Document:

EXHIBIT 10.7
                                                                    ------------

                          SECOND FORBEARANCE AGREEMENT
                          ----------------------------

     This Second Forbearance Agreement (this "Agreement") is entered into as of
December 31, 2002, by and among Signature Eyewear, Inc. ("SEI") and City
National Bank ("CNB").

                                    RECITALS:
                                    ---------

     WHEREAS, SEI and CNB are parties to a certain Accounts Receivable Inventory
Loan Agreement dated as of June 26, 2000 (hereinafter defined as the "Loan
Agreement"); and

     WHEREAS, on September 30, 2000, all of the Obligations (as defined in the
Loan Agreement) became due and payable by SEI to CNB; and

     WHEREAS, SEI has failed to pay the Obligations in full as required under
the Loan Agreement, which constitutes an Event of Default under, INTER ALIA,
each of Sections 9.1.1 and 9.1.13 of the Loan Agreement, in addition to other
Events of Default under the Loan Agreement arising prior to September 30, 2000;
and

     WHEREAS, SEI and CNB are parties to that certain Forbearance Agreement,
dated December 18, 2000 (as amended, the "Forbearance Agreement "); and

     WHEREAS, a Forbearance Termination Event occurred under the Forbearance
Agreement beginning on November 21, 2002, by reason of, INTER ALIA,
non-compliance with certain covenants contained in the Forbearance Agreement and
the Twelfth Amendment to Forbearance Agreement dated as of November 5, 2002 (as
amended, the "Twelfth Amendment"), and the occurrence of the Forbearance
Termination Date with respect to the Forbearance Agreement and the Twelfth
Amendment for reasons including, without limitation, those set forth in a
written notice to SEI from counsel to CNB dated December 17, 2002; and

     WHEREAS, CNB is willing to forbear from enforcing its rights and remedies
arising because of the Existing Defaults (as hereinafter defined) for a limited
period of time, provided

                                       -2-
<PAGE>
that SEI comply with the terms of this Agreement and that no Forbearance Default
(as hereinafter defined) arises under this Agreement;

     NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

                             SECTION 1. DEFINITIONS
                             ----------------------

     1.1  All capitalized terms used herein and not otherwise defined shall have
the meanings assigned to such terms in the Loan Agreement.

     1.2  The following terms used in this Agreement shall have the meanings set
forth below:

     "Existing Defaults" means (i) the Events of Default which occurred prior to
September 30, 2000; (ii) the Events of Default under Sections 9.1.1 and 9.1.13
of the Loan Agreement which occurred as a result of SEI's failure to repay the
Obligations on September 30, 2000; and (iii) the non-compliance with certain
covenants contained in the Forbearance Agreement and the Twelfth Amendment.

     "Forbearance Default" means (i) any occurrence of events which constituted
an Event of Default other than the Existing Defaults, including, without
limitatio n, any reoccurrence of events which constituted an Existing Default,
other than an Event of Default arising from (a) breach of the representation and
warranty under Section 5.5 of the Loan Agreement by reason of (x) litigation
pending and disclosed to CNB prior to the date of this Agreement or (y)
litigation commenced against SEI on or after the date hereof which is dismissed
within thirty (30) days of its commencement; or (b) breach of the covenants
contained in Sections 6.2.2., 6.2.3, or 6.10 of the Loan Agreement; (ii) the
failure of SEI to comply with any term, condition or covenant set forth in this
Agreement; (iii) if any representation made by SEI, under or in connection with
this Agreement shall prove to be false as of the date when made; (iv) the filing
of any petition (voluntary or involuntary) under the insolvency or bankruptcy
laws

                                       -3-
<PAGE>
of the United States or any state with respect to SEI; (v) any occurrence of
events which, in the reasonable judgment of CNB, shall have resulted or may
result in a material adverse change in the business, condition (financial or
other), income, operations or prospects of SEI or materially impair the
contemplated benefits of a Transaction to CNB; (vi) if there shall have been
instituted or pending any action, proceeding, claim or counterclaim by any
government or governmental, regulatory or administrative agency or authority or
tribunal or any other person, domestic or foreign, or before any court,
authority, agency or tribunal that, in the reasonable judgment of CNB,
materially and adversely affects the business, condition (financial or other),
income, operations or prospects of SEI or materially impairs the contemplated
benefits of a Transaction to CNB; (vii) SEI shall default under any agreement
among the Transaction Documents; or (viii) if SEI shall determine not to pursue
a Transaction or shall determine to pursue a Transaction which does not
contemplate payment in full of the Obligations at closing.

     "Forbearance Termination Date" means the earlier to occur of (i) the
closing of a Transaction; (ii) February 28, 2001, or (iii) the date upon which a
Forbearance Default occurs.

     "Loan Agreement" means that certain Accounts Receivable and Inventory Loan
Agreement dated as of June 26, 2000, by and between SEI and CNB, as amended by
that certain First Amendment to Accounts Receivable and Inventory Loan Agreement
dated as of August 16, 2000, by and between SEI and CNB, and by that certain
Second Amendment to Accounts Receivable and Inventory Loan Agreement dated as of
September 8, 2000, by and between SEI and CNB.

     "License Sale" means the transfer of one or more intellectual property
licenses, and all inventory related thereto, to a third party for cash
sufficient in amount to repay some portion of the Obligations at the closing
thereof.

     "License Sale Documents" means all documentation evidencing or effectuating
the License Sale.

                                       -4-
<PAGE>
     "Transaction" means the recapitalization of the business of SEI and/or the
sale of the stock and/or all or substantially all of the business assets of SEI
in an arms- length transaction with a bona fide third party.

     "Transaction Documents" means all documentation evidencing or effectuating
the Transaction.

                   SECTION 2. CONDITIONAL AGREEMENT TO FORBEAR
                   -------------------------------------------

     2.1  Provided that no Forbearance Default occurs, CNB hereby agrees to
refrain through the Forbearance Termination Date from exercising any of its
rights and remedies arising under the Loan Agreement or any of the Loan
Documents that may exist by virtue of the Existing Defaults.

