to take any such action, which notice shall
include a description, in reasonable detail, of the actions that Working Capital
Agent proposes to take. In the event Working Capital Agent has commenced any
actions to enforce its Lien on any Term Loan Priority Collateral to the extent
permitted hereunder and is diligently pursuing such actions in good faith, no
Term Loan Lender shall take any action of a similar nature with respect to such
Term Loan Priority Collateral; provided, that in any sale or other disposition
of any of the Term Loan Priority Collateral by any Working Capital Lender, such
Working Capital Lender shall conduct such sale or other disposition in a
commercially reasonable manner and shall comply in all respects with this
Intercreditor Agreement.

               (c) After the occurrence of the Term Loan A Repayment Date and
notwithstanding any rights or remedies available to Term Loan Agent and the Term
Loan Lenders under any of the Term Loan Documents, applicable law or otherwise,
prior to the Working Capital Loan Termination Date, neither Term Loan Agent nor
any of the Term Loan Lenders shall, directly or indirectly, seek to foreclose,
enforce or realize upon (judicially or non-judicially) their Liens on any Term
Loan Priority Collateral or assert any other claims or interests therein
(including without limitation, by setoff or notification of account debtors);
provided, that upon the occurrence and during the continuance of a Term Loan
Default and for so long as such Term Loan Default is continuing, subject at all
times to the provisions of Sections 2.2 and 2.4, commencing 180 days after the
receipt by Working Capital Agent of a copy of the declaration of Term Loan Agent
of such Term Loan Default under the Term Loan Documents and written demand by
Term Loan Agent to Obligors for the accelerated payment of all Term Loan Debt
(unless Obligors are subject to an Insolvency Proceeding by reason of which such
declaration and the making of such demand is stayed, in which case, commencing
on the date that is 180 days after the date of the commencement of such
Insolvency Proceeding), Term Loan Agent may take any action to enforce its Liens
on any of the Term Loan Priority Collateral, but only (i) so long as Working
Capital Agent is not diligently pursuing in good faith the exercise of its
enforcement rights or remedies against all or a material portion of the Term
Loan Priority Collateral (including without limitation, any of the following:
solicitation of bids from third parties to conduct the liquidation of all or a
material portion of the Term Loan Priority Collateral, the engagement or
retention of sales brokers, marketing agents, investment bankers, accountants,
auctioneers or other third parties for the purpose of valuing, marketing,
promoting or selling a material portion of the Term Loan Priority Collateral,
any action to take possession of all or any material portion of the Term Loan
Priority Collateral or commencement of any legal proceedings

                                       18

<PAGE>

or actions against or with respect to all or any material portion of the Term
Loan Priority Collateral) or diligently attempting to vacate any stay of
enforcement of its Liens on all or a material portion of the Term Loan Priority
Collateral and (ii) if Term Loan Agent shall have given Working Capital Agent
five (5) Business Days' prior written notice of Term Loan Agent's intention to
take any such action, which notice shall include a description, in reasonable
detail, of the actions that Term Loan Agent proposes to take. In the event Term
Loan Agent has commenced any actions to enforce its Lien on any Term Loan
Priority Collateral to the extent permitted hereunder and is diligently pursuing
such actions in good faith, no Working Capital Lender shall take any action of a
similar nature with respect to such Working Capital Priority Collateral;
provided, that in any sale or other disposition of any of the Term Loan Priority
Collateral by any Term Loan Lender, such Term Loan Lender shall conduct such
sale or other disposition in a commercially reasonable manner and shall comply
in all respects with this Intercreditor Agreement.

          2.11 Section 2.10 shall not be construed to in any way limit or impair
the right of:

               (a) Working Capital Agent or any Working Capital Lender to bid
for or purchase Term Loan Priority Collateral, or Term Loan Agent or any Term
Loan Lender to bid for or purchase Working Capital Priority Collateral, at any
private or judicial foreclosure upon such Collateral initiated by any such
Person;

               (b) Term Loan Agent or any Term Loan Lender to join (but not
control) any judicial foreclosure or other judicial lien enforcement proceeding
with respect to the Working Capital Priority Collateral initiated by Working
Capital Agent or any Working Capital Lender, so long as it does not delay or
interfere in any material respect with the exercise by Working Capital Agent or
such Working Capital Lender of its rights as provided in this Intercreditor
Agreement; or Working Capital Agent or any Working Capital Lender to join (but
not control) any judicial foreclosure or other judicial lien enforcement
proceeding with respect to the Term Loan Priority Collateral initiated by Term
Loan Agent or any Term Loan Lender, so long as it does not delay or interfere in
any material respect with the exercise by Term Loan Agent or such Term Loan
Lender of its rights as provided in this Intercreditor Agreement;

               (c) Term Loan Agent's right to receive any remaining proceeds of
Working Capital Priority Collateral after the Working Capital Loan Termination
Date, or Working Capital Agent's right to receive any remaining proceeds of Term
Loan Priority Collateral after the Term Loan A Repayment Date or Term Loan
Agent's right to receive any remaining proceeds of Term Loan Priority Collateral
after the Working Capital Loan Termination Date;

               (d) Term Loan Agent or Term Loan Lenders to take any Lien
Enforcement Action against the Term Loan Priority Collateral prior to Term Loan
A Repayment Date, or Working Capital Agent or Working Capital Lenders to take
any Lien Enforcement Action against the Working Capital Priority Collateral.

                                       19

<PAGE>

          2.12

               (a) In the event that and to the extent that Term Loan Agent
shall acquire control or possession of any of the Term Loan Priority Collateral,
Term Loan Agent shall give prompt written notice thereof to Working Capital
Agent (such notice herein called a "Control/Possession Notice"), and shall
permit Working Capital Agent, at its option for a period of ninety (90) days
after Working Capital Agent receives such Control/Possession Notice (such ninety
(90) day period, or such longer (or shorter) period to which the Agent may
mutually agree hereafter, herein called the "Use Period") to enter any of the
premises of Borrowers or any Obligor constituting Term Loan Priority Collateral
under such control or possession in order to (i) inspect, remove or take any
action with respect to the Working Capital Priority Collateral or to enforce
Working Capital Agent's rights with respect thereto, including, but not limited
to, the examination and removal of Working Capital Priority Collateral and the
examination and duplication of any Term Loan Priority Collateral under such
control or possession consisting of books and records of Borrowers and Obligors
related to the Working Capital Priority Collateral or to otherwise handle, deal
with or dispose of any Working Capital Priority Collateral, such right to
include, without limiting the generality of the foregoing, the right to conduct
one or more public or private sales or auctions on any premises included as part
of the Term Loan Priority Collateral; (ii) use computers or other data
processing equipment related to the storage or processing of records, documents
or files pertaining to the Working Capital Priority Collateral and (iii) handle,
deal with or dispose of any Working Capital Priority Collateral pursuant to
Working Capital Agent's rights as set forth in the Working Capital Agreements,
the Uniform Commercial Code of any applicable jurisdiction and other applicable
law (including specifically, without limitation, the right to use Equipment
consisting of molds, discs, tools and stamps for the purpose of manufacturing or
processing raw materials or work-in-process into finished Inventory).

               (b) Working Capital Agent hereby acknowledges that, during the
Use Period the Term Loan Agent and Term Loan Lenders shall not be obligated to
take any action to protect or to procure insurance with respect to any Working
Capital Priority Collateral that may be located on or in the Term Loan Priority
Collateral; it being understood that Term Loan Agent and Term Loan Lenders shall
have no responsibility whatsoever for any loss or damage to the Working Capital
Priority Collateral, and that all risk of loss or damage to the Working Capital
Priority Collateral shall remain with the Working Capital Agent and the Working
Capital Lenders.

               (c) The Use Period shall be tolled during the pendency of any
Insolvency Proceeding of any Obligor or other proceedings pursuant to which both
the Working Capital Agent and the Term Loan Agent are effectively stayed from
enforcing their respective rights against the Collateral.

               (d) In no event shall Term Loan Agent take any action that
materially interferes, limits or restricts the rights of Working Capital Agent
or the exercise of such rights by Working Capital Agent to have access to or to
use any of such Term Loan Priority Collateral under such possession or control
pursuant to this Section prior to the expiration of the Use Period, in the
absence of Exigent Circumstances, provided that Term Loan Agent shall give
notice thereof concurrently with or as promptly as reasonably practicable after
Term Loan Agent

                                       20

<PAGE>

takes any such action otherwise restricted hereby, specifying in reasonable
detail the applicable Exigent Circumstances and the actions taken in regard
thereto.

               (e) During the actual occupation and control by Working Capital
Agent, its agents or representatives, of any Real Property constituting Term
Loan Priority Collateral during the Use Period, Working Capital Agent shall be
(a) obligated to pay to Term Loan Agent rent, utilities, taxes and all other
operating costs of such Real Property during any such period of actual
occupation and control, but only to the extent Term Loan Agent is required to
pay or is otherwise paying any such rent, utilities, taxes or other operating
costs during such period, (b) obligated to maintain insurance for such Real
Property, substantially similar to the insurance maintained by Borrowers or any
Obligor on such Real Property, naming Term Loan Agent for the benefit of itself
and Term Loan Lenders as mortgagee, loss payee and additional insured, if, but
only to the extent that, such insurance is not otherwise in effect, and the Term
Loan Agent is required to maintain or is otherwise maintaining such insurance
during the actual occupation of such Real Property by the Working Capital Agent,
and (c) obligated to repair at its expense any physical damage to such Real
Property resulting from any act (or omission) of Working Capital Agent or its
agents or representatives pursuant to such access, occupancy, use or control of
such Real Property, and to leave the premises in a condition substantially
similar to the condition of such premises prior to the date of the commencement
of the use thereof by the Working Capital Agent.

               (f) Working Capital Agent shall indemnify and hold harmless Term
Loan Agent and Term Loan Lenders from and against (a) any loss, liability,
claim, damage or expense (including actual fees and expenses of legal counsel to
the extent reasonably incurred) arising out of any claim asserted by any third
party as a result of any acts or omissions by Working Capital Agent, or any of
its agents or representatives, in connection with the exercise by Working
Capital Agent of the rights set forth in this Section 2.12 above, (b) any damage
to any Term Loan Priority Collateral caused by any act of Working Capital Agent
or its agents or representatives and (c) any loss resulting from any release of
hazardous materials on such real property or arising in connection with the
investigation, removal, clean-up and/or remediation of any hazardous material at
such real property caused by the access, occupancy, use or control of such real
property by Working Capital Agent, or any of its agents or representatives.

               (g) In no event shall Working Capital Agent have any liability to
Term Loan Agent, Term Loan Lenders or any third party purchaser pursuant to this
Section 2.12 or otherwise as a result of any condition on or with respect to the
Term Loan Collateral existing prior to the date of the exercise by Working
Capital Agent of its rights under this Section 2.12 (except to the extent of any
injury to any Person on the real property constituting Term Loan Collateral or
damage to any Term Loan Priority Collateral as a result of such condition that
would not have occurred but for the exercise by Working Capital Agent of its
rights of access set forth in this Section) and Working Capital Agent shall have
no duty or liability to maintain the Term Loan Priority Collateral in a
condition or manner better than that in which it was maintained prior to the
access and/or use thereof by Working Capital Agent.

          2.13

                                       21
<PAGE>

               (a) The Working Capital Lenders may amend, modify, alter or waive
compliance with any terms of any Working Capital Loan Agreement at any time or
from time to time with notice to Term Loan Agent, as prescribed in subsection
(c) below, but without the necessity of first obtaining the consent of Term Loan
Agent or any Term Loan Lender thereto; provided, however, that the Working
Capital Lenders shall not amend, modify, alter or waive compliance with terms of
any Working Capital Loan Agreement in any of the following respects except with
the prior written consent of those Term Loan Lenders constituting "Required
Lenders" under the Term Loan Agreement: (i) increase the Working Capital Debt to
an amount in excess of the Working Capital Debt Cap; (ii) shorten any maturity
date for the payment of any Working Capital Debt, but the foregoing is not
intended and shall not be construed to restrict any right to accelerate
maturities after any Working Capital Default has occurred and while it is
continuing or after any mandatory prepayment event; (iii) increase any of the
"Applicable Advance Rates" beyond the rates in effect on the Effective Date;
(iv) release the "Restricted Payment Reserve" (as that term is defined in the
Working Capital Credit Agreement), if it becomes effective hereafter in
accordance with the terms of the Working Capital Credit Agreement as in effect
on the Effective Date, or reduce the amount thereof; or (v) voluntarily permit
any "Overadvance" to exist at Borrowers' request, as provided in Section 2.5 of
the Working Capital Credit Agreement, in an amount in excess of one million
dollars ($1,000,000) or for more than sixty (60) consecutive days. Quoted terms
used in this subsection (a) shall have the meanings given to such terms in the
Working Capital Credit Agreement as in effect on the Effective Date.

               (b) The Term Loan Lenders may amend, modify, alter or waive
compliance with any terms of any Term Loan Agreement at any time or from time to
time with notice to Working Capital Agent, as prescribed in subsection (c)
below, but without the necessity of first obtaining the consent of Working
Capital Agent or any Working Capital Lender thereto; provided, however, that the
Term Loan Lenders shall not amend, modify, alter or waive compliance with any
terms of any Term Loan Agreement in any of the following respects except with
the prior written consent of those Working Capital Lenders constituting
"Required Lenders" under the Working Capital Credit Agreement: (i) increase the
Term Loan Debt to an amount in excess of the Term Loan Debt Cap; (ii) shorten
any maturity date for the payment of any Term Loan Debt, but the foregoing is
not intended and shall not be construed to restrict any right to accelerate
maturities after any Term Loan Default has occurred and while it is continuing
or after any mandatory prepayment event;

               (c) Each Agent shall provide the other Agent with written notice
of any amendment, modification, alteration or consensual waiver of compliance
with any Lender Agreement concurrently with its becoming effective, and provide
such other Agent with a copy of the writing(s) giving effect thereto; provided,
however, that the failure of other Agent to give such notice or provide such
writing(s) shall not affect the relative priorities of the Agents' respective
Liens as provided herein or the validity or effectiveness of any such amendment,
modification, alteration or consensual waiver.

     3. TERM LOAN LENDERS' PURCHASE OPTION

          3.1 Notice by Working Capital Agent of Acceleration or Exercise of
Remedies. Notwithstanding anything to the contrary contained in this
Intercreditor Agreement,

                                       22

<PAGE>

Working Capital Agent agrees that it shall give Term Loan Agent written notice
of any proposed acceleration by Working Capital Agent of any portion of the
Working Capital Debt or any proposed notice from Working Capital Agent to any
Obligor of a private or public foreclosure sale in respect of all or a material
portion of the Working Capital Priority Collateral (each an
"Acceleration/Exercise Event"): (a) in the absence of an Exigent Circumstance,
not less than two (2) Business Days prior to such acceleration or the issuance
of such foreclosure notice; or (b) if, in the judgment of Working Capital Agent,
Exigent Circumstances exist, concurrently with or as promptly as reasonably
practicable after the taking of such action. In any written notice given to Term
Loan Agent pursuant to clause (b) above, Working Capital Agent shall specify in
reasonable detail the applicable Exigent Circumstances.

          3.2 Term Loan Lender Buy-Out Notice. Upon the occurrence and during
the continuance of an "Event of Default" under and as defined in the Working
Capital Credit Agreement and receipt by Term Loan Agent of written notice of an
Acceleration/Exercise Event, provided no Insolvency Proceeding has been
instituted at such time, the Term Loan Lenders shall have the option at any time
upon the giving of five (5) Business Days' prior written notice (the "Buy-Out
Notice") from Term Loan Agent to Working Capital Agent, to purchase all (but not
less than all) of the Working Capital Debt from the respective Working Capital
Lenders, including any portion thereof consisting of (i) principal, (ii)
accrued, but unpaid interest, (iii) accrued, but unpaid, fees and charges for
reimbursable expenses then outstanding, and (iv) obligations in respect of
outstanding letter of credit accommodations, but excluding, however any
obligations (herein, the "Working Capital Debt To Be Sold") consisting of any
rights to indemnification that any Working Capital Lender may have against any
Obligor or any other Working Capital Lender under any Working Capital Credit
Agreements as to matters and circumstances that are contingent ("Indemnifiable
Matters"). The Buy-Out Notice shall specify the Term Loan Lender(s) purchasing
the Working Capital Debt To Be Sold (the "Purchasing Term Loan Lenders") and the
intended closing date for its purchase (the "Specified Buy-Out Date,"), which
shall be not less than five (5) Business Days, nor more than fifteen (15) days
after the receipt by Working Capital Agent of the Buy-Out Notice. Any Buy-Out
Notice shall be irrevocable once received by Working Capital Agent.

          3.3 Closing of Purchase. On the Specified Buy-Out Date, Working
Capital Lenders shall sell to the Purchasing Term Loan Lenders, and the
Purchasing Term Loan Lenders shall purchase from Working Capital Lenders, the
Working Capital Debt To Be Sold in accordance with the terms and conditions of
this Section.

          3.4 Payment Amount; Deliveries; Other Conditions of Sale. On the
Buy-Out Date, the Purchasing Term Loan Lenders shall:

               (a) pay to Working Capital Agent as the purchase price for the
Working Capital Debt To Be Sold, excepting therefrom any pertaining to
outstanding letter of credit accommodations, a sum equal to (i) the principal
amount thereof then outstanding and unpaid, at par, (ii) all accrued but unpaid
interest thereon, and (iii) all accrued, but unpaid fees and charges for
reimbursable expenses then outstanding, provided, however, that the purchase
price shall not exceed, in any event, the Working Capital Debt Cap.

                                       23

<PAGE>

               (b) furnish or cause to be furnished to Working Capital Agent
cash collateral, or back-to-back letters of credit in form and substance and
from an issuer reasonably satisfactory to Working Capital Agent, in an aggregate
amount equal to 105% of the aggregate undrawn face amount of any outstanding
letter of credit accommodations provided by or through any Working Capital
Lender to any Obligor included within the Working Capital Debt To Be Sold, and
use commercially reasonable efforts to cause all such letters of credit to be
canceled or otherwise terminated within 60 days after the Buy-Out Date;
provided, however, that Working Capital Agent shall continue to receive the fees
and expenses set forth in the Working Capital Credit Agreement in respect of
such letters of credit until they are cancelled or otherwise terminated;

               (c) agree to reimburse Working Capital Lenders by paying to
Working Capital Agent for the account of Working Capital Lenders on demand after
the Buy-Out Date an amount equal to any loss, cost, damage or expense (including
reasonable attorneys' fees and legal expenses) that were incurred (i) in such
60-day period in connection with any commissions, fees, costs or expenses paid
or incurred by any Working Capital Lender related to any issued and outstanding
letters of credit as described above and (ii) within 30 days after the Purchase
Option Closing Date in connection with any checks or other payments
provisionally credited to the Working Capital Debt To Be Sold, and/or as to
which Working Capital Lenders have not yet received final payment;

               (d) Such purchase price and cash collateral shall be remitted by
wire transfer in federal funds to such bank account of Working Capital Agent as
Working Capital Agent may designate in writing to Term Loan Agent for such
purpose. For purposes of determining the interest component of the amount of the
Working Capital Debt To Be Sold, interest shall be calculated to but excluding
the Business Day on which such purchase and sale shall occur if the amounts so
paid by the Purchasing Term Loan Lenders to the bank account designated by
Working Capital Agent are received in such bank account prior to 1:00 p.m. (New
York time) and interest shall be calculated to and including such Business Day
if the amounts so paid by the Purchasing Term Loan Lenders to the bank account
designated by Working Capital Agent are received in such bank account later than
1:00 p.m. (New York time).

               (e) Notwithstanding any such sale and purchase, the Working
Capital Lenders shall retain their rights to recover against Borrowers any
claims for Indemnifiable Matters, and to be secured by the Working Capital
Collateral in respect thereof, but such rights shall be subject and subordinate
to the rights of the Purchasing Term Loan Lenders to receive payment in full of
all other Debts.

          3.5 Limited Representations. Such purchase shall be expressly made
without representation or warranty of any kind by any of Working Capital Lenders
as to any of the Working Capital Debt being purchased or otherwise and without
recourse to any of Working Capital Lenders, except that each of Working Capital
Lenders shall represent and warrant: (a) the amount of the Working Capital Debt
To Be Sold, (b) that such Working Capital Lender owns such Working Capital Debt
free and clear of any Liens or encumbrances, and (c) such Working Capital Lender
has the right to assign such Working Capital Debt To Be Sold and the assignment
is duly authorized.

                                       24

<PAGE>

          3.6 Forbearance. Upon the delivery by Working Capital Agent to Term
Loan Agent of a written notice of Acceleration/Exercise Event, Working Capital
Agent will forbear from accelerating the maturity of the Obligations (if they
have not already been accelerated) or from exercising further Lien Enforcement
Action to foreclose on any Lien on the Working Capital Priority Collateral
(other than actions that do not constitute Lien Enforcement Actions pursuant to
clauses (a) and (b) of the definition of the term "Lien Enforcement Action"
herein), until the Specified Buy-Out Date.

     4. MISCELLANEOUS.

          4.1 Representations.

               (a) Term Loan Agent hereby represents and warrants to Working
Capital Agent that:

                    (i) the execution, delivery and performance of this
     Intercreditor Agreement by Term Loan Agent (A) are within the powers of
     Term Loan Agent, (B) have been duly authorized by Term Loan Agent, and (C)
     do not contravene any law, any provision of any of the Term Loan Agreements
     or any agreement to which Term Loan Agent is a party or by which it is
     bound;

                    (ii) the Term Loan Lenders have taken such action as is
     required under the Term Loan Agreement to effectively authorize Term Loan
     Agent to enter into, execute, deliver and carry out the terms of this
     Intercreditor Agreement on behalf of the Term Loan Lenders; and

                    (iii) this Intercreditor Agreement constitutes the legal,
     valid and binding obligations of Term Loan Agent, enforceable in accordance
     with its terms and shall be binding on it.

               (b) Working Capital Agent hereby represents and warrants to Term
Loan Agent that:

                    (i) the execution, delivery and performance of this
     Intercreditor Agreement by Working Capital Agent (A) are within the powers
     of Working Capital Agent, (B) have been duly authorized by Working Capital
     Agent, and (C) do not contravene any law, any provision of the Working
     Capital Loan Agreements or any agreement to which Working Capital Agent is
     a party or by which it is bound;

                    (ii) the Working Capital Lenders have taken such action as
     is required under the Working Capital Credit Agreement to effectively
     authorize Working Capital Agent to enter into, execute, deliver and carry
     out the terms of this Intercreditor Agreement on behalf of the Working
     Capital Lenders; and

                    (iii) this Intercreditor Agreement constitutes the legal,
     valid and binding obligations of Working Capital Agent, enforceable in
     accordance with its terms and shall be binding on it.

                                       25

<PAGE>

          4.2 Amendments of this Agreement. Any waiver, permit, consent or
approval by any of the Lenders of or under any provision, condition or covenant
to this Intercreditor Agreement must be in writing and shall be effective only
to the extent it is set forth in writing and as to the specific facts or
circumstances covered thereby. Any amendment of this Intercreditor Agreement
must be in writing and signed by Working Capital Agent and the Term Loan Agent
to be effective.

          4.3 Successors and Assigns.

               (a) This Intercreditor Agreement shall be binding upon the
Lenders and their respective successors, participants and assigns and shall
inure to the benefit of the Lenders and their respective successors,
participants and assigns. Without limitation of the foregoing, but for avoidance
of any doubt, the term "successors and assigns" shall extend to and include any
Person(s) which refinance(s) in whole or in part the Working Capital Debt and/or
the Term Loan Debt and takes any assignment of the Lenders' respective
Agreements in connection therewith or in facilitation thereof.

               (b) To the extent provided in their respective Agreements, each
of the Lenders shall have the continuing right to grant participations in, or
otherwise sell, assign, transfer or negotiate all or any part of, or any
interest in, the Working Capital Debt or the Term Loan Debt, as the case may be;
provided, that, no Lender shall be obligated to give any notices to or otherwise
in any manner deal directly with any participant in the Working Capital Debt or
the Term Loan Debt, as the case may be, and no participant shall be entitled to
any rights or benefits under this Intercreditor Agreement except through the
Lender with which it is a participant and any sale of a participation in the
Working Capital Debt shall be expressly made subject to the provisions of this
Intercreditor Agreement.

               (c) In connection with any participation or other transfer or
assignment, a Lender (i) may, subject to its respective Agreement, disclose to
such assignee, participant or other transferee or assignee all documents and
information that such Lender may now or hereafter have relating to the Borrowers
or any Obligor or the Collateral and (ii) shall disclose to such participant or
other transferee or assignee the existence and the terms and conditions of this
Intercreditor Agreement.

               (d) In the case of an assignment or transfer, the assignee or
transferee acquiring any interest in the Term Loan Debt or the Working Capital
Debt, as the case may be, shall execute and deliver to the applicable Agent a
written acknowledgment of receipt of a copy of this Intercreditor Agreement and
the written agreement by such Person to be bound by the terms of this
Intercreditor Agreement, which acknowledgment and agreement may be included in
the assignment instrument between the assignor and assignee, provided, that, if
any Agent or Lender assigns or transfers a portion of the debt to an affiliate
controlled by or under common control with such Agent or such Lender, such Agent
or such Lender shall cause such Person to become bound by the terms of this
Intercreditor Agreement (including, without limitation, Section 3), but no
notice of such assignment or transfer needs to be given by such Agent or Lender
to the other Agent and such affiliate shall not be required to execute any
written acknowledgment or agreement. Unless and until Working Capital Agent or
Term Loan Agent receives notice of such assignment or transfer by such Agent or
such Lender to an affiliate, such

                                       26

<PAGE>

Agent shall only be obligated to give any notices hereafter to the assigning
Agent or Lender and otherwise deal with such Persons, and any action by such
Persons shall be binding on such assignee or transferee. In addition, in the
event of an assignment or transfer by Working Capital Agent or any Working
Capital Lender of less than all of the Working Capital Debt, or by Term Loan
Agent or any Term Loan Lender of less than all of the Term Loan Debt, the
assigning Agent or Lender shall agree with the assignee in the assignment
instrument effecting such assignment to appoint one Person as an agent to act on
their behalf under this Intercreditor Agreement for purposes of receiving
payments and notices hereunder, which in the case of a Term Loan Lender, shall
be the Term Loan Agent and in the case of a Working Capital Lender shall be the
Working Capital Agent.

               (e) In connection with any assignment or transfer, in its
entirety, of the Working Capital Debt or the Term Loan Debt, as the case may be,
including any done in respect of any "takeout" refinancing, the Agent for the
Lenders not assigning or transferring may require the successor Agent for the
assigning or transferring Lenders to execute and deliver an agreement identical
to this Intercreditor Agreement (subject to changing names of parties and
addresses, as appropriate) with such Agent as a condition to such assignment or
transfer becoming effective.

          4.4 Insolvency. This Intercreditor Agreement shall be applicable both
before and after the filing of any petition by or against the Borrowers or any
Obligor under the U.S. Bankruptcy Code and all converted or succeeding cases in
respect thereof, and all references herein to the Borrowers or any Obligor shall
be deemed to apply to the trustee for the Borrowers or any Obligor and to the
Borrowers or any Obligor as debtor-in-possession. The relative rights of Working
Capital Agent, Working Capital Lenders, Term Loan Agent and Term Loan Lenders in
or to any distributions from or in respect of any Collateral or proceeds of
Collateral, shall continue after the filing thereof on the same basis as prior
to the date of the petition, subject to any court order approving the financing
of, or use of cash collateral by, the Borrowers or any Obligor as
debtor-in-possession.

          4.5 Bankruptcy Financing.

               (a) Subject to subsection (b) below, if any Obligor shall become
subject to a case under the U.S. Bankruptcy Code and, as
debtor(s)-in-possession, move for approval of financing under Section 364 of the
U.S. Bankruptcy Code or the use of cash collateral under Section 363 of the U.S.
Bankruptcy Code to be provided by:

                    (i) Working Capital Agent and Working Capital Lenders (the
     "Working Capital DIP Lenders"), Term Loan Agent agrees that no objection
     will be raised by Term Loan Agent or Term Loan Lenders to any such
     financing or use of such cash collateral on the grounds of a failure to
     provide "adequate protection" for the Liens of Term Loan Agent or Term Loan
     Lenders so long as (i) the interest rate, fees, advance rates, lending
     sublimits and limits and other terms are commercially reasonable under the
     circumstances, (ii) Term Loan Agent retains a Lien on the Collateral
     (including proceeds thereof arising after the commencement of such
     proceeding) with the same priority as existed prior to the commencement of
     the case under the U.S. Bankruptcy Code, (iii) Term Loan Agent receives a
     replacement Lien on post-petition assets to the same

                                       27

<PAGE>

     extent granted to the DIP Lenders, with the same priority as existed prior
     to the commencement of the case under the U.S. Bankruptcy Code, and (iv)
     such financing or use of cash collateral is subject to the terms of this
     Intercreditor Agreement.

                    (ii) Term Loan Agent and Term Loan Lenders (the "Term Loan
     DIP Lenders"), Working Capital Agent agrees that no objection will be
     raised by Working Capital Agent or Working Capital Lenders to any such
     financing or use of such cash collateral on the grounds of a failure to
     provide "adequate protection" for the Liens of Working Capital Agent or
     Working Capital Lenders so long as (i) the interest rate, fees, advance
     rates, lending sublimits and limits and other terms are commercially
     reasonable under the circumstances, (ii) Working Capital Agent retains a
     Lien on the Collateral (including proceeds thereof arising after the
     commencement of such proceeding) with the same priority as existed prior to
     the commencement of the case under the U.S. Bankruptcy Code, (iii) Working
     Capital Agent receives a replacement Lien on post-petition assets to the
     same extent granted to the Term Loan DIP Lenders, with the same priority as
     existed prior to the commencement of the case under the U.S. Bankruptcy
     Code, and (iv) such financing or use of cash collateral is subject to the
     terms of this Intercreditor Agreement.

                    (iii) Nothing contained in the foregoing or otherwise herein
     shall be deemed to limit the rights of any Agent or Lender to object to
     post-petition financing or use of cash collateral on any grounds other than
     the failure to provide "adequate protection" for the Liens of the objecting
     Agent or Lender.

               (b) If any Obligor shall become subject to a case under the U.S.
Bankruptcy Code, (i) the Term Loan Agent agrees that neither the Term Loan Agent
nor the Term Loan Lenders will provide to such Person(s) as
debtors-in-possession any financing under Section 364(d) of the U.S. Bankruptcy
Code, to the extent that the Term Loan Agent or any Term Loan Lender would, in
connection with such financing, be granted a Lien on the pre-petition Working
Capital Priority Collateral of such Debtor that was pari passu with, or had
priority over, any Lien of the Working Capital Agent as to such Working Capital
Priority Collateral, and (ii) the Working Capital Agent agrees that neither
Working Capital Agent nor the Working Capital Lenders will provide to any
Obligor as debtor-in-possession any financing under Section 364(d) of the U.S.
Bankruptcy Code to the extent that the Working Capital Agent or any Working
Capital Lender would, in connection with such financing, be granted a Lien on
the pre-petition Collateral (other than the Working Capital Priority Collateral)
of such Debtor that was pari passu with, or had priority over, any Lien of Term
Loan Agent as to such Term Loan Priority Collateral to the extent of any Term
Loan A Debt.

               (c) For purposes of this Section, notice of a proposed financing
or use of cash collateral shall be deemed given when given in the manner
prescribed by Section 4.7 hereof.

          4.6 Bailee for Perfection. Each Agent hereby appoints the other Agent
to act as its agent and bailee for the purposes of perfecting their respective
Liens in and on any of the Collateral in the possession or control of such
Person; provided, that, an Agent in the possession or control of any Collateral
shall not have any duty or liability to protect or preserve any rights

                                       28

<PAGE>

pertaining to any of the Collateral and, except for gross negligence or willful
misconduct as determined pursuant to a final non-appealable order of a court of
competent jurisdiction, the non-possessing or non-controlling Agent hereby
waives and releases the other Agent from all claims and liabilities arising
pursuant to the possessing or controlling Agent's role as agent and bailee with
respect to the Collateral, so long as the possessing or controlling Agent uses
the same degree of care with respect thereto as the possessing or controlling
Agent uses for similar property pledged to the possessing or controlling Agent
as collateral for indebtedness of others to the possessing Agent. After the
Working Capital Loan Termination Date, Working Capital Agent shall deliver the
remainder of the Collateral, if any, in its possession to Term Loan Agent,
transfer control of the remainder of the Collateral, if any, under its control
to the Term Loan Agent and assign to the Term Loan Agent all of the Working
Capital Agent's interest in any blocked depository accounts of Borrowers or any
Obligor under the control of Working Capital Agent, in each case, except as may
otherwise be required by applicable law or court order. After the Term Loan A
Repayment Date, Term Loan Agent shall deliver the remainder of the Collateral,
if any, in its possession to Working Capital Agent, transfer control of the
remainder of the Collateral, if any, under its control to the Working Capital
Agent and assign to the Working Capital Agent all of the Term Loan Agent's
interest in any blocked depository accounts of Borrowers or any Obligor under
the control of Term Loan Agent; in each case, except as may otherwise be
required by applicable law or court order. Upon such delivery of control of the
remainder of the Collateral to Working Capital Agent, Working Capital Agent
shall hold such Collateral in its possession as agent and bailee for Term Loan
Agent for the benefit of the Term A Lenders in accordance with the first
sentence of this Section 4.6.

          4.7 Notices. All notices, requests and demands to or upon the
respective parties hereto shall be in writing and shall be deemed duly given,
made or received: if delivered in Person, immediately upon delivery; if by
telex, telegram or facsimile transmission, immediately upon confirmation of
receipt; if by nationally recognized overnight courier service with instructions
to deliver the next business day, two (2) business days after sending; and if
mailed by certified mail, return receipt requested, seven (7) calendar days
after mailing to the parties at their addresses set forth below (or to such
other addresses as the parties may designate in accordance with the provisions
of this Section):

          To Working Capital Agent or    CAPITALSOURCE FINANCE LLC
             any Working Capital Lender: 4445 Willard Avenue
                                         Chevy Chase, MD 20815
                                         Attention: Portfolio Manager-Business
                                         Credit Services
                                         Telecopier No.: (301) 841-2889

                                       29

<PAGE>

          To Term Loan Agent or any Term CSE MORTGAGE LLC
             Loan Lender:                4445 Willard Avenue
                                         Chevy Chase, MD 20815
                                         Attention: Portfolio Manager-Business
                                         Credit Services
                                         Telecopier No.: (301) 841-2889

Each of the above Lenders may change the address(es) to which all notices,
requests and other communications are to be sent by giving written notice of
such address change to the other Lenders in conformity with this Section, but
such change shall not be effective until notice of such change has been received
by the other Lenders.

          4.8 Counterparts. This Intercreditor Agreement may be executed in any
number of counterparts, each of which shall be an original with the same force
and effect as if the signatures thereto and hereto were upon the same
instrument.

          4.9 GOVERNING LAW. THE VALIDITY, CONSTRUCTION AND EFFECT OF THIS
INTERCREDITOR AGREEMENT SHALL BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF
NEW YORK (WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAW).

          4.10 CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL. EACH PARTY HERETO
HEREBY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT
COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND OF THE SUPREME COURT OF THE
STATE OF NEW YORK SITTING IN NEW YORK COUNTY (INCLUDING ITS APPELLATE DIVISION),
AND OF ANY OTHER APPELLATE COURT IN THE STATE OF NEW YORK, FOR THE PURPOSES OF
ALL LEGAL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS INTERCREDITOR AGREEMENT
OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY HERETO HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT
MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH PROCEEDING
BROUGHT IN SUCH A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN SUCH A
COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. EACH PARTY HERETO HEREBY WAIVES
ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION
ARISING UNDER THIS INTERCREDITOR AGREEMENT OR IN ANY WAY CONNECTED WITH OR
RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO IN RESPECT OF THIS
INTERCREDITOR AGREEMENT, WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER
IN CONTRACT, TORT, EQUITY OR OTHERWISE.

          4.11 Complete Agreement. This written Intercreditor Agreement is
intended by the parties as a final expression of their agreement and is intended
as a complete statement of the terms and conditions of their agreement with
respect to the subject matter hereof.

                                       30

<PAGE>

          4.12 No Third Parties Benefited. Except as expressly provided in
Section 4.3 and except for consents that are deemed to have been given under
Section 2.9 hereof, this Intercreditor Agreement is solely for the benefit of
the Lenders and their respective successors, participants and assigns; and no
other Person (including, expressly, but without limitation, any Obligor) shall
have any right, benefit, priority or interest under, or because of the existence
of, this Intercreditor Agreement.

          4.13 Disclosures; Non-Reliance. Each Lender is, and shall in the
future remain, fully informed as to the financial condition and other affairs of
Borrowers and each Obligor, and no Lender shall have any obligation or duty to
disclose any such information to the other Lenders. Except as expressly set
forth in this Intercreditor Agreement, the parties hereto have not otherwise
made to each other nor do they hereby make to each other any warranties, express
or implied, nor do they assume any liability to each other with respect to: (a)
the enforceability, validity, value or collectability of any of the Term Loan
Debt or the Working Capital Debt or any guarantee or security that may have been
granted to any of them in connection therewith, (b) the Borrowers' or any
Obligors' title to or right to transfer any of the Collateral, or (c) any other
matter except as expressly set forth in this Intercreditor Agreement.

          4.14 Term. This Intercreditor Agreement is a continuing agreement and
shall remain in full force and effect until the later of: (i) the Working
Capital Loan Termination Date or (ii) the Term Loan Termination Date; provided,
however, that any provisions of this Agreement that by their terms expressly
survive the termination of this Agreement shall continue in full force and
effect.

          4.15 Marshaling. Term Loan Agent and each of the other Term Loan
Lenders hereby waive to the fullest extent permitted by applicable law, any
rights such Lender may have under applicable law to assert the doctrine of
marshaling or to otherwise require any of the Working Capital Lenders to marshal
any Property of any Obligor for the benefit of the Term Loan Lenders. The
Working Capital Agent and each of the other Working Capital Lenders hereby waive
to the fullest extent permitted by applicable law, any rights such Lender may
have under applicable law to assert the doctrine of marshaling or to otherwise
require any of the Term Loan Lenders to marshal any Property of any Obligor for
the benefit of the Working Capital Lenders.

          4.16 Lien Subordination Only. Nothing in this Intercreditor Agreement
(including, without limitation, the definitions of Working Capital Debt or Term
Loan Debt) shall be deemed to subordinate the right of any of the Lenders,
vis-a-vis any other Lenders, to receive any payment in respect of any Debt by
any Obligor at any time or from time to time, except for Proceeds of Collateral
obtained in contravention hereof.

          4.17 No Agency or Fiduciary Obligation. Nothing contained in this
Intercreditor Agreement or otherwise shall in any event be deemed to create any
fiduciary relationship between Agents, or except as expressly set forth in
Section 3.6, to constitute either Agent the agent of the other Agent for any
purpose or to constitute such parties as a joint venture. Neither Agent assumes
any responsibility to advise the other Agent of any information known to such
Agent regarding the financial or other condition of any Obligor or any or the
Collateral, or of any other circumstances bearing upon the risk of nonpayment of
the obligations

                                       31

<PAGE>

of any Obligor. Each Agent shall be solely responsible for managing its
relationship with Obligors.

          4.18 Inconsistency. If any provision of this Intercreditor Agreement
shall be inconsistent with, or contrary to, any provisions in any Agreement or
any other instrument delivered in connection with the transactions contemplated
thereby, the applicable provision in this Intercreditor Agreement shall be
controlling and shall supersede such inconsistent provision to the extent
necessary to give full effect to all provisions contained in this Intercreditor
Agreement.

          4.19 Specific Performance. Each Agent may demand specific performance
of this Agreement; and each Agent hereby irrevocably waives any defense to such
demand based on the adequacy of a remedy at law and any other defense that might
be asserted to bar the remedy of specific performance of this Agreement in any
action that may be brought by the other Agent.

          4.20 Notice of Certain Matters.

               (a) Each Agent agrees to deliver prompt written notice to the
other Agent of its intention to obtain and/or file or otherwise record with any
governmental authority or agency any UCC financing statement, mortgage,
leasehold mortgage, deed of trust, leasehold deed of trust, intellectual
property security agreement or any other similar agreement, document or
instrument executed and/or otherwise delivered by any of the Obligors (other
than any such documents filed or recorded in connection with the closing of the
transactions being consummated on the date hereof); provided, that, the failure
of any party to give notice as required hereby shall not affect the relative
priorities of Term Loan Agent's or Working Capital Agent's respective Liens as
provided herein.

          4.21 Headings Description. The headings of the several sections of
this Intercreditor Agreement are inserted for convenience only and shall not in
any way affect the meaning or construction of any provisions of this
Intercreditor Agreement.

          4.22 Severability. Any provision of this Intercreditor Agreement that
is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective only to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any one jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction.

          4.23 Additional Obligors. In the event that, after the date of this
Intercreditor Agreement, any Person becomes obligated as a borrower or guarantor
under the Working Capital Credit Agreement or the Term Loan Financing Agreement,
Agents and such Person shall enter into a supplement to this Intercreditor
Agreement in form and substance satisfactory to Agents. Regardless of whether or
not any such supplement is executed and delivered, it is agreed that such Person
shall be deemed to be an Obligor for all purposes of this Intercreditor
Agreement with the same force and effect as if originally named as an Obligor
hereunder and, without limiting the generality of the foregoing, any and all
Liens on the Collateral of such Person that constitutes both Working Capital
Collateral and Term Loan Collateral shall be subject to the terms and conditions
of this Intercreditor Agreement. The rights and obligations of each Lender

                                       32

<PAGE>

under this Intercreditor Agreement shall remain in full force and effect
notwithstanding the addition of any such Person as an additional Obligor under
this Intercreditor Agreement.

                                       33

<PAGE>

          IN WITNESS WHEREOF, the parties have caused this Intercreditor
Agreement to be duly executed as of the day and year first above written.

                                        WORKING CAPITAL AGENT:

                                        CAPITALSOURCE FINANCE LLC

                                        By: /s/ Stephen M. Klein
                                            ------------------------------------
                                        Name: Stephen M. Klein
                                        Title: Managing Director Business Credit
                                               Group

                                        TERM LOAN AGENT:

                                        CSE MORTGAGE LLC

                                        By: /s/ Stephen M. Klein
                                            ------------------------------------
                                        Name: Stephen M. Klein
                                        Title: Managing Director

                                       34

<PAGE>

                           ACKNOWLEDGMENT OF BORROWERS

          Reference is made to the Intercreditor Agreement, dated as of May 31,
2006, between CAPITALSOURCE FINANCE LLC, as agent and CSE MORTGAGE LLC, as
agent, to which this Acknowledgment and Agreement of Borrowers is attached. The
term "Intercreditor Agreement" as used herein shall mean and refer to such
Intercreditor Agreement. Any capitalized term used below, but not expressly
defined below, shall have the meaning given to such term in the Intercreditor
Agreement.

          Each of the undersigned hereby acknowledges receipt of the
Intercreditor Agreement.

          Each of the undersigned further acknowledges that it is not a party to
the Intercreditor Agreement and does not and will not receive any right,
benefit, priority or interest under or because of the existence of the
Intercreditor Agreement (except for a consent which is deemed to have been given
under Section 2.9 thereof).

                                        LEXINGTON PRECISION CORPORATION

                                        By: /s/ Michael A. Lubin
                                            ------------------------------------
                                        Name: Michael A. Lubin
                                        Title: Chairman

                                        LEXINGTON RUBBER GROUP, INC.

