Document:

ASSET PURCHASE AGREEMENT

     ASSET PURCHASE  AGREEMENT  dated February 2, 1995, by and among Alan Cohen,
as  Chapter  11  Trustee  for CIRO INC.,  CIRO OF BOND  STREET,  INC.,  and CIRO
CREATIONS,  INC.  (collectively,  "Trustee") and MERCHANTS T&F, INC., a New York
corporation,  with  offices  at 445  Fifth  Avenue,  New  York,  New York  10016
("Purchaser").

                                   WITNESSETH

     WHEREAS,  Trustee is the  Chapter  11  Trustee in certain  Chapter 11 cases
jointly  administered as Case No. 94-B-43389 (the "Cases") pending in the United
States Bankruptcy Court, Southern District of New York (the "Court"); and

     WHEREAS,  Trustee has succeeded by operation of law to all right, title and
interest  previously  enjoyed by Ciro Inc., Ciro of Bond Street,  Inc., and Ciro
Creations,  Inc., the debtors in the Cases (collectively,  the "Debtors") in and
to the business and assets of the Debtors; and

     WHEREAS,  Trustee desires to sell and transfer to Purchaser,  and Purchaser
desires to acquire from Trustee,  all of Trustee's right,  title and interest in
and to said assets, all on the terms and conditions set forth herein; and

     WHEREAS,  the sale and transfer of said assets by Trustee to Purchaser  was
approved by an Order  Authorizing  Sale of Assets Pursuant to 11 U.S.C.  363(b),
(f) of the Court dated January 23, 1995, and this Agreement is pursuant  thereto
and not in limitation thereof;

<PAGE>

     NOW, THEREFORE, in consideration of the mutual representations, warranties,
covenants  and  agreements  herein  set  forth,  and  other  good  and  valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:

                                    ARTICLE I

                                 SALE OF ASSETS

     1.1  Subject  Assets.  (a)  Subject  to the  terms and  conditions  of this
Agreement, Trustee hereby sells and transfers to Purchaser, and Purchaser hereby
purchases from Trustee, all of Trustee's right, title and interest in and to the
assets,  properties,  rights and  claims of every  type and nature and  wherever
situated, real, personal, tangible,  intangible or contingent,  previously owned
or held by the  Debtors and used in the conduct of the  Debtors'  business  (the
"Business")  and  currently  owned or held by Trustee,  other than the  Excluded
Assets (collectively,  the "Subject Assets"), including, without limitation, all
of  Trustee's  right,  title and  interest,  if any,  in the  following  assets,
properties  or rights which are or were used or held for use in the Business and
which on the date hereof are owned or held by Trustee:

          (i) the machinery,  equipment,  furniture,  tools,  supplies and other
     tangible personal property wherever located;

          (ii) the inventory, raw materials, work-in-process and finished goods,
     and stores, supplies and spare parts,

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     wherever located (including, without limitation, inventory in transit);

          (iii) all foreign,  federal,  state and local  governmental  licenses,
     permits,  approvals and authorizations,  whether foreign or domestic, which
     are assignable;

          (iv) all trade names,  trademarks and service marks,  patents,  patent
     rights,  copyrights,  whether domestic or foreign (as well as applications,
     registrations or certificates for any of the foregoing),  inventions, trade
     secrets,  proprietary  processes,  software and other intellectual property
     rights, including, without limitation, those listed on Schedule 1.1(a) (iv)
     hereto;

          (v) all license agreements and franchise agreements listed on Schedule
     1.1(v) hereto (the "Assumed Contracts");

          (vi) all books and  records,  including  computerized  records and any
     associated software and documentation, including, without limitation, books
     and records relating to sales or marketing information,  customer lists and
     information,  sales  invoices and  personnel  records for the  employees of
     Debtors,  except  that the  Trustee or its  representatives  shall have the
     right of access to all of the  foregoing  and to make copies  thereof  upon
     reasonable notice;

          (vii) all purchase  order  forms,  other  forms,  labels,  stationery,
     shipping materials, catalogues, brochures,

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<PAGE>

artwork  mechanicals,  artwork  used or  held  for use in  connection  with  the
business, photographs and advertising materials;

          (viii) prepaid expenses and tax refunds;

          (ix) all stock in  subsidiaries,  securities of any kind and interests
     in joint  ventures and  partnerships,  which are listed on Schedule  1.1(a)
     (xii) hereto; and

          (xiii) all other tangible and intangible properties owned by Trustee.