     2.2  Nothing in this Agreement shall be construed as a waiver of or
acquiescence of any Existing Default, which shall continue in existence subject
only to the conditional agreement of CNB, as set forth herein, not to enforce
its rights and remedies for a limited period of time. Except as expressly
provided herein, the execution and delivery of this Agreement shall not: (a)
constitute an extension, modification, or waiver of any aspect of the Loan
Agreement or the other Loan Documents; (b) extend the Termination Date or the
due date of any of the Obligations; (c) give rise to any obligation on the part
of CNB to extend, modify or waive any term or condition of the Loan Agreement or
the other Loan Documents; or (d) give rise to any defenses or counterclaims to
the right of CNB to compel payment of the Obligations or otherwise enforce its
rights and remedies under the Loan Agreement and the other Loan Documents.
Except as expressly limited herein, CNB hereby expressly reserves all of its
rights and remedies under the Loan Agreement and the other Loan Documents and
under applicable law with respect to the Existing Defaults. From and after the
Forbearance Termination Date, CNB shall be entitled to enforce the Loan
Agreement and the other Loan Documents according to their terms without regard
to this Agreement.

                                       -5-
<PAGE>
                    SECTION 3. REPRESENTATIONS AND WARRANTIES
                    -----------------------------------------

     In consideration of the conditional agreement of CNB to the forbearance
herein contained, SEI hereby represents and warrants to CNB as of the date
hereof:

     3.1. In connection with the execution of this Agreement, and as of the date
of the execution of this Agreement, SEI has fully performed its disclosure and
reporting obligations to CNB as is required under (i) the Loan Agreement and the
other Loan Documents, including, without limitation, Sections 6.1, 6.2 and 6.3
of the Loan Agreement; and (ii) the Forbearance Agreement.

     3.2  The execution, delivery and performance of this Agreement by SEI is
within its corporate power and have been duly authorized by all necessary
corporate action on its respective part, and this Agreement constitutes a valid
and binding Agreement.

     3.3  All Loan Documents, including, without limitation, the Loan Agreement,
constitute valid and legally binding obligations of SEI and are enforceable
against SEI and the Collateral in accordance with the terms thereof. Without
limiting the generality of the foregoing, SEI acknowledges and agrees: (i) that
all of the Obligations are and have been since September 30, 2000, immediately
due and payable to CNB, without defense, set-off or counterclaim; (ii) that from
and after November 20, 2000, interest has accrued on the Obligations at the
default interest rate provided in Section 2.8 of the Loan Agreement, which rate
is five percent (5%) in excess of the rate otherwise applicable under the Loan
Documents; and (iii) that under Section 9.3 of the Loan Agreement, as a result
of the Existing Defaults, CNB, at its sole and exclusive option, has and
continues to have the right (a) to declare the principal of and accrued interest
on the Loans immediately due and payable in full; (b) to terminate the Loan
Agreement as to any future liability or obligation of CNB, without affecting
CNB's rights and security interest in the Collateral and without affecting the
Obligations owing by SEI to CNB; and/or (c) to exercise its rights and remedies
under the Loan Documents and all rights and

                                       -6-
<PAGE>
remedies of a secured party under the Code and under applicable laws without
respect to the Collateral.

                              SECTION 4. COVENANTS
                              --------------------

     In consideration of the conditional agreement of CNB to the forbearance
herein contained, SEI hereby covenants and agrees with CNB:

     4.1. SEI shall continuously exert its best efforts to accomplish the
following:

          4.1.1 Close a License Sale at a net purchase price of not less than
$1,000,000 as promptly as possible, but in no event later than January 13, 2003.
Without limiting the generality of the foregoing, promptly upon the closing of
such License Sale, SEI shall prepay the Obligations by transfer to CNB of all of
the proceeds from such License Sale in immediately available funds, with the
sole exception of those proceeds that are actually paid to the holder(s) of
valid, perfected security interest(s) in the Collateral that are senior to the
security interests of CNB; provided, however, that the amount of proceeds
excepted from payment to CNB shall not exceed $150,000.

          4.1.2 Close a Transaction at a net purchase price or on other terms to
provide proceeds sufficient to repay the Obligations in full at closing as
promptly as possible, but in no event later than February 28, 2003. Without
limiting the generality of the foregoing, SEI shall (i) circulate, no later than
February 14, 2003, draft documentation concerning such Transaction, which
documentation shall (a) specify the use of the net proceeds of such Transaction
to pay the Obligations, and (b) evidence, satisfactory to CNB, the ability of
the purchaser to close the Transaction by February 28, 2003; and (ii) have
entered into definitive documentation evidencing such Transaction on or before
February 21, 2003.

          4.1.3 Whenever and so often as reasonably requested by CNB, SEI shall
promptly, and in any event no later than CNB shall specify, execute and deliver
or cause to be executed and delivered all such other and further instruments,
documents or assurances, and

                                       -7-
<PAGE>
promptly do or cause to be done all such other and further things as may be
requested by CNB in order for SEI to close a Transaction, the proceeds from
which will be used to pay the Obligations.

          4.1.4 SEI shall promptly provide to CNB copies of all offers,
correspondence or other information received by SEI or its advisors in
connection with any discussions respecting a Transaction, License Sale or any
other sale of assets outside the ordinary course of SEI's business. SEI shall
promptly identify each and every party expressing interest in a Transaction,
License Sale or any other purchase of assets of SEI outside the ordinary course
of SEI's business and disclose to CNB the terms of any proposal, formal or
informal, written or unwritten, respecting a possible Transaction, License Sale
or any other sale of assets outside the ordinary course of SEI's business. All
information, documentation and other materials provided to CNB pursuant to or in
connection with this Agreement and relating to a Transaction, License Sale or
any other sale of assets outside the ordinary course of SEI's business shall be
confidential and shall not be disclosed by CNB to any person or entity, other
than (i) any advisor to CNB in connection with such advisor's rendition of
services to CNB in respect of SEI's indebtedness to CNB, (ii) under compulsion
of legal process, or (iii) in response to legal proceedings initiated by SEI.
Any advisor to CNB who receives such confidential information in accordance with
the foregoing shall be bound by the obligation and undertaking of CNB to
maintain the confidentiality of such information. Any and all documentation
evidencing a Transaction, License Sale or sale of assets outside the ordinary
course of SEI's business shall be in form and substance satisfactory to CNB. The
Transaction Documents and License Sale Documents shall provide for repayment to
CNB of the entirety of the Obligations in immediately available funds upon
closing of a Transaction or License Sale, respectively, and shall be
satisfactory to CNB as to the time, place and manner of such repayment.

