Document:

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                                                                    EXHIBIT 10.1

                                                                  EXECUTION COPY
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                            ASSET PURCHASE AGREEMENT

                             dated as of May 2, 2002

                                      among

                                  BUCKMIN INC.
                                CASUAL MALE CORP.
                               ELM EQUIPMENT CORP.
                                    ISAB INC.
                            JBAK CANTON REALTY, INC.
                                JBI APPAREL INC.
                            JBI HOLDING COMPANY INC.
                                    JBI INC.
                               LP INNOVATIONS INC.
                                 MORSE SHOE INC.
                          MORSE SHOE INTERNATIONAL INC.
                             SPENCER COMPANIES INC.
                            TCM HOLDING COMPANY INC.
                                   TCMB&T INC.
                              THE CASUAL MALE INC.
                            WHITE CAP FOOTWEAR, INC.
                                    WGS CORP.

                                       and

                                  DESIGNS, INC.

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                                TABLE OF CONTENTS

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<Caption>
                                                                                                            PAGE
<S>              <C>                                                                                          <C>
                                 ARTICLE I

                                DEFINITIONS

Section 1.1      Defined Terms.................................................................................2
Section 1.2      Other Definitional Provisions.................................................................8

                                ARTICLE II

                    TRANSFER OF ASSETS AND LIABILITIES

Section 2.1      Assets to be Sold.............................................................................8
Section 2.2      Excluded Assets..............................................................................10
Section 2.3      Liabilities to be Assumed by Buyer...........................................................12
Section 2.4      Excluded Liabilities.........................................................................13
Section 2.5      Real Property Leases, Equipment Leases and Assumed Contracts.................................14
Section 2.6      Warranties...................................................................................15

                                ARTICLE III

                        CLOSING AND PURCHASE PRICE

Section 3.1      Closing; Transfer of Possession; Certain Deliveries..........................................15
Section 3.2      Purchase Price...............................................................................16
Section 3.3      Adjustment Amount............................................................................17
Section 3.4      Allocation of Purchase Price.................................................................17
Section 3.5      Deposit......................................................................................17
Section 3.6      Additional Contracts.........................................................................17
Section 3.7      Additional Equipment Leases..................................................................18

                                ARTICLE IV

                 REPRESENTATIONS AND WARRANTIES OF SELLERS

Section 4.1      Organization and Good Standing...............................................................18
Section 4.2      Execution and Effect of Agreement............................................................18
Section 4.3      No Contravention.............................................................................18
Section 4.4      Third Party Approvals........................................................................19
Section 4.5      Subsidiaries.................................................................................19
Section 4.6      Securex Liabilities..........................................................................19
Section 4.7      Taxes........................................................................................19
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<S>              <C>                                                                                          <C>
Section 4.8      Compliance with Law..........................................................................20
Section 4.9      Governmental Permits.........................................................................20
Section 4.10     Securex Litigation...........................................................................20
Section 4.11     Real Estate; Real Property Leases............................................................20
Section 4.12     Contracts....................................................................................20
Section 4.13     Intellectual Property........................................................................20
Section 4.14     Labor Matters................................................................................21
Section 4.15     Employee Benefits............................................................................21
Section 4.16     Insurance....................................................................................21
Section 4.17     Brokers and Finders..........................................................................21
Section 4.18     Financial Statements.........................................................................22
Section 4.19     Mortgage.....................................................................................22

                                 ARTICLE V

                 REPRESENTATIONS AND WARRANTIES OF BUYER

Section 5.1      Organization and Good Standing...............................................................22
Section 5.2      Execution and Effect of Agreement............................................................22
Section 5.3      No Contravention.............................................................................22
Section 5.4      Third Party Approvals........................................................................23
Section 5.5      Brokers and Finders..........................................................................23
Section 5.6      Funds........................................................................................23
Section 5.7      Organizational Documents.....................................................................23
Section 5.8      Investigation and Evaluation.................................................................23

                                ARTICLE VI

                         COVENANTS OF THE PARTIES

Section 6.1      Conduct of Business..........................................................................23
Section 6.2      Access.......................................................................................25
Section 6.3      Public Announcements.........................................................................25
Section 6.4      Reasonable Efforts...........................................................................25
Section 6.5      Notification of Certain Matters..............................................................26
Section 6.6      Employees....................................................................................26
Section 6.7      Further Assurances...........................................................................27
Section 6.8      Further Agreements...........................................................................27
Section 6.9      Payment of Transfer Taxes and Tax Filings....................................................27
Section 6.10     Utilities and Bank Accounts..................................................................28
Section 6.11     Proration of Taxes and Certain Charges.......................................................28
Section 6.12     Bulk Sales...................................................................................28
Section 6.13     [Reserved.]..................................................................................29
Section 6.14     [Reserved.]..................................................................................29
Section 6.15     Insurance Deductibles........................................................................29
Section 6.16     Lease/Contract Rejection Options.............................................................29
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<S>              <C>                                                                                          <C>
Section 6.17     Regulatory Approval..........................................................................30
Section 6.18     Avoidance Action.............................................................................30
Section 6.19     Limited License..............................................................................31
Section 6.20     Work `n Gear.................................................................................31
Section 6.21     Real Property Leases.........................................................................31
Section 6.22     Continued Employee Loans.....................................................................31
Section 6.23     Consent Fees.................................................................................31

                                ARTICLE VII

                 CONDITIONS TO OBLIGATIONS OF THE PARTIES

Section 7.1      Conditions Precedent to Obligations of All Parties...........................................31
Section 7.2      Conditions Precedent to the Obligations of Buyer.............................................32
Section 7.3      Conditions Precedent to the Obligations of Sellers...........................................33

                               ARTICLE VIII

                                TERMINATION

Section 8.1      Termination of Agreement.....................................................................34
Section 8.2      No Liabilities in Event of Termination.......................................................35
Section 8.3      Treatment of Cash Deposit Upon Termination...................................................35
Section 8.4      [Reserved.]..................................................................................35
Section 8.5      Abandonment..................................................................................35

                                ARTICLE IX

                              INDEMNIFICATION

Section 9.1      No Survival of Representations and Warranties................................................35
Section 9.2      Indemnification..............................................................................36

                                 ARTICLE X

                               MISCELLANEOUS

Section 10.1     Expenses.....................................................................................38
Section 10.2     Assignment...................................................................................38
Section 10.3     Parties in Interest..........................................................................38
Section 10.4     Notices......................................................................................39
Section 10.5     CHOICE OF LAW................................................................................40
Section 10.6     Entire Agreement; Amendments and Waivers.....................................................40
Section 10.7     Counterparts.................................................................................40
Section 10.8     Severability.................................................................................40
Section 10.9     Headings.....................................................................................40
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<S>              <C>                                                                                          <C>
Section 10.10    EXCLUSIVE JURISDICTION.......................................................................41
Section 10.11    WAIVER OF RIGHT TO TRIAL BY JURY.............................................................41
Section 10.12    Specific Performance.........................................................................41
Section 10.13    Third-Party Beneficiaries....................................................................41
Section 10.14    Schedules....................................................................................41
Section 10.15    Counting.....................................................................................42
Section 10.16    Service of Process...........................................................................42
Section 10.17    Time of Essence..............................................................................42
Section 10.18    Exhibits and Schedules.......................................................................42
Section 10.19    Interpretation...............................................................................42
Section 10.20    Preparation of this Agreement................................................................42
Section 10.21    Power of Attorney............................................................................43
Section 10.22    WGS Assets...................................................................................43
</Table>

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                            ASSET PURCHASE AGREEMENT

          This ASSET PURCHASE AGREEMENT (this "AGREEMENT") is dated as of May 2,
2002 by and among Buckmin Inc., a Massachusetts corporation ("BI"), Casual Male
Corp. (f/k/a J. Baker, Inc.), a Massachusetts corporation ("CMC"), Elm Equipment
Corp., a Massachusetts corporation ("EEC"), ISAB Inc., a Delaware corporation
("ISAB"), JBI Apparel Inc., a Massachusetts corporation ("JBIA"), JBI Holding
Company Inc., a Delaware corporation ("JBIH"), JBI Inc., a Massachusetts
corporation ("JBI"), LP Innovations Inc., a Massachusetts corporation ("LPI"),
Morse Shoe Inc., a Delaware corporation ("MSI"), Morse Shoe International Inc.,
a Delaware corporation ("MSII"), Spencer Companies Inc., a Massachusetts
corporation ("SCI"), TCM Holding Company Inc., a Delaware corporation ("TCMH"),
TCMB&T Inc., a Massachusetts corporation ("TCMB"), The Casual Male Inc., a
Massachusetts corporation ("CMI"), White Cap Footwear, Inc., a Delaware
corporation ("WCF"), JBAK Canton Realty, Inc., a Massachusetts corporation
("JBAK CANTON"), and WGS Corp., a Massachusetts corporation (all of the
foregoing entities, each a "SELLER" and collectively, "SELLERS"), and Designs,
Inc., a Delaware corporation ("BUYER").

                              W I T N E S S E T H:

          WHEREAS, CMC, through its direct and indirect operating subsidiaries
other than WGS Corp. ("WGS" or "WORK 'N GEAR"), is presently engaged, (i)
through its Casual Male Big & Tall, Repp Ltd. Big & Tall/Casual Male Premier and
B&T Factory Store businesses, in the sale of apparel to the big and tall man
through diverse selling and marketing channels, including retail stores,
catalogue, direct selling workforces and e-commerce web-sites and (ii) through
LPI (including Securex), in providing loss prevention services (the foregoing
((i) and (ii)) is collectively referred to hereinafter as the "BUSINESS");

          WHEREAS, each of BI, CMC, EEC, ISAB, JBIA, JBIH, JBI, LPI, MSI, MSII,
SCI, TCMH, TCMB, CMI and WCF commenced a case (each, a "CASE" and, collectively,
the "CASES") under chapter 11 of title 11 of the United States Code, 11 U.S.C.
Sections 101 ET SEQ. (the "BANKRUPTCY CODE") on May 18, 2001 by filing a
voluntary petition with the United States Bankruptcy Court for the Southern
District of New York (the "BANKRUPTCY COURT");

          WHEREAS, the sale of assets and assumption of liabilities of
the Business are subject to the supervision and control of Sellers subject to
the approval of the Bankruptcy Court;

          WHEREAS, subject to the terms and conditions of this Agreement,
Sellers desire to sell to Buyer, and Buyer desires to purchase from Sellers,
substantially all of the assets of Sellers related to the Business (other than
the Excluded Assets (as hereinafter defined)), and enter into the other
transactions set forth herein pursuant to, INTER ALIA, Sections 363 and 365 of
the Bankruptcy Code and the applicable Federal Rules of Bankruptcy Procedure;
and

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          WHEREAS, Sellers desire that Buyer assume, and Buyer has agreed to
assume, certain liabilities of Sellers related to the Business to the extent set
forth herein and in the Assignment and Assumption Agreement (as hereinafter
defined).

          NOW, THEREFORE, in consideration of the mutual representations,
warranties, covenants and agreements contained herein, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and subject to the terms and conditions hereof, the parties,
intending to be legally bound, hereby agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

          Section 1.1 DEFINED TERMS. As used herein, the terms below shall have
the following respective meanings:

          "ADDITIONAL CONTRACTS" shall have the meaning ascribed to such term in
Section 3.6.

          "ADDITIONAL DEPOSIT" shall have the meaning ascribed to such term in
Section 3.5.

          "ADDITIONAL EQUIPMENT LEASES" shall have the meaning ascribed to such
term in Section 3.7.

          "ADJUSTMENT AMOUNT" shall have the meaning ascribed to such term in
Section 3.3.

          "AFFILIATE" shall have the meaning set forth in Section 101 of the
Bankruptcy Code.

          "AGREEMENT" shall mean this Agreement (together with all schedules and
exhibits referenced herein).

          "ALLOCATION SCHEDULE" shall have the meaning ascribed to such term in
Section 3.4.

          "APPROVAL ORDER" shall have the meaning ascribed to such term in
Section 7.1(b).

          "ASSETS" shall have the meaning ascribed to such term in Section 2.1.

          "ASSIGNMENT AND ASSUMPTION AGREEMENT" shall have the meaning ascribed
to such term in Section 3.1(c)(ii).

          "ASSUMED CONTRACTS" shall have the meaning ascribed to such term in
Section 2.1(e).

          "ASSUMED LIABILITIES" shall have the meaning ascribed to such term in
Section 2.3.

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          "ASSUMED MORTGAGE" shall mean the mortgage made by JBAK Canton Realty,
Inc. to The Chase Manhattan Bank, dated as of December 30, 1996, encumbering the
Owned Real Property.

          "AUCTION" shall mean the auction concluded on May 2, 2002 at the
offices of Cadwalader, Wickersham & Taft, pursuant to the Scheduling Order.

          "AVOIDANCE ACTIONS" shall have the meaning ascribed to such term in
Section 2.2(e).

          "BANKRUPTCY CODE" shall have the meaning ascribed to such term in the
Recitals.

          "BANKRUPTCY COURT" shall have the meaning ascribed to such term in the
Recitals.

          "BENEFIT PLANS" shall have the meaning ascribed to such term in
Section 4.15(a).

          "BUSINESS" shall have the meaning ascribed to such term in the
Recitals.

          "BUSINESS DAY" shall mean any day other than a Saturday, Sunday or a
legal holiday on which banking institutions in the State of New York are
authorized or obligated by law or executive order to close.

          "BUYER" shall have the meaning ascribed to such term in the Recitals.

          "CANTON REAL PROPERTY LEASE" shall have the meaning ascribed to such
term in Section 2.1(a).

          "CASE" or "CASES" shall have the meaning ascribed to each such term in
the Recitals.

          "CASH DEPOSIT" shall have the meaning ascribed to such term in Section
3.5.

          "CLAIMS" shall have the meaning ascribed to such term in Section
2.2(e).

          "CLOSING" shall have the meaning ascribed to such term in Section
3.1(a).

          "CLOSING DATE" shall have the meaning ascribed to such term in Section
3.1(a).

          "CODE" shall mean the Internal Revenue Code of 1986, as amended, and
the regulations promulgated thereunder.

          "COMMONLY CONTROLLED ENTITY" shall have the meaning ascribed to such
term in Section 4.15(b).

          "CONTINUED EMPLOYEE LOANS" shall have the meaning ascribed to such
term in Section 2.1(g).

          "CONTINUED EMPLOYEES" shall have the meaning ascribed to such term in
Section 6.6(a).

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          "CONTRACT" shall mean any mortgage, bond, indenture, lease, agreement,
contract, contract right, purchase order, obligation, trust, instrument and
other similar arrangements.

          "CONTRACT REJECTION DESIGNATION" shall have the meaning ascribed to
such term in Section 6.16(b).

          "CONTRACT REJECTION OPTION" shall have the meaning ascribed to such
term in Section 6.16(b).

          "CURE AMOUNTS" shall mean the amounts, as determined by the Bankruptcy
Court, if any, necessary to cure all defaults, if any, and to pay all actual or
pecuniary losses that have resulted from such defaults under the Real Property
Leases, the Equipment Leases and the Assumed Contracts as and to the extent
required under Section 365(b) of the Bankruptcy Code.

          "DAMAGES" shall have the meaning ascribed to such term in Section
9.2(a).

          "DELAYED ASSUMED MORTGAGE DATE" shall have the meaning ascribed to
such term in Section 2.3(m).

          "DIP FACILITY" shall mean that certain Debtor in Possession Loan and
Security Agreement, dated May 18, 2001, as amended, among CMC, the other
Borrowers named therein, Fleet Retail Finance Inc., as Administrative and
Collateral Agent, Back Bay Capital Funding LLC and the Revolving Credit Lenders
named therein.

          "EMPLOYEE PAYMENTS" shall have the meaning ascribed to such term in
Section 2.3(n).

          "EMPLOYEES" shall have the meaning ascribed to such term in Section
6.6(a).

          "EQUIPMENT" shall have the meaning ascribed to such term in Section
2.1(c).

          "EQUIPMENT LEASES" shall have the meaning ascribed to such term in
Section 2.1(b).

          "ERISA" shall mean the Employee Retirement Income Security Act of
1974, as amended, and the regulations promulgated thereunder.

          "ERISA AFFILIATE" shall have the meaning ascribed to such term in
Section 2.4(f).

          "EXCLUDED ASSETS" shall have the meaning ascribed to such term in
Section 2.2.

          "EXCLUDED LIABILITIES" shall have the meaning ascribed to such term in
Section 2.4.

          "FILED" shall mean filed, issued, renewed or the subject of a pending
application.

          "GAAP" shall mean United States generally accepted accounting
principles.

          "GOVERNMENTAL DIRECTIVE" shall have the meaning set forth in Section
4.8.

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          "GOVERNMENTAL ENTITY" shall mean any (i) federal, state, local,
municipal, foreign or other government; (ii) governmental or quasi-governmental
authority of any nature (including any governmental agency, branch, department,
official, or entity and any court, arbitrator or other tribunal); or (iii) body
exercising, or entitled to exercise, any administrative, executive, judicial,
legislative, police, regulatory, or taxing authority or power of any nature,
including any arbitral tribunal.

          "GRANTOR" shall have the meaning ascribed to such term in Section
10.20.

          "HSR ACT" shall mean Hart-Scott-Rodino Antitrust Improvements Act of
1976, as amended.

          "INDEMNIFIED PARTY" shall have the meaning ascribed to such term in
Section 9.2(c).

          "INDEMNIFYING PARTY" shall have the meaning ascribed to such term in
Section 9.2(c).

          "INITIAL DEPOSIT" shall have the meaning ascribed to such term in
Section 3.5.

          "INTELLECTUAL PROPERTY" shall mean all foreign and domestic
trademarks, service marks and other indicia of origin, and all goodwill
associated therewith and symbolized thereby, all inventions (whether patentable
or not) and patents, all trade secrets and know-how, all published and
unpublished works of authorship (whether copyrightable or not) and copyrights
therein and thereto, any registrations and applications for the foregoing, and
all other intellectual property rights therein.

          "INVENTORY" shall have the meaning ascribed to such term in Section
2.1(f).

          "KNOWLEDGE" with respect to any individual, shall mean the actual
knowledge of such individual. The "Knowledge of Sellers" shall mean the
Knowledge of the persons set forth on SCHEDULE 1.1.

          "LAW" means any federal, state, local or foreign statute, law,
ordinance, regulation, rule, code, order, principle of common law, judgment
enacted, promulgated, issued, enforced or entered by any Governmental Entity, or
other requirement or rule of law.

          "LEASE REJECTION DESIGNATION" shall have the meaning ascribed to such
term in Section 6.16(a).

          "LEASE REJECTION OPTION" shall have the meaning ascribed to such term
in Section 6.16(a).

          "LIABILITIES" shall mean, as to any Person, all debts, adverse claims,
liabilities, commitments, responsibilities, and obligations of any kind or
nature whatsoever, direct, indirect, absolute or contingent, of such Person,
whether accrued, vested or otherwise, whether known or unknown, and whether or
not actually reflected, or required to be reflected, in such Person's balance
sheets or other books and records.

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          "LIEN" shall mean any claim, pledge, option, charge, hypothecation,
easement, security interest, right-of-way, encroachment, mortgage, deed of trust
or other encumbrance.

          "MATERIAL ADVERSE EFFECT" shall mean any event, change or effect which
materially and adversely affects the value of the Assets or the Business taken
as a whole, other than events, changes or effects generally affecting (a) the
United States economy (other than as a result of an act of war) or (b) either of
the industries in which any Seller operates.

          "NOTICE" shall have the meaning ascribed to such term in Section
9.2(c).

          "ORDER" shall mean any judgment, order, injunction, writ, ruling,
verdict, decree, stipulation or award of any Governmental Entity or private
arbitration tribunal.

          "OUTSIDE DATE" shall have the meaning ascribed to such term in Section
8.1(b).

          "OWNED INTELLECTUAL PROPERTY" shall mean Intellectual Property owned
by a Seller.

          "OWNED REAL PROPERTY" shall mean that certain property located at 555
Turnpike Street, Canton, Massachusetts 02021.

          "PERMITS" shall have the meaning ascribed to such term in Section
2.1(d).

          "PERSON" shall mean an individual, a partnership, a joint venture, a
corporation, a business trust, a limited liability company, a trust, an
unincorporated organization, a joint stock company, a labor union, an estate, a
Governmental Entity or any other entity.

          "POST-PETITION" shall mean any time after the commencement of the
Cases.

          "PROCEEDING" shall mean any action, arbitration, audit, hearing,
investigation, litigation, or suit (whether civil, criminal, administrative,
investigative, or informal) commenced, brought, conducted, or heard by or
before, or otherwise involving, any Governmental Entity or arbitrator.

          "PROFESSIONAL EXPENSES" shall mean the legal and other professional
fees of Sellers' estates in connection with the Cases (including professionals
for each Seller and for the committee of unsecured creditors).

          "PURCHASE PRICE" shall have the meaning ascribed to such term in
Section 3.2.

          "REAL PROPERTY LEASES" shall have the meaning ascribed to such term in
Section 2.1(a).

          "REJECTED CONTRACTS" shall have the meaning ascribed to such term in
Section 6.16(b).

          "REJECTED LEASES" shall have the meaning ascribed to such term in
Section 6.16(a).

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          "REJECTED STORE INVENTORY" shall have the meaning ascribed to such
term in Section 6.16(a).

          "REJECTED STORE INVENTORY REMOVAL DEADLINE" shall have the meaning
ascribed to such term in Section 6.16(a).

          "REJECTED STORE VACATE DATE" shall have the meaning ascribed to such
term in Section 6.16(a).

          "REJECTED STORES" shall have the meaning ascribed to such term in
Section 6.16(a).

          "REPRESENTATIVE" shall mean, with respect to any Person, such Person's
officers, directors, employees, agents and representatives (including any
investment banker, financial advisor, accountant, legal counsel, agent,
representative or expert retained by or acting on behalf of such Person or its
subsidiaries).

          "SALE HEARING" shall mean the hearing to be scheduled and conducted by
the Bankruptcy Court to consider approval and entry of the Approval Order.

          "SALE MOTION" shall mean the motion or motions of Sellers, in form and
substance reasonably satisfactory to Buyer, seeking approval and entry of the
Scheduling Order and the Approval Order.

          "SCHEDULING ORDER" shall mean the Order of the Bankruptcy Court
entered on April 4, 2002, containing the Auction procedures.

          "SECUREX" shall mean Securex LLC, a Delaware limited liability
company.

          "SELLER" or "SELLERS" shall have the meaning ascribed to each such
term in the Recitals.

          "STORES" shall mean all of the stores of Sellers listed on SCHEDULE A
attached hereto.

          "SUBSIDIARY" shall mean, with respect to any Person at any time, any
corporation, partnership, limited liability company or other legal entity of
which such Person owns, directly or indirectly, 50% or more of the economic
interests in, or voting rights with respect to the election of the board of
directors or other governing body of, such corporation or other legal entity.

          "TAX" or "TAXES" shall mean any federal, state, county, local, foreign
and other taxes, assessments, duties or charges of any kind whatsoever,
including, without limitation, income, profits, gains, net worth, sales and use,
ad valorem, gross receipts, business and occupation, license, minimum,
alternative minimum, environmental, estimated, stamp, custom duties, occupation,
property (real or personal), franchise, capital stock, license, excise, value
added, payroll, employees, income withholding, social security, unemployment or
other tax, together with any penalty, addition to tax or interest on the
foregoing.

                                       -7-
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          "TAX RETURN" shall have the meaning ascribed to such term in Section
4.7.

          "TRANSFER TAX" or "TRANSFER TAXES" shall mean any federal, state,
county, local, foreign and other sales, use, transfer, conveyance, documentary
transfer, recording or other similar Tax, fee or charge imposed upon the sale,
transfer or assignment of property or any interest therein or the recording
thereof, and any penalty, addition to Tax or interest with respect thereto, but
such term shall not include any Tax on, based upon or measured by, the net
income, gains or profits from such sale, transfer or assignment of the property
or any interest therein.

          "WARN ACT" shall mean the Worker Adjustment and Retraining
Notification Act of 1988, as amended, and any successor Law, and the rules and
regulations thereunder and under any successor Law.

          Section 1.2 OTHER DEFINITIONAL PROVISIONS.

          (a) The words "hereof," "herein" and "hereunder" and words of similar
import when used in this Agreement shall refer to this Agreement as a whole and
not to any particular provision of this Agreement, and Section, Schedule and
Exhibit references are to this Agreement unless otherwise specified.

          (b) The meanings given to terms defined herein shall be equally
applicable to both singular and plural forms of such terms.

                                   ARTICLE II

                       TRANSFER OF ASSETS AND LIABILITIES

          Section 2.1 ASSETS TO BE SOLD. Subject to Section 2.2, the other
provisions of this Agreement and the Approval Order, at the Closing, Sellers
shall sell, convey, assign, transfer and deliver to Buyer, and Buyer shall
purchase, acquire, and accept, the following assets used or held for use by
Sellers in the conduct of the Business (collectively, the "ASSETS"):

          (a) Sellers' rights in, to and under (i) the real estate leases or
subleases and all amendments thereto used in the Business set forth in SCHEDULE
2.1(a) under which any Seller is a lessor or lessee or sublessor or sublessee of
real property relating to the operation of the Stores, and (ii) the Lease
Agreement, dated December 11, 1996 (the "CANTON REAL PROPERTY LEASE"), by and
between JBAK Canton, as landlord, and JBI, as tenant, demising the Owned Real
Property (collectively, the "REAL PROPERTY LEASES");

          (b) Sellers' rights in, to and under the equipment leases used in the
Business including those set forth in SCHEDULE 2.1 (b) (collectively, the
"EQUIPMENT LEASES");

          (c) The furniture, fixtures, equipment, supplies and other tangible
personal property owned by Sellers used in the Stores (collectively, the
"EQUIPMENT"), and all warranties, if any, express or implied, existing for the
benefit of any Seller in connection with the Equipment, to the extent such
warranties are transferable at no expense to Sellers;

                                       -8-
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          (d) All licenses, permits, franchises and other authorizations of any
Governmental Entity relating to the Assets and to the operation of the Business
including those listed on SCHEDULE 2.1(d) (collectively, the "PERMITS"), to the
extent transferable or assignable and, in the case of non-material Permits, to
the extent transferable or assignable at no expense to Sellers;

          (e) All Contracts and rights thereunder of any Seller, including
Inventory and non-Inventory purchase orders for the benefit of any Seller,
listed on SCHEDULE 2.1(e), and that certain Transition Services Agreement, dated
as of March 11, 2002, by and between WGS and Sandy Point, LLC attached hereto as
EXHIBIT B (collectively, the "ASSUMED CONTRACTS"), to the extent transferable or
assignable and, in the case of non-material Assumed Contracts, to the extent
transferable or assignable at no expense to Sellers (other than Cure Amounts as
provided herein);

          (f) The merchandise inventory relating exclusively to the Business
held for sale by Sellers (i) located in Sellers' Stores, (ii) located in
Sellers' distribution center, (iii) in-transit on the Closing Date to Sellers'
distribution center and (iv) in-transit on the Closing Date to Sellers' Stores
from Sellers' distribution center or from Sellers' other Stores (collectively,
the "Inventory"), and all warranties, if any, express or implied, existing for
the benefit of Sellers in connection with the Inventory, to the extent such
warranties are transferable;

          (g) All cash in the cash registers at all Stores after the close of
business on the day prior to the Closing Date (and in no event less than $400
per Store), subject to Section 6.1(b), and all loans owed to any Seller from any
Continued Employee all of which are listed on SCHEDULE 2.1(g) (such loans, the
"CONTINUED EMPLOYEE LOANS");

          (h) All books, records, files or papers of Sellers, whether in hard
copy or computer format, relating to the Assets or to the on-going operation of
the Business consistent with past practices (or an accurate copy thereof),
including, sales and promotional literature, manuals and data, sales and
purchase correspondence, customer lists, vendor lists, mailing lists,
catalogues, research material, URLs, know-how, specifications, designs,
drawings, processes and quality control data, if any, or any other intangible
property and applications for the same, in the case of non-material Assets to
the extent transferable at no expense to Sellers;

          (i) All of Sellers' right, title or interest to all Intellectual
Property owned by Sellers and necessary to operation of the Business as
presently conducted, including the Intellectual Property listed on SCHEDULE
2.1(i);

          (j) All membership interests in Securex;

          (k) All furniture, fixtures or equipment used for the Business by
Sellers in their warehousing, distribution, headquarters or catalogue and
e-commerce call and fulfillment facilities used in the Business;

          (l) All assets and any rights under any Benefit Plan, including
Sellers' pension plans and supplemental retirement plans, or any agreement
relating to employee benefits, employment or compensation of Sellers or their
respective employees, but only to the extent such Benefit Plans (including
related agreements) are assumed by Buyer hereunder,

                                       -9-
<Page>

          (m) All insurance policies, insurance claims and proceeds set forth in
SCHEDULE 2.1(m); PROVIDED, HOWEVER, that Buyer shall cause each Seller to be
named and maintained as an additional insured under such insurance policies
until the close of the Cases, subject to Section 6.15;

          (n) (i) Any security, vendor, utility or other deposits, including any
security deposits given in favor of lessors of real property, (ii) any rights to
receive from such lessors unpaid construction allowances, (iii) any prepaid
expenses in excess of actual expenses from whatever source, and (iv) any other
cash due and owing any Seller in respect of such leases owed to Seller by such
lessor prior to the Closing Date; PROVIDED, HOWEVER, that the foregoing shall
not apply to any deposits or claims with respect to any real property, Real
Property Leases or Contracts that are not acquired by Buyer hereunder;

          (o) All rights with respect to the bank accounts (other than the cash
in such bank accounts) of each Seller used by the Stores, to the extent
transferable at no expense to Sellers;

          (p) All marketing materials and works-in-progress, and all related
prepaid expenses, for use in the Business after the Closing;

          (q) All contractual, prepaid or other rights of any Seller to
maintenance and/or upgrades of the software for which any Seller has a license
as set forth on Schedule 2.1(i), to the extent transferable or assignable at no
expense to Sellers;

          (r) Specified assets of Work 'n Gear set forth on SCHEDULE 2.1(r);

          (s) All assets, including prepaid expenses, contracts, leases and
agreements, directly and indirectly materially related to the operations of the
Business on an on-going basis as historically operated, and not otherwise
explicitly enumerated in Section 2.2;

          (t) All amounts due to any Seller with respect to Inventory on
lay-away;

          (u) The Owned Real Property; and

          (v) All goodwill related to the foregoing.

          Section 2.2 EXCLUDED ASSETS. Sellers shall retain, and Buyer shall not
purchase, any of Sellers' right, title or interest in or to any assets or
properties of Sellers that are not expressly enumerated in Section 2.1 (subject
to Section 2.1(s)), including, without limitation, any of Sellers' right, title
or interest in or to any of the following (collectively, the "EXCLUDED ASSETS"),
all of which shall remain the exclusive property of Sellers free and clear of
any Claim of Buyer:

          (a) All cash (whether in bank accounts or otherwise) and cash
equivalents or similar type investments, uncollected checks, certificates of
deposit, Treasury bills and other marketable securities, except for cash
described in Section 2.1(g);

                                      -10-
<Page>

          (b) Loans owed to any Seller by any Employee (other than any Continued
Employee) or director of any Seller;

          (c) All assets of WGS and the business known as "Work 'N Gear" sold
pursuant to that certain Asset Purchase Agreement, dated as of March 11, 2002,
by and between WGS and Sandy Point, LLC, except those assets set forth on
SCHEDULE 2.1(r);

          (d) Any Contracts other than the Assumed Contracts, the Equipment
Leases or the Real Property Leases;

          (e) All rights, demands, claims, actions and causes of action
(collectively, the "CLAIMS") that any Seller or any of their Affiliates may have
against any third party, including any Governmental Entity, for causes of action
based on Chapter 5 of the Bankruptcy Code (collectively, the "AVOIDANCE
ACTIONS");

          (f) All Claims that any Seller or any of their Affiliates may have
against any third party (including Governmental Entities) for refund or credit
of any type with respect to Taxes accrued with respect to periods ending on or
prior to the Closing Date;

          (g) All Claims which any Seller or any of their Affiliates may have
against any third Person with respect to any Excluded Assets or otherwise
arising prior to the Closing Date;

          (h) All Claims (other than warranty Claims covering Equipment included
in Section 2.1(c) or covering Inventory included in Section 2.1(f)) which any
Seller or any of their Affiliates may have against any Person with respect to
any Asset;

          (i) All insurance policies, insurance claims and proceeds set forth in
SCHEDULE 2.2(i);

          (j) All rights of any Seller under this Agreement and the agreements
and instruments delivered to Sellers by Buyer pursuant to this Agreement;

          (k) Any amounts due to any Seller from retail customers of any Seller
for products sold to retail customers prior to the Closing Date (whether such
amounts are due directly from retail purchasers of products, from credit card
processors, or from a licensor that has collected such amounts for subsequent
disbursement to Sellers pursuant to an Assumed Contract, or otherwise), except
any amounts due to any Seller with respect to Inventory on layaway;

          (l) Accounts receivable owned by any Seller as of the Closing Date
(other than as set forth in Section 2.1(t)), including any receivable arising
out of the conduct of the Business prior to the Closing Date;

          (m) All capital stock of, and all membership interests in, any Seller;

          (n) All rights with respect to bank accounts other than Store bank
accounts listed on SCHEDULE 2.1(o); and

                                      -11-
<Page>

          (o) All board minutes and other documents not relating to the
operation of the Business on an on-going basis as historically operated prior to
the Closing.

          Section 2.3 LIABILITIES TO BE ASSUMED BY BUYER. Upon the transfer of
the Assets on the Closing Date, Buyer shall assume and pay when due and
discharge the following Liabilities (collectively, the "ASSUMED LIABILITIES"):

          (a) Liabilities arising out of the ownership of the Assets and the
operation of the Business by Buyer or any other Person, including, without
limitation, Liability for personal injury of customers or employees, but only to
the extent that the event or state of facts giving rise to such Liability occurs
after the Closing;

          (b) Liabilities, other than Cure Amounts, under the Real Property
Leases assumed under this Agreement arising from and after the Closing, but only
to the extent that the event or state of facts giving rise to such Liability
occurs after the Closing;

          (c) Liabilities, other than Cure Amounts, under the Assumed Contracts,
but only to the extent that the event or state of facts giving rise to such
Liability occurs after the Closing;

          (d) Liabilities, other than Cure Amounts, under the Equipment Leases,
but only to the extent that the event or state of facts giving rise to such
Liability occurs after the Closing;

          (e) Liabilities under accounts payable related to the Business,
together with any interest accrued thereon, including, without limitation, any
post-petition Liability (other than Professional Expenses) incurred by any
Seller in the ordinary course of business which remains unpaid on the Closing
Date in the ordinary course of business (including any uncleared checks to be
listed on a schedule provided by Sellers to Buyer on the Closing Date).
Notwithstanding the foregoing, Buyer shall assume Liabilities under (i) accounts
payable related to the in-transit Inventory whether such Liabilities occur
before or after the Closing and (ii) purchase orders for Inventory and
non-Inventory items listed on SCHEDULE 2.1(e);

          (f) Liabilities related to employment of any Continued Employees,
including the termination of Continued Employees, occurring or existing after
the Closing, including, without limitation, liabilities of Buyer as set forth in
Section 6.6;

          (g) Liabilities for accrued vacation time, bonus or other incentive
compensation payments payable to Continued Employees after the Closing Date but
earned in whole or in part prior to the Closing Date as set forth in SCHEDULE
2.3(g), or incurred or accrued in the ordinary course after the date hereof;

          (h) Except as provided for in Section 2.4(f), Liabilities under any
Benefit Plan, including Sellers' pension plans and supplemental retirement plans
or any agreement relating to employee benefits, employment or compensation of
any Seller or its respective employees;

          (i) [Reserved];

                                      -12-
<Page>

          (j) [Reserved];

          (k) Liabilities of any Seller for replacement of, or refund for,
damaged, defective or other returned products or of warranty, products
liability, safety, advertising or other claims in respect to the Inventory, but
only to the extent that the event or state of facts giving rise to such
Liability occurs after the Closing;

          (l) Liabilities for non-prepaid expenses for the benefit of the
Business, but only to the extent that the event or state of facts giving rise to
such Liability occurs or continues to exist after the Closing; PROVIDED,
HOWEVER, that such expenses shall be substantially as set forth in the marketing
plan and budget attached hereto as SCHEDULE 2.3(l);

          (m) Liabilities related to the Assumed Mortgage; PROVIDED, HOWEVER, in
the event that the consents required to assign the Assumed Mortgage to Buyer
pursuant to that certain Mortgage and Security Agreement, dated as of December
30, 1996, by and between JBAK Canton, as mortgagor, and The Chase Manhattan
Bank, as mortgagee, have not been obtained on or prior to the Closing Date, then
Buyer shall not assume the Liabilities under the Assumed Mortgage or acquire
ownership of the Owned Real Property until the earlier of (i) the date that such
consents are obtained, or (ii) the date that is ninety (90) days after the
Closing Date ("DELAYED ASSUMED MORTGAGE DATE"); PROVIDED FURTHER, HOWEVER,
between the Closing Date and the Delayed Assumed Mortgage Date, in addition to
paying all obligations under the Canton Real Property Lease, Buyer shall
reimburse Sellers for any other obligations payable under the Assumed Mortgage
or the Note (as defined in the Assumed Mortgage) during such period;

          (n) Liabilities related to stay bonuses of any Employee payable by any
Seller as previously disclosed in writing to Buyer via facsimile transmission on
April 10, 2002 (the "EMPLOYEE PAYMENTS");

          (o) Liabilities related to severance payments of any Employee payable
by any Seller as previously disclosed in writing to Buyer via facsimile
transmission on April 10, 2002; and

          (p) Liabilities relating to any prepayment penalties payable by any
Seller as a result of any repayment of amounts under Tranche A and Tranche B of
the DIP Facility but not any Liabilities with respect to Tranche C of the DIP
Facility.