                                        By: /s/ Michael A. Lubin
                                            ------------------------------------
                                        Name: Michael A. Lubin
                                        Title: Chairman

                                       35

<PAGE>

                                 ACKNOWLEDGMENT

          Reference is made to the Intercreditor Agreement, dated as of May 31,
2006, between CAPITALSOURCE FINANCE LLC, as agent and CSE MORTGAGE LLC, as
agent, to which this Acknowledgment is attached. The term "Intercreditor
Agreement" as used herein shall mean and refer to such Intercreditor Agreement.
Each of the undersigned hereby acknowledges receipt of the Intercreditor
Agreement and agrees to be bound by the terms thereof.

                                        WEBSTER BUSINESS CREDIT CORPORATION

                                        By: /s/ Deborah Kos-Harmon
                                            ------------------------------------
                                        Name: Deborah Kos-Harmon
                                        Title: Vice President

                                        CAPITALSOURCE FINANCE LLC

                                        By: /s/ Stephen M. Klein
                                            ------------------------------------
                                        Name: Stephen M. Klein
                                        Title: Managing Director Business Credit
                                               Group

                                        CSE MORTGAGE LLC

                                        By: /s/ Stephen M. Klein
                                            ------------------------------------
                                        Name: Stephen M. Klein
                                        Title: Managing Director Business Credit
                                               Group

                                        DMD SPECIAL SITUATIONS, LLC

                                        By: CS Capital Advisors LLC, its manager

                                        By: /s/ Keith D. Reuben
                                            ------------------------------------
                                        Name: Keith D. Reuben
                                        Title: Senior Vice President

                                       36<PAGE>

                                                                   EXHIBIT 10.1*

                                LICENSE AGREEMENT
By and between :

LACOSTE S.A., a French corporation organized and existing under the laws of
France whose registered office and principal place of business is located at 8,
rue de Castiglione, 75001 Paris (France), represented by its President Directeur
General, Monsieur Michel LACOSTE.

     hereinafter referred to as "LACOSTE",

SPORLOISIRS S.A., a Swiss corporation organized and existing under the laws of
Switzerland whose registered office and principal place of business is located
at 8, rue Muzy, 1207 Geneva (Switzerland), represented by its Directors,
Monsieur Michel LACOSTE and Monsieur Daniel VOLLENWEIDER.

     hereinafter referred to as "SPL",

LACOSTE ALLIGATOR S.A., a Swiss corporation organized and existing under the
laws of Switzerland whose registered office and principal place of business is
located at 8, rue Muzy, 1207 Geneva (Switzerland), represented by its Directors,
Monsieur Michel LACOSTE and Monsieur Daniel VOLLENWEIDER.

     hereinafter referred to as "LCA",

all three together hereinafter referred to as the "LICENSOR",

and :

MGI LUXURY GROUP, S.A., a company organized and existing under the laws of
Switzerland whose registered office and principal place of business is located
at 35 rue de Nidau, CH-2501 Bienne (Switzerland), acting on its behalf and on
behalf of the entities controlling, controlled by MGI LUXURY GROUP, S.A. or
under common control with MGI LUXURY GROUP, S.A., represented by its Directors,
Mr. Kurt BURKI and Mr. Richard COTE

     hereinafter referred to as the "MASTER LICENSEE".

*    CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED FROM PAGES 8, 37,
     38, 41, 42, 45, 49 - 51, 54, 55, 61, 63, 66, SCHEDULE XI (PAGES 7 - 39, 41
     - 57, 61), AND SCHEDULES XIV AND XV AND FILED SEPARATELY WITH THE
     SECURITIES AND EXCHANGE COMMISSION ("SEC") PURSUANT TO RULE 24b-2 OF THE
     SECURITIES EXCHANGE ACT OF 1934, AS AMENDED ("1934 ACT").

<PAGE>

                                      -2-

WITNESSETH :

WHEREAS, the LICENSOR has created and developed over a period of many years a
well known and distinctive line of articles of sports and leisure apparel for
men, women and children for sport and leisure (the "LACOSTE APPAREL PRODUCTS",
as such term is hereinafter defined); and

WHEREAS, in addition to the LACOSTE APPAREL PRODUCTS, the LICENSOR has created
and developed other lines of products such as toiletries, sunglasses and frames
for optical glasses, leisure and sports bags, leathergoods products, shoes,
terry towels, bath towels, bath robes, household linen, umbrellas, belts (the
"OTHER LACOSTE PRODUCTS", as such term is hereinafter defined); and

WHEREAS, the LICENSOR has also contributed to the creation and the development
of a line of watches and time-keeping devices (the "LACOSTE WATCHES", as such
term is hereinafter defined. And whereas the LICENSOR is actively researching
and developing other new products; and

WHEREAS, the LACOSTE APPAREL PRODUCTS, the OTHER LACOSTE PRODUCTS, as well as
the LACOSTE WATCHES, which are characterized by an emblem consisting of the
pictorial representation of an alligator or a crocodile (the "CROCODILE", as
such term is hereinafter defined), are renowned and sold world-wide under the
trade names of "LA CHEMISE LACOSTE", "CHEMISE LACOSTE" or "LACOSTE", the word
"LACOSTE" recalling the name of Rene Lacoste the famous tennis champion who
invented the original shirt, and the CROCODILE recalling his nickname on the
tennis courts; and

WHEREAS, the LACOSTE APPAREL PRODUCTS, the OTHER LACOSTE PRODUCTS and the
LACOSTE WATCHES are manufactured and/or distributed by partners selected by the
LICENSOR; and

WHEREAS, the MODELS (as such term is hereinafter defined) making up the lines of
the LACOSTE WATCHES together with their specifications shall be the property of
the LICENSOR to be used exclusively by the MASTER LICENSEE within the scope of
this MASTER AGREEMENT (as such term is hereinafter defined), it being understood
however that certain elements of the MODELS may, in certain circumstances,
belong either to third parties or, in the case of elements previously used by
MASTER LICENSEE, to MASTER LICENSEE; and

<PAGE>

                                      -3-

WHEREAS, in order to protect its rights, the LICENSOR has registered, directly
or indirectly, its trademarks (the "LACOSTE TRADEMARKS", as such term is
hereinafter defined) world-wide, the principal representations of which are
appended hereto as Schedule I; and

WHEREAS, the ownership of such registrations ensures the LICENSOR a clear
exclusive right to use or license the right to use the LACOSTE TRADEMARKS for
many different classes of products (including class 14 of the international
classification, for watches and watches' accessories) in most countries around
the world; and

WHEREAS, despite its ownership of the LACOSTE TRADEMARKS, the LICENSOR is not
however in a position to warrant without limitation unimpeded use of all the
LACOSTE TRADEMARKS in certain countries, due (a) to the existence of conflicting
registrations (in particular in various far-east Asian jurisdictions, amongst
which the People's Republic of China), or (b) to the lack of registration of
certain of the LACOSTE TRADEMARKS, or (c) to the specificities and uncertainties
generally associated with trademark law in certain jurisdictions; and

WHEREAS, the LACOSTE TRADEMARKS in the countries listed in Schedule IV.a are the
property of LACOSTE; and

WHEREAS, the LACOSTE TRADEMARKS in the countries listed in Schedule IV.b are the
property of SPL; and

WHEREAS, the LACOSTE TRADEMARKS in the countries listed in Schedule IV.c are the
property of LCA; and

WHEREAS, through the development of the different lines of the LACOSTE APPAREL
PRODUCTS, OTHER LACOSTE PRODUCTS and LACOSTE WATCHES, the LICENSOR has acquired
a significant know-how in the fields of their styling, marketing and
merchandising, advertising and promotion (the "STYLING KNOW-HOW", the "MARKETING
AND MERCHANDISING KNOW-HOW", and the "ADVERTISING AND PROMOTION KNOW-HOW", as
such terms are hereinafter defined); and

WHEREAS, the MASTER LICENSEE is a company specialized in the creation,
development, manufacture, distribution, marketing, merchandising, advertising,
promotion and sale of watches and time-keeping devices, and has acquired a
significant know-how in such fields (the "WATCHES KNOW-HOW", as such term is
hereinafter defined); and

<PAGE>

                                      -4-

WHEREAS, in view of the world-wide development of the sales of the LACOSTE
APPAREL PRODUCTS, OTHER LACOSTE PRODUCTS and LACOSTE WATCHES, it is more than
ever necessary, in the best interest of all the licensees of the LACOSTE
TRADEMARKS, that without interfering in the running of their day-to-day
business, the LICENSOR be able to maintain the standards and quality of the
LACOSTE TRADEMARKS IMAGE (as such term is hereinafter defined), particularly in
coordinating the styling, the marketing and the merchandising, the advertising
and the promotion of all LACOSTE APPAREL PRODUCTS, OTHER LACOSTE PRODUCTS and
LACOSTE WATCHES; and

WHEREAS, in order to guarantee the authenticity of its creations and to ensure
the homogeneity of their distribution at an international level, the LICENSOR
has implemented selective distribution systems wherever and whenever
practicable, so as to allow all its licensees and distributors to select and
approve their retailers on the basis of objective criteria both with respect to
quality and sales techniques; and

WHEREAS, the selective distribution systems implemented by the LICENSOR in
connection with the LACOSTE APPAREL PRODUCTS consist of the "APPROVED APPAREL
RETAILERS" SELECTIVE DISTRIBUTION SYSTEM (as such term is hereinafter defined)
and of the "LACOSTE BOUTIQUES AND LACOSTE CORNERS" SELECTIVE DISTRIBUTION SYSTEM
(as such term is hereinafter defined); and

WHEREAS, the selective distribution systems implemented by the LICENSOR in
connection with each of the OTHER LACOSTE PRODUCTS incorporate, in addition to
approved retailers, and for certain categories of OTHER LACOSTE PRODUCTS, a
certain number of shops and special locations in shops dedicated to the sale of
such OTHER LACOSTE PRODUCTS; and

WHEREAS, the selective distribution system implemented by the LICENSOR in
connection with the LACOSTE WATCHES incorporates APPROVED WATCHES RETAILERS; and

WHEREAS, pursuant to an agreement as amended and presently in force which shall
terminate on December 31, 2006, (such agreements being the "PRIOR AGREEMENT", as
such term is hereinafter defined), the LICENSOR has granted to VIMONT S.A., a
Swiss corporation organized and existing under the laws of Switzerland whose
registered office and principal place of business is located at 40,
Karlneuhausstrasse, 2502 Bienne (Switzerland) ("VIMONT", as such term is
hereinafter defined)

<PAGE>

                                      -5-

certain rights in connection with the creation, development, manufacture,
distribution, marketing, merchandising, advertising, promotion and sale of the
LACOSTE WATCHES; and

WHEREAS, the LICENSOR wishes to develop world-wide the manufacture and the
distribution of the LACOSTE WATCHES; and

WHEREAS, the MASTER LICENSEE wishes to obtain from the LICENSOR in the TERRITORY
(as such term is hereinafter defined) a license allowing it to create,
manufacture, promote, market, sell and distribute the LACOSTE WATCHES through
its LACOSTE WATCHES SELECTIVE DISTRIBUTION SYSTEM (as such term is hereinafter
defined), and to use also the STYLING KNOW-HOW, the MARKETING AND MERCHANDISING
KNOW-HOW and the ADVERTISING AND PROMOTION KNOW-HOW of the LICENSOR; and

WHEREAS, the MASTER LICENSEE is willing to commit the resources and make the
necessary investments to create, develop, manufacture, promote, market, sell and
distribute the LACOSTE WATCHES; and

WHEREAS, the LICENSOR is willing to grant to the MASTER LICENSEE the necessary
rights in connection with the creation, development, manufacture, distribution,
marketing, merchandising, advertising, promotion and sale of the LACOSTE WATCHES
under the terms and conditions of this MASTER AGREEMENT (as such term is
hereinafter defined).

THE PARTIES HEREBY AGREE AS FOLLOWS :

ARTICLE 1 - DEFINITIONS

As used herein, the following terms shall be defined as set forth below :

1.1  "LACOSTE" shall mean LACOSTE S.A., a French corporation organized and
     existing under the laws of France whose registered office and principal
     place of business is located at 8, rue de Castiglione, 75001 Paris
     (France), acting on its behalf and on behalf of the companies controlled by
     LACOSTE S.A. with the exception of SPL and LCA.

1.2  "SPL" shall mean SPORLOISIRS S.A., a Swiss corporation organized and
     existing under the laws of Switzerland whose registered office and
     principal place of business

<PAGE>

                                      -6-

     is located at 8, rue Muzy, 1207 Geneva (Switzerland), acting on its behalf
     and on behalf of the companies controlled by SPORLOISIRS S.A. with the
     exception of LACOSTE and LCA.

1.3  "LCA" shall mean LACOSTE ALLIGATOR S.A., a Swiss corporation organized and
     existing under the laws of Switzerland whose registered office and
     principal place of business is located at 8, rue Muzy, 1207 Geneva
     (Switzerland), acting on its behalf and on behalf of the companies
     controlled by LACOSTE ALLIGATOR S.A. with the exception of LACOSTE and SPL.

1.4  "LICENSOR" shall mean LACOSTE, SPL and LCA taken all three together or (as
     the case may be) any one of them.

1.5  "MASTER LICENSEE" shall mean MGI LUXURY GROUP, S.A., a company organized
     and existing under the laws of Switzerland whose registered office and
     principal place of business is located at 35 rue de Nidau, CH-2501, Bienne
     (Switzerland), acting on its behalf and on behalf of the entities
     controlling, controlled by MGI LUXURY GROUP, S.A. or under common control
     with MGI LUXURY GROUP, S.A.

1.6  "VIMONT" shall mean VIMONT S.A., a Swiss corporation organized and existing
     under the laws of Switzerland whose registered office and principal place
     of business is located at 40, Karlneuhausstrasse, 2502 Bienne
     (Switzerland), acting on its behalf and on behalf of the companies
     controlled by VIMONT S.A. or under common control with VIMONT S.A.

1.7  "MASTER AGREEMENT" shall mean the present LICENSE AGREEMENT.

1.8  "PRIOR AGREEMENT" shall mean the agreement as amended and presently in
     force and which will terminate on December 31, 2006, as applicable,
     pursuant to which the LICENSOR has granted to VIMONT certain rights in
     connection with the creation, development, manufacture, distribution,
     marketing, merchandising, advertising, promotion and sale of the LACOSTE
     WATCHES.

1.9  "DEVANLAY" shall mean the worldwide exclusive licensee of the LICENSOR for
     LACOSTE APPAREL PRODUCTS.

<PAGE>

                                      -7-

1.10 "LACOSTE APPAREL PRODUCTS DISTRIBUTOR" shall mean those parties in certain
     countries to which the distribution of the LACOSTE APPAREL PRODUCTS in such
     countries has been granted by DEVANLAY.

1.11 "CROCODILE" shall mean the pictorial representation of an alligator or a
     crocodile as depicted Schedule II.

1.12 "LACOSTE TRADEMARKS" shall mean any or all trademarks relating to the name
     "Lacoste" and/or the CROCODILE owned by the LICENSOR depicted in Schedule
     I, as listed in Schedule III.

1.13 "LACOSTE TRADEMARKS IMAGE" shall mean the presently existing identification
     in the principal markets where the LACOSTE APPAREL PRODUCTS, the OTHER
     LACOSTE PRODUCTS and the LACOSTE WATCHES are distributed, between the
     LACOSTE TRADEMARKS and good taste, authenticity, quality, functionality,
     modernity, elegance, high-end sports and leisure, however at competitive
     quality/price ratios. The LACOSTE TRADEMARKS IMAGE shall be judged in
     relation to all the elements making up the perception by the consumer of
     the LACOSTE WATCHES as to their style, quality, price, marketing and
     merchandising, advertising and promotion.

1.14 "LICENSED TRADEMARKS" shall mean the trademark Lacoste, the Crocodile and
     such of the other LACOSTE TRADEMARKS, if any, which are to be used by the
     MASTER LICENSEE in the TERRITORY as will be specified by the LICENSOR on a
     country by country basis according to the provision of Article 12.1
     hereinafter in connection with the creation, development, manufacture,
     distribution, marketing, merchandising, advertising, promotion and sale of
     the LACOSTE WATCHES.

1.15 "LACOSTE WATCHES" shall mean the watches and time-keeping devices belonging
     to class 14 of the Classification Internationale des Produits et des
     Services (as listed in Schedule V) as well as any accessory thereto
     (straps, cases, etc.), packaging and wrapping bearing the LICENSED
     TRADEMARK manufactured and marketed by the MASTER LICENSEE itself and/or
     under its control and responsibility under the terms of this MASTER
     AGREEMENT, or marketed prior to this MASTER AGREEMENT under the terms of
     the PRIOR AGREEMENT.

<PAGE>

                                      -8-

1.16 "SECONDS" shall consist of LACOSTE WATCHES containing only minor defects
     that do not affect the appearance or operation of the watches.

1.17 "LACOSTE APPAREL PRODUCTS" shall mean those articles of clothing (the
     categories of which are listed in Schedule VI) bearing the LACOSTE
     TRADEMARKS.

1.18 "OTHER LACOSTE PRODUCTS" shall mean the products listed in Schedule VII
     bearing the LACOSTE TRADEMARKS. For the avoidance of doubt, the OTHER
     LACOSTE PRODUCTS shall include neither the LACOSTE APPAREL PRODUCTS nor the
     LACOSTE WATCHES.

1.19 "MODELS" shall mean any and all creations specific to the LACOSTE WATCHES,
     or part thereof, already in existence at the time of execution of this
     MASTER AGREEMENT or which shall be developed during its life by the
     LICENSOR and/or the MASTER LICENSEE and/or any SUB-LICENSEE alone or in
     co-operation with one another, it being understood however that certain
     elements of the MODELS may, in certain circumstances, belong either to
     third parties, or, in the case of elements previously used by MASTER
     LICENSEE, to MASTER LICENSEE.

1.20 The countries listed in Schedule VIII.a constituting Europe, Africa and
     Middle-East shall together form "SUB-TERRITORY A".

1.21 The countries listed in Schedule VIII.b constituting the Far-East shall
     together form "SUB-TERRITORY B".

1.22 The countries listed in Schedule VIII.c constituting North-America shall
     together form "SUB-TERRITORY C".

1.23 The countries listed in Schedule VIII.d constituting Central America and
     South-America shall together form "SUB-TERRITORY D".

1.24 The "TERRITORY" shall mean the whole world, i.e. the reunion of
     SUB-TERRITORY A, SUB-TERRITORY B, SUB-TERRITORY C.

1.25 "MAIN COUNTRIES" shall mean the * NET SALES in the Territory.

*    CONFIDENTIAL PORTION OF THIS EXHIBIT OMITTED AND FILED SEPARATELY WITH THE
     SEC PURSUANT TO RULE 24b-2 OF THE 1934 ACT.

<PAGE>

                                      -9-

1.26 "SUB-LICENSEE" shall mean any entity selected by the MASTER LICENSEE and
     approved by the LICENSOR for the manufacture and distribution of certain
     LACOSTE WATCHES in certain countries.

1.27 "SUB-LICENSE AGREEMENT" shall mean an agreement entered into by and between
     the MASTER LICENSEE and a SUB-LICENSEE in execution of the undertakings of
     the MASTER LICENSEE under the terms of Article 2.2.3 hereinafter.

1.28 "DISTRIBUTOR" shall mean any entity (not including any entity controlling,
     controlled by or under common control with the MASTER LICENSEE) selected by
     the MASTER LICENSEE and approved by the LICENSOR for the wholesale
     distribution of LACOSTE WATCHES in one or more countries.

1.29 "DISTRIBUTION AGREEMENT" shall mean an agreement entered into by and
     between the MASTER LICENSEE and a DISTRIBUTOR in execution of the
     undertakings of the MASTER LICENSEE under the terms of Article 2.3.3
     hereinafter.

1.30 "SUPPLEMENTAL AGREEMENT" shall mean an agreement entered into by and
     between the LICENSOR, the MASTER LICENSEE and a SUB-LICENSEE or a
     DISTRIBUTOR in execution of the undertakings of the MASTER LICENSEE under
     the terms of Articles 2.2.4 and 2.3.4 hereinafter.

1.31 "SUB-CONTRACTOR" shall mean any entity selected by the MASTER LICENSEE for
     the manufacture (but not the distribution) of certain LACOSTE WATCHES.

1.32 "SUB-CONTRACTING AGREEMENT" shall mean an agreement entered into by and
     between the MASTER LICENSEE and a SUB-CONTRACTOR in execution of the
     undertakings of the MASTER LICENSEE under the terms of Article 5.2.1
     hereinafter.

1.33 "SUPPLIER" shall mean any entity selected by the MASTER LICENSEE or a
     SUB-LICENSEE or a SUB-CONTRACTOR for the manufacture of components,
     packaging, merchandising, advertising or promotional items, furniture
     and/or any element of any kind bearing or representing the LICENSED
     TRADEMARKS to be used for or in connection with the LACOSTE WATCHES.

1.34 "SUPPLY AGREEMENT" shall mean an agreement entered into by and between the
     MASTER LICENSEE or a SUB-LICENSEE or a

<PAGE>

                                      -10-

     SUB-CONTRACTOR and a SUPPLIER in execution of the undertakings of the
     MASTER LICENSEE under the terms of Article 5.3.1 hereinafter.

1.35 "STYLING KNOW-HOW" shall mean all accumulated elements of product research
     implemented by the LICENSOR for the LACOSTE APPAREL PRODUCTS, the LACOSTE
     OTHER PRODUCTS and the LACOSTE WATCHES, according to the LACOSTE TRADEMARKS
     IMAGE and more precisely materials, colors, designs and specifications, all
     of which know-how is regularly updated and improved as a result of the
     LICENSOR's research, and which know-how is owned by or originated from the
     LICENSOR and is made available to the MASTER LICENSEE and to other
     LICENSOR's licensees through the LICENSOR and which the LICENSOR is not
     otherwise obliged to hold in confidence.

1.36 "MARKETING AND MERCHANDISING KNOW-HOW" shall mean all accumulated
     expertise, which is implemented world-wide by the LICENSOR, concerning the
     distribution of the LACOSTE APPAREL PRODUCTS, the LACOSTE OTHER PRODUCTS
     and the LACOSTE WATCHES according to the LACOSTE TRADEMARKS IMAGE including
     the level of quality and the techniques of such distribution (i.e., the
     selection, training, supervision, etc. of the retailers), all of which
     know-how is regularly updated and improved as a result of the LICENSOR's
     research, and which know-how is owned by or originated from the LICENSOR
     and is made available to the MASTER LICENSEE and to other LICENSOR's
     licensees through the LICENSOR and which the LICENSOR is not otherwise
     obliged to hold in confidence.

1.37 "PROMOTION AND ADVERTISING KNOW-HOW" shall mean all accumulated expertise
     which is implemented world-wide by the LICENSOR in maintaining a high
     quality promotion and advertising policy for the LACOSTE TRADEMARKS IMAGE,
     the LACOSTE APPAREL PRODUCTS, the OTHER LACOSTE PRODUCTS and the LACOSTE
     WATCHES through selected and controlled channels, all of which know-how is
     regularly updated and improved as a result of the LICENSOR's research, and
     which know-how is owned by or originated from the LICENSOR and is made
     available to the MASTER LICENSEE and to other LICENSOR's licensees through
     the LICENSOR and which the LICENSOR is not otherwise obliged to hold in
     confidence.

1.38 "WATCHES KNOW-HOW" shall mean all accumulated world-wide expertise of the
     MASTER LICENSEE concerning the creation,

<PAGE>

                                      -11-

     development, manufacture, distribution, marketing, merchandising,
     advertising, promotion and sale of watches and time-keeping devices at a
     high quality level and according to selected and controlled techniques and
     fixtures designed to facilitate the distribution of watches (including, but
     not limited to, the design of display materials and showcases), which
     know-how is regularly updated and improved by the MASTER LICENSEE and is
     owned by or originated from the MASTER LICENSEE and is made available to
     the LICENSOR and to other LICENSOR's licensees through the LICENSOR and
     which the MASTER LICENSEE is not otherwise obliged to hold in confidence.

1.39 "APPROVED WATCHES RETAILERS" shall mean the selected retailers (the
     categories of which are listed in Schedule IX.a) which have entered with
     the MASTER LICENSEE, its SUB-LICENSEES or its DISTRIBUTORS, whenever
     possible, into specific agreements defining the conditions which need to be
     fulfilled and applied for the sale of the LACOSTE WATCHES through the
     LACOSTE WATCHES SELECTIVE DISTRIBUTION SYSTEM.

1.40 "LACOSTE CORNERS" shall mean the locations in certain shops of high
     standing which are devoted exclusively to the sale of the LACOSTE APPAREL
     PRODUCTS and, subject to the provisions of Article 7.2 hereinafter, of
     certain LACOSTE WATCHES and/or OTHER LACOSTE PRODUCTS, using various
     fittings, displays, appliances, original furniture and equipment specially
     designed or approved by the LICENSOR and are authorized to use the name
     "Lacoste" and the CROCODILE as signboards and as service marks for retail
     services.

1.41 "LACOSTE BOUTIQUES" shall mean the stand alone shops belonging to
     independent retailers or to DEVANLAY or to LACOSTE APPAREL PRODUCTS
     DISTRIBUTORS and devoted exclusively to the sale of the LACOSTE APPAREL
     PRODUCTS and, subject to the provisions of Article 7.2 hereinafter, of
     certain LACOSTE WATCHES and/or OTHER LACOSTE PRODUCTS, using various
     fittings, displays, appliances, original furniture and equipment specially
     designed or approved by the LICENSOR and are authorized to use the name
     "Lacoste" and the CROCODILE as signboards and as service marks for retail
     services. Among the LACOSTE BOUTIQUES shall be included, if the economic
     conditions of the markets in question so permit, certain LACOSTE BOUTIQUES
     known as "global stores", of a sufficient size to be organized for the sale
     on a large

<PAGE>

                                      -12-

     scale not only of the LACOSTE APPAREL PRODUCTS but also of certain OTHER
     LACOSTE PRODUCTS and/or LACOSTE WATCHES.

1.42 "COMMERCIAL SURFACE" shall mean the total surface of a LACOSTE BOUTIQUE or
     a LACOSTE CORNER, excluding the stock premises.

1.43 "SALES SURFACE" shall mean, within the COMMERCIAL SURFACE of each LACOSTE
     BOUTIQUE or LACOSTE CORNER, that surface of the floor used for the
     presentation and the sale of products on the furniture (fixed to the walls
     or free-standing) or displays, excluding any area used for customers
     traffic in the point of sale and excluding the shop-windows.

1.44 "PRESENTATION SURFACE" shall mean, within the SALES SURFACE of each LACOSTE
     BOUTIQUE or LACOSTE CORNER, the total surface actually dedicated to the
     presentation and the sale of products on the furniture (fixed to the walls
     or free-standing) or displays, determined according to the rules specified
     in Schedule XVI.

1.45 "LACOSTE WATCHES SELECTIVE DISTRIBUTION SYSTEM" shall mean the group of
     APPROVED WATCHES RETAILERS organized by the MASTER LICENSEE in the
     TERRITORY in accordance with the specific guidelines of the LICENSOR to
     sell the LACOSTE WATCHES while respecting the specific criteria in the area
     of client service, merchandising, presentation, advertising, promotion and
     respect of the LACOSTE TRADEMARKS IMAGE.

1.46 ""LACOSTE BOUTIQUES AND LACOSTE CORNERS" SELECTIVE DISTRIBUTION SYSTEM"
     shall mean the group of LACOSTE BOUTIQUES and LACOSTE CORNERS organized by
     DEVANLAY in accordance with the specific guidelines of the LICENSOR and
     which comply with specific criteria with respect to client service,
     merchandising, presentation, advertising, promotion and respect of the
     LACOSTE TRADEMARKS IMAGE. The "LACOSTE BOUTIQUES AND LACOSTE CORNERS"
     SELECTIVE DISTRIBUTION SYSTEM is distinct from the LACOSTE WATCHES
     SELECTIVE DISTRIBUTION SYSTEM and from the ""APPROVED APPAREL RETAILERS"
     SELECTIVE DISTRIBUTION SYSTEM" (as such term is hereinafter defined), as
     well as from each of the selective distribution systems existing for each
     of the OTHER LACOSTE PRODUCTS.

1.47 ""APPROVED APPAREL RETAILERS" SELECTIVE DISTRIBUTION SYSTEM" shall mean the
     group of approved retailers which

<PAGE>

                                      -13-

     has been organized by DEVANLAY in accordance with the specific guidelines
     of the LICENSOR with the purpose of selling the LACOSTE APPAREL PRODUCTS
     and which comply with specific criteria with respect to client service,
     merchandising, presentation, advertising, promotion and respect of the
     LACOSTE TRADEMARKS IMAGE.

1.48 "NET SALES" shall mean the actual invoiced price for sales in the TERRITORY
     of all LACOSTE WATCHES (whether sold at regular prices or at reduced
     prices, such as end-of-season prices) by the MASTER LICENSEE, its
     SUB-LICENSEES or its DISTRIBUTORS to APPROVED WATCHES RETAILERS and members
     of the "LACOSTE BOUTIQUES AND LACOSTE CORNERS" SELECTIVE DISTRIBUTION
     SYSTEM, less returns, rebates, bad debts, trade discounts, shipping
     charges, insurance, and such sales taxes as are imposed on the MASTER
     LICENSEE, its SUB-LICENSEES or its DISTRIBUTORS by any governmental
     authority.

     Whenever NET SALES cannot be determined by the MASTER LICENSEE for any
     reason, or if the MASTER LICENSEE at its sole discretion decides that it
     prefers to refer to SALES TO DISTRIBUTORS (as such term is hereinafter
     defined), and whenever the determination of NET SALES is necessary for the
     application of any of the terms of this MASTER AGREEMENT, NET SALES shall
     then be calculated on the basis of the corresponding SALES TO DISTRIBUTORS
     multiplied by one point five (1.5).

     With regard to direct sales by the MASTER LICENSEE, its SUB-LICENSEES or
     its DISTRIBUTORS to consumers through their own retail outlets, NET SALES,
     for each reference of the LACOSTE WATCHES shall be calculated on the basis
     of the unit volume of such reference of the LACOSTE WATCHES sold through
     such outlets multiplied by the appropriate arms length, average wholesale
     prices of such products charged in such country by the MASTER LICENSEE, its
     SUB-LICENSEES or its DISTRIBUTORS to their APPROVED WATCHES RETAILERS, less
     returns, rebates, bad debts, trade discounts, shipping charges, shipping
     insurance and such sales taxes as are imposed on the MASTER LICENSEE, its
     SUB-LICENSEES or its DISTRIBUTORS by any governmental authority.

1.49 "SALES TO DISTRIBUTORS" shall mean the actual invoiced price in the
     TERRITORY of all LACOSTE WATCHES (whether made at regular prices or at
     reduced prices, such as end-of-season prices) sold by the MASTER LICENSEE,
     its SUB-

<PAGE>

                                      -14-

     LICENSEES or its SUB-CONTRACTORS to DISTRIBUTORS to be resold to APPROVED
     WATCHES RETAILERS and members of the "LACOSTE BOUTIQUES AND LACOSTE
     CORNERS" SELECTIVE DISTRIBUTION SYSTEM, less returns, rebates, bad debts,
     trade discounts, shipping charges, shipping insurance and such sales taxes
     as are imposed on the MASTER LICENSEE, its SUB-LICENSEES or its
     SUB-CONTRACTORS by any governmental authority.

1.50 "QUARTER" shall mean any three-month period ending on March 31, June 30,
     September 30 or December 31 of each year.

1.51 "DATE OF TERMINATION" shall mean the date on which the MASTER AGREEMENT
     terminates or is not renewed for any reason after the required notice
     period(s) if any.

ARTICLE 2 - RIGHTS GRANTED

2.1  The LICENSOR hereby grants to the MASTER LICENSEE, and the MASTER LICENSEE
     hereby accepts such grant, the exclusive right and license to use the
     LICENSED TRADEMARKS, including in particular the name "Lacoste" and the
     CROCODILE, the MODELS, the STYLING KNOW-HOW, the MARKETING AND
     MERCHANDISING KNOW-HOW and the PROMOTION AND ADVERTISING KNOW-HOW in
     connection with the creation, development, manufacture, distribution,
     marketing, merchandising, advertising, promotion and sale of the LACOSTE
     WATCHES in the TERRITORY.

2.2  The MASTER LICENSEE may sub-license the rights granted to it pursuant to
     Article 2.1 hereinabove to SUB-LICENSEES designated by it under the
     following conditions :

     2.2.1 The SUB-LICENSEES selected by the MASTER LICENSEE shall have to
          comply with the following criteria :

          a)   a proposed SUB-LICENSEE shall have to prove to MASTER LICENSEE
               and, if requested, LICENSOR, an adequate and appropriate
               technical, commercial ability; and

          b)   a proposed SUB-LICENSEE shall have to demonstrate to MASTER
               LICENSEE and, if requested, LICENSOR a healthy financial
               situation in proportion with its forecasted

<PAGE>

                                      -15-

               activities with respect to the LACOSTE WATCHES; and

          c)   a proposed SUB-LICENSEE shall have to clearly establish the
               identity of its financing sources, which must be in line with the
               LACOSTE TRADEMARKS IMAGE; and

          d)   a proposed SUB-LICENSEE or any of its shareholders holding in
               excess of ten percent of the voting power in such proposed
               SUB-LICENSEE, senior managers or executives shall not be in any
               way involved in the creation, development, manufacture,
               distribution, marketing, merchandising, advertising, promotion
               and sale of products in competition with the LACOSTE APPAREL
               PRODUCTS, the OTHER LACOSTE PRODUCTS or the LACOSTE WATCHES
               except if the SUB-LICENSEE can justify an independent structure
               exclusively dedicated to the LACOSTE WATCHES; and

          e)   a proposed SUB-LICENSEE, any of its shareholders holding in
               excess of ten percent of the voting power in such proposed
               SUB-LICENSEE or senior managers or executives are not or never
               have been involved in any way in acts of counterfeiting,
               imitation or unfair competition nor convicted of any other type
               of criminal activity (excluding misdemeanors).

     2.2.2 The MASTER LICENSEE shall submit to the LICENSOR a detailed file
          concerning each of the proposed SUB-LICENSEES including inter alia the
          necessary information allowing the LICENSOR to check the
          SUB-LICENSEE's conformity with the criteria defined in Article 2.2.1
          hereinabove. The LICENSOR shall have a thirty day (30) period to agree
          to or refuse in writing the proposed SUB-LICENSEE on the grounds of
          the criteria defined in Article 2.2.1 hereinabove. The LICENSOR shall
          not unreasonably withhold its approval, and shall be deemed to have
          given its approval if it has not notified MASTER LICENSEE of any
          objection within thirty (30) days of receipt of the MASTER LICENSEE's
          proposals.

<PAGE>

                                      -16-

     2.2.3 The MASTER LICENSEE shall enter with its SUB-LICENSEES into written
          SUB-LICENSE AGREEMENTS which shall conform to a general model
          previously approved in writing by the LICENSOR, and shall include the
          main provisions relating to the LICENSOR's intellectual property
          rights and to the LACOSTE TRADEMARKS IMAGE and, in addition to the
          rights and obligations which the MASTER LICENSEE wishes to
          sub-license, all obligations that the MASTER LICENSEE would otherwise
          have had to fulfill with respect to the rights sub-licensed to the
          SUB-LICENSEE and that the SUB-LICENSEE shall have to undertake to
          carry out (inter alia the obligation imposed on under Articles 3 to 8,
          12 and 14 hereinafter). The MASTER LICENSEE shall deliver to the
          LICENSOR a copy of each SUB-LICENSE AGREEMENT as soon as practicable
          after it has been signed. The MASTER LICENSEE agrees that LICENSOR may
          request from MASTER LICENSEE that it takes action against a
          SUB-LICENSEE (including claims for damages in favour of LICENSOR,
          injunctions and any other appropriate remedies) and/or terminates
          forthwith a SUB-LICENSE AGREEMENT in case of breach by such
          SUB-LICENSEE of any of its essential obligations under such
          SUB-LICENSE AGREEMENT which also constitutes a breach of the MASTER
          LICENSEE's obligations hereunder that is not cured by such
          SUB-LICENSEE within thirty (30) days after receiving notice of such
          breach; and

     2.2.4 In each case where the MASTER LICENSEE desires to enter into a
          SUB-LICENSE AGREEMENT with any SUB-LICENSEE, the MASTER LICENSEE shall
          enter with the LICENSOR, owner of the LICENSED TRADEMARKS, and with
          such SUB-LICENSEE into a written SUPPLEMENTAL AGREEMENT which shall
          define, for each country covered by such sub-license, those LICENSED
          TRADEMARKS licensed to SUB-LICENSEES, and include all appropriate
          terms and conditions concerning the protection of the LICENSED
          TRADEMARKS, and, if agreed upon by and between the LICENSOR and the
          MASTER LICENSEE, the sales minima as well as all appropriate terms and
          conditions concerning the payment of the royalties due by the MASTER
          LICENSEE to the LICENSOR. Subject to the provisions of Article 2.2.3
          hereinabove, the MASTER LICENSEE

<PAGE>

                                      -17-

          agrees that any breach by a SUB-LICENSEE of any of its essential
          obligations under a SUPPLEMENTAL AGREEMENT shall not be the
          responsibility of or considered as a breach by the MASTER LICENSEE of
          any of its essential obligations under this MASTER AGREEMENT, except
          that the MASTER LICENSEE hereby undertakes to remain responsible to
          the LICENSOR for the payment in full and without delay of all amounts
          due to the LICENSOR by the MASTER LICENSEE's SUB-LICENSEES under the
          terms of Articles 16 and 17 hereinafter.

2.3  The MASTER LICENSEE may sub-license the right to distribute the LACOSTE
     WATCHES granted to it pursuant to Article 2.1 hereinabove to DISTRIBUTORS
     designated by it under the following conditions :

     2.3.1 The DISTRIBUTORS selected by the MASTER LICENSEE shall have to comply
          with the following criteria :

          a)   a proposed DISTRIBUTOR shall have to prove to MASTER LICENSEE
               and, if requested by LICENSOR, to LICENSOR an adequate and
               appropriate technical, commercial ability; and

          b)   a proposed DISTRIBUTOR shall have to demonstrate to MASTER
               LICENSEE and, if requested by LICENSOR, to LICENSOR, a healthy
               financial situation in proportion with its forecasted activities
               with respect to the LACOSTE WATCHES; and

          c)   a proposed DISTRIBUTOR shall have to clearly establish the
               identity of its financing sources, which must be in line with the
               LACOSTE TRADEMARKS IMAGE; and

          d)   a proposed DISTRIBUTOR or any of its shareholders holding in
               excess of ten percent of the voting power in such proposed
               DISTRIBUTOR, senior managers or executives shall not be in any
               way involved in the creation, development, manufacture,
               distribution, marketing, merchandising, advertising, promotion
               and sale of products in competition with the LACOSTE APPAREL
               PRODUCTS or the OTHER LACOSTE PRODUCTS. Whenever

<PAGE>

                                      -18-

               possible, the DISTRIBUTOR shall put in place an independent
               structure exclusively dedicated to the LACOSTE WATCHES; and

          e)   a proposed DISTRIBUTOR, any of its shareholders holding in excess
               of ten percent of the voting power in such proposed DISTRIBUTOR
               or senior managers or executives are not or never have been
               involved in any way in acts of counterfeiting, imitation or
               unfair competition nor convicted of any other type of criminal
               activity (excluding misdemeanors).

     2.3.2 The MASTER LICENSEE shall submit to the LICENSOR a detailed file
          concerning each of the proposed DISTRIBUTORS including inter alia the
          necessary information allowing the LICENSOR to check the DISTRIBUTOR's
          conformity with the criteria defined in Article 2.3.1 hereinabove. The
          LICENSOR shall have a thirty day (30) period to agree to or refuse in
          writing the proposed DISTRIBUTOR on the grounds of the criteria
          defined in Article 2.3.1 hereinabove. The LICENSOR shall not
          unreasonably withhold its approval, and shall be deemed to have given
          its approval if it has not notified MASTER LICENSEE of any objection
          within thirty (30) days of receipt of the MASTER LICENSEE's proposals.

     2.3.3 The MASTER LICENSEE shall enter with its DISTRIBUTORS into written
          DISTRIBUTION AGREEMENTS which shall conform in all material respects
          to a general model previously approved in writing by the LICENSOR, and
          shall include the main provisions relating to the LICENSOR's
          intellectual property rights and to the LACOSTE TRADEMARKS IMAGE and,
          in addition to the rights and obligations which the MASTER LICENSEE
          wishes to sub-license, all obligations that the MASTER LICENSEE would
          otherwise have had to fulfill with respect to the rights sub-licensed
          to the DISTRIBUTOR and that the DISTRIBUTOR shall have to undertake to
          carry out (inter alia the obligation imposed on under Articles 3, 6 to
          8, 12 and 14 hereinafter). The MASTER LICENSEE shall deliver to the
          LICENSOR a copy of each DISTRIBUTION AGREEMENT as soon as practicable
          after it has been signed. The MASTER LICENSEE

<PAGE>

                                      -19-

          agrees that LICENSOR may request from MASTER LICENSEE that it takes
          action against a DISTRIBUTOR (including claims for damages in favour
          of LICENSOR, injunctions and any other appropriate remedies) and/or
          terminates forthwith a DISTRIBUTION AGREEMENT in case of breach by
          such DISTRIBUTOR of any of its essential obligations under such
          DISTRIBUTION AGREEMENT which also constitutes a breach of the MASTER
          LICENSEE's obligations hereunder that is not cured by such DISTRIBUTOR
          within thirty (30) days after receiving notice of such breach. In all
          circumstances, the MASTER LICENSEE hereby undertakes to remain
          responsible to the LICENSOR for the payment in full and without delay
          of all amounts due to the LICENSOR by the MASTER LICENSEE's
          DISTRIBUTORS under the terms of Articles 16 and 17 hereinafter.

     2.3.4 In each case where the MASTER LICENSEE desires to enter into a
          DISTRIBUTION AGREEMENT with a DISTRIBUTOR, the MASTER LICENSEE shall
          enter with the LICENSOR, owner of the LICENSED TRADEMARKS, and with
          such DISTRIBUTOR into a written SUPPLEMENTAL AGREEMENT which shall
          define, for each country covered by such DISTRIBUTION AGREEMENT, those
          LICENSED TRADEMARKS licensed to DISTRIBUTORS, and include all
          appropriate terms and conditions concerning the protection of the
          LICENSED TRADEMARKS, which SUPPLEMENTAL AGREEMENT shall be in the form
          attached hereto as Schedule X. Subject to the provisions of Article
          2.3.3 hereinabove, the LICENSOR agrees that any breach by a
          DISTRIBUTOR of any of its essential obligations under a SUPPLEMENTAL
          AGREEMENT shall not be the responsibility of or considered as a breach
          by the MASTER LICENSEE of its essential obligations under this MASTER
          AGREEMENT.

2.4  No rights or licenses are granted by the LICENSOR to the MASTER LICENSEE,
     expressly or by implication, except as herein provided.

     2.4.1 The LICENSOR does not give the MASTER LICENSEE any guarantee
          whatsoever with respect to the extent of the rights it holds or will
          acquire or lose during the entire term of this MASTER

<PAGE>

                                      -20-

          AGREEMENT concerning the LICENSED TRADEMARKS, the MODELS, the STYLING
          KNOW-HOW, the MARKETING AND MERCHANDISING KNOW-HOW and the PROMOTION
          AND ADVERTISING KNOW-HOW.