     4.2  SEI shall provide to CNB (i) a daily financial report and Borrowing
Base Certificate in the form annexed hereto as Exhibit A by 1:30 p.m. each
Business Day; and (ii) a

                                       -8-
<PAGE>
monthly certification of inventory in the form annexed hereto as Exhibit B by
the fifth Business Day of the succeeding month.

     4.3  Upon request by CNB, SEI shall execute documentation assigning to CNB
any and all of its rights under all license agreements used in its business to
the fullest extent permitted under the License Agreement or any consent of the
Licenser obtained pursuant to this Agreement or otherwise. SEI shall use best
efforts to obtain the consent of licensees to such assignment and to CNB's
exercise of any and all of its remedies as assignee.

     4.4  SEI shall execute any documentation CNB may request to assure that the
Obligations are secured by valid and perfected first priority liens and security
interests in the Collateral.

     4.5  SEI shall, at any reasonable time requested by CNB, make their
officers, other management personnel and advisors available for meeting with CNB
and their consultants, including, without limitation, any attorneys, auditors,
consultants, appraisers, investment bankers, or other professionals designated
by CNB to discuss the Collateral or SEI's affairs, finances, financial
condition, and business operations, and shall make its books and records
available to CNB for such purpose and for any purpose permitted under the Loan
Documents.

     4.6  SEI shall pay, promptly upon presentation, all invoices for reasonable
fees and expenses of advisors to CNB, including reasonable attorneys' and
financial advisory fees and costs and the fees and costs of any Collateral
monitor employed by CNB, incurred in connection with the preparation and
negotiation of this Agreement, preparation and review of documentation
respecting a Transaction or a sale of assets outside the ordinary course of the
business of SEI, the Obligations, or the Collateral. Unless other satisfactory
arrangements are made, CNB shall be entitled to reduce the daily advance(s)
under the Revolving Line of Credit as necessary to effect such payments.

     4.7  From and after entry into this Agreement until a Forbearance
Termination Date, all collections, revenues and cash inflows of every kind to
SEI shall be applied against the

                                       -9-
<PAGE>
outstanding Revolving Line of Credit each day. Absent a Forbearance Default, CNB
will advance the amount permitted under the daily Borrowing Base Certificate
such that the outstanding principal amount of the Obligations shall not exceed
$3,824,067.03; provided however, that the dollar amount set forth above shall be
reduced by: (i) $850,000 on January 13, 2003; and provided further, however,
that the inventory advance rate used to calculate the Borrowing Base and the
amount permitted to be advanced under the Borrowing Base Certificate shall be
32%, rather than the inventory advance rate of 35% set forth in Section 1.6.1(b)
of the Loan Agreement.

     4.8  SEI shall pay $72,916.72 of principal outstanding under the existing
term loan, plus all outstanding interest thereon, on the second Business Day of
each month beginning January 3, 2003. Unless other satisfactory arrangements are
made, CNB shall be entitled to reduce the daily advance(s) under the Revolving
Line of Credit as necessary to effect such payment.

     4.9  Promptly upon execution of this Agreement, SEI shall pay CNB an
accommodation fee of $1,000, which fee shall be fully earned upon receipt.
Unless other satisfactory arrangements are made, CNB shall be entitled to reduce
the daily advance(s) under the Revolving Line of Credit as necessary to effect
such payment.

     4.10 SEI shall pay monthly, no later than the first business day of each
month, any and all outstanding accrued interest on the Obligations. Unless other
satisfactory arrangements are made, CNB shall be entitled to reduce the daily
advance(s) under the Revolving Line of Credit as necessary to effect such
payment.

     4.11 SEI shall continue to perform and observe all terms and conditions
contained in the Loan Documents that are not specifically subject to the
conditional forbearance provided in this Agreement.

                                      -10-
<PAGE>
     4.12 Without limiting the generality of the foregoing, SEI shall throughout
the term of this Agreement continue to fully perform its reporting and
disclosure obligations under the Loan Documents.

     4.13 SEI shall pay the entire outstanding amount of the Obligations on or
prior to the Forbearance Termination Date.

     4.14 Promptly upon execution of this Agreement, SEI shall pay to CNB a
restructuring fee of $62,500. Such fee shall be fully earned and nonrefundable
upon receipt, provided, however, that upon payment in full of the Obligations
prior to the Forbearance Termination Date, CNB shall rebate to SEI a portion of
such fee equal to $833.33 times the number of calendar days between (x) the
later of (i) the date of such payment in full; and (ii) January 10, 2003
(excluding such date); and (y) February 28, 2003.

                            SECTION 5. MISCELLANEOUS
                            ------------------------

     5.1  Headings. Section headings in this Agreement are included herein for
convenience of reference only and shall not constitute a part of this Agreement
for any other purpose.

     5.2  Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND SHALL BE
CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA
WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES.

     5.3  Counterparts. This Agreement may be executed in any number of
counterparts, and by different parties hereto in separate counterparts, each of
which when so executed and delivered shall be deemed an original, but all such
counterparts together shall constitute but one and the same instrument.

                                      -11-
<PAGE>
     5.4  Continued Effectiveness. The terms of the Loan Agreement and of each
of the other Loan Documents remain unchanged, and all such Loan Documents shall
remain in full force and effect and are hereby confirmed and ratified.

     5.5  No Novation. This Agreement shall not be deemed or construed to be a
satisfaction, reinstatement, novation or release of the Loan Agreement or any of
the other Loan Documents or, except as expressly provided herein, a waiver by
CNB of any of its rights and remedies under the Loan Agreement or any of the
other Loan Documents at law or in equity.

     5.6  Reaffirmation. SEI hereby reaffirms each and every covenant,
condition, obligation, and provision set forth in the Loan Documents.

     5.7  Construction. SEI acknowledges that it has been represented by its own
legal counsel in connection with the Loan Documents and this Agreement, that it
has exercised independent judgment with respect to the Loan Documents and this
Agreement, and that it has not relied on CNB or on their counsel for any advice
with respect to the Loan Documents or this Agreement.

                                      -12-
<PAGE>
     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the date set forth above, by the respective duly authorized
officers.