          Section 2.4 EXCLUDED LIABILITIES. Except as otherwise set forth in
this Agreement, Buyer shall not assume, and shall be deemed not to have assumed,
any Liabilities except for the Assumed Liabilities, and Sellers shall be solely
and exclusively liable with respect to all Liabilities of Sellers other than the
Assumed Liabilities (collectively, the "EXCLUDED LIABILITIES"), including, but
not limited to, those Liabilities set forth below:

          (a) Any Liabilities which arise, whether before, on or after the
Closing, out of, or in connection with, the Excluded Assets;

          (b) Any Liabilities under the Assumed Contracts, to the extent that
the event or state of facts giving rise to such Liability does not occur after
the Closing; PROVIDED, HOWEVER,

                                      -13-
<Page>

Buyer shall assume Liabilities relating to any Inventory ordered by any Seller
that has not arrived prior to the Closing Date;

          (c) Except as set forth in Section 2.3, any Liabilities under the
Equipment Leases or the Real Property Leases, to the extent that the event or
state of facts giving rise to such Liability does not occur after the Closing;

          (d) Any Liabilities arising out of, or in connection with, any
Proceedings arising out of the operation of the Business, to the extent that the
event or state of facts giving rise to such Liability does not occur after the
Closing;

          (e) Any Liabilities arising out of or in connection with any
indebtedness of any Seller or any of its Affiliates to their lenders or to their
vendors of goods and services delivered or furnished to any Seller that does not
occur or continue to exist after the Closing, except as otherwise provided in
this Agreement (including Section 2.3(e));

          (f) Except for Liabilities set forth in Section 2.3, any Liabilities
attributable to, incurred in connection with, arising from, or relating to, any
collective bargaining agreement, or any bonus, incentive, deferred compensation,
medical, health, life or other insurance, welfare, fringe benefit, retention,
consulting, change of control, employment, stock option, stock appreciation
right, stock purchase, phantom stock or other equity-based, performance,
pension, retirement or any other incentive, compensation or benefit plan,
program, policy, agreement or arrangement (including, but not limited to, any
"employee benefit plan" as defined in Section 3(3) of ERISA), sponsored,
maintained, contributed to or required to be contributed to at any time by
Sellers or any trade or business which together with Sellers would be deemed (or
at any time would have been) a "single employer" within the meaning of Section
4001 of ERISA (each, an "ERISA AFFILIATE"), for the benefit of any current or
former employee, officer, director, agent or consultant of Sellers, or of any
ERISA Affiliate, whether formal or informal and whether legally binding or not,
to the extent that the event or state of facts giving rise to such Liability
occurs solely before the Closing Date or does not continue to exist after the
Closing Date;

          (g) Any Liabilities for income Taxes of Sellers and any other Taxes of
Sellers (other than Transfer Taxes, Liabilities for which are provided for in
Section 6.9), including, but not limited to, all Taxes attributable to, incurred
in connection with or arising out of the operation of the Business which are
attributable to any period ending on or before the Closing Date, including those
which are not due or assessed until after the Closing Date;

          (h) Any Liabilities of Sellers for replacement of, or refund for,
damaged, defective or other returned products or of warranty, products
liability, safety, advertising or other claims in respect to the Inventory, but
only to the extent that the event or state of facts giving rise to such
Liability does not occur or continue to exist after the Closing; and

          (i) Liabilities under the DIP Facility except as provided in Section
2.3(p).

          Section 2.5 REAL PROPERTY LEASES, EQUIPMENT LEASES AND ASSUMED
CONTRACTS. Without limitation on Buyer's obligations to cooperate in seeking
approval of the Bankruptcy Court for this Agreement, Buyer shall use its best
efforts to establish and satisfy the requirements

                                      -14-
<Page>

of adequate assurance of future performance for the assignment of all executory
contracts and unexpired leases, including without limitation, Assumed Contracts,
Equipment Leases and Real Property Leases, to be assigned to Buyer under this
Agreement.

          Section 2.6 WARRANTIES. To the extent the Closing occurs, the Assets
will be sold to Buyer, and Buyer hereby acknowledges and agrees that the Assets
will be sold, "AS IS, WHERE IS", REGARDLESS OF THE CONDITION OF THE ASSETS AND
WHETHER BUYER HAS INSPECTED AND EXAMINED THEM, AND EACH SELLER EXPRESSLY
DISCLAIMS ANY EXPRESS OR IMPLIED WARRANTIES WITH RESPECT THERETO, INCLUDING
WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT
TO EACH OF THE ASSETS. Buyer acknowledges that the representations and
warranties set forth herein shall not survive the Closing.

                                   ARTICLE III

                           CLOSING AND PURCHASE PRICE

          Section 3.1 CLOSING; TRANSFER OF POSSESSION; CERTAIN DELIVERIES.

          (a) Unless this Agreement shall have been terminated and the
transactions herein contemplated shall have been abandoned pursuant to Article
VIII hereof, the closing of the transactions contemplated herein (the "CLOSING")
shall take place at 10:00 a.m. (eastern standard time) on a date (the "CLOSING
DATE") to be mutually agreed upon by the parties, which date shall not be later
than the third Business Day after all the conditions set forth in Article VII
hereof (excluding, but subject to the satisfaction or waiver of, conditions
that, by their nature, cannot be satisfied prior to the Closing Date) shall have
been satisfied or waived, unless another time or date is agreed to in writing by
the parties. The Closing shall be held at the offices of Kramer Levin Naftalis &
Frankel LLP, 919 Third Avenue, New York, New York 10022, unless otherwise
mutually agreed to by the parties.

          (b) AT THE CLOSING, SELLERS SHALL DELIVER, OR SHALL CAUSE TO BE
DELIVERED, TO BUYER:

          (i) Such bills of sale, endorsements, assignments, and other good and
     sufficient instruments of transfer and conveyance reasonably necessary to
     vest in Buyer all of Sellers' interest in and title to the Assets in
     accordance herewith;

          (ii) An incumbency and specimen signature certificate, dated the
     Closing Date, from each Seller with respect to the officer or officers of
     each Seller executing this Agreement and any other documents delivered
     hereunder by or on behalf of Sellers;

          (iii) A certificate of each Seller, dated the Closing Date, signed by
     an authorized officer of each Seller, certifying that conditions specified
     in Sections 7.2(a) and (b) hereof have been fulfilled;

                                      -15-
<Page>

          (iv) A copy of the resolutions adopted by the Board of Directors of
     each Seller authorizing the execution, delivery and performance of this
     Agreement and the consummation of the transactions contemplated hereby,
     certified by a duly authorized officer of each Seller as of the Closing
     Date;

          (v) An assignment from each Seller of any trademarks listed on
     SCHEDULE 2.1(i); and

          (vi) Such other documents as may be reasonably requested by Buyer or
     its counsel necessary or appropriate to effectuate the terms of this
     Agreement; PROVIDED, HOWEVER, that Buyer shall provide Sellers with such
     documents at least three (3) Business Days prior to the Closing Date.

          (c) AT THE CLOSING, BUYER SHALL DELIVER, OR SHALL CAUSE TO BE
DELIVERED, THE FOLLOWING:

          (i) A wire transfer of federal funds to an account designated by
     Sellers at least two (2) Business Days prior to the Closing Date in the
     amount of One Hundred Seventy Million Dollars ($170,000,000) (less the Cash
     Deposit and the Adjustment Amount);

          (ii) An assignment and assumption agreement (the "ASSIGNMENT AND
     ASSUMPTION AGREEMENT"), in the form as attached as EXHIBIT A hereto,
     pursuant to which (a) Buyer shall assume the liabilities referred to in
     Section 2.3 hereof and (b) Sellers shall assign to Buyer all membership
     interests in Securex;

          (iii) A good standing certificate of Buyer dated within five (5) days
     of the Closing Date, issued by the Secretary of State of the jurisdiction
     of incorporation of Buyer;

          (iv) An incumbency and specimen signature certificate, dated the
     Closing Date, from Buyer with respect to the officers of Buyer executing
     this Agreement and any other document delivered hereunder by or on behalf
     of Buyer;

          (v) A certificate of Buyer, dated the Closing Date, signed by an
     authorized financial officer of Buyer certifying that conditions specified
     in Sections 7.3(a) and (b) hereof have been fulfilled; and

          (vi) Such other documents as may be reasonably requested by any Seller
     or its counsel necessary or appropriate to effectuate the terms of this
     Agreement; PROVIDED, HOWEVER, that Sellers shall provide Buyer with such
     documents at least three (3) Business Days prior to the Closing Date.

          Section 3.2 PURCHASE PRICE. In consideration for the Assets, and
subject to the terms and conditions of this Agreement, Buyer shall assume the
Assumed Liabilities as provided in Section 2.3 and shall pay to Sellers at
Closing in immediately available funds, by wire transfer to an account or
accounts designated by Sellers, an amount in cash equal to One Hundred Seventy
Million Dollars ($170,000,000) (the "PURCHASE PRICE") less (i) the Cash Deposit
(as defined in Section 3.5 below) to the extent paid to Sellers and (ii) the
Adjustment Amount.

                                      -16-
<Page>

          Section 3.3 ADJUSTMENT AMOUNT. The Purchase Price shall be reduced by
an amount equal to the sum of (x) the outstanding principal and interest balance
of the Assumed Mortgage on the Closing Date and (y) the Employee Payments (such
sum, the "ADJUSTMENT AMOUNT").

          Section 3.4 ALLOCATION OF PURCHASE PRICE. Buyer shall prepare and
deliver to Sellers a schedule (the "ALLOCATION SCHEDULE") allocating the
Purchase Price and the Assumed Liabilities among the Assets in accordance with
Section 1060 of the Code and any corresponding requirements of any state or
local Tax Laws as soon as practicable after the Closing Date, and in no case
later than forty-five (45) calendar days before the due date for filing any Tax
Returns with respect to the Allocation Schedule. Sellers will have the right to
raise reasonable objections to the Allocation Schedule within ten (10) calendar
days after their receipt thereof, in which event Buyer and Sellers will
negotiate in good faith to resolve such objections. If Buyer and Sellers cannot
mutually resolve Sellers' reasonable objections to the Allocation Schedule
within ten (10) calendar days after Buyer's receipt of such objections, such
dispute with respect to the Allocation Schedule shall be presented to an
independent accounting firm to be mutually selected by Buyer and Sellers, on the
next day for a decision that shall be rendered by such accounting firm within
ten (10) calendar days thereafter and shall be final and binding upon each of
the parties. The fees, costs and expenses incurred in connection therewith shall
be shared in equal amounts by Buyer and Sellers. Buyer and Sellers each shall
report and file all Tax Returns (including amended Tax Returns and claims for
refund) and shall cooperate in the filing of any forms (including Internal
Revenue Service Form 8594) consistent with the Allocation Schedule, and shall
take no position contrary thereto or inconsistent therewith (including, without
limitation, in any audits or examinations by any taxing authority or any other
proceedings). The Allocation Schedule shall have effect solely for Tax purposes
and the parties hereby understand and agree that the Allocation Schedule shall
have no impact or effect for any non-Tax purposes.

          Section 3.5 DEPOSIT. Buyer has placed on deposit an amount equal to
Fourteen Million Five Hundred Thousand Dollars ($14,500,000) (the "INITIAL
DEPOSIT"), in immediately available funds, by certified check or wire transfer
to an account or accounts designated by Sellers. On or before the close of
business on May 3, 2002, Buyer shall additionally place on deposit an amount
equal to Two Million Five Hundred Thousand Dollars ($2,500,000) (the "ADDITIONAL
DEPOSIT" and, together with the Initial Deposit, the "CASH DEPOSIT"), in
immediately available funds, by certified check or wire transfer to an account
or accounts designated by Sellers. At Closing, the Purchase Price shall be
reduced by the Cash Deposit to the extent such deposits are paid to Sellers. In
the event that either party terminates this Agreement pursuant to the terms and
conditions set forth in Article VIII of this Agreement, such Cash Deposit shall
be transferred to the appropriate party in accordance with Section 8.3 within
two (2) Business Days after such termination.

          Section 3.6 ADDITIONAL CONTRACTS. Buyer shall have the right to amend
SCHEDULE 2.1(e) to add additional Contracts not listed on SCHEDULE 2.1(e) (the
"ADDITIONAL CONTRACTS"), provided such Additional Contracts were not previously
disclosed to Buyer or were entered into after the date hereof; PROVIDED,
HOWEVER, that except as otherwise agreed to by Sellers, Buyer shall designate
such Additional Contracts no later than fifteen (15) days prior to the Sale
Hearing. Sellers and Buyer shall take all commercially reasonable steps
necessary to have all such Additional Contracts assumed by the relevant Sellers
and assigned to Buyer or its

                                      -17-
<Page>

designated Affiliate. Additional Contracts will be treated as Assumed Contracts
for purposes of this Agreement.

          Section 3.7 ADDITIONAL EQUIPMENT LEASES. Buyer shall have the right to
amend SCHEDULE 2.1(b) to add additional equipment leases not listed on SCHEDULE
2.1(b) (the "ADDITIONAL EQUIPMENT LEASES"), provided such Additional Equipment
Leases were not previously disclosed to Buyer or were entered into after the
date hereof; PROVIDED, HOWEVER, that except as otherwise agreed to by Sellers,
Buyer shall designate such Additional Equipment Leases no later than fifteen
(15) days prior to the Sale Hearing. Sellers and Buyer shall take all
commercially reasonable steps necessary to have all such Additional Equipment
Leases assumed by the relevant Sellers and assigned to Buyer or its designated
Affiliate. Additional Equipment Leases will be treated as Assumed Contracts for
purposes of this Agreement.

                                   ARTICLE IV

                    REPRESENTATIONS AND WARRANTIES OF SELLERS

          Except as set forth in Sellers' Disclosure Schedule delivered to Buyer
concurrently herewith ("SELLERS' DISCLOSURE SCHEDULE"), each Seller hereby
represents and warrants to Buyer as follows (Sellers' Disclosure Schedule shall
be arranged in paragraphs corresponding to the section numbers contained in this
ARTICLE IV, and the disclosure in any paragraph shall qualify only the
corresponding section of this ARTICLE IV, unless the disclosure contained in
such paragraph contains such information so as to enable a reasonable person to
determine that such disclosure qualifies or otherwise applies to other sections
of this ARTICLE IV):

          Section 4.1 ORGANIZATION AND GOOD STANDING. Other than as a result of
each Seller commencing its respective Case, each Seller and Securex (a) is a
corporation or a limited liability company, as applicable, duly organized,
validly existing and in good standing under the laws of the State of
Massachusetts or the State of Delaware, as applicable, (b) subject to any
necessary authorizations from the Bankruptcy Court, has full corporate or
company power, as applicable, and authority to own, lease and operate its
properties and carry on the Business as it is now being conducted and (c) is
duly qualified or licensed to do business and in good standing in each
jurisdiction set forth on SCHEDULE 4.1.

          Section 4.2 EXECUTION AND EFFECT OF AGREEMENT. Subject to obtaining
Bankruptcy Court approval pursuant to the Approval Order, each Seller has the
requisite corporate power and authority to enter into this Agreement and to
perform its obligations hereunder, and the execution and delivery of this
Agreement by each Seller and the consummation by each Seller of the transactions
contemplated hereby and the performance of each Seller's obligations hereunder
have been duly authorized by all necessary corporate action on the part of each
Seller. This Agreement has been duly executed and delivered by each Seller and,
following the approval of this Agreement and the transactions contemplated
hereby by the Bankruptcy Court pursuant to the Approval Order, will constitute
the legal, valid and binding obligation of each Seller, enforceable against each
Seller in accordance with its terms.

          Section 4.3 NO CONTRAVENTION. Subject to obtaining the approval of the
Bankruptcy Court pursuant to the Approval Order, neither the execution and
delivery of this

                                      -18-
<Page>

Agreement nor the consummation of the transactions contemplated hereby will (a)
violate or conflict with any provision of any Seller's certificate of
incorporation or bylaws, (b) (with or without the giving of notice or the lapse
of time or both) violate, or result in a breach of, or constitute a default
under, or conflict with, or accelerate the performance required by, any of the
terms of any material Assumed Contract or other material Contract to which any
Seller is a party or by which it is bound, except to the extent any of the
foregoing is not enforceable due to operation of applicable bankruptcy law or
the Approval Order and except to the extent that such Contract is not assumable
under 365(c) of the Bankruptcy Code, (c) violate or conflict with any, Order of
any court, Governmental Entity or arbitrator, or any Law applicable to any
Seller, or (d) result in the creation of any Lien upon any of the Assets (other
than with respect to the Assumed Mortgage).

          Section 4.4 THIRD PARTY APPROVALS. Except for (a) the Approval Order
and (b) any other third-party approvals as are reflected on SCHEDULE 4.4 hereto,
the execution, delivery and performance by each Seller of this Agreement and the
transactions contemplated hereby do not require any consents, waivers,
authorizations or approvals of, or filings with, any third Persons which have
not been obtained by Sellers.

          Section 4.5 SUBSIDIARIES. Other than any interest in any other Seller
and Securex, no Seller or Securex has any Subsidiaries or owns, directly or
indirectly, any capital stock or subordinated debt of, or other equity interests
in, any Person, or is a member of or participant in any Person. There are no
preemptive or other outstanding rights, options, warrants, conversion rights,
stock appreciation rights, redemption rights, agreements, arrangements or
commitments to issue or sell any shares of capital stock, membership interests
or other securities of Securex or any securities or obligations convertible or
exchangeable into or exercisable for, or giving any Person a right to subscribe
for or acquire, any securities of Securex, and no securities or obligations
evidencing such rights are authorized, issued or outstanding. All of the issued
and outstanding membership interests of Securex are owned beneficially by a
Seller.

          Section 4.6 SECUREX LIABILITIES. Securex has no Liabilities (absolute,
accrued, contingent, unknown or otherwise) which are required by GAAP to be
reflected on a balance sheet except for (i) Liabilities which arose in the
ordinary course of business after the formation of Securex, and (ii) Liabilities
set forth on SCHEDULE 4.6, except to the extent such Liabilities would not,
individually or in the aggregate, be materially adverse to Securex.

          Section 4.7 TAXES. Each Seller, Securex and each consolidated group
(for federal income Tax purposes) of which any Seller or Securex is a member has
timely filed all material returns, reports, statements and forms required to be
filed by any applicable federal, state, local or foreign Tax Laws (each, a "TAX
RETURN"), or requests for extensions have been timely filed and any such
extensions have been granted and have not expired, and all such Tax Returns were
correct and complete in all material respects. All material Taxes required to be
paid with respect to the periods covered by such Tax Returns have been or will
be timely paid in full or discharged by order of the Bankruptcy Court or an
adequate reserve has been established therefor in accordance with GAAP. There
are no liens for material Taxes on any of the assets of JBAK Canton and Securex
(other than liens for current Taxes not yet due and payable).

                                      -19-
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          Section 4.8 COMPLIANCE WITH LAW. To the Knowledge of Sellers, each
Seller and Securex (a) has complied with all Laws applicable to the Business
and/or the Assets, except where the failure to comply has not had a Material
Adverse Effect and (b) is not in default in respect of any commitment letter or
similar undertaking to, is not subject to any Order by, and has not adopted any
board resolutions at the request of, any Governmental Entity (a "GOVERNMENTAL
DIRECTIVE"), except for defaults, Orders or Governmental Directives which,
individually or in the aggregate, would not have a Material Adverse Effect.

          Section 4.9 GOVERNMENTAL PERMITS. SCHEDULE 2.1(d) lists each Permit of
each Seller and Securex, except where the failure to have such Permit would not,
individually, or in the aggregate, have a Material Adverse Effect.

          Section 4.10 SECUREX LITIGATION.

          (a) There are no Proceedings pending, or to the Knowledge of Sellers,
threatened in writing, against Securex at law or in equity before any court,
arbitrator or other Governmental Entity, that would, if adversely determined
against Securex, individually, or in the aggregate, be materially adverse to
Securex.

          (b) Securex is not a party to any Governmental Directive affecting the
operation of the Business or the Assets that would, individually, or in the
aggregate, be materially adverse to Securex.

          Section 4.11 REAL ESTATE; REAL PROPERTY LEASES.

          (a) Securex does not own, and has never owned, any real property and
does not hold an option to acquire any real property.

          (b) SCHEDULE 2.1(a) lists each of the Real Property Leases (true and
complete copies of which have been provided or made available to Buyer as of the
date hereof) entered into by any Seller or Securex, each of which, to the
Knowledge of Sellers, has not been terminated.

          Section 4.12 CONTRACTS. SCHEDULE 2.1(e) sets forth a true and complete
list of each of the material Assumed Contracts (true and complete copies of
which have been provided or made available to Buyer as of the date hereof),
other than non-Inventory and Inventory purchase orders entered into in the
ordinary course of business consistent with past practice.

          Section 4.13 INTELLECTUAL PROPERTY.

          (a) SCHEDULE 2.1(i) sets forth a true and complete list and summary
description of all Owned Intellectual Property that is Filed. To the Knowledge
of Sellers, each Seller designated on such Schedule owns or holds valid rights
to use the Intellectual Property set forth on such Schedules.

          (b) No suit, action, reexamination, public protest, interference,
arbitration, mediation, opposition, cancellation or other proceeding is pending
or has been threatened or asserted in writing concerning any Owned Intellectual
Property.

                                      -20-
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          Section 4.14 LABOR MATTERS.

          (a) No Seller or any of its Subsidiaries is a party to any labor or
collective bargaining agreement with respect to its employees relating to the
Business.

          (b) Sellers have not taken any action relating to the Business at any
single site of employment in the 90-day period prior to the Closing Date that
would constitute a "mass layoff" or "plant closing" within the meaning of the
WARN Act, or any similar state or local Law, or otherwise trigger notice
requirements or liability under any local or state plant closing notice Law.

          (c) Sellers will promptly provide to Buyer a true, complete and
correct list, as of the most recent practicable date, of each employee of
Sellers, together with each employee's (i) starting date of employment, (ii) job
title and (iii) present hourly or, if salaried, annual compensation rate, and a
true, complete and correct list, as of the most recent practicable date, with
respect to such employees without reference to compensation rate.

          Section 4.15 EMPLOYEE BENEFITS.

          (a) SCHEDULE 4.15(a) contains a list of the Benefit Plans of Sellers
that Buyer is assuming, including (i) each "employee benefit plan," as defined
in Section 3(3) of ERISA, covering current or former employees of Sellers, or
which Sellers maintain or to which Sellers have an obligation to contribute or
to which Sellers may have liability (contingent or otherwise) and (ii) each
pension, profit-sharing, retirement, hospitalization, salary continuation,
tuition assistance or other medical, life or other insurance, severance,
change-in-control, fringe benefit, bonus, incentive and deferred compensation
plan, agreement, program, policy or other arrangement covering current or former
employees of Sellers or which Sellers maintain or sponsor or to which they
contribute, whether subject to the Law of the United States or a foreign Law.
All such plans, agreements, programs, policies and arrangements shall be
collectively referred to as the "Benefit Plans."

          (b) None of the Benefit Plans is subject to Title IV of ERISA or
Section 412 of the Code.

          (c) To the Knowledge of Sellers, each Benefit Plan has been
administered in all material respects in accordance with its terms. There is no
pending or, to the Knowledge of Sellers or their Subsidiaries, threatened in
writing legal action, suit or claim relating to the Benefit Plans, except where
such pending or threatened legal action, suit or claim has not or would not,
individually or in the aggregate, have a Material Adverse Effect.

          (d) No Seller has engaged in the transactions contemplated by this
Agreement for the evasion of liability under Section 4069 of ERISA.

          Section 4.16 INSURANCE. SCHEDULE 4.16 lists the insurance policies
maintained by any Seller relating to the Business.

          Section 4.17 BROKERS AND FINDERS. Except for Robertson Stephens, no
broker, finder, consultant or intermediary is entitled to a broker's, finder's
or similar fee or commission

                                      -21-
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which is payable by Sellers in connection with the transactions contemplated by
this Agreement or upon the consummation of the transaction contemplated hereby,
or if the Closing does not occur.

          Section 4.18 FINANCIAL STATEMENTS. The financial statements attached
as SCHEDULE 4.18 are true and correct in all material respects for the periods
reflected thereon and accurately reflect for such periods the operating results
of the ongoing components of the Business.

          Section 4.19 MORTGAGE.

          (a) The Property (as defined in the Assumed Mortgage) subject to the
Assumed Mortgage has not been sold, transferred or assigned.

          (b) No default has occurred and is continuing under the Assumed
Mortgage, the Note (as defined in the Assumed Mortgage) or the Security
Documents (as defined in the Assumed Mortgage).

                                    ARTICLE V

                     REPRESENTATIONS AND WARRANTIES OF BUYER

          Except as set forth in Buyer's Disclosure Schedule delivered to
Sellers concurrently herewith ("BUYER'S DISCLOSURE SCHEDULE"), Buyer hereby
represents and warrants to Sellers as follows (Buyer's Disclosure Schedule shall
be arranged in paragraphs corresponding to the section numbers contained in this
ARTICLE V, and the disclosure in any paragraph shall qualify only the
corresponding section of this ARTICLE V, unless the disclosure contained in such
paragraph contains such information so as to enable a reasonable person to
determine that such disclosure qualifies or otherwise applies to other sections
of this ARTICLE V):

          Section 5.1 ORGANIZATION AND GOOD STANDING. Buyer is a corporation
duly organized, validly existing and in good standing under the laws of its
jurisdiction of formation, and has full corporate power and authority to own,
lease and operate its properties and carry on its business as it is now being
conducted.

          Section 5.2 EXECUTION AND EFFECT OF AGREEMENT. Buyer has the requisite
corporate power and authority to enter into this Agreement and to perform its
obligations hereunder, and the execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby and the performance of
Buyer's obligations hereunder have been duly authorized by all necessary
corporate action on the part of Buyer. This Agreement has been duly executed and
delivered by Buyer and constitutes the legal, valid and binding obligation of
Buyer, enforceable against Buyer in accordance with its terms.

          Section 5.3 NO CONTRAVENTION. Neither the execution and delivery of
this Agreement nor the consummation of the transactions effected hereby will (i)
violate or conflict with any provision of Buyer's certificate of incorporation
or by-laws, (ii) (with or without the giving of notice or the lapse of time or
both) violate, or result in a breach of, or constitute a

                                      -22-
<Page>

default under, or conflict with, or accelerate the performance required by, any
of the terms of any material Contract to which Buyer is a party or by which it
is bound, or (iii) violate or conflict with any judgment, decree, order or award
of any court, governmental body or arbitrator, or any Law applicable to Buyer.

          Section 5.4 THIRD PARTY APPROVALS. Except for any third party
approvals as are reflected on SCHEDULE 5.4 hereto, the execution, delivery and
performance by Buyer of this Agreement and the transactions contemplated hereby
do not require any consents, waivers, authorizations or approvals of, or filings
with, any third Persons which have not been obtained by Buyer.

          Section 5.5 BROKERS AND FINDERS. Except for Credit Suisse First
Boston, no broker, finder, consultant or intermediary is entitled to a broker's,
finder's or similar fee or commission which is payable by Buyer in connection
with the transactions contemplated by this Agreement or upon the consummation of
the transaction contemplated hereby, or if the Closing does not occur.

          Section 5.6 FUNDS. Buyer, as of the Closing Date, will have sufficient
unrestricted funds to consummate the transactions contemplated by this
Agreement.

          Section 5.7 ORGANIZATIONAL DOCUMENTS. Copies of the articles of
incorporation and by-laws of Buyer (i) will be delivered to Sellers on the
Closing Date, (ii) will be reasonably acceptable to Sellers and (iii) are
accurate and complete, without any amendment, modification or supplement.

          Section 5.8 INVESTIGATION AND EVALUATION. Execution of this Agreement
shall constitute Buyer's representation that Buyer has requested and been
provided with the opportunity to review and examine originals or copies of such
documents of or relating to the Business and the Assets and the transactions
contemplated by this Agreement as Buyer has deemed necessary or desirable to
evaluate the merits of purchasing the Assets and assuming the Assumed
Liabilities and Buyer has made its determination to do so solely based upon its
own analysis. Buyer understands and agrees that Sellers make and have made no
representations in connection with the purchase and transfer by Buyer of the
Assets and Assumed Liabilities other than those expressly contained herein or in
the Assignment and Assumption Agreement.

                                   ARTICLE VI

                            COVENANTS OF THE PARTIES

          Section 6.1 CONDUCT OF BUSINESS. From and after the date hereof and
until the Closing Date:

          (a) Each Seller shall use commercially reasonable efforts in the
context of the Cases to cause the Business to be conducted in the ordinary
course and consistent with the present, Post-Petition, conduct of the Business.

                                      -23-
<Page>

          (b) Each Seller shall be permitted to remove cash from the cash
registers after the close of business each day, consistent with past practices;
PROVIDED, HOWEVER, that Sellers shall keep Four Hundred Dollars ($400) in each
of Sellers' Stores on the Closing Date.

          (c) Seller shall provide Buyer with copies of any amendment to or
termination of any Assumed Contract described under Section 6.1(d)(iii).

          (d) Each Seller agrees it will not, without the prior consent of
Buyer, which consent shall not be unreasonably withheld, delayed or conditioned:

          (i) materially change the general character of the Business or enter
     into a material new line of Business or cease a material current line of
     Business; PROVIDED, HOWEVER, that the foregoing shall not apply to the
     conversion of the stores previously operated under the "REPP" or "B&T
     Factory Store" trade names into stores that are or will be operating under
     the "Casual Male Premier", "Casual Male" or "Casual Male Outlet" trade
     names, including any actions relating to such rebranding or conversion of
     such business lines or other rebranding or conversion of other portions of
     the Business (including, without limitation, e-commerce, catalogue and
     retail outlet operations) to utilize the "Casual Male" trade name;

          (ii) amend any organizational documents of Securex, except to the
     extent as may be reasonably necessary to consummate the transactions
     contemplated by this Agreement;

          (iii) enter into, or make any amendment of, or terminate, any Assumed
     Contract (other than the Continued Employee Loans) or Real Property Leases,
     other than in the ordinary course of business, which amendment or
     termination, would have a Material Adverse Effect;

          (iv) except in accordance with policies, practices or agreements in
     effect on the date hereof, enter into or amend any employment, consulting
     or severance agreement with, or grant any severance pay to, any Continued
     Employee or increase the compensation of any Continued Employee other than
     in the ordinary course of business consistent with the present,
     Post-Petition, conduct of the Business in the context of the Cases;

          (v) establish any new Benefit Plan or broaden eligibility for, or
     materially increase the benefits provided by, any such plan except to the
     extent required by law, the plan or any insurance carrier providing
     benefits under an existing plan;

          (vi) intentionally take any action with the principal purpose of
     discouraging the executive employees as of the date hereof, from continuing
     to be employed by the Business prior to the Closing Date; PROVIDED,
     HOWEVER, that Sellers shall not be obligated to modify or enhance any
     compensation or benefits to such employees to encourage them to remain
     employed prior to the Closing Date; or

          (vii) enter into or agree to enter into any agreement or arrangement
     in violation of the foregoing.

                                      -24-
<Page>

          (e) Nothing in this Section 6.1 shall obligate any Seller to pay any
Claim or Liability arising prior to the commencement of the Cases.

          Section 6.2 ACCESS. From the date hereof until the Closing Date, each
Seller shall allow Buyer's employees, agents and Representatives during regular
business hours to make such investigation of the Business and each Seller's
books and records related thereto, as Buyer reasonably deems necessary or
advisable, and each Seller shall instruct its employees to cooperate in any such
investigation; PROVIDED, HOWEVER, that such investigation shall not unreasonably
interfere with the business or operations of each Seller; PROVIDED FURTHER,
HOWEVER, that no Seller shall be required to take any action which would
constitute a waiver of the attorney-client privilege; PROVIDED FURTHER, HOWEVER,
that Sellers shall provide Buyer with an explanation of the basis for the
assertion of any such privilege (without Sellers being required to waive such
privilege in providing such explanation). From and after the Closing Date until
the closure of Sellers' Cases, but in no event later than two (2) years from the
Closing Date, Buyer shall keep such books and records in a manner consistent
with each Seller's past practice and such books and records shall not be
destroyed or removed from their present location; PROVIDED, HOWEVER, that Buyer
may destroy any such books and records, upon three (3) weeks prior written
notice to Sellers. Within such two (2)-year time period, each Seller, at Buyer's
expense, shall have the right for any proper purpose, upon reasonable notice to
Buyer, to inspect and make copies of the same, and to have access to, and use
of, all personnel at any time during regular business hours to assist with the
wind-down of Sellers' estates and Cases, including assistance with the
reconciliation of any third-party Claim in respect of which Seller may have
Liability hereunder; PROVIDED, HOWEVER, that such inspection and access shall
not materially interfere with the business or operations of Buyer. After such
two (2)-year time period, should Buyer plan or otherwise intend to destroy or
remove such books and records from their present location, Buyer must provide
written notice to Sellers at least three (3) weeks prior to the date that such
books and records are to be destroyed to allow Sellers to make copies or
otherwise obtain such books and records. In addition, Buyer shall provide
Sellers with reasonable office space, and use of office equipment, in accordance
with SCHEDULE 6.2 hereof, at no cost to Sellers, to use in connection with the
wind-down of Sellers' estates and Cases from and after the Closing Date until
the closure of Sellers' Cases, but in no event later than two (2) years from the
Closing Date.

          Section 6.3 PUBLIC ANNOUNCEMENTS. No party shall issue a press release
or otherwise make any public statements with respect to the transactions
contemplated hereby, except as may be required by Law, by obligations pursuant
to any listing agreement with any national securities exchange or
over-the-counter market or with respect to filings to be made with the
Bankruptcy Court in connection with this Agreement (in which case the party
required to make such public statement shall notify the other party and shall
consult with such other party prior to making such public statement), without
the prior consent of the other, which consent shall not be unreasonably
withheld.

          Section 6.4 REASONABLE EFFORTS. Upon the terms and subject to the
conditions herein provided, each of the parties hereto shall use its respective
reasonable, good faith efforts to take, or cause to be taken, all actions, and
to do, or cause to be done, and to assist and cooperate with the other party
hereto in doing, all things necessary, proper or advisable under applicable Laws
to ensure that the conditions set forth in this Agreement are satisfied and to
consummate and make effective, in the most expeditious manner practicable, the
transactions

                                      -25-
<Page>

contemplated by this Agreement. Without limiting the generality of the
foregoing, the parties hereto shall furnish to each other such necessary
information and reasonable assistance, as each may request, in connection with
Sellers' preparation and filing of applications and motion papers, including the
Sale Motion, needed to obtain Bankruptcy Court approval of the transactions
contemplated by this Agreement, and shall execute any additional instruments
necessary to consummate the transactions contemplated hereby, whether before or
after the Closing.

          Section 6.5 NOTIFICATION OF CERTAIN MATTERS. Each Seller shall give
prompt notice to Buyer, and Buyer shall give prompt notice to Sellers, of (i)
any notice or other communication from any Person alleging that the consent of
such Person is or may be required in connection with the transactions
contemplated by this Agreement and (ii) any written objection, litigation or
administrative proceeding that challenges the transactions contemplated hereby
or the entry of the Approval Order.

          Section 6.6 EMPLOYEES.