     2.4.2 Notwithstanding the above, the LICENSOR undertakes to, at its
          exclusive expense, (i) take all necessary steps during the entire term
          of this MASTER AGREEMENT for the registration and renewal of the
          LICENSED TRADEMARKS, (ii) set up and/or maintain the adequate
          structures for the watch and defense of the LICENSED TRADEMARKS.

     2.4.3 The LICENSOR undertakes to vigorously defend the LICENSED TRADEMARKS
          and to take all appropriate and necessary anti-counterfeiting actions,
          subject to the provisions of Article 14.3.5 hereinafter. The LICENSOR
          shall in this regard only be held to an obligation of means, and not
          to an obligation of results.

ARTICLE 3 - GENERAL BUSINESS POLICIES

3.1  The MASTER LICENSEE shall use its best efforts to develop its activities as
     manufacturer and distributor of the LACOSTE WATCHES and shall use the
     MODELS, the STYLING KNOW-HOW, the MARKETING AND MERCHANDISING KNOW-HOW and
     the PROMOTION AND ADVERTISING KNOW-HOW in conjunction with its WATCHES
     KNOW-HOW in order to promote the image, sales and distribution of the
     LACOSTE WATCHES in the TERRITORY, in conformity with such policies as are
     prescribed and coordinated world-wide by the LICENSOR for the LACOSTE
     TRADEMARKS IMAGE.

3.2  The MASTER LICENSEE shall cooperate closely in each market with the
     LICENSOR and with LICENSOR's other licensees and/or distributors for
     LACOSTE APPAREL PRODUCTS and OTHER LACOSTE PRODUCTS so as to give
     world-wide and in each market an identical and homogeneous image of the
     LACOSTE TRADEMARKS and of all the families of products bearing the LACOSTE
     TRADEMARKS and shall see to it to keep the LICENSOR informed of its direct
     contacts with said LICENSOR's other licensees and/or distributors.

3.3  The MASTER LICENSEE shall take all necessary steps to ensure that the
     LACOSTE WATCHES manufactured and
<PAGE>

                                      -21-

     distributed by it or by its SUB-LICENSEES or DISTRIBUTORS pursuant to this
     MASTER AGREEMENT are of high quality, and suitable for a clientele that
     demands the highest standard of merchandise.

3.4  The MASTER LICENSEE shall take all measures necessary so that the LACOSTE
     WATCHES are sold exclusively through the LACOSTE WATCHES SELECTIVE
     DISTRIBUTION SYSTEM and through the "LACOSTE BOUTIQUES AND LACOSTE CORNERS"
     SELECTIVE DISTRIBUTION SYSTEM.

3.5  The LICENSOR undertakes to obtain from and to have respected by its
     licensees for the LACOSTE APPAREL PRODUCTS and the OTHER LACOSTE PRODUCTS
     the same commitments.

ARTICLE 4 - CREATION, STYLING AND TECHNICAL CO-OPERATION

The MASTER LICENSEE shall bear the sole responsibility for the creation and the
development of the LACOSTE WATCHES and shall assume all the corresponding costs
and expenses. However, in the scope of the contribution by the LICENSOR of its
STYLING KNOW-HOW and by the MASTER LICENSEE of its WATCHES KNOW-HOW, the MASTER
LICENSEE and the LICENSOR shall co-operate closely in the creation and the
development of the LACOSTE WATCHES in order, more particularly, to strengthen
the LACOSTE TRADEMARKS IMAGE.

The MASTER LICENSEE undertakes to study and implement with diligence any
evolution of the collections proposed by the LICENSOR and intended to better
adapt the LACOSTE WATCHES to the evolution of the markets and to consumers'
expectations; provided that similar evolutions, to the extent applicable, are
required of LICENSOR's other licensees.

4.1  Obligations of the LICENSOR

     The LICENSOR shall provide the MASTER LICENSEE with those components of the
     STYLING KNOW-HOW that the LICENSOR, in its best opinion, shall consider to
     be beneficial to the MASTER LICENSEE in the fulfillment of the purpose of
     this MASTER AGREEMENT, and shall assist the MASTER LICENSEE in the use
     thereof.

<PAGE>

                                      -22-

4.2  Approval of product designs

     4.2.1 The MASTER LICENSEE shall submit design proposals for LACOSTE WATCHES
          to the LICENSOR in the following manner:

          MASTER LICENSEE shall submit to the LICENSOR design drawings for
          approval. After approval according to this Article 4.2, MASTER
          LICENSEE shall submit to the LICENSOR a pre-production prototype for
          approval together with the suggested retail price of the MODEL. The
          MASTER LICENSEE warrants that final production will conform to
          approved pre-production prototypes.

          Each collection of LACOSTE WATCHES shall consist of a sufficient
          selection of MODELS so as to constitute a well balanced line of
          watches. The LICENSOR shall, with respect to each submission made by
          the MASTER LICENSEE for approval, notify the MASTER LICENSEE in
          writing without undue delay, and in any event within ten (10) business
          days, as to whether the LICENSOR approves the submission. Unless the
          LICENSOR notifies Master Licensee within the specified time period
          that it disapproves any submission, such submission shall be deemed
          approved.

     4.2.2 In the event the LICENSOR disapproves any submission, the LICENSOR
          shall furnish the MASTER LICENSEE with the reasons for rejection and
          provide the MASTER LICENSEE with suggestions for modifying the
          rejected submission. MASTER LICENSEE shall, as promptly as
          practicable, correct the rejected submission, resubmit the relevant
          material to LICENSOR and seek LICENSOR's approval under the same terms
          and conditions as set forth above.

4.3  Obligations of the MASTER LICENSEE

     4.3.1 The MASTER LICENSEE shall inform the LICENSOR of the head of product
          development who shall have primary responsibility for the creation of
          the LACOSTE WATCHES whom the MASTER LICENSEE plans to use. The
          LICENSOR shall have thirty (30) days to notify MASTER LICENSEE that it
          objects to such individual, but may only do so for serious

<PAGE>
\
                                      -23-

          reasons necessary for the protection of the LACOSTE TRADEMARKS IMAGE.

     4.3.2 In order to enforce the cooperation between the LICENSOR and the
          MASTER LICENSEE and/or its SUB-LICENSEES for the creation, the
          development and the manufacture of the LACOSTE WATCHES and to allow
          the LICENSOR to give the approval provided for in Article 4.2
          hereinabove as quickly as possible, coordination meetings shall be
          organized between the LICENSOR, the MASTER LICENSEE and/or its
          SUB-LICENSEES for each collection at the following stages :

          a)   definition of the product range after analysis of the sales
               results and of the needs of the different markets; and

          b)   definition of the models contemplated for the different lines of
               the LACOSTE WATCHES; and

          c)   study of the prototypes of the models for the different lines of
               the LACOSTE WATCHES as well as of their packaging, displays and
               point-of-sale equipment, the development and manufacture of which
               shall be at MASTER LICENSEE's exclusive expense.

     4.3.3 The MASTER LICENSEE shall not manufacture, distribute, advertise,
          promote or offer for sale any model of the LACOSTE WATCHES, nor any
          display or point-of-sale equipment which has not been presented to the
          LICENSOR and approved in writing by the LICENSOR under the same
          conditions as those provided in Article 4.2 hereinabove.

4.4  Ownership of the MODELS

     4.4.1 The MODELS shall be and remain in all circumstances during the entire
          term of this MASTER AGREEMENT the sole property of the LICENSOR.

     4.4.2 The MASTER LICENSEE undertakes to use the MODELS exclusively within
          the scope of this MASTER AGREEMENT.

<PAGE>

                                      -24-

     4.4.3 The MASTER LICENSEE undertakes to use its best efforts to ensure that
          the MODELS do not infringe any intellectual property rights of any
          third party in the fields of authors' rights, copyrights, models,
          designs and/or patents.

     4.4.4 The LICENSOR undertakes to take all necessary steps during the entire
          term of this MASTER AGREEMENT to register in the sole name of the
          LICENSOR any MODELS which shall be reasonably necessary, as may be
          determined solely by the LICENSOR, taking into account the commercial
          potential of such MODELS, to protect such MODELS, as well as to all
          renewals of such MODELS at their due dates.

     4.4.5 The LICENSOR shall pay all expenses incurred in connection with the
          registration and/or the renewal of the MODELS.

ARTICLE 5 - MANUFACTURE, QUALITY

5.1  Obligations of MASTER LICENSEE

     5.1.1 The MASTER LICENSEE undertakes to use its WATCHES KNOW-HOW and to
          make all reasonable investments necessary in order to organize an
          international manufacture and supply network with the capacity of
          meeting the needs for the LACOSTE WATCHES in the TERRITORY, and to
          develop the sales of such in a timely fashion.

     5.1.2 The MASTER LICENSEE undertakes that the LACOSTE WATCHES as well as
          their packaging shall always be manufactured with reliable materials,
          carefully constructed, and clean in detail, and undertakes to take all
          necessary dispositions to that effect.

     5.1.3 The MASTER LICENSEE shall adhere to the highest standards of quality
          and design, (including, without limitation, materials, design and
          workmanship) which standards shall be at least equal to the General
          acceptance requirements attached hereto as Schedule XI and including
          quality-control measures designed to prevent the production of
          defective goods.

<PAGE>

                                      -25-

          In all cases, the MASTER LICENSEE shall be solely responsible toward
          the LICENSOR for the quality of the LACOSTE WATCHES produced by the
          MASTER LICENSEE (or under the control of the MASTER LICENSEE) by the
          SUB-LICENSEES or by the SUB-CONTRACTORS of the MASTER LICENSEE.

          On the other hand, the MASTER LICENSEE shall bear no responsibility
          whatsoever for the quality of the LACOSTE WATCHES produced by VIMONT
          under the terms of the PRIOR AGREEMENT.

     5.1.4 Whenever practicable, the MASTER LICENSEE shall cause either (a) each
          LACOSTE WATCH manufactured under this MASTER AGREEMENT or (b) each
          package unit of LACOSTE WATCHES distributed under this MASTER
          AGREEMENT, as determined by MASTER LICENSEE in its sole discretion, to
          be serialized thereby allowing tracking by MASTER LICENSEE if
          necessary, as such necessity is mutually agreed upon by LICENSOR and
          MASTER LICENSEE.

     5.1.5 The MASTER LICENSEE undertakes to cause its SUB-LICENSEES to make
          such investments as are required to create and/or maintain the
          organization for the manufacture of the LACOSTE WATCHES in a manner
          that allows such SUB-LICENSEES to fulfill the undertakings of Articles
          5.1.1 to 5.1.4 hereinabove.

5.2  SUB-CONTRACTORS

     5.2.1 The MASTER LICENSEE (and its SUB-LICENSEES) shall have the right to
          have LACOSTE WATCHES entirely manufactured by SUB-CONTRACTORS
          designated by it, provided however the MASTER LICENSEE i) has
          previously informed the LICENSOR of their name and precise location
          ii) has entered with its SUB-CONTRACTORS into written SUB-CONTRACTING
          AGREEMENTS which shall conform in all material respects to a general
          model previously approved in writing by the LICENSOR, and shall
          include, in addition to the rights and obligations which the MASTER
          LICENSEE wishes to grant, all obligations the MASTER LICENSEE would
          otherwise have had to fulfill with respect to the rights granted to
          the SUB-CONTRACTOR as well as the undertaking by the

<PAGE>

                                      -26-

          SUB-CONTRACTORS not to manufacture for third parties any watches
          substantially identical to the LACOSTE WATCHES manufactured by the
          SUB-CONTRACTOR.

          The SUB-CONTRACTORS shall have to undertake to sell the LACOSTE
          WATCHES they have manufactured exclusively to the MASTER LICENSEE, its
          SUB-LICENSEES or its DISTRIBUTORS, and the MASTER LICENSEE, its
          SUB-LICENSEES and its DISTRIBUTORS undertake irrevocably before the
          LICENSOR to buy from the SUB-CONTRACTORS all the LACOSTE WATCHES
          manufactured by the SUB-CONTRACTORS, and to have destroyed at their
          expense any and all defective LACOSTE WATCHES manufactured by the
          SUB-CONTRACTORS.

     5.2.2 The MASTER LICENSEE shall deliver to the LICENSOR a copy of each
          SUB-CONTRACTING AGREEMENT as soon as practicable after it has been
          signed. The MASTER LICENSEE agrees that LICENSOR may request from
          MASTER LICENSEE that it takes action against a SUB-CONTRACTOR
          (including claims for damages in favour of LICENSOR, injunctions and
          any other appropriate remedies) and/or terminates forthwith a
          SUB-CONTRACTING AGREEMENT in case of breach by such SUB-CONTRACTOR of
          any of its essential obligations under such SUB-CONTRACTING AGREEMENT
          which also constitutes a breach of the MASTER LICENSEE's obligations
          hereunder that is not cured by such SUB-CONTRACTOR within thirty (30)
          days after receiving notice of such breach.

5.3  SUPPLIERS

     5.3.1 The MASTER LICENSEE, its SUB-LICENSEES and the SUB-CONTRACTORS shall
          have the right to have certain components, packaging, advertising and
          promotional items, furniture and/or any element of any kind bearing or
          representing the LICENSED TRADEMARKS to be used for or in connection
          with the LACOSTE WATCHES manufactured by SUPPLIERS designated by it,
          provided however the MASTER LICENSEE, its SUB-LICENSEES and/or the
          SUB-CONTRACTORS have entered with their SUPPLIERS into written SUPPLY
          AGREEMENTS which shall conform in all material respects to a general
          model previously approved in writing by the

<PAGE>

                                      -27-

          LICENSOR, and shall include, in addition to the rights and obligations
          which the MASTER LICENSEE or the SUB-LICENSEES and/or the
          SUB-CONTRACTORS wish to grant, all obligations the MASTER LICENSEE or
          the SUB-LICENSEES and/or the SUB-CONTRACTORS would otherwise have had
          to fulfill with respect to the rights granted to the SUPPLIERS.

     5.3.2 The MASTER LICENSEE shall deliver to the LICENSOR a copy of each
          SUPPLY AGREEMENT as soon as practicable after it has been signed. The
          MASTER LICENSEE agrees that LICENSOR may request from MASTER LICENSEE
          that it takes action or that it causes the appropriate SUB-CONTRACTOR
          to take action against a SUPPLIER (including claims for damages in
          favour of LICENSOR, injunctions and any other appropriate remedies)
          and/or terminates forthwith a SUPPLY AGREEMENT in case of breach by
          such SUPPLIER of any of its essential obligations under such SUPPLY
          AGREEMENT which also constitutes a breach of the MASTER LICENSEE's
          obligations hereunder that is not cured by such SUPPLIER within thirty
          (30) days after receiving notice of such breach.

5.4  Visits and control

     5.4.1 The MASTER LICENSEE, upon request of the LICENSOR, shall authorize or
          have the LICENSOR authorized to visit, in the presence of
          representatives designated by the MASTER LICENSEE, any premises in
          which the LACOSTE WATCHES or parts thereof or any items bearing or
          representing the LICENSED TRADEMARKS are manufactured by the MASTER
          LICENSEE, or by any one of its SUB-LICENSEES and/or SUB-CONTRACTORS
          and/or SUPPLIERS.

     5.4.2 The MASTER LICENSEE undertakes to authorize or have the LICENSOR
          authorized to make or have made any necessary and/or appropriate
          control at any stage of the manufacture of the LACOSTE WATCHES or part
          thereof or of any item bearing or representing the LICENSED TRADEMARKS
          by the MASTER LICENSEE, or by any of its SUB-LICENSEES and/or
          SUB-CONTRACTORS and/or SUPPLIERS in order to ascertain that the
          quality of the LACOSTE

<PAGE>

                                      -28-

          WATCHES and of their components and of the items bearing or
          representing the LICENSED TRADEMARKS conforms to the provisions of
          this MASTER AGREEMENT and inter alia with the provisions of Articles
          3.3 and 5.1.2 hereinabove.

5.5  Ethical Charter

     The MASTER LICENSEE undertakes (a) to comply with and to ensure that its
     SUB-LICENSEES, DISTRIBUTORS, SUB-CONTRACTORS and SUPPLIERS comply at all
     times with the relevant provisions of any treaty, law or regulation in
     relation to the protection of human rights and in particular childhood,
     salaries, duration and condition of workmanship, and with the relevant
     provisions of any treaty, law or regulation in relation to the protection
     of the environment, (b) to take all necessary and appropriate measures to
     immediately bring an end to any violation of such provisions, and (c) to
     guarantee and indemnify the LICENSOR and its assignees and successors from
     any claims, known or unknown, liabilities, demands, damages, causes of
     action, costs, expenses, dues, covenants, suits, indemnities, judgments
     which any third party hereafter can, shall or may have in connection with
     or arising out of any alleged violation by MASTER LICENSEE, any
     SUB-LICENSEE, DISTRIBUTOR, SUB-CONTRACTOR or SUPPLIER of any such
     provision. The MASTER LICENSEE shall ensure that a similar provision to
     this Article 5.5 is included in each SUB-LICENSING AGREEMENT, DISTRIBUTION
     AGREEMENT, SUB-CONTRACTING AGREEMENT and SUPPLY AGREEMENT.

ARTICLE 6 - MARKETING AND MERCHANDISING

6.1  Obligations of the LICENSOR

     The LICENSOR shall assist the MASTER LICENSEE in the marketing,
     merchandising, the distribution and sale of the LACOSTE WATCHES in the
     TERRITORY by providing the MASTER LICENSEE with its MARKETING AND
     MERCHANDISING KNOW-HOW and through frequent visits and contacts among their
     respective personnel. To this effect, and in particular to maintain the
     homogeneity of the LACOSTE TRADEMARKS IMAGE, the LICENSOR shall :

     6.1.1 regularly advise the MASTER LICENSEE of its requirements within the
          field of marketing and

<PAGE>

                                      -29-

          merchandising, such as specifications concerning the presentation of
          the LACOSTE WATCHES in the shop-windows or inside shops, the
          point-of-sales advertising materials, etc., that the MASTER LICENSEE
          shall have to implement within the TERRITORY; and

     6.1.2 proceed, in cooperation with the MASTER LICENSEE, with all
          appropriate studies relating to the fitting, decoration and
          architecture of the points-of-sale and to the creation of the
          furniture and other elements to be used in connection with the sale of
          the LACOSTE WATCHES in the APPROVED WATCHES RETAILERS.

          The costs related to such studies shall be equally shared between the
          MASTER LICENSEE and the LICENSOR; and

     6.1.3 authorize the MASTER LICENSEE to have manufactured by SUPPLIERS,
          under the terms provided in Article 5.3 hereinabove, the furniture and
          related elements intended to be used in connection with the sale of
          the LACOSTE WATCHES. Said SUPPLIERS shall have to strictly conform to
          the blueprints and recommendations of the LICENSOR with respect to the
          shapes, designs, quality and specifications imposed on by the LICENSOR
          for said furniture and other elements; and

     6.1.4 give the MASTER LICENSEE complete access to any and all market
          surveys, statistics, reports and information it may have (which it is
          not obliged, vis-a-vis third parties, to hold in confidence) regarding
          the LACOSTE TRADEMARKS IMAGE and the market position of the LACOSTE
          WATCHES among competitors, retail customers and consumers; and

     6.1.5 at MASTER LICENSEE's request, assist the MASTER LICENSEE in the
          selection of any outside consultant as may be necessary and help the
          MASTER LICENSEE with the interpretation of the reports prepared by
          such consultants; and

<PAGE>

                                      -30-

6.2  Obligations of the MASTER LICENSEE

     The MASTER LICENSEE shall take all necessary measures to promote the
     distribution and sale of the LACOSTE WATCHES within the TERRITORY by
     conforming to such policies as are prescribed and coordinated world-wide by
     the LICENSOR for the LACOSTE TRADEMARKS and by using the MARKETING AND
     MERCHANDISING KNOW-HOW provided by the LICENSOR together with its own
     resources. To this effect, in each of the MAIN COUNTRIES of the TERRITORY,
     the MASTER LICENSEE shall (or shall procure that its SUB-LICENSEES or its
     DISTRIBUTORS shall) :

     6.2.1 make such investments as are reasonably necessary to create and/or to
          maintain the organization necessary for the distribution, marketing,
          merchandising, promotion and advertising of the LACOSTE WATCHES in a
          manner that may be reasonably deemed satisfactory by the parties
          hereto. Such organization shall either be dedicated exclusively to the
          LACOSTE WATCHES, or, wherever an exclusive organization cannot be set
          up or appointed, the MASTER LICENSEE shall see to it that the
          distribution, marketing and merchandising, promotion and advertising
          of the LACOSTE WATCHES be done so as to avoid any risk of confusion by
          the retail trade or the consumers with other brands offered by the
          MASTER LICENSEE, its SUB-LICENSEES or its DISTRIBUTORS; and

     6.2.2 designate one of its senior managers as the principal correspondent
          with the MASTER LICENSEE on all business matters pertaining to this
          MASTER AGREEMENT; and

     6.2.3 participate in the Watches Committees which the LICENSOR will
          organize from time to time to allow a regular and organized review of
          the activities of the MASTER LICENSEE pertaining to the LACOSTE
          WATCHES; and

     6.2.4 consult with the LICENSOR at least three (3) months before the
          beginning of the sale of each season's collection with respect to the
          MASTER LICENSEE's marketing and merchandising policy at the occasion
          of the Watches Committees, and at the occasion of the coordination
          meetings organized by the LICENSOR between the LICENSOR

<PAGE>

                                      -31-

          and the different licensees of the LICENSOR. This consultation shall
          be done with the purpose of reaching an agreement on the objectives
          and the means to use in order to achieve the best possible sales
          results within the TERRITORY as well as the best possible coordination
          with the marketing and merchandising policy of the LACOSTE APPAREL
          PRODUCTS and OTHER LACOSTE PRODUCTS; and

     6.2.5 provide the LICENSOR :

          -    three months after the start of the sales of each collection of
               LACOSTE WATCHES (a collection report. Such report shall include
               the comments on the quality and the styling for each category (as
               defined in Schedule V) of the LACOSTE WATCHES for each of the
               first five (5) markets by turnover in the world and for each of
               the countries in which a SUB-LICENSEE has received a sub-license
               from the MASTER LICENSEE. Such report shall also include any
               requests for future collections, and

          -    at the end of each season, the sales of each of the collections
               of the LACOSTE WATCHES by style and by color; and

     6.2.6 provide the LICENSOR on a regular basis at the time of the Watches
          Committees organized by the LICENSOR to examine the commercial
          situation of the LACOSTE WATCHES an estimate of the sales (i) in units
          of the collection presently being delivered as well as of the
          immediately following collection itemized, for each of the lines of
          LACOSTE WATCHES, by category of LACOSTE WATCHES (as defined in
          Schedule V), and (ii) by country, with a comparison with the sales of
          the comparable collections during the two (2) prior years; and

     6.2.7 provide the LICENSOR once a year, at the beginning of the month of
          October, with its estimated NET SALES and SALES TO DISTRIBUTORS by
          country in units and in turnover for the following three (3) calendar
          years itemized, for each of the lines of LACOSTE WATCHES, by category
          of LACOSTE WATCHES (as defined in Schedule V); and shall update these
          estimates for the first year of this three year period, a first time
          six (6) months later (in April), and a second time twelve (12) months
          later (in October); and

<PAGE>

                                      -32-

     6.2.8 provide the LICENSOR twice a year in January and July with a list of
          all the points of sale of the LACOSTE WATCHES and deliver
          simultaneously to the LICENSOR a report giving the quantities, the NET
          SALES and the SALES TO DISTRIBUTORS of the LACOSTE WATCHES sold during
          the preceding six-month period in each country of the TERRITORY
          itemized, for each of the lines of LACOSTE WATCHES, by category of
          LACOSTE WATCHES (as defined in Schedule V) and by type of
          points-of-sale (as defined in Schedule IX); and

     6.2.9 in a general manner :

          a)   invite the LICENSOR's personnel to attend (at LICENSOR's expense)
               all commercial meetings and to participate in all commercial
               trips concerning LACOSTE WATCHES that the LICENSOR may wish in
               order to enable the LICENSOR to fulfill its role in particular
               with respect to the co-ordination of the marketing,
               merchandising, advertising and promotion of the LACOSTE
               TRADEMARKS IMAGE; and

          b)   give the LICENSOR complete access to any and all market surveys,
               reports and information it may have (which it is not obliged to
               third parties to hold in confidence) regarding the market
               position of the LACOSTE WATCHES among competitors, retail
               customers and consumers in the TERRITORY; and

          c)   use reasonable efforts to reply to any request from the LICENSOR
               concerning additional details or statistics regarding LACOSTE
               WATCHES based on sales; and

          d)   in the interests of both parties, enable LICENSOR's personnel (at
               LICENSOR's expense) to carry out their role of assistance to and
               consultation with the MASTER LICENSEE and supply them with such
               help and information as may be reasonably available for the
               accomplishment of their role and, in particular, provide all
               available information and surveys reasonably necessary for the
               analysis of the retail outlets sales activity

<PAGE>

                                      -33-

               so as to permit the LICENSOR to better define the conditions and
               the trends of the market; and

          e)   shall ensure that the APPROVED WATCHES RETAILERS implement and
               conform to the marketing and merchandising policy defined in
               Article 6.2.4 hereinabove; and

          f)   shall ensure that the APPROVED WATCHES RETAILERS conform to the
               specifications concerning the fittings, the decoration and
               architecture of the points-of-sale and use the furniture and
               other elements developed jointly by the LICENSOR and the MASTER
               LICENSEE according to the provisions of Article 6.1.2 hereinabove
               to be used in connection with the sale of the LACOSTE WATCHES;
               and

          g)   in the best interest of the LACOSTE TRADEMARKS IMAGE shall use
               its best efforts so that the members of the "LACOSTE BOUTIQUES
               AND LACOSTE CORNERS" SELECTIVE DISTRIBUTION SYSTEM (and in
               particular the "global stores") which meet the criteria set out
               in Article 7.1.1 hereinafter be supplied whenever possible with
               the LACOSTE WATCHES.

ARTICLE 7 - DISTRIBUTION AND SALES

The MASTER LICENSEE shall carry out the distribution of the LACOSTE WATCHES in
the TERRITORY exclusively through :

a)   the members of the LACOSTE WATCHES SELECTIVE DISTRIBUTION SYSTEM, through
     APPROVED WATCHES RETAILERS previously selected in each country of the
     TERRITORY and to which, whenever possible, it shall be contractually
     linked; and

b)   the members of the "LACOSTE BOUTIQUES AND LACOSTE CORNERS" SELECTIVE
     DISTRIBUTION SYSTEM, subject to the terms and conditions set forth in
     Article 7.2 hereinafter.

7.1  APPROVED WATCHES RETAILERS

     So as to provide the consumer with the best service, to ensure the
     homogeneity of the high quality of the

<PAGE>

                                      -34-

     distribution of the LACOSTE WATCHES throughout the world and to guarantee
     their authenticity, the MASTER LICENSEE shall select, and require its
     SUB-LICENSEES and DISTRIBUTORS to select APPROVED WATCHES RETAILERS on the
     basis of the following objective criteria as regards both quality and
     techniques, and shall use reasonable commercial efforts to establish with
     them, and require its SUB-LICENSEES and DISTRIBUTORS to establish with
     them, whenever possible, a contractual relationship including the terms and
     conditions set forth in the form of Lacoste Watches Approved Retailer
     Contract annexed hereto as Schedule XII.

     7.1.1 Conditions of Approval

          The MASTER LICENSEE shall select, and shall cause its SUB-LICENSEES
          and DISTRIBUTORS to select, as APPROVED WATCHES RETAILERS exclusively
          those which meet the standards of performance as set forth in the
          Lacoste Watches General Conditions of Distribution annexed hereto as
          Schedule XIII for the following criteria :

          a)   the location and environment of the point-of-sale (type and
               category of the building, location in the town in question, type
               of shops in the neighborhood, sales area of the shop, quality of
               the frontage, length of the shop window); and

          b)   its fittings (quality of the shop sign, window-dressing, quality
               of the furnishings and lighting); and

          c)   the type, brand and nature of the products sold in the outlet;
               and

          d)   the qualification of the personnel; and

          e)   the financial capabilities and solvency guarantees.

     7.1.2 Approval of the APPROVED WATCHES RETAILERS

          The LICENSOR reserves the right to verify that every point of sale
          selected by the MASTER LICENSEE as an APPROVED WATCHES RETAILER
          conforms to the objective criteria set forth in

<PAGE>

                                      -35-

          Article 7.1.1 hereinabove (except for the points of sales listed in
          Schedule XIV, which, as LICENSOR and MASTER LICENSEE have agreed,
          conform to the objective criteria set forth in Article 7.1.1
          hereinabove). Except for such points of sale, the MASTER LICENSEE
          shall submit or cause to be submitted to the LICENSOR a copy of the
          completed application for every potential point of sale for approval.
          The LICENSOR shall have ten (10) business days to approve in writing a
          potential point of sale based upon the objective criteria set forth
          under Article 7.1.1 hereinabove and the LICENSOR shall not
          unreasonably withhold, delay or condition its approval, and shall be
          deemed to have given its approval if LICENSOR does not notify MASTER
          LICENSEE that it disapproves of such proposed point of sale with ten
          (10) business days of receipt of the completed application.

     7.1.3 Duties of the APPROVED WATCHES RETAILERS

          In addition to the obligations usually undertaken by retailers, the
          MASTER LICENSEE shall ensure that the agreements between itself and
          the APPROVED WATCHES RETAILERS expressly provide that the APPROVED
          WATCHES RETAILERS agree that :

          a)   the standing of the point-of-sale and its environment remain at
               all times compatible with the LACOSTE TRADEMARKS IMAGE, as
               established and coordinated by the LICENSOR; and

          b)   the sales area in the store is always sufficient to permit the
               presentation of the LACOSTE WATCHES in a sufficient shopping
               space without disproportion with the other brands offered for
               sale and allowing to distinguish them; and

          c)   each point-of-sale always contains an adequate range of the
               LACOSTE WATCHES; and

          d)   the sales personnel of each point-of-sale is always well
               qualified and trained in presenting and selling the LACOSTE
               WATCHES; and

<PAGE>

                                      -36-

          e)   unless prohibited by applicable law, e.g., in the United States
               of America, no generalized discount sales policy is applied; and

          f)   no misleading advertising is made; and

          g)   the counters, posters, demonstration and other advertising
               material are displayed in a prominent position in each store and
               set up with the MASTER LICENSEE's approval; and

          h)   a notice stating "Approved Watches Lacoste Retailer" is displayed
               in a prominent position in the window or near the LACOSTE WATCHES
               display area.

     7.1.4 The MASTER LICENSEE shall ensure that all elements bearing or
          representing the LICENSED TRADEMARKS (such as awnings, pennants, etc.)
          used by the APPROVED WATCHES RETAILERS on the facade, in the window or
          inside their shops are exclusively those supplied by the MASTER
          LICENSEE or, exceptionally those which have received the prior and
          express written approval of the MASTER LICENSEE.

          In this respect, a specific provision shall be included in the written
          confirmations issued to the APPROVED WATCHES RETAILERS.

          The MASTER LICENSEE shall inform the LICENSOR of any new kind of
          material that the APPROVED WATCHES RETAILERS would like to use.

     7.1.5 The MASTER LICENSEE shall offer an appropriate warranty on the
          LACOSTE WATCHES of at least one (1) year starting from the date of
          purchase of such LACOSTE WATCHES, and shall put in place and organize
          an after-sale service of the level appropriate with the LACOSTE
          TRADEMARKS IMAGE.

7.2  Special provisions applicable to the members of the "LACOSTE BOUTIQUES AND
     LACOSTE CORNERS" SELECTIVE DISTRIBUTION SYSTEM

     Nothing contained in this MASTER AGREEMENT, and in particular this Article
     7.2 and Articles 1.40 or 1.41,

<PAGE>

                                      -37-

     shall be construed as meaning that LACOSTE WATCHES shall be offered for
     sale in each and every LACOSTE BOUTIQUE and LACOSTE CORNER fulfilling the
     requirements of Article 7.2.1 hereinafter.

     7.2.1 PRESENTATION SURFACE of the LACOSTE WATCHES and/or of the OTHER
          LACOSTE PRODUCTS in the LACOSTE BOUTIQUES and LACOSTE CORNERS

     a)   So as to make sure that at the same time the LACOSTE BOUTIQUES and
          LACOSTE CORNERS remain principally devoted to the sale of LACOSTE
          APPAREL PRODUCTS and only on a subordinate basis of the LACOSTE
          WATCHES and/or of the OTHER LACOSTE PRODUCTS and to allow the
          development of the LACOSTE WATCHES together with the OTHER LACOSTE
          PRODUCTS, the LACOSTE BOUTIQUES with a COMMERCIAL SURFACE exceeding *
          and the LACOSTE CORNERS with a COMMERCIAL SURFACE exceeding * shall be
          authorized to sell the LACOSTE WATCHES and all the categories of the
          OTHER LACOSTE PRODUCTS that they wish to sell. DEVANLAY shall reserve
          for the LACOSTE WATCHES together with the OTHER LACOSTE PRODUCTS in
          each of these LACOSTE BOUTIQUES and in each of these LACOSTE CORNERS
          at least * of the PRESENTATION SURFACE of such LACOSTE BOUTIQUE or
          LACOSTE CORNER.

          For the LACOSTE BOUTIQUES with a COMMERCIAL SURFACE exceeding *, the
          PRESENTATION SURFACE reserved for the LACOSTE WATCHES together with
          the OTHER LACOSTE PRODUCTS shall be at least * of the PRESENTATION
          SURFACE of such LACOSTE BOUTIQUE.

          DEVANLAY or the relevant LACOSTE APPAREL PRODUCTS DISTRIBUTOR shall
          decide with the owner of each LACOSTE BOUTIQUE and of each LACOSTE
          CORNER, within the limits fixed above, the percentage of the
          PRESENTATION SURFACE reserved for the LACOSTE WATCHES and for the
          OTHER LACOSTE PRODUCTS.

          DEVANLAY, or the relevant LACOSTE APPAREL PRODUCTS DISTRIBUTOR, shall
          decide with the owner of each LACOSTE BOUTIQUE and of each LACOSTE
          CORNER the manner in which the space reserved for

*    CONFIDENTIAL PORTION OF THIS EXHIBIT OMITTED AND FILED SEPARATELY WITH THE
     SEC PURSUANT TO RULE 24b-2 OF THE 1934 ACT.

<PAGE>

                                      -38-

          the LACOSTE WATCHES and for the OTHER LACOSTE PRODUCTS shall be
          allocated.

          The owner of each LACOSTE BOUTIQUE and of each LACOSTE CORNER shall
          comply scrupulously and in all respects with the instructions of
          DEVANLAY, or of the relevant LACOSTE APPAREL PRODUCTS DISTRIBUTOR,
          concerning the merchandising of the LACOSTE WATCHES and of the OTHER
          LACOSTE PRODUCTS in the LACOSTE BOUTIQUES and in the LACOSTE CORNERS.

          Within this framework, the owners of the LACOSTE BOUTIQUES and of the
          LACOSTE CORNERS are free to decide if they want to present LACOSTE
          WATCHES in their points of sale and to choose the categories of OTHER
          LACOSTE PRODUCTS which they wish to present in their points of sale.

     b)   Provided that they have been authorized beforehand and in writing by
          DEVANLAY, the LACOSTE BOUTIQUES with a COMMERCIAL SURFACE smaller than
          or equal to * and the LACOSTE CORNERS with a COMMERCIAL SURFACE
          smaller than or equal to * may sell certain LACOSTE WATCHES and/or
          OTHER LACOSTE PRODUCTS in the same conditions as those provided for by
          the present AGREEMENT. Given the size of these points of sale, the
          parties agree that no reservation of a minimum PRESENTATION SURFACE
          shall apply to them.

     7.2.2 Selection of the collections of the LACOSTE WATCHES for the "LACOSTE
          BOUTIQUES AND LACOSTE CORNERS" SELECTIVE DISTRIBUTION SYSTEM

          The presence of the LACOSTE WATCHES together with the OTHER LACOSTE
          PRODUCTS alongside the LACOSTE APPAREL PRODUCTS in the LACOSTE
          BOUTIQUES and in the LACOSTE CORNERS is desirable in the interest of
          the LACOSTE TRADEMARKS IMAGE and of the development of the "lifestyle"
          image of the Lacoste brand. The purpose is to define for each LACOSTE
          BOUTIQUE and for each LACOSTE CORNER a well-balanced solution,
          preserving both the LACOSTE TRADEMARKS IMAGE and the interests of the
          LACOSTE APPAREL PRODUCTS, the OTHER LACOSTE PRODUCTS and the LACOSTE
          WATCHES.

*    CONFIDENTIAL PORTION OF THIS EXHIBIT OMITTED AND FILED SEPARATELY WITH THE
     SEC PURSUANT TO RULE 24b-2 OF THE 1934 ACT.

<PAGE>

                                      -39-

     a)   The collections of the LACOSTE WATCHES for the "LACOSTE BOUTIQUES AND
          LACOSTE CORNERS" SELECTIVE DISTRIBUTION SYSTEM shall be selected in
          each country among the worldwide collections approved by the LICENSOR,
          by mutual agreement between each of the distributors of the LACOSTE
          WATCHES and the LACOSTE APPAREL PRODUCTS DISTRIBUTOR in such country.

          The selection of the collections of the LACOSTE WATCHES means the
          determination, by territory, on the one hand, of the product ranges
          (choice of models among those existing) of the LACOSTE WATCHES
          collections, among which the owner of the point of sale shall be free
          to choose when placing his orders and, on the other hand, of the total
          number of references/color of LACOSTE WATCHES and of OTHER LACOSTE
          PRODUCTS which may be commercialized during a season in each category
          of point of sale according to its size and its lay-out. The
          determination of the product ranges shall be such as to offer the
          owners of the points of sale the opportunity to exercise their choice
          among collections having, for the LACOSTE WATCHES and for each
          category of OTHER LACOSTE PRODUCTS, a reasonable representativeness.

     b)   Subject to the terms of paragraph a) hereinabove, such selection shall
          be made taking into account :

          -    the availability of the collections of the LACOSTE WATCHES in
               such country, and

          -    the commercial interest that the LACOSTE WATCHES may offer to the
               LACOSTE BOUTIQUES and the LACOSTE CORNERS, and

          -    the purchasing behavior and habits of such country, and

          -    the periodicity appropriate to the LACOSTE WATCHES.

     c)   The collections of the LACOSTE WATCHES chosen for the "LACOSTE
          BOUTIQUES AND LACOSTE CORNERS" SELECTIVE DISTRIBUTION SYSTEM in each
          country shall be updated with the appropriate periodicity (season,
          year) following the rules specified in paragraphs a) and b)
          hereinabove.

<PAGE>

                                      -40-

     d)   In the event of a disagreement between a distributor of LACOSTE
          WATCHES and a LACOSTE APPAREL PRODUCTS DISTRIBUTOR about the selection
          of collections of LACOSTE WATCHES for the "LACOSTE BOUTIQUES AND
          LACOSTE CORNERS" SELECTIVE DISTRIBUTION SYSTEM in a given country, the
          LICENSOR and DEVANLAY shall make their best efforts to find together a
          well-balanced solution which preserves together the LACOSTE TRADEMARKS
          IMAGE, the development of the "lifestyle" image of the Lacoste brand
          and the interests of the LACOSTE APPAREL PRODUCTS and of the LACOSTE
          WATCHES. The final decision shall rest with DEVANLAY.

     e)   Once the ranges of the LACOSTE WATCHES and of the OTHER LACOSTE
          PRODUCTS and the total number of references/color of the LACOSTE
          WATCHES and/or of the OTHER LACOSTE PRODUCTS have been selected, the
          owners of the LACOSTE BOUTIQUES and of the LACOSTE CORNERS will be
          free to decide, within this framework, the quantities of LACOSTE
          WATCHES and/or of OTHER LACOSTE PRODUCTS to be ordered.

     7.2.3 Supply of the "LACOSTE BOUTIQUES AND LACOSTE CORNERS" SELECTIVE
          DISTRIBUTION SYSTEM by the distributors of the LACOSTE WATCHES

     a)   The distributors of the LACOSTE WATCHES shall present the collections
          selected by country directly to the LACOSTE BOUTIQUES and to the
          LACOSTE CORNERS, which shall place their orders and repeat orders
          directly with them according to their specificities (size, location,
          customers). In each territory, the distributors of the LACOSTE WATCHES
          shall transmit electronically to the LACOSTE APPAREL PRODUCTS
          DISTRIBUTOR concerned a copy of each order placed by the LACOSTE
          BOUTIQUES and the LACOSTE CORNERS located in such territory. These
          orders shall be sent to the LACOSTE APPAREL PRODUCTS DISTRIBUTOR upon
          receipt by the distributors of the LACOSTE WATCHES, and shall specify
          the anticipated delivery dates. Upon receipt of the copies of the
          orders and within 10 days at most, the LACOSTE APPAREL PRODUCTS
          DISTRIBUTORS may contact the concerned distributor(s) of the LACOSTE
          WATCHES if, after examining the orders, it appears that
<PAGE>

                                      -41-

          the selection of the collection for a specific point of sale does not
          comply with the terms of Article 7.2.2 hereinabove. In such an event,
          the LACOSTE APPAREL PRODUCTS DISTRIBUTOR shall have the right to
          request the distributor(s) of the LACOSTE WATCHES concerned not to
          accept these orders insofar as they do not conform with the pre-agreed
          terms relating to the selection of ranges of LACOSTE WATCHES set forth
          in Article 7.2.2 hereinabove. The distributors of the LACOSTE WATCHES
          undertake to act in accordance with the request of the LACOSTE APPAREL
          PRODUCTS DISTRIBUTOR. In the absence of reaction from the LACOSTE
          APPAREL PRODUCTS DISTRIBUTOR within 10 days following the receipt of
          the copies of the orders for the beginning of the season, such orders
          may be implemented as such. Notwithstanding the foregoing, repeat
          orders may be delivered by the distributor of the LACOSTE WATCHES as
          soon as they are received.

     b)   The LACOSTE BOUTIQUES and the LACOSTE CORNERS shall be supplied and
          invoiced directly by the distributors of the LACOSTE WATCHES.

     c)   The distributors of the LACOSTE WATCHES for each country shall send
          each semester to the LACOSTE APPAREL PRODUCTS DISTRIBUTOR a detailed
          recapitulative statement of the invoices of LACOSTE WATCHES sent to
          each LACOSTE BOUTIQUES and LACOSTE CORNER. Copies of these statements
          shall be sent simultaneously to the LICENSOR, to DEVANLAY and to the
          MASTER LICENSEE.

     d)   In the event of a violation by a LACOSTE BOUTIQUE or a LACOSTE CORNER
          of the limits of the PRESENTATION SURFACE established for the LACOSTE
          WATCHES together with the OTHER LACOSTE PRODUCTS in the point of sale
          or of the selection of the collections of the LACOSTE WATCHES and of
          the OTHER LACOSTE PRODUCTS intended to be commercialized in this point
          of sale, or of the maximum number of references/color of LACOSTE
          WATCHES and/or of OTHER LACOSTE PRODUCTS which may be commercialized
          in such LACOSTE BOUTIQUE or LACOSTE CORNER, or in the event that the
          purchasing turnover of LACOSTE APPAREL PRODUCTS during a semester is
          less than *

*    CONFIDENTIAL PORTION OF THIS EXHIBIT OMITTED AND FILED SEPARATELY WITH THE
     SEC PURSUANT TO RULE 24b-2 OF THE 1934 ACT.

<PAGE>

                                      -42-

*    of the total purchasing turnover of the relevant LACOSTE BOUTIQUE or
     LACOSTE CORNER during the same period, DEVANLAY, or the LACOSTE APPAREL
     PRODUCTS DISTRIBUTOR concerned, shall be entitled on a first instance to
     issue a warning to the relevant LACOSTE BOUTIQUE or LACOSTE CORNER and, if
     any of these occurrences should be repeated, to forbid such point of sale
     to commercialize LACOSTE WATCHES and OTHER LACOSTE PRODUCTS during at least
     one season.