                             SIGNATURE EYEWEAR, INC., a California Corporation

                             By:
                                 -----------------------------------------
                                 Name
                                       -----------------------------------
                                 Title
                                       -----------------------------------

                             CITY NATIONAL BANK, a national banking association

                             By:
                                 -----------------------------------------
                                 Name
                                       -----------------------------------
                                 Title
                                       -----------------------------------

                                      -13-
<PAGE>
                    AMENDMENT TO SECOND FORBEARANCE AGREEMENT
                    -----------------------------------------

     This Amendment to Second Forbearance Agreement (this "Amendment") is
entered into as of January 30, 2003, by and among Signature Eyewear, Inc.
("SEI") and City National Bank ("CNB").

                                    RECITALS:
                                    ---------

     WHEREAS, SEI and CNB are parties to a certain Second Forbearance Agreement
dated as of December 31, 2002 (the "Second Forbearance Agreement"); and

     WHEREAS, SEI has requested that CNB amend certain provisions contained in
the Second Forbearance Agreement; and

     WHEREAS, CNB is willing to so amend the Second Forbearance Agreement in
accordance with the terms and conditions hereof; and

     WHEREAS, all initially capitalized terms used but not defined herein shall
have the meanings ascribed to them in the Second Forbearance Agreement, as
amended hereby;

     NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

     1.   Amendment to the Second Forbearance Agreement.

          a. Section 4.1.1 of the Second Forbearance Agreement is hereby amended
and restated in its entirety to read as follows:

          4.1.1 Close a License Sale at a net purchase price of not less than
$1,000,000 as promptly as possible, but in no event later than February 4, 2003.
Without limiting the generality of the foregoing, promptly upon the closing of
such License Sale, SEI shall prepay the Obligations (a) by transfer to CNB of
all of the proceeds from such License Sale in immediately available funds, with
the sole exception of those proceeds that are actually paid to the holder(s)

                                       -1-
<PAGE>
of valid, perfected security interest(s) in the Collateral that are senior to
the security interests of CNB; provided, however, that the amount of proceeds
excepted from payment to CNB shall not exceed $500,000; and (b) by transfer to
CNB of the amount of $500,000 in immediately available funds.

     2.   Condition Precedent to the Effectiveness of this Amendment. The
effectiveness of this Amendment is subject to the fulfillment, to the
satisfaction of CNB and its counsel, of the following conditions:

          a. The representations and warranties in this Amendment and the Second
Forbearance Agreement as amended by this Amendment shall be true and correct in
all material respects on and as of the date hereof, as though made on such date;
and

          b. Promptly upon execution of this Amendment, SEI shall pay to CNB an
accommodation fee of $5,000, which fee shall be fully earned and nonrefundable
upon receipt.

     3.   Miscellaneous.

          a. Headings. Section headings in this Amendment are included herein
for convenience of reference only and shall not constitute a part of this
Agreement for any other purpose.

          b. Governing Law. THIS AMENDMENT SHALL BE GOVERNED BY, AND SHALL BE
CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA
WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES.

          c. Counterparts. This Amendment may be executed in any number of
counterparts, and by different parties hereto in separate counterparts, each of
which when so

                                       -2-
<PAGE>
executed and delivered shall be deemed an original, but all such counterparts
together shall constitute but one and the same instrument.

          d. Continued Effectiveness. The terms of the Loan Agreement and of
each of the other Loan Documents remain unchanged, and all such Loan Documents
shall remain in full force and effect and are hereby confirmed and ratified.

          e. No Novation. This Amendment shall not be deemed or construed to be
a satisfaction, reinstatement, novation or release of the Second Forbearance
Agreement, the Loan Agreement or any of the other Loan Documents or, except as
expressly provided herein, a waiver by CNB of any of its rights and remedies
under the Second Forbearance Agreement, the Loan Agreement or any of the other
Loan Documents at law or in equity.

          f. Reaffirmation. SEI hereby reaffirms each and every covenant,
condition, obligation, and provision set forth in the Loan Documents.

          g. Construction. SEI acknowledges that it has been represented by its
own legal counsel in connection with the Loan Documents, the Second Forbearance
Agreement and this Amendment, that it has exercised independent judgment with
respect to the Loan Documents, the Second Forbearance Agreement and this
Amendment, and that it has not relied on CNB or on their counsel for any advice
with respect to the Loan Documents, the Second Forbearance Agreement or this
Amendment.

                                       -3-
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed as of the date set forth above, by the respective duly authorized
officers.

                             SIGNATURE EYEWEAR, INC., a California Corporation

                             By:
                                 -----------------------------------------
                                 Name
                                       -----------------------------------
                                 Title
                                       -----------------------------------

                             CITY NATIONAL BANK, a national banking association

                             By:
                                 -----------------------------------------
                                 Name
                                       -----------------------------------
                                 Title
                                       -----------------------------------

                                       -4-
<PAGE>
                               CITY NATIONAL BANK
                           SPECIAL ASSETS DEPARTMENT
                       606 SOUTH OLIVE STREET, 20TH FLOOR
                         LOS ANGELES, CALIFORNIA 90014
                                 (213) 347-2518
                               FAX (213) 347-2545
                              CHEATHER@CITYNTL.COM

C.R. Heatherly
Vice President

February 21, 2002

VIA U.S. MAIL, POSTAGE PREPAID, CERTIFIED, RETURN COPY REQUESTED

Signature Eyewear, Inc.
498 North Oak Street
Inglewood, California 90302
Attention: Michael Prince, Chief Financial Officer

    Re:  Notice of Waiver of Default of Second Forbearance Agreement

Mr. Prince:

     Reference is made to: (1) that certain Accounts Receivable and Inventory
Loan Agreement (the "Loan Agreement"), dated June 26, 2000, by and among
Signature Eyewear, Inc. ("SBI"), and City National Bank ("CNB"); (2) that
certain Second Forbearance Agreement (as amended, the "Second Forbearance
Agreement"), dated December 31, 2002, by and among SEI and CNB; and (3) that
certain Amendment to Second Forbearance Agreement (the "Amendment"), dated
January 30, 2003, by and among SEI and CNB. All capitalized terms used herein
and not otherwise defined shall have the meanings assigned to such terms in the
Second Forbearance Agreement, or, if not defined in the Second Forbearance
Agreement, in the Amendment.

     Please take notice that the Forbearance Default pursuant to Section 4.7 of
the Second Forbearance Agreement, by reason of the outstanding principal amount
of the Obligations being reduced only by $500,000, rather than $850,00 as
required under the terms of the Second Forbearance Agreement, is hereby waived.