     (b) The  inclusion of an item on any Schedule  hereto shall not be deemed a
representation  or affirmation by Trustee that Trustee in fact has any rights in
or  with  respect  to  such  item,  Trustee  makes  no  such  representation  or
affirmation,  and Trustee hereby expressly disclaims any implied  representation
or affirmation to the contrary.  Trustee has prepared the Schedules  entirely on
the  basis of  information  and  documents  provided  by third  parties  without
independent  investigation  or verification of such  information or documents by
Trustee.  Trustee is selling,  and  Purchaser is acquiring,  the Subject  Assets
pursuant to the order of the Court dated January 23, 1995, free and clear of all
liens,  claims and encumbrances,  with such liens,  claims and encumbrances,  if
any, to attach to the proceeds of such sale,  and Trustee  gives no  independent
warranty  or  representation  as  to  title,  merchantability,   fitness  for  a
particular   purpose,   validity,   completeness,   condition   or   any   other
characteristic of the Subject Assets.

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<PAGE>

     1.2  Excluded  Assets.  Trustee  shall not sell,  and  Purchaser  shall not
purchase, any of the following (the "Excluded Assets")

          (a)  all  leases  of  real  and  personal  property,  subject  to  the
     acquisition  of certain  leases of real property by Oldco  Bijoux,  Inc. by
     payment under Section 2.1(c) hereof (the "Oldco Bijoux Purchase");

          (b) all accounts receivable, including without limitation all accounts
     receivable of the Debtors which  represent  amounts due from any subsidiary
     of the Debtors;

          (c) all deposits of cash with third parties for  performance  due from
     such parties to the Debtors or the Trustee;

          (d) all claims and choses in action,  except that the parties agree to
     determine  subsequent to the Closing the  disposition of any claims against
     Deloitte & Touche;

          (e) all cash and cash equivalents;

          (f) all  preference  claims of the estates of the debtors in the Cases
     which may be asserted under Section 547 of the Bankruptcy Code; and

          (g)  all  other  contracts  which  are not  assumed  and  assigned  to
     Purchaser.

     1.3  Liabilities.  It is expressly  agreed that Trustee is not transferring
and  Purchaser is not  acquiring,  assuming or otherwise in any manner  becoming
responsible for any liabilities,  debts, commitments or other obligations of the
Debtors or

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<PAGE>

Trustee,  whether or not  related to the  Subject  Assets,  whether  absolute or
contingent,  due or unmatured,  direct or indirect,  or of any kind  whatsoever,
including without limitation the following listed liabilities and obligations:

          (a) all liabilities for foreign,  federal,  state and local income and
     franchise  taxes incurred by the Debtors or Trustee with respect to periods
     ending on or prior to the Closing  Date or incurred by Trustee with respect
     to any of the transactions contemplated hereby;

          (b) all  liabilities  and  obligations,  whether  civil or criminal in
     nature,  arising out of any actual or alleged  violation by Trustee,  or by
     any previous owner of any of the Subject Assets,  of any foreign,  federal,
     state or local law, rule,  regulation,  judicial or  administrative  order,
     judgment  or  decree,  or  governmental   permit,   license,   approval  or
     authorization (each a "Violation"), if such Violation occurred prior to the
     Closing Date;

          (c)  all  liabilities  and  obligations   arising  under  the  Assumed
     Contracts  and Leases if the rights of Trustee  are,  for any  reason,  not
     transferred to, or the benefits thereunder are not otherwise made available
     to, Purchaser at the Closing; and

          (d) all  liabilities  and  obligations  of the  Debtors or Trustee for
     which  claims  have been made under the  Debtors'  or  Trustee's  insurance
     contracts or policies prior to the Closing Date.