          The LICENSOR and the MASTER LICENSEE shall be informed of such
          measures taken by DEVANLAY. The MASTER LICENSEE undertakes to comply
          with these measures by suspending all orders and deliveries to such
          point of sale.

     7.2.4 Selective Distribution Systems

     a)   The MASTER LICENSEE acknowledges that the LACOSTE BOUTIQUES and the
          LACOSTE CORNERS are points of sale with specific characteristics
          resulting inter alia from the fact that all the products sold in these
          premises bear the LACOSTE TRADEMARKS, as well as from the fact that
          these points of sale are principally devoted to the sale of LACOSTE
          APPAREL PRODUCTS and only on a subordinate basis of LACOSTE WATCHES
          together with OTHER LACOSTE PRODUCTS, contrary to the members of the
          "APPROVED APPAREL RETAILERS" SELECTIVE DISTRIBUTION SYSTEM who can
          sell products of different brands and who are devoted to the sale of
          the LACOSTE APPAREL PRODUCTS, unless they are selected as approved
          retailers for LACOSTE WATCHES and/or OTHER LACOSTE PRODUCTS.

          Therefore, the LACOSTE BOUTIQUES and the LACOSTE CORNERS constitute
          together the "LACOSTE BOUTIQUES AND LACOSTE CORNERS" SELECTIVE
          DISTRIBUTION SYSTEM organized by DEVANLAY which is distinct from the
          "APPROVED APPAREL RETAILERS" SELECTIVE DISTRIBUTION SYSTEM comprising
          the approved retailers for the LACOSTE APPAREL PRODUCTS.

          The "LACOSTE BOUTIQUES AND LACOSTE CORNERS" SELECTIVE DISTRIBUTION
          SYSTEM is also distinct

*    CONFIDENTIAL PORTION OF THIS EXHIBIT OMITTED AND FILED SEPARATELY WITH THE
     SEC PURSUANT TO RULE 24b-2 OF THE 1934 ACT.

<PAGE>

                                      -43-

          from the LACOSTE WATCHES SELECTIVE DISTRIBUTION SYSTEM organized by
          the MASTER LICENSEE.

     b)   The MASTER LICENSEE therefore undertakes, in its own name and in the
          name of its SUB-LICENSEES and its DISTRIBUTORS, to take all
          appropriate measures to ensure the integrity of the LACOSTE WATCHES
          SELECTIVE DISTRIBUTION SYSTEM, the "LACOSTE BOUTIQUES AND LACOSTE
          CORNERS" SELECTIVE DISTRIBUTION SYSTEM and the "APPROVED APPAREL
          RETAILERS" SELECTIVE DISTRIBUTION SYSTEM.

     7.2.5 Assistance of DEVANLAY and/or of the LACOSTE APPAREL PRODUCTS
          DISTRIBUTORS to the "LACOSTE BOUTIQUES AND LACOSTE CORNERS" SELECTIVE
          DISTRIBUTION SYSTEM in connection with the LACOSTE WATCHES and/or the
          OTHER LACOSTE PRODUCTS

          In connection with the LACOSTE WATCHES and/or the OTHER LACOSTE
          PRODUCTS that will be offered in the "LACOSTE BOUTIQUES AND LACOSTE
          CORNERS" SELECTIVE DISTRIBUTION SYSTEM under the terms of this Article
          7.2, DEVANLAY and/or the LACOSTE APPAREL PRODUCTS DISTRIBUTORS have
          agreed that :

     a)   in the field of merchandising, they shall :

          -    ensure the coherence of the merchandising for the LACOSTE APPAREL
               PRODUCTS, the LACOSTE WATCHES and/or the OTHER LACOSTE PRODUCTS,
               and

          -    present in a suitable fashion the LACOSTE WATCHES following the
               rules contained in the merchandising guide (called the "Green
               Book") and its seasonal editions developed by DEVANLAY, which
               shall be updated by the LICENSOR and DEVANLAY and approved by the
               LICENSOR, and

          -    present completely, in particular in the shop-windows, the lines
               of LACOSTE APPAREL PRODUCTS, LACOSTE WATCHES together with OTHER
               LACOSTE PRODUCTS, so as to express fully the Lacoste
               "way-of-life", and

          -    use their best efforts to include the LACOSTE WATCHES together
               with the OTHER LACOSTE PRODUCTS in their local or national
               advertising and promotion campaigns.

     b)   in the field of reporting, they shall :

          -    do their best efforts to ensure that the LACOSTE BOUTIQUES
               progressively put in place IT

<PAGE>

                                      -44-

               systems allowing a detailed reporting of their sales of LACOSTE
               APPAREL PRODUCTS, LACOSTE WATCHES and OTHER LACOSTE PRODUCTS, and

          -    for those LACOSTE BOUTIQUES who have not yet put in place, and as
               long as they have not done so, continue providing the LICENSOR
               and the MASTER LICENSEE with reports similar to those available
               as of March 1, 2004, and

          -    supply the LACOSTE BOUTIQUES with such elements as may be
               necessary for the IT treatment and the reporting of their sales
               of LACOSTE WATCHES, subject to having received the basic data
               about the LACOSTE WATCHES necessary to the operation of such a
               system from the LICENSOR, who shall have obtained it himself from
               the MASTER LICENSEE, and

          -    prepare and submit to the LICENSOR and to the MASTER LICENSEE,
               for the LACOSTE BOUTIQUES which have put in place the necessary
               IT systems and have received the necessary basic data about the
               LACOSTE WATCHES :

          (i)  on a monthly basis and under the same conditions and terms as for
               the sales of the LACOSTE APPAREL PRODUCTS by the LACOSTE
               BOUTIQUES, the information relating to the sales of the LACOSTE
               WATCHES in each LACOSTE BOUTIQUE. This information shall include
               for each LACOSTE BOUTIQUE the detail of the sales to the consumer
               of the LACOSTE WATCHES, and

          (ii) on a semi-annual basis the information relating to the sales by
               reference of the LACOSTE WATCHES in each of the LACOSTE
               BOUTIQUES.

     7.2.6 Contribution of the MASTER LICENSEE

     a)   In consideration of the merchandising and reporting services and of
          the reservation of the PRESENTATION SURFACES made for the LACOSTE
          WATCHES by the LACOSTE APPAREL PRODUCTS DISTRIBUTORS, the MASTER
          LICENSEE shall pay, or shall ensure that its SUB-LICENSEES and its
          DISTRIBUTORS pay, each six (6) months, in each country to DEVANLAY,
          or, if the distribution of the LACOSTE APPAREL PRODUCTS in this
          country has been granted to a LACOSTE APPAREL PRODUCTS DISTRIBUTOR, to
          such LACOSTE APPAREL PRODUCTS DISTRIBUTOR, a contribution representing
          a fixed

<PAGE>

                                      -45-

          percentage of * of the purchases of the LACOSTE WATCHES made by the
          "LACOSTE BOUTIQUES AND LACOSTE CORNERS" SELECTIVE DISTRIBUTION SYSTEM
          in such country.

          In view of the importance of the LACOSTE BOUTIQUES having a COMMERCIAL
          SURFACE larger than * due to their role as showcases on prime
          locations and due to their high operations cost, the MASTER LICENSEE
          shall pay, or shall ensure that its SUB-LICENSEES and its DISTRIBUTORS
          pay, to DEVANLAY, or, if the distribution of the LACOSTE APPAREL
          PRODUCTS in this country has been granted to a LACOSTE APPAREL
          PRODUCTS DISTRIBUTOR, to such LACOSTE APPAREL PRODUCTS DISTRIBUTOR, a
          contribution representing a fixed percentage of * mentioned
          hereinabove, of the purchases of the LACOSTE WATCHES by the LACOSTE
          BOUTIQUES having a COMMERCIAL SURFACE larger than *.

     b)   The amount of the contribution of the MASTER LICENSEE (or of the
          SUB-LICENSEES or DISTRIBUTORS, as the case may be) shall be determined
          on the basis of their NET SALES to the LACOSTE BOUTIQUES and the
          LACOSTE CORNERS.

     c)   These amounts shall be calculated on June 30 and December 31 of each
          year and the corresponding contribution shall be paid no later than
          August 31 and February 28 of each year, by the MASTER LICENSEE or the
          SUB-LICENSEES or DISTRIBUTORS to DEVANLAY, or if in such country the
          distribution of the LACOSTE APPAREL PRODUCTS has been granted to a
          LACOSTE APPAREL PRODUCTS DISTRIBUTOR, to such LACOSTE APPAREL PRODUCTS
          DISTRIBUTOR.

     d)   If the contribution due by the MASTER LICENSEE has not been fully paid
          at the dates specified in paragraph c) hereinabove to DEVANLAY (or to
          the appropriate LACOSTE APPAREL PRODUCTS DISTRIBUTORS), the LACOSTE
          GROUP shall have the right, thirty (30) days after a notice given by
          registered mail with certified receipt which will not have been
          followed by complete payment of all and any due and unpaid
          contributions, to instruct

*    CONFIDENTIAL PORTION OF THIS EXHIBIT OMITTED AND FILED SEPARATELY WITH THE
     SEC PURSUANT TO RULE 24b-2 OF THE 1934 ACT.

<PAGE>

                                      -46-

          forthwith the MASTER LICENSEE to stop any further deliveries of the
          LACOSTE WATCHES to the members of the "LACOSTE BOUTIQUES AND LACOSTE
          CORNERS" SELECTIVE DISTRIBUTION SYSTEM anywhere in the world, and the
          MASTER LICENSEE agrees to forthwith comply with such instructions.

     7.2.7 Furniture and sales equipment used for the LACOSTE WATCHES

          The furniture and other sales equipment used for the LACOSTE WATCHES
          in the "LACOSTE BOUTIQUES AND LACOSTE CORNERS" SELECTIVE DISTRIBUTION
          SYSTEM shall exclusively be those developed by the LICENSOR in
          cooperation with DEVANLAY and/or the MASTER LICENSEE.

          DEVANLAY and the LACOSTE APPAREL PRODUCTS DISTRIBUTOR shall be the
          sole entities responsible for the lay-out of the LACOSTE BOUTIQUES and
          the LACOSTE CORNERS, subject to the terms of this Article 7.2.

     7.2.8 End-of-season goods

          The rules applied by the LACOSTE BOUTIQUES and the LACOSTE CORNERS for
          the sale end-of-season goods shall be those applicable to the LACOSTE
          APPAREL PRODUCTS, but, to the extent possible, shall also have to
          follow those applicable to the LACOSTE WATCHES.

     7.2.9 Specific agreements

          In the event that specific agreements, departing from the provisions
          set forth hereinabove in Articles 7.2.1 to 7.2.8 are concluded either
          between DEVANLAY and the MASTER LICENSEE, or between a distributor of
          LACOSTE WATCHES and the LACOSTE APPAREL PRODUCTS DISTRIBUTOR in a
          given territory, the terms of such specific agreements shall prevail
          over the provisions set forth hereinabove in Articles 7.2.1 to 7.2.8.
          The MASTER LICENSEE shall promptly inform the LICENSOR of any such
          specific agreement.

<PAGE>

                                      -47-

     7.2.10 Breach of the obligations of the MASTER LICENSEE under the
          provisions set forth in Articles 7.2.1 to 7.2.9

          The MASTER LICENSEE acknowledges that in the event of a breach in one
          or several countries in the TERRITORY by the MASTER LICENSEE or by a
          SUB-LICENSEE or a DISTRIBUTOR of their obligations under the
          provisions set forth hereinabove in Articles 7.2.1 to 7.2.9, the
          LICENSOR has undertaken towards DEVANLAY and the LACOSTE APPAREL
          PRODUCTS DISTRIBUTORS to use its best efforts to obtain from the
          MASTER LICENSEE or from its SUB-LICENSEE or DISTRIBUTOR that it
          remedies such breach. The MASTER LICENSEE further acknowledges that in
          the event such efforts remain unsuccessful, the LICENSOR has agreed
          that DEVANLAY and the LACOSTE APPAREL PRODUCTS DISTRIBUTORS shall no
          longer be bound by any of their commitments concerning the presence or
          the sale of the LACOSTE WATCHES in the "LACOSTE BOUTIQUES AND LACOSTE
          CORNERS" SELECTIVE DISTRIBUTION SYSTEM in such country(ies), which the
          MASTER LICENSEE and its SUB-LICENSEE or DISTRIBUTOR accept.

7.3  INTERNET - MAIL ORDER

     The LICENSOR is desirous to protect in the TERRITORY the LACOSTE TRADEMARKS
     IMAGE, the MODELS, the LACOSTE WATCHES as well as the LACOSTE APPAREL
     PRODUCTS and the OTHER LACOSTE PRODUCTS sold under the LICENSED TRADEMARKS.
     The LICENSOR also desires to protect the consumer from the counterfeiting
     of the above and desires to offer the consumer an appropriate environment
     and a high quality service. For all these reasons, the LACOSTE WATCHES must
     be exclusively sold through the LACOSTE WATCHES SELECTIVE DISTRIBUTION
     SYSTEM and the "LACOSTE BOUTIQUES AND LACOSTE CORNERS" SELECTIVE
     DISTRIBUTION SYSTEM.

     In consequence, the advertising and/or the sale of the LACOSTE WATCHES on
     the Internet are authorized provided that the following conditions are met
     :

     7.3.1 the advertising and/or the sale of the LACOSTE WATCHES on the
          Internet or by Mail Order may only be made by APPROVED WATCHES
          RETAILERS and members

<PAGE>

                                      -48-

          of the "LACOSTE BOUTIQUES AND LACOSTE CORNERS" SELECTIVE DISTRIBUTION
          SYSTEM; and

     7.3.2 the web site or the Mail Order catalogues on which the LACOSTE
          WATCHES shall be advertised and/or sold shall be submitted to LICENSOR
          for LICENSOR's written approval. Such approval shall be granted if the
          following conditions are met :

          a)   the name, the environment, the presentation and the general
               standing of the web site or the Mail Order catalogues as well as
               the way it functions shall be compatible with the LACOSTE
               TRADEMARKS IMAGE; and

          b)   the web site or the Mail Order catalogues shall offer to
               consumers a high quality service for the LACOSTE WATCHES; and

          c)   the manner in which the MODELS and the LICENSED TRADEMARKS are
               presented on the web site or in the Mail Order catalogues in
               connection with the advertising and/or the sale of the LACOSTE
               WATCHES shall be submitted to LICENSOR for LICENSOR's written
               approval. The APPROVED WATCHES RETAILERS and the members of the
               "LACOSTE BOUTIQUES AND LACOSTE CORNERS" SELECTIVE DISTRIBUTION
               SYSTEM may not include or use any of the LICENSED TRADEMARKS in
               the workings (as they exist as of this day or in the future) of
               the web, and in particular no LICENSED TRADEMARK may be included
               or used in a domain name, an URL address or an e-mail address.

7.4  MARKETING POLICY

     7.4.1 The MASTER LICENSEE undertakes to apply a marketing policy which
          takes into account the characteristics of the main markets of the
          TERRITORY and the policies practiced on each of these markets for
          products of comparable quality and commercial standard, so as to
          preserve the LACOSTE TRADEMARKS IMAGE.

     7.4.2 The MASTER LICENSEE shall be free to fix its wholesale prices to the
          members of the LACOSTE WATCHES SELECTIVE DISTRIBUTION SYSTEM and the

<PAGE>

                                      -49-

          "LACOSTE BOUTIQUES AND LACOSTE CORNERS" SELECTIVE DISTRIBUTION SYSTEM
          so as to facilitate the diffusion of the LACOSTE WATCHES and the
          development of sales within the TERRITORY. The MASTER LICENSEE shall
          keep the LICENSOR informed on a regular basis of its pricing policy.
          More specifically, the MASTER LICENSEE shall inform the LICENSOR of
          any modification in its price structure as soon as practicable after
          such modification.

          Unless prohibited by applicable law, e.g., in the United States of
          America, reduction of price points by MASTER LICENSEE for the LACOSTE
          WATCHES if not justified by normal business reasons, such as technical
          ones or currency exchange fluctuations, may not be implemented if such
          a move risks in any way to have negative consequences on the LACOSTE
          TRADEMARKS IMAGE.

          Unless prohibited by applicable law, e.g., in the United States of
          America, it is agreed that the prices invoiced to the members of the
          LACOSTE WATCHES SELECTIVE DISTRIBUTION SYSTEM and the "LACOSTE
          BOUTIQUES AND LACOSTE CORNERS" SELECTIVE DISTRIBUTION SYSTEM during
          the notice period provided for in Articles 18.3 and 20.4 hereinafter
          may not be lower than *.

ARTICLE 8 - PROMOTION AND ADVERTISING

8.1  In order to allow the LICENSOR to coordinate in the TERRITORY a promotional
     and advertising policy for the sale of the LACOSTE WATCHES compatible with
     the prestige of the LACOSTE TRADEMARKS and of the name Lacoste and which
     support a satisfactory development of sales, the LICENSOR and the MASTER
     LICENSEE agree that :

     8.1.1 the development of the advertising of the LACOSTE TRADEMARKS IMAGE
          shall be made by the LICENSOR at the LICENSOR's costs. The LICENSOR
          shall draw up twice a year at the latest before November 30 and May 31
          of each year the strategy defining the policy to be implemented for
          the advertising of

*    CONFIDENTIAL PORTION OF THIS EXHIBIT OMITTED AND FILED SEPARATELY WITH THE
     SEC PURSUANT TO RULE 24b-2 OF THE 1934 ACT.

<PAGE>

                                      -50-

          the LACOSTE TRADEMARKS IMAGE as well by the MASTER LICENSEE as by the
          LICENSOR's other licensees (briefings) and recalling the basic
          permanent or semi-permanent rules to be followed for said advertising,
          more particularly with respect to the use of the LACOSTE TRADEMARKS
          (Charter); and

     8.1.2 the development of the advertising for the LACOSTE WATCHES shall be
          made by the MASTER LICENSEE at the MASTER LICENSEE's costs, respecting
          as closely as possible the PROMOTION AND ADVERTISING KNOW-HOW put at
          the MASTER LICENSEE's disposal by the LICENSOR including the LACOSTE
          TRADEMARKS IMAGE advertising policy defined by the LICENSOR according
          to the provisions of Article 8.1.1 hereinabove. The costs relating to
          the exploitation of the advertising of the LACOSTE WATCHES (media
          buying etc...) shall be borne by the MASTER LICENSEE, its
          SUB-LICENSEES and its DISTRIBUTORS and shall be deemed as constituting
          an integral part of the promotion and advertising budgets defined in
          Article 8.2.2 hereinafter; and

     8.1.3 the LACOSTE TRADEMARKS IMAGE's promotional programs (professional
          sportsmen, product placement in motion pictures, etc.) shall be :

          a)   when they have an international impact, developed by the LICENSOR
               after having consulted the MASTER LICENSEE. The costs related to
               these promotional programs shall be equally shared (according to
               the provisions of and within the ceiling * provided in Article
               8.4.1 hereinafter) between, on one side, the MASTER LICENSEE
               (and, as the case may be, if said programs concern the LACOSTE
               APPAREL PRODUCTS and/or the OTHER LACOSTE PRODUCTS, the
               LICENSOR's licensees and/or distributors for such products) and
               on the other side, the LICENSOR. The MASTER LICENSEE share of
               costs shall be deemed as constituting an integral part of the
               promotion and advertising budgets defined in Article 8.2.2
               hereinafter; and

*    CONFIDENTIAL PORTION OF THIS EXHIBIT OMITTED AND FILED SEPARATELY WITH THE
     SEC PURSUANT TO RULE 24b-2 OF THE 1934 ACT.

<PAGE>

                                      -51-

          b)   when they have essentially a national impact, developed by the
               MASTER LICENSEE after having consulted the LICENSOR respecting as
               closely as possible the PROMOTION AND ADVERTISING KNOW-HOW put at
               the MASTER LICENSEE's disposal by the LICENSOR including the
               policy defined by the LICENSOR for the promotion of the image of
               the LACOSTE TRADEMARKS according to the provisions of Article
               8.1.3a) hereinabove. The costs relating to these promotional
               programs shall be borne exclusively by the MASTER LICENSEE, its
               SUB-LICENSEES and its DISTRIBUTORS and shall be deemed as
               constituting an integral part of the promotion and advertising
               budgets defined in Article 8.2.2 hereinafter.

8.2  To this effect, the MASTER LICENSEE :

     8.2.1 shall participate (or shall ensure that its SUB-LICENSEES and its
          DISTRIBUTORS participate) in the coordination meetings organized at
          least twice a year in each of the MAIN COUNTRIES within the TERRITORY
          by the LICENSOR with the other main licensees and/or distributors for
          the LACOSTE APPAREL PRODUCTS and OTHER LACOSTE PRODUCTS in order to
          ensure the consistency of the different promotional and advertising
          campaigns; and

     8.2.2 shall allocate (or procure that its SUB-LICENSEES and its
          DISTRIBUTORS allocate) for the promotional and advertising actions
          listed in Schedule XVII an annual advertising and promotional budget
          representing no less than * of its estimated NET SALES determined in
          conformity with the provisions of Article 6.2.7 hereinabove. At the
          last of the Watches Committees of each year, the MASTER LICENSEE shall
          submit to the LICENSOR its advertising and promotion budget detailed
          by country and itemized as given in Schedule XVII, according to its
          forecasts of NET SALES for the concerned year, as well as a
          description of its main promotional and advertising actions or
          campaigns; and

     8.2.3 provide the LICENSOR once a year at the beginning of the month of
          March with a report on the

*    CONFIDENTIAL PORTION OF THIS EXHIBIT OMITTED AND FILED SEPARATELY WITH THE
     SEC PURSUANT TO RULE 24b-2 OF THE 1934 ACT.

<PAGE>

                                      -52-

          amounts spent on advertising and promotion during the previous
          calendar year by country itemized as given in Schedule XVII; and

     8.2.4 shall take all reasonable steps to ensure in particular that not only
          the LACOSTE TRADEMARKS IMAGE, but also the personal reputation of Mr.
          Rene Lacoste and his family are safeguarded; and

     8.2.5 shall use exclusively the lettering, labels and logos created by the
          LICENSOR when advertising or promoting the "Lacoste" image and the
          LACOSTE WATCHES; and

     8.2.6 if any apparel or other products of the type comprising the LACOSTE
          APPAREL PRODUCTS or the OTHER LACOSTE PRODUCTS are to be depicted in
          any advertising or promotional material for LACOSTE WATCHES, shall use
          in such advertising and promotional material for the LACOSTE WATCHES
          exclusively the LACOSTE APPAREL PRODUCTS and/or OTHER LACOSTE PRODUCTS
          or accessories bearing the LACOSTE TRADEMARKS whenever such exist and
          are available; and

     8.2.7 shall consult with the LICENSOR before retaining any promotion,
          communication or advertising agency for work in relation with the
          LACOSTE WATCHES; and

     8.2.8 shall in a general manner, consult the LICENSOR when planning its
          advertising and promotional programs and inform the LICENSOR of the
          particulars of such programs before they are finalized by its
          advertising agents, in particular with the purpose of allowing the
          coordination of these programs with those of the other licensees of
          the LICENSOR (media plans); and

     8.2.9 prior to the first use thereof, shall submit to the LICENSOR a copy
          or a photograph of its advertising or promotional projects (press and
          TV advertising, catalogues, posters, circulars and in general all
          publi-promotional material) and/or sales aids such as, in particular,
          the furniture, the booths for trade shows and the private or public
          salesrooms intended to facilitate or

<PAGE>

                                      -53-

          promote the distribution and sale of the LACOSTE WATCHES. The LICENSOR
          shall have a fifteen (15) day period to notify in writing MASTER
          LICENSEE that it approves or disapproves the content, the form and/or
          the media used for these projects. Should the LICENSOR not respond
          within said fifteen (15) days period, it will be deemed to have given
          its approval; and

     8.2.10 shall allow the LICENSOR and the LICENSOR's other licensees to use
          free of charge for their activities, subject only to the payment of
          the creative and authors' rights, such advertising and promotional
          creations and ideas; and

     8.2.11 shall ensure that the APPROVED WATCHES RETAILERS comply with the
          conditions mentioned in Articles 8.2.4 to 8.2.10 hereinabove and 8.3
          hereinafter, should they themselves elect to advertise and promote the
          sale of the LACOSTE WATCHES and in particular, include a special
          clause in its general sales conditions and/or agreements with such
          APPROVED WATCHES RETAILERS to this effect; and

8.3  The MASTER LICENSEE, its SUB-LICENSEES and its DISTRIBUTORS shall not,
     except after having obtained the previous written agreement of the
     LICENSOR, and in such event according to the LICENSOR's prescriptions,
     register a domain name including the name Lacoste or Crocodile.

     The MASTER LICENSEE, its SUB-LICENSEES and its DISTRIBUTORS may use web
     pages in the sites created by or for the LICENSOR in certain countries of
     the TERRITORY, provided such sites are to be shared among the different
     LICENSOR's licensees and/or distributors and the content of which shall be
     provided by the MASTER LICENSEE, its SUB-LICENSEES and its DISTRIBUTORS to
     the LICENSOR.

     The MASTER LICENSEE, its SUB-LICENSEES and its DISTRIBUTORS shall provide
     the LICENSOR with the necessary information to update said web pages,
     whenever requested by the LICENSOR.

     Should the MASTER LICENSEE, its SUB-LICENSEES or its DISTRIBUTORS wish to
     include a web page in their own institutional web sites in relation with
     the LICENSED TRADEMARKS and the LACOSTE WATCHES, or links with the

<PAGE>

                                      -54-

     sites of the LACOSTE GROUP, the MASTER LICENSEE, its SUB-LICENSEES and its
     DISTRIBUTORS shall have to submit their plans to the LICENSOR and obtain
     its prior written approval before going on line. The same procedure shall
     apply for the updating of said web page.

8.4  The LICENSOR shall, for its part :

     8.4.1 continue the promotional and advertising activities that it has
          carried out for many years throughout the world. It is specified that,
          should the LICENSOR undertake operations which are in the world-wide
          interest of the LACOSTE TRADEMARKS and which may be used or have
          direct or indirect repercussions with respect to the distribution of
          the LACOSTE WATCHES or the promotion and advertising of the LACOSTE
          TRADEMARKS IMAGE (and in particular either the promotional actions
          described in Article 8.1.3a) hereinabove, or the expenses for the
          advertising of the LACOSTE TRADEMARKS IMAGE as provided in Article
          8.1.1 hereinabove), the MASTER LICENSEE shall have to contribute
          financially to such operations for such share as the LICENSOR shall
          decide, but only up to a maximum amount not exceeding for each year *
          NET SALES forecasts defined in Article 6.2.7 hereinabove for such
          year. The amount spent by the MASTER LICENSEE for such operations
          shall be deemed as constituting an integral part of the advertising
          and promotion budget provided for in Article 8.2.2 hereinabove. If the
          LICENSOR does not use up such right during any one (1) year, then the
          amount not used up during such year may not be carried forward in the
          following year.

          The LICENSOR shall invoice the MASTER LICENSEE for its share of such
          expenses regularly during the course of the year, and the MASTER
          LICENSEE shall settle such invoices within thirty (30) days; and

     8.4.2 supply the MASTER LICENSEE from time to time, at cost price, with any
          advertising material used by the LICENSOR that the MASTER LICENSEE may
          wish to purchase; and

*    CONFIDENTIAL PORTION OF THIS EXHIBIT OMITTED AND FILED SEPARATELY WITH THE
     SEC PURSUANT TO RULE 24b-2 OF THE 1934 ACT.

<PAGE>

                                      -55-

     8.4.3 use reasonable efforts to keep the MASTER LICENSEE informed of the
          actions of its other licensees and distributors in the field of their
          marketing, merchandising, promotion and advertising programs, for
          instance at the time of the coordination meetings regularly organized
          by the LICENSOR, to which the MASTER LICENSEE shall attend as provided
          by Article 6.2.4 hereinabove; and

     8.4.4 ensure that its licensees and distributors for the LACOSTE APPAREL
          PRODUCTS and the OTHER LACOSTE PRODUCTS fulfill the same obligations
          in respect of advertising and promotion as are binding upon the MASTER
          LICENSEE as regards to the LACOSTE WATCHES pursuant to Article 8.2
          hereinabove.

ARTICLE 9 - COLLECTIONS AND LACOSTE CLUB

The MASTER LICENSEE shall supply the LICENSOR free of charge two complete lines
of LACOSTE WATCHES each year during the term of this MASTER AGREEMENT.

The LACOSTE WATCHES purchased by the LICENSOR from the MASTER LICENSEE to be
sold or given as gifts through the Lacoste Club as well as the other LACOSTE
WATCHES the LICENSOR may need for its own use shall be invoiced by the MASTER
LICENSEE to LICENSOR *.

ARTICLE 10 - END-OF-SEASON GOODS AND SECONDS

10.1 SECONDS and end-of-season close-outs of LACOSTE WATCHES (LACOSTE WATCHES no
     longer included in the collection of the LACOSTE WATCHES) may be sold with
     the LICENSED TRADEMARKS by the MASTER LICENSEE, its SUB-LICENSEES and its
     DISTRIBUTORS exclusively through the normal channels of distribution for
     the LACOSTE WATCHES, outlet stores operated by MASTER LICENSEE, its
     SUB-LICENSEES or its affiliates and off-price customers that are approved
     in advance by LICENSOR (which approval shall not be unreasonably withheld,
     delayed or conditioned). LICENSOR agrees that the off-price customers
     listed on Schedule XV attached hereto are approved off-price customers as
     of

*    CONFIDENTIAL PORTION OF THIS EXHIBIT OMITTED AND FILED SEPARATELY WITH THE
     SEC PURSUANT TO RULE 24b-2 OF THE 1934 ACT.

<PAGE>

                                      -56-

     the date of this MASTER AGREEMENT for sales of SECONDS and end-of-season
     close-outs of LACOSTE WATCHES..

10.2 Damaged or defective LACOSTE WATCHES which cannot be repaired may in no
     circumstances be sold in any manner whatsoever, and shall be destroyed at
     their expense by the MASTER LICENSEE, its SUB-LICENSEES or its
     DISTRIBUTORS.

ARTICLE 11 - UNFAIR COMPETITION

In consideration of the rights hereby granted to the MASTER LICENSEE under this
MASTER AGREEMENT, the MASTER LICENSEE undertakes :

11.1 not to reproduce, manufacture, distribute or sell during the term of this
     MASTER AGREEMENT for its own account or for the account of third parties,
     directly or indirectly, any product identical with or confusingly similar
     to the LACOSTE WATCHES or likely to create confusion in the mind of the
     public, or having certain characteristics unique to any MODEL of the
     LACOSTE WATCHES, such undertaking to remain in full force and effect for
     five (5) years after the DATE OF TERMINATION of this MASTER AGREEMENT; and

11.2 to never manufacture, distribute or sell for its own account or for the
     account of third parties, directly or indirectly, any product bearing a
     name, trademark or emblem confusingly similar to the LACOSTE TRADEMARKS, or
     likely to be confused with the LACOSTE TRADEMARKS. This prohibition is
     permanent.

ARTICLE 12 - LICENSED TRADEMARKS USE

12.1 The LICENSOR shall supply the MASTER LICENSEE with the list of the LICENSED
     TRADEMARKS country by country and shall inform the MASTER LICENSEE of any
     modification of such list. The LICENSOR undertakes that in each country of
     the TERRITORY at least one (1) representation of the Crocodile and one (1)
     word-mark including the name "Lacoste" are available for use by the MASTER
     LICENSEE. To the knowledge of the LICENSOR, as of the date of this
     AGREEMENT, no claim has been asserted in writing against the LICENSOR or
     any licensee of LICENSOR alleging that the use of the LICENSED TRADEMARKS
     by the LICENSOR or by

<PAGE>

                                      -57-

     any such licensee infringes the intellectual property rights of any third
     party.

12.2 The LICENSED TRADEMARKS shall be affixed on the LACOSTE WATCHES and the
     MASTER LICENSEE shall describe the ownership and right to use the LICENSED
     TRADEMARKS only in such form and manner as may be approved from time to
     time by the LICENSOR. The LACOSTE WATCHES shall bear no other name or mark
     or wording which may or would in the normal course of event lead third
     parties to believe that the LICENSED TRADEMARKS are owned by any person,
     firm or corporation other than the LICENSOR.

     Any additional mark or wording required by the laws and regulations in
     force in certain of the countries of the TERRITORY shall have to be
     submitted to the prior written approval of the LICENSOR, which will have
     the right to decide of their size or placement whenever possible.

12.3 No representation of the LICENSED TRADEMARKS or combinations thereof shall
     be put in use by the MASTER LICENSEE without the prior written approval of
     the LICENSOR.

12.4 The MASTER LICENSEE acknowledges that the representation of the LICENSED
     TRADEMARKS has a significant effect upon the public's perception and
     understanding of the LACOSTE TRADEMARKS IMAGE, and that changes in such
     representation need to be few and carefully planned. If the LICENSOR
     desires to change the form or manner of use of any LICENSED TRADEMARKS from
     that previously approved by it, such change shall either take effect after
     (and as soon as) the MASTER LICENSEE's components and elements using such
     LICENSED TRADEMARKS as previously approved are used up, or shall take
     effect at once if the LICENSOR agrees to hold the MASTER LICENSEE harmless
     against actual losses incurred by the MASTER LICENSEE as a result of such
     change. The LICENSOR shall give notice to the MASTER LICENSEE of any such
     change six (6) months at least before its implementation.

12.5 The MASTER LICENSEE undertakes to never use any pictorial representation of
     an alligator, crocodile, lizard- or saurian-like reptile on or in
     connection with products other than the LACOSTE WATCHES.

12.6 The MASTER LICENSEE undertakes to use any word relating to an alligator,
     crocodile, lizard or saurian-like

<PAGE>

                                      -58-

     reptile only on or in connection with the LACOSTE WATCHES, or in connection
     with the description of materials/components of other products manufactured
     or distributed by the MASTER LICENSEE.

12.7 The MASTER LICENSEE shall always respect good trade practices in the manner
     and use of the LICENSED TRADEMARKS and adhere to such reasonable opinion as
     may be provided from time to time by the LICENSOR's trademark counsels for
     such use.

12.8 In order to maintain adequate protection for the LICENSED TRADEMARKS and
     notwithstanding the exclusivity of the rights granted to the MASTER
     LICENSEE, the LICENSOR shall retain the right to sell, directly or
     indirectly, if the MASTER LICENSEE for any reason is not able to do so
     itself, appropriate quantities of LACOSTE WATCHES within certain parts of
     the TERRITORY, provided that the LICENSOR shall first provide the MASTER
     LICENSEE the opportunity to make any such sales. The LICENSOR shall keep
     the MASTER LICENSEE informed of any such sales, and shall make all
     reasonable efforts to coordinate its actions in this regard with those of
     the MASTER LICENSEE.

ARTICLE 13 - PACKAGING AND CASES

13.1 The packaging, cases, etc. for the LACOSTE WATCHES shall be created and
     developed in the same conditions as the LACOSTE WATCHES themselves, as
     provided in Article 4.3.2 hereinabove. The mock-ups and designs for the
     packaging, cases, etc. shall be submitted by the MASTER LICENSEE to the
     LICENSOR under the same conditions as those provided for the LACOSTE
     WATCHES themselves in Article 4.3.3 hereinabove.

13.2 The MASTER LICENSEE undertakes to never use neither such packaging, cases,
     etc., nor any part thereof, for any purpose other than in connection with
     the LACOSTE WATCHES.

13.3 Any packaging, case, etc., bearing or representing the LICENSED TRADEMARKS
     to be used in connection with the LACOSTE WATCHES shall be purchased
     exclusively by the MASTER LICENSEE from SUPPLIERS. Appropriate SUPPLY
     AGREEMENTS shall be entered into in writing between the MASTER LICENSEE and
     such SUPPLIERS.

<PAGE>

                                      -59-

     The molds, prints, tools and computer data bearing or representing the
     LICENSED TRADEMARKS or allowing their reproduction shall remain at all
     times the property of the MASTER LICENSEE, shall be handled carefully and
     protected in order to avoid theft or any unauthorized use of such. The
     molds, prints, tools and computer data shall be returned to the MASTER
     LICENSEE at the end of each of the SUPPLY AGREEMENTS.

13.4 The MASTER LICENSEE shall keep detailed accounts showing the flow of the
     packaging, cases, etc. bearing or representing the LICENSED TRADEMARKS.

13.5 At regular intervals, the MASTER LICENSEE shall, as instructed by the
     LICENSOR, destroy at its own expense all defective packaging, cases, etc.
     in its possession, and shall inform the LICENSOR of such destruction.

ARTICLE 14 - LACOSTE TRADEMARKS AND MODELS

14.1 The MASTER LICENSEE undertakes not to use the LACOSTE TRADEMARKS or the
     MODELS otherwise than within the scope and the limits of this MASTER
     AGREEMENT and for the sale of the LACOSTE WATCHES.

14.2 The MASTER LICENSEE hereby acknowledges that the LICENSOR is the sole
     owner, worldwide, of the LACOSTE TRADEMARKS and the MODELS.

14.3 The MASTER LICENSEE undertakes to strictly respect the LICENSOR's
     intellectual property rights.

     Consequently, the MASTER LICENSEE :

     14.3.1 shall not apply for registration of any of the LACOSTE TRADEMARKS
          nor for the registration of any trademark confusingly similar to, or
          resembling the LACOSTE TRADEMARKS anywhere in the world, nor shall it
          assist any party other than the LICENSOR to do so except with the
          prior written consent of the LICENSOR, such prohibitions applying to
          each and every kind of goods or services in any class of the
          International Classification of Goods and Services; and

<PAGE>

                                      -60-

     14.3.2 undertakes to facilitate during the term of this MASTER AGREEMENT
          all applications for the registration of trademarks which the LICENSOR
          may apply for at LICENSOR's own expense anywhere in the world to
          protect the LACOSTE TRADEMARKS in any class or category of a national
          or international classification, it being hereby expressly
          acknowledged by the MASTER LICENSEE that any such trademark or any
          other right thus obtained shall be the exclusive property of the
          LICENSOR; and

     14.3.3 shall, during the term of this MASTER AGREEMENT, uphold and assist
          the LICENSOR in maintaining, at the LICENSOR's exclusive expense,
          adequate trademark registration of the LICENSED TRADEMARKS within the
          TERRITORY; and

     14.3.4 shall not apply for the registration of any of the MODELS nor for
          the registration of any model confusingly similar to the MODELS
          anywhere in the world, nor shall it assist any party other than the
          LICENSOR to do so, except jointly with the LICENSOR; and

     14.3.5 shall be vigilant in watching for any infringement of the LICENSOR's
          rights in the LACOSTE TRADEMARKS or the MODELS, and shall consequently
          promptly notify the LICENSOR after becoming aware of the same of any
          act that may constitute a counterfeit, an usurpation or an imitation
          of the LICENSED TRADEMARKS or the MODELS, as well as of any act of
          unfair competition. The LICENSOR alone shall be responsible for taking
          action against infringers but the MASTER LICENSEE shall assist the
          LICENSOR in every possible way, and shall ensure that its
          SUB-LICENSEES, its DISTRIBUTORS, its SUB-CONTRACTORS and the SUPPLIERS
          assist it also in every possible way.

          The expenses of the proceedings incident to or contemplated by this
          Article 14.3.5 relating to the LACOSTE WATCHES as well as any damages
          that might be awarded as a result of such action shall be shared
          equally (subject to the terms of Article 14.4 hereinafter) between the
          LICENSOR on the one hand and the MASTER LICENSEE and/or, as
<PAGE>

                                      -61-

          the MASTER LICENSEE may decide, its SUB-LICENSEES and DISTRIBUTORS on
          the other hand. The expenses relating to investigations (i.e. private
          detectives, enquiry agents, etc.) if previously agreed upon between
          the LICENSOR and the MASTER LICENSEE and/or its SUB-LICENSEES and
          DISTRIBUTORS, shall be shared equally (subject to the terms of Article
          14.4 hereinafter) in the same manner; and

     14.3.6 shall defend at its own costs and expenses any action for unfair
          competition, passing-off, copyright, patent or design infringement,
          including advertising or other related cause of action arising out of
          its use of the LICENSED TRADEMARKS or the MODELS, and shall give
          prompt notice in writing to the LICENSOR of any such action. The
          LICENSOR shall always have the right to participate in such an action
          at its sole discretion. In this event the expenses of the proceedings
          as well as any damage arising from such action shall be shared
          equally. In any event, the LICENSOR shall provide its assistance to
          the MASTER LICENSEE in such defense; and

     14.3.7 shall in no circumstances, and whatever may have been the duration
          of this MASTER AGREEMENT or the reason for its termination or
          non-renewal, be entitled to any claim to the ownership of the LACOSTE
          TRADEMARKS, or, after the DATE OF TERMINATION, of the MODELS.

14.4 If, in any given year, the share of the expenses to be paid by the MASTER
     LICENSEE according to the terms of Article 14.3.5 hereinabove exceeds * of
     NET SALES during such year, the MASTER LICENSEE shall have the right to
     limit its share of such expenses to an amount equal to * of NET SALES in
     such year. If the MASTER LICENSEE makes such election, it shall so notify
     LICENSOR and then the LICENSOR may terminate this AGREEMENT as provided in
     Article 20.4 hereinafter.

14.5 In no circumstances, the LICENSOR may be held liable by the MASTER LICENSEE
     for any loss the MASTER LICENSEE may suffer due to acts of counterfeiting,
     imitation, usurpation or unfair competition committed by third parties.

*    CONFIDENTIAL PORTION OF THIS EXHIBIT OMITTED AND FILED SEPARATELY WITH THE
     SEC PURSUANT TO RULE 24b-2 OF THE 1934 ACT.

<PAGE>

                                      -62-

14.6 Notwithstanding the foregoing, either party shall have the right to
     prosecute by law any third party for unfair competition according to its
     own interest and at its own expense.

14.7 The MASTER LICENSEE shall use all appropriate efforts to ensure that the
     LACOSTE WATCHES do not infringe third parties intellectual property rights
     in the field of copyright, models, designs and patents.

ARTICLE 15 - CONFIDENTIALITY

15.1 The LICENSOR and the MASTER LICENSEE recognize that the information
     (including the STYLING KNOW-HOW, the MARKETING AND MERCHANDISING KNOW-HOW
     the PROMOTION AND ADVERTISING KNOW-HOW and the WATCHES KNOW-HOW) they have
     so far received and shall receive in the future, related directly or
     indirectly to this MASTER AGREEMENT (a) shall remain the exclusive property
     of the party which has provided it, (b) shall be kept strictly confidential
     by both parties, (c) shall only be used within the scope and during the
     term of this MASTER AGREEMENT by the party which has not provided it, while
     the party which has provided it may use it freely, either during the entire
     term of this MASTER AGREEMENT (subject to the terms of Articles 2 and 11
     hereinabove) as well as after its expiration or termination for whatever
     reason, and (d) shall not be revealed to third parties by the party which
     has not provided it without having obtained the prior written agreement of
     the party which has provided such information. The information which is
     already fully in the public domain, received from third parties which are
     not required to keep it confidential or which one of the parties is
     required to reveal by virtue of legal or regulatory requirements, shall not
     be covered by this Article 15.1.

15.2 However, and as an exception to the provisions of Article 15.1 hereinabove,
     the LICENSOR may disclose to its other licensees and distributors the
     confidential marketing and communication information received from the
     MASTER LICENSEE and use such information in the context of its agreements
     with its other licensees and distributors, to the extent that a) such
     confidential information offers a direct interest for the development of
     the "Lacoste" activity of said licensees and

<PAGE>

                                      -63-

     distributors and b) does not relate to manufacturing or production costs of
     the MASTER LICENSEE for the LACOSTE WATCHES.