<PAGE>

Mr. Michael Prince
February 21, 2003
Page 2

Nothing in this Notice of Waiver of Default shall limit any rights CNB may have
under the Loan Agreement, the Second Forbearance Agreement, or under any other
agreement or applicable law, and CNB expressly reserves all of its claims,
rights, remedies, causes of action and defenses of every type and nature
whatsoever against any party, including but not limited to SEI.

                                   Sincerely,

                                   /s/ Charles Heatherly
                                   --------------------------------------
                                   Charles Heatherly
                                   By: City National Bank
                                   Its: Vice President

cc:     Joseph A. Eisenberg, Esq.
        Jeffer, Mangels, Butler & Marmaro, LLP
        1900 Avenue of the Stars, 8th Floor
        Los Angeles, CA  90067-4308
Re:     Notice of Waiver of Default of Second Forbearance AgreementEXHIBIT 4.1

                 SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT

         SECOND AMENDMENT (this "AMENDMENT"),  dated as of February 17, 2003, to
LOAN  AND  SECURITY  AGREEMENT,  dated as of  September  24,  2001 (as  amended,
modified or supplemented from time to time, the "LOAN AGREEMENT"),  by and among
LASALLE BUSINESS CREDIT, LLC, a Delaware limited liability company, successor by
merger to LASALLE BUSINESS CREDIT, INC., a Delaware corporation ("LASALLE"), and
PROTECTIVE  APPAREL  CORPORATION OF AMERICA,  a New York  corporation  ("PACA"),
POINT BLANK BODY ARMOR, INC., a Delaware  corporation  ("POINT BLANK"),  and NDL
PRODUCTS,  INC., a Florida  corporation  ("NDL",  and with PACA and Point Blank,
collectively, the "BORROWERS" and each, a "BORROWER"), and DHB INDUSTRIES, INC.,
a Delaware  corporation  (f/k/a DHB Capital Group,  Inc.,  the "PARENT").  Terms
which are capitalized in this Amendment and not otherwise defined shall have the
meanings ascribed to such terms in the Loan Agreement.

         WHEREAS,  the Borrowers and Parent have requested that LaSalle  consent
to an increase in the Maximum  Revolving Loan Limit and to the  modification  of
certain other terms and provisions contained in the Loan Agreement; and

         WHEREAS,  LaSalle  has  consented  to such  requests,  on the terms and
subject to the satisfaction of the conditions contained in this Amendment;

         NOW, THEREFORE,  in consideration of the foregoing,  and for other good
and  valuable  consideration,  the receipt and  sufficiency  of which are hereby
acknowledged, the parties hereto hereby agree as follows:

         A.  AMENDMENTS.  Effective upon the  satisfaction of the conditions set
forth in SECTION TWO hereof,  the Loan Agreement  shall be and is hereby amended
as of February 17, 2003 as follows:

              (i)  SECTION  2(A).  REVOLVING  LOANS.  Section  2(a) of the  Loan
Agreement is amended by deleting in its entirety clause (y) of the proviso found
immediately  after clause (iv)  thereof,  and  substituting  in lieu thereof the
following new clause (y):

              "(y) the Revolving Loan Limit with respect to Revolving Loans made
              to all Borrowers,  at any one time outstanding,  shall in no event
              exceed the following applicable amount:

              (I) Thirty-Five  Million Dollars  ($35,000,000)  during the period
              commencing  on  February  18,  2003 and ending on (and  including)
              August 31, 2003, (II) Thirty Million Dollars  ($30,000,000) during
              the  period  commencing  on  September  1, 2003 and ending on (and
              including) November 30, 2003 and (III) Twenty-Five Million Dollars
              ($25,000,000)  at all times on and after  December  1, 2003  (such
              amount,  as in effect on any date of  determination,  the "Maximum
              Revolving Loan Limit")."

<PAGE>

              (ii) SECTION 8. COLLECTIONS.  SECTION 8 is amended by deleting the
introductory  portion of clause (iii) which  follows the  definition of the term
"Triggering Event", and by substituting the following in lieu thereof:

              "(iii) during any sixty-day period ending on or after the date one
              hundred  twenty (120) days from the date of this  Agreement,  less
              than ninety percent (90%);"

              (iii) SECTION 10.  TERMINATION;  AUTOMATIC RENEWAL.  SECTION 10 is
amended by deleting the penultimate  sentence  thereof,  and by substituting the
following in lieu thereof:

              "In the event that the  Borrowers  elect to and in fact  terminate
              this  Agreement  and  prepay all of the  Liabilities  on or before
              February  28,  2004,  then,  in such  event,  on the  date of such
              prepayment  the  Borrowers  agree  jointly and severally to pay to
              Lender as a  prepayment  fee,  in  addition  to the payment of all
              other  Liabilities,  an  amount  equal to one per cent (1%) of the
              Maximum Revolving Loan Limit in effect on such date."

         B. CONDITIONS PRECEDENT. This Amendment shall become effective when all
of the following  conditions,  the  satisfaction of each of which is a condition
precedent to the  effectiveness of this Amendment,  shall have occurred or shall
have been waived in writing by LaSalle.

              (i) LaSalle shall have received each of the following, which shall
be in form and substance reasonably satisfactory to it:

              (a) this Amendment, duly executed by each Borrower and Parent, and
         by David H. Brooks;

              (b) an Amended and Restated Revolving Note, in the form of EXHIBIT
         A hereto, in the principal amount of $35,000,000, duly executed by each
         Borrower;

              (c) an opinion of counsel to the  Borrowers  and Parent  regarding
         each Borrower's and Parent's due incorporation,  valid existence,  good
         standing and power and  authority to execute  this  Amendment,  the due
         authorization,  execution  and  delivery  of  this  Amendment  by  each
         Borrower and Parent,  the enforceability of this Amendment against each
         Borrower and Parent,  and such other matters as LaSalle and its counsel
         may reasonably require;

              (d) a Certificate of the Secretary or Assistant  Secretary of each
         Borrower and of Parent (A) relating to the adoption of  resolutions  by
         each  such  Borrower's  and  Parent's  respective  Board  of  Directors
         approving this Amendment and the other documents  executed or delivered
         in connection herewith by such party, (B) certifying that no amendments
         have been made to each  such  Borrower's  or  Parent's  Certificate  of
         Incorporation,  as amended,  other than the Certificate of Designations
         and Preferences executed on December 14, 2001, and each such Borrower's
         or Parent's  by-laws,  as amended,  since  September 24, 2001,  and (C)
         further  certifying  the names and  incumbency of officers of each such

<PAGE>

         Borrower and of Parent  authorized to sign this Amendment and all other
         documents executed or delivered in connection  herewith,  and the names
         and validity of signatures of such officers.