                                      -6-
<PAGE>

                                   ARTICLE II

                             CLOSING; PURCHASE PRICE

     2.1  Purchase  Price.  The  purchase  price  for the  Subject  Assets  (the
"Purchase  Price")  shall be  $1,475,000.00,  of which  $190,000 was  previously
deposited  with the Trustee on January 23,  1995,  all of which  Purchase  Price
(including  such  deposit)  shall be paid to Trustee at the  Closing (as defined
below) as follows:

          (a) purchaser's certified or bank check for $230,000;

          (b)  attorney's  check of Finkel,  Goldstein,  Berzow & Rosenbloom for
     $380,000;

          (c) check  from  Oldco  Bijoux,  Inc in the  amount of  $500,000;

          (d) release of deposit for $190,000;

          (e) check from Galleria Limited for $125,000; and

          (f) check from 677 Fifth Avenue Corporation for $50,000.

     2.2 Closing Date. The Closing under this Agreement  (the  "Closing")  shall
take place at the offices of Pryor,  Cashman,  Sherman & Flynn, 410 Park Avenue,
New York, New York 10022 on the date hereof (sometimes referred to herein as the
"Closing Date")

     2.3 Trustee Closing  Documents.  At the Closing,  Trustee shall execute and
deliver  or use its best  efforts  to  cause to be  executed  and  delivered  to
Purchaser the following:

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<PAGE>

          (a)  Such  bills  of  sale,  assignments,  trademark  assignments  (in
     recordable form) and other instruments of transfer as shall be necessary or
     required  to  transfer  to  Purchaser  all of  Trustee's  right,  title and
     interest in and to all of the Subject Assets; and

          (b) Such other  instruments of transfer and other documents as counsel
     to  Purchaser  shall  determine  are  reasonably   necessary  in  order  to
     effectuate the purposes of the transactions contemplated herein.

     2.4 Purchaser Closing  Documents.  At the Closing,  Purchaser shall execute
and deliver to Trustee such documents as counsel to Trustee shall  determine are
reasonably  necessary in order to  effectuate  the purposes of the  transactions
contemplated herein.

     2.5  Proceedings.  All  proceedings  which shall be taken and all documents
which shall be executed  and  delivered by the parties on the Closing Date shall
be deemed to have been  taken and  executed  simultaneously,  and no  proceeding
shall be deemed taken nor any  documents  executed or  delivered  until all have
been taken, executed and delivered.

                                   ARTICLE III

                     REPRESENTATIONS AND WARRANTIES OF Trustee

     Trustee hereby represents and warrants to Purchaser as follows:

     3.1 Authority. This Agreement, and each other document contemplated by this
Agreement, has been duly executed

                                      -8-
<PAGE>

and delivered by Trustee and constitutes a legal,  valid and binding  obligation
of Trustee enforceable against it in accordance with its terms.  Pursuant to the
Order,  Trustee has the authority to sell and transfer the Subject Assets to the
Purchaser in accordance with the terms of this Agreement.

                                   ARTICLE IV

                               REPRESENTATIONS AND
                             WARRANTIES OF PURCHASER

     Purchaser hereby represents and warrants to Trustee as follows:

     4.1 Due  Organization,  Etc.  Purchaser is a  corporation  duly  organized,
validly  existing and in good standing  under the laws of the State of New York,
and has all  necessary  corporate  power and  authority  to own and  operate the
Business and the Subject Assets.