15.3 The LICENSOR and the MASTER LICENSEE undertake to have third parties (such
     as advertising agencies, marketing research offices, etc.) to whom they may
     have recourse sign commitments according to which they shall undertake to
     never reveal to any party the confidential information of any nature
     whatsoever which shall have been given to them by the LICENSOR or the
     MASTER LICENSEE in the framework of the services required or which they
     shall have learned by chance, as well as to never use for the benefit of
     third parties or to transmit to said third parties the creations or studies
     carried out for the benefit of the LICENSOR or the MASTER LICENSEE, except
     with the prior written approval of the LICENSOR and of the MASTER LICENSEE.

15.4 The provisions contained in this Article 15 shall remain in force even
     after the termination or non-renewal of this MASTER AGREEMENT for a period
     of ten (10) years after said termination or non-renewal.

ARTICLE 16 - COMPENSATION

16.1 For and in consideration of the rights and licenses granted or to be
     granted to it herein, the MASTER LICENSEE shall pay :

     16.1.1 to LACOSTE when relating to LACOSTE WATCHES sold in the countries
          listed in Schedule IV.a; and

     16.1.2 to SPL when relating to LACOSTE WATCHES sold in the countries listed
          in Schedule IV.b; and

     16.1.3 to LCA when relating to LACOSTE WATCHES sold in the countries listed
          in Schedule IV.c

     as a royalty such sum or sums as shall, after deduction therefrom of all
     taxes and charges applicable thereto, amount to * of the NET SALES of
     LACOSTE WATCHES.

16.2 Whenever the LICENSOR can obtain tax credits or other credits of any nature
     for the taxes and charges paid by the MASTER LICENSEE, then LICENSOR shall
     notify MASTER

*    CONFIDENTIAL PORTION OF THIS EXHIBIT OMITTED AND FILED SEPARATELY WITH THE
     SEC PURSUANT TO RULE 24b-2 OF THE 1934 ACT.

<PAGE>

                                      -64-

     LICENSEE of such credits and the MASTER LICENSEE may deduct such taxes and
     charges from the corresponding royalty payments.

ARTICLE 17 - REPORTS OF ROYALTIES AND PAYMENTS

17.1 As regards the implementation of Article 16 hereinabove, the MASTER
     LICENSEE shall, and shall ensure that its SUB-LICENSEES and its
     DISTRIBUTORS maintain true, accurate and complete records of NET SALES and
     SALES TO DISTRIBUTORS of each model of each line of LACOSTE WATCHES, and
     shall provide, and ensure that its SUB-LICENSEES provide, the LICENSOR with
     true and accurate quarterly statements of such NET SALES and SALES TO
     DISTRIBUTORS in a form satisfactory to the LICENSOR, no later than two (2)
     months after the end of each QUARTER, showing separately country by
     country:

     17.1.1 the total number of each model of said LACOSTE WATCHES, sold during
          each month of the preceding QUARTER as well as the total number of
          each model of LACOSTE WATCHES returned; and

     17.1.2 NET SALES and SALES TO DISTRIBUTORS and the details of their
          computation from gross and net receipts from the sales of each model
          of said LACOSTE WATCHES during each month of such QUARTER; and

     17.1.3 the amount or amounts due to the LICENSOR under Article 16
          hereinabove for each month of such QUARTER.

17.2 Simultaneously to providing such statements, the MASTER LICENSEE shall, or
     shall ensure that its SUB-LICENSEES pay to the LICENSOR according to the
     provisions of Article 16.1 hereinabove, at such address as LACOSTE, SPL, OR
     LCA may designate in writing, the amount or amounts due respectively to
     LACOSTE, SPL, OR LCA. Any overpayment (by reason of later returns, rebates
     or discounts actually given) for any one QUARTER may be credited to amounts
     due for any subsequent QUARTER.

17.3 Interest calculated at the two months EURIBOR rate plus two percent (2%)
     shall also be due and paid on any amount in arrears up to thirty (30) days
     and at the two months

<PAGE>

                                      -65-

     EURIBOR rate plus five percent (5%) on any amount in arrears over thirty
     (30) days.

17.4 All sums due pursuant to this MASTER AGREEMENT are to be paid in Euros, in
     full amount without any deduction of any kind.

     The rate of exchange used for the conversion of any currency into Euros
     shall be the rate of exchange published by the Wall Street Journal on the
     first day of the month for which a statement of NET SALES and SALES TO
     DISTRIBUTORS is being furnished and/or for which payment is being made.

17.5 The MASTER LICENSEE shall, and shall ensure that its SUB-LICENSEES and its
     DISTRIBUTORS, provide to and permit representatives of the LICENSOR, from
     time to time upon reasonable request, to examine and audit such records
     maintained under the terms of Article 17.1 hereinabove at the expense of
     the LICENSOR. If, as a result of any such audit, it appears that the
     amounts paid are less than the amounts due by three percent (3%) or more,
     the MASTER LICENSEE shall bear the cost of the audit, and such difference
     shall bear interest from the date when it should have been paid to the date
     on which it is actually paid calculated on the basis of the rules set forth
     in Article 17.3 hereinabove.

17.6 Within sixty (60) days after the DATE OF TERMINATION and each sixty (60)
     days thereafter, the MASTER LICENSEE shall, and shall ensure that its
     SUB-LICENSEES, render to the LICENSOR a statement similar to that required
     by Article 17.1 hereinabove together with full detail of the disposition,
     by sale or otherwise, of all the LACOSTE WATCHES including the complete
     identification of all persons to whom such LACOSTE WATCHES were sold and
     the number of units and sales price of such products covering the period
     from the latest date covered by the last preceding statement to the DATE OF
     TERMINATION or the final disposition of all such LACOSTE WATCHES, whichever
     is latest.

17.7 Concurrently with the furnishing of such reports, the MASTER LICENSEE
     shall, or shall ensure that its SUB-LICENSEES, pay to the LICENSOR
     according to the provisions of Article 16.1 hereinabove, at such address as
     LACOSTE, SPL, OR LCA may designate in writing, the

<PAGE>

                                      -66-

     amount or amounts due respectively to LACOSTE, SPL, OR LCA, the amount or
     amounts due by the MASTER LICENSEE.

     Any over payment (by reason of late return, rebates or discount actually
     given) for any one period may be credited to amounts due for any subsequent
     payment.

ARTICLE 18 - DURATION

18.1 This MASTER AGREEMENT shall enter into force on January 1, 2007.

18.2 This MASTER AGREEMENT shall extend for an initial term terminating on
     December 31, 2014.

18.3 This MASTER AGREEMENT shall be automatically renewed at the end of such
     initial term and thereafter for periods of five (5) years, each party
     having the right however to prevent any initial or subsequent renewal and
     to thus terminate this MASTER AGREEMENT by giving written notice that this
     MASTER AGREEMENT shall terminate at the end of its present term or of any
     renewal period, as the case may be, with such notice to be given by
     registered mail to the other party with receipt of delivery returned to
     sender, and such notice to be given at least six (6) months before the
     expiration of the initial term referred to in Article 18.1, or six (6)
     months before the expiration of any of the subsequent renewal periods
     referred to in this Article 18.3.

ARTICLE 19 - SALES MINIMA

19.1 The MASTER LICENSEE undertakes to sell in the TERRITORY taken as a whole
     quantities of LACOSTE WATCHES representing NET SALES of no less than :

                                        *

     There shall be no sales minimum for the first year of this MASTER AGREEMENT
     which shall run from January 1, 2007 to December 31, 2007.

*    CONFIDENTIAL PORTION OF THIS EXHIBIT OMITTED AND FILED SEPARATELY WITH THE
     SEC PURSUANT TO RULE 24b-2 OF THE 1934 ACT.

<PAGE>

                                      -67-

19.2 For the following periods, the LICENSOR and the MASTER LICENSEE shall agree
     on the new yearly minima to be reached no later than six (6) months before
     the end of the last period for which a yearly minimum has been fixed.
     Without prejudice to the right of both the LICENSOR and the MASTER LICENSEE
     to terminate this MASTER AGREEMENT as provided in Article 20.4 hereinafter,
     in case no new yearly minima can be agreed upon, the last yearly minimum
     shall be applied until an agreement is reached.

ARTICLE 20 - TERMINATION

20.1 This MASTER AGREEMENT may be terminated by either of the parties, in the
     event of a material breach of this MASTER AGREEMENT by the other, provided
     that it has given sixty (60) days written notice of such breach to the
     other party and that the other party has failed to cure such breach within
     such period or failed to take action within such period clearly sufficient
     to remedy said breach without prejudice of any compensation or damages
     whatsoever.

     The provisions of the hereinabove paragraph of this Article 20.1 shall not
     apply if the minima fixed by Article 19 hereinabove are not reached, which
     situation shall be ruled by the provisions of Article 20.4 hereinafter.

20.2 This MASTER AGREEMENT may be terminated at any time by either of the
     parties, upon notice, in the event that the other shall have defaulted
     under any substantial agreement with any material creditor, or (l) be
     dissolved; (2) apply for or consent to the appointment of a receiver,
     trustee or liquidator for its properties or assets; (3) admit in writing
     its inability to pay its debts as they mature; (4) make a general
     assignment for the benefit of creditors; (5) file a voluntary petition or
     be the subject of an involuntary petition in bankruptcy (which is not
     dismissed within sixty (60) days) or an answer seeking reorganization in
     arrangement with creditors, or take advantage of any bankruptcy,
     reorganization, insolvency or readjustment of debt law or statute, or file
     an answer admitting the material allegations of a petition filed against it
     in any proceedings under such a law or statute, or take any

<PAGE>

                                      -68-

     action for the purposes of effecting any of the foregoing; or (6) have any
     order, judgment or decree entered against it without the application,
     approval or consent of the concerned party, by any court of competent
     jurisdiction approving a petition seeking reorganization of its properties
     or assets or the appointment of a receiver, trustee or liquidator for it.

20.3 This MASTER AGREEMENT may be terminated by the LICENSOR, in the event that
     any royalties or other amounts due to the LICENSOR by the MASTER LICENSEE
     or any one of its SUB-LICENSEES or its DISTRIBUTORS have not been received
     within sixty (60) days after their due date, provided that it has given
     thirty (30) days written notice of such event to the MASTER LICENSEE and
     that the MASTER LICENSEE has failed to pay such amount within such thirty
     (30) day period without prejudice to any proceedings for forced collection
     and to damages which may be filed by the LICENSOR.

20.4 If the minimum provided for the TERRITORY taken as whole as set forth in
     Article 19.1 hereinabove has not been reached (whatever the reason may be)
     for any yearly period, or if the MASTER LICENSEE has elected, under the
     terms of Article 14.4 hereinabove, to limit its expenses made according to
     the terms of Article 14.3.5, then, within ninety (90) days after the end of
     the yearly period in which either such event occurs, this MASTER AGREEMENT
     may be terminated by the LICENSOR, provided that it has given six (6)
     months written notice of such event to the MASTER LICENSEE.

20.5 This MASTER AGREEMENT may be terminated at any time by the LICENSOR,
     subject to a six (6) months prior written notice, without any indemnity,
     damages, or compensation whatsoever to the MASTER LICENSEE or any of its
     SUB-LICENSEES or DISTRIBUTORS, in the event that any person or group, that,
     as of the date of this MASTER AGREEMENT, (i) directly or indirectly,
     beneficially or of record, owns shares or options or other rights to
     acquires shares representing in the aggregate more than twenty-five per
     cent (25%) of the total voting power of all classes of securities issued by
     the MASTER LICENSEE or any of its controlling entities or (ii) that
     directly or indirectly, whether through the ownership of securities, by
     contract or otherwise, has the right to appoint at least one-third of the
     members of the board of directors of the MASTER LICENSEE or any of its
     controlling entities, every such

<PAGE>

                                      -69-

     person or group for purposes of this Article 20.5 being hereafter referred
     to as a "CONTROL PERSON") ceases to qualify as a Control Person under this
     Article 20.5 (i) or (ii). For purposes of this Article 20.5 :(a) the term
     "group" means two or more persons who agree to act together to acquire,
     hold, vote or dispose of any equity securities of the MASTER LICENSEE or
     its controlling entities and (b) the term "any person or group" does not
     include an entity which, as of the date of this MASTER AGREEMENT, controls,
     is under common control with or is controlled by MASTER LICENSEE, or any
     entity controlled by any such entity.

20.6 It is expressly stipulated that the termination or the non-renewal of any
     of the SUPPLEMENTAL AGREEMENTS shall entail within the same period the
     termination or non-renewal of the corresponding SUB-LICENSE AGREEMENTS or
     DISTRIBUTION AGREEMENTS.

ARTICLE 21 - PROVISIONS AT TERMINATION OR NON-RENEWAL

21.1 At the DATE OF TERMINATION of this MASTER AGREEMENT whatever the origin
     (termination, non-renewal) and the reason, as well as in the case of a
     partial termination pursuant to the application of the dispositions of
     Article 20.4 hereinabove (but in such case, only for the sub-territory(ies)
     concerned) :

     21.1.1 all rights and licenses granted to the MASTER LICENSEE pursuant to
          this MASTER AGREEMENT shall terminate immediately and revert to the
          LICENSOR; and

     21.1.2 the ownership of all intellectual property rights which the MASTER
          LICENSEE may hold at that time solely in connection with the LACOSTE
          WATCHES, shall immediately be transferred free of charge to the
          LICENSOR; and

     21.1.3 the MASTER LICENSEE shall cease to trade as a "Lacoste" licensee on
          the DATE OF TERMINATION and to use the STYLING KNOW-HOW, the MARKETING
          AND MERCHANDISING KNOW-HOW and the PROMOTION AND ADVERTISING KNOW-HOW,
          and except as otherwise provided in Article 21.1.7 hereinafter the
          LICENSED TRADEMARKS and the MODELS, and shall not assist any third
          party to do so; and

<PAGE>

                                      -70-

     21.1.4 the MASTER LICENSEE shall proceed at its own expense with all
          actions necessary to cancel all administrative agreements or
          inscriptions it may have obtained; and

     21.1.5 the MASTER LICENSEE shall deliver free of charge to the LICENSOR or
          to any third party designated by the LICENSOR, all remaining
          advertising and promotional material, and in general all documents and
          items bearing or representing the LACOSTE TRADEMARKS (catalogues,
          technical documents, etc.) emanating from the LICENSOR; and

     21.1.6 the MASTER LICENSEE shall deliver free of charge to the LICENSOR or
          to any third party designated by the LICENSOR, all the molds, prints,
          computer bands or cards and, in general, all tools bearing,
          representing or used to replicate the LICENSED TRADEMARKS; and

     21.1.7 the LICENSOR shall have the right, at its sole option, either to
          repurchase or have any third party it may wish to appoint repurchase,
          at the MASTER LICENSEE's landed cost minus rebates taking into
          consideration its age, state and condition, all or part of the
          inventory of LACOSTE WATCHES which the MASTER LICENSEE may have on
          hand at the DATE OF TERMINATION. If less than all of MASTER LICENSEE's
          inventory of LACOSTE WATCHES is purchased, MASTER LICENSEE shall have
          the right to sell its remaining inventory for up to six (6) months
          thereafter, on the condition that such sales are exclusively made to
          the APPROVED WATCHES RETAILERS or the members of the "LACOSTE
          BOUTIQUES AND LACOSTE CORNERS" SELECTIVE DISTRIBUTION SYSTEM in
          quantities not exceeding those normally sold to said APPROVED WATCHES
          RETAILERS and members of the "LACOSTE BOUTIQUES AND LACOSTE CORNERS"
          SELECTIVE DISTRIBUTION SYSTEM during the previous year and provided
          the MASTER LICENSEE pays the LICENSOR the royalties stipulated in
          Articles 16 and 17 hereinabove.

          Unless prohibited by applicable law, e.g., in the United States of
          America, in no event, shall the MASTER LICENSEE apply, starting from
          the date of

<PAGE>

                                      -71-

          notification to the other party of the termination or non-renewal of
          this MASTER AGREEMENT, a price policy which could prejudice the
          LACOSTE TRADEMARKS IMAGE.

          At the end of such six (6) month period, the MASTER LICENSEE, unless
          otherwise agreed upon with the LICENSOR, shall destroy any remaining
          inventory of the LACOSTE WATCHES MASTER LICENSEE may have on hand at
          that time (excluding any such inventory in the stock of any retail
          stores owned by MASTER LICENSEE or any of its affiliates), without
          having any right to any indemnification from the LICENSOR.

21.2 Moreover, it is hereby agreed that, regardless of the duration of this
     MASTER AGREEMENT :

     21.2.1 the termination of this MASTER AGREEMENT shall automatically entail
          at the end of a six (6) month period, and

     21.2.2 the non-renewal of this MASTER AGREEMENT shall automatically entail
          immediately :

     at the LICENSOR's sole option, (i) the termination, or (ii) the assignment
     of the commercial agreements which the MASTER LICENSEE, its SUB-LICENSEES
     or its DISTRIBUTORS may have entered into with the APPROVED WATCHES
     RETAILERS to a new licensee for the LACOSTE WATCHES as soon as such new
     licensee will have been chosen and approved by the LICENSOR and/or to the
     LICENSOR. The MASTER LICENSEE, its SUB-LICENSEES and its DISTRIBUTORS shall
     include appropriate terms to this effect in the agreements they shall enter
     into with the APPROVED WATCHES RETAILERS. The MASTER LICENSEE agrees that
     the LICENSOR shall not bear nor share, either with the MASTER LICENSEE, or
     with its SUB-LICENSEES or DISTRIBUTORS any liability for any claim that the
     APPROVED WATCHES RETAILERS may present to the MASTER LICENSEE in view of
     the termination or the non-renewal of such commercial agreements, and the
     LICENSOR shall not be liable for any indemnities, damages or money
     whatsoever in this regard.

     The termination or non-renewal of this MASTER AGREEMENT shall also entail,
     at the LICENSOR's sole option, with the same timing as provided in Articles
     21.2.1 and 21.2.2

<PAGE>

                                      -72-

     hereinabove, (i) the termination, or (ii) the assignment to a new licensee
     for the LACOSTE WATCHES as soon as such new licensee will have been chosen
     and approved by the LICENSOR and/or to the LICENSOR, of the agreements
     entered into between the MASTER LICENSEE and the SUB-LICENSEES, the
     DISTRIBUTORS, the SUB-CONTRACTORS and the SUPPLIERS, provided that bona
     fide orders placed with them be honored by the party having issued such.
     The MASTER LICENSEE shall include appropriate terms to this effect in the
     agreements it shall enter into with the SUB-LICENSEES, the DISTRIBUTORS,
     the SUB-CONTRACTORS and the SUPPLIERS. The MASTER LICENSEE agrees that the
     LICENSOR shall not share with the MASTER LICENSEE any liability for any
     claim that the SUB-LICENSEES, the DISTRIBUTORS, the SUB-CONTRACTORS and the
     SUPPLIERS may present to the MASTER LICENSEE in view of the termination or
     the non-renewal of such agreements, and the LICENSOR shall not be liable
     for any indemnities, damages or money whatsoever in this regard.

21.3 In case of termination or non-renewal of this MASTER AGREEMENT, the MASTER
     LICENSEE undertakes to maintain the warranty provided by the terms of
     Article 7.1.5 hereinabove for a two (2) year period starting from the DATE
     OF TERMINATION, unless a new licensee for the LACOSTE WATCHES is chosen by
     the LICENSOR, in which case such new licensee shall assume the burden of
     such warranty.

     The MASTER LICENSEE shall keep the necessary inventory of parts so as to be
     able to maintain such warranty, and shall transfer at its cost price this
     inventory to the new licensee for the LACOSTE WATCHES of the LICENSOR.

21.4 The MASTER LICENSEE, given the specific conditions prevailing in the
     profession, shall not object in any way whatsoever, during the period of
     notice preceding the termination or non-renewal of this MASTER AGREEMENT,
     to any visits to its clients and taking of orders for the following season
     that may be carried out by the successor chosen by the LICENSOR.

21.5 The MASTER LICENSEE acknowledges and agrees that it is entering into this
     MASTER AGREEMENT on the express understanding that its receipt from sales
     of LACOSTE WATCHES under this MASTER AGREEMENT are intended to be
     sufficient to compensate it fully for all risks, costs and expenses
     incurred in connection with this MASTER

<PAGE>

                                      -73-

     AGREEMENT regardless of its duration, including, i.e., all costs and
     expenses incurred by the MASTER LICENSEE for its sales, marketing,
     merchandising, advertising and promotion efforts to create what is commonly
     known as "goodwill" for the LACOSTE TRADEMARKS and the MODELS.

21.6 Accordingly, upon termination or non-renewal in whole or in part of this
     MASTER AGREEMENT and regardless of its duration, for whatever reason
     (except by reason of termination by MASTER LICENSEE as the result of
     LICENSOR's material breach of this MASTER AGREEMENT), the MASTER LICENSEE
     shall have no right to, and shall not claim from the LICENSOR, any further
     payment, indemnity, damages or compensation whatsoever for the transfer of
     its ownership rights in the MODELS, for loss of goodwill or for any risks,
     costs or expenses incurred or developed by the MASTER LICENSEE during the
     term of this MASTER AGREEMENT or in connection with this MASTER AGREEMENT.

ARTICLE 22 - ASSIGNMENT

This MASTER AGREEMENT shall be binding upon and inure to the benefit of the
parties hereto and their respective authorized successors and assignees under
the provisions of this MASTER AGREEMENT.

It is expressly understood and agreed that this MASTER AGREEMENT or any interest
therein or rights or obligations thereunder shall not be in part or as a whole
directly or indirectly sold, assigned, pledged or otherwise encumbered or
transferred in any manner whatsoever (including without limitation by operation
of law or otherwise) by the MASTER LICENSEE without the prior written consent of
the LICENSOR.

The MASTER LICENSEE is also prohibited from assigning, selling, pledging or
otherwise encumbering to any third party in the same conditions as hereinabove
whether in part or as a whole any of the rights hereby granted to it, be it in a
given part of the TERRITORY save as expressly provided for in the present MASTER
AGREEMENT and, among other, under the provision of Articles 2.2, 2.3, 5.2 and
5.3 hereinabove, provided however, that the foregoing shall not apply to an
assignment by operation of law that does not result in a right on the part of
Licensor to terminate this MASTER AGREEMENT under Article 20.5 hereinabove.

<PAGE>

                                      -74-

ARTICLE 23 - FORCE MAJEURE

23.1 The parties shall not be liable for any damages or loss of any kind,
     arising from any delay or failure to perform (partially or totally) the
     obligations provided for in this MASTER AGREEMENT caused by an event of
     force majeure, without there being however fault or negligence of the
     parties which rely thereon. Moreover, a reason for exoneration of
     responsibility under this Article 23.1 excludes thereby the possible right
     of the other party to terminate or cancel this MASTER AGREEMENT due to the
     corresponding non-performance.

     For the purposes of this MASTER AGREEMENT, an event of force majeure is any
     event or cause which presents an unpredictable, irresistible character and
     is not within the will of the parties and which has for effect, directly or
     indirectly, to prevent or to render impossible the performance of an
     obligation set forth in this MASTER AGREEMENT (i.e., for the purposes of
     this MASTER AGREEMENT, and without limitation, any war, insurrection,
     strike, serious economic crisis, national restriction in transfer of
     royalties,...).

     After the occurrence of an event of force majeure, the party concerned
     shall promptly send notice by letter, telex or fax, informing the other
     party of all the details of such event.

     In all cases, the party who relies thereon shall take all useful and
     necessary measures to assure as rapidly as possible the normal resumption
     of the performance of this MASTER AGREEMENT.

23.2 If the circumstances go beyond six (6) months and once the continuation of
     the MASTER AGREEMENT appears to be possible upon adaptation, the parties
     shall co-ordinate to modify in good faith and in equity the necessary
     amendments.

23.3 If these negotiations do not produce results in a period of one (1) month,
     the MASTER AGREEMENT shall be readapted by a third party designated by the
     Centre international d'expertise de la Chambre de Commerce Internationale.

23.4 If the continuation of the MASTER AGREEMENT does not appear to be possible
     even upon adapting this MASTER AGREEMENT, the parties shall negotiate in
     good faith the

<PAGE>

                                      -75-

     provisions permitting the termination of this MASTER AGREEMENT.

ARTICLE 24 - MISCELLANEOUS

24.1 The MASTER LICENSEE and the LICENSOR shall, each at its own expense,
     execute any documents required to comply with the laws and requirements of
     the respective countries with respect to declaring, recording or otherwise
     rendering this MASTER AGREEMENT effective.

24.2 Any notices, demands, requests, consents, approvals or other
     communications, faxes or telexes, hand delivery notices, given or made, or
     required to be given or made to a party under this MASTER AGREEMENT shall
     be deemed effective on the earlier of the date of actual personal delivery
     or deposit, air mail, postage prepaid, in the registered mail of the
     country of origin, sent to :

     24.2.1 for the LICENSOR :

          Monsieur Michel LACOSTE, President Directeur General of LACOSTE, with
          a copy to SPL and LCA; and

     24.2.2 for the MASTER LICENSEE :

          Mr. Kurt BURKI, President of MGI LUXURY GROUP, S.A., with a copy to
          General Counsel, MOVADO GROUP, INC., 650 From Road, Paramus, NJ 07652,
          USA.

     to the addresses hereinabove set forth for such party. Any change of
     address shall be accomplished only by providing written notice to the other
     party to this MASTER AGREEMENT.

24.3 No rights of any party arising out of this MASTER AGREEMENT, or any
     provision hereof, shall be waived except in writing. Failure by either
     party to exercise or enforce, in any one or more instances, any of the
     terms or conditions of this MASTER AGREEMENT shall not constitute or be
     deemed a waiver of that party's right thereafter to enforce the terms and
     conditions of this MASTER AGREEMENT.

<PAGE>

                                      -76-

24.4 This MASTER AGREEMENT and the Schedules hereto constitute the entire
     understanding of the parties with respect to the subject matter hereof, and
     supersede all prior undertakings, both written and oral, between the
     LICENSOR and the MASTER LICENSEE with respect to the subject matter hereof.
     The rights, obligations, and interests of any party as they may pertain
     herein may not otherwise be changed, modified or amended except by the
     written agreement of the party to be charged.

24.5 If at any time any party hereto shall deem or be advised that any further
     assignments, licenses, assurances in law or other acts or instruments,
     including lawful oaths, are necessary or desirable to vest in it the rights
     provided for herein, the parties hereto agree to do all acts and execute
     all documents as may reasonably be necessary or proper for that purpose or
     otherwise to carry out the intent of this MASTER AGREEMENT.

24.6 The rights and obligations of the parties hereto under this MASTER
     AGREEMENT shall be subject to all applicable laws, orders, regulations,
     directions, restrictions and limitations of the Government having
     jurisdiction on the parties hereto.

24.7 In the event, however, that any such law, order, regulation, direction,
     restriction or limitation, or construction thereof, shall substantially
     alter the relationship between the parties under this MASTER AGREEMENT or
     the advantages derived from such relationship, or shall prevent the
     performance of any provision of this MASTER AGREEMENT, the adversely
     affected party may request the other party hereto to modify this MASTER
     AGREEMENT, and if within ninety (90) days subsequent to the making of such
     request, the parties hereto are unable to agree upon a mutually
     satisfactory modification hereof, then the adversely affected party may
     terminate this MASTER AGREEMENT by giving thirty (30) days notice not later
     than thirty (30) days following the end of such ninety (90) day period.

24.8 Notwithstanding, anything contained herein to the contrary no third party
     other than a party hereto is intended to or shall have any legal or
     equitable right, remedy or claim under this MASTER AGREEMENT or any part
     thereof, as against any party to this MASTER AGREEMENT, it being understood
     that the provisions of this MASTER AGREEMENT are for the sole benefit of
     the parties hereto

<PAGE>

                                      -77-

     and no other party shall be or be deemed a third party beneficiary of this
     MASTER AGREEMENT.

24.9 This MASTER AGREEMENT shall be binding upon the parties, their successors,
     and their assigns to the extent consistent with the provisions of Article
     22 hereinabove.

24.10 This MASTER AGREEMENT may be executed in one or more counterparts, each of
     which shall be deemed to be an original, but all of which together shall
     constitute one and the same instrument.

24.11 Paragraph headings of this MASTER AGREEMENT are for convenience only and
     shall not be construed as a part of this MASTER AGREEMENT or as a
     limitation on the scope of any terms or provisions of this MASTER
     AGREEMENT.

ARTICLE 25 - INDEMNIFICATION-INSURANCE

25.1 Indemnification

     25.1.1 The MASTER LICENSEE confirms that, on its behalf and on behalf of
          the SUB-LICENSEES, DISTRIBUTORS, SUB-CONTRACTORS and SUPPLIERS, it
          shall be solely responsible for the creation, development,
          manufacture, distribution, marketing, merchandising, advertising,
          promotion and sale of the LACOSTE WATCHES on or in connection with
          which the LICENSED TRADEMARKS and the MODELS are used and for the
          making of all representations, warranties and disclaimers used in the
          marketing and sale of the LACOSTE WATCHES.

     25.1.2 The MASTER LICENSEE shall accordingly both defend the LICENSOR
          against all claims, actions, suits or proceedings and indemnify and
          hold the LICENSOR harmless from any and all resulting losses,
          liabilities, costs (including any and all related legal fees and
          expenses incurred by the LICENSOR) and damages (including punitive and
          exemplary damages) arising out of or in any way connected with tort
          liability arising from its retail activity or with the creation,
          development, manufacture, distribution, marketing, merchandising,
          advertising, promotion and sale or defective performance of the
          LACOSTE

<PAGE>

                                      -78-

          WATCHES on or in connection with which the LICENSED TRADEMARKS and/or
          the MODELS are used.

          Such indemnification shall include, but not be limited to, losses,
          liabilities, costs and/or damages alleged to be based upon (i)
          intentional or negligent conduct, (ii) strict liability, (iii) breach
          of warranty, (iv) misrepresentation, (v) Intellectual Property rights
          infringement (excluding any claim based upon the LICENSED TRADEMARKS),
          (vi) breach of contract or (vii) any other theory of liability
          pursuant to which damages and/or injunctive relief is sought against
          the LICENSOR as the result of the creation, development, manufacture,
          distribution, marketing, merchandising, advertising, promotion and
          sale of the LACOSTE WATCHES.

     25.1.3 Each party shall give prompt written notice to the other of any such
          claim, action, suit or proceeding which may be brought against them.

25.2 Product Liability

     25.2.1 The MASTER LICENSEE shall have a general liability policy including
          products liability coverage, at its exclusive expense, on its behalf
          and name as additional insureds, when primary coverage is not
          available for SUB-LICENSEES, DISTRIBUTORS, SUB-CONTRACTORS and
          SUPPLIERS at its own expense, maintain in full force and effect for
          the full term of this MASTER AGREEMENT and for the two (2) year period
          following the DATE OF TERMINATION, general world-wide general
          liability including product liability and umbrella insurance policies
          (which shall explicitly cover the U.S.A. and Canada), including the
          LACOSTE WATCHES issued by a carrier with an AM Best rating of at least
          A-VII, and having coverage in a minimum amount of five millions US
          dollars (US$ 5'000'000) in the aggregate and standard terms for the US
          market (hereinafter the "INSURANCE POLICY").

     25.2.2 The INSURANCE POLICY shall be for the benefit of the MASTER LICENSEE
          itself, its SUB-LICENSEES, DISTRIBUTORS, SUB-CONTRACTORS and SUPPLIERS
          and of the APPROVED WATCHES RETAILERS, members of the

<PAGE>

                                      -79-

          "LACOSTE BOUTIQUES AND LACOSTE CORNERS" SELECTIVE DISTRIBUTION SYSTEM
          and of the LICENSOR itself. The INSURANCE POLICY shall provide
          coverage for bodily injury or property damage arising out of actual or
          alleged defects in goods or products manufactured, sold, handled,
          distributed or disposed of by MASTER LICENSEE occurring away from the
          MASTER LICENSEE'S premises and after physical possession has been
          relinquished to others.

     25.2.3 The INSURANCE POLICY shall provide for at least ten (10) working
          days prior written notice to the LICENSOR and the MASTER LICENSEE in
          the event of cancellation or substantial modification of the policy.

     25.2.4 The MASTER LICENSEE shall, once a year, supply a certificate of
          insurance as evidence to the LICENSOR of the maintenance of the
          INSURANCE POLICIES.

     25.2.5 The MASTER LICENSEE and the LICENSOR hereby agree that,
          notwithstanding the termination or non-renewal of this MASTER
          AGREEMENT, this Article 25 shall survive and continue in full force
          for two(2) years after the DATE OF TERMINATION.

ARTICLE 26 - CAPACITY OF THE PARTIES

26.1 It is expressly agreed that, within the framework of this MASTER AGREEMENT,
     the MASTER LICENSEE manufactures, purchases and resells the LACOSTE WATCHES
     for its own account and acts as an independent trader both with respect to
     the LICENSOR and with respect to the SUB-LICENSEES, the DISTRIBUTORS, the
     SUB-CONTRACTORS, the SUPPLIERS and its customers. Consequently, under no
     circumstances shall it enter into any agreement or take any action
     purporting to obligate the LICENSOR to third parties.

26.2 Nothing in this MASTER AGREEMENT shall be construed to render either party
     liable for any debts or obligations of the other party and the parties
     shall in no way be considered agents or representatives of each other.
     Neither party shall have the authority to act for or bind the other.

<PAGE>

                                      -80-

ARTICLE 27 - GOVERNING LAW

This MASTER AGREEMENT shall be governed by and construed in accordance with the
laws of France.

ARTICLE 28 - ARBITRATION

28.1 All disputes arising out of or in connection with this MASTER AGREEMENT
     shall finally be settled by arbitration under the Rules of Arbitration of
     the International Chamber of Commerce by one or more arbitrators appointed
     in accordance with said Rules.

28.2 Notwithstanding the provision of Article 28.1 hereinabove the parties may
     submit their dispute to the Pre-arbitral Referee Procedure of the
     International Chamber of Commerce and they will be bound by the provision
     of the said Procedure.

28.3 Any such arbitration proceedings shall take place in Paris (France), and
     shall be conducted in the English language.

28.4 Each party shall be bound by, and agrees to perform in accordance with, any
     award resulting from the arbitration proceedings (or pre-arbitral
     proceedings, as the case may be) described above. Such award, when issued,
     shall be final and non-appealable, and judgment upon the award may be
     entered in any Court having jurisdiction thereof.
<PAGE>

                                      -81-

IN WITNESS WHEREOF, the parties hereto have caused this MASTER AGREEMENT to be
executed by their duly authorized officers at Paris (France), on March 23, 2006,
at Geneva (Switzerland), on March 24, 2006, and at Bienne (Switzerland), on
March 27, 2006,

LACOSTE S.A.                                SPORLOISIRS S.A.

/s/ Michel Lacoste                          /s/ M. Lacoste   /s/ D. Vollenweider
------------------                          --------------   -------------------
Michel LACOSTE                              M. LACOSTE       D. VOLLENWEIDER

LACOSTE ALLIGATOR S.A.                      MGI LUXURY GROUP, S.A.

/s/ M. Lacoste       /s/ D. Vollenweider    /s/ K. Burki     /s/ R. Cote
------------------   --------------------   --------------   -------------------
M. LACOSTE           D. VOLLENWEIDER        K. BURKI         R. COTE
<PAGE>

                                   SCHEDULE I

                             THE LACOSTE TRADEMARKS

                                     [LOGO]

                                     [LOGO]

<PAGE>

                                   SCHEDULE II

                                  THE CROCODILE

                                     [LOGO]

<PAGE>

                                   SCHEDULE III

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

                         LIST OF THE LACOSTE TRADEMARKS

  LACOSTE TRADEMARKS OWNED BY LACOSTE SA (LACOSTE) IN CLASS 14 OF INTERNATIONAL
             CLASSIFICATION OF GOODS AND SERVICES LISTED BY COUNTRY

<TABLE>
<CAPTION>
                                          TRADEMARK APPLICATION       REGISTRATION NUMBER
                                            NUMBER AND DATE OF            AND DATE OF
 COUNTRY          LACOSTE TRADEMARK            APPLICATION               REGISTRATION             EXPIRING DATE
<S>               <C>                    <C>                          <C>                      <C>
                                                                          R437000
ALBANIA               LACOSTE Word                                        April 25 1998           April 25 2008

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                      [LOGO]                                              R437001                 April 25 2008

                                                                          R437000
ALGERIA               LACOSTE Word                                        April 25 1998           April 25 2008

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                      [LOGO]                                              R437001                 April 25 2008

                                                                          R437000
ARMENIA               LACOSTE Word                                        April 25 1998           April 25 2008

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                      [LOGO]                                              R437001                 April 25 2008

                                             808033                       808033
AUSTRALIA             [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                      [LOGO]                                              A439794                 Jan 29 2007

                                                                          R437000
AUSTRIA               LACOSTE Word                                        April 25 1998           April 25 2008
</TABLE>

<PAGE>

                                      -2-

<TABLE>
<S>               <C>                    <C>                          <C>                      <C>
                                             002979581                    002979581
AUSTRIA               [LOGO]                 Dec 17 2002                  May 26 2004             Dec 17 2012

                      [LOGO]                                              R437001                 April 25 2008

                                                                          R437000
AZERBAIDJAN           LACOSTE Word                                        April 25 1998           April 25 2008

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                      [LOGO]                                              R437001                 April 25 2008

BAHRAIN               [LOGO]                                              10847                   August 28 2006

                                             33734                        33734
BANGLADESH            [LOGO]                 Nov 3 1991                   Nov 3 1991              Nov 3 2013

                                                                          R437000
BELARUS               LACOSTE Word                                        April 25 1998           April 25 2008

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                      [LOGO]                                              R437001                 April 25 2008

                                                                          891.02
BELIZE                LACOSTE Word                                        August 29 2002          August 29 2012

                                             890.02                       890.02
                      [LOGO]                 August 29 2002               August 29 2002          August 29 2012

                                                                          R437000
BENELUX               D-LACOSTE                                           April 25 1998           April 25 2008

                      [LOGO]                                              R437001                 April 25 2008

BENIN                 [LOGO]                                              36042                    Feb 28 2016

                                                                          R437000
BHUTAN                LACOSTE Word                                        April 25 1998           April 25 2008
</TABLE>

<PAGE>

                                      -3-

<TABLE>
<S>               <C>                    <C>                          <C>                      <C>
                                             808033                       808033
BHUTAN                [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                      [LOGO]                 BT/M/97/0064                                         Jan 1 2007

                                                                          R437000
BOSNIA HERZEGOVINA    LACOSTE Word                                        April 25 1998           April 25 2008

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                      [LOGO]                                              R437001                 April 25 2008

BRUNEI DARUSSALAM     [LOGO]                                              16569                   Feb 8 2007

                                                                          R437000
BULGARIA              LACOSTE Word                                        April 25 1998           April 25 2008

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                      [LOGO]                                              R437001                 April 25 2008

BURKINA FASO          [LOGO]                                              36042                    Feb 28 2016

                                                                          790
CAMBODIA              LACOSTE Word           June 06 1992                 May 30 2002             June 06 2012

                                             4652                         3076
                      [LOGO]                 June 28 1994                 May 17 2004             June 28 2014

CAMEROON              [LOGO]                                              36042                    Feb 28 2016

                                             1259081                      1259081
CAYMAN ISLANDS        [LOGO]                 Jan 02 2003                  Jan 02 2003             Jan 28 2007

CENTRAL AFRICAN
REPUBLIC              [LOGO]                                              36042                    Feb 28 2016

</TABLE>

<PAGE>

                                      -4-

<TABLE>
<S>               <C>                    <C>                          <C>                      <C>
CHAD                  [LOGO]                                              36042                    Feb 28 2016

CHINA                 LACOSTE Word                                        R437000
                                                                          April 25 1998           April 25 2008

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                                             970000001
                      [LOGO]                 Jan 2 1997                   274888                  Jan 9 2007

                                             857417                       1410063
COMOROS               LACOSTE Word           May 22 1987                  May 22 1987             May 21 2007

                                             023199970                    023199970
                      [LOGO]                 Dec 18 2002                  Dec 18 2002             Dec 18 2012

                                             002979581                    002979581
                      [LOGO]                 Dec 17 2002                  May 26 2004             Dec 17 2012

                                             857418                       1410064
                      [LOGO]                 May 22 1987                  May 22 1987             May 21 2007

                                             835637                       1391442
                      [LOGO]                 Jan 28 1987                  Jan 28 1987             Jan 27 2007

CONGO                 [LOGO]                                              36042                    Feb 28 2016

                                                                          R437000
CROATIA               LACOSTE Word                                        April 25 1998           April 25 2008

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                      [LOGO]                                              R437001                 April 25 2008

                                             002979524
CYPRUS                LACOSTE Word           Dec 17 2002                                          Jan 1 2012

                                             002979581                    002979581
                      [LOGO]                 Dec 17 2002                  May 26 2004             Dec 17 2012

                      [LOGO]                                              26966                   Jan 29 2007

</TABLE>

<PAGE>

                                      -5-

<TABLE>
<S>               <C>                    <C>                          <C>                      <C>
                                                                          R437000
CZECH REPUBLIC        LACOSTE Word                                        April 25 1998           April 25 2008

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                                             002979581                    002979581
                      [LOGO]                 Dec 17 2002                  May 26 2004             Dec 17 2012

                      [LOGO]                                              R437001                 April 25 2008

                                             002979524
DENMARK               LACOSTE Word           Dec 17 2002                                          Jan 1 2012

                                             002979581                    002979581
                      [LOGO]                 Dec 17 2002                  May 26 2004             Dec 17 2012

                      [LOGO]                                              2996/1986               June 2 2009

                                                                          AJ VOL 106 F
                                             184/03/RADM                  degrees132 n degrees1
DJIBOUTI              LACOSTE Word           May 25 2003                  May 28 2003             May 25 2013

                                                                          AJ VOL 106 F
                                                                          degrees132 n
                                             185/03/RA                    degrees1596
                      [LOGO]                 May 25 2003                  May 28 2003             May 25 2013

                                                                          R437000
EGYPT                 LACOSTE Word                                        April 25 1998           April 25 2008

                      [LOGO]                 808033                       808033
                                             May 6 2003                   May 6 2003              May 6 2013

                      [LOGO]                                              R437001                 April 25 2008

EQUATORIAL GUINEA     [LOGO]                                              36042                    Feb 28 2016

                                                                          15886
ESTONIA               LACOSTE Word                                        May 19 2005             April 25 2008

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                                             002979581                    002979581
                      [LOGO]                 Dec 17 2002                  May 26 2004             Dec 17 2012

</TABLE>

<PAGE>

                                      -6-

<TABLE>
<S>               <C>                    <C>                          <C>                      <C>
                                                                          15721
ESTONIA               [LOGO]                 Feb 10 2005                  May 19 2005             May 19 2015

                                                                          30931
FIJI                  [LOGO]                                              Dec 9 2000              Dec 9 2014

                                             002979524
FINLAND               LACOSTE Word           Dec 17 2002                                          Jan 1 2012

                                             002979581                    002979581
                      [LOGO]                 Dec 17 2002                  May 26 2004             Dec 17 2012

                      [LOGO]                                              99546                   Sep 21 2007

                                             857417                       1410063
FRANCE                LACOSTE Word           May 22 1987                  May 22 1987             May 21 2007

                                             023199970                    023199970
                      [LOGO]                 Dec 18 2002                  Dec 18 2002             Dec 18 2012