          (a) BENEFITS. Each Seller shall terminate all persons who are
employees of the Business (the "EMPLOYEES") on the Closing Date and who shall
remain employees of the Business after the Closing Date. Prior to Closing, Buyer
shall offer full-time employment effective as of the Closing to all Employees
(other than part-time Employees who shall be offered substantially equivalent
part-time employment effective as of the Closing), whether or not such Employees
are actively at work on the Closing Date (including, Employees on vacation, sick
leave, short-term disability and long-term disability). Each such offer of
employment by Buyer shall be for a substantially similar position as such
Employee held immediately prior to the Closing and at the same salary or regular
wage rate received by such Employee immediately prior to the Closing Date. Buyer
shall provide the Employees who accept Buyer's offer of employment ("CONTINUED
EMPLOYEES") with employee benefits that are substantially comparable, in the
aggregate, to the benefits received by the Continued Employees immediately prior
to the Closing Date. Buyer shall provide all Continued Employees with credit for
their service with Sellers for all purposes under Buyer's employee benefit
plans, including eligibility and vesting, and shall ensure that Continued
Employees are credited for all deductibles and out-of-pocket expenses incurred
by the Continued Employees during the calendar year in which the Closing Date
occurs. Buyer shall not during the 90-day period beginning on the Closing Date
terminate the employment of Continued Employees of the Business so as to cause
any "plant closing" or "mass layoff" (as those terms are defined in the WARN
Act) such that Sellers have any obligation under the WARN Act that Sellers
otherwise would not have had absent such terminations. Sellers and Buyer shall
cooperate in sending a mutually acceptable communication to Employees prior to
the Closing Date regarding continued employment and other employment related
matters.

          (b) ALTERNATIVE TAX PROCEDURE. Pursuant to the "Alternative Procedure"
provided in Section 5 of Revenue Procedure 96-60, 1996-2 C.B. 399, (i) Buyer and
Sellers shall report on a predecessor/successor basis as set forth therein, (ii)
Sellers will be relieved from filing a Form W-2 with respect to any Continued
Employees who actually commence such employment with Buyer and (iii) Buyer will
undertake to file (or cause to be filed) a Form W-2 for each such Continued
Employee for the year that includes the Closing Date (including the

                                      -26-
<Page>

portion of such year that such employee was employed by Sellers). Each Seller
shall provide Buyer on a timely basis with all payroll and employment-related
information with respect to each employee of a Seller who accepts employment
with Buyer.

          Section 6.7 FURTHER ASSURANCES. On and after the Closing Date, the
parties shall take all appropriate action and shall execute all documents,
instruments or conveyances of any kind that may be reasonably necessary or
advisable to carry out any of the provisions hereof.

          Section 6.8 FURTHER AGREEMENTS. Each Seller authorizes and empowers
Buyer on and after the Closing Date to receive and to open all mail received by
Buyer relating to the Assets, the Business or the Assumed Liabilities and to
deal with the contents of such communications in any proper manner. Each Seller
shall promptly deliver to Buyer any mail or other communication received by such
Seller after the Closing Date pertaining to the Assets, the Business or the
Assumed Liabilities. Buyer shall promptly deliver to the applicable Seller any
mail or other communication received by it after the Closing Date pertaining to
the Excluded Assets or any Excluded Liabilities and any cash, checks or other
instruments of payment in respect thereof. From and after the Closing Date, each
Seller shall refer all inquiries with respect to the Business, the Assets and
the Assumed Liabilities to Buyer, and Buyer shall refer all inquiries with
respect to the Excluded Assets and the Excluded Liabilities to the applicable
Seller.

          Section 6.9 PAYMENT OF TRANSFER TAXES AND TAX FILINGS.

          (a) Except to the extent as provided in the Approval Order pursuant to
Section 1146(c) of the Bankruptcy Code, all Transfer Taxes arising out of the
transfer of the Assets and the other transactions contemplated hereby and any
Transfer Taxes required to effect any recording or filing with respect thereto
shall be borne by Buyer. The Transfer Taxes shall be calculated assuming that no
exemption from Transfer Taxes is available, unless otherwise indicated in the
Approval Order or, on or before the due date for such Transfer Taxes, Buyer
shall provide an appropriate resale exemption certificate or other evidence
acceptable to Sellers of exemption from such Transfer Taxes. Sellers and Buyer
shall cooperate to timely prepare and file any returns or other filings relating
to such Transfer Taxes, including any claim for exemption or exclusion from the
application or imposition of any Transfer Taxes. Buyer shall timely pay such
Transfer Taxes and shall file all necessary documentation and returns with
respect to such Transfer Taxes when due, and shall promptly following the filing
thereof furnish a copy of such return or other filing and a copy of a receipt
showing payment of any such Transfer Tax to Sellers.

          (b) Each party shall furnish or cause to be furnished to the others,
upon request, as promptly as practicable, such information and assistance
relating to the Assets and the Business as is reasonably necessary for filing of
all Tax Returns, including any claim for exemption or exclusion from the
application or imposition of any Taxes or making of any election related to
Taxes, the preparation for any audit by any taxing authority and the prosecution
or defense of any claim, suit or proceeding relating to any Tax Return.

                                      -27-
<Page>

          Section 6.10 UTILITIES AND BANK ACCOUNTS.

          (a) As soon as is practicable, following the Closing, Sellers and
Buyer shall cooperate so as to cause the gas, water, telephone, electric, and
other utility companies to transfer Sellers' accounts for the operation of the
Business to Buyer and Sellers shall only be responsible for the payment of all
charges incurred therefor through the Closing Date. Sellers shall use their
reasonable efforts to assist Buyer, upon request of Buyer, in commencing
services with the gas, water, telephone, electric or other utility companies
with respect to the operation of the Business.

          (b) Each Seller shall deliver to Buyer all information necessary for
Buyer to take possession of, and make use of, the current bank accounts for all
Stores and will use reasonable efforts to facilitate the transfer of such bank
accounts from each Seller to Buyer; PROVIDED, HOWEVER, that each Seller shall
remove and retain all cash from such bank accounts.

          Section 6.11 PRORATION OF TAXES AND CERTAIN CHARGES. Except as
provided elsewhere in this Agreement, including, without limitation, in Section
6.9 and Section 6.10, all real property, personal property and similar ad
valorem Taxes (such Taxes, "ASSET TAXES") levied, interest and other charges
associated with the Assumed Mortgage (subject to Section 6.23), charges of rent
and other occupancy expenses (including, without limitation, common area
maintenance charges) related to the operation of the Business, and all
installments of special assessments or other charges paid with respect to the
Assets, for any period that includes the Closing Date but does not terminate on
the Closing Date, whether imposed or assessed before or after the Closing Date,
shall be prorated between Sellers and Buyer as of the Closing Date. All refunds,
rents, fees or other use related revenue receivable by any party to the extent
attributable to the operation of the Business for any period in which the
Closing shall occur shall be prorated so that Sellers shall be entitled to the
portion applicable to the period up to but not including the Closing Date and
Buyer shall be entitled to the portion applicable from and after the Closing
Date. If Asset Taxes or charges are paid or payments are received by Buyer, on
the one hand, or Sellers, on the other hand, the proportionate amount of such
Asset Taxes or charges paid or payments received shall be paid promptly by (or
to) the other after such Asset Taxes or charges are paid or payments are
received. Charges assessed based upon usage of utility or similar services shall
be prorated based upon meter readings taken on the Closing Date. Prorations of
items that accrue or are due after the Closing Date may be calculated as each
item to be prorated accrues or comes due, provided that each such proration
shall be calculated not later than five (5) Business Days after the party
requesting proration of any item obtains the information required to prorate the
item.

          Notwithstanding anything to the contrary in this Agreement, after the
Closing, neither Buyer nor any Seller shall assert any claim against the other
in respect of any credit, offset, adjustment or reimbursement for underpayment
or overpayment of Asset Taxes, interest and other charges associated with the
Assumed Mortgage (subject to Section 6.23) or lease related expenses (including,
without limitation, real estate Taxes, personal property Taxes, utilities,
common area maintenance charges, deposits, and prepaid expenses).

          Section 6.12 BULK SALES. Each of the parties hereto waives compliance
with any applicable provisions of the Uniform Commercial Code Article 6 (Bulk
Sales or Bulk Transfers)

                                      -28-
<Page>

or analogous provisions of Law, as adopted in the states in which the Business
is conducted as such provisions may apply to the transactions contemplated by
this Agreement.

          Section 6.13 [RESERVED.]

          Section 6.14 [RESERVED.]

          Section 6.15 INSURANCE DEDUCTIBLES. Sellers' estates shall remain
liable for the payment of any deductible under the insurance policies described
in Section 2.1(m) with respect to any Claim arising from events occurring prior
to the Closing Date (other than Assumed Liabilities).

          Section 6.16 LEASE/CONTRACT REJECTION OPTIONS.

          (a) From the date hereof, through May 13, 2002, Buyer shall have the
option to designate, in writing (the "LEASE REJECTION DESIGNATION") up to
fifteen (15) Real Property Leases (other than the Canton Real Property Lease)
(the "REJECTED LEASES") which Buyer does not elect to have Sellers assume and
assign to Buyer (the "LEASE REJECTION OPTION"), in which case such Rejected
Leases shall not constitute Real Property Leases under this Agreement. The
Inventory located in the Stores that are the subject of the Rejected Leases (the
"REJECTED STORES") shall constitute Assets hereunder (the "REJECTED STORE
INVENTORY") and Buyer shall have twenty (20) days after the Closing Date to
remove such Rejected Store Inventory from the subject Stores, at Buyer's expense
(the "REJECTED STORE INVENTORY REMOVAL DEADLINE"). Neither Buyer nor Sellers
shall operate the Rejected Stores during the period after the Closing Date.
Buyer shall be responsible for all costs related to the Rejected Leases and the
Rejected Stores during the period between the Closing Date and the date that
Buyer vacates the respective Rejected Store(s) in broom clean condition (the
"REJECTED STORE VACATE DATE"). The Rejected Leases shall be deemed rejected by
Sellers on the later of (i) the date that is five (5) Business Days after
Sellers provide the respective landlord under such Real Property Leases that
such lease has been designated as a Rejected Lease, which notice shall be
provided by Sellers no later than five (5) Business Days prior to the Rejected
Store Inventory Removal Deadline, and (ii) the first day after the Rejected
Store Vacate Date.

          (b) From the date hereof, through May 13, 2002, Buyer shall have the
option to designate, in writing (the "CONTRACT REJECTION DESIGNATION") the
Contracts that are related exclusively to the Rejected Stores (the "REJECTED
CONTRACTS") which Buyer does not elect to have Sellers assume and assign to
Buyer (the "CONTRACT REJECTION OPTION"), in which case such Rejected Contracts
shall not constitute Contracts under this Agreement. The Rejected Contracts
shall be deemed rejected by Sellers on the later of (i) the date that is five
(5) Business Days after Sellers provide the respective third party to such
Rejected Contract with written notice that such contract has being rejected,
which notice shall be provided by Sellers no later five (5) Business Days prior
to the Rejected Store Inventory Removal Deadline, and (ii) the first day after
the Rejected Store Vacate Date; PROVIDED, HOWEVER, that Buyer shall be
responsible for all costs related to the Rejected Contracts during the period
between the Closing Date and the respective Rejected Store Vacate Date.

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          (c) Buyer shall indemnify and hold Sellers harmless from, and be
solely liable for, all liabilities against Sellers, arising out of or related
to, the rejection of the Rejected Leases and/or Rejected Contracts, including,
but not limited to, rejection damage Claims by landlords under the Real Property
Leases under Section 502(b)(6) of the Bankruptcy Code, any employee claims
(including termination and severance claims) and any WARN and similar state Law
Liabilities under any Rejected Contracts, in each case, only to the cash amounts
that Sellers would be obligated to disburse to the holders of such Claim or
Liability under the provisions of the Bankruptcy Code, which amounts shall be
paid by Buyer to Sellers within twenty (20) days from Buyer's receipt of written
notice from Sellers of the next projected distribution date and the projected
distribution under Sellers' confirmed chapter 11 plan or plans.

          Section 6.17 REGULATORY APPROVAL.

          (a) Each of Sellers and Buyer will use their best efforts to obtain
all authorizations, consents, orders and approvals of all federal, state and
foreign regulatory bodies and officials that may be or become necessary for the
performance of its obligations pursuant to this Agreement or the Assignment and
Assumption Agreement and will cooperate fully with the other party in promptly
seeking to obtain all such authorizations, consents, orders and approvals. Each
of Sellers and Buyer agree to (i) make an appropriate filing of a Notification
and Report Form pursuant to the HSR Act with respect to the transactions
contemplated hereby as soon as reasonably practicable after the date hereof but
in no event later than five (5) Business Days after the date hereof, (ii) use
commercially reasonable efforts to assist each other in making any and all
filings under the HSR Act, and (iii) take such other action as may be reasonably
required in connection with any and all filings under the HSR Act. Neither
Sellers nor Buyer will take any action that will have the effect of delaying,
impairing or impeding the receipt of any required approval.

          (b) If, in order to properly prepare documents required to be filed
with governmental authorities (including future filings under the HSR Act) or
its financial statements, it is necessary that either Sellers or Buyer be
furnished with additional information relating to the Business, the Assets or
the Assumed Liabilities, and such information is in the possession of the other
party, such party agrees to use its best efforts to furnish such information in
a timely manner to such other party, at the cost and expense of the party being
furnished such information.

          Section 6.18 AVOIDANCE ACTION. No Seller shall commence, prosecute, or
assign any Avoidance Action against the trade vendors as mutually agreed upon by
Sellers and Buyer, for purposes of seeking an affirmative recovery against such
trade vendors; PROVIDED, HOWEVER, that Sellers may pursue such Avoidance Actions
against such trade vendors in order to offset or reduce or otherwise mitigate
any claim(s) being pursued by such trade vendor against Sellers' estates. No
Seller shall commence, prosecute, or assign any Avoidance Action under Section
547 of the Bankruptcy Code for purposes of seeking an affirmative recovery;
PROVIDED, HOWEVER, that Sellers may pursue such Avoidance Actions under Section
547 of the Bankruptcy Code in order to offset or reduce or otherwise mitigate
any claim(s) being pursued against Sellers' estates.

                                      -30-
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          Section 6.19 LIMITED LICENSE. Buyer hereby grants Sellers a fully-paid
license to use Buyer's corporate names and tradenames for the limited purpose of
effectuating the wind-down of Sellers' estates.

          Section 6.20 WORK `N GEAR. In the absence of an agreement between
Sellers and Buyer with respect to the operation of Work `n Gear, until the
earlier of the closing of the sale of the assets of Work `n Gear and the first
anniversary of the Closing Date, Buyer shall use commercially reasonable efforts
to continue to operate such business in the ordinary course consistent with the
past practice of Sellers for the account of Sellers but in a manner contemplated
by the Transition Services Agreement.

          Section 6.21 REAL PROPERTY LEASES. Sellers shall provide Buyer with
updated Real Property Leases as such updates become available to Sellers.

          Section 6.22 CONTINUED EMPLOYEE LOANS. Buyer shall forgive the
Continued Employee Loans in accordance with the terms thereof as such Continued
Employee Loans may be modified prior to the Closing Date. Sellers shall be
permitted to modify such Continued Employee Loans at any time prior to the
Closing Date, without the consent of Buyer, notwithstanding anything to the
contrary in Section 6.1(d)(iii).

          Section 6.23 CONSENT FEES. Subject to the time periods set forth in
Section 2.3(m), Buyer shall pay all consent, assumption, transfer or other fees
or expenses in connection with the assumption or prepayment of the Assumed
Mortgage.

                                   ARTICLE VII

                    CONDITIONS TO OBLIGATIONS OF THE PARTIES

          Section 7.1 CONDITIONS PRECEDENT TO OBLIGATIONS OF ALL PARTIES. The
respective obligations of Buyer, on the one hand, and Sellers on the other hand,
to close under this Agreement, shall be subject to the satisfaction at or prior
to the Closing Date of the following conditions:

          (a) NO INJUNCTION. No preliminary or permanent injunction or other
order issued by, and no Proceeding or Order by or before, any Governmental
Entity in the United States or by any United States Governmental Entity, nor any
Law or Order promulgated or enacted by any United States Governmental Entity,
shall be in effect or pending which materially delays, restrains, enjoins or
otherwise prohibits or seeks to restrain, enjoin or otherwise prohibit the
transactions contemplated hereby.

          (b) THE APPROVAL ORDER. The Bankruptcy Court shall have entered the
Approval Order. The "APPROVAL ORDER" shall be an order or orders of the
Bankruptcy Court, in form and substance reasonably acceptable to Sellers and
Buyer, approving this Agreement and all of the terms and conditions hereof, and
approving and authorizing Sellers to consummate the transactions contemplated
hereby. Without limiting the generality of the foregoing, such order shall find
and provide, among other things, that (a) the Assets, subject to the Bankruptcy
Court's jurisdiction, shall be sold to Buyer pursuant to this Agreement and
shall be transferred to Buyer

                                      -31-
<Page>

free and clear of all Liens and Liabilities of any Person, such Liens and
Liabilities to attach to the Purchase Price payable pursuant to Section 3.2; (b)
Buyer has acted in good faith within the meaning of Section 363(m) of the
Bankruptcy Code and, as such, is entitled to the protections afforded thereby;
(c) this Agreement was negotiated, proposed and entered into by the parties
without collusion, in good faith and from arm's length bargaining positions; (d)
Buyer is not acquiring or assuming any Sellers' or any other Person's
Liabilities except as expressly provided in this Agreement; (e) all Assumed
Contracts, Equipment Leases and Real Property Leases shall be assumed by Sellers
and assigned to Buyer pursuant to Section 365 of the Bankruptcy Code and, as
required by this Agreement, Sellers shall be obligated to pay all Cure Amounts
in respect thereof, and Buyer shall have no obligation to pay, or any Liability
for, such Cure Amounts and, thereafter Sellers shall have no further Liability
under such Assumed Contracts, Equipment Leases and Real Property Leases pursuant
to Section 365(k) of the Bankruptcy Code; (f) the Bankruptcy Court shall retain
jurisdiction to resolve any controversy or claim arising out of or relating to
this Agreement, or the breach hereof as provided in Section 10.10 hereof; and
(g) this Agreement and the transactions and instruments contemplated hereby
shall be specifically performable and enforceable against and binding upon, and
not subject to rejection or avoidance by, Sellers or any chapter 7 or chapter 11
trustee of Sellers and their estates.

          (c) CONSENTS AND APPROVALS. All consents, waivers, authorizations and
approvals of third Persons as are necessary in connection with the transactions
contemplated by this Agreement shall have been obtained, except for such
consents, waivers, authorizations and approvals which would not materially and
adversely affect the Business (it being agreed and acknowledged by Buyer and
Sellers that the consents required to assign the Assumed Mortgage to Buyer
pursuant to that certain Mortgage and Security Agreement, dated as of December
30, 1996, by and between JBAK Canton, as mortgagor, and The Chase Manhattan
Bank, as mortgagee, shall not be a condition to the Closing) and such consents
and approvals which are not required due to the entry by the Bankruptcy Court of
the Approval Order. All waiting periods under the HSR Act shall have expired or
been terminated.

          Section 7.2 CONDITIONS PRECEDENT TO THE OBLIGATIONS OF BUYER. The
obligation of Buyer to close under this Agreement is subject to the satisfaction
(or waiver by Buyer) at or prior to the Closing Date of each of the following
additional conditions:

          (a) ACCURACY OF REPRESENTATIONS AND WARRANTIES. The representations
and warranties of each Seller contained herein shall be true and correct in all
respects on the date hereof and on and as of the Closing Date, with the same
force and effect as though such representations and warranties had been made on
and as of the Closing Date (except to the extent that any such representation or
warranty is made as of a specified date, in which case such representation or
warranty shall have been true and correct in all respects as of such date),
except to the extent that any failures of such representations and warranties to
be true and correct, individually or when aggregated with any other such
failures, does not have a Material Adverse Effect.

          (b) PERFORMANCE OF AGREEMENTS. Sellers shall have performed in all
material respects all obligations and agreements contained in this Agreement
required to be performed by it prior to or at the Closing Date, except where the
failure to perform such obligations or agreements would not, individually or in
the aggregate, have a Material Adverse Effect.

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          (c) CLOSING DELIVERIES. Sellers shall have performed in all respects
all obligations and agreements in Section 3.1(b).

          (d) NOTICE OF SALE MOTION AND HEARING. Sellers shall have given and
published notice of the Sale Motion and Sale Hearing as required by the
Scheduling Order.

          (e) NO MATERIAL ADVERSE EFFECT. No Material Adverse Effect shall have
occurred, since the date hereof.

          (f) FIRPTA CERTIFICATES. Each Seller shall furnish to Buyer, on or
before the Closing Date, a copy of a statement, dated no more than thirty (30)
days prior to the Closing Date, issued by such Seller pursuant to Treasury
Regulation Section 1.1445-2(b), certifying as to such Seller's non-foreign
status.

          (g) ASSIGNMENT AND ASSUMPTION AGREEMENT. Sellers and Buyer shall have
entered into an assignment and assumption agreement, the form of which is
attached hereto as Exhibit A, relating to (i) the assumption by Buyer of the
Assumed Liabilities and (ii) the assignment of all membership interests in
Securex.

          Section 7.3 CONDITIONS PRECEDENT TO THE OBLIGATIONS OF SELLERS. The
obligation of Sellers to close under this Agreement is subject to the
satisfaction (or waiver by Sellers) at or prior to the Closing Date of each of
the following additional conditions:

          (a) ACCURACY OF REPRESENTATIONS AND WARRANTIES. The representations
and warranties of Buyer contained herein shall be true and correct in all
respects on the date hereof and on and as of the Closing Date, with the same
force and effect as though such representations and warranties had been made on
and as of the Closing Date (except to the extent that any such representation or
warranty is made as of a specified date, in which case such representation or
warranty shall have been true and correct in all respects as of such date),
except to the extent that any failures of such representations and warranties to
be true and correct, individually or when aggregated with any other such
failures, does not, on the part of Buyer, materially and adversely affect
Buyer's ability to consummate the transactions contemplated hereby.

          (b) PERFORMANCE OF AGREEMENTS. Buyer shall have performed in all
material respects all obligations and agreements contained in this Agreement
required to be performed by it prior to or at the Closing Date.

          (c) CLOSING DELIVERIES. Buyer shall have performed in all respects all
obligations and agreements in Section 3.1(c).

          (d) DEPOSIT. Sellers shall have received the Cash Deposit and the
Guaranty (as both terms are defined in Section 3.5).

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                                  ARTICLE VIII

                                   TERMINATION

          Section 8.1 TERMINATION OF AGREEMENT. This Agreement may be terminated
and the transactions contemplated hereby abandoned at any time prior to the
Closing:

          (a) By mutual written consent of Buyer and Sellers;

          (b) By Sellers or Buyer if the Closing shall not have occurred on or
before May 30, 2002 (the "OUTSIDE DATE"); PROVIDED, HOWEVER, that the right to
terminate this Agreement under this Section 8.1(b) shall not be available to any
party whose failure to fulfill any material obligation under this Agreement has
been the cause of, or resulted in, or contributed to, the failure of the Closing
to occur before such date;

          (c) [Reserved];

          (d) By Sellers, if Buyer shall have breached in any material respect
any of its representations and warranties or failed to perform in any material
respect any of its covenants or other agreements contained in this Agreement,
which breach or failure to perform (1) is incapable of being cured by Buyer
prior to the Outside Date and (2) renders any condition under Sections 7.1 and
7.3 hereof incapable of being satisfied prior to the Outside Date;

          (e) By Buyer, (i) if any Seller or Sellers collectively shall have
breached in any material respect any of their respective representations and
warranties contained in this Agreement or (ii) if any Seller or Sellers
collectively failed to perform in any material respect any of their covenants or
other agreements contained in this Agreement, which breach or failure to perform
(1) is incapable of being cured by Sellers prior to the Outside Date and (2)
renders any condition under Sections 7.1 and 7.2 hereof incapable of being
satisfied prior to the Outside Date;

          (f) By Sellers or Buyer, upon written notice to the other party, if
the Bankruptcy Court or any other Governmental Authority of competent
jurisdiction shall have issued an Order or taken any other action (which Order
or other action the party seeking to terminate shall have used all of its
reasonable efforts to resist, resolve or lift, as applicable, subject to the
provisions of Section 6.4 hereof) enjoining or otherwise prohibiting the
consummation of the transactions contemplated by this Agreement, and such Order
shall have become final and non-appealable; PROVIDED, HOWEVER, that the party
seeking to terminate this Agreement pursuant to this Section 8.1(f) has
fulfilled its obligations under Section 6.4 hereof;

          (g) [Reserved]; or

          (h) By Sellers or Buyer, if any event occurs which renders
satisfaction of one or more conditions set forth in Article VII impossible;
PROVIDED, HOWEVER, that Sellers or Buyer, as the case may be, shall not be
entitled to terminate this Agreement pursuant to this Section 8.1(h) if the
impossibility results primarily from such party itself breaching any
representation, warranty or covenant contained in this Agreement.

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          Section 8.2 NO LIABILITIES IN EVENT OF TERMINATION. In the event of
any termination of the Agreement pursuant to Section 8.1, (i) written notice
thereof shall forthwith be given to the other party specifying the provision
hereof pursuant to which such termination is made, (ii) this Agreement shall
forthwith become wholly void and of no further force and effect, (iii) if
applicable, the Cash Deposit shall be returned to Buyer pursuant to Section 8.3
hereof, and (iv) there shall be no liability on the part of Buyer or Sellers,
except that the obligations of Sellers and Buyer under Section 10.1 shall remain
in full force and effect and except that if this Agreement shall be terminated
pursuant to Sections 8.1(d) or (e) hereof, the breaching party shall remain
liable to the non-breaching party for costs, expenses and damages incurred by
its breach.

          Section 8.3 TREATMENT OF CASH DEPOSIT UPON TERMINATION.

          (a) If Buyer terminates this Agreement in breach of Section 8.1 hereof
or if Sellers terminate this Agreement pursuant to Section 8.1(b) (provided the
failure to have a Closing on the date specified is due to a breach by Buyer),
Section 8.1(d), Section 8.1(f) (provided Buyer has not fulfilled its obligations
under Section 6.4) or Section 8.1(h) (provided the impossibility has resulted
from the breach of a representation, warranty or covenant by Buyer) or if Buyer
otherwise refuses or is incapable of closing the transactions contemplated by
this Agreement, then Sellers shall be entitled to retain the Cash Deposit and
shall have no further obligations to Buyer.

          (b) Provided that Buyer is not in breach of this Agreement, if Sellers
terminate this Agreement in breach of Section 8.1 hereof or if Buyer terminates
this Agreement pursuant to Section 8.1(a) (unless otherwise mutually agreed by
the parties), Section 8.1(b) (provided the failure to have a Closing on the date
specified is not due to a breach by Buyer), Section 8.1(e), Section 8.1(f)
(provided Buyer has fulfilled its obligations under Section 6.4) or Section
8.1(h) (provided the impossibility has not resulted from the breach of a
representation, warranty or covenant by Buyer), then Sellers shall return the
Cash Deposit to Buyer by wire transfer in immediately available funds within two
(2) Business Days as required by Section 3.5 hereof.

          Section 8.4 [RESERVED.]

          Section 8.5 ABANDONMENT. If this Agreement is terminated and the
transactions contemplated hereby are abandoned as described in Section 8.1, this
Agreement shall become void and of no further force or effect, except for the
provisions of Section 6.3 relating to publicity. Nothing in this Section 8.5
shall be deemed to release any party from any liability for any breach by such
party of the terms and provisions of this Agreement or to impair the right of
any party to compel specific performance by any other party of its obligations
under this Agreement.

                                   ARTICLE IX

                                 INDEMNIFICATION

          Section 9.1 NO SURVIVAL OF REPRESENTATIONS AND WARRANTIES. The parties
hereto agree that the representations and warranties contained in this Agreement
shall not survive the

                                      -35-
<Page>

Closing hereunder, and neither party shall have any liability to the other after
the Closing for any breach thereof. The representations and warranties set forth
in this Agreement constitute the only representations and warranties made by
Sellers and Buyer with respect to the transactions contemplated hereby, and the
property transferred pursuant hereto, and such representations and warranties
supersede all representations and warranties, written or oral, previously made
by Sellers or Buyer. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, BUYER
AGREES THAT THE REPRESENTATIONS AND WARRANTIES CONTAINED HEREIN ARE IN LIEU OF
ALL OTHER WARRANTIES WHETHER EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION,
THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE,
SUCH OTHER WARRANTIES BEING SPECIFICALLY DISCLAIMED BY SELLERS. Buyer further
agrees that, to the extent the Closing occurs the Assets being sold hereunder
will be sold AS IS, WHERE IS and WITH ALL FAULTS and without any warranty or
representation whatsoever, except as specifically stated herein. The parties
hereto agree that the covenants contained in this Agreement to be performed at
or after the Closing shall survive the Closing hereunder (including the covenant
contained in Section 6.22 hereof whether or not such covenant is performed
before or after the Closing), and each party hereto shall be liable to the other
after the Closing for any breach thereof.

          Section 9.2 INDEMNIFICATION.

          (a) Each Seller shall, jointly and severally, indemnify and hold Buyer
and its Affiliates harmless against and in respect of loss, damage, claim,
Liability, judgment or settlement of any nature or kind, including all costs and
expenses relating thereto, including interest, penalties and reasonable
attorneys' fees (collectively, the "DAMAGES"), arising out of, resulting from or
relating to all Excluded Liabilities.

          (b) Buyer shall indemnify and shall hold Sellers and their Affiliates
harmless against and in respect of any Damages, arising out of, resulting from
or relating to:

          (i) all Liabilities of Buyer under this Agreement, including without
     limitation, all Assumed Liabilities and Liabilities under Section 6.16;

          (ii) the termination of employment of a Continued Employee; and

          (iii) any Liability to Sellers as a result of a breach by Buyer under
     Section 6.6 hereof.

          (c) In the event that any Person shall incur or suffer any Damages in
respect of which indemnification may be sought hereunder, such Person (the
"INDEMNIFIED PARTY") may assert a claim for indemnification by providing written
notice to the party from whom indemnification is being sought (the "INDEMNIFYING
PARTY"), stating the amount of Damages, if known, and the nature and basis of
such claim (the "NOTICE"). In the case of Damages that arise or may arise by
reason of any third-party claim, promptly after receipt by an Indemnified Party
of written notice of the assertion of any claim or the commencement of any
action with respect to any matter in respect of which indemnification may be
sought hereunder, the Indemnified Party shall give Notice to the Indemnifying
Party and shall thereafter keep the Indemnifying Party

                                      -36-
<Page>

reasonably informed with respect thereto, provided that failure of the
Indemnified Party to give the Indemnifying Party prompt notice as provided
herein shall not relieve the Indemnifying Party of any of its obligations
hereunder, except to the extent that the Indemnifying Party is materially
prejudiced by such failure. In case any such claim is made or action is brought
against any Indemnified Party, the Indemnifying Party shall be entitled to
assume the defense thereof, by written notice of its intention to do so to the
Indemnified Party within thirty (30) days after receipt of the Notice. If the
Indemnifying Party shall assume the defense of such claim or action, it shall
have the right to settle such claim or action; PROVIDED, HOWEVER, that it shall
not settle such claim or action without the prior written consent of the
Indemnified Party (which consent shall not be unreasonably withheld or delayed)
if such settlement (i) does not include as an unconditional term thereof the
giving by the claimant or the plaintiff of a release of the Indemnified Party
from all Liability with respect to such claim or action or (ii) involves the
imposition of equitable remedies or the imposition of any material obligations
on such Indemnified Party other than financial obligations for which such
Indemnified Party will be indemnified hereunder. As long as the Indemnifying
Party is contesting any such claim or action in good faith, the Indemnified
Party shall not pay or settle such claim or action. Following delivery of notice
of its intention to assume the defense of any claim or action hereunder, the
Indemnifying Party shall not be liable hereunder for any legal or other expenses
subsequently incurred by the Indemnified Party in connection with the defense
thereof; PROVIDED, FURTHER, HOWEVER, that if the defendants in any action shall
include both an Indemnifying Party and any Indemnified Party and such
Indemnified Party shall have reasonably concluded that counsel selected by the
Indemnifying Party has a conflict of interest because of the availability of
different or additional defenses to such Indemnified Party, such Indemnified
Party shall have the right to separate counsel to participate in the defense of
such action on its behalf, at the expense of the Indemnifying Party; PROVIDED,
FURTHER, HOWEVER, that the Indemnifying Party shall not be obligated to pay the
expenses of more than one separate counsel for all Indemnified Parties, taken
together.

          (d) If the Indemnifying Party shall fail to notify the Indemnified
Party of its desire to assume the defense of any claim or action within the
prescribed period of time, or shall notify the Indemnified Party that it will
not assume the defense hereof, then the Indemnified Party may assume the defense
of such claim or action, in which event it may do so acting in good faith, and
the Indemnifying Party shall be bound by any determination made in any such
action, PROVIDED, HOWEVER, that the Indemnified Party shall not be permitted to
settle any such action without the consent of the Indemnifying Party, which
consent shall not be unreasonably withheld or delayed. No such determination or
settlement shall affect the right of the Indemnifying Party to dispute the
Indemnified Party's claim for indemnification hereunder. The Indemnifying Party
shall be permitted to participate in the defense of such claim or action and to
employ counsel at its own expense. If the Indemnifying Party chooses to assume
the defense of any claim or action pursuant hereto, the Indemnified Party shall
cooperate in such defense, which cooperation shall include the retention and the
provision to the Indemnifying Party of records and information which are
reasonably relevant to such defense, and making employees available on a
mutually convenient basis to provide additional information and explanation of
any materials provided hereunder, including providing such employees to serve as
witnesses.

          (e) The right to indemnification pursuant to this Article IX shall not
be affected by any investigation conducted with respect to, or any knowledge
acquired (or capable

                                      -37-
<Page>

of being acquired) at any time, whether before or after the execution and
delivery of this Agreement or the date the Closing occurs, with respect to the
accuracy or inaccuracy of or compliance with, any covenant or obligation. The
waiver of any condition to the obligation of a party to consummate the
transactions contemplated by this Agreement, where such condition is based on
the performance of or compliance with any covenant or obligation, shall not
affect the right of an Indemnified Party to indemnification, payment of an
Indemnified Party's Damages, or other remedy based on such covenant or
obligation.

          (f) Any indemnification payments made pursuant to this Agreement shall
be treated for Tax purposes as an adjustment to the Purchase Price, unless
otherwise required by applicable Law.

                                   ARTICLE X

                                  MISCELLANEOUS

          Section 10.1 EXPENSES.

          (a) Except as otherwise expressly provided in this Agreement including
this Section 10.1, whether or not the transactions contemplated hereby are
consummated, each party shall bear all costs and expenses incurred or to be
incurred by such party in connection with this Agreement and the consummation of
the transactions contemplated hereby.

          (b) [Reserved.]

          (c) Sellers and Buyer shall share equally in the cost of the filing
fee required under the HSR Act.

          Section 10.2 ASSIGNMENT. This Agreement and the rights and obligations
of the parties hereunder shall not be assigned, delegated or otherwise
transferred, by Buyer or by any Seller; PROVIDED, HOWEVER, that Buyer may assign
its rights and obligations hereunder to one or more entities formed by Buyer or
an Affiliate of Buyer solely for the purpose of engaging in the transactions
contemplated hereby and that has not engaged in any other business activity;
PROVIDED FURTHER, HOWEVER, that no such assignment shall relieve Buyer of its
liabilities and obligations hereunder if such assignee does not perform such
obligations, including satisfying the requirements of adequate assurance of
future performance; and PROVIDED FURTHER, HOWEVER, that this Agreement may be
assigned to one or more trustees appointed by the Bankruptcy Court to succeed to
the rights of any Seller. Sellers agree to enter into such amendments to, or
restatements of, this Agreement and the exhibits hereto as may be reasonably
required to give effect to this Section 10.2, so long as such amendments or
restatements do not adversely affect the rights of Sellers hereunder or
thereunder in Sellers' reasonable judgment. Subject to the foregoing, this
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns, and except as otherwise expressly
provided herein, no other Person shall have any right, benefit or obligation
hereunder.

          Section 10.3 PARTIES IN INTEREST. This Agreement shall be binding upon
and inure solely to the benefit of Sellers and Buyer, or their respective
successors or permitted

                                      -38-
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assigns and, except as provided in Section 10.13, nothing in this Agreement,
express or implied, is intended to or shall confer upon any other person any
rights, benefits or remedies of any nature whatsoever under or by reason of this
Agreement. Without limiting the foregoing, no direct or indirect holder of any
equity interests or securities of any Seller or Buyer (whether such holder is a
limited or general partner, member, stockholder or otherwise), nor any Affiliate
of any Seller or Buyer, nor any director, officer, employee, representative,
agent or other controlling person of each of the parties hereto and their
respective Affiliates shall have any liability or obligation arising under this
Agreement or the transactions contemplated thereby.