              (ii) LaSalle shall have received payment, in cash, of an amendment
fee in the amount of $25,000, which fee shall be non-refundable and deemed fully
earned when paid, and the Borrowers authorize LaSalle to charge any loan account
of the Borrowers for such fee.

              (iii) All  representations  and  warranties  set forth in the Loan
Agreement  (except for such inducing  representations  and warranties  that were
only  required  to be true and  correct  as of a prior  date)  shall be true and
correct in all material respects on and as of the effective date hereof,  and no
Default or Event of Default shall have occurred and be continuing.

              (iv) No event or  development  shall have occurred  since December
31, 2002 which event or  development  has had or is reasonably  likely to have a
Material Adverse Effect.

              (v) LaSalle shall have  received a certificate  from each Borrower
and  Parent,  executed by the  chairman of each such party,  as to the truth and
accuracy of paragraphs (c) and (d) of this SECTION TWO.

              (vi) All  corporate  and legal  proceedings  and all documents and
instruments  executed or delivered in connection  with this  Amendment  shall be
satisfactory  in form and substance to LaSalle and its counsel,  and LaSalle and
its counsel  shall have  received all  information  and copies of all  documents
which it or its counsel may have reasonably requested in connection herewith and
the matters contemplated hereunder,  such documents,  when requested by them, to
be certified by appropriate corporate authorities.

              (vii) There shall be no action,  suit or proceeding  pending or to
any Borrower's or Parent's  knowledge overtly threatened against any Borrower or
Parent  before  any  court  (including  any  bankruptcy  court),  arbitrator  or
governmental or administrative body or agency which challenges or relates to the
consummation of this Amendment or the other transactions contemplated herein.

              (viii)  LaSalle  shall  have  received  such  further  agreements,
consents,  instruments  and  documents  as may be  necessary  or  proper  in the
reasonable  opinion of LaSalle and its counsel to carry out the  provisions  and
purposes of this Amendment.

         C. REPRESENTATIONS AND WARRANTIES. Each Borrower and Parent each hereby
represents and warrants (which  representations and warranties shall survive the
execution and delivery hereof) to LaSalle that:

              (i) Each  Borrower  and Parent has the  corporate  or other power,
authority and legal right to execute, deliver and perform this Amendment and the
other instruments, agreements, documents and transactions contemplated hereby to
which it is a party,  and has taken  all  actions  necessary  to  authorize  the
execution, delivery and performance of this Amendment and the other instruments,
agreements,  documents to which it is a party and the transactions  contemplated
hereby and thereby;

<PAGE>

              (ii) No  consent  of any Person  (including,  without  limitation,
stockholders  or creditors of any Borrower or Parent,  as the case may be) other
than LaSalle,  and no consent,  permit,  approval or authorization of, exemption
by,  notice or report  to, or  registration,  filing or  declaration  with,  any
governmental  authority is required in connection  with the execution,  delivery
and performance by each Borrower and Parent,  or the validity or  enforceability
against such parties,  of this Amendment and the other instruments,  agreements,
documents and transactions contemplated hereby to which they are a party;

              (iii) This  Amendment  has been duly  executed  and  delivered  on
behalf of each Borrower and Parent by their respective duly authorized officers,
and  constitutes  the legal,  valid and binding  obligation of such Borrower and
Parent, enforceable in accordance with its terms, except to the extent that such
enforceability   may  be   limited   by   applicable   bankruptcy,   insolvency,
reorganization,  moratorium  and similar laws  affecting the rights of creditors
generally or equitable  remedies  (whether  arising in a proceeding at law or in
equity);

              (iv) No  Borrower  or  Parent  is in  material  default  under any
indenture, mortgage, deed of trust, agreement or other instrument to which it is
a party or by which it may be bound.  Neither the execution and delivery of this
Amendment,  nor the consummation of the transactions  herein  contemplated,  nor
compliance with the provisions hereof will (i) violate any law or regulation, or
(ii)  result in or cause a violation  by any  Borrower or Parent of any order or
decree of any court or government  instrumentality,  or (iii)  conflict with, or
result in the breach of, or constitute a default under, any indenture, mortgage,
deed of trust,  material  agreement or other  material  instrument to which each
such Borrower or Parent is a party or by which any of them may be bound, or (iv)
result in the creation or imposition of any lien,  charge,  or encumbrance  upon
any of the property of each such Borrower or Parent, except in favor of LaSalle,
to secure the  Liabilities,  or (v) violate any provision of the  Certificate of
Incorporation, By-Laws or any capital stock or similar equity instrument of each
such Borrower or Parent;

              (v) No Default or Event of Default has occurred and is  continuing
on the date hereof;

              (vi) Since the date of  Parent's  consolidated  and  consolidating
financial  statements  for the twelve (12) month period ended December 31, 2002,
no change or event has occurred which has had or is reasonably  likely to have a
Material Adverse Effect;

              (vii) Upon execution of this Amendment and the satisfaction of the
conditions  set forth in SECTION TWO hereof,  each of Parent and each  Borrower,
each in its capacity as Guarantor under the Loan Agreement, agrees that the term
"Liabilities"  shall  include  any and all  Liabilities  arising  under the Loan
Agreement,  as amended by this  Amendment,  including but not limited to any and
all Revolving  Loans  resulting from the increase in the Maximum  Revolving Loan
Limit  from  $25,000,000  to  $35,000,000  and  all  interest  accruing  on such
Revolving Loans;

              (viii)  Parent and its  Subsidiaries,  taken as a whole,  are, and
after giving effect to the transactions contemplated by this Amendment, will be,
solvent,  able to pay its debts as they become due,  has capital  sufficient  to
carry on its business,  now owns property  having a value both at fair valuation
and at present fair saleable  value greater than the amount  required to pay its
debts, and will not be rendered  insolvent by the execution and delivery of this

<PAGE>

Amendment  or  any  of  the  other  agreements  instruments  being  executed  in
connection herewith or by completion of the transactions  contemplated hereunder
or thereunder.