                                             002979581                    002979581
                      [LOGO]                 Dec 17 2002                  May 26 2004             Dec 17 2012

                                             857418                       1410064
                      [LOGO]                 May 22 1987                  May 22 1987             May 21 2007

                                             835637                       1391442
                      [LOGO]                 Jan 28 1987                  Jan 28 1987             Jan 27 2007

GABON                 [LOGO]                                              36042                    Feb 28 2016

                                                                          R437000
GEORGIA               LACOSTE Word                                        April 25 1998           April 25 2008

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                                                                          454
                      [LOGO]                 Jan 13 2005                  Jan 13 2005             Jan 13 2015

                                                                          R437000
GERMANY               LACOSTE Word                                        April 25 1998           April 25 2008

                                             002979581                    002979581
                      [LOGO]                 Dec 17 2002                  May 26 2004             Dec 17 2012

</TABLE>

<PAGE>

                                      -7-

<TABLE>
<S>               <C>                    <C>                          <C>                      <C>
GERMANY               [LOGO]                                              R437001                 April 25 2008

GIBRALTAR             [LOGO]                                              5927                    Jan 28 2007

                                             002979524
GREECE                LACOSTE Word           Dec 17 2002                                          Jan 1 2012

                                             002979581                    002979581
                      [LOGO]                 Dec 17 2002                  May 26 2004             Dec 17 2012

                                                                          82293
                      [LOGO]                 April 8 2006                 April 8 2006            April 8 2016

GUERNSEY              [LOGO]                                              1259081                 Jan 28 2007

GUINEA                [LOGO]                                              36042                    Feb 28 2016

GUINEA-BISSAU         [LOGO]                                              36042                    Feb 28 2016

                                             19912443                     19912443
HONG KONG             [LOGO]                 Nov 3 1986                   Nov 3 1986              Nov 3 2007

                                                                          R437000
HUNGARY               LACOSTE Word                                        April 25 1998           April 25 2008

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                                             002979581                    002979581
                      [LOGO]                 Dec 17 2002                  May 26 2004             Dec 17 2012

                      [LOGO]                                              R437001                 April 25 2008

                                             808033                       808033
ICELAND               [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                                                                          231/1992
                      [LOGO]                                              Feb 20 2002             Feb 20 2012

</TABLE>

<PAGE>

                                      -8-

<TABLE>
<S>               <C>                    <C>                          <C>                      <C>

                                             1373629
INDIA                 LACOSTE Word           July 25 2005                                         Jan 1 2005

                                                                          449343
                      [LOGO]                                              Feb 6 2000              Feb 6 2007

                                                                          366061                  Oct 6 2005
INDONESIA             LACOSTE Word                                        August 30 1996          Renewal pending

                                                                                                  Oct 6 2005
                      [LOGO]                 March 24 1996                366062                  Renewal pending

                                                                          68062
IRAN                  [LOGO]                                              Nov 17 2001             Nov 17 2011

                                             002979524
IRELAND               LACOSTE Word           Dec 17 2002                                          Jan 1 2012

                      [LOGO]                 002979581                    002979581
                                             Dec 17 2002                  May 26 2004             Dec 17 2012

                      [LOGO]                                              119597                  Jan 27 2007

ISRAEL                [LOGO]                                              62704                   Feb 4 2007

                                                                          R437000
ITALY                 LACOSTE Word                                        April 25 1998           April 25 2008

                      [LOGO]                 002979581                    002979581
                                             Dec 17 2002                  May 26 2004             Dec 17 2012

                      [LOGO]                                              R437001                 April 25 2008

IVORY COAST           [LOGO]                                              36042                   Feb 28 2016

                                                                          R437000
JAPAN                 LACOSTE Word                                        April 25 1998           April 25 2008

                      [LOGO]                 808033                       808033
                                             May 6 2003                   May 6 2003              May 6 2013

                                                                          1624795
                      [LOGO]                                              Oct 27 2003             Oct 27 2013

</Table>

<PAGE>

                                       -9-

<TABLE>
<S>               <C>                    <C>                          <C>                      <C>

                                             002979524
JERSEY                LACOSTE Word           Dec 17 2002                                          Jan 1 2012

                                             002979581                    002979581
                      [LOGO]                 Dec 17 2002                  May 26 2004             Dec 17 2012

                      [LOGO]                                              5486                    Jan 28 2007

JORDAN                [LOGO]                                              23824                   March 22 2007

                                                                          R437000
KAZAKHSTAN            LACOSTE Word                                        April 25 1998           April 25 2008

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                      [LOGO]                                              R437001                 April 25 2008

                                                                          R437000
KENYA                 LACOSTE Word                                        April 25 1998           April 25 2008

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                                                                          39379
                      [LOGO]                                              Dec 4 1998              Dec 3 2012

                      [LOGO]                                              R437001                 April 25 2008

                                                                          R437000
KOREA (NORTH)         LACOSTE Word                                        April 25 1998           April 25 2008

                                             808033                       808033
                      [LOGO}                 May 6 2003                   May 6 2003              May 6 2013

                      [LOGO]                                              R437001                 April 25 2008

                                                                          R437000
KOREA (SOUTH)         LACOSTE Word                                        April 25 1998           April 25 2008

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013
</Table>

<PAGE>

                                      -10-

<TABLE>
<S>                 <C>                     <C>                         <C>                     <C>

                                             1997-664
KOREA (SOUTH)         [LOGO]                 Jan 22 1997                  140146                  April 21 2007

                                             2000-8290                    217935
                      [LOGO]                 Sept 26 2000                 Nov 25 2000             August 1 2011

                                                                          18010
KUWAIT                [LOGO]                 July 19 1996                 July 19 1996            July 18 2006

                                                                          R437000
KYRGYZ REPUBLIC       LACOSTE Word                                        April 25 1998           April 25 2008

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                      [LOGO]                                              R437001                 April 25 2008

                                             9054                         240
LAOS                  LACOSTE Word           Jan 15 2002                  Jan 19 2002             Jan 18 2012

                                             13873
                      [LOGO]                 Dec 28 2005                                           Feb 28 2016

                                                                          2837
                      [LOGO]                 July 1 2004                  July 1 2004             July 1 2014

                                                                          R437000
LATVIA                LACOSTE Word                                        April 25 1998           April 25 2008

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                                             002979581                    002979581
                      [LOGO]                 Dec 17 2002                  May 26 2004             Dec 17 2012

                                             M-92-2876                    M10489
                      [LOGO]                 Dec 14 1992                  Dec 14 1992             Dec 14 2012

                                                                          86228
LEBANON               [LOGO]                 96010771921                  Feb 11 2001             Feb 11 2016

                                                                          R437000
LESOTHO               LACOSTE Word                                        April 25 1998           April 25 2008

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013
</TABLE>

<PAGE>

                                      -11-

<TABLE>
<S>                 <C>                     <C>                         <C>                     <C>

LIBERIA               LACOSTE Word                                        R437000
                                                                          April 25 1998           April 25 2008

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                      [LOGO]                                              R437001                 April 25 2008

LIBYAN ARAB
JAMAHIRIYA            [LOGO]                  Pending

                                                                          R437000
LIECHTENSTEIN         LACOSTE Word                                        April 25 1998           April 25 2008

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                      [LOGO]                                              R437001                 April 25 2008

                                                                          R437000
LITHUANIA             LACOSTE Word                                        April 25 1998           April 25 2008

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                                             RL/3849                      8192
                      [LOGO]                 Feb 4 1993                   July 12 1995            Feb 4 2013

                                             002979581                    002979581
                      [LOGO]                 Dec 17 2002                  May 26 2004             Dec 17 2012

                                             11288-M                      11288-M
MACAO                 [LOGO]                 Nov 27 1991                  August 10 2003          August 10 2010

                                                                          R437000
MACEDONIA             LACOSTE Word                                        April 25 1998           April 25 2008

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                      [LOGO]                                              R437001                 April 25 2008

                                             C. Notive                    C. Notive
MALDIVES              LACOSTE Word           Dec 31 2003                  Dec 31 2003             Dec 31 2006
</TABLE>

<PAGE>

                                      -12-

<TABLE>
<S>                 <C>                     <C>                         <C>                     <C>

                                             C. Notive                    C. Notive
MALDIVES              [LOGO]                 Dec 31 2003                  Dec 31 2003             Dec 31 2006

                                             990376                       03569
MADAGASCAR            [LOGO]                 Sept 29 1999                 April 13 2001           Sept 28 2009

MALAYSIA              [LOGO]                                              86/00637                Feb 19 2007

MALI                  [LOGO]                                              36042                   Feb 28 2016

                                             002979524
MALTA                 LACOSTE Word           Dec 17 2002                                          Jan 1 2012

                                             002979581                    002979581
                      [LOGO]                 Dec 17 2002                  May 26 2004             Dec 17 2012

                                                                          17230
                      [LOGO]                                              April 14 2000           April 14 2014

MAURITANIA            [LOGO]                                              36042                    Feb 28 2016

MAURITIUS             [LOGO]                                              A/27F56N110             June 6 2007

                                                                          R437000
MOLDOVA               LACOSTE Word                                        April 25 1998           April 25 2008

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                      [LOGO]                                              R437001                 April 25 2008

                                                                          R437000
MONACO                LACOSTE Word                                        April 25 1998           April 25 2008

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                      [LOGO]                                              R437001                 April 25 2008
</TABLE>
<PAGE>

                                      -13-

<TABLE>
<S>                 <C>                     <C>                         <C>                     <C>
                                             808033                       808033
MONGOLIA              [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                      [LOGO]                                              R437001                 April 25 2008

                                                                          R437000
MOROCCO               LACOSTE Word                                        April 25 1998           April 25 2008

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                      [LOGO]                                              R437001                 April 25 2008

                                                                          R437000
MOZAMBIQUE            LACOSTE Word                                        April 25 1998           April 25 2008

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                                             2560/99                      2560/99
                      [LOGO]                 Nov 12 1999                  Oct 9 2002              Nov 12 2009

                      [LOGO]                                              R437001                 April 25 2008

                                                                          10012/2005
MYANMAR               LACOSTE Word                                        Dec 26 2005             Dec 26 2008

                                                                          10013/2005
                      [LOGO]                                              Dec 26 2005             Dec 26 2008

                                                                          1242/2001               March 20 2004
                      [LOGO]                                              Mars 20 2001            Renewal pending

                                                                                                  Jan 27 2006
NAMIBIA               [LOGO]                                              86/0061                 Renewal pending

NEW ZEALAND           [LOGO]                 Jan 29 1993                  B163449                 Jan 28 2007

NIGER                 [LOGO]                                              36042                    Feb 28 2016
</TABLE>

<PAGE>

                                      -14-

<TABLE>
<S>                 <C>                     <C>                         <C>                     <C>

                                             48076
NIGERIA               [LOGO]                 Jan 31 1986                                          Janv 1 2007

                                             808033                       808033
NORWAY                [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                      [LOGO]                                              127464                  Dec 18 2006

                                             15040                        15040
OMAN                  [LOGO]                 Jan 12 1997                  March 3 2002            Jan 12 2007

PAKISTAN              [LOGO]                                              89158                   Feb 2 2008

                                                                          0034012
PHILIPPINES           LACOSTE Word           Jan 27 2005                  Jan 31 2005             Jan 31 2015

                                             43242                        64239
                      [LOGO]                 Nov 21 1980                  April 2 1997            April 2 2017

                                             002979524
POLAND                LACOSTE Word           Dec 17 2002                                          Jan 1 2012

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                                             002979581                    002979581
                      [LOGO]                 Dec 17 2002                  May 26 2004             Dec 17 2012

                                                                          91435
                      [LOGO]                 March 30 2004                May 31 2004             May 31 2014

                                                                          R437000
PORTUGAL              LACOSTE Word                                        April 25 1998           April 25 2008

                                             002979581                    002979581
                      [LOGO]                 Dec 17 2002                  May 26 2004             Dec 17 2012

                      [LOGO]                                              R437001                 April 25 2008

                                                                          5298
QATAR                 [LOGO]                 Feb 12 2006                  Feb 12 2006             Feb 12 2016
</TABLE>

<PAGE>

                                      -15-

<TABLE>
<S>                 <C>                     <C>                         <C>                     <C>

                                                                          R437000
ROMANIA               LACOSTE Word                                        April 25 1998           April 25 2008

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                      [LOGO]                                              R437001                 April 25 2008

                                                                          R437000
RUSSIA                LACOSTE Word                                        April 25 1998           April 25 2008

                      [LOGO]                 808033                       808033
                                             May 6 2003                   May 6 2003              May 6 2013

                      [LOGO]                                              R437001                 April 25 2008

                                                                          R437000
SAN MARINO            LACOSTE Word                                        April 25 1998           April 25 2008

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                      [LOGO]                                              R437001                 April 25 2008

                                             15095                        259/51
SAUDI ARABIA          [LOGO]                 Nov 25 1991                  June 1 1992             April 14 2011

SENEGAL               [LOGO]                                              36042                    Feb 28 2016

                                                                          R437000
SERBIA MONTENEGRO     LACOSTE Word                                        April 25 1998           April 25 2008

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                      [LOGO]                                              R437001                 April 25 2008

SEYCHELLES            [LOGO]                                              2649                    Sep 5 2007

                                                                          R437000
SIERRA LEONE          LACOSTE Word                                        April 25 1998           April 25 2008
</TABLE>

<PAGE>

                                      -16-

<TABLE>
<S>                 <C>                     <C>                         <C>                     <C>

                                             808033                       808033
SIERRA LEONE          [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                                                                          R437000
SINGAPORE             LACOSTE Word                                        April 25 1998           April 25 2008

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                                             S/524/86                     T86/00524H
                      [LOGO]                 Feb 3 2003                   Feb 3 2003              Feb 3 2013

                                                                          R437000
SLOVAKIA              LACOSTE Word                                        April 25 1998           April 25 2008

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                                             002979581                    002979581
                      [LOGO]                 Dec 17 2002                  May 26 2004             Dec 17 2012

                      [LOGO]                                              R437001                 April 25 2008

                                                                          R437000
SLOVENIA              LACOSTE Word                                        April 25 1998           April 25 2008

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                                             002979581                    002979581
                      [LOGO]                 Dec 17 2002                  May 26 2004             Dec 17 2012

                      [LOGO]                                              R437001                 April 25 2008

                                                                          86/0489
SOUTH AFRICA          [LOGO]                 Jan 27 2006                  Jan 27 2006             Jan 27 2016

                                                                          R437000
SPAIN                 LACOSTE Word                                        April 25 1998           April 25 2008

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                                             002979581                    002979581
                      [LOGO]                 Dec 17 2002                  May 26 2004             Dec 17 2012
</TABLE>

<PAGE>

                                      -17-

<TABLE>
<S>                 <C>                     <C>                         <C>                     <C>

SPAIN                 [LOGO]                                              R437001                 April 25 2008

                                                                          51013
SRI LANKA             [LOGO]                 March 19 2006                March 19 2006           March 19 2016

                                                                          R437000
SUDAN                 D-LACOSTE                                           April 25 1998           April 25 2008

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                      [LOGO]                                              R437001                 April 25 2008

                                             808033                       808033
SWAZILAND             [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                      [LOGO]                                              R437001                 April 25 2008

                                             002979524
SWEDEN                LACOSTE Word           Dec 17 2002                                          Jan 1 2012

                                             002979581                    002979581
                      [LOGO]                 Dec 17 2002                  May 26 2004             Dec 17 2012

                      [LOGO]                                              206394                  July 3 2007

                                                                          R437000
SWITZERLAND           LACOSTE Word                                        April 25 1998           April 25 2008

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                      [LOGO]                                              R437001                 April 25 2008

                                             101570
SYRIA                 [LOGO]                 July 14 1997                 18359                   Oct 13 2007

TAIWAN                LACOSTE Word           June 18 1996                 341287                  March 30 2006

                                                                                                  March 30 2006
                      [LOGO]                                              341288                  Renewal pending
</TABLE>
<PAGE>
                                      -18-

<Table>

<S>                  <C>                    <C>                          <C>                     <C>
                                                                          R437000
TADJIKISTAN           D-LACOSTE                                           April 25 1998           April 25 2008

                      [LOGO]                 808033                       808033
                                             May 6 2003                   May 6 2003              May 6 2013

                      [LOGO]                                              R437001                 April 25 2008

                                                                          42027
THAILAND              LACOSTE Word           Jan 17 2006                  Feb 19 2006             Feb 19 2016

                                                                          42028
                      [LOGO]                 Jan 17 2006                  Feb 19 2006             Feb 19 2016

TOGO                  [LOGO]                                              36042

TUNISIA               LACOSTE Word           EE98.0608                    EE98.0608               April 25 2013

                      [LOGO]                 EE98.0607                    EE98.0607               April 25 2013

                                                                          R437000
TURKEY                LACOSTE Word                                        April 25 1998           April 25 2008

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                                                                          132198
                      [LOGO]                                              Feb 10 1992             Feb 10 2012

                                                                          3544
TURKIS FS CUPRUS      [LOGO]                                              June 3 2001             June 3 2015

                                                                          R437000
TURKMENISTAN          LACOSTE Word                                        April 25 1998           April 25 2008

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                      [LOGO]                                              R437001                 April 25 2008

                                                                          R437000
UKRAINE               LACOSTE Word                                        April 25 1998           April 25 2008

</Table>

<PAGE>

                                      -19-

<Table>

<S>                  <C>                    <C>                          <C>                     <C>
                                             808033                       808033
UKRAINE               [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                      [LOGO]                                              R437001                 April 25 2008

                                                                          1225
UNITED ARAB EMIRATES  [LOGO]                 July 20 1993                 July 20 1993            Janv 1 2013

                                             002979524
UNITED KINGDOM        LACOSTE Word           Dec 17 2002                                          Jan 1 2012

                                             002979581                    002979581
                      [LOGO]                 Dec 17 2002                  May 26 2004             Dec 17 2012

                      [LOGO]                                              1259081                 Jan 28 2007

                                                                          R437000
UZBEKISTAN            LACOSTE Word                                        April 25 1998           April 25 2008

                      [LOGO]                 808033                       808033
                                             May 6 2003                   May 6 2003              May 6 2013

                      [LOGO]                                              R437001                 April 25 2008

                                                                          R437000
VATICAN CITY          LACOSTE Word                                        April 25 1998           April 25 2008

                                             808033                       808033
VIETNAM               [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                      [LOGO]                                              R437001                 April 25 2008

                                             Trademark Application        Registration number
                                             number and Date of           and Date of
COUNTRY               Lacoste Trademark      application                  registration            Expiring Date

                                                                          R437000
ZAMBIE                LACOSTE Word                                        April 25 1998           April 25 2008

                                             808033                       808033
                      [LOGO]                 May 6 2003                   May 6 2003              May 6 2013

                                                                          1051/91
ZIMBABWE              [LOGO]                                              Nov 6 2001              Nov 6 2011
</Table>

<PAGE>

                                  -20-

  LACOSTE TRADEMARKS OWNED BY SPORLOISIRS SA (SPL) IN CLASS 14 OF INTERNATIONAL
             CLASSIFICATION OF GOODS AND SERVICES LISTED BY COUNTRY

<Table>
<Caption>

                                                                             REGISTRATION NUMBER
                       LACOSTE          TRADEMARK APPLICATION NUMBER AND     AND DATE OF
COUNTRY                TRADEMARK        DATE OF APPLICATION                  REGISTRATION            EXPIRING DATE

<S>                   <C>              <C>                                  <C>                     <C>
                                                                             12670
ARUBA                  LACOSTE Word     Nov 17 2005                          Jan 1 2006              Dec 31 2015

                       [LOGO]           70831                                12693                   Dec 12 2015

                                                                             2320
ANGUILLA               [LOGO]           March 25 2006                        August 25 2006          March 25 2016

                                                                             R437000C
ANTIGUA & BARBUDA      LACOSTE Word                                          April 25 1998           April 25 2008

                                                                             3362
                       [LOGO]           May 19 1992                          May 19 1992             May 19 2006

                                        8080033                              8080033C
                       [LOGO]           May 6 2003                           May 6 2003              May 6 2013

                                        2393047                              1907177
ARGENTINA              LACOSTE Word     Oct 3 2002                           Dec 10 2002             Dec 10 2012

                                        2435642                              1945717
                       [LOGO]           June 5 2003                          August 14 2003          August 14 2013

                       [LOGO]           4741                                 307841                  Sept 18 2010

                                                                             12963
ARUBA                  [LOGO]           Oct 19 1995                          Jan 1 2006              Dec 31 2015

                                        15121                                15121
BAHAMAS                [LOGO]           Feb 7 2006                           Feb 7 2006              Feb 7 2020

BERMUDES               [LOGO]           Jan 13 1999                          21676                   March 12 2013

</Table>

<PAGE>

                                      -21-

<Table>

<S>                    <C>              <C>                                  <C>                     <C>
                                        2380                                 75080-C
BOLIVIA                [LOGO]           Oct 30 1995                          Sept 29 1999            Sept 29 2009

                                        030274                               200024680
BRAZIL                 [LOGO]           July 19 2001                         Oct 13 2001             Oct 13 2011

BRITISH VIRGIN ISLANDS [LOGO]           June 3 1992                          2535                    June 3 2006

                                        573527                               672794
CHILE                  [LOGO]           July 9 2002                          Sept 24 2002            Sept 24 2012

                                        92353095                             165122
COLOMBIA               [LOGO]           June 18 2004                         August 26 2004          August 26 2014

                                                                             85262
COSTA RICA             [LOGO]                                                Dec 20 1993             Dec 20 2013

                                        41/92
DOMINICA               [LOGO]           August 31 1992                       43/92                   August 31 2006

                                        39936                                2089
ECUADOR                [LOGO]           March 7 2003                         March 16 2003           March 16 2013

                                                                             40 B, 31
EL SALVADOR            [LOGO]           May 11 1992                          May 6 1995              May 6 2006

                                        000858-92
GUATEMALA              [LOGO]           Feb 11 1992                          69564                   Oct 14 2003

                                                                             56657
HONDURAS               [LOGO]           April 10 1992                        Dec 18 1992             Dec 18 2012

                                                                             319541
MEXICO                 LACOSTE Word     March 13 2006                        March 13 2006           March 13 2006

                                                                             318885
                       [LOGO]           March 13 2006                        March 13 2006           March 13 2016

                                        1559
MONTSERRAT             [LOGO]           Feb 26 1992                          1559                    Feb 26 2006

                                        D-1028                               01123
NETHERLANDS ANTILLES   LACOSTE Word     April 17 2001                        April 17 2001           Oct 19 2019

</Table>

<PAGE>

                                      -22-

<Table>

<S>                   <C>              <C>                                  <C>                     <C>
                                        D-1027                               01122
NETHERLANDS ANTILLES   [LOGO]           April 17 2001                        April 17 2001           Sept 19 2019

                                        1920-024860                          24860
NICARAGUA              [LOGO]           Nov 27 2003                          Jan 21 1994             Jan 20 2004

                                                                             29558
PANAMA                 LACOSTE Word                                          August 6 2002           August 6 2012

                                                                             29561
                       [LOGO]                                                August 6 2002           August 6 2012

                                        1379                                 211172
PARAGUAY               LACOSTE Word     Feb 3 1993                           Feb 11 1999             Feb 11 2009

                                        1378                                 211171
                       [LOGO]           Feb 3 1993                           Feb 11 1999             Feb 11 2009

                                        20332                                207248
                       [LOGO]           Oct 8 1997                           Sept 25 1998            Sept 25 2008

                                        195173                               96970
PERU                   [LOGO]           Dec 20 1991                          April 30 1992           April 30 2012

                                                                             3660
ST KITTS AND NEVIS     [LOGO]                                                March 16 1992           March 16 2006

                                                                             51/1992
ST LUCIA               [LOGO]           March 16 1992                        July 27 1992            March 16 2006

ST VINCENT AND                          268/2005
THE GRENADINES         LACOSTE Word     Nov 29 2005                          Pending

                                        269/2005
                       [LOGO]           Nov 29 2005                          Pending

                                                                             349014
SWITZERLAND            LACOSTE Word                                          March 11 2006           March 11 2016

                                                                             307841
                       [LOGO]                                                Sept 18 2000            Sept 18 2010

                       [LOGO]           4739                                 349013                  March 11 2016

</Table>

<PAGE>
                                      -23-

<TABLE>
<S>                  <C>                    <C>                          <C>                     <C>
TURKS & CAICOS         [LOGO]           11313                                11313                   Jan 4 2010
ISLANDS

                                        335442                               242090
URUGUAY                LACOSTE Word     Nov 20 2001                          Nov 20 2001             Nov 20 2011

                                        250718                               340798
                       [LOGO]           Jan 13 1992                          May 8 1992              May 8 2012

                                        26694                                F-172645
VENEZUELA              [LOGO]           Dec 19 1991                          Nov 1 1994              Nov 1 2014
</TABLE>

<PAGE>
                                      -24-

<TABLE>
<CAPTION>
                         LACOSTE TRADEMARKS OWNED BY LACOSTE ALIGATOR SA (LCA) IN CLASS 14 OF INTERNATIONAL
                                       CLASSIFICATION OF GOODS AND SERVICES LISTED BY COUNTRY

<S>                 <C>              <C>                                    <C>                       <C>

                    LACOSTE          TRADEMARK APPLICATION NUMBER           REGISTRATION
COUNTRY             TRADEMARK        AND DATE OF APPLICATION                NUMBER                    EXPIRING DATE

                                     3075
BARBADOS            [LOGO]           Jan 1 1996                             81/10680                  Jan 1 2010

                                     696568
CANADA              [LOGO]           Jan 9 1992                             470734                    Feb 11 2012

                                     696581
                    Lacoste Word     Jan 9 1992                             470735                    Feb 11 2012

                                     1839
CUBA                [LOGO]           Nov 13 1996                            125915                    Nov 18 2006

                                     99129732
DOMINICAN REPUBLIC  [LOGO]           Feb 1 1996                             82922                     April 15 2016

                                     1513-Q
HAITI               [LOGO]           Dec 13 1995                            199 REG 114               Jan 20 2008

                                     14/306
JAMAICA             [LOGO]           Dec 27 1995                            28469                     Dec 27 2012

                                     29944
TRINIDA & TOBAGO    [LOGO]           Jan 11 1996                            29944                     Jan 11 2006

                                     74/238224
USA                 [LOGO]           Jan 16 1992                            2247880                   May 25 2009

                                     74/238223
                    Lacoste Word     Jan 16 1992                            1947111                   Jan 9 2016
</TABLE>
<PAGE>
                                   SCHEDULE IV

                IV.A - COUNTRIES IN WHICH THE LACOSTE TRADEMARKS
                                BELONG TO LACOSTE

  Afghanistan, Albania, Algeria, Andorra, Angola, Armenia, Australia, Austria,
   Azerbaijan, Bahrain, Bangladesh, Belarus, Belgium, Benin, Bhutan, Bosnia &
   Herzegovina, Botswana, Brunei Darussalam, Bulgaria, Burkina Faso, Burundi,
Cambodia, Cameroon, Cape Verde, Central African Republic, Chad, China, Comoros,
 Congo, Croatia, Cyprus, Czech Republic, Democratic People's Republic of Korea,
    Denmark, Djibouti, Egypt, Equatorial Guinea, Eritrea, Estonia, Ethiopia,
 Federated States of Micronesia, Fiji, Finland, France, Gabon, Gambia, Georgia,
     Germany, Ghana, Greece, Guinea, Guinea-Bissau, Hungary, Iceland, India,
   Indonesia, Iran, Iraq, Ireland, Israel, Italy, Ivory Coast, Japan, Jordan,
  Kazakhstan, Kenya, Kiribati, Kuwait, Kyrgyz Republic, Lao People's Democratic
  Republic, Latvia, Lebanon, Lesotho, Liberia, Libya, Liechtenstein, Lithuania,
    Luxembourg, Madagascar, Malawi, Malaysia, Maldives, Mali, Malta, Marshall
Islands, Mauritania, Mauritius, Monaco, Mongolia, Morocco, Mozambique, Myanmar,
    Namibia, Nauru, Nepal, Netherlands, New Zealand, Niger, Nigeria, Northern
 Mariana Islands, Norway, Oman, Pakistan, Palau, Papua New Guinea, Philippines,
    Poland, Portugal, Qatar, Republic of Korea, Republic of Moldova, Romania,
  Russian Federation, Rwanda, Solomon Islands, Samoa, Sao Tome & Principe, San
   Marino, Saudi Arabia, Senegal, Seychelles, Sierra Leone, Singapore, Slovak
 Republic, Slovenia, Somalia, South Africa, Spain, Sri Lanka, Sudan, Swaziland,
 Sweden, Switzerland, Syria, Tajikistan, Thailand, The former Yugoslav Republic
    of Macedonia, Togo, Tonga, Tunisia, Turkey, Turkmenistan, Tuvalu, Uganda,
   Ukraine, United Arab Emirates, United Kingdom, United Republic of Tanzania,
 Uzbekistan, Vanuatu, Vatican City, Viet Nam, Yemen, Yugoslavia, Zaire, Zambia,
                                    Zimbabwe.

                IV.B - COUNTRIES IN WHICH THE LACOSTE TRADEMARKS
                                  BELONG TO SPL

Antigua & Barbuda, Argentina, Bahamas, Belize, Bolivia, Brazil, Chile, Colombia,
     Costa Rica, Dominica, Ecuador, El Salvador, Grenada, Guatemala, Guyana,
Honduras, Nicaragua, Panama, Paraguay, Peru, St. Kitts and Nevis, St. Lucia, St.
            Vincent and the Grenadines, Suriname, Uruguay, Venezuela.
<PAGE>
                IV.C - COUNTRIES IN WHICH THE LACOSTE TRADEMARKS
                                  BELONG TO LCA

 Barbados, Canada, Cuba, Dominican Republic, Haiti, Jamaica, Mexico, Trinidad &
                             Tobago, United States.
<PAGE>
                                   SCHEDULE V

                               THE LACOSTE WATCHES

                        Watches for men, women, children

                              Time-keeping devices

                   Cases for watches and time-keeping devices

                  Bracelets, straps and components for watches
<PAGE>
                                   SCHEDULE VI

                          THE LACOSTE APPAREL PRODUCTS

                      a) - Men's clothing - light products

      Bathing suits, rugby shirts, short-sleeved polos, long-sleeved polos,
       sweaters, sweatshirts, tee-shirts, turtle-neck shirts, cut-and-sown
        long-sleeved shirts, cut-and-sown short-sleeved shirts, various.

                      b) - Men's clothing - heavy products

                Bermudas, windbreakers, parkas, jackets, shorts,
                      trousers, trainings and trousers for
                     trainings, in knit or in woven fabric.

                              c) - Women's clothing

      Bathing suits, rugby shirts, short-sleeved polos, long-sleeved polos,
       sweaters, sweatshirts, tee-shirts, turtle-neck shirts, cut-and-sown
        long-sleeved shirts, cut-and-sown short-sleeved shirts, various.
        Bermudas, windbreakers, parkas, jackets, skirts, dresses, shorts,
                 trousers, trainings and trousers for trainings,
                           in knit or in woven fabric.

                            d) - Children's clothing

      Bathing suits, rugby shirts, short-sleeved polos, long-sleeved polos,
       sweaters, sweatshirts, tee-shirts, turtle-neck shirts, cut-and-sown
        long-sleeved shirts, cut-and-sown short-sleeved shirts, various.
 Bermudas, windbreakers, parkas, jackets, skirts, dresses, shorts,
                 trousers, trainings and trousers for trainings,
                           in knit or in woven fabric.

                               e) - Other clothing

                    Socks, wrist- and headbands, hats, caps,
                other headgear, gloves, scarves, ties, underwear.
<PAGE>
                                  SCHEDULE VII

                           THE OTHER LACOSTE PRODUCTS

                                   Toiletries

                             Leisure and sports bags

                              Leathergoods products

                                      Shoes

                      Terry towels, bath towels, bath robes

                                 Household linen

                                    Umbrellas

                                      Belts

                    Sunglasses and frames for optical glasses

           Any other product other than LACOSTE APPAREL PRODUCTS and
          LACOSTE WATCHES which the LICENSOR may develop in the future
<PAGE>
                                  SCHEDULE VIII

 VIII.A - LIST OF THE COUNTRIES CONSTITUTING EUROPE, AFRICA AND THE MIDDLE-EAST

 Afghanistan, Albania, Algeria, Andorra, Angola, Armenia, Austria, Azerbaijan,
  Bahrain, Belarus, Belgium, Benin, Bosnia & Herzegovina, Botswana, Bulgaria,
  Burkina Faso, Burundi, Cameroon, Cape Verde, Central African Republic, Chad,
 Comoros, Congo, Croatia, Cyprus, Czech Republic, Democratic Republic of Congo,
    Denmark, Djibouti, Egypt, Equatorial Guinea, Eritrea, Estonia, Ethiopia,
Finland, Former Yugoslav Republic of Macedonia, France, Gabon, Gambia, Georgia,
  Germany, Ghana, Greece, Guinea, Guinea-Bissau, Hungary, Iran, Iraq, Ireland,
 Island, Israel, Italy, Ivory Coast, Jordan, Kazakhstan, Kenya, Kuwait, Kyrgyz
Republic, Latvia, Lesotho, Liberia, Libya, Liechtenstein, Lithuania Luxembourg,
    Madagascar, Malawi, Mali, Malta, Mauritania, Mauritius, Monaco, Morocco,
    Mozambique, Namibia, Netherlands, Niger, Nigeria, Norway, Oman, Poland,
 Portugal, Qatar, Republic of Moldova, Rumania, Russian Federation, Rwanda, San
 Marino, Sao Tome & Principe, Saudi Arabia, Senegal, Seychelles, Sierra Leone,
    Slovak Republic, Slovenia, Somalia, South-Africa, Spain, Sudan, Sweden,
 Switzerland, Syria, Tajikistan, Tanzania, Togo, Tunisia, Turkey, Turkmenistan,
Uganda, Ukraine, United Arab Emirates, United Kingdom, Uzbekistan, Vatican City,
                      Yemen, Yugoslavia, Zambia, Zimbabwe

            VIII.B - LIST OF THE COUNTRIES CONSTITUTING THE FAR-EAST

 Australia, Bangladesh, Brunei Darussalam, Butan, Cambodia, Democratic People's
  Republic of Korea, Democratic People's Republic of Lao, Federated States of
    Micronesia, Fiji, India, Indonesia, Japan, Kiribati, Malaysia, Maldives,
 Marshall Islands, Mongolia, Myanmar, Nauru, Nepal, New-Zealand, North Marianne
    Islands, Pakistan, Palau, Papua-New Guinea, People's Republic of China,
Philippines, Samoa, Singapore, Solomon Islands, South-Korea, Sri Lanka, Taiwan,
                   Thailand, Tonga, Tuvalu, Vanuatu, Vietnam

            VIII.C - LIST OF THE COUNTRIES CONSTITUTING NORTH AMERICA

Antigua & Barbuda, Aruba, Bahamas, Barbados, Canada, Costa Rica, Cuba, Curacao,
                     Dominica, Dominican Republic, Grenada,
<PAGE>
    Haiti, Jamaica, Mexico, St Kitts and Nevis, St Lucia, St Vincent and the
            Grenadines, Trinidad & Tobago, United States of America

  VIII.D - LIST OF THE COUNTRIES CONSTITUTING CENTRAL AMERICA AND SOUTH AMERICA

   Argentina, Belize, Bolivia, Brazil, Chile, Colombia, Ecuador, El Salvador,
   Guatemala, Guyana, Honduras, Nicaragua, Panama, Paraguay, Peru, Suriname,
                               Uruguay, Venezuela
<PAGE>
                                   SCHEDULE IX

                                 POINTS-OF-SALE

                        IX.A - APPROVED WATCHES RETAILERS
                             Specialized Watch Shops
                 Specialized Watch Corners of Department Stores
                                   Sport Shops
                       Sport Corners of Department Stores
                                 Duty-free Shops
           Other retailers fulfilling the requirements of the LACOSTE
                     WATCHES SELECTIVE DISTRIBUTION SYSTEM

              IX.B - Members of the "LACOSTE BOUTIQUES AND LACOSTE
                     CORNERS" SELECTIVE DISTRIBUTION SYSTEM
<PAGE>
                                   SCHEDULE X

                             SUPPLEMENTAL AGREEMENT

                     LACOSTE WATCHES SUPPLEMENTAL AGREEMENT

By and between:

LACOSTE S.A., (or Sporloisirs S.A. or Lacoste Alligator S.A. as the case may be)
a [COUNTRY (NAME OF THE COUNTRY FROM WHERE THE COMPANY ORIGINATES)]corporation
organised and existing under the laws of [COUNTRY] whose registered office and
principal place of business is located at [ADDRESS], represented by its [TITLE],
[NAME OF SIGNATORY].

         hereinafter referred to as the "LICENSOR",

And:

MGI LUXURY GROUP S.A., a Swiss corporation organised and existing under the laws
of Switzerland whose registered office is located at 35 rue de Nidau, CH-2501,
Bienne (Switzerland) , represented by xxx.

         hereinafter referred to as "MASTER LICENSEE",

And:

[NAME OF THE COMPANY], a [COUNTRY (NAME OF THE COUNTRY FROM WHERE THE COMPANY
ORIGINATES)] corporation organised and existing under the laws of [COUNTRY]
whose registered office and principal place of business is located at [ADDRESS],
represented by its [TITLE], [NAME OF SIGNATORY].

         hereinafter referred to as the "DISTRIBUTOR".

WITNESSETH:

WHEREAS, the LICENSOR has entered into a License Agreement with MASTER LICENSEE
dated [Date], 2006 (hereunder referred to as the "MASTER AGREEMENT"), granting
to MASTER LICENSEE worldwide the exclusive rights to use the LICENSED TRADEMARKS
(as such term is hereinafter defined), the MODELS (as such term is hereinafter
defined)and the KNOW-HOW (as such term is hereinafter defined) in connection
with the creation, development, manufacture, advertising, distribution,
marketing, merchandising, promotion, and sale of the LACOSTE WATCHES (as such
term is hereinafter defined); and

WHEREAS, under the terms of the MASTER AGREEMENT, MASTER LICENSEE is entitled to
sub-license the rights granted to it with respect to the marketing,
merchandising, promotion, advertising, distribution and sale of the LACOSTE
WATCHES to distributors of its choice subject in such event:
<PAGE>
                                      -2-

-     to the approval by the LICENSOR of the selected distributors proposed by
      MASTER LICENSEE; and

-     to the signing of a distribution sub-license agreement between MASTER
      LICENSEE and the distributors including the main provisions relating to
      the protection of the LICENSOR's Intellectual Property Rights and of the
      LACOSTE TRADEMARKS IMAGE (as such term is hereinafter defined) as well as,
      in addition to the rights and obligations which MASTER LICENSEE wishes to
      sub-license, also all obligations MASTER LICENSEE would otherwise have had
      to fulfil with respect to the rights sub-licensed to the distributors and
      that the distributors shall undertake to personally carry out; and

WHEREAS, in such event, MASTER LICENSEE shall enter with the LICENSOR, owner of
the LACOSTE TRADEMARKS, and the distributors into SUPPLEMENTAL AGREEMENTS
defining on a country by country basis in addition to the list of the LICENSED
TRADEMARKS authorised to be used by the concerned distributor also all
obligations relating to the protection of the LICENSED TRADEMARKS; and

WHEREAS, MASTER LICENSEE has decided to appoint DISTRIBUTOR as its distributor
and grant it certain rights in connection with the marketing, merchandising,
promotion, advertising, distribution and sale of the LACOSTE WATCHES in the
TERRITORY (as such term is hereinafter defined) and has entered into the
appropriate sub-license agreement (hereinafter referred to as the "DISTRIBUTION
AGREEMENT") with the DISTRIBUTOR; and

WHEREAS, the LICENSOR has created and developed over a period of many years a
well known and distinctive line of sports and leisure apparel for men, women,
and children (hereinafter referred to as the "LACOSTE APPAREL PRODUCTS") as well
as other lines of products such as toiletries, sunglasses and frames for optical
glasses, sport and leisure bags, leathergoods products, shoes, terry towels,
bath towels, bath robes, household linen, umbrellas, belts and any other
products which the LICENSOR may develop in the future (hereinafter referred to
as the "OTHER LACOSTE PRODUCTS") it being specified that the OTHER LACOSTE
PRODUCTS include neither the LACOSTE APPAREL PRODUCTS nor the LACOSTE WATCHES;
and

WHEREAS, the LICENSOR has also contributed to the creation and the development
of a line of watches and time-keeping devices (the "LACOSTE WATCHES", as such
term is hereinafter defined); and

WHEREAS, the LACOSTE WATCHES, the LACOSTE APPAREL PRODUCTS and OTHER LACOSTE
PRODUCTS, which are characterised by an emblem trademark consisting of the
pictorial representation of an alligator or a crocodile (hereinafter referred to
as the "CROCODILE"), are renowned and sold worldwide under the trade names of
"Lacoste", "La Chemise Lacoste", "Chemise Lacoste" recalling the name of Rene
Lacoste the famous tennis champion who invented the original shirt, and the
"CROCODILE" recalling his nickname on the tennis courts; and

WHEREAS, each of the models making up the lines of LACOSTE WATCHES and of the
said OTHER LACOSTE PRODUCTS together with their specifications are the sole
property of the LICENSOR which, in addition, has duly registered the LACOSTE
TRADEMARKS in the relevant classes of products in the TERRITORY; and
<PAGE>
                                      -3-

WHEREAS, in order to protect its rights, the LICENSOR has registered numerous
trademarks among which the LICENSED TRADEMARKS throughout the world and more
specifically in the TERRITORY in the relevant classes of products and services;
and

WHEREAS, the LICENSOR is willing to enter with MASTER LICENSEE and the
DISTRIBUTOR into the appropriate supplemental agreement (hereinafter referred to
as the "SUPPLEMENTAL AGREEMENT") according to the provisions set forth in the
MASTER AGREEMENT referred to above.

NOW THEREFORE, THE PARTIES AGREE AS FOLLOWS:

ARTICLE 1 - DEFINITIONS

For the purpose of this SUPPLEMENTAL AGREEMENT the terms hereinafter shall have
the following meanings:

1.1        "APPROVED WATCHES RETAILERS" shall mean the selected points of sale
           that are approved by LICENSOR and/or MASTER LICENSEE for the retail
           sale of LACOSTE WATCHES.

1.2        "LACOSTE WATCHES SELECTIVE DISTRIBUTION SYSTEM" shall mean the group
           of APPROVED WATCHES RETAILERS organized by the MASTER LICENSEE in the
           TERRITORY in accordance with the specific guidelines of the LICENSOR
           to sell the LACOSTE WATCHES while respecting the specific criteria in
           the area of client service, merchandising, presentation, advertising,
           promotion and respect of the LACOSTE TRADEMARKS IMAGE.

1.3        "SUPPLEMENTAL AGREEMENT" shall mean the present SUPPLEMENTAL
           AGREEMENT.

1.4        "MODELS" shall mean any and all creations specific to the LACOSTE
           WATCHES, or part thereof.

1.5        "LICENSOR'S KNOW-HOW" shall mean the LICENSOR's MARKETING AND
           MERCHANDISING KNOW-HOW and PROMOTION AND ADVERTISING KNOW-HOW for the
           distribution and advertising of the LACOSTE WATCHES and the LICENSED
           TRADEMARKS.

1.6        "CROCODILE" shall mean the pictorial representation of an alligator
           or crocodile as depicted in Schedule II of this SUPPLEMENTAL
           AGREEMENT.

1.7        "LACOSTE TRADEMARKS" shall mean any or all the trademarks relating to
           the name "Lacoste" and/or the CROCODILE belonging to the LICENSOR,
           representations of the main of which are appended hereto in Schedule
           I of this SUPPLEMENTAL AGREEMENT.