     4.2 Effect of  Agreement,  Etc.  This  Agreement  and each  other  document
contemplated  by this  Agreement  has  been  duly  authorized  by all  necessary
corporate   action  of  Purchaser.   This  Agreement  and  each  other  document
contemplated by this Agreement has been duly executed and delivered by Purchaser
and constitutes a legal, valid and binding  obligation of Purchaser  enforceable
against it in accordance with its terms.

     4.3 No Violation.  The  execution,  delivery and  performance by Trustee of
this Agreement and each other document  contemplated  by this Agreement will not
violate,  conflict  with  or  otherwise  constitute  a  default  under  (a)  the
Purchaser's

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<PAGE>

Certificate  of  Incorporation  or by-laws;  (b) any  agreement or instrument to
which  Purchaser is a party or by which it or its properties  are bound;  or (c)
any law,  rule,  regulation,  judgment,  order or  decree of any  government  or
governmental  agency or instrumentality to which Purchaser or its properties are
bound.

     4.4 Acknowledgement.  Purchaser hereby acknowledges that (a) it understands
and accepts the provisions of Section 1.1(b)  hereof,  (b) it has conducted,  to
the extent it has deemed it desirable or necessary, its own investigation of the
Subject Assets,  (c) Trustee has cooperated,  to the extent  requested,  in such
investigation,  (d) its  execution,  delivery and  performance of this Agreement
have not been done in  reliance  on any  representation  or  warranty of Trustee
except those expressly set forth in Article III hereof, and (e)  notwithstanding
such  investigation,   the  entire  risk  of  the  existence  of  disclosed  and
undisclosed claims and/or disputes relating to the Subject Assets shall be borne
by Purchaser and Trustee shall have no liability there for.

                                    ARTICLE V

                              POST-CLOSING MATTERS

     5.1 Further Assurances.  If, at any time after the Closing, Purchaser shall
consider or be advised that any further assignments, conveyances,  certificates,
filings, instruments or documents or any other things are necessary or desirable
to vest, perfect or confirm in Purchaser title to the Subject Assets, or

                                      -10-
<PAGE>

to consummate any of the  transactions  contemplated by this Agreement,  then to
the extent that  Trustee is legally able to do so without  incurring  liability,
Trustee shall,  upon  reasonable  request from Purchaser,  promptly  execute and
deliver all such proper deeds, assignments,  certificates,  filings, instruments
and documents and do all things reasonably necessary and proper to vest, perfect
or confirm  title in Purchaser  and to otherwise  carry out the purposes of this
Agreement.

     5.2 The Trustee  shall provide in any order  dismissing  the Cases that the
Court  shall  retain  jurisdiction  to  authorize  and/or  direct the Trustee to
execute such  documents as the  Purchaser may  reasonably  require under Section
5.1.

                                   ARTICLE VI

                                  MISCELLANEOUS

     6.1 Waivers and Amendments.  (a) This Agreement may be amended, modified or
supplemented only by a written  instrument  executed by the parties hereto.  The
provisions  of this  Agreement  may be  waived  only by  instrument  in  writing
executed by the party  granting  the waiver.  No action  taken  pursuant to this
Agreement  shall be deemed to  constitute a waiver by the party of compliance by
any other  party  with any  representation,  warranty,  covenant,  or  agreement
contained herein. The waiver by any party hereto of a breach of any provision of
this  Agreement  shall not operate or be  construed  as a further or  continuing
waiver of such breach or as a waiver of any other or subsequent breach.

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<PAGE>

     (b) No  failure  on the  part of any  party  to  exercise,  and no delay in
exercising,  any  right,  power or remedy  hereunder  shall  operate as a waiver
thereof, nor shall any single or partial exercise of such right, power or remedy
by such party preclude any other for further exercise thereof or the exercise of
any other right,  power or remedy. All remedies hereunder are cumulative and are
not exclusive of any other remedies provided by law.