         D. GENERAL PROVISIONS.

              (i)  Each  Borrower,  the  Parent,  each DHB  Subsidiary  and each
Guarantor acknowledges its understanding that effective January 1, 2003, LaSalle
Business  Credit,  Inc.  merged with and into LaSalle  Business  Credit,  LLC, a
Delaware limited liability company, and that LaSalle Business Credit, LLC is the
survivor of such merger.  Each such Person  agrees that on and after  January 1,
2003, all references to "LaSalle  Business  Credit,  Inc." contained in the Loan
Agreement or in any of the Other  Agreements  are hereby deemed to read "LaSalle
Business Credit,  LLC".  Finally,  each such Person acknowledges and consents to
the filing,  without  such  Person's  signature,  of an  amendment of each UCC-1
financing  statement  filed  against  such  Person in  connection  with the Loan
Agreement,  which  amendment shall reflect the change in the name of the secured
party of record  from  "LaSalle  Business  Credit,  Inc." to  "LaSalle  Business
Credit, LLC."

              (ii) Except as herein  expressly  amended,  the Loan Agreement and
all other  agreements,  documents,  instruments  and  certificates  executed  in
connection  therewith,  are  ratified  and  confirmed  in all respects and shall
remain in full force and effect in accordance with their respective terms.

              (iii) All references in the Other Agreements to the Loan Agreement
shall mean the Loan  Agreement  as  amended  hereby  and as  hereafter  amended,
supplemented or modified from time to time. From and after the date hereof,  all
references in the Loan  Agreement to "this  Agreement,"  "hereof,"  "herein," or
similar  terms,  shall mean and refer to the Loan  Agreement  as amended by this
Amendment.

              (iv)  This  Amendment  may  be  executed  by  the  parties  hereto
individually or in combination, in one or more counterparts, each of which shall
be an original and all which shall constitute one and the same agreement.

              (v)  This  Amendment  shall  be  governed  and  controlled  by the
internal laws of the State of New York.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

<PAGE>

         IN WITNESS WHEREOF,  LaSalle, each Borrower,  each Guarantor,  each DHB
Subsidiary  and Parent have caused this  Amendment to be duly  executed by their
respective officers thereunto duly authorized as of the day and year first above
written.

DHB ARMOR GROUP, INC.                    LASALLE BUSINESS CREDIT, LLC,
                                         successor by merger to LaSalle Business
                                         Credit, Inc.

By: /s/ DAVID H. BROOKS                  By: /s/ MICHAEL ALIBERTO III
   ________________________________         _________________________________
   Name:  David H. Brooks                   Name:  Michael Aliberto III
   Title: COB                               Title:

DHB SPORTS GROUP, INC.                   PROTECTIVE APPAREL CORPORATION
                                         OF AMERICA

By: /s/ DAVID H. BROOKS                  By: /s/ DAVID H. BROOKS
   ________________________________         _________________________________
   Name:  David H. Brooks                   Name:  David H. Brooks
   Title: COB                               Title: COB

LANXIDE ARMOR PRODUCTS, INC.             POINT BLANK BODY ARMOR, INC.

By: /s/ DAVID H. BROOKS                  By: /s/ DAVID H. BROOKS
   ________________________________         _________________________________
   Name:  David H. Brooks                   Name:  David H. Brooks
   Title: COB                               Title: COB

ORTHOPEDIC PRODUCTS, INC.                NDL PRODUCTS, INC.

By: /s/ DAVID H. BROOKS                  By: /s/ DAVID H. BROOKS
   ________________________________         _________________________________
   Name:  David H. Brooks                   Name:  David H. Brooks
   Title: COB                               Title: COB

                                         DHB INDUSTRIES INC.

                                         By: /s/ DAVID H. BROOKS
                                            ________________________________
                                            Name:  David H. Brooks
                                            Title: COB

ACKNOWLEDGED AND CONSENTED TO:

/s/DAVID H. BROOKS
______________________________
DAVID H. BROOKS

<PAGE>

                                    EXHIBIT A

                          FORM OF AMENDED AND RESTATED
                                 REVOLVING NOTE

ORIGINAL DATE OF EXECUTION: SEPTEMBER 24, 2001
DATE OF AMENDMENT AND RESTATEMENT: AS OF FEBRUARY 17, 2003

$35,000,000.00                                                NEW YORK, NEW YORK

         FOR VALUE RECEIVED,  PROTECTIVE APPAREL  CORPORATION OF AMERICA,  POINT
BLANK  BODY  ARMOR,  INC.  and  NDL  PRODUCTS,   INC.  (each  a  "Borrower"  and
collectively, the "Borrowers") jointly and severally promise to pay to the order
of LASALLE BUSINESS CREDIT, LLC, successor by merger to LASALLE BUSINESS CREDIT,
INC.  (the  "Lender"),  at its  offices  located  at 135 South  LaSalle  Street,
Chicago,  Illinois  60603,  the principal sum of Thirty-Five  Million and No/100
Dollars  ($35,000,000.00) on the Maturity Date, which shall mean the last day of
the Original  Term, or the  applicable  Renewal Term, in the event that the Loan
Agreement (as defined below) is renewed,  as the case may be, or so much of such
principal sum as shall be  outstanding  and unpaid on the Maturity  Date, all as
more fully set forth in the Loan and Security  Agreement,  dated as of September
24, 2001 (as the same may be amended,  modified,  supplemented  or restated from
time to time, the "Loan  Agreement"),  by and among each of the  Borrowers,  DHB
Industries, Inc., as Guarantor, the DHB Subsidiaries and the Lender. Terms which
are  capitalized  in this Amended and Restated  Revolving  Note (the  "Revolving
Note") but are not otherwise defined shall have the meanings ascribed to them in
the Loan Agreement.  The Borrowers  further promise jointly and severally to pay
(a) the principal of the Revolving Loans, as set forth in Section 2(d)(i) of the
Loan Agreement and (b) interest on the  outstanding  principal  amount hereof on
the dates and at the rates provided in the Loan Agreement,  from the date hereof
until  payment  in  full  hereof.  This  Revolving  Note is  referred  to in and
delivered pursuant to the Loan Agreement,  and is subject to and entitled to all
provisions and benefits thereof.