1.8        "LICENSED TRADEMARKS" shall mean those of the LACOSTE TRADEMARKS
           which representations are reproduced in Schedule III to this
           SUPPLEMENTAL AGREEMENT.

1.9        "LACOSTE TRADEMARKS IMAGE" shall mean the presently existing
           identification in the principal markets where the LACOSTE APPAREL
           PRODUCTS, the OTHER LACOSTE PRODUCTS, and the LACOSTE WATCHES are
           distributed, between the LACOSTE TRADEMARKS and good taste,
           authenticity, quality, functionality, modernity, elegance, high-end
<PAGE>
                                      -4-

           sports and leisure, however at competitive quality/price ratios. The
           LACOSTE TRADEMARKS IMAGE shall be judged in relation to all the
           elements making up the perception by the consumer of the LACOSTE
           APPAREL PRODUCTS, the OTHER LACOSTE PRODUCTS, and the LACOSTE Watches
           as to their style, quality, price, marketing and merchandising,
           advertising and promotion.

1.10       "LACOSTE WATCHES" shall mean the watches and time-keeping devices
           belonging to class 14 of the Classification Internationale des
           Produits et des Services (as listed in Schedule IV) as well as any
           accessory thereto (straps, cases, etc.), packaging and wrapping
           bearing the LICENSED TRADEMARK manufactured and marketed by the
           MASTER LICENSEE itself and/or under its control and responsibility
           under the terms of the MASTER AGREEMENT, or marketed prior to the
           MASTER AGREEMENT by any previous licensee of LICENSOR.

1.11       "TERRITORY" shall mean [COUNTRY SUBJECT OF THE AGREEMENT].

1.12       "TERMINATION DATE" shall mean the date on which this SUPPLEMENTAL
           AGREEMENT shall end or shall not be renewed for whatever reason at
           the end of any notice period (if any).

1.13       The words which appear in the present SUPPLEMENTAL AGREEMENT in bold
           and which are not defined in this Article shall have the meaning
           given in the DISTRIBUTION AGREEMENT.

ARTICLE 2 - RIGHTS GRANTED

The LICENSOR hereby confirms to the DISTRIBUTOR that it is authorised to use,
during the life of this SUPPLEMENTAL AGREEMENT and within the limits herein
defined of this SUPPLEMENTAL AGREEMENT, the LICENSED TRADEMARKS, and the MODELS
in connection with the marketing, merchandising, promotion and advertising,
distribution and sale of the LACOSTE WATCHES in the TERRITORY.

ARTICLE 3 - LICENSED TRADEMARKS' USE

3.1        The DISTRIBUTOR undertakes not to use the LICENSED TRADEMARKS and the
           MODELS otherwise than within the scope and the limits of this
           SUPPLEMENTAL AGREEMENT and of the DISTRIBUTION AGREEMENT and for the
           distribution and sale of the LACOSTE WATCHES.

3.2        The DISTRIBUTOR undertakes to take all the necessary measures, in the
           field of its marketing, merchandising, advertising and promotional
           programmes, to follow the general worldwide policy, prescribed and
           coordinated by the LICENSOR with respect to the image of the LACOSTE
           TRADEMARKS, it being understood, however, that DISTRIBUTOR shall have
           no obligation to incur any expense in this regard except as set forth
           in the DISTRIBUTION AGREEMENT.

3.3        The DISTRIBUTOR shall be entitled to claim the use of the LICENSED
           TRADEMARKS only in the manner prescribed by the LICENSOR. The LACOSTE
           WATCHES shall bear no other name or mark or wording which could make
           third parties believe that the LICENSED TRADEMARKS belong to other
           entity than the LICENSOR.
<PAGE>
                                      -5-

           Any additional name or mark or wording required by the laws and
           regulations in force in the TERRITORY shall have to be submitted to
           MASTER LICENSEE which shall submit the same for the prior written
           approval of the LICENSOR which will have the right to specify their
           size and location whenever possible.

3.4        No modified reproduction of the LICENSED TRADEMARKS may be used by
           the DISTRIBUTOR save with the prior written approval of the LICENSOR.

3.5        The DISTRIBUTOR undertakes to always respect irreproachable trade and
           legal practices in the manner and use of the LICENSED TRADEMARKS and
           adhere to such reasonable opinion as may be provided from time to
           time by the LICENSOR's intellectual property counsels for such use.

3.6        When using the LICENSED TRADEMARKS for the promotion or advertising
           of the LACOSTE WATCHES and of the image of the LACOSTE TRADEMARKS,
           the DISTRIBUTOR shall take all necessary steps to ensure in
           particular that not only the image of the LACOSTE TRADEMARKS but also
           the personal reputation of Mr Rene LACOSTE and his family are
           safeguarded and in this scope to use exclusively the designs,
           lettering, labels and logos created by the LICENSOR.

3.7        The DISTRIBUTOR shall not, and shall ensure that its APPROVED WATCHES
           RETAILERS do not, without the prior written agreement of the LICENSOR
           (and in such event according to the LICENSOR's prescriptions)
           register a domain name or create a web site or create an e-mail
           address including the words Lacoste or the CROCODILE.

           Should the DISTRIBUTOR wish to include a section dedicated to the
           LICENSED TRADEMARKS and/or the LACOSTE WATCHES in its own
           institutional web site, it shall submit its draft to the MASTER
           LICENSEE and obtain its prior approval before placing it on line. The
           same procedure shall apply for the up dating of said web page.

3.8        Advertising and/or sale of LACOSTE WATCHES on the Internet and by
           Mail Order are authorized only by APPROVED WATCHES RETAILERS and
           LACOSTE BOUTIQUES and LACOSTE CORNERS provided the following
           conditions are satisfied:

           3.8.1         the web site or the Mail Order catalogues of the
                         APPROVED WATCHES RETAILERS, the LACOSTE BOUTIQUES and
                         LACOSTE CORNERS where the LACOSTE WATCHES shall be
                         advertised and/or sold shall be approved by MASTER
                         LICENSEE. This approval shall be given if the following
                         conditions are satisfied:

                              -    the name, environment, presentation and
                                   overall standing of the web site or the Mail
                                   Order catalogues as well as the way it
                                   functions shall be compatible with LACOSTE
                                   TRADEMARKS IMAGE; and

                              -    the web site or the Mail Order catalogues
                                   shall offer to the consumers a high service
                                   quality for the LACOSTE WATCHES; and

                              -    the manner which the MODELS and the LICENSED
                                   TRADEMARKS are presented on the web site or
                                   in the Mail Order catalogues in connection
                                   with the
<PAGE>
                                      -6-

                                   advertising and/or the sale of LACOSTE
                                   WATCHES shall be previously approved by
                                   MASTER LICENSEE. The APPROVED WATCHES
                                   RETAILERS, the LACOSTE CORNERS and the
                                   LACOSTE BOUTIQUES shall neither include nor
                                   use any of the LICENSED TRADEMARKS in the
                                   workings (as they exist as of this day or in
                                   the future) of the web, and in particular no
                                   LICENSED TRADEMARKS may be included or used
                                   in a domain name, and URL address or an
                                   e-mail address.

ARTICLE 4 - PROTECTION OF THE LICENSOR'S INTELLECTUAL PROPERTY RIGHTS

4.1        THE DISTRIBUTOR hereby acknowledges that the LICENSOR is the sole
           owner in the TERRITORY of the LICENSED TRADEMARKS and of the MODELS.

4.2        The DISTRIBUTOR undertakes to strictly respect the LICENSOR's
           intellectual property rights.

           Consequently, the DISTRIBUTOR:

           4.2.1         is prohibited from applying for registration of any of
                         the LACOSTE TRADEMARKS or for the registration of any
                         trademark confusingly similar to or ressembling the
                         LACOSTE TRADEMARKS within the TERRITORY or in the rest
                         of the world, nor shall it assist any party other than
                         the LICENSOR to do so unless MASTER LICENSEE shall have
                         obtained the prior written approval from the LICENSOR,
                         such prohibitions applying to each and every kind of
                         goods or services in any class of the International
                         Classification of Goods and Services;

           4.2.2         shall not apply for the registration of any of the
                         MODELS nor for the registration of any model
                         confusingly similar to the MODELS within the TERRITORY
                         or in the rest of the world.

                         The DISTRIBUTOR is prohibited from taking any action
                         before any authority which may have as a consequence,
                         the contesting or seeking the cancellation of any
                         registration of the LICENSED TRADEMARKS or the MODELS.

           4.2.3         undertakes to facilitate in the future all applications
                         for the registration of trademarks, models, or patents
                         which the LICENSOR may apply for at Licensor's own
                         expense within the TERRITORY to protect the LACOSTE
                         WATCHES and/or LACOSTE TRADEMARKS or any other
                         creations in any class or category of national
                         classification or International Classifications of
                         Goods and Services, it being hereby expressly
                         recognised by the DISTRIBUTOR that any such trademark,
                         model, patent application or registration or any other
                         right thus obtained shall be the exclusive property of
                         the LICENSOR; and

                         In addition, the DISTRIBUTOR shall never file any legal
                         or administrative action which may have a consequence
                         or which aim at the withdrawal or cancellation of the
                         LICENSED TRADEMARKS and/or the MODELS; and
<PAGE>
                                      -7-

           4.2.4         shall, during the term of this SUPPLEMENTAL AGREEMENT,
                         uphold and assist the LICENSOR in maintaining, at the
                         LICENSOR's exclusive expense, adequate trademark
                         registration of the LACOSTE TRADEMARKS within the
                         TERRITORY and the MODELS; and

           4.2.5         shall be vigilant in watching for any infringement of
                         the LICENSOR's rights in the LACOSTE TRADEMARKS or the
                         MODELS and shall consequently promptly notify the
                         LICENSOR and MASTER LICENSEE after becoming aware of
                         the same or of any act that may constitute a
                         counterfeit, an usurpation or an imitation of the
                         LICENSED TRADEMARKS and the MODELS as well as of any
                         act of unfair competition. The LICENSOR alone shall be
                         responsible, for taking action against infringers but
                         the DISTRIBUTOR shall assist the LICENSOR in every
                         possible way.

                         The expenses of the proceedings incident to or
                         contemplated by this Article 4.2.5 relating to the
                         LACOSTE WATCHES as well as any damages that might be
                         awarded as a result of such action shall be shared
                         equally between the LICENSOR and the DISTRIBUTOR. The
                         expenses relating to investigations (i.e. private
                         detectives, enquiry agents, etc.) if previously agreed
                         upon between the LICENSOR and the DISTRIBUTOR shall be
                         shared equally in the same manner; and

           4.2.6         shall defend at its own costs and expenses any action
                         for unfair competition, passing-off, copyright, patent
                         or design infringement, including advertising or other
                         related cause of action arising out of its use of the
                         LICENSED TRADEMARKS or the MODELS, and shall give
                         prompt notice in writing to the LICENSOR of any such
                         action. The LICENSOR shall always have the right to
                         participate in such an action at its sole discretion.
                         In this event the expenses of the proceedings as well
                         as any damage arising from such action shall be shared
                         equally. In any event, the LICENSOR shall provide its
                         assistance to the MASTER LICENSEE in such defense; and

           4.2.7         shall in no circumstances, and whatever may have been
                         the duration of this SUPPLEMENTAL AGREEMENT or the
                         reason for its end, termination or non-renewal, be
                         entitled to any claim to the ownership of the LACOSTE
                         TRADEMARKS or the MODELS.

4.3        Under no circumstances, shall the LICENSOR be held liable by the
           DISTRIBUTOR for any loss the DISTRIBUTOR may suffer due to acts of
           counterfeiting, imitation, usurpation or unfair competition committed
           by third parties.

4.4        Notwithstanding the foregoing, the DISTRIBUTOR shall have the right
           to prosecute by law any third party for unfair competition according
           to its own interest and at its own expense.

4.5        Should it be necessary, according to the laws and regulations in
           force in the TERRITORY, to declare on record this SUPPLEMENTAL
<PAGE>
                                      -8-

           AGREEMENT, the LICENSOR shall take the necessary appropriate steps at
           the DISTRIBUTOR's costs. The DISTRIBUTOR undertakes to assist the
           LICENSOR in such steps.

ARTICLE 5 - DURATION

5.1        This SUPPLEMENTAL AGREEMENT shall enter into force as of the date the
           DISTRIBUTION AGREEMENT shall enter into force and shall remain in
           full force and effect for the duration of the DISTRIBUTION AGREEMENT.

5.2        Subject to earlier termination as hereinafter mentioned in Article 6,
           this SUPPLEMENTAL AGREEMENT shall automatically end on the same date
           the DISTRIBUTION AGREEMENT will end for whatever reason.

ARTICLE 6 - TERMINATION

Notwithstanding the provisions of Article 5 above, this SUPPLEMENTAL AGREEMENT
may be terminated at any time

6.1        By any party:

           6.1.1         in the event of a material breach of this SUPPLEMENTAL
                         AGREEMENT by any other of the parties, provided that it
                         has given sixty (60) days written notice of such breach
                         to the other party and that the other party has failed
                         to cure such breach within such period or failed to
                         take action within such period clearly sufficient to
                         remedy said breach without prejudice of any
                         compensation or damages whatsoever.

           6.1.2         forthwith, in the event that any other of the parties
                         shall (l) be dissolved; (2) apply for or consent to the
                         appointment of a receiver, trustee or liquidator for
                         its properties or assets; (3) admit in writing its
                         inability to pay its debts as they mature; (4) make a
                         general assignment for the benefit of creditors; (5)
                         file a voluntary petition or be the subject of an
                         involuntary petition in bankruptcy (which is not
                         dismissed within sixty (60) days) or an answer seeking
                         reorganization in arrangement with creditors, or take
                         advantage of any bankruptcy, reorganization, insolvency
                         or readjustment of debt law or statute, or file an
                         answer admitting the material allegations of a petition
                         filed against it in any proceedings under such a law or
                         statute, or take any action for the purposes of
                         effecting any of the foregoing; or (6) have any order,
                         judgment or decree entered against it without the
                         application, approval or consent of the concerned
                         party, by any court of competent jurisdiction approving
                         a petition seeking reorganization of its properties or
                         assets or the appointment of a receiver, trustee or
                         liquidator for it.
<PAGE>
                                      -9-

6.2        By the LICENSOR:

           6.2.1         Within 15 days of the sending of a registered letter,
                         with notification of receipt, notifying the
                         termination, without giving rise to any damages or
                         compensation whatsoever, in the event of a change in
                         control of the DISTRIBUTOR or if an individual or
                         company directly or indirectly in competition with the
                         activities of THE LICENSOR, including a licensee, a
                         sub-licensee, a distributor, a sub-distributor, an
                         agent or a customer of the LICENSOR should become a
                         shareholder, even a minority shareholder, of the
                         DISTRIBUTOR.

                         The DISTRIBUTOR then undertakes to inform the LICENSOR
                         and MASTER LICENSEE of the occurrence of any of the
                         events hereinabove described within 8 days thereof.

                         The LICENSOR nevertheless shall be entitled to postpone
                         its right to terminate this SUPPLEMENTAL AGREEMENT to
                         assess the compatibility of such change with its own
                         commercial conceptions and interest.

                         If within three months following the receipt of the
                         DISTRIBUTOR's notice of the occurrence of such events,
                         the LICENSOR has not implemented its right to terminate
                         the SUPPLEMENTAL AGREEMENT, it shall continue in force
                         until its normal term subject to the execution of the
                         other provisions contained in this Article 6.

           6.2.2         Forthwith, in the event that the DISTRIBUTOR fails to
                         fulfil its obligations with regards to the LACOSTE
                         WATCHES SELECTIVE DISTRIBUTION SYSTEM and
                         notwithstanding the provisions of Article 6.1.1
                         hereinabove.

This SUPPLEMENTAL AGREEMENT shall be terminated upon the termination or
non-renewal of the DISTRIBUTION AGREEMENT within the same period of time.

ARTICLE 7 - PROVISIONS AT TERMINATION

7.1        Upon termination of this SUPPLEMENTAL AGREEMENT for whatever reason:

           7.1.1         all rights and licensees granted to the DISTRIBUTOR
                         pursuant to this SUPPLEMENTAL AGREEMENT shall terminate
                         and revert to the LICENSOR; and

           7.1.2         subject to any rights DISTRIBUTOR may have under the
                         DISTRIBUTION AGREEMENT to sell off its remaining
                         inventory of LACOSTE WATCHES, the DISTRIBUTOR shall
                         immediately cease to trade as a Lacoste distributor on
                         the TERMINATION DATE, shall cease to use the LICENSOR's
                         KNOW-HOW, the LICENSED TRADEMARKS and the MODELS and
                         shall not assist any third party to do so; and

           7.1.3         the DISTRIBUTOR shall cancel at its own expense all
                         government clearances it may have obtained with the
                         appropriate governmental authorities; and
<PAGE>
                                      -10-

           7.1.4         the DISTRIBUTOR shall deliver immediately, at its cost,
                         to the LICENSOR or to any third party designated by the
                         LICENSOR, all remaining advertising and promotional
                         material, and in general all documents and items
                         bearing or representing the LICENSED TRADEMARKS
                         (catalogues, technical documents, etc.) emanating from
                         the LICENSOR.

7.2        The DISTRIBUTOR acknowledges and agrees that it is entering into this
           SUPPLEMENTAL AGREEMENT on the express understanding that its receipt
           from sales of LACOSTE WATCHES under the DISTRIBUTION AGREEMENT and
           this SUPPLEMENTAL AGREEMENT are intended to be sufficient to
           compensate it fully for all risks, costs and expenses incurred in
           connection with this SUPPLEMENTAL AGREEMENT, including, i.e., all
           costs and expenses incurred by the DISTRIBUTOR for its advertising
           and promotion efforts to create what is commonly known as "goodwill"
           for the LICENSED TRADEMARKS.

7.3        Accordingly, upon termination of this SUPPLEMENTAL AGREEMENT and
           regardless its duration, for whatever reason, the DISTRIBUTOR shall
           have no right to any further payment, indemnity or compensation for
           loss of goodwill or for any risks, costs or expenses incurred or
           developed by the DISTRIBUTOR during the term of this SUPPLEMENTAL
           AGREEMENT.

ARTICLE 8 - ASSIGNMENT

This SUPPLEMENTAL AGREEMENT shall be binding upon and inure to the benefit of
the parties hereto and their respective authorised successors and assignees
under the terms of this SUPPLEMENTAL AGREEMENT.

It is expressly understood and agreed that this SUPPLEMENTAL AGREEMENT or any
interest therein shall not be in part or as a whole directly or indirectly sold,
assigned, pledged or otherwise encumbered by the DISTRIBUTOR without the written
consent of the LICENSOR and MASTER LICENSEE.

The DISTRIBUTOR is also prohibited from assigning, selling, pledging or
otherwise encumbering to any third party in the same conditions as hereabove
whether in part or as a whole any of the rights hereby granted to it, be it in a
given part of the TERRITORY save as expressly provided for in the present
SUPPLEMENTAL AGREEMENT.

ARTICLE 9 - FORCE MAJEURE

9.1        The parties shall not be liable for any damages or loss of any kind,
           arising from any delay or failure to perform (partially or totally)
           the obligations provided for in this SUPPLEMENTAL AGREEMENT caused by
           an event of force majeure, without there being however fault or
           negligence of the parties which rely thereon. Moreover, a reason for
           exoneration of responsibility under this Article 9.1 excludes thereby
           the possible right of the other party to terminate or cancel this
           SUPPLEMENTAL AGREEMENT due to the corresponding non-performance.

           For the purposes of this SUPPLEMENTAL AGREEMENT, an event of force
           majeure is any event or cause which presents an unpredictable,
<PAGE>
                                      -11-

           irresistible character and is not within the will of the parties and
           which has for effect, directly or indirectly, to prevent or to render
           impossible the performance of an obligation set forth in this
           SUPPLEMENTAL AGREEMENT (i.e., for the purposes of this SUPPLEMENTAL
           AGREEMENT, and without limitation, any war, insurrection, strike,
           serious economic crisis, national restriction in transfer of
           royalties,...).

           After the occurrence of an event of force majeure, the party
           concerned shall promptly send notice by letter, telex or fax,
           informing the other party of all the details of such event.

           In all cases, the party who relies thereon shall take all useful and
           necessary measures to assure as rapidly as possible the normal
           resumption of the performance of this SUPPLEMENTAL AGREEMENT.

9.2        If the circumstances go beyond six months and once the continuation
           of the SUPPLEMENTAL AGREEMENT appears to be possible upon adaptation,
           the parties shall coordinate to modify in good faith and in equity
           the necessary amendments.

9.3        If these negotiations do not produce results in a period of one
           month, the SUPPLEMENTAL AGREEMENT shall be readapted by a third party
           designated by the Centre international d'expertise de la Chambre de
           Commerce Internationale.

9.4        If the continuation of the SUPPLEMENTAL AGREEMENT does not appear to
           be possible even upon adapting this SUPPLEMENTAL AGREEMENT, the
           parties shall negotiate in good faith the provisions permitting the
           termination of this SUPPLEMENTAL AGREEMENT.

ARTICLE 10 - CAPACITY OF THE PARTIES

10.1       It is expressly agreed that, within the framework of the DISTRIBUTION
           AGREEMENT and this SUPPLEMENTAL AGREEMENT, the DISTRIBUTOR purchases
           and resells the LACOSTE WATCHES for its own account and acts as an
           independent trader with respect to the MASTER LICENSEE, the LICENSOR
           and with respect to its customers. Consequently, under no
           circumstances shall it enter into any agreement or take any action
           purporting to obligate the LICENSOR or the MASTER LICENSEE to third
           parties, other than as may be specifically provided in other written
           licenses or agreements entered into by the parties hereto.

10.2       Nothing in this SUPPLEMENTAL AGREEMENT shall be construed to render
           any party liable for any debts or obligations of any other party and
           the parties shall in no way be considered agents or representatives
           of each other. No party shall have the authority to act for or bind
           any other.
<PAGE>
                                      -12-

ARTICLE 11 - CANCELLATION OF PREVIOUS AGREEMENTS

This SUPPLEMENTAL AGREEMENT cancels and replaces any previous verbal and/or
written agreements entered into between the MASTER LICENSEE, the LICENSOR and
the Distributor.

ARTICLE 12 - CONFIDENTIALITY

12.1       The DISTRIBUTOR recognizes that any information (styling, technical,
           marketing, ...) it has so far received and shall receive in the
           future, related directly or indirectly to this SUPPLEMENTAL
           AGREEMENT, to the LICENSED TRADEMARKS, to the MODELS, the KNOW-HOW,
           the LACOSTE WATCHES, the MASTER LICENSEE and to the LICENSOR are
           strictly confidential.

           Consequently, the DISTRIBUTOR formally undertakes not to use such
           information other than in the scope of this SUPPLEMENTAL AGREEMENT
           and to strictly respect the confidential character of such
           information and to continue so to do indefinitely after its
           termination or non-renewal.

12.2       On its part, the LICENSOR acknowledges that the information it has
           received or shall receive concerning directly or indirectly the
           DISTRIBUTOR is confidential and undertakes not to use it other than
           within the scope and during the life of this SUPPLEMENTAL AGREEMENT.

ARTICLE 13 - LEGAL AND ETHICAL REQUIREMENT

The DISTRIBUTOR shall at its own expense ensure that all local and national
laws, rules, regulations and other requirements and codes of practice applicable
in the TERRITORY and all policies and ethical and other standards from time to
time specified by MASTER LICENSEE in respect of the treatment of any persons
involved in the sale of any LACOSTE WATCHES or otherwise in respect of any human
rights or other issues are complied with in relation to all activities of the
DISTRIBUTOR and/or its authorized suppliers under this SUPPLEMENTAL AGREEMENT.

The DISTRIBUTOR shall observe at all times the relevant provisions of any
treaty, law or regulation in relation to the protection of the environment.

The DISTRIBUTOR shall indemnify MASTER LICENSEE and its assignees and successors
for any claims, known or unknown, liabilities, demands, damages, cases of
action, costs expenses, dues, covenants, suits, indemnities and judgements which
any third party shall make arising out of or in connection with Distributor's
obligations hereunder or under the Distribution Agreement.

ARTICLE 14 - MISCELLANEOUS

14.1       The DISTRIBUTOR shall, at its own expense, in the TERRITORY and the
           LICENSOR shall, at its own expense, in France (or in Switzerland),
           execute any documents required to comply with the laws and
           requirements of the respective countries with respect to declaring,
           recording or otherwise rendering this SUPPLEMENTAL AGREEMENT
           effective.
<PAGE>
                                      -13-

14.2       Any notices, demands, requests, consents, approvals or other
           communications, faxes or telexes, hand delivery notices, given or
           made, or required to be given or made to a party under this
           SUPPLEMENTAL AGREEMENT shall be in writing and deemed effective on
           the earlier of the date of actual personal delivery or deposit, air
           mail, postage prepaid, in the registered mail of the country of
           origin, sent to:

           14.2.1        for the LICENSOR:

                         (If the LICENSOR is LACOSTE S.A.), Monsieur Michel
                         LACOSTE, President Directeur General of LACOSTE
                         S.A.;and

           14.2.2        for the DISTRIBUTOR:

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

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

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

           14.2.3        for the MASTER LICENSEE:

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

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

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

           to the addresses hereinabove set forth for such party. Any change of
           address shall be accomplished only by providing written notice to the
           other party to this SUPPLEMENTAL AGREEMENT.

14.3       No rights of any party arising out of this SUPPLEMENTAL AGREEMENT or
           any provision hereof, shall be waived except in writing. Failure by
           either party to exercise or enforce, in any one or more instances,
           any of the terms or conditions of this SUPPLEMENTAL AGREEMENT shall
           not constitute or be deemed a waiver of that party's right thereafter
           to enforce the terms and conditions of this SUPPLEMENTAL AGREEMENT.

14.4       The rights and obligations of the parties hereto under this
           SUPPLEMENTAL AGREEMENT shall be subject to all applicable laws,
           orders, regulations, directions, restrictions and limitations of the
           Government having jurisdiction on the parties hereto.

14.5       In the event, however, that any such law, order, regulation,
           direction, restriction or limitation, or construction thereof, shall
           substantially alter the relationship between the parties under this
           SUPPLEMENTAL AGREEMENT or the advantages derived from such
           relationship, or shall prevent the performance of any provision of
           this SUPPLEMENTAL AGREEMENT, the adversely affected party may request
           the other party hereto to modify this SUPPLEMENTAL AGREEMENT, and if
           within ninety (90) days subsequent to the making of such request, the
           parties hereto are unable to agree upon a mutually satisfactory
           modification hereof, then the adversely affected party may terminate
           this SUPPLEMENTAL AGREEMENT by giving thirty (30) days notice not
           later than thirty (30) days following the end of such ninety-day
           period.

ARTICLE 15 - GOVERNING LAW - JURISDICTION
<PAGE>
                                      -14-

15.1       This SUPPLEMENTAL AGREEMENT shall be governed by and construed in
           accordance with the laws of France.

15.2       All disputes arising out or in connection with this SUPPLEMENTAL
           AGREEMENT which cannot be amicably settled by consultation, shall be
           finally settled by arbitration in Paris under the rules of the
           International Chamber of Commerce by three arbitrators appointed in
           accordance with said rules. Each party shall be bound by any
           arbitration award so rendered and any judgment upon such award may be
           entered as a non-appealable, final judgment in any court having
           jurisdiction thereon. The proceedings shall be carried out in the
           English language.

IN WITNESS WHEREOF, the parties hereto have caused this SUPPLEMENTAL AGREEMENT
to be executed by their duly authorised officers at Paris (France), on [DATE OF
SIGNATURE].

LACOSTE S.A.
           MASTER LICENSEE
(or Sporloisirs S.A.
or Lacoste Alligator S.A.
as the case may be)

 [NAME OF SIGNATORY]                                         [NAME OF SIGNATORY]

                       [NAME OF THE DISTRIBUTOR'S COMPANY]

                               [NAME OF SIGNATORY]
<PAGE>
                                   SCHEDULE I

                             THE LACOSTE TRADEMARKS

                        (LACOSTE LOGO - LARGE CROCODILE)

                            (LACOSTE LOGO - LACOSTE)

                  (LACOSTE LOGO - SMALL CROCODILE AND LACOSTE)
<PAGE>
                                   SCHEDULE II

                                  THE CROCODILE

                        (LACOSTE LOGO - LARGE CROCODILE)

<PAGE>
                                  SCHEDULE III

                                   ----------

                             THE LICENSED TRADEMARKS

                                 (LACOSTE LOGO)

                                    LACOSTE
<PAGE>
                                   SCHEDULE IV

                                   ----------

                               THE LACOSTE WATCHES

                        Watches for men, women, children

                              Time-keeping devices

                   Cases for watches and time-keeping devices

                  Bracelets, straps and components for watches
<PAGE>
                                INDEX OF CONTENT

<TABLE>
<S>                                                                           <C>
ARTICLE 1 - DEFINITIONS...................................................     3
ARTICLE 2 - RIGHTS GRANTED................................................     4
ARTICLE 3 - LICENSED TRADEMARKS' USE......................................     4
ARTICLE 4 - PROTECTION OF THE LICENSOR'S INTELLECTUAL PROPERTY RIGHTS.....     6
ARTICLE 5 - DURATION......................................................     8
ARTICLE 6 - TERMINATION...................................................     8
ARTICLE 7 - PROVISIONS AT TERMINATION.....................................     9
ARTICLE 8 - ASSIGNMENT....................................................    10
ARTICLE 9 - FORCE MAJEURE.................................................    10
ARTICLE 10 - CAPACITY OF THE PARTIES......................................    11
ARTICLE 11 - CANCELLATION OF PREVIOUS AGREEMENTS..........................    12
ARTICLE 12 - CONFIDENTIALITY..............................................    12
ARTICLE 13 - LEGAL AND ETHICAL REQUIREMENT................................    12
ARTICLE 14 - MISCELLANEOUS................................................    12
ARTICLE 15 - GOVERNING LAW - JURISDICTION.................................    13
</TABLE>
<PAGE>
          GAR                                                  LACOSTE
                                    WATCHES

MGI Engineering                                                               20

February 2006
<PAGE>
          GAR                                                  LACOSTE
                                    WATCHES

                                   SCHEDULE XI

                                   ----------

                         GENERAL ACCEPTANCE REQUIREMENTS

MGI Engineering                                                               21

February 2006
<PAGE>
          GAR                                                  LACOSTE
                                    WATCHES

                         General Acceptance Requirements
                                        &
                            Confidentiality Agreement

MGI Engineering                                                               22

February 2006
<PAGE>
CONTACTS

SWITZERLAND
MGI LUXURY GROUP S.A.
Engineering
Heinz Steiger
Rue de Nidau 35
CH-2501 Bienne, Switzerland
Tel 41 32/ 329 34 00 / Direct 41 32/ 329 35 10
Email: hsteiger@movado.ch

FAR EAST
Swissam Products Ltd.
Engineering
Raymond Chung
1406 World Finance Centre
North Tower, Harbour City
Tsimshatsui, Kowloon
Hong Kong
Tel (852) 2736-0564 / Direct
E-mail: rchung@movadogroup.com

EDITION

Edited by MOVADO Group Engineering, Switzerland
Languages: English

DRAFT  First Edition 2006

MGI Engineering                                                               23

February 2006
<PAGE>
All rights reserved. No part of this GAR may be reproduced or transferred in any
form or by any means, electronic or mechanical, including photocopying,
recording, or by any information storage and retrieval system, without
permission in writing from MOVADO Group.

MGI Engineering                                                               24

February 2006
<PAGE>
TABLE OF CONTENT

<TABLE>
<S>                                                                           <C>
INTRODUCTION ...........................................................       5

Case ...................................................................       1

Dial & Hands ...........................................................       2

Bracelet ...............................................................       3

Strap ..................................................................       4

Buckle .................................................................       5

Movement ...............................................................       6

Diamond ................................................................       7

Plating ................................................................       8

Complete Watches .......................................................       9

Quality ................................................................      10

Pre - Shipment Inspection ..............................................      11

Confidentiality agreement ..............................................      12

                                                                              28

QUICK CHECK GAR ........................................................      58

GAR UPDATES ............................................................      59
</TABLE>

MGI Engineering                                                               25

February 2006
<PAGE>
INTRODUCTION

The purpose of this GAR (General Acceptance Requirements) is to maximize
engineering responsibilities and activities with suppliers. This GAR will help
to encourage and maintain a mutual understanding between Movado Group and
suppliers.

GAR and specifications serve as a guideline and will be updated regularly in
order to give the greatest input for product requirements.

For new product development, Movado Group will, provide for the suppliers,
additional product specifications if necessary.

To assure a good functioning of the engineering, rules and responsibilities as
outlined in this GAR have to be respected by all parties involved.

An important factor is also Modularity. MG requests the supplier to use
standardized components as outlined in this GAR. As a general rule, MG must
approve deviations from those standards.

Suppliers are always requested to sign off on GAR updates, this to avoid
misunderstandings.

CONFIDENTIALITY

This is a confidential document. Under no circumstances are copies to be made
without the written approval of MGI.

The vendor must keep in confidence all designs and technical specifications of
the product line. Under no circumstances is the vendor allowed to show dials and
other materials made for MGI as samples to a third party.

MGI Engineering                                                               26

February 2006
<PAGE>
* CONFIDENTIAL PORTION OF THIS EXHIBIT OMITTED AND FILED SEPARATELY WITH THE SEC
PURSUANT TO RULE 24b-2 OF THE 1934 ACT

MGI Engineering                                                               27

February 2006
<PAGE>
4 CONFIDENTIALITY AGREEMENT

THIS AGREEMENT made this _____________________ day of _____________________ 200
by and between _____________________, a corporation organized and existing under
the laws of _____________________ having offices at _____________________
(hereafter called the << Corporation>>), and Movado Group, Inc., a corporation
organized and existing under the laws of the State of New York, having offices
at 650 From Road, Paramus, N. J. 07652 (hereafter called MGI).

      4.1 WITNESSETH

Whereas, the parties contemplate establishing a business relationship for the
purpose of the Corporation manufacturing, producing, and supplying to MGI fully
assembled watches and component parts therefore, bearing or to be sold by MGI or
certain of its affiliates under the trademark Lacoste or such other trademarks
owned by LACOSTE which will make it necessary and desirable that MGI disclose to
the Corporation confidential information, including all knowledge and data which
is made available by MGI or developed in the course of the parties' business
relationship, proprietary to the MGI (hereinafter called the "Information")
concerning current, future or proposed watch designs, ideas, prints, sketches,
samples, models, drawings, specifications, production quantities, costs,
customers, know how and the like relating to such product or products or to
MGI's business or potential interest;

NOW, THEREFORE, in consideration of the premises and the mutual covenants
hereinafter contained, the parties agree:

1.  The Corporation, upon receiving the Information from MGI, shall not
    communicate such Information to any third party and shall use its best
    efforts and take all necessary precautions to prevent inadvertent
    disclosures of such Information to any third party.

2.  The Corporation shall neither use the Information for its own account nor
    circulate it within its own organization except to the extent necessary for:

MGI Engineering                                                               28

February 2006
<PAGE>
    a)  Negotiations, discussions and consultations with personnel or authorized
        representatives of MGI or the Corporation;

    b)  Supplying MGI with goods or services at its order;

    c)  Preparing bids, estimates and proposals for submission to MGI; and

    d)  Any purpose MGI may hereunder authorize in writing

The Corporation agrees that if the Information is circulated pursuant to the
foregoing provisions (a) through (d), any person receiving the Information shall
be directed and required by the Corporation to maintain the Information in
confidence. The Corporation shall use its best efforts and take all necessary
precautions to prevent inadvertent disclosure of the Information and shall not
manufacture or permit any third party to manufacture any goods employing or
adopted from any of such Information or the Trademarks.

3.  The obligations of Paragraphs 1 and 2 hereof shall terminate with respect to
    any particular portion of the Information when the Corporation can document
    that it was in the public domain at the time of its disclosure.

MGI Engineering                                                               29

February 2006
<PAGE>
4.  All materials, including, without limitation, documents, drawings, models,
    apparatus, sketches, designs, and lists, furnished to the Corporation by or
    on behalf of MGI shall remain the property of, and shall be returned upon
    demand to, MGI together with all copies made thereof.

5.  Because the Information revealed by MGI to the Corporation under this
    Agreement is unique and proprietary to MGI and MGI does not have an adequate
    remedy at law to protect its interests, the Corporation agrees that MGI
    shall be entitled to injunctive relief, in addition to such remedies and
    relief that would, in the event of a breach, be available to it.

6.  This Agreement shall be construed in accordance with the laws of the State
    of New Jersey.

7.  In the event this Agreement is also executed by one or more individuals as a
    guarantor or guarantors of the performance by the Corporation of its
    obligations hereunder, then each of such individual(s) ("Guarantor") hereby
    guaranties the performance by the Corporation of its obligations hereunder,
    such guaranty being an absolute and continuing guaranty of performance, and
    Guarantor shall be personally liable for any violation by the Corporation of
    this Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by their duly authorized officers as of the day and year first above written.

MOVADO GROUP, INC.

By :
            ------------------------------------

Name:
            ------------------------------------

Title:
            ------------------------------------

CORPORATION

By:
            ------------------------------------

MGI Engineering                                                               30

February 2006
<PAGE>
Name:
            ------------------------------------

Title:
            ------------------------------------

GUARANTOR

By:
            ------------------------------------

Name:
            ------------------------------------

MGI Engineering                                                               31

February 2006
<PAGE>
REMARKS

MGI Engineering                                                               32

February 2006
<PAGE>
* CONFIDENTIAL PORTION OF THIS EXHIBIT OMITTED AND FILED SEPARATELY WITH THE SEC
PURSUANT TO RULE 24b-2 OF THE 1934 ACT

GAR UPDATES

<Table>
<Caption>
                                   GAR UPDATES
--------------------------------------------------------------------------------
REF  COMPONENT          ITEM           REASON  DESCRIPTION OF CHANGE        DATE
---  ---------          ----           ------  ---------------------        ----
<S>  <C>                <C>            <C>     <C>                          <C>
</TABLE>

MGI Engineering                                                               33

February 2006
<PAGE>
(MOVADO LOGO)

MGI Engineering                                                               34

February 2006
<PAGE>
Engineering
                                                Nidaustrasse 35 2501 Biel/Bienne
Switzerland

MGI Engineering                                                               35

February 2006
<PAGE>
MGI Engineering                                                               36

February 2006

<PAGE>
                                  SCHEDULE XII

                   LACOSTE WATCHES APPROVED RETAILER CONTRACT

                   LACOSTE WATCHES APPROVED RETAILER CONTRACT

Between:

(NAME OF THE COMPANY) having its registered office at _______________________,
duly represented by Mr ______________________, which is the exclusive
distributor of Lacoste Watches (hereinafter referred to as the "LACOSTE
WATCHES") in (country concerned) (hereinafter referred to as the "TERRITORY").

            hereinafter referred to as the "DISTRIBUTOR",

And:

(NAME OF THE COMPANY) having its registered office at _______________________,
duly represented by Mr ______________________, which runs a point of sale
situated at (full address) under the trade name _______________________
(hereinafter referred to as "the POINT OF SALE").

            hereinafter referred to as the "APPROVED RETAILER".

WITNESSETH:

WHEREAS, MGI Luxury Group SA (hereinafter referred to as the "LICENSEE") is the
exclusive worldwide licensee of the Lacoste Group for the LACOSTE WATCHES and
LICENSEE has appointed DISTRIBUTOR as the exclusive distributor of the LACOSTE
WATCHES in the TERRITORY under the terms of a distributorship agreement between
LICENSEE and DISTRIBUTOR (hereinafter referred to as the "DISTRIBUTION
AGREEMENT").

WHEREAS, for the reasons stated in the general conditions of distribution of the
DISTRIBUTOR (hereinafter referred to as the "GENERAL CONDITIONS OF
DISTRIBUTION") annexed to the present contract (Schedule ....) the LACOSTE
WATCHES are distributed through a selective distribution system, that is the
LACOSTE WATCHES are distributed at the points of sale which satisfy the
selection criteria (hereinafter referred to as the "SELECTION CRITERIA") defined
by the companies Lacoste S.A., Lacoste Alligator S.A. and Sporloisirs S.A.
(hereinafter collectively referred to as the "LACOSTE GROUP"), which are
detailed in the GENERAL CONDITIONS OF DISTRIBUTION.

WHEREAS, the DISTRIBUTOR has visited and evaluated the POINT OF SALE.

WHEREAS, further to such evaluation it appears that the POINT OF SALE and the
sales staff employed by the Approved Retailer at the POINT OF SALE satisfy the
SELECTION CRITERIA.

WHEREAS, consequently, the DISTRIBUTOR may enter into this contract with

MGI Engineering                                                               37

February 2006
<PAGE>
                                      -2-

the APPROVED RETAILER for the distribution of the LACOSTE WATCHES at the
aforementioned POINT OF SALE.

THE PARTIES HEREBY AGREE AS FOLLOWS:

ARTICLE 1 - RIGHTS GRANTED

The DISTRIBUTOR hereby grants, and the APPROVED RETAILER hereby accepts for the
duration of the present contract (hereinafter referred to as the "CONTRACT"),
the non exclusive right to sell the LACOSTE WATCHES at the POINT OF SALE in
accordance with the terms and conditions set forth herein.

The CONTRACT, its Annexes and the GENERAL CONDITIONS OF DISTRIBUTION in force
determine the rights and obligations of the two parties.

ARTICLE 2 - MATERIAL CONDITIONS OF CONTRACT

The execution and existence of the CONTRACT are subject to the DISTRIBUTOR
certifying that the POINT OF SALE of the APPROVED RETAILER and the sales staff
of the POINT OF SALE satisfy the SELECTION CRITERIA.

ARTICLE 3 - OBLIGATIONS OF THE APPROVED RETAILER

3.1   The APPROVED RETAILER undertakes, for the duration of the CONTRACT, that
      the POINT OF SALE and the sales staff of the POINT OF SALE satisfy the
      SELECTION CRITERIA.

3.2   Fittings and Management of the POINT OF SALE

      3.2.1 The sales area of the POINT OF SALE shall always permit the
            presentation of the LACOSTE WATCHES in a sufficient area.

            The APPROVED RETAILER shall display the LACOSTE WATCHES separately
            from other brands sold at the POINT OF SALE. The counters, posters
            and other POS material, which shall be supplied to it by the
            DISTRIBUTOR, shall be well positioned.

            The APPROVED RETAILER shall affix prominently on the window of the
            POINT OF SALE or display inside the POINT OF SALE, a sign or sticker
            which shall be furnished by the DISTRIBUTOR confirming its quality
            as APPROVED RETAILER for LACOSTE WATCHES.

      3.2.2 All items bearing any trademark owned by the LACOSTE GROUP ("LACOSTE
            TRADEMARKS") used by the APPROVED RETAILER on its shop front (such
            as awning, sign, etc...) in the shop window or inside the POINT OF
            SALE shall be exclusively those supplied by the DISTRIBUTOR or
            exceptionally those which have received the prior and express
            written approval of the DISTRIBUTOR.