          Section 10.4 NOTICES. Unless otherwise provided herein, any notice,
request, instruction or other document to be given hereunder by any party to any
other party shall be in writing and shall be delivered in person, by nationally
recognized overnight courier or facsimile transmission (with such facsimile
transmission confirmed by sending a copy of such notice, request, instruction or
other document by nationally recognized overnight courier or certified mail,
return receipt requested) or mailed by certified mail, postage prepaid, return
receipt requested (such mailed notice to be effective on the date such receipt
is acknowledged), as follows:

          If to Sellers:               Casual Male Corp.
                                       555 Turnpike Street
                                       Canton, Massachusetts 02021
                                       Attention:  Chief Executive Officer
                                       Copy to:  General Counsel
                                       Fax: (781) 821-5174

          With a copy to:              Cadwalader, Wickersham & Taft
                                       100 Maiden Lane
                                       New York, New York 10038
                                       Attention:  Adam C. Rogoff, Esq.
                                       Fax: (212) 504-6666

          If to Buyer:                 Designs, Inc.
                                       66 B Street
                                       Needham, Massachusetts 02494
                                       Attention:  Chief Financial Officer
                                       Fax: (781) 433-7462

          With a copy to:              Kramer Levin Naftalis & Frankel LLP
                                       919 Third Avenue
                                       New York, New York 10022
                                       Attention:  Peter G. Smith, Esq.
                                       Fax: (212) 715-8000

or to such other place and with such other copies as either party may designate
as to itself by written notice to the other party. Rejection, any refusal to
accept or the inability to deliver because of changed address of which no notice
was given shall be deemed to be receipt of the notice as of the date of such
rejection, refusal or inability to deliver.

                                      -39-
<Page>

          SECTION 10.5 CHOICE OF LAW. THIS AGREEMENT SHALL BE CONSTRUED AND
INTERPRETED, AND THE RIGHTS OF THE PARTIES SHALL BE DETERMINED, IN ACCORDANCE
WITH THE BANKRUPTCY CODE AND THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK,
EXCEPT THAT ANY PROVISIONS CONTAINED HEREIN RELATING TO THE CONVEYANCE OF
INTERESTS IN REAL PROPERTY SHALL BE GOVERNED BY THE SUBSTANTIVE LAWS OF THE
STATE IN WHICH THE REAL PROPERTY IS LOCATED, IN EACH CASE WITHOUT REGARD TO THE
CONFLICT OF LAW PRINCIPLES THEREOF OR OF ANY OTHER JURISDICTION.

          Section 10.6 ENTIRE AGREEMENT; AMENDMENTS AND WAIVERS. This Agreement
(including all Schedules hereto) constitutes the entire agreement between the
parties pertaining to the subject matter hereof and supersedes all prior
agreements, understandings, negotiations, and discussions, whether oral or
written, of the parties. Except as set forth herein or in any certificate
delivered pursuant hereto, no party (or any employee or agent thereof) makes any
representation or warranty, express or implied, to any other party with respect
to this Agreement or the transactions contemplated hereby. No supplement,
modification or amendment of this Agreement (including any Schedule hereto)
shall be binding unless the same is executed in writing by all parties. No
waiver of any of the provisions of this Agreement shall be binding unless
executed in writing by the party against whom the waiver is to be effective and
shall not be deemed or shall constitute a waiver of any other provision hereof
(whether or not similar), and no such waiver shall constitute a continuing
waiver unless otherwise expressly provided. Unless this Agreement shall have
been terminated pursuant to Section 8.1, except with regard to Sections 6.2,
6.6, 6.7, 6.9, 6.15, 6.18, 6.19, 6.20, 6.22 and 6.23, the sole remedy of the
parties against each other in connection with this Agreement and the
transactions contemplated hereby shall be the indemnifying rights set forth in
Article IX.

          Section 10.7 COUNTERPARTS. This Agreement may be executed in two or
more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. Delivery of an executed
counterpart of a signature page to this Agreement by telecopy shall be as
effective as delivery of a manually executed counterpart of this Agreement. In
proving this Agreement, it shall not be necessary to produce or account for more
than one such counterpart signed by the party against whom enforcement is
sought.

          Section 10.8 SEVERABILITY. The provisions of this Agreement shall be
deemed severable and the invalidity or unenforceability of any provision shall
not affect the validity or enforceability of the other provisions hereof. If any
provision of this Agreement, or the application thereof to any person or entity
or any circumstance, is declared invalid or unenforceable by any court of
competent jurisdiction, (a) a suitable and equitable provision shall be
substituted therefor by such court in order to carry out, so far as may be valid
and enforceable, the intent and purpose of such invalid or unenforceable
provision and (b) the remainder of this Agreement and the application of such
provision to other persons, entities or circumstances shall not be affected by
such invalidity or unenforceability.

          Section 10.9 HEADINGS. The table of contents and the headings of the
Articles and Sections herein are inserted for convenience of reference only and
are not intended to be a part of, or to affect the meaning or interpretation of,
this Agreement.

                                      -40-
<Page>

          SECTION 10.10 EXCLUSIVE JURISDICTION. WITHOUT LIMITING ANY PARTY'S
RIGHT TO APPEAL ANY ORDER OF THE BANKRUPTCY COURT, (A) THE BANKRUPTCY COURT
SHALL RETAIN EXCLUSIVE JURISDICTION TO ENFORCE THE TERMS OF THIS AGREEMENT AND
TO DECIDE ANY CLAIMS OR DISPUTES WHICH MAY ARISE OR RESULT FROM, OR BE CONNECTED
WITH, THIS AGREEMENT, ANY BREACH OR DEFAULT HEREUNDER, OR THE TRANSACTIONS
CONTEMPLATED HEREBY, AND (B) ANY AND ALL CLAIMS, ACTIONS, CAUSES OF ACTION,
SUITS AND PROCEEDINGS RELATED TO THE FOREGOING SHALL BE FILED AND MAINTAINED
ONLY IN THE BANKRUPTCY COURT, AND THE PARTIES HEREBY CONSENT TO AND SUBMIT TO
THE JURISDICTION AND VENUE OF THE BANKRUPTCY COURT AND SHALL RECEIVE NOTICES AT
SUCH LOCATIONS AS INDICATED IN SECTION 10.4 HEREOF.

          SECTION 10.11 WAIVER OF RIGHT TO TRIAL BY JURY. EACH PARTY TO THIS
AGREEMENT WAIVES ANY RIGHT TO TRIAL BY JURY IN ANY ACTION, MATTER OR PROCEEDING
REGARDING THIS AGREEMENT OR ANY PROVISION HEREOF.

          Section 10.12 SPECIFIC PERFORMANCE. Each of the parties hereto
acknowledges that the other party hereto would be irreparably damaged in the
event Sections 6.2, 6.6, 6.7, 6.9, 6.15, 6.18, 6.19, 6.20, 6.22 and 6.23 of this
Agreement are not performed in accordance with their specific terms or are
otherwise breached. Accordingly, each of the parties hereto shall be entitled,
after the Closing, to an injunction or injunctions to prevent breaches of such
provisions and to enforce specifically this Agreement and the terms and
provisions thereof in any action instituted in the Bankruptcy Court, in addition
to any other remedy to which the parties may be entitled, at law, in equity or
pursuant to this Agreement.

          Section 10.13 THIRD-PARTY BENEFICIARIES. Sellers and Buyer hereby
agree that for the purposes of Section 6.22 hereof, the Continued Employees
referred to in Section 6.22 shall be third-party beneficiaries of this
Agreement. Notwithstanding the foregoing, nothing in this Agreement, expressed
or implied, is intended to confer upon any other Person any rights or remedies
of any nature under or by reason of this Agreement.

          Section 10.14 SCHEDULES. Each of the parties hereto shall (a) give
prompt notice to the other party of the occurrence or non-occurrence of any
event the occurrence or non-occurrence of which would cause any representation
or warranty by such party contained in this Agreement to be untrue or inaccurate
in any material respect, at or prior to the Closing Date and shall promptly
deliver to the other party an amended or supplemental Schedule to such
representation or warranty, and (b) give prompt notice to the other party of any
failure of such party to comply with or satisfy any covenant, condition or
agreement to be materially complied with, or satisfied in any material respect,
by it hereunder; PROVIDED, HOWEVER, that the delivery of any notice pursuant to
this Section 10.14 shall not limit or otherwise affect the remedies available
hereunder to the party receiving such notice. No notification under this Section
10.14 shall be deemed to cure any breach or default or event of default or
render any representation or warranty incomplete or inaccurate.

                                      -41-
<Page>

          Section 10.15 COUNTING. If the due date for any action to be taken
under this Agreement (including, without limitation, the delivery of notices) is
not a Business Day, then such action shall be considered timely taken if
performed on or prior to the next Business Day following such due date.

          Section 10.16 SERVICE OF PROCESS. Each party irrevocably consents to
the service of process in any action or proceeding by receipt of mailed copies
thereof by national courier service or registered United States mail, postage
prepaid, return receipt requested, to its address as specified in or pursuant to
Section 10.4 hereof. However, the foregoing shall not limit the right of a party
to effect service of process on the other party by any other legally available
method.

          Section 10.17 TIME OF ESSENCE. With regard to all dates and time
periods set forth or referred to in this Agreement, time is of the essence.

          Section 10.18 EXHIBITS AND SCHEDULES. The Exhibits and Schedules
attached to, delivered with and identified to this Agreement are a part of this
Agreement the same as if fully set forth herein and all references herein to any
Section of this Agreement shall be deemed to include a reference to any Schedule
named therein.

          Section 10.19 INTERPRETATION.

          (a) Whenever the words "include," "includes" or "including" are used
in this Agreement they shall be deemed to be followed by the words "without
limitation."

          (b) Words denoting any gender shall include all genders. Where a word
or phrase is defined herein, each of its other grammatical forms shall have a
corresponding meaning.

          (c) A reference to any party to this Agreement or any other agreement
or document shall include such party's successors and permitted assigns.

          (d) A reference to any legislation or to any provision of any
legislation shall include any modification or re-enactment thereof, any
legislative provision substituted therefor and all regulations and statutory
instruments issued thereunder or pursuant thereto.

          (e) All references to "$" and dollars shall be deemed to refer to
United States currency unless otherwise specifically provided.

          (f) All references to any financial or accounting terms shall be
defined in accordance with GAAP.

          Section 10.20 PREPARATION OF THIS AGREEMENT. Buyer and Sellers hereby
acknowledge that (i) Buyer and Sellers jointly and equally participated in the
drafting of this Agreement and all other agreements contemplated hereby, (ii)
both Buyer and Sellers have been adequately represented and advised by legal
counsel with respect to this Agreement and the transactions contemplated hereby,
and (iii) no presumption shall be made that any provision of

                                      -42-
<Page>

this Agreement shall be construed against either party by reason of such role in
the drafting of this Agreement and any other agreement contemplated hereby.

          Section 10.21 POWER OF ATTORNEY. After the Closing, each Seller (each,
a "Grantor") shall constitute and appoint Buyer, and its successors and assigns,
Grantor's true and lawful attorney and attorneys, with full power of
substitution, in Grantor's name and stead, but on behalf, for the benefit and at
the expense of Buyer, its successors and assigns, to demand and receive any and
all of the Assets, and to execute and deliver receipts, releases and such other
instruments or documents as Buyer may reasonably deem necessary or appropriate
in connection with the demand and receipt of the same, and any part thereof, and
from time to time to institute and prosecute in Grantor's name, or otherwise,
for the benefit of Buyer, its successors and assigns, any and all proceedings at
law, in equity or otherwise, which Buyer, its successors or assigns, may deem
proper for the collection or reduction to possession of any of the Assets or for
the collection and enforcement of any claim or right of any kind hereby sold,
conveyed, transferred and assigned, or intended so to be, and to do all acts and
things in relating to the Assets which Buyer, its successors or assigns shall
deem desirable, Grantor hereby declaring that the foregoing powers are coupled
with an interest and are and shall be irrevocable by Grantor or by its
dissolution or in any manner or for any reason whatsoever. Notwithstanding the
foregoing, no such action by Buyer, its successors and assigns shall impose any
Liability or obligation upon, or otherwise require any payment from, any Seller
as Grantor. Buyer shall have no rights under this Section 10.21 with respect to
Excluded Assets or Excluded Liabilities.

          Section 10.22 WGS ASSETS. Notwithstanding anything in this Agreement
to the contrary, WGS Corp. is only a party to this Agreement for the purpose of
selling the assets set forth in Section 2.1(r) (the "WGS ASSETS") and all
representations, warranties, covenants and agreements of WGS contained in this
Agreement are expressly limited to the WGS Assets.

                            [SIGNATURE PAGE FOLLOWS]

                                      -43-
<Page>

          IN WITNESS WHEREOF, this Agreement has been duly executed and
delivered by the duly authorized officers of each of Sellers and Buyer as of the
date first above written.

                                   BUCKMIN INC.
                                   CASUAL MALE CORP.
                                   ELM EQUIPMENT CORP.
                                   ISAB INC.
                                   JBAK CANTON REALTY, INC.
                                   JBI APPAREL INC.
                                   JBI HOLDING COMPANY INC.
                                   JBI INC.
                                   LP INNOVATIONS INC.
                                   MORSE SHOE INC.
                                   MORSE SHOE INTERNATIONAL INC.
                                   SPENCER COMPANIES INC.
                                   TCM HOLDING COMPANY INC.
                                   TCMB&T INC.
                                   THE CASUAL MALE INC.
                                   WHITE CAP FOOTWEAR, INC.
                                   WGS CORP.

                                   By:       /s/ Michael A. O'Hara
                                      ------------------------------------------
                                      Name:  Michael A. O'Hara
                                      Title: First Senior Vice President
                                             Corporate Affairs, General
                                             Counsel & Secretary

                                   By:       /s/ Jay Scheiner
                                      ------------------------------------------
                                      Name:  Jay Scheiner
                                      Title: Executive Vice President

                                   DESIGNS, INC.

                                   By:       /s/ Dennis R. Hernreich
                                      ------------------------------------------
                                      Name:  Dennis R. Hernreich
                                      Title: Senior Vice President and
                                             Chief Financial Officer<Page>

                                                                    EXHIBIT 10.2

                       AMENDED AND RESTATED NOTE AGREEMENT

                  NOTE AGREEMENT, dated as of April 26, 2002, and amended and
restated as of May 14, 2002, among Designs, Inc., a Delaware corporation (the
"COMPANY"), certain subsidiaries of the Company (each a "GUARANTOR") and the
Purchasers identified on the signature pages hereto.

                  The Company has duly authorized the creation of an issue of
12% Senior Subordinated Notes due 2007 (the "SECURITIES").

                  Each party hereto agrees as follows for the benefit of the
other parties and for the equal and ratable benefit of the Holders of the
Securities.

                                   ARTICLE ONE

                                   DEFINITIONS

         SECTION 1.01. DEFINITIONS.

                  "ACQUIRED INDEBTEDNESS" means Indebtedness of a Person or any
of its Restricted Subsidiaries existing at the time such Person becomes a
Restricted Subsidiary of the Company or at the time it merges or consolidates
with the Company or any of its Subsidiaries or is assumed in connection with the
acquisition of assets from such Person and not incurred by such Person in
connection with, or in anticipation or contemplation of, such Person becoming a
Restricted Subsidiary of the Company or such acquisition, merger or
consolidation.

                  "ACQUISITION CLOSING DATE" means the date upon which the
consummation of the Casual Male Acquisition occurs.

                  "ADDITIONAL CAPITAL STOCK" means (1) the Preferred Stock
issued on or about the Acquisition Closing Date and (2) any other Qualified
Capital Stock (including Preferred Stock) having terms not materially less
favorable to the Company, taken as a whole, than the Preferred Stock as
determined by the Board of Directors of the Company in good faith.

                  An "AFFILIATE" of a Person means a Person who directly or
indirectly through one or more intermediaries controls, or is controlled by, or
is under common control with, such Person. The term "control" means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a Person, whether through the
ownership of voting securities, by contract or otherwise.

                  "AFFILIATE TRANSACTION" has the meaning set forth in Section
4.10.

                  "ASSET ACQUISITION" means

                  (a) an Investment by the Company or any Restricted  Subsidiary
         of the Company in any other Person  pursuant to which such Person shall
         become  a  Restricted  Subsidiary  of the  Company  or  any  Restricted
         Subsidiary of the Company,  or shall be merged with or into the Company
         or any Restricted Subsidiary of the Company, or

<Page>

                                       -2-

                  (b) the acquisition by the Company or any Restricted
         Subsidiary of the Company of the assets of any Person which  constitute
         all or substantially all of the assets of such Person,  any division or
         line of business of such  Person or any other  properties  or assets of
         such Person other than in the Ordinary Course of Business.

                  "ASSET PURCHASE AGREEMENT" has the meaning set forth in the
definition of "Transactions."

                  "ASSET SALE" means any direct or indirect sale, conveyance,
transfer, lease (other than operating leases entered into in the Ordinary Course
of Business), assignment or other transfer for value by the Company or any of
its Restricted Subsidiaries, including any Sale and Leaseback Transaction that
does not give rise to a Capitalized Lease Obligation, to any Person other than
the Company or a Restricted Subsidiary of the Company of

                  (a) any Capital Stock of any Restricted Subsidiary of the
         Company; or

                  (b) any other property or assets, other than cash or Cash
         Equivalents, of the Company or any Restricted Subsidiary of the Company
         other than in the Ordinary Course of Business;

PROVIDED, HOWEVER, that Asset Sales shall not include

                  (1) a transaction or series of related transactions for which
         the Company or its Restricted Subsidiaries receive aggregate
         consideration, exclusive of indemnities, of less than $2 million,

                  (2) the sale of accounts receivable pursuant to factoring or
         similar arrangements in the Ordinary Course of Business,

                  (3) the sale, lease, conveyance, disposition or other transfer
         of assets in the Ordinary Course of Business,

                  (4) the sale, lease, conveyance, disposition or other transfer
         of all or substantially all of the assets of the Company and its
         Restricted Subsidiaries or any Guarantor as permitted under Section
         5.01,

                  (5) sales, transfers or other dispositions of assets resulting
         from the creation, incurrence or assumption of (but not any foreclosure
         with respect to) any Lien not prohibited by Section 4.12,

                  (6) sales, transfers or other dispositions of assets in a
         transaction constituting a Permitted Investment or a Restricted Payment
         permitted by Section 4.02, and

                  (7) the grant of licenses to third parties in the Ordinary
         Course of Business of the Company or any of its Restricted
         Subsidiaries.

                  "ATTRIBUTABLE DEBT" in respect of a Sale and Leaseback
Transaction consummated subsequent to the Issue Date means, at the time of
determination, the present value, discounted at the rate of interest implicit in
such transaction, determined in accordance with GAAP, of the obligation of the
lessee for net rental payments during the remaining term of the lease included
in such sale and leaseback transaction, including any period for which such
lease has been extended or may, at the option of the lessor, be extended.

<Page>

                                       -3-

                  "BANKRUPTCY LAW" means Title 11, U.S. Code or any similar
Federal, state or foreign law for the relief of debtors.

                  "BID DATE" means the date fixed pursuant to the applicable
orders of the Bankruptcy Court for the submission of bids to acquire
substantially all the assets of Casual Male and certain related entities.

                  "BIDDING PROCEDURES ORDER" has the meaning set forth in
Section 4.18.

                  "BOARD OF DIRECTORS" means, as to any Person, the board of
directors of such Person or any duly authorized committee thereof.

                  "BOARD RESOLUTION" means, with respect to any Person, a copy
of a resolution certified by the Secretary or an Assistant Secretary of such
Person to have been duly adopted by the Board of Directors of such Person and to
be in full force and effect on the date of such certification.

                  "BUSINESS DAY" means any day other than a Saturday, Sunday or
any other day on which banking institutions in The City of New York are required
or authorized by law or other governmental action to be closed.

                  "CAPITAL STOCK" means (1) with respect to any Person that is a
corporation, any and all shares, interests, participations or other equivalents,
however designated, of corporate stock, including each class of common stock and
preferred stock of such Person and (2) with respect to any Person that is not a
corporation, any and all partnership or other equity interests of such Person.

                  "CAPITALIZED LEASE OBLIGATIONS" means, as to any Person, the
obligations of such Person under a lease that are required to be classified and
accounted for as capital lease obligations under GAAP and, for purposes of this
definition, the amount of such obligations at any date shall be the capitalized
amount of such obligations at such date, determined in accordance with GAAP.

                  "CASH EQUIVALENTS" means

                  (1) marketable direct obligations issued by, or
         unconditionally guaranteed by, the United States Government or issued
         by any agency thereof and backed by the full faith and credit of the
         United States, in each case maturing within one year from the date of
         acquisition thereof;

                  (2) marketable direct obligations issued by any state of the
         United States of America or any political subdivision of any such state
         or any public instrumentality thereof maturing within one year from the
         date of acquisition thereof and, at the time of acquisition, having one
         of the two highest ratings obtainable from either S&P or Moody's;

                  (3) commercial paper maturing no more than one year from the
         date of creation thereof and, at the time of acquisition, having a
         rating of at least A-1 from S&P or at least P-1 from Moody's;

                  (4) certificates of deposit or bankers' acceptances (or, with
         respect to foreign banks, similar instruments) maturing within one year
         from the date of acquisition thereof issued by any bank organized under
         the laws of the United States of America or any state thereof or the
         District of Columbia or any U.S. branch of a foreign bank having at the
         date of acquisition thereof combined capital and surplus of not less
         than $500 million;

<Page>

                                      -4-

                  (5) repurchase obligations with a term of not more than seven
         days for underlying securities of the types described in clause (1)
         above entered into with any bank meeting the qualifications specified
         in clause (4) above; and

                  (6) investments in money market funds which invest
         substantially all their assets in securities of the types described in
         clauses (1) through (5) above.

                  "CASUAL MALE" means Casual Male Corp. (f/k/a) J. Baker, Inc.,
 a Massachusetts corporation.

                  "CASUAL MALE ACQUISITION" has the meaning set forth in the
definition of "Transactions."

                  "CHANGE OF CONTROL" means the occurrence of one or more of the
following events:

                  (1) any sale, lease, exchange or other transfer, in one
         transaction or a series of related transactions, of all or
         substantially all of the assets of the Company to any Person or group
         of related Persons for purposes of Section 13(d) of the Exchange Act (a
         "GROUP") (whether or not otherwise in compliance with the provisions of
         this Note Agreement);

                  (2) the approval by the holders of Capital Stock of the
         Company of any plan or proposal for the liquidation or dissolution of
         the Company (whether or not otherwise in compliance with the provisions
         of this Note Agreement);

                  (3) any Person or Group, other than a Permitted Holder or
         Holders, shall become the owner, directly or indirectly, beneficially,
         of shares representing more than 25% of the aggregate voting power
         represented by the issued and outstanding Capital Stock of the Company
         entitled under ordinary circumstances to elect a majority of the
         directors of the Company;

                  (4) the replacement of a majority of the Board of Directors of
         the Company over a two-year period from the directors who constituted
         the Board of Directors at the beginning of such period, and such
         replacement shall not have been approved by a vote of at least a
         majority of the Board of Directors then still in office who either were
         members of the Board of Directors at the beginning of such period or
         whose election as a member of the Board of Directors was previously so
         approved; or

                  (5) the consolidation or merger of the Company with or into
         another Person or the merger of another Person with or into the
         Company, in any case pursuant to a transaction in which the outstanding
         Capital Stock of the Company is converted into or exchanged for cash,
         securities or other property other than any such transaction in which
         the Capital Stock of the Company outstanding immediately prior to such
         transaction is converted into or exchanged for Capital Stock (other
         than Disqualified Capital Stock) of the resulting or surviving
         corporation representing more than 25% of the voting power of the then
         outstanding Capital Stock of the resulting or surviving corporation.

                  "CHANGE OF CONTROL OFFER" has the meaning set forth in Section
4.13.

                  "CHANGE OF CONTROL PAYMENT DATE" has the meaning set forth in
Section 4.13.

                  "COMMISSION" or "SEC" means the Securities and Exchange
Commission, or any successor agency thereto with respect to the regulation or
registration of securities.

<Page>

                                      -5-

                  "COMPANY" means the party named as such in this Note Agreement
until a successor replaces it pursuant to this Note Agreement.

                  "COMPANY PREFERRED STOCK" means the Company's mandatorily
Convertible Preferred Stock or any other Qualified Capital Stock issued pursuant
to or in satisfaction of (1) the commitments dated on or about April 26, 2002
between certain investors and the Company, and (2) certain warrants issued in
connection with the issuance of Preferred Stock or otherwise in connection with
the Transactions, or other Qualified Capital Stock constituting Additional
Capital Stock as defined herein.

                  "COMPANY REQUEST" or "COMPANY ORDER" means a written request
or order signed in the name of the Company by its Chairman of the Board, its
President, a Vice President or its Treasurer, and by an Assistant Treasurer, its
Secretary or an Assistant Secretary.

                  "CONSOLIDATED EBITDA" means, with respect to any Person, for
any period, the sum (without duplication) of

                  (1) Consolidated Net Income,

                  (2) to the extent Consolidated Net Income has been reduced
         thereby, all losses from Asset Sales or abandonments or reserves
         relating thereto, and all items classified as extraordinary losses,

                  (3) Consolidated Interest Expense,

                  (4) Consolidated Tax Expense, and

                  (5) Consolidated Non-cash Charges.

                  "CONSOLIDATED INTEREST EXPENSE" means, with respect to any
Person for any period, the sum of, without duplication,

                  (1) the aggregate of all cash and non-cash interest expense
         with respect to all outstanding Indebtedness of such Person and its
         Restricted Subsidiaries, including the net costs associated with
         Interest Swap Obligations, capitalized interest, and imputed interest
         with respect to Attributable Debt, for such period determined on a
         consolidated basis in conformity with GAAP; and

                  (2) the interest component of Capitalized Lease Obligations
         paid, accrued and/or scheduled to be paid or accrued by such Person and
         its Restricted Subsidiaries during such period as determined on a
         consolidated basis in accordance with GAAP.

                  "CONSOLIDATED NET INCOME" means, with respect to any Person
for any period, the aggregate net income (or loss) of such Person and its
Restricted Subsidiaries for such period on a consolidated basis, determined in
accordance with GAAP; PROVIDED, HOWEVER, that there shall be excluded therefrom

                  (a) items classified as extraordinary gains or losses, and the
related tax effects according to GAAP,

                  (b) the net loss of any Person, other than a Restricted
Subsidiary of the Company,

<Page>

                                      -6-

                  (c) the net income of any Person, other than a Restricted
Subsidiary, in which such Person has an interest, except to the extent of cash
dividends or distributions paid to such Person or a Restricted Subsidiary of
such Person,

                  (d) amounts attributable to dividends paid in respect of
Qualified Capital Stock to the extent such dividends are paid in shares of
Qualified Capital Stock.

                  "CONSOLIDATED NET WORTH" of any Person means the consolidated
stockholders' equity of such Person, determined on a consolidated basis in
accordance with GAAP less (to the extent otherwise included in accordance with
GAAP) amounts attributable to Disqualified Capital Stock.

                  "CONSOLIDATED NON-CASH CHARGES" means, with respect to any
Person for any period, the aggregate depreciation, amortization and other
non-cash expenses of such Person and its Restricted Subsidiaries reducing
Consolidated Net Income of such Person and its Restricted Subsidiaries for such
period, determined on a consolidated basis in accordance with GAAP.

                  "CONSOLIDATED SENIOR DEBT RATIO" means, with respect to any
Person, the ratio of (x) consolidated Senior Debt of such Person at the date of
determination giving rise to the need to calculate the Consolidated Senior Debt
Ratio (the "DETERMINATION DATE") to (y) Consolidated EBITDA of such Person
during the four full fiscal quarters (the "FOUR QUARTER PERIOD") ending on or
prior to the Determination Date. In addition to and without limitation of the
foregoing, for purposes of this definition, "Consolidated EBITDA" and
"consolidated Senior Debt" shall be calculated after giving effect on a PRO
FORMA basis for the period of such calculation to

                  (1) the incurrence or repayment or retirement of any
         Indebtedness of such Person or any of its Restricted Subsidiaries (and
         the application of the proceeds thereof) at any time subsequent to the
         last day of the Four Quarter Period and on or prior to the
         Determination Date (other than the incurrence or repayment of
         Indebtedness in the Ordinary Course of Business for working capital
         purposes pursuant to working capital facilities), as if such incurrence
         or repayment, as the case may be (and the application of the proceeds
         thereof), occurred on the first day of the Four Quarter Period and

                  (2) any Asset Sales or Asset Acquisitions (including, without
         limitation, any Consolidated EBITDA (including any PRO FORMA expense
         and cost reductions calculated on a basis consistent with Regulation
         S-X under the Securities Act) attributable to the assets which are the
         subject of the Asset Acquisition or Asset Sale during the Four Quarter
         Period) occurring during the Four Quarter Period or at any time
         subsequent to the last day of the Four Quarter Period and on or prior
         to the Determination Date, as if such Asset Sale or Asset Acquisition
         (including the incurrence, assumption or liability for any such
         Indebtedness or Acquired Indebtedness) occurred on the first day of the
         Four Quarter Period.

                  "CONSOLIDATED TAX EXPENSE" means, with respect to any Person
for any period, the aggregate of all taxes of such Person and its Restricted
Subsidiaries paid or accrued for such period on a consolidated basis, determined
in accordance with GAAP.

                  "CONSOLIDATED TOTAL DEBT RATIO" means, with respect to any
Person, the ratio of (x) consolidated Indebtedness of such Person at the date of
determination giving rise to the need to calculate the Consolidated Total Debt
Ratio (the "DETERMINATION DATE") to (y) Consolidated EBITDA of such Person
during the four full fiscal quarters (the "FOUR QUARTER PERIOD") ending on or
prior to the Determination Date. In addition to and without limitation of the
foregoing, for purposes of this definition,

<Page>

                                      -7-

"Consolidated EBITDA" and "consolidated Indebtedness" shall be calculated after
giving effect on a PRO FORMA basis for the period of such calculation to

                  (1) the incurrence or repayment or retirement of any
         Indebtedness of such Person or any of its Restricted Subsidiaries (and
         the application of the proceeds thereof) at any time subsequent to the
         last day of the Four Quarter Period and on or prior to the
         Determination Date (other than the incurrence or repayment of
         Indebtedness in the Ordinary Course of Business for working capital
         purposes pursuant to working capital facilities), as if such incurrence
         or repayment, as the case may be (and the application of the proceeds
         thereof), occurred on the first day of the Four Quarter Period and

                  (2) any Asset Sales or Asset Acquisitions (including, without
         limitation, any Consolidated EBITDA (including any PRO FORMA expense
         and cost reductions calculated on a basis consistent with Regulation
         S-X under the Securities Act) attributable to the assets which are the
         subject of the Asset Acquisition or Asset Sale during the Four Quarter
         Period) occurring during the Four Quarter Period or at any time
         subsequent to the last day of the Four Quarter Period and on or prior
         to the Determination Date, as if such Asset Sale or Asset Acquisition
         (including the incurrence, assumption or liability for any such
         Indebtedness or Acquired Indebtedness) occurred on the first day of the
         Four Quarter Period.

                  "CURRENCY AGREEMENT" means any foreign exchange contract,
currency swap agreement or other similar agreement or arrangement designed to
protect the Company or any Restricted Subsidiary against fluctuations in
currency values.

                  "DEFAULT" means an event or condition the occurrence of which
is, or with the lapse of time or the giving of notice or both would be, an Event
of Default.

                  "DESIGNATED GUARANTOR SENIOR DEBT" means, with respect to any
Guarantor, (1) any Indebtedness outstanding under the New Credit Agreement to
the extent guaranteed by such Guarantor and (2) any other Guarantor Senior Debt
permitted under this Note Agreement that has been designated by the Company or
such Guarantor as Designated Guarantor Senior Debt in the instrument creating
such Indebtedness.

                  "DESIGNATED NON-CASH CONSIDERATION" means the fair market
value of non-cash consideration received by the Company or one of its Restricted
Subsidiaries in connection with an Asset Sale that is so designated as
Designated Non-cash Consideration pursuant to an Officers' Certificate executed
by the principal executive officer and the principal financial officer of the
Company or such Restricted Subsidiary.

                  "DESIGNATED SENIOR DEBT" means (1) any Indebtedness
outstanding under the New Credit Agreement and (2) any other Senior Debt
permitted under this Note Agreement that has been designated by the Company as
Designated Senior Debt in the instrument creating such Indebtedness.

                  "DISQUALIFIED CAPITAL STOCK" means any Capital Stock which, by
its terms (or by the terms of any security into which it is convertible or for
which it is exchangeable), or upon the happening of any event (other than an
event which would constitute a Change of Control), matures (excluding any
maturity as the result of an optional redemption by the issuer thereof) or is
mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or
is redeemable at the sole option of the holder thereof (except, in each case,
upon the occurrence of a Change of Control), in whole or in part, on or prior to
the Final Maturity Date.

<Page>

                                      -8-

                  "ERISA" means the Employee Retirement Income Security Act of
1974, as amended.

                  "EVENT OF DEFAULT" has the meaning set forth in Section 6.01.

                  "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended, or any successor statute or statutes thereto.

                  "FAIR MARKET VALUE" or "FAIR VALUE" means, with respect to any
asset or property, the price which could be negotiated in an arm's-length free
market transaction, for cash, between a willing seller and a willing buyer,
neither of whom is under pressure or compulsion to complete the transaction.
Fair market value shall be determined by the Board of Directors of the Company
acting reasonably and in good faith and shall be evidenced by a Board
Resolution.

                  "FINAL MATURITY DATE" means April 26, 2007.

                  "GAAP" is defined to mean generally accepted accounting
principles in the United States of America as in effect as of the Issue Date,
including, without limitation, those set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board or in such other statements by such other entity as
approved by a significant segment of the accounting profession.

                  "GUARANTEE" has the meaning set forth in Section 9.01.

                  "GUARANTOR" means (i) each of the wholly owned Subsidiaries of
the Company as of May 14, 2002, whether or not indicated on the signature pages
hereto, (ii) upon consummation of the Casual Male Acquisition, each of the
Subsidiaries to the Company (if any) which may on the Acquisition Closing Date
result from the Transactions (other than any Subsidiary which is or becomes a
party to, or assumes liabilities related to, the Assumed Mortgage (as defined in
the Asset Purchase Agreement), or which is or become an assignee of the Assumed
Mortgage or the Owned Real Property (as defined in the Asset Purchase
Agreement)) and (iii) each of the Company's Restricted Subsidiaries organized in
the United States that in the future executes a supplemental Note Agreement or
other agreement of guaranty in which such Restricted Subsidiary agrees to be
bound by the terms hereof as a Guarantor; PROVIDED that any Person constituting
a Guarantor as described above shall cease to constitute a Guarantor when its
respective Guarantee is released in accordance with the terms hereof.

                  "GUARANTOR SENIOR DEBT" means the principal of, premium, if
any, and interest (including any interest accruing subsequent to the filing of a
petition of bankruptcy at the rate provided for in the documentation with
respect thereto, whether or not such interest is an allowed claim under
applicable law) on any Indebtedness of any Guarantor of the Securities, whether
outstanding on the Issue Date or thereafter created, incurred or assumed,
unless, in the case of any particular Indebtedness, the instrument creating or
evidencing the same or pursuant to which the same is outstanding expressly
provides that such Indebtedness shall not be senior in right of payment to the
Guarantee of the Securities. Without limiting the generality of the foregoing,
"Guarantor Senior Debt" shall also include the principal of, premium, if any,
interest (including any interest accruing subsequent to the filing of a petition
of bankruptcy at the rate provided for in the documentation with respect
thereto, whether or not such interest is an allowed claim under applicable law)
on, and all other amounts owing in respect of, all monetary obligations
(including guarantees thereof) of every nature of any Guarantor of the
Securities under the New Credit Agreement, including, without limitation,
obligations to pay principal and interest, reimbursement obligations under
letters of credit, fees, expenses and indemnities. "Guarantor Senior Debt" shall
not include

                  (1) Indebtedness evidenced by a Guarantee of the Securities;

<Page>

                                      -9-

                  (2) any Indebtedness of such Guarantor of the Securities owing
         to the Company or to a Subsidiary of the Company;

                  (3) Indebtedness to, or guaranteed on behalf of, any director,
         officer or employee of the Company or any Subsidiary of the Company or
         Affiliate of the Company (including, without limitation, amounts owed
         for compensation);

                  (4) trade payables and other current liabilities arising in
         the Ordinary Course of Business in connection with obtaining goods,
         materials or services;

                  (5) Indebtedness represented by Disqualified Stock;

                  (6) any liability for federal, state, local or other taxes
         owed or owing by such Guarantor of the Securities;

                  (7) that portion of any Indebtedness incurred in violation of
         this Note Agreement;

                  (8) any Indebtedness other than Indebtedness under the New
         Credit Agreement which is, by its express terms, subordinated in right
         of payment to any other Indebtedness of such Guarantor of the
         Securities; and

                  (9) any Indebtedness which, when incurred and without respect
         to any other election under Section 1111(b) of Title 11, United States
         Code, is without recourse to such Guarantor of the Securities.

                  "HOLDER" means the Person in whose name a Security is
registered on the books and records of the Company.