         The Borrowers  hereby authorize the Lender to charge any account of the
Borrowers  maintained with the Lender for all sums payable hereunder as and when
such sums  become  due.  If payment  hereunder  becomes due and payable on a day
which is not a Business  Day, the due date thereof shall be extended to the next
succeeding  Business  Day,  and  interest  shall be payable  thereon at the rate
specified during such extension. Credit shall be given for payments made, in the
manner and at the times provided in the Loan Agreement.  It is the intent of the
parties that the rate of interest and other charges to the Borrowers  under this
Revolving  Note shall be lawful;  therefore,  if for any reason the  interest or
other charges payable hereunder are found by a court of competent  jurisdiction,
in a final  determination,  to exceed the limit  which the  Lender may  lawfully
charge the Borrowers, then the obligation to pay interest or other charges shall
automatically  be reduced  to such  limit  and,  if any amount in excess of such
limit shall have been paid, then such amount shall be refunded to the Borrowers.

<PAGE>

         The principal and all accrued interest  hereunder may be prepaid by the
Borrowers,  in part or in full,  at any  time;  PROVIDED,  HOWEVER,  that if the
Borrowers terminate the Loan Agreement prior to the Maturity Date, the Borrowers
may be  required to pay a  prepayment  fee as provided in Section 10 of the Loan
Agreement.

         The  Borrowers  waive  the  benefit  of any law  that  would  otherwise
restrict  or limit the  Lender in the  exercise  of its  right,  which is hereby
acknowledged, to set off against the Liabilities, without notice and at any time
hereafter,  any amounts  owing from the Lender to the  Borrowers.  The Borrowers
agree that the Lender  shall not be liable for any error in judgment or mistakes
of fact or law,  other than for gross  negligence.  To the extent the  Borrowers
have any  counterclaims,  they  agree to assert  any and all such  counterclaims
(other than compulsory counterclaims) by separate action.

         The Borrowers,  any other party liable with respect to the  Liabilities
evidenced hereby and any and all endorsers and accommodation  parties,  and each
one of them, if more than one, waive any and all presentment,  demand, notice of
dishonor,  protest,  and all other  notices and demands in  connection  with the
enforcement of the Lender's rights hereunder.

         The Revolving Loans evidenced hereby have been made, and this Revolving
Note has been  delivered,  at New York,  New York.  THIS REVOLVING NOTE SHALL BE
GOVERNED  AND  CONTROLLED  BY THE  INTERNAL  LAWS OF THE STATE OF NEW YORK AS TO
INTERPRETATION,  ENFORCEMENT,  VALIDITY, CONSTRUCTION,  EFFECT, AND IN ALL OTHER
RESPECTS,  INCLUDING WITHOUT  LIMITATION,  THE LEGALITY OF THE INTEREST RATE AND
OTHER  CHARGES,  and  shall  be  binding  upon the  Borrowers  and each of their
successors and assigns. If this Revolving Note contains any blanks when executed
by the  Borrowers,  the  Lender  is  hereby  authorized,  without  notice to the
Borrowers,  to complete  any such blanks  according  to the terms upon which the
Revolving  Loan  or  Revolving  Loans  were  granted.  Wherever  possible,  each
provision of this  Revolving  Note shall be  interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this Revolving
Note shall be prohibited by or be invalid under such law, such  provision  shall
be  severable,  and  be  ineffective  to  the  extent  of  such  prohibition  or
invalidity,  without  invalidating  the remaining  provisions of this  Revolving
Note.

         To induce  the Lender to make the  Revolving  Loans  evidenced  by this
Revolving  Note, the Borrowers (i)  irrevocably  agree that all actions  arising
directly or  indirectly as a result or in  consequence  of this  Revolving  Note
shall be instituted and litigated only in courts having situs in the City of New
York,  New  York;  PROVIDED,  that  Lender  may elect to  commence  an action or
proceeding with respect to the Collateral in another  jurisdiction,  (ii) hereby
consent to the  exclusive  jurisdiction  and venue of any State or Federal Court
located and having its situs in said city,  and (iii) waive any objection  based
on forum non-conveniens.  IN ADDITION,  THE BORROWERS HEREBY WAIVE TRIAL BY JURY
IN ANY ACTION OR  PROCEEDING  WHICH  PERTAINS  DIRECTLY  OR  INDIRECTLY  TO THIS
REVOLVING NOTE, THE LIABILITIES, THE COLLATERAL, ANY ALLEGED TORTIOUS CONDUCT BY
ANY BORROWER OR THE LENDER OR WHICH IN ANY WAY,  DIRECTLY OR INDIRECTLY,  ARISES
OUT OF OR RELATES TO THE  RELATIONSHIP  BETWEEN  THE  BORROWERS  AND THE LENDER,
waive personal service of any and all process, and consent that all such service
of process may be made by certified mail, return receipt requested,  directed to

<PAGE>

the Borrowers at the address indicated in the Lender's  records;  and service so
made shall be complete  five (5) days after the same has been  deposited  in the
U.S. mails as aforesaid.

         This  Revolving  Note amends,  supersedes  and replaces in its entirety
that certain  Amended and Restated  Revolving Note (the "Original  Note") in the
original   principal   amount  of   Twenty-Five   Million  and  No/100   Dollars
($25,000,000)  dated as of June 28, 2002,  executed by the Borrowers and payable
to the order of the  Lender;  PROVIDED,  HOWEVER,  that all of the  indebtedness
evidenced  by the  Original  Note  continues  to be  outstanding  as of the date
hereof, no cancellation,  adjustment or novation of such  indebtedness  shall be
deemed to have  occurred  on account of the  amendment  and  restatement  of the
Original Note pursuant to this Revolving Note, and the Borrowers'  execution and
delivery of this Revolving Note shall constitute an express  acknowledgment  and
confirmation of, and agreement with, the foregoing.

         IN WITNESS  WHEREOF,  each of the Borrowers has executed this Revolving
Note on the date first above set forth.

                                     PROTECTIVE APPAREL CORPORATION OF AMERICA

                                     By:/s/ DAVID H. BROOKS
                                        ______________________________________
                                        Title: COB
                                        Name:  David H. Brooks

                                     POINT BLANK BODY ARMOR, INC.

                                     By:/s/ DAVID H. BROOKS
                                        ______________________________________
                                        Title: COB
                                        Name:  David H. Brooks

                                     NDL PRODUCTS, INC.

                                     By:/s/ DAVID H. BROOKS
                                        ______________________________________
                                        Title: COB
                                        Name:  David H. Brooks

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