3.3   Supplies

MGI Engineering                                                                2

February 2006
<PAGE>
                                      -3-

      The APPROVED RETAILER shall purchase the LACOSTE WATCHES from the
      DISTRIBUTOR in accordance with the terms and conditions contained herein
      and in the GENERAL CONDITIONS OF DISTRIBUTION. Nevertheless, within the
      European Economic Area (i.e. European Union + Iceland, Liechtenstein, and
      Norway) the APPROVED RETAILER is also entitled to buy the LACOSTE WATCHES
      from and sell the LACOSTE WATCHES to (i) any authorized exclusive
      distributor appointed by and under contract with Licensee for the
      distribution of the LACOSTE WATCHES and (ii) any other approved retailer
      approved by and under contract with LICENSEE or a Lacoste watch
      distributor for the retail sale of the LACOSTE WATCHES located in any of
      the countries which are part of the European Economic Area, except to or
      from Lacoste boutiques ("LACOSTE BOUTIQUES") and Lacoste corners ("LACOSTE
      CORNERS") which are principally devoted to the sale of Lacoste apparel
      products and only on a subordinate basis other Lacoste products including
      LACOSTE WATCHES. Because of their strong specificity, the LACOSTE
      Boutiques and the LACOSTE CORNERS constitute a selective distribution
      system which is distinct from the selective distribution system organised
      for the LACOSTE WATCHES. The APPROVED RETAILER shall ensure before any
      resale that the buyer is an approved retailer of LACOSTE WATCHES. The
      APPROVED RETAILER shall keep for a minimum period of twelve (12) months as
      from the date of purchase and/or sale of the LACOSTE WATCHES, a copy of
      the invoices corresponding to these purchases and sales permitted under
      this Article 3.3. The DISTRIBUTOR shall be entitled to inspect and copy
      these invoices if it reasonably determines that the APPROVED RETAILER may
      have purchased or sold LACOSTE WATCHES outside the selective distribution
      system set up for the LACOSTE WATCHES within the European Economic Area.

3.4   Sales

      3.4.1 The price at which the LACOSTE WATCHES will be sold by the
            DISTRIBUTOR to the APPROVED RETAILER and other sales conditions
            applicable to the LACOSTE WATCHES will be the one applicable in the
            TERRITORY at the date the order is received.

      3.4.2 The APPROVED RETAILER shall continuously offer for sale an
            appropriate assortment of the LACOSTE WATCHES.

      3.4.3 In addition, the APPROVED RETAILER shall ensure that the LACOSTE
            WATCHES are only sold in their original presentation and shall
            respect the recommendations made by the DISTRIBUTOR concerning the
            merchandising of the LACOSTE WATCHES.

      3.4.4 The APPROVED RETAILER shall not sell at its POINT OF SALE other
            products in immediate proximity to the LACOSTE WATCHES likely to
            damage or devalue the image of the LACOSTE TRADEMARKS and/or the
            LACOSTE WATCHES.

      3.4.5 Subject to Article 3.3, the APPROVED RETAILER undertakes not to sell
            the LACOSTE WATCHES other than at the POINT OF SALE at the address
            stated at the very beginning of this CONTRACT exclusively to the
            ultimate consumer.

MGI Engineering                                                                3

February 2006
<PAGE>
                                      -4-

      3.4.6 The APPROVED RETAILER shall not sell LACOSTE WATCHES by mail order
            or by internet, unless the APPROVED RETAILER has received a prior
            written authorisation from the DISTRIBUTOR confirming that the
            selection objective criteria set up for these kind of sale are
            satisfied.

      3.4.7 The APPROVED RETAILER shall be free to fix its resale prices
            according to the laws and regulations in force. The breakdown of the
            recommended prices that may be communicated to the APPROVED RETAILER
            by the DISTRIBUTOR are only indicative.

3.5   Advertising and promotional activities of the APPROVED RETAILER

      Should the APPROVED RETAILER wish to carry out advertising and promotional
      activities of any sort itself, it shall obtain the prior written approval
      of the DISTRIBUTOR on the content and means of such activities with the
      exception of price.

      In any event, the APPROVED RETAILER shall in such advertising and
      promotional activities:

      -     use exclusively the visual designs, lettering, emblems and logos
            approved by the DISTRIBUTOR;

      -     ensure that the standing and image of the Lacoste trademarks but
            also personal reputation of Mr. Rene Lacoste and his family are
            protected.

ARTICLE 4 - PROTECTION OF LACOSTE INTELLECTUAL PROPERTY RIGHTS

The APPROVED RETAILER acknowledges that the LACOSTE TRADEMARKS and models of the
LACOSTE WATCHES are the exclusive property of the LACOSTE GROUP and undertakes
to strictly respect the intellectual property rights of the latter.

Consequently, it expressly undertakes not to use the LACOSTE TRADEMARKS other
than solely for purposes of performing its obligations under this CONTRACT.
Under no circumstances shall the APPROVED RETAILER use the Lacoste trademarks as
a business name, company name, shop sign or any other use or print them on the
commercial documents of its business.

In addition, the APPROVED RETAILER undertakes to immediately notify the
DISTRIBUTOR of any act by a third party of which it may have knowledge and which
is likely to constitute a counterfeit or an imitation of the Lacoste trademarks
or models of the LACOSTE WATCHES.

ARTICLE 5 - DURATION

The CONTRACT shall came into force on ________________ and shall end on (one
year after)_______________ , unless sooner terminated in accordance with the
conditions set out in the present CONTRACT or by mutual consent of parties. It
shall be automatically renewed for successive renewal periods of one (1) year
each unless either party notifies the other at the latest three (3) months
before the expiration of the initial period or of any subsequent renewal
period(s).

MGI Engineering                                                                4

February 2006
<PAGE>
                                      -5-

ARTICLE 6 - TERMINATION

6.1   Without prejudice of what is elsewhere provided in the CONTRACT, the
      DISTRIBUTOR shall be entitled to terminate the CONTRACT at any time
      without having to pay indemnity of any nature to the APPROVED RETAILER:

      6.1.1 If the POINT OF SALE no longer satisfies the SELECTION CRITERIA, in
            which event the CONTRACT shall end six (6) months after notice
            thereof by the DISTRIBUTOR to the APPROVED RETAILER.

      6.1.2 In the event that the APPROVED RETAILER fails to comply with any of
            its other obligations thirty (30) days after notice thereof by
            Distributor and no remedy of the breach having been effected. This
            delay of thirty (30) days is reduced to fifteen (15) in case of
            payment default.

      6.1.3 Without notice, in case of termination or non-renewal of (a) the
            master licence agreement between LICENSEE and LACOSTE GROUP, or (b)
            of the DISTRIBUTION AGREEMENT, regardless of cause.

      6.1.4 Without having to give prior notice should (a) the legal form of the
            APPROVED RETAILER be modified, (b) the business or part of the
            business be sold, (c) the business be leaded, hired, purchased,
            contributed to another business or APPROVED RETAILER, pledged or
            subject to a management contract, (d) the APPROVED RETAILER be
            dissolved, (e) the business be discontinued or the POINT OF SALE of
            the APPROVED RETAILER be closed during a period greater than two (2)
            months; or

      6.1.5 Without prior notice, in the event of the APPROVED RETAILER's
            voluntary or compulsory liquidation, bankruptcy, legal settlement or
            placement of a receiving order or in any equivalent situation.

            The APPROVED RETAILER shall inform the DISTRIBUTOR if one of the
            events covered by Articles 6.1.4 and 6.1.5 occur as soon as the
            event occurs, the DISTRIBUTOR being the sole party to decide on its
            continuance of the CONTRACT.

      6.1.6 Notwithstanding anything to the contrary contained herein, with full
            and immediate effect:

            -     in the event the APPROVED RETAILER fails to comply with
                  Articles 3.2.2 or 3.4.5 of the CONTRACT;

            -     within the European economic Area (i.e. European Union +
                  Iceland, Liechtenstein, and Norway), if the APPROVED RETAILER
                  either purchases or resells LACOSTE WATCHES outside from the
                  selective distribution set up for LACOSTE WATCHES;

            -     if the APPROVED RETAILER is involved in the manufacturing
                  and/or sale of counterfeits.

MGI Engineering                                                                5

February 2006
<PAGE>
                                      -6-

6.2   In the case of termination or non-renewal, for whatever reason, of the
      DISTRIBUTION AGREEMENT this CONTRACT shall likewise terminate within the
      same time limits, and the APPROVED RETAILER shall be informed within a
      reasonable period. The LACOSTE GROUP may nevertheless decide at its sole
      option to assign the CONTRACT to the new Lacoste exclusive distributor in
      charge of the distribution of LACOSTE WATCHES in the TERRITORY.

ARTICLE 7 - SITUATION OF THE PARTIES IN THE EVENT OF TERMINATION OR NON-RENEWAL
OF THE CONTRACT

In the event of non-renewal or termination of this CONTRACT, the DISTRIBUTOR
shall have the right, at its own discretion:

      -     to repurchase or to have a third party it may appoint repurchase
            immediately, all or part of the stock of LACOSTE WATCHES of the
            APPROVED RETAILER at the price paid by the APPROVED RETAILER after
            deduction of depreciation of the LACOSTE WATCHES, and/or,

      -     to grant the APPROVED RETAILER a period of up to three (3) months to
            sell such stock. At the end of the said period of three months the
            APPROVED RETAILER shall not be entitled to resell the stock, except
            with the approval of the DISTRIBUTOR.

The APPROVED RETAILER shall return to the DISTRIBUTOR all elements bearing the
Lacoste trademarks, if need be, furniture and the sticker "Approved Lacoste
Watches Retailer" including, without limitation, all POS material. Nevertheless,
it may retain the furniture provided that all references to Lacoste and to
Lacoste trademarks are removed.

In addition, the termination or the non-renewal of the CONTRACT shall entail the
immediate cancellation of all pending orders.

It is expressly agreed between the parties that under no circumstances
whatsoever will the end, termination or non-renewal of the CONTRACT provide the
APPROVED RETAILER with the benefit of any right of indemnity of whatever nature,
regardless of the cause of or reason for the end, non-renewal or termination,
the revenue that the APPROVED RETAILER derived from the sales of the LACOSTE
WATCHES during the application of the CONTRACT having fully defrayed all risks,
costs and expenses incurred by the APPROVED RETAILER during its performance
throughout the duration of the CONTRACT.

ARTICLE 8 - LIABILITY

APPROVED RETAILER shall, at its own cost and expense, keep and maintain in full
force and effect for the duration of this CONTRACT, a policy of commercial
general liability insurance insuring APPROVED RETAILER's activities with respect
to the POINT OF SALE against loss, damage or liability for personal injury or
death or loss or damage to property with limits not less than those customarily
maintained by similar retail operations in the TERRITORY. APPROVED RETAILER
shall inform DISTRIBUTOR of the terms of said insurance upon request from time
to time. APPROVED RETAILER hereby releases DISTRIBUTOR, LICENSEE, the LACOSTE
GROUP and each of their respective affiliates from liability, and waives all
right of recovery against each of them, for any injury, loss or damage, whether
due

MGI Engineering                                                                6

February 2006
<PAGE>
                                      -7-

to negligence or any other cause, if such injury, loss or damage is caused
by any of the perils which are covered by the foregoing insurance policy or are
required to be covered by such insurance pursuant to this CONTRACT.

ARTICLE 9 - APPLICABLE LAW / JURISDICTION

The CONTRACT is governed by the law of the TERRITORY.

The Court of (to be completed) shall have the exclusive jurisdiction on any
litigation resulting from the interpretation or execution of this CONTRACT.

ARTICLE 10 - NOTICES

Any notices required in accordance with any of the provisions hereof shall be in
writing and delivered or mailed by registered mail, or by an internationally
recognized overnight courier service (e.g., Federal Express), to the address of
the parties set forth on the first page hereof.

ARTICLE 11 - GENERAL TERMS AND CONDITIONS

11.1  Neither party hereto shall be liable for any delay or failure in
      fulfilling the obligations hereunder (except for the payment of money)
      when such delay or failure is caused by riots, war (declared or not), or
      hostilities between any nations; acts of God, fire, storm, flood or
      earthquake; strikes, labor disputes, shortage or delay of carriers, or
      shortage of raw materials, labor power or other utility services; any
      governmental restrictions; or any other unforeseeable contingencies beyond
      the control of the party.

11.2  In view of the fact that this CONTRACT has been entered into because of
      the confidence that Distributor has in APPROVED RETAILER, it is understood
      that the terms and conditions hereof shall be performed by APPROVED
      RETAILER from the POINT OF SALE only and that this Agreement may not be
      assigned, whether by operation of law or otherwise, without the prior
      written approval of DISTRIBUTOR which DISTRIBUTOR may withhold or grant in
      its sole and absolute discretion and any such purported assignment by
      APPROVED RETAILER without such approval by DISTRIBUTOR shall be void and
      of no effect.

11.3  When interpreting the terms and conditions of this CONTRACT, the English
      language shall be applied exclusively.

11.4  This CONTRACT, including the terms and conditions incorporated by
      reference, constitutes the entire agreement of the parties with respect to
      the subject matter hereof and prevails over and supersedes all prior
      agreements, whether written or oral, relating to the subject matter hereof
      and may not be altered, waived, modified, or discharged except by an
      express writing referring to this CONTRACT signed on behalf of the parties
      hereto by their duly authorized representatives.

11.5  The failure of either party hereto to enforce at any time any of the
      provisions or terms of this CONTRACT, or any rights in respect thereof, or
      the exercise of or failure to exercise by either party any rights or any
      of its elections herein provided, shall in no way

MGI Engineering                                                                7

February 2006
<PAGE>
                                      -8-

      be considered to be a waiver of such provisions, terms, rights or
      elections or in any way to affect the validity of this CONTRACT.

11.6  Should any provision of this CONTRACT held invalid, incomplete or
      unenforceable, this will not affect the validity of the remaining
      provisions. The parties shall replace the invalid incomplete or
      unenforceable provision by provision which comes closest to the commercial
      goal that the parties intended to achieve on the conclusion of this
      agreement by the invalid, uncompleted and unenforceable provision.
      Notwithstanding anything to the contrary contained herein, in the event of
      any conflict or inconsistency between any term or provision of this
      CONTRACT and the DISTRIBUTION AGREEMENT, the latter shall control.

Executed in two original copies at _________________
on _________________

      THE DISTRIBUTOR                           THE APPROVED RETAILER

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

MGI Engineering                                                                8

February 2006
<PAGE>
                                      -9-

                                INDEX OF CONTENTS
<TABLE>
<S>         <C>                                                                                                      <C>
ARTICLE 1  - RIGHTS GRANTED..........................................................................................2
ARTICLE 2  - MATERIAL CONDITIONS OF CONTRACT.........................................................................2
ARTICLE 3  - OBLIGATIONS OF THE APPROVED RETAILER....................................................................2
ARTICLE 4  - PROTECTION OF LACOSTE INTELLECTUAL PROPERTY RIGHTS......................................................4
ARTICLE 5  - DURATION................................................................................................4
ARTICLE 6  - TERMINATION.............................................................................................5
ARTICLE 7  - SITUATION OF THE PARTIES IN THE EVENT OF TERMINATION OR NON-RENEWAL OF THE CONTRACT.....................6
ARTICLE 8  - LIABILITY...............................................................................................6
ARTICLE 9  - APPLICABLE LAW / JURISDICTION...........................................................................7
ARTICLE 10 - NOTICES.................................................................................................7
ARTICLE 11 - GENERAL TERMS AND CONDITIONS............................................................................7
</TABLE>

MGI Engineering                                                                9

February 2006
<PAGE>
                                  SCHEDULE XIII

               LACOSTE WATCHES GENERAL CONDITIONS OF DISTRIBUTION

               LACOSTE WATCHES GENERAL CONDITIONS OF DISTRIBUTION

I/ The Lacoste Group (designating jointly Lacoste S.A., Sporloisirs S.A.,
Lacoste Alligator S.A.), wants to: (i) preserve the image of Lacoste trademarks
worldwide, the models and Lacoste products sold under Lacoste trademarks
(hereinafter referred to as the "LACOSTE TRADEMARKS"); (ii) prevent
counterfeiting of the LACOSTE TRADEMARKS in the interest of consumers; and
(iii)offer to its consumers an adequate setting and good quality service for
Lacoste watches (hereinafter referred to as the "LACOSTE WATCHES") (together
with all other goods sold under the LACOSTE TRADEMARKS, hereinafter to as
"LACOSTE PRODUCTS"). For these reasons, the Lacoste Group has decided that
LACOSTE WATCHES, as with the LACOSTE PRODUCTS, shall be sold worldwide through a
selective distribution system. The Lacoste Group has also appointed MGI Luxury
Group S.A. as its exclusive worldwide licensee for the creation, development,
manufacture, distribution, marketing, merchandising, advertising, promotion and
sale of LACOSTE WATCHES (hereinafter referred to as the "LICENSEE"). The Lacoste
Group and LICENSEE require that LACOSTE WATCHES be distributed only through
selected retailers. In order to become an approved Lacoste Watches retailer
(hereinafter referred to as the "APPROVED RETAILER") within the Lacoste
selective distribution network set up for the LACOSTE WATCHES, a retailer shall
meet the standards of performance as detailed below for Lacoste watches
selection criteria (hereinafter referred to as the "SELECTION CRITERIA").

The trade name of the point of sale or of the department store, or of the space
in which the point of sale or the watches department or the point of sale is
located, must always reflect the prestige of the Lacoste brand. Consequently,
the shop sign must be compatible with the principles which govern the
distribution of the LACOSTE WATCHES, which are luxury and high quality products.
Thus, the Lacoste brand shall not be sold by retail outlets under trade names
whose image is associated with an absence of or limited customer service,
prestige or sophisticated in-store design. No signage at the point of sale may
include terms or logos which reasonably might depreciate the image of the
Lacoste brand or the LACOSTE WATCHES.

      a)    The location and environment of the point of sale (type and category
            of the building, location in the town in question, type of shops in
            the neighbourhood) shall remain at all times compatible with Lacoste
            brand image. The sale area shall be sufficient to permit the
            presentation of the LACOSTE WATCHES in a sufficient shopping space
            without disproportion with the other brands offered for sale and
            allowing to distinguish them. The frontage shall be made of
            materials of good quality, well maintained and attractive.

MGI Engineering                                                               10

February 2006
<PAGE>
      b)    The shop sign shall be well maintained and attractive. The window
            dressing shall be of good quality and sophisticated. The lighting
            shall be sufficient and sophisticated.

      c)    The type, brand and nature of the products sold in the outlet shall
            be compatible with Lacoste brand image.

      d)    The sale personnel shall be well qualified.

      e)    The financial capabilities and solvency guarantees shall be good.

II/ APPLICATION PROCEDURE TO OPEN AN ACCOUNT

      a)    Any application (hereinafter referred to as the "APPLICATION") to
            open an account to become an approved retailer for the sale of
            LACOSTE WATCHES shall be made in writing to the authorized wholesale
            distributor of LACOSTE WATCHES in the country where the prospective
            point of sale is located (hereinafter referred to as the
            "DISTRIBUTOR"). The DISTRIBUTOR shall promptly send the completed
            APPLICATION to LICENSEE.

      b)    Within a maximum delay of four months as from the receipt of the
            APPLICATION, the LICENSEE shall evaluate the point of sale in order
            to determine if the point of sale, subject to the APPLICATION, and
            its sales personnel satisfy the SELECTION CRITERIA.

      c)    Following this evaluation :

            (i)   if the point of sale and staff do not satisfy the SELECTION
                  CRITERIA, the LICENSEE shall notify the DISTRIBUTOR which
                  shall so inform the applicant in writing and shall list in
                  writing the elements which do not satisfy the SELECTION
                  CRITERIA. Consequently, the DISTRIBUTOR shall turn down the
                  APPLICATION;

            (ii)  if the point of sale and staff satisfy the SELECTION CRITERIA,
                  the LICENSEE shall notify the DISTRIBUTOR which shall so
                  inform the applicant in writing and provide the applicant
                  (which shall then be deemed an APPROVED RETAILER) with a
                  Lacoste Watches Approved Retailer contract.

III/ SATISFACTION OF SELECTION CRITERIA

The DISTRIBUTOR shall check, through an evaluation, that the APPROVED RETAILER
and its sales personnel continue to satisfy the SELECTION CRITERIA. If as a
result of such evaluation the APPROVED RETAILER and its sale personnel continue
to satisfy the SELECTION CRITERIA, the DISTRIBUTOR shall inform the APPROVED
RETAILER and LICENSEE in writing.

If as a result of such evaluation, the APPROVED RETAILER or its sales personnel
no longer appear to satisfy the SELECTION CRITERIA, the DISTRIBUTOR shall notify
LICENSEE in writing which shall review such evaluation and, after consultation
with DISTRIBUTOR, determine whether the

MGI Engineering                                                               11

February 2006
<PAGE>
APPROVED RETAILER continues to satisfy the SELECTION CRITERIA. If, after such
review, LICENSEE determines that the APPROVED RETAILER no longer satisfies the
SELECTION CRITERIA, it shall so notify DISTRIBUTOR which:

      -     shall inform the APPROVED RETAILER in writing and shall list the
            elements which do not satisfy the SELECTION CRITERIA;

      -     shall also ask the APPROVED RETAILER to take the appropriate
            measures so that the SELECTION CRITERIA be satisfied, within a delay
            of six (6) months as from the date of receipt of the above mentioned
            letter.

At the end of the of six month delay, a new evaluation shall be carried out by
the DISTRIBUTOR and forwarded to LICENSEE for review, and after this new
evaluation and review:

            (i)   either LICENSEE shall determine that the SELECTION CRITERIA
                  are satisfied and so inform the DISTRIBUTOR which shall inform
                  the APPROVED RETAILER in writing accordingly;

            (ii)  or LICENSEE shall determine that the SELECTION CRITERIA are
                  still not satisfied and so inform the DISTRIBUTOR which shall
                  inform the APPROVED RETAILER in writing and shall list the
                  elements which still do not satisfy the SELECTION CRITERIA. In
                  such a case the DISTRIBUTOR shall, upon instruction from
                  LICENSEE, terminate the Lacoste watches approved retailer
                  contract signed with the APPROVED RETAILER (hereinafter
                  referred to as the "CONTRACT") within the conditions set out
                  in article 6.1.1 of the Lacoste watches approved retailer
                  contract. Nevertheless, if the APPROVED RETAILER has started
                  repairs or demonstrates that it decided to do so, the
                  DISTRIBUTOR may then grant another delay of six (6) months. At
                  the end of this delay, a new evaluation shall be carried out
                  within the same conditions as the one described above in (i)
                  and in the first two sentences of (ii).

MGI Engineering                                                               12

February 2006
<PAGE>
                                  SCHEDULE XIV
                                       *

* CONFIDENTIAL PORTION OF THIS EXHIBIT OMITTED AND FILED SEPARATELY WITH THE SEC
PURSUANT TO RULE 24b-2 OF THE 1934 ACT.

MGI Engineering                                                               13

February 2006
<PAGE>
                                   SCHEDULE XV
                                        *
                                        *

* CONFIDENTIAL PORTION OF THIS EXHIBIT OMITTED AND FILED SEPARATELY WITH THE SEC
PURSUANT TO RULE 24b-2 OF THE 1934 ACT.

MGI Engineering                                                               14

February 2006
<PAGE>
                                  SCHEDULE XVI

             RULES FOR THE CALCULATION OF THE PRESENTATION SURFACES

                                   METHODOLOGY

The PRESENTATION SURFACE represents, within the SALES SURFACE, the total surface
effectively used for the presentation and the sale of products on the furniture
(fixed to the walls or free-standing) or displays, excluding the cash counter,
the shop windows, the fitting rooms, the areas used for customers traffic, the
security issues.

The PRESENTATION SURFACE is calculated by adding the surfaces of each part of
the furniture (as an example : surface of a shelf of a piece of furniture fixed
to the walls, free-standing furniture in whole or in part, etc.) divided by the
set number of elements ("ratio") that can be placed atop of one another allowing
the presentation or the sale of the Lacoste products within the LACOSTE BOUTIQUE
or the LACOSTE CORNER.

The attached schedules list the main pieces of furniture, according to the
different generations of the Lacoste furniture (1999, 2000 and 2002), including
the furniture specific to the OTHER LACOSTE PRODUCTS and the LACOSTE WATCHES.
This schedule gives the values in sq. m. of each piece of furniture and
therefore allows the calculation of the total PRESENTATION SURFACE.

Any new piece of furniture, or any new generation of furniture, shall be
included in a supplementary schedule established under the same principles.

Therefore, in a LACOSTE BOUTIQUE or in a LACOSTE CORNER, a simple counting of
the elements according to this schedule shall allow all interested persons to
calculate :

      -     the total PRESENTATION SURFACE

      -     the PRESENTATION SURFACE of the LACOSTE APPAREL PRODUCTS

      -     the PRESENTATION SURFACE of the LACOSTE WATCHES and of the OTHER
            LACOSTE PRODUCTS

      -     the percentage of the PRESENTATION SURFACE of the LACOSTE WATCHES
            and of the OTHER LACOSTE PRODUCTS / the total PRESENTATION SURFACE.

MGI Engineering                                                               15

February 2006
<PAGE>

             GRILLE DE CALCUL DES SURFACES DE PRESENTATION DANS LES
                          BOUTIQUES ET CORNERS LACOSTE

STANDARD MOBILIER :                                             LACOSTE 2000 [ ]
                                                                LACOSTE 1999 [ ]

ADRESSE :
SUPERFICIE (*) COMMERCIALE (**) :

<TABLE>
<CAPTION>
                                                   D          G                          K                  O           P        Q
                                                                TOTAL SURFACE             DONT, APL             CALCUL SURFACES
                                                              PRESENTATION (***)                                 UNITAIRES (S/U)
REF.  MOBILIER   DESCRIPTION                       S/U (****) UNITES     TOTAL           UNITES TOTAL     largeur  profondeur  ratio
<S>              <C>                               <C>        <C>        <C>             <C>    <C>       <C>      <C>         <C>

                 PRESENTOIRS MURAUX 2000

MOHMUR 101       MURAL 1000 MM                     O*P/Q m2                G*D m2                 D*K  m2 1.000      0.350       1.0
MOHMUR 102       MURAL 500 MM                      0.175 m2              0.000 m2               0.000  m2 0.500      0.350       1.0
                 dont etageres 1000 mm APL         O*P/Q m2                                       D*K  m2 1.000      0.350       6.0
                 dont etageres 500 mm APL          0.029 m2                                     0.000  m2 0.500      0.350       6.0
MOHACC 441       dont presentoirs ceintures 500 mm 0.088 m2                                     0.000  m2 0.500      0.350       2.0
MOHMUR 11x & 12x TOTEMS ET EPIS                    0.285 m2              0.000 m2               0.000  m2 0.475      0.600       1.0
                 dont etageres APL                 0.095 m2                                     0.000  m2 0.475      0.600       3.0

                 PRESENTOIRS CENTRAUX 2000

MOHCEN 034       CENTRAL DOUBLE FACE 1200 MM       0.840 m2              0.000 m2               0.000  m2 1.200      0.350       0.5
MOHCEN 341       CENTRAL DOUBLE FACE 686 MM        0.480 m2              0.000 m2               0.000  m2 0.686      0.350       0.5
                 dont etageres APL                 0.053 m2                                     0.000  m2 0.600      0.350       4.0
MOHACC 441       dont presentoirs ceintures 500 mm 0.088 m2                                     0.000  m2 0.500      0.350       2.0
MOHVIT 31x       VITRINE VERRE                     0.600 m2              0.000 m2               0.000  m2 1.000      0.600       1.0
                 dont etageres APL                 0.200 m2                                     0.000  m2 1.000      0.600       3.0
MOHVIT 513       VITRINE RONDE                     0.720 m2              0.000 m2               0.000  m2 1.200      0.600       1.0
                 dont etageres APL                 0.240 m2                                     0.000  m2 1.200      0.600       3.0
MOHTAB 317       TABLE BOIS 2000 MM                1.820 m2              0.000 m2               0.000  m2 2.000      0.910       1.0
MOHTAB 35x & 36x TABLE GIGOGNE 980 MM              0.588 m2              0.000 m2               0.000  m2 0.980      0.600       1.0
MOHTAB 353       TABLE GIGOGNE 760 MM              0.456 m2              0.000 m2               0.000  m2 0.760      0.600       1.0
                 DIVERS (calcule)                        m2                    m2                      m2
                 DIVERS (calcule)                        m2                    m2                      m2

                 PRESENTOIRS MURAUX 1999

MSMXX xxx        MURAL                             0.269 m2              0.000 m2               0.000  m2 0.791      0.340       1.0
                 dont etageres APL                 0.038 m2                                     0.000  m2 0.791      0.340       7.0
MCPTOT xxx       TOTEMS                            0.104 m2              0.000 m2               0.000  m2 0.294      0.355       1.0

                 PRESENTOIRS CENTRAUX 1999

MSCENT 001       CENTRAL DOUBLE FACE 1200 MM       0.538 m2              0.000 m2               0.000  m2 0.791      0.340       0.5
MSCENT 002       CENTRAL DOUBLE FACE 2000 MM       1.076 m2              0.000 m2               0.000  m2 1.582      0.340       0.5
                 dont etageres APL                 0.067 m2                                     0.000  m2 0.791      0.340       4.0
MOHVIT 090       VITRINE VERRE 1000 MM             0.600 m2              0.000 m2               0.000  m2 1.000      0.600       1.0
                 dont etageres APL                 0.200 m2                                     0.000  m2 1.000      0.600       3.0
MOHVIT 150       VITRINE VERRE 1500 MM             0.900 m2              0.000 m2               0.000  m2 1.500      0.600       1.0
                 dont etageres APL                 0.300 m2                                     0.000  m2 1.500      0.600       3.0
MCOTAB BAS       TABLE SUR SOCLE PT FORMAT         0.600 m2              0.000 m2               0.000  m2 1.200      0.500       1.0
MCOTAB DEB       TABLE SUR SOCLE GD FORMAT         0.984 m2              0.000 m2               0.000  m2 1.200      0.820       1.0
MCOTAB GRA       TABLE SUR SOCLE EXTRA LONG        1.820 m2              0.000 m2               0.000  m2 2.000      0.910       1.0
MFVIT 2PL        TABLE VERRE 1500 MM               0.900 m2              0.000 m2               0.000  m2 1.500      0.600       1.0
                 dont etageres APL                 0.450 m2                                     0.000  m2 1.500      0.600       2.0
MFVIT 090        VITRINE RONDE                     0.720 m2              0.000 m2               0.000  m2 1.200      0.600       1.0
                 dont etageres APL                 0.240 m2                                     0.000  m2 1.200      0.600       3.0
                 DIVERS (calcule)                        m2                    m2                      m2
                 DIVERS (calcule)                        m2                    m2                      m2

                 PRESENTOIRS SPECIFIQUES APL

                 CHAUSSURES
                 FREE STANDING totem               0.175 m2              0.000 m2               0.000  m2 0.350      0.500       1.0
                 CEINTURES
                 PRESENTOIR de comptoir            0.060 m2              0.000 m2               0.000  m2 0.300      0.200       1.0
                 MONTRES
                 PRESENTOIR de comptoir            0.040 m2              0.000 m2               0.000  m2 0.200      0.200       1.0
                 PRESENTOIR tour                   0.090 m2              0.000 m2               0.000  m2 0.300      0.300       1.0
                 LUNETTES
                 PRESENTOIR de comptoir            0.015 m2              0.000 m2               0.000  m2 0.100      0.150       1.0
                 PRESENTOIR tour                   0.090 m2              0.000 m2               0.000  m2 0.300      0.300       1.0
                 DIVERS APL
                 DIVERS (calcule)                        m2                    m2                      m2
                 DIVERS (calcule)                        m2                    m2                      m2

                 SURFACE DE PRESENTATION TOTALE                          0.000 m2

                 SURFACE DE PRESENTATION APL                                                    0.000  m2

                 SURFACE DE PRESENTATION VETEMENTS                                              0.000  m2

                 % SURFACE APL / SURFACE TOTALE                                                 #DIV/0!%
</TABLE>

*      La methode de calcul dite "G.L.A." (Gross Lease Area) sera utilisee pour
       les nouvelles implantations, les extensions, les deplacement et en cas de
       remodeling

**     Ne sont comptabilises que les espaces destines au public (zone de vente,
       vitrine de devanture, cabine d'essayages, sorties de secours, cabinets
       d'aisance destines au public, etc.), ne sont pas comptabilisees les
       surfaces des locaux annexes (reserves, bureaux, locaux sociaux, locaux
       techniques, etc.)

***    Hors vitrines de devanture, cabines d'essayages, caisses, issues de
       secours et espaces de circulation. Ne sont comptabilises que les elements
       de presentation des produits.

****   Surface Unitaire

MGI Engineering
                                                                              16
February 2006

<PAGE>
  GRILLE DE CALCUL DES SURFACES DE PRESENTATION DANS LES BOUTIQUES ET CORNERS
                                     LACOSTE

STANDARD MOBILIER:          LACOSTE 2002

ADRESSE:

SUPERFICIE (*) COMMERCIALE (**):      m2
<TABLE>
<CAPTION>
                                                           D          G                    K              O          P        Q
                                                                    TOTAL SURFACE                              CALCUL SURFACES
                                                                    PRESENTATION (***)     DONT, APL            UNITAIRES (S/U)
REF.
MOBILIER
ACCESS            DESCRIPTION                            S/U (****) UNITES    TOTAL      UNITES   TOTAL   LARGEUR  PROFONDEUR RATIO
<S>           <C>                                        <C>        <C>     <C>          <C>     <C>      <C>      <C>        <C>
              CASIERS MURAUX 2002

NCL 100       MURAL SMALL (344 MM)                        O*P/Q m2            G*D  m2              D*K m2  0.256     0.460      1.0
NCL 101       MURAL MEDIUM (884 MM)                       0.366 m2          0.000  m2            0.000 m2  0.796     0.460      1.0
NCL 102       MURAL LARGE (1684 MM)                       0.732 m2          0.000  m2            0.000 m2  1.592     0.460      1.0
NCL 401          dont etageres petite largeur APL
                    (256 mm)                              O*P/Q m2                                 D*K m2  0.256     0.460      6.0
NCL 402          dont etageres moyenne largeur APL
                    (540 mm)                              0.041 m2                               0.000 m2  0.540     0.460      6.0
NCL 403          dont etageres grande largeur APL
                    (796 mm)                              0.061 m2                               0.000 m2  0.796     0.460      6.0
NCL 140       MURAL SMALL (344 MM) FAIBLE PROFONDEUR      0.087 m2          0.000  m2            0.000 m2  0.256     0.340      1.0
NCL 141       MURAL MEDIUM (884 MM) FAIBLE PROFONDEUR     0.271 m2          0.000  m2            0.000 m2  0.796     0.340      1.0
NCL 142       MURAL LARGE (1684 MM) FAIBLE PROFONDEUR     0.541 m2          0.000  m2            0.000 m2  1.592     0.340      1.0
NCL 404          dont etageres COURTE petite largeur APL
                    (256 mm)                              0.015 m2                               0.000 m2  0.256     0.340      6.0
NCL 405          dont etageres COURTE moyenne largeur APL
                    (540 mm)                              0.031 m2                               0.000 m2  0.540     0.340      6.0
NCL 406          dont etageres COURTE grande largeur APL
                    (796 mm)                              0.045 m2                               0.000 m2  0.796     0.340      6.0
NCL 110       MURAL MEDIUM ACCESSOIRES                    0.144 m2          0.000  m2            0.000 m2  0.720     0.200      1.0
                 dont window APL                          0.036 m2                               0.000 m2  0.720     0.200      4.0
NCL 120       MURAL MEDIUM WINDOWS                        0.115 m2          0.000  m2            0.000 m2  0.660     0.174      1.0
                 dont window APL                          0.057 m2                               0.000 m2  0.660     0.174      2.0

              PRESENTOIRS CENTRAUX 2002

NCL 311 / 312 CENTRAL C                                   0.248 m2          0.000  m2            0.000 m2  0.460     0.540      1.0
                 dont vitrine cloche APL                  0.062 m2                               0.000 m2  0.460     0.540      4.0
                 face ceinture                            0.054 m2          0.000  m2            0.000 m2  0.100     0.540      1.0
NCL 315       CENTRAL S                                   0.248 m2          0.000  m2            0.000 m2  0.460     0.540      1.0
                 dont vitrine cloche APL                  0.062 m2                               0.000 m2  0.460     0.540      4.0
                 dont etagere APL                                                                0.000 m2  0.460     0.540      4.0
NCL 321       TABLE 1700 MM                               1.190 m2          0.000  m2            0.000 m2  1.700     0.700      1.0
NCL 323       TABLE 1500 MM                               0.900 m2          0.000  m2            0.000 m2  1.500     0.600      1.0
NCL 325       TABLE 1200 MM                               0.720 m2          0.000  m2            0.000 m2  1.200     0.600      1.0
NCL 327       TABLE 1000 MM                               0.600 m2          0.000  m2            0.000 m2  1.000     0.600      1.0
NCL 330 / 331 TABLE GIGOGNE 1320 MM                       0.792 m2          0.000  m2            0.000 m2  1.320     0.600      1.0
NCL 330 / 331 TABLE GIGOGNE 1180 MM                       0.671 m2          0.000  m2            0.000 m2  1.118     0.600      1.0
NCL 330 / 331 TABLE GIGOGNE 1040 MM                       0.624 m2          0.000  m2            0.000 m2  1.040     0.600      1.0
NCL 340       CENTRAL H 1800 MM                           0.385 m2          0.000  m2            0.000 m2  0.550     0.350      0.5
                 dont etageres APL                        0.032 m2                               0.000 m2  0.550     0.350      6.0
NCL 341       CENTRAL H 1350 MM                           0.385 m2          0.000  m2            0.000 m2  0.550     0.350      0.5
                 dont etageres APL                        0.039 m2                               0.000 m2  0.550     0.350      5.0
NCL 350       PENDERIE DOUBLE FACE                        0.845 m2          0.000  m2            0.000 m2  1.520     0.556      1.0
                 dont penderie APL                        0.423 m2          0.000  m2            0.000 m2  1.520     0.556      2.0
                 dont etageres APL                        0.019 m2          0.000  m2            0.000 m2  0.550     0.350     10.0
NCL 353       PENDERIE SIMPLE FACE                        0.514 m2          0.000  m2            0.000 m2  0.924     0.556      1.0
                 dont penderie APL                        0.257 m2          0.000  m2            0.000 m2  0.924     0.556      2.0
                 dont etageres APL                        0.039 m2          0.000  m2            0.000 m2  0.550     0.350      5.0
              PRESENTOIR TAMBOURS                         2.154 m2          0.000  m2            0.000 m2  3.1416    0.686      1.0
              MAT / T-BAR (*****)                         0.157 m2          0.000  m2            0.000 m2  3.1416    0.050      1.0
              DIVERS (calcule)                                  m2                 m2                  m2
              DIVERS (calcule)                                  m2                 m2                  m2

              PRESENTOIRS SPECIFIQUES APL

NCL 360       TOTEM APL double face                       0.214 m2          0.000  m2            0.000 m2  0.420     0.510      1.0
              CEINTURES
              FREE STANDING totem                         0.129 m2          0.000  m2            0.000 m2  0.354     0.364      1.0
              MONTRES
              PRESENTOIR de comptoir (*****)              0.040 m2          0.000  m2            0.000 m2  0.200     0.200      1.0
              PRESENTOIR tour (*****)                     0.090 m2          0.000  m2            0.000 m2  0.300     0.300      1.0
              LUNETTES
              PRESENTOIR de comptoir (*****)              0.015 m2          0.000  m2            0.000 m2  0.100     0.150      1.0
              PRESENTOIR tour (*****)                     0.090 m2          0.000  m2            0.000 m2  0.300     0.300      1.0
              PARAPLUIE
              PRESENTOIR tour (*****)                     0.090 m2          0.000  m2            0.000 m2  0.300     0.300      1.0
              PARFUMS
              PRESENTOIR de comptoir (*****)              0.015 m2          0.000  m2            0.000 m2  0.100     0.150      1.0
              PRESENTOIR tour (*****)                     0.090 m2          0.000  m2            0.000 m2  0.300     0.300      1.0
              DIVERS APL
              DIVERS (calcule)                                  m2                 m2                  m2
              DIVERS (calcule)                                  m2                 m2                  m2

              SURFACE DE PRESENTATION TOTALE                                0.000  m2

              SURFACE DE PRESENTATION APL                                                        0.000 m2

              SURFACE DE PRESENTATION VETEMENTS                                                  0.000 m2

              % SURFACE APL / SURFACE TOTALE                                                     #DIV/0! %
</TABLE>

*      La methode de calcul dite "G.L.A." (Gross Lease Area) sera utilisee pour
       les nouvelles implantations, les extensions, les deplacement et en cas de
       remodeling

**     Ne sont comptabilises que les espaces destines au public (zone de vente,
       vitrine de devanture, cabine d'essayages, sorties de secours, cabinets
       d'aisance destines au public, etc.), ne sont pas comptabilisees les
       surfaces des locaux annexes (reserves, bureaux, locaux sociaux, locaux
       techniques, etc.)

***    Hors vitrines de devanture, cabines d'essayages, caisses, issues de
       secours et espaces de circulation. Ne sont comptabilises que les elements
       de presentation des produits.

****   Surface Unitaire

*****  En Cours de developpement

MGI Engineering
                                                                              17
February 2006

<PAGE>
                                  SCHEDULE XVII

                            PROMOTION AND ADVERTISING

                               XVII.A - PROMOTION

           Gift of products to and financial agreements with champions

                                Event sponsorship

                              XVII.B - ADVERTISING

                                      Press

                                   Television

                                     Cinema

                                   Billboards

          Miscellaneous (internet, radio, direct marketing, cooperative
                               advertising, etc.)

                        Rights purchases and agency fees

                   Advertising material (PLV,catalogues, etc.)

                        XVII.C - PRESS & PUBLIC RELATIONS

                            Gift of products to VIP's

                                 Press relations

                                Public relations

                                Product placement

MGI Engineering                                                               18

February 2006

<PAGE>

                                INDEX OF CONTENTS
<TABLE>
<S>     <C>                                                                      <C>
ARTICLE 1 - DEFINITIONS...........................................................5
ARTICLE 2 - RIGHTS GRANTED.......................................................14
ARTICLE 3 - GENERAL BUSINESS POLICIES............................................20
ARTICLE 4 - CREATION, STYLING AND TECHNICAL CO-OPERATION.........................21
ARTICLE 5 - MANUFACTURE, QUALITY.................................................24
ARTICLE 6 - MARKETING AND MERCHANDISING..........................................28
ARTICLE 7 - DISTRIBUTION AND SALES...............................................33
ARTICLE 8 - PROMOTION AND ADVERTISING............................................49
ARTICLE 9 - COLLECTIONS AND LACOSTE CLUB.........................................55
ARTICLE 10 - END-OF-SEASON GOODS AND SECONDS.....................................55
ARTICLE 11 - UNFAIR COMPETITION..................................................56
ARTICLE 12 - LICENSED TRADEMARKS USE.............................................56
ARTICLE 13 - PACKAGING AND CASES.................................................58
ARTICLE 14 - LACOSTE TRADEMARKS AND MODELS.......................................59
ARTICLE 15 - CONFIDENTIALITY.....................................................62
ARTICLE 16 - COMPENSATION........................................................63
ARTICLE 17 - REPORTS OF ROYALTIES AND PAYMENTS...................................64
ARTICLE 18 - DURATION............................................................66
ARTICLE 19 - SALES MINIMA........................................................66
ARTICLE 20 - TERMINATION.........................................................67
ARTICLE 21 - PROVISIONS AT TERMINATION OR NON-RENEWAL............................69
ARTICLE 22 - ASSIGNMENT..........................................................73
ARTICLE 23 - FORCE MAJEURE.......................................................74
ARTICLE 25 - INDEMNIFICATION-INSURANCE...........................................77
ARTICLE 26 - CAPACITY OF THE PARTIES.............................................79
ARTICLE 27 - GOVERNING LAW.......................................................80
ARTICLE 28 - ARBITRATION.........................................................80
</TABLE>

MGI Engineering                                                               19

February 2006

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}]]