                  "INCUR" means, with respect to any Indebtedness, to, directly
or indirectly, create, incur, assume, guarantee, acquire, become liable,
contingently or otherwise with respect to, or otherwise become responsible for
payment of such Indebtedness.

                  "INDEBTEDNESS" means with respect to any Person, without
 duplication,

                  (1) the principal amount of all obligations of such Person for
         borrowed money,

                  (2) the principal amount of all obligations of such Person
         evidenced by bonds, debentures, notes or other similar instruments,

                  (3) all Capitalized Lease Obligations of such Person,

                  (4) all obligations of such Person to pay the deferred
         purchase price of property, all conditional sale obligations and all
         obligations under any title retention agreement (but excluding accounts
         payable and other current liabilities arising in the Ordinary Course of
         Business),

                  (5) all obligations of such Person for the reimbursement of
         any obligor on any letter of credit or banker's acceptance,

                  (6) guarantees and other contingent obligations of such Person
         in respect of Indebtedness referred to in clauses (1) through (5) above
         and clause (8) below,

<Page>

                                      -10-

                  (7) all Indebtedness of any other Person of the type referred
         to in clauses (1) through (6) above which are secured by any Lien on
         any property or asset of such Person, the amount of such obligation
         being deemed to be the lesser of the fair market value at such date of
         any asset subject to any Lien securing the Indebtedness of others and
         the amount of the Indebtedness secured,

                  (8) all obligations under currency agreements relating to
         Currency Swap Agreements and Interest Swap Obligations of such Person,
         and

                  (9) all Disqualified Capital Stock issued by such Person with
         the amount of Indebtedness represented by such Disqualified Capital
         Stock being equal to the greater of its voluntary or involuntary
         liquidation preference and its maximum fixed repurchase price, but
         excluding accrued dividends, if any.

                  For purposes hereof, (1) the "MAXIMUM FIXED REPURCHASE PRICE"
of any Disqualified Capital Stock which does not have a fixed repurchase price
shall be calculated in accordance with the terms of such Disqualified Capital
Stock as if such Disqualified Capital Stock were purchased on any date on which
Indebtedness shall be required to be determined pursuant to this Note Agreement,
and if such price is based upon, or measured by, the fair market value of such
Disqualified Capital Stock, such fair market value shall be determined
reasonably and in good faith by the Board of Directors of the issuer of such
Disqualified Capital Stock, and (2) accrual of interest, accretion or
amortization of original issue discount, the payment of interest on any
Indebtedness in the form of additional Indebtedness with the same terms, and the
payment of dividends on Disqualified Capital Stock in the form of additional
shares of the same class of Disqualified Capital Stock will not be deemed to be
an incurrence of Indebtedness or an issuance of Disqualified Capital Stock for
purposes of Section 4.03. The amount of Indebtedness of any Person at any date
shall be the amount of all unconditional obligations described above, as such
amount would be reflected on a balance sheet prepared in accordance with GAAP,
and the maximum liability at such date of such Person for any contingent
obligations described above.

                  "INITIAL PURCHASERS" means those purchasers of the Securities
from the Company pursuant to this Note Agreement indicated on the signature
pages hereof.

                  "INTEREST PAYMENT DATE" means the stated due date of an
installment of interest on the Securities.

                  "INTEREST SWAP OBLIGATIONS" means the obligations of any
Person, pursuant to any arrangement with any other Person, whereby, directly or
indirectly, such Person is entitled to receive from time to time periodic
payments calculated by applying either a floating or a fixed rate of interest on
a stated notional amount in exchange for periodic payments made by such other
Person calculated by applying a fixed or a floating rate of interest on the same
notional amount.

                  "INVESTMENT" means, with respect to any Person, any direct or
indirect loan or other extension of credit (including, without limitation, a
guarantee) or capital contribution to (by means of any transfer of cash or other
property to others or any payment for property or services for the account or
use of others), or any purchase or acquisition by such Person of any Capital
Stock, bonds, notes, debentures or other securities or evidences of Indebtedness
issued by, any Person. "Investment" shall exclude extensions of trade credit by
the Company and its Subsidiaries in the Ordinary Course of Business on
commercially reasonable terms. For the purposes of Section 4.02,

<Page>

                                      -11-

                  (1) "Investment" shall include and be valued at the fair
         market value of the net assets of any Restricted Subsidiary at the time
         that such Restricted Subsidiary is designated an Unrestricted
         Subsidiary and

                  (2) the amount of any Investment shall be the original cost of
         such Investment plus the cost of all additional Investments by the
         Company or any of its Restricted Subsidiaries, without any adjustments
         for increases or decreases in value, or write-ups, write-downs or
         write-offs with respect to such Investment, reduced by the payment of
         dividends or distributions (including tax sharing payments) in
         connection with such Investment or any other amounts received in
         respect of such Investment.

                  If the Company or any Restricted Subsidiary sells or otherwise
disposes of any Capital Stock of any Restricted Subsidiary such that, after
giving effect to any such sale or disposition, such Person is no longer a
Restricted Subsidiary, the Company shall be deemed to have made an Investment on
the date of any such sale or disposition equal to the fair market value of the
Capital Stock of such Subsidiary not sold or disposed.

                  "ISSUE DATE" means the original date of issuance of the
Securities.

                  "JOINT VENTURE" means any Person (other than a Subsidiary of
the Company) engaged in a Related Business with respect to which at least 35% of
such Person's outstanding Capital Stock is owned directly or indirectly by the
Company.

                  "LIEN" means any lien, mortgage, deed of trust, pledge,
security interest, charge or encumbrance of any kind (including any conditional
sale or other title retention agreement, any lease in the nature thereof and any
agreement to give any security interest).

                  "MANDATORY REDEMPTION" has the meaning set forth in Section
3.05.

                  "MANDATORY REDEMPTION DATE" means the fifth day after the
funds deposited with Casual Male have been released to the Company (or its
designee) in accordance with the requirements of the Bidding Procedures Order.

                  "MANDATORY REDEMPTION EVENT" has the meaning set forth in
Section 3.05.

                  "MANDATORY REDEMPTION NOTICE" has the meaning set forth in
Section 3.05.

                  "MANDATORY REDEMPTION PRICE" means 100% of the principal
amount of the Securities.

                  "MOODY'S" means Moody's Investor Service, Inc. and its
successors.

                  "NET CASH PROCEEDS" means, with respect to any Asset Sale, the
proceeds in the form of cash or Cash Equivalents including payments in respect
of deferred payment obligations when received in the form of cash or Cash
Equivalents (other than the portion of any such deferred payment constituting
interest) received by the Company or any of its Restricted Subsidiaries from
such Asset Sale net of

                  (a) all out-of-pocket expenses and fees relating to such Asset
         Sale (including, without limitation, legal, accounting and investment
         banking fees and sales commissions),

                  (b) taxes paid or payable after taking into account any
         reduction in consolidated tax liability due to available tax credits or
         deductions and any tax sharing arrangements,

<Page>

                                      -12-

                  (c) the amounts of

                        (x) any repayments of debt secured, directly or
                  indirectly, by Liens on the assets which are the subject of
                  such Asset Sale and

                        (y) any repayments of debt associated with such assets
                  which is due by reason of such Asset Sale (i.e., such
                  disposition is permitted by the terms of the instruments
                  evidencing or applicable to such debt, or by the terms of a
                  consent granted thereunder, on the condition the proceeds (or
                  portion thereof) of such disposition be applied to such debt),
                  and other fees, expenses and other expenditures, in each case,
                  reasonably incurred as a consequence of such repayment of debt
                  (whether or not such fees, expenses or expenditures are then
                  due and payable or made, as the case may be);

                  (d) any portion of cash proceeds which the Company determines
         in good faith should be reserved for post-closing adjustments, it being
         understood and agreed that on the day that all such post-closing
         adjustments have been determined, the amount (if any) by which the
         reserved amount in respect of such Asset Sale exceeds the actual
         post-closing adjustments payable by the Company or any of its
         Restricted Subsidiaries shall constitute Net Cash Proceeds on such
         date;

                  (e) all amounts deemed appropriate by the Company to be
         provided as a reserve, in accordance with GAAP ("GAAP RESERVES"),
         against any liabilities associated with such assets which are the
         subject of such Asset Sale or incurred in connection with such Asset
         Sale;

                  (f) all foreign, federal, state and local taxes payable
         (including taxes reasonably estimated to the payable) in connection
         with or as a result of such Asset Sale; and

                  (g) with respect to Asset Sales by Restricted Subsidiaries of
         the Company, the portion of such cash payments attributable to Persons
         holding a minority interest in such Restricted Subsidiary.

                  Notwithstanding the foregoing, Net Cash Proceeds shall not
include proceeds received in a foreign jurisdiction from an Asset Sale of an
asset located outside the United States to the extent

                  (1) such proceeds cannot under applicable law be transferred
         to the United States or

                  (2) such transfer would result (in the good faith
         determination of the Board of Directors of the Company) in a foreign
         tax liability that would be greater than if such Asset Sale occurred in
         the United States;

PROVIDED that if, as, and to the extent that any of such proceeds may lawfully
be in the case of clause (1) or are in the case of clause (2) transferred to the
United States, such proceeds shall be deemed to be cash payments that are
subject to the terms of this definition of Net Cash Proceeds.

                  "NET PROCEEDS OFFER" has the meaning set forth in Section
4.16.

                  "NET PROCEEDS OFFER AMOUNT" has the meaning set forth in
Section 4.16.

                  "NET PROCEEDS OFFER PAYMENT DATE" has the meaning set forth in
Section 4.16.

                  "NET PROCEEDS OFFER TRIGGER DATE" has the meaning set forth in
Section 4.16.

<Page>

                                      -13-

                  "NEW CREDIT AGREEMENT" means the Credit Agreement to be dated
on or about the Acquisition Closing Date between the Company and the lenders
thereto including all related notes, collateral documents and guarantees in each
case as such agreements may be amended (including any amendment and restatement
thereof), supplemented or otherwise modified from time to time, including any
agreement extending the maturity of, increasing the total commitment under,
refinancing, replacing or otherwise restructuring (including adding Subsidiaries
of the Company as additional borrowers or guarantors thereunder) all or any
portion of the Indebtedness under such agreement or any successor or replacement
agreement and whether by the same or any other agent, lender or group of lenders
(provided that no refinancing, modification, replacement, renewal, deferral,
extension, substitution, supplement, reissuance or resale of the New Credit
Agreement providing for a stated maturity date of the Indebtedness thereunder
later than April 26, 2007 shall constitute Permitted Indebtedness unless the
payment of principal of the Securities at their stated maturity is permitted
thereby absent a default or event of default thereunder).

                  "NOTE AGREEMENT" means this Note Agreement dated as of April
26, 2002, and amended and restated as of May 14, 2002, by and among the Company,
the Guarantors and the Initial Purchasers, as amended from time to time.

                  "OBLIGATIONS" means, with respect to any Indebtedness, all
principal, interest, premiums, penalties, fees, indemnities, expenses (including
legal fees and expenses), reimbursement obligations and other liabilities
payable to the holder of such Indebtedness under the documentation governing
such Indebtedness.

                  "OFFICER" means, with respect to any Person, the Chairman of
the Board, the Chief Executive Officer, the President, any Vice President, the
Chief Financial Officer, the Controller, the Treasurer, the Secretary or any
Assistant Vice President or Assistant Secretary of such Person.

                  "OFFICERS' CERTIFICATE" means a certificate signed by two
Officers of the Company.

                  "OPINION OF COUNSEL" means a written opinion from legal
counsel which counsel may be counsel to or an employee of the Company.

                  "ORDINARY COURSE OF BUSINESS" means, in respect of any
transaction involving the Company or any Subsidiary of the Company, the ordinary
course of such Person's business, as conducted by any such Person substantially
in accordance with past practice and undertaken by such Person in good faith and
not for the purposes of evading any covenant or restriction in this Note
Agreement, the Securities, the Guarantee and the related documents.

                  "PARI PASSU INDEBTEDNESS" means any Indebtedness of the
Company or a Guarantor of the Securities ranking PARI PASSU with the Securities
or a Guarantee of the Securities, as the case may be, including the Company's 5%
Subordinated Notes due April 26, 2007.

                  "PERMITTED HOLDERS" means Jewelcor Management, Inc., each
Initial Purchaser of Securities, each initial purchaser of the Company's Series
B Convertible Preferred Stock, and each of their respective Affiliates.

                  "PERMITTED INDEBTEDNESS" means, without duplication,

                  (1) the Securities and the Guarantees thereof,

<Page>

                                      -14-

                  (2) Indebtedness incurred pursuant to the New Credit Agreement
         in an aggregate principal amount at any time outstanding not to exceed
         $160 million reduced by any required permanent repayments (which are
         accompanied by a corresponding permanent commitment reduction)
         thereunder (excluding any such required permanent repayment and
         corresponding permanent commitment reduction to the extent refinanced
         at the time of payment under a replaced New Credit Agreement) and less
         the amount of any prepayment made with the proceeds of an Asset Sale in
         accordance with Section 4.16,

                  (3) other Indebtedness of the Company and its Subsidiaries
         outstanding on the Acquisition Closing Date (including without
         limitation any liability or guaranty of liability relating to the
         Assumed Mortgage (as defined in the Asset Purchase Agreement), whether
         or not the assignment and assumption of the Assumed Mortgage has
         occurred on the Acquisition Closing Date),

                  (4) Interest Swap Obligations of the Company or any of its
         Subsidiaries covering Indebtedness of the Company or any of its
         Subsidiaries; PROVIDED, HOWEVER, that any Indebtedness to which any
         such Interest Swap Obligations correspond is otherwise permitted to be
         incurred under this Note Agreement; PROVIDED, FURTHER, that such
         Interest Swap Obligations are entered into, in the judgment of the
         Company, to protect the Company or any of its Subsidiaries from
         fluctuation in interest rates on their respective outstanding
         Indebtedness,

                  (5) Indebtedness under Currency Agreements,

                  (6) intercompany Indebtedness owed by the Company to any
         Wholly Owned Restricted Subsidiary of the Company or by any Restricted
         Subsidiary of the Company to the Company or any Wholly Owned Restricted
         Subsidiary of the Company for so long as such Indebtedness is held by
         the Company or a Wholly Owned Restricted Subsidiary of the Company in
         each case subject to no Lien held by a Person other than the Company or
         a Wholly Owned Restricted Subsidiary of the Company; PROVIDED, HOWEVER,
         that if as of any date any Person other than the Company or a Wholly
         Owned Restricted Subsidiary of the Company owns or holds any such
         Indebtedness or holds a Lien in respect of such Indebtedness, such date
         shall be deemed the incurrence of Indebtedness not constituting
         Permitted Indebtedness by the issuer of such Indebtedness under this
         clause (6),

                  (7) Acquired Indebtedness to the extent the Company could have
         incurred such Indebtedness in accordance with clause 11 or 12 of this
         definition on the date such Indebtedness became Acquired Indebtedness,

                  (8) (A) guarantees by Restricted Subsidiaries pursuant to
         Section 4.17 or guarantees by Restricted Subsidiaries of Indebtedness
         of other Restricted Subsidiaries to the extent that such Indebtedness
         is otherwise permitted under this Note Agreement and (B) guarantees by
         the Company of its Wholly Owned Restricted Subsidiaries' Indebtedness;
         PROVIDED that such Indebtedness is otherwise permitted to be incurred
         under this Note Agreement,

                  (9) guarantees, letters of credit and indemnity agreements
         relating to performance and surety bonds incurred in the Ordinary
         Course of Business,

                  (10) any refinancing, modification, replacement, renewal,
         deferral, extension, substitution, supplement, reissuance or resale of
         Indebtedness referred to in clauses (2), (3) or (7) of this definition,
         including any additional Indebtedness incurred to pay premiums required
         by the instruments governing such Indebtedness as in effect at the time
         of issuance thereof ("REQUIRED

<Page>

                                      -15-

         PREMIUMS") and fees in connection therewith; PROVIDED, HOWEVER, that
         any such event shall not (1) result in an increase in the aggregate
         principal amount of Permitted Indebtedness (except to the extent such
         increase is a result of a simultaneous incurrence of additional
         Indebtedness (A) to pay Required Premiums and related fees or (B)
         otherwise permitted to be incurred under this Note Agreement) of the
         Company and its Subsidiaries, (2) create Indebtedness with a stated
         maturity date earlier than the stated maturity date of the Indebtedness
         being refinanced or (3) create Indebtedness with a Weighted Average
         Life to Maturity at the time such Indebtedness is incurred that is less
         than the Weighted Average Life to Maturity at such time of the
         Indebtedness being refinanced, modified, replaced, renewed, deferred,
         extended, or substituted, supplemented, reissued or resold, (provided
         that no refinancing, modification, replacement, renewal, deferral,
         extension, substitution, supplement, reissuance or resale of the New
         Credit Agreement providing for a stated maturity date of the
         Indebtedness thereunder later than April 26, 2007 shall constitute
         Permitted Indebtedness unless the payment of the principal of the
         Securities at their stated maturity is permitted thereby absent a
         default or event of default thereunder),

                  (11) additional Indebtedness of the Company or any Restricted
         Subsidiary if (a) no Default or Event of Default shall have occurred
         and be continuing at the time of the proposed incurrence thereof or
         shall occur as a result of such proposed incurrence and (b) after
         giving effect to such proposed incurrence the Consolidated Senior Debt
         Ratio would not be greater than 2.5 to 1, and

                  (12) additional Indebtedness of the Company or any Restricted
         Subsidiary in an aggregate principal amount not to exceed $10 million
         at any one time outstanding.

                  "PERMITTED INVESTMENTS" means

                  (1) Investments by the Company or any Restricted Subsidiary of
         the Company in, or for the benefit of, any Restricted Subsidiary of the
         Company (whether existing on the Issue Date or created thereafter and
         including Investments in any Person, if after giving effect to such
         Investment, such Person would be a Restricted Subsidiary of the Company
         or such Person is merged, consolidated or amalgamated with or into, or
         transfers or conveys all or substantially all of its assets to, or is
         liquidated into, the Company or a Restricted Subsidiary of the Company)
         and Investments in, or for the benefit of, the Company by any
         Restricted Subsidiary of the Company;

                  (2) cash and Cash Equivalents;

                  (3) Investments existing on the Issue Date;

                  (4) Investments in securities of trade creditors or customers
         received pursuant to any plan of reorganization or similar arrangement
         upon the bankruptcy or insolvency of such trade creditors or customers
         or in settlement of or other resolution of claims or disputes, and in
         each case, extensions, modifications and remands thereof;

                  (5) so long as no Default or Event of Default has occurred and
         is continuing, loans and advances by the Company and its Restricted
         Subsidiaries to their respective employees not to exceed $1 million at
         any one time outstanding;

                  (6) Investments received by the Company or its Restricted
         Subsidiaries as consideration for asset sales, including Asset Sales;
         PROVIDED, HOWEVER, in the case of an Asset Sale, such Asset Sale is
         effected in compliance with Section 4.16;

<Page>

                                      -16-

                  (7) Currency Agreements and Interest Swap Obligations entered
         into in the ordinary course of the Company's or its Restricted
         Subsidiaries' business and otherwise in compliance with this Note
         Agreement;

                  (8) guarantees by the Company or any of its Restricted
         Subsidiaries of Indebtedness or other obligations otherwise permitted
         to be incurred by the Company or any of its Restricted Subsidiaries
         under this Note Agreement;

                  (9) so long as no Default or Event of Default has occurred and
         is continuing, Investments in Joint Ventures not to exceed $25 million
         at any one time outstanding; and

                  (10) any Investments received in exchange for the issuance of
         Qualified Capital Stock of the Company or any warrants, rights or
         options to purchase or acquire shares of any such Qualified Capital
         Stock.

                  "PERMITTED JUNIOR SECURITIES" means

                  (1) Qualified Capital Stock of the Company or any Guarantor;
         or

                  (2) debt securities that are subordinated to (a) all Senior
         Debt or Guarantor Senior Debt and (b) any debt securities issued in
         exchange for Senior Debt or Guarantor Senior Debt to substantially the
         same extent as, or to a greater extent than, the Securities and the
         Guarantees of the Securities are subordinated to Senior Debt and
         Guarantor Senior Debt, respectively, under this Note Agreement.

                  "PERMITTED LIENS" means

                  (1) Liens securing Indebtedness consisting of Capitalized
         Lease Obligations;

                  (2) Liens securing any Senior Debt or Guarantor Senior Debt,
         including liens securing the New Credit Agreement;

                  (3) Liens on property existing at the time of acquisition
         thereof by the Company or a Restricted Subsidiary; PROVIDED that such
         Liens were in existence prior to the contemplation of such acquisition;

                  (4) Liens at any time outstanding with respect to assets of
         the Company and its Restricted Subsidiaries, the fair market value of
         which at the time the Lien was imposed does not exceed $2 million;

                  (5) Liens securing Indebtedness incurred pursuant to clauses
         (9) or (12) of the definition of Permitted Indebtedness; or

                  (6) Liens created to replace Liens described in clause (3)
         above to the extent that such Liens do not extend beyond the originally
         encumbered property (other than improvements thereto or thereon,
         attachments and other modifications reasonably required to maintain
         such property) and are not otherwise materially less favorable to the
         Company and its Restricted Subsidiaries than the Liens being replaced,
         as determined by the Board of Directors of the Company in good faith.

<Page>

                                      -17-

                  "PERSON" means an individual, partnership, corporation,
unincorporated organization, trust or joint venture, or a governmental agency or
political subdivision thereof.

                  "PREFERRED STOCK" of any Person means any Capital Stock of
such Person that has preferential rights to any other Capital Stock of such
Person with respect to dividends or redemptions or upon liquidation.

                  "PRINCIPAL" of any Indebtedness (including the Securities)
means the principal amount of such Indebtedness plus the premium, if any, on
such Indebtedness.

                  "PRO FORMA" means, with respect to any calculation made or
required to be made pursuant to the terms of this Note Agreement, a calculation
in accordance with Article II of Regulation S-X under the Securities Act.

                  "PRO RATA SHARE" has the meaning set forth in Section 4.16.

                  "PRODUCTIVE ASSETS" means assets of a kind used or usable in
the business of the Company and its Restricted Subsidiaries as conducted on the
date of the relevant Asset Sale or in a Related Business (including Capital
Stock in any such business or Related Business and licenses or similar rights to
operate); PROVIDED, HOWEVER, that accounts receivable acquired as part of an
acquisition of assets of a kind used or usable in such business shall be deemed
to be Productive Assets.

                  "QUALIFIED CAPITAL STOCK" means any stock that is not
Disqualified Capital Stock.

                  "RECORD DATE" means the applicable Record Date (whether or not
a Business Day) specified in the Securities.

                  "REDEMPTION DATE," when used with respect to any Security to
be redeemed, means the date fixed for such redemption pursuant to this Note
Agreement and the Securities.

                  "REDEMPTION PRICE," when used with respect to any Security to
be redeemed, means the price fixed for such redemption, payable in immediately
available funds, pursuant to this Note Agreement and the Securities.

                  "RELATED BUSINESS" means the businesses of the Company and its
Restricted Subsidiaries as conducted on the Issue Date and similar,
complementary or related businesses or reasonable extensions, developments or
expansions thereof.

                  "RESTRICTED INVESTMENT" means an Investment other than a
Permitted Investment.

                  "RESTRICTED PAYMENT" has the meaning set forth in Section
4.02.

                  "RESTRICTED SECURITY" has the meaning set forth in Rule
144(a)(3) under the Securities Act.

                  "RESTRICTED SUBSIDIARY" of any Person means any Subsidiary of
such Person which at the time of determination is not an Unrestricted
Subsidiary.

                  "S&P" means Standard & Poor's, A division of the McGraw-Hill
Companies, and its successors.

<Page>

                                      -18-

                  "SALE AND LEASEBACK TRANSACTION" means any direct or indirect
arrangement with any Person or to which any such Person is a party, providing
for the leasing to the Company or a Restricted Subsidiary of any property,
whether owned by the Company or any Restricted Subsidiary at the Issue Date or
later acquired, which has been or is to be sold or transferred by the Company or
such Restricted Subsidiary to such Person or to any other Person from whom funds
have been or are to be advanced by such Person on the security of such Property;
PROVIDED, HOWEVER, that a Sale and Leaseback Transaction shall not include a
transaction or series of related transactions for which the Company or its
Restricted Subsidiaries receive aggregate consideration (exclusive of
indemnities) of less than $2 million (a "DE MINIMIS TRANSACTION") so long as the
aggregate consideration (exclusive of indemnities) received by the Company or
its Restricted Subsidiaries from all De Minimis Transactions does not exceed an
aggregate of $2 million.

                  "SECURITIES ACT" means the Securities Act of 1933, as amended,
or any successor statute or statutes thereto.

                  "SECURITYHOLDER" or "HOLDER" means the Person in whose name a
Security is registered on the books of the Company.

                  "SENIOR DEBT" means the principal of, premium, if any, and
interest (including any interest accruing subsequent to the filing of a petition
of bankruptcy at the rate provided for in the documentation with respect
thereto, whether or not such interest is an allowed claim under applicable law)
on any Permitted Indebtedness of the Company, whether outstanding on the Issue
Date or thereafter created, incurred or assumed as permitted under this Note
Agreement, unless, in the case of any particular Permitted Indebtedness, the
instrument creating or evidencing the same or pursuant to which the same is
outstanding expressly provides that such Permitted Indebtedness shall not be
senior in right of payment to the Securities. Without limiting the generality of
the foregoing, "Senior Debt" shall also include the principal of, premium, if
any, interest (including any interest accruing subsequent to the filing of a
petition of bankruptcy at the rate provided for in the documentation with
respect thereto, whether or not such interest is an allowed claim under
applicable law) on, and all other amounts owing in respect of, all monetary
obligations (including guarantees thereof) of every nature of the Company under
the New Credit Agreement, including, without limitation, obligations to pay
principal and interest, reimbursement obligations under letters of credit, fees,
expenses and indemnities. "Senior Debt" shall not include

                  (1) Indebtedness evidenced by the Securities;

                  (2) any Indebtedness of the Company to a Subsidiary of the
         Company;

                  (3) Indebtedness to, or guaranteed on behalf of, any director,
         officer or employee of the Company or of any Subsidiary of the Company
         or Affiliate of the Company (including, without limitation, amounts
         owed for compensation);

                  (4) trade payables and other current liabilities arising in
         the Ordinary Course of Business in connection with obtaining goods,
         materials or services;

                  (5) any liability for federal, state, local or other taxes
         owed or owing by the Company;

                  (6) that portion of any Indebtedness incurred in violation of
         this Note Agreement;

                  (7) any Indebtedness other than Indebtedness under the New
         Credit Agreement which is, by its express terms, subordinated in right
         of payment to any other Indebtedness of the Company; and

<Page>

                                      -19-

                  (8) any Indebtedness which, when incurred and without respect
         to any other election under Section 1111(b) of Title 11, United States
         Code, is without recourse to the Company.

                  "SUBSIDIARY," with respect to any Person, means (i) any
corporation of which the outstanding Capital Stock having at least a majority of
the votes entitled to be cast in the election of directors under ordinary
circumstances shall at the time be owned, directly or indirectly, by such
Person, or (ii) any other Person of which at least a majority of the voting
interest under ordinary circumstances is at the time, directly or indirectly,
owned by such Person.

                  "SURVIVING ENTITY" has the meaning set forth in Section 5.01.

                  "TRANSACTIONS" means (1) the acquisition of substantially all
the assets of Casual Male and certain related entities pursuant to the form of
Asset Purchase Agreement dated as of May 2, 2002 (as the same may hereafter be
amended, the "ASSET PURCHASE AGREEMENT"), by and among the Company, Casual Male
and certain such entities (the "CASUAL MALE ACQUISITION"), (2) the execution and
delivery of the New Credit Agreement and the anticipated borrowing of up to
approximately $140 million thereunder in connection with the consummation of the
Casual Male Acquisition, (3) the issuance of Preferred Stock, Common Stock
and/or warrants and the application of proceeds thereof to, among other things,
the consummation of the Casual Male Acquisition and the payment of fees and
expenses in connection therewith, (4) the issuance of the Company's 5%
Subordinated Notes due April 26, 2007 and (5) the issuance of the Securities
pursuant to this Note Agreement.

                  "UNRESTRICTED SUBSIDIARY" of any Person means

                  (1) any Subsidiary of such Person that at the time of
         determination shall be or continue to be designated an Unrestricted
         Subsidiary by the Board of Directors of such Person in the manner
         provided below; and

                  (2) any Subsidiary of an Unrestricted Subsidiary.

                  The Board of Directors may designate any Subsidiary (including
any newly acquired or newly formed Subsidiary) to be an Unrestricted Subsidiary
unless such Subsidiary owns any Capital Stock of, or owns or holds any Lien on
any property of, the Company or any other Subsidiary of the Company that is not
a Subsidiary of the Subsidiary to be so designated; PROVIDED, HOWEVER, that each
Subsidiary to be so designated and each of its Subsidiaries has not at the time
of designation, and does not thereafter, create, incur, issue, assume, guarantee
or otherwise become directly or indirectly liable with respect to any
Indebtedness pursuant to which the lender has recourse to any of the assets of
the Company or any of its Restricted Subsidiaries except to the extent permitted
by Section 4.03.

                  The Board of Directors may designate any Unrestricted
Subsidiary to be a Restricted Subsidiary only if

                  (x) immediately after giving effect to such designation, the
         Company is able to incur at least $1.00 of additional Permitted
         Indebtedness and

                  (y) immediately before and immediately after giving effect to
         such designation, no Default or Event of Default shall have occurred
         and be continuing.

                  Any such designation by the Board of Directors shall be
evidenced by the resolution giving effect to such designation and an Officers'
Certificate certifying that such designation complied with the foregoing
provisions.

<Page>

                                      -20-

                  "U.S. GOVERNMENT OBLIGATIONS" means direct obligations of and
obligations guaranteed by the United States of America for the payment of which
the full faith and credit of the United States of America is pledged.

                  "U.S. LEGAL TENDER" means such coin or currency of the United
States of America as at the time of payment shall be legal tender for the
payment of public and private debts.

                  "WEIGHTED AVERAGE LIFE TO MATURITY" means, when applied to any
Indebtedness at any date, the number of years obtained by dividing

                  (a) the then outstanding aggregate principal amount of such
         Indebtedness into

                  (b) the sum of the total of the products obtained by
         multiplying

                        (1) the amount of each then remaining installment,
                  sinking fund, serial maturity or other required payment of
                  principal, including payment at final maturity, in respect
                  thereof, by

                        (2) the number of years (calculated to the nearest
                  one-twelfth) which will elapse between such date and the
                  making of such payment.

                  "WHOLLY OWNED RESTRICTED SUBSIDIARY" of any Person means any
Restricted Subsidiary of such Person of which all the outstanding voting
securities (other than directors' qualifying shares) are owned by such Person or
any Wholly Owned Restricted Subsidiary of such Person.

         SECTION 1.02.         RULES OF CONSTRUCTION.

                  Unless the context otherwise requires:

                  (1) an accounting term not otherwise defined has the meaning
         assigned to it in accordance with GAAP;

                  (2) "or" is not exclusive;

                  (3) words in the singular include the plural, and words in the
         plural include the singular;

                  (4) provisions apply to successive events and transactions;
         and

                  (5) "herein," "hereof" and other words of similar import refer
         to this Note Agreement as a whole and not to any particular Article,
         Section or other subdivision.

<Page>

                                      -21-

                                   ARTICLE TWO

                                 THE SECURITIES

         SECTION 2.01. FORM AND DATING.

                  The Securities shall be substantially in the form of EXHIBIT A
hereto. Each Security shall have an executed Guarantee from each of the
Guarantors endorsed thereon substantially in the form of EXHIBIT B hereto.

                  Upon any transfer provided for in Section 2.05, the Company
shall execute and deliver to the Person specified by the Assignment Form
attached to such Security a new Security in such names and in such authorized
denominations as such Assignment Form. Thereupon, the beneficial ownership of
such Security shown on the records maintained by the Company shall be amended to
reflect such transfer.

                  The Company shall act as registrar to maintain a record of the
issuance, registered transfer and registered Holder of each Security.

         SECTION 2.02. REPLACEMENT SECURITIES.

                  If a mutilated Security is surrendered to the Company or if
the Holder of a Security claims that the Security has been lost, destroyed or
wrongfully taken, the Company shall issue a replacement Security if the
Company's requirements are met. If required by the Company, such Holder shall
provide an indemnity bond or other indemnity, sufficient in the judgment of the
Company, to protect the Company and the Guarantors from any loss which any of
them may suffer if a Security is replaced. The Company may charge such Holder
for its reasonable out-of-pocket expenses in replacing a Security, including
reasonable fees and expenses of counsel. Every replacement Security shall
constitute an additional obligation of the Company and every replacement
Guarantee shall constitute an additional obligation of the Guarantors.

         SECTION 2.03. TREASURY SECURITIES.

                  In determining whether the Holders of the required principal
amount of Securities have concurred in any direction, waiver or consent,
Securities owned by the Company or any of its Affiliates shall be disregarded.

         SECTION 2.04. DEFAULTED INTEREST.

                  The Company will pay interest on overdue principal from time
to time on demand at the rate of interest then borne by the Securities. The
Company shall, to the extent lawful, pay interest on overdue installments of
interest (without regard to any applicable grace periods) from time to time on
demand at the rate of interest then borne by the Securities. Interest will be
computed on the basis of a 360-day year comprised of twelve 30-day months and,
in the case of a partial month, the actual number of days elapsed.

                  If the Company defaults in a payment of interest on the
Securities, it shall pay the defaulted interest, plus (to the extent lawful) any
interest payable on the defaulted interest, to the Persons who are Holders.

<Page>

                                      -22-

         SECTION 2.05  ASSIGNMENT AND TRANSFER.

                  Neither any Security nor any beneficial interest therein may
be sold, assigned or otherwise transferred except (a) in a principal amount of
not less than $2 million, (b) in accordance with applicable securities laws (as
referenced in the restrictive legend appearing on the form of Security), (c) by
due execution and delivery of the Form of Assignment attached to such Security,
and (d) with the consent of the Company, which consent shall not unreasonably be
withheld.

                                  ARTICLE THREE

                                   REDEMPTION

         SECTION 3.01. NOTICES.

                  If the Company elects to redeem Securities pursuant to the
optional redemption provisions of Paragraph 5 or Paragraph 6 of the Securities,
it shall notify the Holders in writing of the Redemption Date, the Redemption
Price and the principal amount of Securities to be redeemed at least 15 days but
not more than 30 days before the Redemption Date together with an Officers'
Certificate and an Opinion of Counsel stating that such redemption will comply
with the conditions contained herein. Any such notice may be cancelled at any
time prior to notice of such redemption being mailed to any Holder and shall
thereby be void and of no effect.

         SECTION 3.02. SELECTION OF SECURITIES TO BE REDEEMED.

                  In the event that less than all of the Securities are to be
redeemed at any time pursuant to the optional redemption provisions of Paragraph
4 or Paragraph 5 of the Securities, selection of such Securities for redemption
will be made by the Company on a PRO RATA basis among all of the Holders (based
upon the relative principal amounts of Securities held by each such Holder).

                  The Company may select for redemption portions of the
principal amount at maturity of the Securities that have denominations larger
than $1,000. Securities and portions of them that the Company selects shall be
in principal amounts at maturity of $1,000 or a multiple thereof. Provisions of
this Note Agreement that apply to Securities called for redemption also apply to
portions of Securities called for redemption.

         SECTION 3.03. EFFECT OF NOTICE OF REDEMPTION.

                  Unless the Company defaults in the payment when due of such
Redemption Price plus accrued interest, if any, interest on the Securities to be
redeemed will cease to accrue on and after the applicable Redemption Date,
whether or not such Securities are presented for payment.

         SECTION 3.04. SECURITIES REDEEMED IN PART.

                  Upon surrender and cancellation of a Security that is to be
redeemed in part only, the Company shall deliver to the Holder a new Security or
Securities in a principal amount equal to the unredeemed portion of the Security
surrendered.

<Page>

                                      -23-

         SECTION 3.05. SPECIAL MANDATORY REDEMPTION.

                  THE PROVISIONS OF THIS SECTION 3.05 SHALL BE VOID AND OF NO
FURTHER FORCE AND EFFECT FROM AND AFTER MAY 14, 2002.

                  In the event that the funds deposited with Casual Male have
been released to the Company (or its designee) in accordance with the
requirements of the Bidding Procedures Order (a "MANDATORY REDEMPTION EVENT"):

         (i) The Company shall notify the Holders in writing on the next
         succeeding Business Day after a Mandatory Redemption Event that the
         Company will redeem the Securities on a specified Redemption Date no
         later than the Mandatory Redemption Date at the Mandatory Redemption
         Price plus accrued and unpaid interest to the Redemption Date (the
         "MANDATORY REDEMPTION").

         (ii) Within one Business Day after a Mandatory Redemption Event, the
         Company shall mail a notice (the "MANDATORY REDEMPTION NOTICE") by
         first class mail, postage prepaid, to each Holder at its registered
         address. The Mandatory Redemption Notice shall identify:

                  (1) the Mandatory Redemption Date;

                  (2) the Mandatory Redemption Price and the amount of accrued
         interest to be paid;

                  (3) that Securities called for redemption must be surrendered
         to the Company at its offices at Needham, Massachusetts (or such other
         office of the Company as the Company may have specified in such
         Mandatory Redemption Notice) to collect the Mandatory Redemption Price
         plus accrued interest, if any;

                  (4) that, unless the Company defaults in making the redemption
         payment, interest on Securities called for redemption ceases to accrue
         on and after the Redemption Date, and the only remaining right of the
         Holders of such Securities is to receive payment of the Mandatory
         Redemption Price upon surrender to the Company of the Securities
         redeemed; and

                  (5) the Securities are to be redeemed pursuant to this Section
         3.05.

                                  ARTICLE FOUR

                                    COVENANTS

         SECTION 4.01. PAYMENT OF SECURITIES.

                  The Company will pay the principal of and interest on the
Securities in the manner provided in the Securities and in this Note Agreement.
Interest including defaulted interest, if any, will be computed on the basis of
a 360-day year comprised of twelve 30-day months and in the case of a partial
month, the actual number of days elapsed. The interest rate in respect of any
overdue installment of interest on the Securities which is not paid when due by
virtue of Article 8 hereof shall be increased by 500 basis points, to a rate of
17% per annum.

<Page>

                                      -24-

                  Notwithstanding anything to the contrary contained in this
Note Agreement, the Company may, to the extent it is required to do so by law,
deduct or withhold income or other similar taxes imposed by the United States of
America from principal, premium or interest payments hereunder.

         SECTION 4.02. LIMITATION ON RESTRICTED PAYMENTS.

                  The Company will not, and will not cause or permit any of its
Restricted Subsidiaries to, directly or indirectly,

                  (a) declare or pay any dividend or make any distribution
         (other than dividends or distributions payable in Qualified Capital
         Stock of the Company or in warrants, rights or options to acquire
         Qualified Capital Stock of the Company) on or in respect of shares of
         the Company's Capital Stock to holders of such Capital Stock,

                  (b) purchase, redeem or otherwise acquire or retire for value
         any Capital Stock of the Company or any warrants, rights or options to
         purchase or acquire shares of any class of such Capital Stock, other
         than the exchange of such Capital Stock, warrants, rights or options
         for Qualified Capital Stock and/or for warrants, rights or options to
         acquire Qualified Capital Stock, or

                  (c)  make any Investment (other than Permitted Investments)

                  (each of the foregoing actions set forth in clauses (a), (b)
and (c) being referred to as a "RESTRICTED PAYMENT"), if at the time of such
Restricted Payment or immediately after giving effect thereto,

                  (1) a Default or an Event of Default shall have occurred and
         be continuing,

                  (2) the Company could not incur at least $1.00 of Indebtedness
         pursuant to Section 4.03, or

                  (3) the aggregate amount of Restricted Payments made
         subsequent to the Issue Date shall exceed the sum of:

                           (x) 50% of the cumulative Consolidated Net Income, or
                  if cumulative Consolidated Net Income shall be a loss, minus
                  100% of such loss, of the Company earned subsequent to the
                  Issue Date and on or prior to the last day of the most recent
                  fiscal quarter for which financial statements are available
                  prior to such proposed Restricted Payments, treating such
                  period as a single accounting period, plus

                           (y) 100% of the aggregate Net Cash Proceeds received
                  by the Company from any Person from the issuance and sale
                  subsequent to the Issue Date and on or prior to the date the
                  Restricted Payment occurs of Qualified Capital Stock, or in
                  respect of warrants, rights or options to acquire Qualified
                  Capital Stock, excluding Qualified Capital Stock issued upon
                  the conversion of, or in exchange for, Capital Stock of the
                  Company or its Subsidiaries.

                  Notwithstanding the foregoing, the provisions set forth in the
immediately preceding paragraph shall not prohibit

<Page>

                                      -25-

                  (1) the payment of any dividend or distribution or the
         redemption of any securities within 60 days after the date of
         declaration of such dividend or distribution or the giving of formal
         notice by the Company of such redemption, if the dividend or
         distribution would have been permitted on the date of declaration or
         the redemption would have been permitted on the date of the giving of
         the formal notice thereof; and

                  (2) the repurchase of any Capital Stock of the Company or any
         warrants, rights or options to purchase or acquire shares of any such
         Capital Stock deemed to occur upon the exercise of stock options to
         acquire Qualified Capital Stock or other similar arrangements to
         acquire Qualified Capital Stock if such repurchased Capital Stock or
         warrants, rights or options to acquire shares of any such Capital Stock
         represent a portion of the exercise price thereof.

         SECTION 4.03. LIMITATION ON INCURRENCE OF ADDITIONAL INDEBTEDNESS.

                  The Company will not, and will not permit any of its
Restricted Subsidiaries to, incur any Indebtedness, other than Permitted
Indebtedness.

                  Neither the Company nor any Guarantor will, directly or
indirectly, in any event incur any Indebtedness other than Indebtedness under
the New Credit Agreement which, by its terms or by the terms of any agreement
governing such Indebtedness, is both subordinated pursuant to its terms in right
of payment to any other Indebtedness of the Company or such Guarantor, as the
case may be, and senior in right of payment to the Securities or any such
Guarantor's Guarantee, as the case may be.

         SECTION 4.04. CORPORATE EXISTENCE.

                  Except as otherwise permitted by Article Five, the Company
shall do or cause to be done, at its own cost and expense, all things necessary
to preserve and keep in full force and effect its corporate existence and the
corporate, partnership or other existence of each of the Subsidiaries in
accordance with the respective organizational documents of the Company or the
Subsidiary, as the case may be, and the rights (charter and statutory) and
material franchises of the Company and each of the Subsidiaries; PROVIDED,
HOWEVER, that the Company shall not be required to preserve any such right or
franchise, or the corporate existence of any Subsidiary, if the Board of
Directors of the Company shall determine that the preservation thereof is no
longer desirable in the conduct of the business of the Company and each of the
Subsidiaries, taken as a whole and that the loss thereof is not adverse in any
material respect to the Holders.

         SECTION 4.05. PAYMENT OF TAXES AND OTHER CLAIMS.

                  The Company will pay or discharge or cause to be paid or
discharged, before the same shall become delinquent, (a) all material taxes,
assessments and governmental charges levied or imposed upon it or any of the
Subsidiaries or upon the income, profits or property of it or any of the
Subsidiaries and (b) all lawful claims for labor, materials and supplies which,
in each case, if unpaid, might by law become a material liability or Lien upon
the property of it or any of the Subsidiaries; PROVIDED, HOWEVER, that the
Company shall not be required to pay or discharge or cause to be paid or
discharged any such tax, assessment, charge or claim the amount, applicability
or validity of which is being contested in good faith by appropriate proceedings
and for which adequate provision has been made or for which adequate reserves,
to the extent required under GAAP, have been taken.

<Page>

                                      -26-

         SECTION 4.06. MAINTENANCE OF PROPERTIES AND INSURANCE.

                  (a) The Company shall cause all material properties owned by
or leased by it or any of its Subsidiaries used or useful to the conduct of its
business or the business of any of its Subsidiaries to be maintained and kept in
normal condition, repair and working order and supplied with all necessary
equipment and shall cause to be made all necessary repairs, renewals and
replacements thereof, all as in its judgment may be reasonably necessary, so
that the business carried on in connection therewith may be properly conducted
at all times; PROVIDED, HOWEVER, that nothing in this Section 4.06 shall prevent
the Company or any of the Subsidiaries from discontinuing the use, operation or
maintenance of any of such properties, or disposing of any of them, if such
properties are, in the reasonable and good faith judgment of the Board of
Directors of the Company or such Subsidiary, as the case may be, no longer
reasonably necessary in the conduct of their respective businesses or such
disposition is otherwise permitted by this Note Agreement.

                  (b) The Company shall provide or cause to be provided, for
itself and each of its Subsidiaries, insurance (including appropriate
self-insurance) against loss or damage of the kinds that, in the reasonable,
good faith judgment of the Board of Directors of the Company, are adequate and
appropriate for the conduct of the business of the Company and such Subsidiaries
in a prudent manner, with reputable insurers or with the government of the
United States of America or an agency or instrumentality thereof, in such
amounts, with such deductibles and by such methods as shall be customary, in the
good faith judgment of the Board of Directors of the Company, for companies
similarly situated in the industry.

         SECTION 4.07. COMPLIANCE CERTIFICATE; NOTICE OF DEFAULT.

                  (a) The Company shall deliver to the Holders, within 90 days
after the end of each of the Company's fiscal years, an Officers' Certificate
(signed by the principal executive officer, principal financial officer and
principal accounting officer) stating that a review of its activities and the
activities of its Subsidiaries during the preceding fiscal year has been made
under the supervision of the signing officers with a view to determining whether
it has kept, observed, performed and fulfilled its obligations under this Note
Agreement and further stating, as to each such officer signing such certificate,
that to the best of his knowledge the Company during such preceding fiscal year
has kept, observed, performed and fulfilled each and every such obligation and
no Default or Event of Default has occurred during such year and at the date of
such certificate there is no Default or Event of Default that has occurred and
is continuing or, if such signers do know of such Default or Event of Default,
the certificate shall describe the Default or Event of Default and its status in
reasonable detail.

                  (b) So long as any of the Securities are outstanding, if any
Default or Event of Default has occurred and is continuing, the Company shall
promptly deliver to the Holders an Officers' Certificate specifying such event,
notice or other action within 10 Business Days of its becoming aware of such
occurrence.

         SECTION 4.08. COMPLIANCE WITH LAWS.

                  The Company will comply, and will cause each of the
Subsidiaries to comply, with all applicable statutes, rules, regulations, orders
and restrictions of the United States, all states and municipalities thereof,
and of any governmental department, commission, board, regulatory authority,
bureau, agency and instrumentality of the foregoing, in respect of the conduct
of their respective businesses and the ownership of their respective properties,
except for such noncompliances as are being contested in good faith and by
appropriate proceedings and except for such noncompliances as would not

<Page>

                                      -27-

in the aggregate have a material adverse effect on the financial condition or
results of operations of the Company and its Subsidiaries taken as a whole.

         SECTION 4.09. COMMISSION REPORTS.

                  (a) The Company will deliver to the Holders promptly, but in
any event no later than 15 days after it files with the Commission, copies of
the quarterly and annual reports and of the information, documents and other
reports, if any, which the Company is required to file with the Commission
pursuant to Section 13 or 15(d) of the Exchange Act.

                  (b) Regardless of whether the Company is required to furnish
such reports to its stockholders pursuant to the Exchange Act, the Company (at
its own expense) shall cause its consolidated financial statements, comparable
to those which would have been required to appear in annual or quarterly
reports, to be delivered to the Holders.

         SECTION 4.10. LIMITATIONS ON TRANSACTIONS WITH AFFILIATES.

                  The Company will not, and will not permit any of its
Restricted Subsidiaries to, directly or indirectly, enter into or permit to
exist any transaction or series of related transactions with any of its
Affiliates (an "AFFILIATE TRANSACTION"), other than

                  (x) Affiliate Transactions permitted under the next paragraph
         and

                  (y) Affiliate Transactions on terms that are no less favorable
         to the Company or such Restricted Subsidiary than those that might
         reasonably have been obtained in a comparable transaction at such time
         on an arm's-length basis from a Person that is not an Affiliate;

PROVIDED, HOWEVER, that for a transaction or series of related transactions with
an aggregate value of $1 million or more, such determination shall be made in
good faith by a majority of the disinterested members of the Board of the
Directors of the Company.

                  The foregoing restrictions shall not apply to

                  (1) reasonable fees and compensation paid to, and indemnity
         provided on behalf of, officers, directors, employees or consultants of
         the Company or any Subsidiary as determined in good faith by the
         Company's Board of Directors;

                  (2) transactions between or among the Company and any of its
         Restricted Subsidiaries so long as no portion of the minority interest
         in such Restricted Subsidiary is owned by an Affiliate of the Company
         (other than a Wholly Owned Subsidiary of the Company or directors or
         officers of such Subsidiary that hold stock of such Subsidiary to the
         extent that local law requires a resident of such jurisdiction to own
         stock of such company) or between or among such Restricted
         Subsidiaries; PROVIDED such transactions are not otherwise prohibited
         by this Note Agreement;

                  (3) any agreement, understanding or arrangement in effect as
         of the Issue Date or any amendment thereto or any transaction
         contemplated thereby (including pursuant to any amendment thereto) or
         in any replacement agreement thereto so long as any such amendment or
         replacement agreement is not more disadvantageous to the Holders in any
         material respect, taken as a whole, than the original agreement as in
         effect on the Issue Date;

<Page>

                                      -28-

                  (4) Permitted Investments and Restricted Payments permitted by
         this Note Agreement;

                  (5) commercially reasonable transactions between the Company
         or a Restricted Subsidiary and any Joint Venture in the Ordinary Course
         of Business that have been determined by the Board of Directors of the
         Company to comply with clause (y) of the first paragraph above; and

                  (6) any agreement, understanding or arrangement of Casual Male
         or its Subsidiaries as in effect on the Acquisition Closing Date or any
         amendment thereto or any transaction contemplated thereby (including
         pursuant to any amendment thereto) or in any replacement agreement
         thereto so long as any such amendment or replacement agreement is not
         more disadvantageous to the Holders in any material respect, taken as a
         whole, than the original agreement as in effect on the Acquisition
         Closing Date.

         SECTION 4.11. LIMITATION ON DIVIDEND AND OTHER PAYMENT
                       RESTRICTIONS AFFECTING SUBSIDIARIES.

                  The Company will not, and will not permit any of its
Restricted Subsidiaries to, directly or indirectly, create or otherwise cause or
permit to exist or become effective any consensual encumbrance or restriction on
the ability of any Restricted Subsidiary to

                  (a) pay dividends or make any other distributions on or in
         respect of its Capital Stock;

                  (b) make loans or advances to or pay any Indebtedness or other
         obligation owed to the Company or any other Restricted Subsidiary of
         the Company; or

                  (c) transfer any of its property or assets to the Company or
         any other Restricted Subsidiary of the Company,

                  except for such encumbrances or restrictions existing under or
         by reason of:

                  (1) applicable law and agreements with governmental
         authorities with respect to assets located in their jurisdiction,

                  (2) the Securities, this Note Agreement or any Guarantee,

                  (3) (A) customary provisions restricting (1) the subletting or
         assignment of any lease or (2) the transfer of copyrighted or patented
         materials, (B) provisions in agreements that restrict the assignment of
         such agreements or rights thereunder or (C) provisions of a customary
         nature contained in the terms of Capital Stock restricting the payment
         of dividends and the making of distributions on Capital Stock,

                  (4) any agreement or instrument governing Acquired
         Indebtedness, which encumbrance or restriction is not applicable to any
         Person, or the properties or assets of any Person, other than (a) the
         Person or the properties or assets of the Person so acquired (including
         the Capital Stock of such Person), or (b) any Restricted Subsidiary
         having no assets other than (i) the Person or the properties or assets
         of the Person so acquired (including the Capital Stock of such Person)
         and (ii) other assets having a fair market value not in excess of $2
         million, and, in each case, the monetary proceeds thereof,

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                                      -29-

                  (5) any agreement or instrument governing Senior Debt or
         Guarantor Senior Debt, including the New Credit Agreement,

                  (6) any agreement or instrument governing Indebtedness
         incurred pursuant to clause (12) of the definition of Permitted
         Indebtedness,

                  (7) restrictions on the transfer of assets subject to any Lien
         permitted under this Note Agreement,

                  (8) restrictions imposed by any agreement to sell assets not
         in violation of this Note Agreement to any Person pending the closing
         of such sale,

                  (9) customary rights of first refusal with respect to the
         Company's and its Restricted Subsidiaries' interests in their
         respective Restricted Subsidiaries and joint ventures,

                  (10) Indebtedness of a Person that was a Restricted Subsidiary
         at the time of incurrence and the incurrence of which Indebtedness is
         permitted by Section 4.03; provided that such encumbrances and
         restrictions apply only to such Restricted Subsidiary and its assets;
         and provided, further, that the Board of Directors of the Company has
         determined in good faith, at the time of creation of each such
         encumbrance or restriction, that such encumbrances and restrictions
         would not singly or in the aggregate have a materially adverse effect
         on the Holders of the Securities,

                  (11) the subordination of any Indebtedness owed by the Company
         or any of its Restricted Subsidiaries to the Company or any other
         Restricted Subsidiary to any other Indebtedness of the Company or any
         of its Restricted Subsidiaries; provided (A) such other Indebtedness is
         permitted under this Note Agreement and (B) the Board of Directors of
         the Company has determined in good faith, at the time of creation of
         each such encumbrance or restriction, that such encumbrances and
         restrictions would not singly or in the aggregate have a materially
         adverse effect on the Holders of the Securities, or

                  (12) an agreement effecting a refinancing, replacement or
         substitution of Indebtedness issued, assumed or incurred pursuant to an
         agreement referred to in clauses (2), (4) and (5) above or any other
         agreement evidencing Indebtedness permitted under this Note Agreement;
         provided, however, that the provisions relating to such encumbrance or
         restriction contained in any such refinancing, replacement or
         substitution agreement or any such other agreement are not less
         favorable to the Company in any material respect as determined by the
         Board of Directors of the Company than the provisions of the
         Indebtedness being refinanced.

         SECTION 4.12. LIMITATION ON LIENS.

                  The Company will not, and will not permit any of its
Restricted Subsidiaries to, directly or indirectly, create, incur, assume or
suffer to exist any Lien securing Indebtedness (other than Permitted Liens) upon
any property or asset now owned or hereafter acquired by them, or any income or
profits therefrom, or assign or convey any right to receive income therefrom;
PROVIDED, HOWEVER, that in addition to creating Permitted Liens on their
properties or assets, the Company and any of its Restricted Subsidiaries may
create any Lien securing Indebtedness upon any of their properties and assets
(including, but not limited to, any Capital Stock of its Subsidiaries) if the
Securities are equally and ratably secured.

<Page>

                                      -30-

         SECTION 4.13. CHANGE OF CONTROL.

                  (a) Upon the occurrence of a Change of Control, each Holder
will have the right to require that the Company repurchase all or a portion of
such Holder's Securities, at a purchase price equal to 101% of the principal
amount thereof, plus accrued and unpaid interest, if any, to the date of
repurchase.

                  (b) Prior to the mailing of the notice described in paragraph
(c) below, but in any event within 30 days following any Change of Control, the
Company covenants to use reasonable efforts in good faith to obtain the
requisite consents under the New Credit Agreement and all such other Senior Debt
to permit the purchase of the Securities as provided below.

The Company shall first comply with the covenant in the immediately preceding
sentence before it shall be required to repurchase Securities pursuant to the
provisions described below. The Company's failure to comply with this Section
4.13 if such consents are not obtained despite such efforts shall not constitute
an Event of Default.

                  (c) Within 10 days following the date upon which a Change of
Control occurred, the Company shall send, by first class mail, a notice to each
Holder, which notice shall govern the terms of the Change of Control offer to
purchase (the "CHANGE OF CONTROL OFFER"). The notice to the Holders shall
contain all instructions and materials necessary to enable such Holders to
tender Securities pursuant to the Change of Control Offer. Such notice shall
state:

                  (1) that the Change of Control Offer is being made pursuant to
         this Section 4.13 and that all Securities tendered and not withdrawn
         will be accepted for payment;

                  (2) the purchase price (including the amount of accrued
         interest) and the purchase date, which shall be no earlier than 30 days
         nor later than 45 days from the date such notice is mailed, other than
         as may be required by law (the "Change of Control Payment Date");

                  (3) that any Security not tendered will continue to accrue
         interest;

                  (4) that, unless the Company defaults in making payment
         therefor, any Security accepted for payment pursuant to the Change of
         Control Offer shall cease to accrue interest after the Change of
         Control Payment Date;

                  (5) that Holders electing to have a Security purchased
         pursuant to a Change of Control Offer will be required to surrender the
         Security, with the form entitled "Option of Holder to Elect Purchase"
         on the reverse of the Security completed, to the Company at the address
         specified in the notice prior to 5:00 p.m. New York City time on the
         third Business Day prior to the Change of Control Payment Date;

                  (6) that Holders will be entitled to withdraw their election
         if the Company receives, not later than 5:00 p.m. New York time on the
         second Business Day prior to the Change of Control Payment Date, a
         telegram, telex, facsimile transmission or letter setting forth the
         name of the Holder, the principal amount of the Securities the Holder
         delivered for purchase and a statement that such Holder is withdrawing
         his election to have such Security purchased;

                  (7) that Holders whose Securities are purchased only in part
         will be issued new Securities in a principal amount equal to the
         unpurchased portion of the Securities surrendered; and

<Page>

                                      -31-

                  (8) the circumstances and relevant facts regarding such Change
         of Control.

                  On or before the Change of Control Payment Date, the Company
shall accept for payment Securities or portions thereof tendered (in integral
multiples of $1,000) pursuant to the Change of Control Offer. The Company shall
promptly mail to the Holders of Securities so accepted payment in an amount
equal to the purchase price plus accrued and unpaid interest, if any, thereon to
the Change of Control Payment Date and shall promptly mail to such Holders new
Securities equal in principal amount to any unpurchased portion of the
Securities surrendered. Any Securities not so accepted shall be promptly mailed
by the Company to the Holder thereof.

                  The Company shall comply with the requirements of Rule 14e-1
under the Exchange Act and any other securities laws and regulations thereunder
to the extent, if any, such laws and regulations are applicable in connection
with the repurchase of Securities pursuant to a Change of Control Offer. To the
extent the provisions of any securities laws or regulations conflict with the
provisions under this Section 4.13, the Company shall comply with the applicable
securities laws and regulations and shall not be deemed to have breached its
obligations under this Section 4.13 by virtue thereof.

         SECTION 4.14. LIMITATION ON PREFERRED STOCK OF RESTRICTED
                       SUBSIDIARIES.

                  The Company will not permit any of its Restricted Subsidiaries
that are not Guarantors of the Securities to issue any Preferred Stock (other
than to the Company or to a Wholly Owned Restricted Subsidiary of the Company)
or permit any Person (other than the Company or a Wholly Owned Restricted
Subsidiary of the Company) to own any Preferred Stock of any Restricted
Subsidiary of the Company that is not a Guarantor of the Securities.

         SECTION 4.15. LIMITATION ON SALE AND LEASEBACK TRANSACTIONS.

                  The Company will not, and will not permit any Restricted
Subsidiary to, enter into any Sale and Leaseback Transaction; PROVIDED that the
Company and any Guarantor may enter into a Sale and Leaseback Transaction if

                  (1) the Company or such Guarantor could have

                        (a) incurred Indebtedness in an amount equal to the
                  Attributable Debt relating to such Sale and Leaseback
                  Transaction pursuant to Section 4.03 and

                        (b) incurred a Lien to secure such Indebtedness pursuant
                  to Section 4.12,

                  (2) the gross cash proceeds of such Sale and Leaseback
         Transaction are at least equal to the fair market value, as determined
         in good faith by the Board of Directors and set forth in an Officers'
         Certificate, of the property that is the subject of such Sale and
         Leaseback Transaction and

                  (3) the transfer of assets in such Sale and Leaseback
         Transaction is permitted by, and the Company or the applicable
         Guarantor applies the proceeds of such transaction in accordance with,
         Section 4.16.

         SECTION 4.16. LIMITATION ON ASSET SALES.

                  The Company will not, and will not permit any of its
Restricted Subsidiaries to, consummate an Asset Sale unless

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                                      -32-

                  (1) the Company or the applicable Restricted Subsidiary, as
         the case may be, receives consideration at the time of such Asset Sale
         at least substantially equal to the fair market value of the assets
         sold or otherwise disposed of (taking into account any associated
         liabilities and other considerations), as determined in good faith by
         the Company's Board of Directors, and

                  (2) upon the consummation of an Asset Sale, the Company shall
         apply directly or through a Restricted Subsidiary, or cause such
         Restricted Subsidiary to apply, the Net Cash Proceeds relating to such
         Asset Sale within 360 days of receipt thereof either (A) to repay
         Senior Debt (and in the case of any Indebtedness outstanding under a
         revolving credit facility, to permanently reduce the amounts that may
         be reborrowed thereunder by an equivalent amount), with the Net Cash
         Proceeds received in respect thereof, (B) to reinvest in Productive
         Assets, or (C) a combination of prepayment, reduction and investment
         permitted by the foregoing clauses (2)(A) and (2)(B);

On the 361st day after an Asset Sale or such earlier date, if any, as the Board
of Directors of the Company or of such Restricted Subsidiary determines not to
apply the Net Cash Proceeds relating to such Asset Sale as set forth in clauses
(2)(A), (2)(B) and (2)(C) of the preceding sentence (each, a "NET PROCEEDS OFFER
TRIGGER DATE"), such aggregate amount of Net Cash Proceeds which have not been
so applied on or before such Net Proceeds Offer Trigger Date as permitted in
clauses (2)(A), (2)(B) and (2)(C) of the preceding sentence (each, a "NET
PROCEEDS OFFER AMOUNT") shall be applied by the Company to make an offer to
repurchase (the "NET PROCEEDS OFFER") on a date (the "NET PROCEEDS OFFER PAYMENT
DATE") not less than 30 nor more than 45 days following the applicable Net
Proceeds Offer Trigger Date, from all Holders on a PRO RATA basis that amount of
Securities equal to the Net Proceeds Offer Amount multiplied by a fraction, the
numerator of which is the aggregate principal amount of Securities then
outstanding and the denominator of which is the sum of the aggregate principal
amount of Securities and Pari Passu Indebtedness then outstanding (the "PRO RATA
SHARE"), at a price equal to 100% of the principal amount of the Securities to
be repurchased, plus accrued interest to the date of repurchase.

                  Notwithstanding the foregoing, if a Net Proceeds Offer Amount
is less than $2 million, the application of the Net Cash Proceeds constituting
such Net Proceeds Offer Amount to a Net Proceeds Offer may be deferred until
such time as such Net Proceeds Offer Amount plus the aggregate amount of all Net
Proceeds Offer Amounts arising subsequent to the Net Proceeds Offer Trigger Date
relating to such initial Net Proceeds Offer Amount from all Asset Sales by the
Company and its Restricted Subsidiaries aggregates at least $2 million, at which
time the Company shall apply all Net Cash Proceeds constituting all Net Proceeds
Offer Amounts that have been so deferred to make a Net Proceeds Offer, the first
date the aggregate of all such deferred Net Proceeds Offer Amounts is equal to
$2 million or more being deemed to be a Net Proceeds Offer Trigger Date. To the
extent that the aggregate purchase price of Securities tendered pursuant to any
Net Proceeds Offer is less than the Pro Rata Share, the Company or any Guarantor
may use such amount for general corporate purposes. Upon completion of any Net
Proceeds Offer, the Net Proceeds Offer Amount shall be reset to zero.

                  Notwithstanding the first two paragraphs of this Section 4.16,
the Company and its Restricted Subsidiaries will be permitted to consummate an
Asset Sale without complying with such paragraphs to the extent

                  (1) any portion of the consideration for such Asset Sale
         constitutes Productive Assets

                  and

                  (2) such Asset Sale is for substantially fair market value, as
         determined in good faith by the Company's Board of Directors; PROVIDED
         that the fair market value of any consideration

<Page>

                                      -33-

         not constituting Productive Assets received by the Company or any of
         its Restricted Subsidiaries in connection with any Asset Sale permitted
         to be consummated under this paragraph shall constitute Net Cash
         Proceeds subject to the provisions of the first two paragraphs of this
         Section 4.16.

                  Notice of a Net Proceeds Offer shall be mailed, by first-class
mail, by the Company to Holders of Securities at their last registered address
not less than 15 days nor more than 30 days before the Net Proceeds Offer
Payment Date. The notice shall contain all instructions and materials necessary
to enable such Holders to tender Securities pursuant to the Net Proceeds Offer
and shall state the following terms:

                  (1) that the Net Proceeds Offer is being made pursuant to this
         Section 4.16, that all Securities tendered will be accepted for
         payment; PROVIDED, HOWEVER, that if the aggregate principal amount of
         Securities tendered in a Net Proceeds Offer plus accrued interest at
         the expiration of such offer exceeds the aggregate amount of the Net
         Proceeds Offer, the Company shall purchase the Securities on a PRO RATA
         basis and that the Net Proceeds Offer shall remain open for a period of
         20 Business Days or such longer period as may be required by law;

                  (2) the purchase price (including the amount of accrued
         interest) and the Net Proceeds Offer Payment Date (which shall be not
         less than 30 nor more than 45 days following the applicable Net
         Proceeds Offer Trigger Date;

                  (3) that any Security not tendered will continue to accrue
         interest;

                  (4) that, unless the Company defaults in making payment
         therefor, any Security accepted for payment pursuant to the Net
         Proceeds Offer shall cease to accrue interest after the Net Proceeds
         Offer Payment Date;

                  (5) that Holders electing to have a Security purchased
         pursuant to a Net Proceeds Offer will be required to surrender the
         Security, with the form entitled "Option of Holder to Elect Purchase"
         on the reverse of the Security completed, to the Company at the address
         specified in the notice prior to the close of business on the Business
         Day prior to the Net Proceeds Offer Payment Date;

                  (6) that Holders will be entitled to withdraw their election
         if the Company receives, not later than the second Business Day prior
         to the Net Proceeds Offer Payment Date, a telegram, telex, facsimile
         transmission or letter setting forth the name of the Holder, the
         principal amount of the Securities such Holder delivered for purchase
         and a statement that such Holder is withdrawing his election to have
         such Securities purchased; and

                  (7) that Holders whose Securities are purchased only in part
         will be issued new Securities in a principal amount equal to the
         unpurchased portion of the Securities surrendered.

                  If an offer is made to repurchase the Securities pursuant to a
Net Proceeds Offer, the Company will and will cause its Restricted Subsidiaries
to comply with all tender offer rules under state and federal securities laws,
including, but not limited to, Section 14(e) under the Exchange Act and Rule
14e-1 thereunder, to the extent applicable to such offer. To the extent that the
provisions of any securities laws or regulations conflict with this Section
4.16, the Company shall comply with the applicable securities laws and
obligations and shall not be deemed to have breached its obligations hereunder
by virtue thereof.

<Page>

                                      -34-

         SECTION 4.17. LIMITATION OF GUARANTEES BY RESTRICTED
                       SUBSIDIARIES.

                  Any Guarantee of the Securities by a Restricted Subsidiary
shall provide by its terms that it shall be automatically and unconditionally
released and discharged, without any further action required on the part of or
any Holder, upon:

                  (1) the unconditional release of such Restricted Subsidiary
         from its liability in respect of any and all other Indebtedness; or

                  (2) any sale or other disposition (by merger or otherwise) to
         any Person which is not a Restricted Subsidiary of the Company, of all
         of the Company's Capital Stock in, or all or substantially all of the
         assets of, such Restricted Subsidiary; provided, however, that

                        (a) such sale or disposition of such Capital Stock or
                  assets is otherwise in compliance with the terms of this Note
                  Agreement and

                        (b) such assumption, guarantee or other liability of
                  such Restricted Subsidiary has been released by the holders of
                  the other Indebtedness so guaranteed.

         SECTION 4.18. STAY, EXTENSION AND USURY LAWS.

                  The Company covenants (to the extent that it may lawfully do
so) that it will not at any time insist upon, plead, or in any manner whatsoever
claim or take the benefit or advantage of, any stay, extension or usury law
wherever enacted, now or at any time hereafter in force, which may affect the
covenants or the performance of this Note Agreement; and the Company (to the
extent it may lawfully do so) hereby expressly waives all benefit or advantage
of any such law, and covenants that it will not, by resort to any such law,
hinder, delay or impede the execution of any power herein granted to the
Holders, but will suffer and permit the execution of every such power as though
no such law had been enacted.

                                  ARTICLE FIVE

                              SUCCESSOR CORPORATION

         SECTION 5.01. MERGER, CONSOLIDATION AND SALE OF ASSETS.

                  The Company will not, in a single transaction or series of
related transactions, consolidate or merge with or into any Person, or sell,
assign, transfer, lease, convey or otherwise dispose of (or cause or permit any
Restricted Subsidiary of the Company to sell, assign, transfer, lease, convey or
otherwise dispose of) all or substantially all of the Company's assets
(determined on a consolidated basis for the Company and its Restricted
Subsidiaries) whether as an entirety or substantially as an entirety to any
Person unless:

                  (1) either (A) the Company or a Restricted Subsidiary of the
         Company shall be the surviving or continuing corporation or (B) the
         Person, if other than the Company or a Restricted Subsidiary of the
         Company, formed by such consolidation or into which the Company is
         merged or the Person which acquires by sale, assignment, transfer,
         lease, conveyance or other disposition of all or substantially all of
         the Company's assets determined on a consolidated basis for the Company
         and its Restricted Subsidiaries (the "Surviving Entity") (x) shall be a
         corporation or limited liability company organized and validly existing
         under the laws of the United States or

<Page>

                                      -35-

         any State thereof or the District of Columbia and (y) shall expressly
         assume the due and punctual payment of the principal of and premium, if
         any, and interest on all of the Securities and the performance of every
         covenant of the Securities or this Note Agreement on the part of the
         Company to be performed or observed;

                  (2) immediately before and immediately after giving effect to
         such transaction and the assumption contemplated by clause (1)(B)(y)
         above, including, without limitation, giving effect to any Indebtedness
         and Acquired Indebtedness incurred or anticipated to be incurred and
         any Lien granted in connection with or in respect of the transaction,
         no Default or Event of Default shall have occurred and be continuing;

                  (3) immediately after giving effect to such transaction the
         Consolidated Total Debt Ratio would not be greater than 3 to 1; and

                  (4) the Company or the Surviving Entity shall have delivered
         to the Holders an Officers' Certificate and an Opinion of Counsel
         stating that such consolidation, merger, sale, assignment, transfer,
         lease, conveyance or other disposition shall comply with the applicable
         provisions of this Note Agreement and that all conditions precedent in
         this Note Agreement relating to the execution of such transaction have
         been satisfied.

                  For purposes of the foregoing, the transfer, by lease,
assignment, sale or otherwise, in a single transaction or series of
transactions, of all or substantially all of the properties or assets of one or
more Restricted Subsidiaries of the Company, other than to a Wholly Owned
Subsidiary that is a Guarantor, the Capital Stock of which constitutes all or
substantially all of the properties and assets of the Company, shall be deemed
to be the transfer of all or substantially all of the properties and assets of
the Company.

                  Upon any consolidation, combination or merger or any transfer
of all or substantially all of the assets of the Company in accordance with the
foregoing, in which the Company is not the continuing corporation, the successor
Person formed by such consolidation or into which the Company is merged or to
which such conveyance, lease or transfer is made shall succeed to, and be
substituted for, and may exercise every right and power of, the Company under
this Note Agreement and the Securities with the same effect as if such surviving
entity had been named as such and the Company shall be relieved of all of its
obligations and duties under this Note Agreement and the Securities.

                  Each Guarantor, other than any Guarantor whose Guarantee is to
be released in accordance with the terms of the Guarantee and this Note
Agreement, will not, and the Company will not cause or permit any Guarantor to,
consolidate with or merge with or into any Person other than the Company or any
other Guarantor unless:

                  (1) the entity formed by or surviving any such consolidation
         or merger, if other than the Guarantor, or to which such sale, lease,
         conveyance or other disposition shall have been made is a corporation
         organized and existing under the laws of the United States or any State
         thereof or the District of Columbia;

                  (2) such entity assumes all of the obligations of the
         Guarantor on the Guarantee; and

                  (3) immediately after giving effect to such transaction, no
         Default or Event of Default shall have occurred and be continuing; and

<Page>

                                      -36-

                  (4) immediately after giving effect to such transaction the
         Consolidated Total Debt Ratio would not be greater than 3 to 1.

                  Any merger or consolidation of a Guarantor with and into the
Company, with the Company being the surviving entity, or another Guarantor that
is a Wholly Owned Restricted Subsidiary of the Company need not comply with this
Section 5.01.

         SECTION 5.02. SUCCESSOR CORPORATION SUBSTITUTED.

                  Upon any such consolidation, merger, conveyance, lease or
transfer of all or substantially all of the assets of the Company in accordance
with Section 5.01, in which the Company is not the surviving Person, the
successor Person formed by such consolidation or into which the Company is
merged or to which such conveyance, lease or transfer is made will succeed to,
and be substituted for, and may exercise every right and power of, the Company
under this Note Agreement and the Securities with the same effect as if such
successor had been named as the Company therein. When a successor corporation
assumes all of the Obligations of the Company hereunder and under the Securities
and agrees to be bound hereby and thereby, the predecessor shall be released
from such Obligations.

                                   ARTICLE SIX

                              DEFAULT AND REMEDIES

         SECTION 6.01. EVENTS OF DEFAULT.

                  An "Event of Default" means any of the following events:

                  (a) the failure to pay interest on any Securities when the
         same becomes due and payable and the default continues for a period of
         15 days;

                  (b) the failure to pay the principal on any Securities, when
         such principal becomes due and payable, at maturity, upon redemption or
         otherwise, including the failure to make a payment to purchase
         Securities tendered pursuant to a Change of Control Offer or a Net
         Proceeds Offer;

                  (c) a default in the observance or performance of any other
         covenant or agreement contained in this Note Agreement, which default,
         in the case of any default which is susceptible of cure, continues for
         a period of 30 days after the Company receives written notice
         specifying the default, and demanding that such default be remedied,
         from the Holders of at least 25% in outstanding principal amount of the
         Securities;

                  (d) the failure to pay at final maturity, giving effect to any
         extensions thereof, the principal amount of any Indebtedness of the
         Company or any Restricted Subsidiary of the Company, other than
         intercompany Indebtedness, and such failure continues for a period of
         20 days or more, or the acceleration of the final stated maturity of
         any such Indebtedness, which acceleration is not rescinded, annulled or
         otherwise cured within 10 days of receipt by the Company or such
         Restricted Subsidiary of notice of any such acceleration, if, in either
         case, the aggregate principal amount of such Indebtedness, together
         with the principal amount of any other such Indebtedness in default for
         failure to pay principal at final maturity or which has been
         accelerated, in each case with respect to which the time periods
         described above have passed, aggregates $5 million or more at any time;

<Page>

                                      -37-

                  (e) one or more judgments in an aggregate amount in excess of
         $1 million shall have been rendered against the Company or any of its
         Restricted Subsidiaries and such judgments remain undischarged, unpaid
         or unstayed for a period of 60 days;

                  (f) the Company or any of its Restricted Subsidiaries (i)
         admits in writing its inability to pay its debts generally as they
         become due, (ii) commences a voluntary case or proceeding under any
         Bankruptcy Law with respect to itself, (iii) consents to the entry of a
         judgment, decree or order for relief against it in an involuntary case
         or proceeding under any Bankruptcy Law, (iv) consents to the
         appointment of a Custodian of it or for substantially all of its
         property, (v) consents to or acquiesces in the institution of a
         bankruptcy or an insolvency proceeding against it, (vi) makes a general
         assignment for the benefit of its creditors or (vii) takes any
         partnership or corporate action, as the case may be, to authorize or
         effect any of the foregoing;

                  (g) a court of competent jurisdiction enters a judgment,
         decree or order for relief in respect of the Company or any of its
         Restricted Subsidiaries in an involuntary case or proceeding under any
         Bankruptcy Law, which shall (i) approve as properly filed a petition
         seeking reorganization, arrangement, adjustment or composition in
         respect of the Company or any of its Significant Subsidiaries, (ii)
         appoint a custodian of the Company or any of its Significant
         Subsidiaries or for substantially all of any of their property or (iii)
         order the winding-up or liquidation of its affairs; and such judgment,
         decree or order shall remain unstayed and in effect for a period of 60
         consecutive days;

                  (h) substantially simultaneously with or within 30 days
         following the consummation of the Casual Male Acquisition and the
         Transactions to be consummated concurrently therewith, the Company
         fails to issue Additional Capital Stock for net cash proceeds of at
         least $50 million;

                  (i) any Subsidiary Guarantee of any Restricted Subsidiary of
         the Company shall for any reason cease to be, or shall be asserted in
         writing by any responsible officer of such Restricted Subsidiary of the
         Company or the Company not to be, in full force and effect (except as
         may be otherwise contemplated by this Note Agreement) or enforceable in
         accordance with its terms;

                  (j) the failure to deposit cash with Casual Male or otherwise
         substantially in accordance with the Bidding Procedures Order on or
         about the Bid Date in substantially the amount and at substantially the
         time required pursuant to the terms of the Bidding Procedures Order,
         and the default continues for a period of 5 days; or

                  (k) the representations and warranties of the Company set
         forth pursuant to Section 11.09 shall not have been true and correct on
         and as of May 14, 2002 (except those representations and warranties
         which specify a specific date) except for any inaccuracies or breaches
         of such representations and warranties which, either individually or in
         the aggregate, have not caused and are not reasonably likely to cause a
         Material Adverse Effect (as defined in Annex A hereto).

         SECTION 6.02. ACCELERATION.

                  If an Event of Default (other than an Event of Default
specified in Section 6.01(f) or (g)) shall occur and be continuing, the Holders
of at least 25% in principal amount of outstanding Securities may declare the
principal of and accrued and unpaid interest on all the Securities to be due and
payable by notice in writing to the Company specifying the respective Event of
Default and that it is a "notice of acceleration", and the same shall become
immediately due and payable. If an Event of Default specified in Section 6.01(f)
or (g) occurs and is continuing, then all unpaid principal of and premium, if
any, and

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                                      -38-

accrued and unpaid interest on all of the outstanding Securities shall IPSO
FACTO become and be immediately due and payable without any declaration or other
act on the part of any Holder.

                  At any time after a declaration of acceleration with respect
to the Securities as described in the preceding paragraph, the Holders of at
least 75% in principal amount of the Securities may rescind and cancel such
declaration and its consequences (i) if the rescission would not conflict with
any judgment or decree, (ii) if all existing Events of Default have been cured
or waived except nonpayment of principal or interest that has become due solely
because of the acceleration, (iii) to the extent the payment of such interest is
lawful, interest on overdue installments of interest and overdue principal,
which has become due otherwise than by such declaration of acceleration, has
been paid, and (iv) in the event of the cure or waiver of an Event of Default of
the type described in clause (f) or (g) of Section 6.01, the Holder shall have
received an Officers' Certificate that such Event of Default has been cured or
waived. No such rescission shall affect any subsequent Default or impair any
right consequent thereto.

         SECTION 6.03. Other Remedies.

                  If an Event of Default occurs and is continuing, the Holders
of not less than 25% in principal amount of the outstanding Securities may
pursue any available remedy by proceeding at law or in equity to collect the
payment of principal of or interest on the Securities or to enforce the
performance of any provision of the Securities, this Note Agreement or the
Guarantees. No remedy is exclusive of any other remedy. All available remedies
are cumulative to the extent permitted by law.

         SECTION 6.04. WAIVER OF PAST DEFAULTS.

                  The Holders of not less than 75% in principal amount of the
outstanding Securities by written notice to the Company may waive an existing
Default or Event of Default and its consequences, except a Default in the
payment of principal of or interest on any Security as specified in clauses (a)
and (b) of Section 6.01. When a Default or Event of Default is waived, it is
cured and ceases.

         SECTION 6.05. CONTROL.

                  The Holders of not less than 75% in principal amount of the
outstanding Securities may direct the time, method and place of conducting any
proceeding for any remedy available to the Holders or exercising any trust or
power conferred on it.

         SECTION 6.06. RIGHTS OF HOLDERS TO RECEIVE PAYMENT.

                  Notwithstanding any other provision of this Note Agreement,
the right of any Holder to receive payment of principal of and interest on a
Security, on or after the respective due dates expressed in such Security, or to
bring suit for the enforcement of any such payment on or after such respective
dates, shall not be impaired or affected without the written consent of the
Holder.

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                                      -39-

                                  ARTICLE SEVEN

                       AMENDMENTS, SUPPLEMENTS AND WAIVERS

         SECTION 7.01. WITHOUT CONSENT OF HOLDERS.

                  The Company may amend or supplement this Note Agreement or the
Securities without notice to or consent of any Securityholder:

                  (1) to evidence the succession in accordance with Article Five
         hereof of another Person to the Company and the assumption by any such
         successor of the covenants of the Company herein, and in the
         Securities; or

                  (2) to make any change that would provide any additional
         benefit or rights to the Securityholders or that does not adversely
         affect the rights of any Securityholder in any material respect;

PROVIDED that the Company has delivered to the Holders an Officers' Certificate,
stating that such amendment or supplement complies with the provisions of this
Section 7.01. After an amendment under this Section 7.01 becomes effective, the
Company shall mail to Holders a notice briefly describing such amendment.

         SECTION 7.02. WITH CONSENT OF HOLDERS.

                  The Company, with the written consent of the Holder or Holders
of at least 75% in aggregate principal amount unless a greater principal amount
is specified herein of the outstanding Securities, may amend or supplement this
Note Agreement, the Securities, without notice to any other Securityholders. The
Holder or Holders of at least 75% in aggregate principal amount unless a greater
principal amount is specified herein of the outstanding Securities may waive
compliance by the Company with any provision of this Note Agreement or the
Securities without notice to any other Securityholder. Without the consent of
each Securityholder affected, however, no amendment, supplement or waiver,
including a waiver pursuant to Section 6.04, may:

                  (1) reduce the amount of Securities whose Holders must consent
         to an amendment, supplement or waiver;

                  (2) reduce the rate of or change or have the effect of
         changing the time for payment of interest, including defaulted
         interest, on any Securities;

                  (3) reduce the principal of or change or have the effect of
         changing the fixed maturity of any Securities, or change the date on
         which any Securities may be subject to redemption or repurchase, or
         reduce the redemption or repurchase price therefor;

                  (4) make any Securities payable in money other than that
         stated in the Securities;

                  (5) make any change in provisions of this Note Agreement
         protecting the right of each Holder to receive payment of principal of
         and interest on such Security on or after the due date thereof or to
         bring suit to enforce such payment, or permitting Holders of at least
         75% in principal amount of the Securities to waive Defaults or Events
         of Default (other than Defaults or Events of Default with respect to
         the payment of principal of or interest on the Securities); or

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                                      -40-

                  (6) modify or change any provision of this Note Agreement or
         the related definitions that adversely affects the ranking of the
         Securities or the Guarantees.

                  In addition, following the occurrence of a Change of Control,
as the case may be, without the consent of Holders of at least 75% of the
outstanding aggregate principal amount of Securities, an amendment, supplement
or waiver may not make any change to the Company's obligations to make and
consummate the required Change of Control Offer or modify any of the provisions
or definitions with respect thereto.

                  It shall not be necessary for the consent of the Holders under
this Section 7.02 to approve the particular form of any proposed amendment,
supplement or waiver, but it shall be sufficient if such consent approves the
substance thereof.

                  After an amendment, supplement or waiver under this Section
7.02 becomes effective, the Company shall mail to the Holders affected thereby a
notice briefly describing the amendment, supplement or waiver. Any failure of
the Company to mail such notice, or any defect therein, shall not, however, in
any way impair or affect the validity of any such amendment, supplement, waiver
or supplemental indenture.

         SECTION 7.03. REVOCATION AND EFFECT OF CONSENTS.

                  Until an amendment, waiver or supplement becomes effective, a
consent to it by a Holder is a continuing consent by the Holder and every
subsequent Holder of a Security or portion of a Security that evidences the same
debt as the consenting Holder's Security, even if notation of the consent is not
made on any Security. However, any such Holder or subsequent Holder may revoke
the consent as to his Security or portion of his Security by notice to the
Company received before the Holders of the requisite principal amount of
Securities have consented (and not theretofore revoked such consent) to the
amendment, supplement or waiver.

                  The Company may, but shall not be obligated to, fix a record
date for the purpose of determining the Holders entitled to consent to any
amendment, supplement or waiver. If a record date is fixed, then notwithstanding
the last sentence of the immediately preceding paragraph, those Persons who were
Holders at such record date (or their duly designated proxies), and only those
Persons, shall be entitled to revoke any consent previously given, whether or
not such Persons continue to be Holders after such record date. No such consent
shall be valid or effective for more than 90 days after such record date.

         SECTION 7.04. NOTATION ON OR EXCHANGE OF SECURITIES.

                  If an amendment, supplement or waiver changes the terms of a
Security, the Company may require the Holder of the Security to deliver it to
the Company. The Company may place an appropriate notation on the Security about
the changed terms and return it to the Holder. Alternatively, if the Company so
determines, the Company in exchange for the Security shall issue a new Security
that reflects the changed terms. Failure to make the appropriate notation or
issue a new Security shall not affect the validity and effect of such amendment,
supplement or waiver.

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                                      -41-

                                  ARTICLE EIGHT

                           SUBORDINATION OF SECURITIES

         SECTION 8.01. SECURITIES SUBORDINATED TO SENIOR DEBT.

                  The Company covenants and agrees, and each Holder of the
Securities by acceptance thereof likewise covenants and agrees, that all
Securities shall be issued subject to the provisions of this Article Eight; and
each person holding any Security, whether upon original issue or upon transfer,
assignment or exchange thereof, accepts and agrees that all payments of the
principal of, or premium, if any, and interest on the Securities by the Company
shall, to the extent and in the manner set forth in this Article Eight, be
subordinated and junior in right of payment to the prior payment in full in cash
of all amounts payable under Senior Debt, whether outstanding on the Issue Date
or thereafter incurred.

         SECTION 8.02. NO PAYMENT ON SECURITIES IN CERTAIN
                       CIRCUMSTANCES.

                  (a) No direct or indirect payment by or on behalf of the
Company of principal of, or premium, if any, and interest on the Securities,
whether pursuant to the terms of the Securities, upon acceleration, pursuant to
a Change of Control Offer or Net Proceeds Offer or otherwise, shall be made to
the Holders of Securities if (i) a default in the payment of the principal of,
or premium, if any, and interest on Designated Senior Debt occurs and is
continuing beyond any applicable period of grace or (ii) any other default
occurs and is continuing with respect to Designated Senior Debt that permits
holders of the Designated Senior Debt as to which such default relates to
accelerate its maturity and the Holder receives a written notice of such other
default (a "PAYMENT BLOCKAGE NOTICE") from the Company or the holders of any
Designated Senior Debt (with a copy to the Company) until all Obligations with
respect to such Designated Senior Debt are paid in full; payments on the
Securities shall be resumed (x) in the case of a payment default, upon the date
on which such default is cured or waived and (y) in case of a nonpayment
default, the earlier of the date on which such nonpayment default is cured or
waived or 179 days after the date on which the applicable Payment Blockage
Notice is received by the Holder (such period being referred to herein as the
"PAYMENT BLOCKAGE PERIOD"), unless the maturity of any Designated Senior Debt
has been accelerated (and written notice of such acceleration has been received
by the Company).

                  Notwithstanding anything herein or in the Securities to the
contrary, (x) in no event shall a Payment Blockage Period extend beyond 179 days
from the date the Payment Blockage Notice in respect thereof was given and (y)
not more than one Payment Blockage Period may be commenced with respect to the
Securities during any period of 360 consecutive days. No nonpayment default that
existed or was continuing on the date of delivery of any Payment Blockage Notice
shall be, or be made, the basis for a subsequent Payment Blockage Notice (it
being understood that any subsequent action, or any breach of any covenant for a
period commencing after the date of receipt of such Payment Blockage Notice,
that, in either case, would give rise to such a default pursuant to any
provisions under which a default previously existed or was continuing shall
constitute a new default for this purpose).

                  (b) In the event that, notwithstanding the foregoing, any
payment shall be received by any Holder when such payment is prohibited by
Section 8.02(a), such payment shall be held in trust for the benefit of, and
shall be paid over or delivered to, the holders of Designated Senior Debt or
their respective representatives, or to the trustee or trustees under any
indenture pursuant to which any of such Designated Senior Debt may have been
issued, as their respective interests may appear, but only to the extent that,
upon notice to the holders of Designated Senior Debt that such prohibited
payment has been made, the holders of the Designated Senior Debt (or their
representative or representatives or a trustee) notify the Company and the
Holders in writing of the amounts then due and owing on the Designated

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                                      -42-

Senior Debt, if any, and only the amounts specified in such notice shall be paid
to the holders of Designated Senior Debt.

                  (c) Nothing herein shall prohibit the Company from making
scheduled payments of interest on the Securities at the times and in the amounts
originally provided for herein so long as no default or event of default on
Designated Senior Debt has occurred and is continuing.

         SECTION 8.03. PAYMENT OVER OF PROCEEDS UPON DISSOLUTION, ETC.

                  (a) Upon any payment or distribution of assets or securities
of the Company of any kind or character, whether in cash, property or
securities, upon any dissolution or winding-up or liquidation or reorganization
of the Company, whether voluntary or involuntary or in bankruptcy, insolvency,
receivership or other similar proceedings, an assignment for the benefit of
creditors or any marshaling of the Company's assets, the holders of Senior Debt
shall be entitled to receive payment in full in cash of all Obligations due in
respect of such Senior Debt (including interest after the commencement of any
proceeding at the rate specified in the applicable Senior Debt) before the
Holders of the Securities shall be entitled to receive any payment by the
Company of the principal of, or premium, if any, and interest on the Securities,
or any payment by the Company to acquire any of the Securities for cash,
property or securities, or any distribution with respect to the Securities of
any cash, property or securities (except that the Holders may receive and retain
Permitted Junior Securities). Before any payment (other than Permitted Junior
Securities) may be made by, or on behalf of, the Company of the principal of, or
premium, if any, and interest on the Securities upon any such dissolution or
winding-up or liquidation or reorganization, any payment or distribution of
assets or securities of the Company of any kind or character, whether in cash,
property or securities, to which the Holders of the Securities would be
entitled, but for the subordination provisions of this Note Agreement, shall be
made by the Company or by any receiver, trustee in bankruptcy, liquidating
trustee, agent or other Person making such payment or distribution, directly to
the holders of the Senior Debt (to such holders as their interests may appear,
on the basis of the respective amounts of Senior Debt held by such holders) or
their representatives or agent or agents under any agreement or indenture
pursuant to which any of such Senior Debt may have been issued, as their
respective interests may appear, to the extent necessary to pay all such Senior
Debt in full in cash after giving effect to any prior or concurrent payment,
distribution or provision therefor to or for the holders of such Senior Debt.

                  (b) In the event that, notwithstanding the foregoing provision
prohibiting such payment or distribution, any payment or distribution of assets
or securities of the Company of any kind or character, whether in cash, property
or securities, shall be received by any Holder of Securities at a time when such
payment or distribution is prohibited by Section 8.03(a) and before all
obligations in respect of Senior Debt are paid in full in cash, or payment
provided for, such payment or distribution shall be received and held in trust
for the benefit of, and shall be paid over or delivered to, the holders of
Senior Debt (to such holders as their interests may appear, on the basis of the
respective amounts of Senior Debt held by such holders) or their respective
representatives, or to the trustee or trustees or agent or agents under any
indenture pursuant to which any of such Senior Debt may have been issued, as
their respective interests may appear, for application to the payment of Senior
Debt remaining unpaid until all such Senior Debt has been paid in full in cash
after giving effect to any prior or concurrent payment, distribution or
provision therefor to or for the holders of such Senior Debt.

                  The consolidation of the Company with, or the merger of the
Company with or into, another corporation or the liquidation or dissolution of
the Company following the conveyance or transfer of its property as an entirety,
or substantially as an entirety, to another corporation upon the terms and
conditions provided in Article Five shall not be deemed a dissolution,
winding-up, liquidation or

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                                      -43-

reorganization for the purposes of this Section 8.03 if such other corporation
shall, as a part of such consolidation, merger, conveyance or transfer, comply
with the conditions stated in Article Five.

         SECTION 8.04. SUBROGATION.

                  Upon the payment in full in cash of all Senior Debt, or
provision for payment, the Holders of the Securities shall be subrogated
(equally and ratably with the holders of all Indebtedness of the Company which
by its terms is not superior in right of payment to the Securities and which
ranks on a parity with the Securities) to the rights of the holders of Senior
Debt to receive payments or distributions of cash, property or securities of the
Company made on such Senior Debt until the principal of, or premium, if any, and
interest on the Securities shall be paid in full in cash; and, for the purposes
of such subrogation, no payments or distributions to the holders of the Senior
Debt of any cash, property or securities to which the Holders of the Securities
would be entitled except for the provisions of this Article Eight, and no
payment over pursuant to the provisions of this Article Eight to the holders of
Senior Debt by Holders of the Securities shall, as between the Company, its
creditors other than holders of Senior Debt, and the Holders of the Securities,
be deemed to be a payment by the Company to or on account of the Senior Debt. It
is understood that the provisions of this Article Eight are and are intended
solely for the purpose of defining the relative rights of the Holders of the
Securities, on the one hand, and the holders of the Senior Debt, on the other
hand.

                  If any payment or distribution to which the Holders of the
Securities would otherwise have been entitled but for the provisions of this
Article Eight shall have been applied, pursuant to the provisions of this
Article Eight, to the payment of all amounts payable under Senior Debt, then and
in such case, the Holders of the Securities shall be entitled to receive from
the holders of such Senior Debt any payments or distributions received by such
holders of Senior Debt in excess of the amount required to make payment in full,
or provision for payment, of such Senior Debt.

         SECTION 8.05. OBLIGATIONS OF COMPANY UNCONDITIONAL.

                  Nothing contained in this Article Eight or elsewhere in this
Note Agreement or in the Securities is intended to or shall impair, as between
the Company and the Holders of the Securities, the obligation of the Company,
which is absolute and unconditional, to pay to the Holders of the Securities the
principal of, or premium, if any, and interest on the Securities as and when the
same shall become due and payable in accordance with their terms, or is intended
to or shall affect the relative rights of the Holders of the Securities and
creditors of the Company other than the holders of the Senior Debt, nor shall
anything herein or therein prevent the Holder of any Security from exercising
all remedies otherwise permitted by applicable law upon default under this Note
Agreement, subject to the rights, if any, under this Article Eight of the
holders of the Senior Debt in respect of cash, property or securities of the
Company received upon the exercise of any such remedy.

                  Without limiting the generality of the foregoing, nothing
contained in this Article Eight shall restrict the right of the Holders of
Securities to take any action to declare the Securities to be due and payable
prior to their stated maturity pursuant to Article Six or to pursue any rights
or remedies hereunder; PROVIDED, HOWEVER, that all Senior Debt then due and
payable shall first be paid in full before the Holders of the Securities are
entitled to receive any direct or indirect payment from the Company of principal
of, or premium, if any, and interest on the Securities.

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                                      -44-

         SECTION 8.06. RELIANCE ON JUDICIAL ORDER OR CERTIFICATE OF LIQUIDATING
                       AGENT.

                  Upon any payment or distribution of assets or securities
referred to in this Article Eight, the Holders of the Securities shall be
entitled to rely upon any order or decree made by any court of competent
jurisdiction in which bankruptcy, dissolution, winding-up, liquidation or
reorganization proceedings are pending, or upon a certificate of the receiver,
trustee in bankruptcy, liquidating trustee, agent or other person making such
payment or distribution, delivered to the Holders of the Securities for the
purpose of ascertaining the Persons entitled to participate in such
distribution, the holders of the Senior Debt and other Indebtedness of the
Company, the amount thereof or payable thereon, the amount or amounts paid or
distributed thereon and all other facts pertinent thereto or to this Article
Eight.

         SECTION 8.07. SUBORDINATION RIGHTS NOT IMPAIRED BY ACTS OR OMISSIONS OF
                       THE COMPANY OR HOLDERS OF SENIOR DEBT.

                  No right of any present or future holders of any Senior Debt
to enforce subordination as provided herein shall at any time in any way be
prejudiced or impaired by any act or failure to act on the part of the Company
or by any act or failure to act, in good faith, by any such holder, or by any
noncompliance by the Company or the holders of the Senior Debt with the terms of
this Note Agreement, regardless of any knowledge thereof which any such holder
may have or otherwise be charged with. The provisions of this Article Eight are
intended to be for the benefit of, and shall be enforceable directly by, the
holders of Senior Debt.

         SECTION 8.08. THIS ARTICLE NOT TO PREVENT EVENTS OF DEFAULT.

                  The failure to make a payment on account of principal of, or
premium, if any, and interest on the Securities by reason of any provision of
this Article Eight shall not be construed as preventing the occurrence of an
Event of Default specified in clause (a) or (b) of Section 6.01.

         SECTION 8.09. NO WAIVER OF SUBORDINATION PROVISIONS.

                  Without in any way limiting the generality of Section 8.07,
the holders of Senior Debt may, at any time and from time to time, without the
consent of or notice to the Holders of the Securities, without incurring
responsibility to the Holders of the Securities and without impairing or
releasing the subordination provided in this Article Eight or the obligations
hereunder of the Holders of the Securities to the holders of Senior Debt, do any
one or more of the following: (a) change the manner, place or terms of payment
or extend the time of payment of, or renew or alter, Senior Debt or any
instrument evidencing the same or any agreement under which Senior Debt is
outstanding or secured; (b) sell, exchange, release or otherwise deal with any
property pledged, mortgaged or otherwise securing Senior Debt; (c) release any
Person liable in any manner for the collection of Senior Debt; and (d) exercise
or refrain from exercising any rights against the Company and any other Person.

         SECTION 8.10. ACCELERATION OF SECURITIES.

                  If payment of the Securities is accelerated because of an
Event of Default, the Company shall promptly notify holders of the Senior Debt
of the acceleration.

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                                      -45-

                                  ARTICLE NINE

                             GUARANTEE OF SECURITIES

         SECTION 9.01. UNCONDITIONAL GUARANTEE.

                  Each of the Guarantors hereby, jointly and severally,
absolutely, irrevocably and unconditionally guarantees, on a senior subordinated
basis as hereinafter set forth (such guarantee to be referred to herein as a
"GUARANTEE") to each Holder of a Security that: (a) the principal of, premium,
if any, and interest on the Securities shall be promptly paid in full when due
(subject to any applicable grace periods) whether at maturity, upon redemption
at the option of Holders pursuant to the provisions of the Securities relating
thereto, by acceleration or otherwise, and interest on the overdue principal and
(to the extent permitted by law) interest, if any, on the Securities and all
other Obligations of the Company to the Holders hereunder or thereunder and all
other Obligations shall be promptly paid in full or performed, all in accordance
with the terms hereof and thereof; and (b) in case of any extension of time of
payment or renewal of any Securities or any of such other Obligations, the same
shall be promptly paid in full when due or performed in accordance with the
terms of the extension or renewal, subject to any applicable grace period,
whether at maturity, by acceleration or otherwise. Failing payment when due of
any amount so guaranteed, or failing performance of any other obligation of the
Company to the Holders under this Note Agreement or under the Securities, for
whatever reason, each Guarantor shall be obligated to pay, or to perform or
cause the performance of, the same immediately. An Event of Default under this
Note Agreement or the Securities shall constitute an event of default under this
Guarantee, and shall entitle the Holders of Securities to accelerate the
Obligations of the Guarantors hereunder in the same manner and to the same
extent as the Obligations of the Company.

                  Each of the Guarantors hereby agrees that its Obligations
hereunder shall be absolute, irrevocable and unconditional, irrespective of the
validity, regularity or enforceability of the Securities or this Note Agreement,
the absence of any action to enforce the same, any waiver or consent by any
Holder of the Securities with respect to any provisions hereof or thereof, any
release of any other Guarantor, the recovery of any judgment against the
Company, any action to enforce the same, whether or not a Guarantee is affixed
to any particular Security, or any other circumstance which might otherwise
constitute a legal or equitable discharge or defense of a Guarantor. Each of the
Guarantors hereby waives the benefit of diligence, presentment, demand of
payment, filing of claims with a court in the event of insolvency or bankruptcy
of the Company, any right to require a proceeding first against the Company,
protest, notice and all demands whatsoever and covenants that its Guarantee
shall not be discharged except by complete performance of the Obligations
contained in the Securities, this Note Agreement and this Guarantee. This
Guarantee is a guarantee of payment and not of collection. If any Holder is
required by any court or otherwise to return to the Company or to any Guarantor,
or any custodian, trustee, liquidator or other similar official acting in
relation to the Company or such Guarantor, any amount paid by the Company or
such Guarantor to such Holder, this Guarantee, to the extent theretofore
discharged, shall be reinstated in full force and effect. Each Guarantor further
agrees that, as between it, on the one hand, and the Holders of Securities on
the other hand, (a) the maturity of the Obligations guaranteed hereby may be
accelerated as provided in Article Six for the purposes of this Guarantee,
notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the Obligations guaranteed hereby, and (b) in the
event of any acceleration of such Obligations as provided in Article Six hereof,
such Obligations (whether or not due and payable) shall forthwith become due and
payable by the Guarantors for the purpose of this Guarantee.

<Page>

                                      -46-

                  No stockholder, officer, director, employee or incorporator,
past, present or future, or any Guarantor, as such, shall have any personal
liability under this Guarantee by reason of his, her or its status as such
stockholder, officer, director, employee or incorporator.

                  Each Guarantor that makes a payment or distribution under its
Guarantee shall be entitled to a contribution from each other Guarantor in an
amount PRO RATA, based on the net assets of each Guarantor, determined in
accordance with GAAP.

         SECTION 9.02. LIMITATIONS ON GUARANTEES.

                  The Obligations of each Guarantor under its Guarantee are
limited to the maximum amount which, after giving effect to all other contingent
and fixed liabilities of such Guarantor and after giving effect to any
collections from or payments made by or on behalf of any other Guarantor in
respect of the Obligations of such other Guarantor under its Guarantee or
pursuant to its contribution Obligations under this Note Agreement, will result
in the Obligations of such Guarantor under the Guarantee not constituting a
fraudulent conveyance or fraudulent transfer under any laws of the United
States, any state or territory of the United States or the District of Columbia.

         SECTION 9.03. EXECUTION AND DELIVERY OF GUARANTEE.

                  To evidence the Guarantee set forth in Section 9.01, each
Guarantor hereby agrees that a notation of such Guarantee, substantially in the
form of EXHIBIT B hereto, shall be endorsed on each Security. Such Guarantee
shall be executed on behalf of each Guarantor by either manual or facsimile
signature of two Officers of each Guarantor, who, in each case, shall have been
duly authorized to so execute by all requisite corporate action. The validity
and enforceability of any Guarantee shall not be affected by the fact that it is
not affixed to any particular Security.

                  Each of the Guarantors hereby agrees that its Guarantee set
forth in Section 11.01 shall remain in full force and effect (unless released in
accordance with Section 11.04) notwithstanding any failure to endorse on each
Security a notation of such Guarantee.

         SECTION 9.04. RELEASE OF A GUARANTOR.

                  (a) Upon the sale or disposition of all of the Capital Stock
of a Guarantor by the Company, or upon the consolidation or merger of a
Guarantor with or into any Person in compliance with Article Five (in each case,
other than to the Company or an Affiliate of the Company), or if any Guarantor
is dissolved or liquidated in accordance with this Note Agreement, such
Guarantor's Guarantee shall be released, and such Guarantor and each Subsidiary
of such Guarantor that is also a Guarantor shall be deemed released from all
Obligations under this Note Agreement and the Securities without any further
action required on the part of the Company or any Holder. Any Guarantor not so
released or the entity surviving such Guarantor, as applicable, shall remain or
be liable under its Guarantee as provided in this Article Nine. In addition, a
Guarantor's Guarantee will also be released and such Guarantor will also be
released from all Obligations under this Note Agreement and the Securities if
such Guarantor is released from any and all guarantees of other Indebtedness of
the Company.

                  (b) The Holders shall deliver an appropriate instrument
evidencing the release of a Guarantor upon receipt of a request by the Company
or such Guarantor accompanied by an Officers' Certificate certifying as to
compliance with this Section 9.04.

<Page>

                                      -47-

                  The Holders shall execute any documents reasonably requested
by the Company or a Guarantor in order to evidence the release of such Guarantor
from its Obligations under its Guarantee endorsed on the Securities and under
this Article Nine.

                  Except as set forth in Articles Four and Five and this Section
9.04, nothing contained in this Note Agreement or in any of the Securities shall
prevent any consolidation or merger of a Guarantor with or into the Company or
another Guarantor or shall prevent any sale or conveyance of the property of a
Guarantor as an entirety or substantially as an entirety to the Company or
another Guarantor.

         SECTION 9.05. WAIVER OF SUBROGATION.

                  Until all of the Securities are discharged and paid in full,
each Guarantor hereby irrevocably waives and agrees not to exercise any claim or
other rights which it may now or hereafter acquire against the Company that
arise from the existence, payment, performance or enforcement of the Company's
Obligations under the Securities or this Note Agreement and such Guarantor's
Obligations under this Guarantee and this Note Agreement, in any such instance
including, without limitation, any right of subrogation, reimbursement,
exoneration, contribution, indemnification, and any right to participate in any
claim or remedy of the Holders against the Company, whether or not such claim,
remedy or right arises in equity, or under contract, statute or common law,
including, without limitation, the right to take or receive from the Issuer,
directly or indirectly, in cash or other property or by set-off or in any other
manner, payment or security on account of such claim or other rights. If any
amount shall be paid to any Guarantor in violation of the preceding sentence and
any amounts owing to the Holders of Securities under the Securities, this Note
Agreement, or any other document or instrument delivered under or in connection
with such agreements or instruments, shall not have been paid in full, such
amount shall have been deemed to have been paid to such Guarantor for the
benefit of, and held in trust for the benefit of the Holders and shall forthwith
be paid to such Holders to be credited and applied to the Obligations in favor
of the Holders, whether matured or unmarred, in accordance with the terms of
this Note Agreement. Each Guarantor acknowledges that it will receive direct and
indirect benefits from the financing arrangements contemplated by this Note
Agreement and that the waiver set forth in this Section 9.05 is knowingly made
in contemplation of such benefits.

         SECTION 9.06. OBLIGATIONS CONTINUING.

                  Subject to Section 9.04, the Obligations of each Guarantor
hereunder shall be continuing and shall remain in full force and effect until
all the Obligations have been paid and satisfied in full.

         SECTION 9.07. OBLIGATIONS REINSTATED.

                  Subject to Section 9.04, the Obligations of each Guarantor
hereunder shall continue to be effective or shall be reinstated, as the case may
be, if at any time any payment which would otherwise have reduced the
Obligations of any Guarantor hereunder (whether such payment shall have been
made by or on behalf of the Company or by or on behalf of a Guarantor) is
rescinded or reclaimed from any of the Holders upon the insolvency, bankruptcy,
liquidation or reorganization of the Company or any Guarantor or otherwise, all
as though such payment had not been made. If demand for, or acceleration of the
time for, payment by the Company is stayed upon the insolvency, bankruptcy,
liquidation or reorganization of the Company, all such Indebtedness otherwise
subject to demand for payment or acceleration shall nonetheless be payable by
each Guarantor as provided herein.

<Page>

                                      -48-

         SECTION 9.08. WAIVER.

                  Without in any way limiting the provisions of Section 9.01,
each Guarantor hereby waives notice or proof of reliance by the Holders upon the
Obligations of any Guarantor hereunder, and diligence, presentment, demand for
payment on the Company, protest or notice of dishonor of any of the Obligations.

         SECTION 9.09. NO OBLIGATION TO TAKE ACTION AGAINST THE COMPANY.

                  Neither the Holders nor any other Person shall have any
obligation to enforce or exhaust any rights or remedies or to take any other
steps under any security for the Obligations or against the Company or any other
Person or any property of the Company or any other Person before the Holders are
entitled to demand payment and performance by any or all Guarantors of their
liabilities and Obligations under their Guarantees or under this Note Agreement.

         SECTION 9.10. AMENDMENT, ETC.

                  No amendment, modification or waiver of any provision of this
Note Agreement relating to any Guarantor or consent to any departure by any
Guarantor or any other Person from any such provision will in any event be
effective unless it is signed by such Guarantor, other than a release pursuant
to Section 9.04.

         SECTION 9.11. NO WAIVER; CUMULATIVE REMEDIES.

                  No failure to exercise and no delay in exercising, on the part
of the Holders, any right, remedy, power or privilege hereunder or under this
Note Agreement or the Securities, shall operate as a waiver thereof; nor shall
any single or partial exercise of any right, remedy, power or privilege
hereunder or under this Note Agreement or the Securities preclude any other or
further exercise thereof or the exercise of any other right, remedy, power or
privilege. The rights, remedies, powers and privileges in the Guarantee and
under this Note Agreement, the Securities and any other document or instrument
between a Guarantor and/or the Company and the Holders are cumulative and not
exclusive of any rights, remedies, powers and privilege provided by law.

         SECTION 9.12. SUCCESSORS AND ASSIGNS.

                  Each Guarantee shall be binding upon and inure to the benefit
of each Guarantor and the Holders and their respective successors and permitted
assigns, except that no Guarantor may assign any of its Obligations hereunder or
thereunder.

         SECTION 9.13. CONTRIBUTION.

                  In order to provide for just and equitable contribution among
the Guarantors, the Guarantors agree, INTER SE, that in the event any payment or
distribution is made by any Guarantor (a "FUNDING GUARANTOR") under its
Guarantee, such Funding Guarantor shall be entitled to contribution from all
other Guarantors in a PRO RATA amount based on the net assets (determined in
accordance with GAAP) of each Guarantor (including the Funding Guarantor) for
all payments, damages and expenses incurred by that Funding Guarantor in
discharging the Company's Obligations with respect to the Securities or any
other Guarantor's Obligations with respect to its Guarantee.

<Page>

                                      -49-

         SECTION 9.14. FUTURE GUARANTORS.

                  The Company shall cause (i) each of the Subsidiaries of the
Company (if any) which may on the Acquisition Closing Date result from the
Transactions (other than any Subsidiary which is or becomes a party to, or
assumes liabilities related to, the Assumed Mortgage (as defined in the Asset
Purchase Agreement), or which is or becomes an assignee of the Assumed Mortgage
or the Owned Real Property (as defined in the Asset Purchase Agreement)) on the
Acquisition Closing Date and (ii) each of the Company's Restricted Subsidiaries
to the extent required by the provisions of this Note Agreement, in each case,
to execute and deliver, within a reasonable time thereafter, a supplemental Note
Agreement or other agreement of guaranty and thereby become a Guarantor bound by
the Guarantee of the Securities in the form set forth in Article Nine hereof
(without such Guarantor being required to execute and deliver its Guarantee
endorsed on the securities); PROVIDED that no Subsidiary organized outside the
United States of America and no Unrestricted Subsidiary shall be required to
become a Guarantor.

                                   ARTICLE TEN

                           SUBORDINATION OF GUARANTEE

         SECTION 10.01. GUARANTEE OBLIGATIONS SUBORDINATED TO GUARANTOR SENIOR
                        DEBT.

                  Each Guarantor covenants and agrees, each Holder of the
Securities by acceptance thereof likewise covenants and agrees, that all
Guarantees shall be issued subject to the provisions of this Article Ten; and
each person holding any Guarantee, whether upon original issue or upon transfer,
assignment or exchange thereof, accepts and agrees that all payments of the
principal of, or premium, if any, and interest on the Securities pursuant to the
Guarantee made by or on behalf of such Guarantor shall, to the extent and in the
manner set forth in this Article Ten, be subordinated and junior in right of
payment to the prior payment in full in cash of all amounts payable under
Guarantor Senior Debt of such Guarantor.

         SECTION 10.02. NO PAYMENT ON GUARANTEE IN CERTAIN CIRCUMSTANCES.

                  (a) No direct or indirect payment by or on behalf of any
Guarantor of principal of or interest on the Securities, whether pursuant to the
terms of the Securities or the Guarantees, upon acceleration, pursuant to a
Change of Control Offer or Net Proceeds Offer or otherwise, shall be made to the
Holders of Securities if (i) a default in the payment of the principal of, or
premium, if any, and interest on Designated Guarantor Senior Debt occurs and is
continuing beyond any applicable period of grace or (ii) any other default
occurs and is continuing with respect to Designated Guarantor Senior Debt that
permits holders of the Designated Guarantor Senior Debt as to which such default
relates to accelerate its maturity and the Holder receives a written notice of
such other default (a "GUARANTOR PAYMENT BLOCKAGE NOTICE") from the Company or a
Guarantor or the holders of any Designated Guarantor Senior Debt (with a copy to
the Company) until all Obligations with respect to such Designated Guarantor
Senior Debt are paid in full; payments on the Securities shall be resumed (x) in
the case of a payment default, upon the date on which such default is cured or
waived and (y) in case of a nonpayment default, the earlier of the date on which
such nonpayment default is cured or waived or 179 days after the date on which
the applicable Guarantor Payment Blockage Notice is received by the Holder (such
period being referred to herein as the "GUARANTOR PAYMENT BLOCKAGE PERIOD"),
unless the maturity of any Designated Guarantor Senior Debt has been accelerated
(and written notice of such acceleration has been received by the Company).

<Page>

                                      -50-

                  Notwithstanding anything herein or in the Securities to the
contrary, (x) in no event shall a Guarantor Payment Blockage Period extend
beyond 179 days from the date the Guarantor Payment Blockage Notice in respect
thereof was given and (y) not more than one Guarantor Payment Blockage Period
may be commenced with respect to the Securities during any period of 360
consecutive days. No nonpayment default that existed or was continuing on the
date of delivery of any Guarantor Payment Blockage Notice shall be, or be made,
the basis for a subsequent Guarantor Payment Blockage Notice (it being
understood that any subsequent action, or any breach of any covenant for a
period commencing after the date of receipt of such Guarantor Payment Blockage
Notice, that, in either case, would give rise to such a default pursuant to any
provisions under which a default previously existed or was continuing shall
constitute a new default for this purpose).

                  (b) In the event that, notwithstanding the foregoing, any
payment shall be received by any Holder when such payment is prohibited by
Section 10.02(a), such payment shall be held in trust for the benefit of, and
shall be paid over or delivered to, the holders of such Designated Guarantor
Senior Debt or their respective representatives, or to the trustee or trustees
under any indenture pursuant to which any of such Designated Guarantor Senior
Debt may have been issued, as their respective interests may appear, but only to
the extent that, upon notice to the holders of such Designated Guarantor Senior
Debt that such prohibited payment has been made, the holders of such Designated
Guarantor Senior Debt (or their representative or representatives or a trustee)
notify the Company and the Holders in writing of the amounts then due and owing
on such Designated Guarantor Senior Debt, if any, and only the amounts specified
in such notice shall be paid to the holders of such Designated Guarantor Senior
Debt.

         SECTION 10.03. PAYMENT OVER OF PROCEEDS UPON DISSOLUTION, ETC.

                  (a) Upon any payment or distribution of assets or securities
of any Guarantor of any kind or character, whether in cash, property or
securities, upon any dissolution or winding-up or liquidation or reorganization
of such Guarantor, whether voluntary or involuntary or in bankruptcy,
insolvency, receivership or other similar proceedings, the holders of Guarantor
Senior Debt of such Guarantor shall be entitled to receive payment in full in
cash of all Obligations due in respect of such Guarantor Senior Debt before the
Holders of the Securities shall be entitled to receive any payment by such
Guarantor of the principal of, or premium, if any, and interest or on the
Securities pursuant to its Guarantee, or any payment to acquire any of the
Securities for cash, property or securities, or any distribution with respect to
the Securities of any cash, property or securities (except that Holders may
receive and retain Permitted Junior Securities). Before any payment (other than
Permitted Junior Securities) may be made by, or on behalf of, any Guarantor of
the principal of, or premium, if any, and interest on the Securities upon any
such dissolution or winding-up or liquidation or reorganization, any payment or
distribution of assets or securities of such Guarantor of any kind or character,
whether in cash, property or securities, to which the Holders of the Securities
would be entitled, but for the subordination provisions of this Note Agreement,
shall be made by such Guarantor or by any receiver, trustee in bankruptcy,
liquidating trustee, agent or other Person making such payment or distribution,
directly to the holders of the Guarantor Senior Debt of such Guarantor (to such
holders as their interests may appear, on the basis of the respective amounts of
such Guarantor Senior Debt held by such holders) or their representatives or
agent or agents under any agreement or indenture pursuant to which any such
Guarantor Senior Debt may have been issued, as their respective interests may
appear, to the extent necessary to pay all such Guarantor Senior Debt in full in
cash after giving effect to any prior or concurrent payment, distribution or
provision therefor to or for the holders of such Guarantor Senior Debt.

                  (b) In the event that, notwithstanding the foregoing provision
prohibiting such payment or distribution, any payment or distribution of assets
or securities of a Guarantor of any kind or character, whether in cash, property
or securities, shall be received by any Holder of Securities at a time when such
payment or distribution is prohibited by Section 10.03(a) and before all
Obligations in respect of the

<Page>

                                      -51-

Guarantor Senior Debt of such Guarantor are paid in full in cash, or payment
provided for, such payment or distribution shall be received and held in trust
for the benefit of, and shall be paid over or delivered to, the holders of such
Guarantor Senior Debt (to such holders as their interests may appear, on the
basis of the respective amounts of Guarantor Senior Debt held by such holders)
or their respective representatives, or to the trustee or trustees or agent or
agents under any indenture pursuant to which any of such Guarantor Senior Debt
may have been issued, as their respective interests may appear, for application
to the payment of the Guarantor Senior Debt remaining unpaid until all Guarantor
Senior Debt has been paid in full in cash after giving effect to any prior or
concurrent payment, distribution or provision therefor to or for the holders of
any Guarantor Senior Debt; provided that the trustee shall be entitled to
receive from the holders of Guarantor Senior Debt written notice of the amounts
owing on the Guarantor Senior Debt.

                  The consolidation of a Guarantor with, or the merger of a
Guarantor with or into, another corporation or the liquidation or dissolution of
a Guarantor following the conveyance or transfer of its property as an entirety,
or substantially as an entirety, to another corporation upon the terms and
conditions provided in Article Five shall not be deemed a dissolution,
winding-up, liquidation or reorganization for the purposes of this Section 10.03
if such other corporation shall, as a part of such consolidation, merger,
conveyance or transfer, comply with the conditions stated in Article Five.

         SECTION 10.04. SUBROGATION.

                  Upon the payment in full in cash of all Guarantor Senior Debt
of a Guarantor, or provision for payment, the Holders of the Securities shall be
subrogated to the rights of the holders of Guarantor Senior Debt to receive
payments or distributions of cash, property or securities of such Guarantor made
on Guarantor Senior Debt of such Guarantor until the principal of, or premium,
if any, and interest on the Securities shall be paid in full in cash; and, for
the purposes of such subrogation, no payments or distributions to the holders of
Guarantor Senior Debt of any cash, property or securities to which the Holders
of the Securities would be entitled except for the provisions of this Article
Ten, and no payment over pursuant to the provisions of this Article Ten to the
holders of the Guarantor Senior Debt by Holders of the Securities shall, as
between such Guarantor, its creditors other than holders of such Guarantor
Senior Debt of such Guarantor, and the Holders of the Securities, be deemed to
be a payment by such Guarantor to or on account of the Guarantor Senior Debt of
such Guarantor. It is understood that the provisions of this Article Twelve are
and are intended solely for the purpose of defining the relative rights of the
Holders of the Securities, on the one hand, and the holders of Guarantor Senior
Debt, on the other hand.

                  If any payment or distribution to which the Holders of the
Securities would otherwise have been entitled but for the provisions of this
Article Ten shall have been applied, pursuant to the provisions of this Article
Ten, to the payment of all amounts payable under Guarantor Senior Debt, then and
in such case, the Holders of the Securities shall be entitled to receive from
the holders of such Guarantor Senior Debt any payments or distributions received
by such holders of Guarantor Senior Debt in excess of the amount required to
make payment in full, or provision for payment, of such Guarantor Senior Debt.

         SECTION 10.05. OBLIGATIONS OF GUARANTOR UNCONDITIONAL.

                  Nothing contained in this Article Ten or elsewhere in this
Note Agreement or in the Securities or the Guarantees is intended to or shall
impair, as between any Guarantor and the Holders of the Securities, the
obligation of such Guarantor, which is absolute and unconditional, to pay to the
Holders of the Securities the principal of, or premium, if any, and interest on
the Securities as and when the same shall become due and payable in accordance
with the terms of its Guarantee, or is intended to or shall affect the relative
rights of the Holders of the Securities and creditors of the Guarantors other
than

<Page>

                                      -52-

the holders of Guarantor Senior Debt, nor shall anything herein or therein
prevent the Holder of any Security from exercising all remedies otherwise
permitted by applicable law upon default under this Note Agreement, subject to
the rights, if any, under this Article Ten of the holders of Guarantor Senior
Debt in respect of cash, property or securities of the Guarantors received upon
the exercise of any such remedy.

                  Without limiting the generality of the foregoing, nothing
contained in this Article Ten shall restrict the right of the Holders of
Securities to take any action to declare the Securities to be due and payable
prior to their stated maturity pursuant to Section 6.01 or to pursue any rights
or remedies hereunder; PROVIDED, HOWEVER, that all Guarantor Senior Debt of any
Guarantor then due and payable shall first be paid in full before the Holders of
the Securities are entitled to receive any direct or indirect payment from such
Guarantor of principal of, or premium, if any, and interest on the Securities
pursuant to such Guarantor's Guarantee.

         SECTION 10.06. RELIANCE ON JUDICIAL ORDER OR CERTIFICATE OF LIQUIDATING
                        AGENT.

                  Upon any payment or distribution of assets or securities of
any Guarantor referred to in this Article Ten, the Holders of the Securities
shall be entitled to rely upon any order or decree made by any court of
competent jurisdiction in which bankruptcy, dissolution, winding-up, liquidation
or reorganization proceedings are pending, or upon a certificate of the
receiver, trustee in bankruptcy, liquidating trustee, agent or other person
making such payment or distribution, delivered to the Holders of the Securities
for the purpose of ascertaining the Persons entitled to participate in such
distribution, the holders of Guarantor Senior Debt and other Indebtedness of
such Guarantor, the amount thereof or payable thereon, the amount or amounts
paid or distributed thereon and all other facts pertinent thereto or to this
Article Ten.

         SECTION 10.07. SUBORDINATION RIGHTS NOT IMPAIRED BY ACTS OR OMISSIONS
                        OF THE GUARANTORS OR HOLDERS OF GUARANTOR SENIOR DEBT.

                  No right of any present or future holders of any Guarantor
Senior Debt to enforce subordination as provided herein shall at any time in any
way be prejudiced or impaired by any act or failure to act on the part of any
Guarantor or by any act or failure to act, in good faith, by any such holder, or
by any noncompliance by any Guarantor with the terms of this Note Agreement,
regardless of any knowledge thereof which any such holder may have or otherwise
be charged with. The provisions of this Article Ten are intended to be for the
benefit of, and shall be enforceable directly by, the holders of Guarantor
Senior Debt.

         SECTION 10.08. THIS ARTICLE NOT TO PREVENT EVENTS OF DEFAULT.

                  The failure to make a payment on account of principal of, or
premium, if any, and interest on the Securities by reason of any provision of
this Article Ten shall not be construed as preventing the occurrence of an Event
of Default specified in clauses (a) or (b) of Section 6.01.

         SECTION 10.09. NO WAIVER OF GUARANTEE SUBORDINATION PROVISIONS.

                  Without in any way limiting the generality of Section 10.07,
the holders of Guarantor Senior Debt may, at any time and from time to time,
without the consent of or notice to the Holders of the Securities, without
incurring responsibility to the Holders of the Securities and without impairing
or releasing the subordination provided in this Article Ten or the obligations
hereunder of the Holders of the Securities to the holders of Guarantor Senior
Debt, do any one or more of the following: (a) change the manner, place or terms
of payment or extend the time of payment of, or renew or alter, Guarantor Senior

<Page>

                                      -53-

Debt or any instrument evidencing the same or any agreement under which
Guarantor Senior Debt is outstanding or secured; (b) sell, exchange, release or
otherwise deal with any property pledged, mortgaged or otherwise securing
Guarantor Senior Debt; (c) release any Person liable in any manner for the
collection of Guarantor Senior Debt; and (d) exercise or refrain from exercising
any rights against the Guarantor and any other Person.

                                 ARTICLE ELEVEN

                                  MISCELLANEOUS

         SECTION 11.01. NOTICES.

                  Any notices or other communications required or permitted
hereunder shall be in writing, and shall be sufficiently given if made by hand
delivery, by telecopier, by reputable overnight delivery service, or registered
mail, postage prepaid, return receipt requested, addressed as follows:

                  if to the Company or any Guarantor:

                           Designs, Inc.
                           66 B Street
                           Needham, Massachusetts 02494

                           Attention:  Chief Financial Officer

                           Facsimile:  (781) 444-7462

                  with a copy to

                           Kramer Levin Naftalis & Frankel LLP
                           919 Third Avenue
                           New York, New York  10022

                           Attention:  Peter G. Smith, Esq.

                           Facsimile:  (212) 715-8000

         if to the Holders, to their respective addresses set forth on or
                            following the signature pages hereto or otherwise
                            specified to the Company in writing by notice given
                            in accordance with this Section 11.01,

                  with a copy to

                           Patterson, Belknap, Webb & Tyler LLP
                           1133 Avenue of the Americas
                           New York, New York  10036

                           Attention:  Jeffrey E. LaGueux, Esq.

                           Facsimile:  (212) 336-2222

<Page>

                                      -54-

                           and a copy to

                           Skadden, Arps, Slate, Meagher & Flom LLP
                           Four Times Square
                           New York, New York 10036-6522

                           Attention:  Richard T. Prins, Esq.

                           Facsimile:  (212) 735-2000

                  Each of the Company, the Guarantors and the Holders by written
notice to each other may designate additional or different addresses for notices
to such Person. Any notice or communication to the Company and the Guarantors
shall be deemed to have been given or made as of the date so delivered if
personally delivered; when answered back, if telexed; when receipt is
acknowledged, if telecopied; one (1) business day after mailing by reputable
overnight courier; and five (5) calendar days after mailing if sent by
registered mail, postage prepaid (except that, notwithstanding the foregoing, a
notice of change of address shall not be deemed to have been given until
actually received by the addressee). Notice to the Holders shall be deemed given
when actually received by the Holders.

                  Any notice or communication mailed to a Securityholder shall
be mailed to him by first class mail or other equivalent means at his address as
it appears on the registration books of the Company and shall be sufficiently
given to him if so mailed within the time prescribed.

                  Failure to mail a notice or communication to a Securityholder
or any defect in it shall not affect its sufficiency with respect to other
Securityholders. If a notice or communication is mailed in the manner provided
above, it is duly given, whether or not the addressee receives it.

         SECTION 11.02. STATEMENTS REQUIRED IN CERTIFICATE OR OPINION.

                  Each certificate or opinion with respect to compliance with a
condition or covenant provided for in this Note Agreement, other than the
Officers' Certificate required by Section 4.08(a), shall include:

                  (1) a statement that the Person making such certificate or
         opinion has read such covenant or condition and the definitions
         relating thereto;

                  (2) a brief statement as to the nature and scope of the
         examination or investigation upon which the statements or opinions
         contained in such certificate or opinion are based;

                  (3) a statement that, in the opinion of such Person, he has
         made such examination or investigation as is necessary to enable him to
         express an informed opinion as to whether or not such covenant or
         condition has been complied with; and

                  (4) a statement as to whether or not, in the opinion of each
         such Person, such condition or covenant has been complied with;
         provided, however, that with respect to matters of fact an Opinion of
         Counsel may rely on an Officers' Certificate or certificates of public
         officials.

         SECTION 11.03. LEGAL HOLIDAYS.

                  A "Legal Holiday" used with respect to a particular place of
payment is a Saturday, a Sunday or a day on which banking institutions in New
York, New York, or at such place of payment are

<Page>

                                      -55-

not required to be open. If a payment date is a Legal Holiday at such place,
payment may be made at such place on the next succeeding day that is not a Legal
Holiday, and no interest shall accrue for the intervening period.

         SECTION 11.04. GOVERNING LAW.

                  THIS NOTE AGREEMENT, THE SECURITIES AND THE GUARANTEES WILL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,
AS APPLIED TO CONTRACTS MADE AND PERFORMED WITHIN THE STATE OF NEW YORK, WITHOUT
REGARD TO PRINCIPLES OF CONFLICT OF LAWS. EACH OF THE PARTIES HERETO AGREES TO
SUBMIT TO THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK IN ANY ACTION
OR PROCEEDING ARISING OUT OF OR RELATING TO THIS NOTE AGREEMENT OR THE
SECURITIES OR THE GUARANTEES.

         SECTION 11.05. NO RECOURSE AGAINST OTHERS.

                  A director, officer, employee, stockholder or incorporator, as
such, of the Company or any Guarantor shall not have any liability for any
Obligations of the Company or any Guarantor under the Securities, the Guarantees
or this Note Agreement or for any claim based on, in respect of or by reason of
such Obligations or their creation. Each Securityholder by accepting a Security
waives and releases all such liability. Such waiver and release are part of the
consideration for the issuance of the Securities.

         SECTION 11.06. SUCCESSORS.

                  All agreements of the Company in this Note Agreement and the
Securities shall bind its successors.

         SECTION 11.07. DUPLICATE ORIGINALS.

                  All parties may sign any number of copies of this Note
Agreement. Each signed copy or counterpart shall be an original, but all of them
together shall represent the same agreement.

         SECTION 11.08. SEVERABILITY.

                  In case any one or more of the provisions in this Note
Agreement, in the Securities or in the Guarantees shall be held invalid, illegal
or unenforceable, in any respect for any reason, the validity, legality and
enforceability of any such provision in every other respect and of the remaining
provisions shall not in any way be affected or impaired thereby, it being
intended that all of the provisions hereof shall be enforceable to the full
extent permitted by law.

         SECTION 11.09 REPRESENTATIONS AND WARRANTIES.

                   The Company hereby represents and warrants to each Initial
Purchaser of the Securities, as of May 14, 2002, as set forth in Annex A
attached to this Note Agreement and made a part hereof.

                           [SIGNATURE PAGES TO FOLLOW]

<Page>

                                   SIGNATURES

                  IN WITNESS WHEREOF, the parties hereto have caused this Note
Agreement to be duly executed, all as of the date first written above.

                                       THE COMPANY:

                                       DESIGNS, INC.

                                       By:
                                           ----------------------------------
                                           Name:    Dennis R. Hernreich
                                           Title:   Chief Financial Officer

                                       PURCHASERS:

                                       CLARK PARTNERS I, L.P.

                                       By:
                                           ----------------------------------
                                           Name:
                                           Title:

                                       JEWELCOR MANAGEMENT, INC.

                                       By:
                                           ----------------------------------
                                           Name:
                                           Title:

                                       BARON ASSET FUND
                                       On behalf of THE BARON SMALL CAP FUND
                                       SERIES

                                       By: Bamco, inc.

                                       By:
                                           ----------------------------------
                                           Name:
                                           Title:

<Page>

                                                                       EXHIBIT A

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED, SOLD,
PLEDGED OR OTHERWISE TRANSFERRED, EXCEPT AS SET FORTH IN THE NEXT SENTENCE. BY
ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE HOLDER: (1)
REPRESENTS THAT IT IS AN "ACCREDITED INVESTOR" (AS DEFINED IN RULE 501(a)(1),
(2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES ACT (AN "AI"), (2) AGREES
THAT IT WILL NOT RESELL OR OTHERWISE TRANSFER THIS NOTE EXCEPT (A) TO THE
COMPANY, (B) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144 UNDER THE
SECURITIES ACT, (C) TO AN AI THAT, PRIOR TO SUCH TRANSFER, FURNISHES THE COMPANY
A SIGNED LETTER CONTAINING CERTAIN CUSTOMARY REPRESENTATIONS AND AGREEMENTS
RELATING TO THE TRANSFER OF THIS NOTE (THE FORM OF WHICH CAN BE OBTAINED FROM
THE COMPANY) AND AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY THAT SUCH
TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT, OR (D) IN ACCORDANCE WITH
ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND
BASED UPON AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY) AND, IN EACH CASE,
IN ACCORDANCE WITH THE APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES OR ANY OTHER APPLICABLE JURISDICTION, AND (3) AGREES THAT IT WILL DELIVER
TO EACH PERSON TO WHICH THIS NOTE OR AN INTEREST HEREIN IS TRANSFERRED A NOTICE
SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND, AND (4) FURTHER AGREES THAT IT MAY
NOT RESELL OR OTHERWISE TRANSFER THIS NOTE EXCEPT (X) IN DENOMINATIONS OF NOT
LESS THAN $2 MILLION AND (Y) WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY,
WHICH CONSENT SHALL NOT UNREASONABLY BE WITHHELD. THIS NOTE IS SUBJECT AND
SUBORDINATE TO THE LIABILITIES OF DESIGNS, INC. DUE OR TO BECOME DUE TO FLEET
RETAIL FINANCE INC., AGENT PURSUANT TO A SUBORDINATION AGREEMENT DATED MAY 14,
2002, AS AMENDED AND IN EFFECT.

THIS NOTE IS SUBJECT AND SUBORDINATE TO THE LIABILITIES OF DESIGNS, INC. DUE OR
TO BECOME DUE TO FLEET RETAIL FINANCE INC., AGENT PURSUANT TO A SUBORDINATION
AGREEMENT DATED MAY 14, 2002, AS AMENDED AND IN EFFECT.

                                  DESIGNS, INC.

                          12% Senior Subordinated Note
                                    due 2007

No.__                                                           $______________

                  DESIGNS, INC., a Delaware corporation (the "Company", which
term includes any successor corporation), for value received, promises to pay to
______________________, or registered assigns, the principal sum of
___________________ ($_____________) on April 26, 2007.

                  Interest Payment Dates: July 31, October 31, January 31, and
April 30.

                  Reference is made to the further provisions of this Security
contained herein, which will for all purposes have the same effect as if set
forth at this place.

                                       A-1
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                  IN WITNESS WHEREOF, the Company has caused this Security to be
signed manually or by facsimile by its duly authorized officers.

                                       DESIGNS, INC.

                                       By:
                                           ----------------------------------
                                           Name:
                                           Title:

                                       By:
                                           ----------------------------------
                                           Name:
                                           Title:

                                       A-2
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                                  DESIGNS, INC.

                          12% Senior Subordinated Note
                                    due 2007

1.       INTEREST.

                  DESIGNS, INC., a Delaware corporation (the "Company"),
promises to pay interest on the principal amount of this Security at the rate
per annum shown above. The Company will pay interest quarterly on July 31,
October 31, January 31 and April 30 of each year (each an "Interest Payment
Date"), commencing July 31, 2002. Interest on the Securities will accrue from
the most recent date on which interest has been paid or, if no interest has been
paid, from __________, 2002. Interest will be computed on the basis of a 360-day
year of twelve 30-day months or in the case of a partial month, the actual
number of days elapsed.

                  The Company shall pay interest at the rate of interest then
borne by the Securities on overdue installments of principal and on overdue
installments of interest to the extent lawful as provided in the Note Agreement.
The interest rate in respect of any overdue installment of interest on the
Securities which is not paid when due by virtue of Article 8 of the Note
Agreement (as defined below) shall be increased by 500 basis points, to a rate
of 17% per annum.

2.       METHOD OF PAYMENT.

                  The Company shall pay interest on the Securities (except
defaulted interest) to the persons who are the registered Holders at the close
of business on the Interest Payment Date. Holders must surrender Securities to
the Company at its principal place of business to collect principal payments.
The Company shall pay principal and interest in money of the United States that
at the time of payment is legal tender for payment of public and private debts
("U.S. Legal Tender"). However, the Company may pay principal and interest by
wire transfer of Federal funds, or interest by check payable in such U.S. Legal
Tender. The Company shall deliver any such interest payment to a Holder at the
Holder's registered address.

3.       NOTE AGREEMENT.

                  The Company issued the Securities under a Note Agreement,
dated as of April 26, 2002, and amended and restated as of May 14, 2002 (the
"Note Agreement"), by and among the Company, the Guarantors named therein and
the Initial Purchasers. Capitalized terms herein are used as defined in the Note
Agreement unless otherwise defined herein. The terms of the Securities include
those stated in the Note Agreement and as it may be amended from time to time.

4.       OPTIONAL REDEMPTION.

                  The Securities will be redeemable, at the Company's option, in
whole at any time or in part from time to time, upon not less than 15 nor more
than 30 days' notice, at 100% of the principal amount thereof, plus, in each
case, accrued and unpaid interest to the date of redemption.

                                       A-3
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5.       NOTICE OF OPTIONAL REDEMPTION.

                  Notice of redemption will be sent, by first class mail,
postage prepaid, at least 15 days but not more than 30 days before the
Redemption Date to each Holder of Securities to be redeemed at such Holder's
registered address.

                  Except as set forth in the Note Agreement, unless the Company
defaults in the payment of such Redemption Price plus accrued and unpaid
interest, if any, the Securities called for redemption will cease to bear
interest from and after such Redemption Date and the only right of the Holders
of such Securities will be to receive payment of the Redemption Price plus
accrued and unpaid interest, if any to the Redemption Date.

6.       OFFERS TO PURCHASE.

                  Section 4.13 of the Note Agreement provides that, and upon the
occurrence of a Change of Control and subject to further limitations contained
therein, the Company will make an offer to purchase the Securities in accordance
with the procedures set forth in the Note Agreement.

7.       SPECIAL MANDATORY REDEMPTION. [This provision shall appear only in
Securities numbered Nos. 1 to 4 as originally issued. The provisions of Section
3.05 of the Note Agreement shall be void and of no further force and effect from
and after May 14, 2002. In Securities issued from and after May 14, 2002, this
provision shall be replaced by the notation "Intentionally Omitted as
Inapplicable From and After May 14, 2002."]

                  Section 3.05 of the Note Agreement provides that if the funds
deposited with Casual Male have been released to the Company (or its designee),
because substantially all of the assets of Casual Male and certain related
entities have been acquired by a party other than the Company or otherwise as
provided in the auction procedures approved by order of the United States
Bankruptcy Court, constituting a Mandatory Redemption Event (as defined in the
Note Agreement), the Company will redeem all of the Securities at 100% of the
principal amount of the Securities plus accrued and unpaid interest to the date
of redemption in accordance with the procedures set forth in Section 3.05.

8.       DENOMINATIONS; TRANSFER; EXCHANGE.

                  The Securities are in registered form, without coupons. A
Holder shall register the transfer of or exchange Securities in accordance with
the Note Agreement. The Company may require a Holder, among other things, to
furnish appropriate endorsements and transfer documents and to pay certain
transfer taxes or similar governmental charges payable in connection therewith
as permitted by the Note Agreement. The Company need not register the transfer
of or exchange any Securities or portions thereof (i) during a period beginning
at the opening of business 15 days before the mailing of a notice of redemption
of Securities and ending at the close of business on the day of such mailing and
(ii) selected for redemption, except the unredeemed portion of any Security
being redeemed in part.

9.       PERSONS DEEMED OWNERS.

                  The registered Holder of a Security shall be treated as the
owner of it for all purposes.

10.      AMENDMENT; SUPPLEMENT; WAIVER.

                  Subject to certain exceptions, the Note Agreement and the
Securities may be amended or supplemented with the written consent of the
Holders of at least 75% in aggregate principal amount of the

                                       A-4
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Securities then outstanding, and any existing Default or Event of Default or
compliance with any provision may be waived with the consent of the Holders of a
majority in aggregate principal amount of the Securities then outstanding.
Without notice to or consent of any Holder, the Company may amend or supplement
the Note Agreement and the Securities to, among other things, cure any
ambiguity, defect or inconsistency or make any other change that does not
adversely affect the rights of any Holder of a Security in any material respect.

11.      RESTRICTIVE COVENANTS.

                  The Note Agreement contains certain covenants that, among
other things, limit the ability of the Company and the Subsidiaries to incur
additional Indebtedness, create certain Liens, pay dividends or make certain
other Restricted Payments, consummate certain Asset Sales, enter into certain
transactions with Affiliates and merge or consolidate with any other Person or
sell, assign, transfer, lease, convey or otherwise dispose of all or
substantially all of the assets of the Company. The limitations are subject to a
number of important qualifications and exceptions.

12.      SUBORDINATION.

                  The Indebtedness evidenced by the Securities is, to the extent
and in the manner provided in the Note Agreement, subordinated in right of
payment to the prior payment in full in cash of all Senior Debt, and this
Security is issued subject to such provisions. Each Holder of this Security, by
accepting the same, agrees to and shall be bound by such provisions.

13.      DEFAULTS AND REMEDIES.

                  If an Event of Default occurs and is continuing, the Holders
of at least 25% in aggregate principal amount of Securities then outstanding may
declare the principal of and accrued interest on all the Securities to be due
and payable immediately in the manner and with the effect provided in the Note
Agreement. Holders of Securities may not enforce the Note Agreement or the
Securities except as provided in the Note Agreement. The Note Agreement permits,
subject to certain limitations therein provided, Holders of a majority in
aggregate principal amount of the Securities then outstanding to exercise any
power.

14.      NO RECOURSE AGAINST OTHERS.

                  No stockholder, director, officer, employee or incorporator,
as such, of the Company shall have any liability for any obligation of the
Company under the Securities or the Note Agreement or for any claim based on, in
respect of or by reason of, such Obligations or their creation. Each Holder of a
Security by accepting a Security waives and releases all such liability. The
waiver and release are part of the consideration for the issuance of the
Securities.

15.      GUARANTEES.

                  This Security will be entitled to the benefits of certain
Guarantees made for the benefit of the Holders. Reference is hereby made to the
Note Agreement for a statement of the respective rights, limitations of rights,
duties and Obligations thereunder of the Guarantors and the Holders.

16.      ABBREVIATIONS AND DEFINED TERMS.

                  Customary abbreviations may be used in the name of a Holder of
a Security or an assignee, such as: TEN COM (= tenants in common), TEN ENT (=
tenants by the entireties), JT TEN (=

                                       A-5
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joint tenants with right of survivorship and not as tenants in common), CUST (=
Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

17.      NOTE AGREEMENT.

                  The Company will furnish to any Holder of a Security upon
written request and without charge a copy of the Note Agreement. Requests may be
made to: Designs, Inc., 66 B Street, Needham, Massachusetts 02494, Attn: Chief
Financial Officer.

18.      GOVERNING LAWS.

                  This Security and the Note Agreement shall be governed by and
construed in accordance with the laws of the State of New York, as applied to
contracts made and performed within the State of New York, without regard to
principles of conflict of laws. Each of the parties hereto agrees to submit to
the jurisdiction of the courts of the State of New York in any action or
proceeding arising out of or relating to this Security.

                                       A-6
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                                 ASSIGNMENT FORM

I or we assign and transfer this Security to:

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

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

(Print or type name, address and zip code of assignee or transferee)

(Insert Social Security or other identifying number of assignee or transferee)

and irrevocably appoint
                        -------------------------------------------------------,
agent to transfer this Security on the books of the Company.
The agent may substitute another to act for him.

Dated:
      -----------------------------------

Signed:
       ----------------------------------
(Sign exactly as name appears on the other side of this Security)

Signature Guarantee:
                    ----------------------------------
Participant in a recognized Signature Guarantee Medallion Program (or other
signature guarantor program reasonably acceptable to the Company)

                                       A-7
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                       OPTION OF HOLDER TO ELECT PURCHASE

                  If you want to elect to have this Security purchased by the
Company pursuant to Section ___ of the Note Agreement, check the box:

                  If you want to elect to have only part of this Security
purchased by the Company pursuant to ___ of the Note Agreement, state the
amount: $_____________

Dated:
      -----------------------------------

Signed:
       ----------------------------------
(Sign exactly as name appears on the other side of this Security)

Signature Guarantee:
                    ----------------------------------
Participant in a recognized Signature Guarantee Medallion Program (or other
signature guarantor program reasonably acceptable to the Company)

                                       A-8
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                                                                       EXHIBIT B

                                    GUARANTEE

                  For value received, the undersigned hereby unconditionally,
absolutely and irrevocably guarantees, as principal obligor and not only as a
surety, to the Holder of this Security the cash payments in United States
dollars of principal of, premium, if any, and interest on this Security in the
amounts and at the times when due and interest on the overdue principal,
premium, if any, and interest, if any, of this Security, if lawful, and the
payment or performance of all other Obligations of the Company under the Note
Agreement (as defined below) or the Security, to the Holder of this Security,
all in accordance with and subject to the terms and limitations of this
Security, Article Nine and Article Ten of the Note Agreement and this Guarantee.
This Guarantee will become effective in accordance with Article Nine of the Note
Agreement and its terms shall be evidenced therein. The validity and
enforceability of this Guarantee shall not be affected by the fact that it is
not affixed to any particular Security. Capitalized terms used but not defined
herein shall have the meanings ascribed to them in the Note Agreement dated as
of April 26, 2002, and amended and restated as of May 14, 2002, among Designs,
Inc., a Delaware corporation, as issuer (the "Company"), each of the Guarantors
referred to therein and the Initial Purchasers (as amended or supplemented, the
"Note Agreement").

                  The obligations of the undersigned to the Holders of
Securities pursuant to this Guarantee and the Note Agreement are expressly set
forth in Articles Nine and Ten of the Note Agreement and are expressly
subordinated in right of payment to the prior payment in full of all Guarantor
Senior Debt of the Guarantor issuing this Guarantee, to the extent and in the
manner provided in Article Ten of the Note Agreement and reference is hereby
made to the Note Agreement for the precise terms of the Guarantee and all of the
other provisions of the Note Agreement to which this Guarantee relates.

                  THIS GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO
PRINCIPLES OF CONFLICT OF LAWS. Each Guarantor hereby agrees to submit to the
jurisdiction of the courts of the State of New York in any action or proceeding
arising out of or relating to this Guarantee.

                  This Guarantee is subject to release upon the terms set forth
in the Note Agreement.

                                       B-1
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                  IN WITNESS WHEREOF, each Guarantor has caused its Guarantee to
be duly executed.

Date:____________________

                                       [NAME OF GUARANTOR], as Guarantor

                                       By:
                                            ----------------------------------
                                            Name:
                                            Title:

                                       By:
                                            ----------------------------------
                                            Name:
                                            Title:

                                       B-2

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