     6.2 Notices. All notices,  requests, demands and other communications which
are required or may be given under this Agreement  shall be in writing and shall
be  deemed  to have  been  duly  given or made:  if by  hand,  immediately  upon
delivery;  if by telex,  telecopier,  telegram  or  similar  electronic  device,
immediately  upon  sending,  provided it is sent on a business  day, but if not,
then  immediately upon the beginning of the first business day after being sent;
if by Federal Express,  Express Mail or any other reputable  overnight  delivery
service,  upon confirmation of delivery by such carrier.  All notices,  requests
and demands are to be given or made to the  parties at the  following  addresses
(or to such other  address as either party may designate by notice in accordance
with the provisions of this paragraph).

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<PAGE>

If to Purchaser:         Merchants T&F, Inc.
                         445 Fifth Avenue
                         New York, New York 10016
                         Telephone:   (212) 481-1322
                         Telecopier:  (212) 686-4888
                         Attention:  Laszlo Schwartz,
                                     Vice President

With a copy to:          Harold S. Berzow, Esq.
                         Finkel, Goldstein, Berzow and Rosenbloom
                         26 Broadway, Suite 711
                         New York, New York 10004
                         Telephone:   (212) 344-2929
                         Telecopier:  (212) 422-6836

If to Trustee:           Mr. Alan Cohen
                         Alco Capital Group, Inc.
                         745 Fifth Avenue, Suite 1506
                         New York, New York 10151
                         Telephone:  (212) 751-9150
                         Telecopier: (212) 371-2768

With a copy to:          Harold D. Jones, Esq.
                         Pryor Cashman Sherman & Flynn
                         410 Park Avenue
                         New York, New York 10022
                         Telephone: (212) 421-4100
                         Telecopier: (212) 326-0806

     6.3 Entire Agreement.  With the exception of the record made at the hearing
of the Court held on  January  23,  1995,  before  Judge  Jeffrey  Gallet,  this
Agreement and the schedules and exnibits  hereto set forth the entire  agreement
and understanding  between the parties hereto with respect to the subject matter
hereof and  supersede  any prior  negotiations,  agreements,  letters of intent,
understandings  or  arrangements  between the parties hereto with respect to the
subject matter hereof.

     6.4 Binding Effect;  Benefits. This Agreement shall inure to the benefit of
and be binding  upon the  parties  hereto and their  respective  successors  and
permitted assigns. Nothing

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<PAGE>

in this  Agreement,  expressed  or implied,  is intended to confer on any person
other than the  parties  hereto,  or their  respective  successors,  any rights,
remedies,  obligations  or  liabilities  under or by  reason  of this  Agreement
provided that the parties acknowledge the rights of Oldco Bijoux, Inc. under the
Oldco Bijoux Purchase.

     6.5 Non-Assignability.  This Agreement and any rights pursuant hereto shall
not be assignable by either party hereto and any such purported assignment shall
be null and void  provided  that the  parties  acknowledge  the  rights of Oldco
Bijoux, Inc. under the Oldco Bijoux Purchase.

     6.6 Applicable Law; Venue.  This Agreement and the legal relations  between
the parties  hereto shall be governed by and  construed in  accordance  with the
laws of the State of New York,  applicable to contracts  made and to be enforced
in  such  state.  Any  action  brought  by  either  party  with  respect  to the
enforcement of this Agreement or damages from a breach hereof shall be commenced
exclusively in the United States  Bankruptcy Court for the Southern  District of
New York, and Purchaser  consents to the jurisdiction of such Court.  Each party
hereby waives its right to a trial by jury in such a proceeding.

     6.7  Counterparts.  This  Agreement  may  be  executed  in  any  number  of
counterparts,  each of  which  shall be  deemed  an  original,  but all of which
together shall constitute one and the same instrument.

                                      -14-
<PAGE>

     6.8  Section  and Other  Headings.  All  headings  of the  Sections of this
Agreement are for  convenience  of reference only and do not form a part thereof
and shall not be used in any way to  interpret  or construe  the terms hereof or
the intention of the parties.

     IN WITNESS  WHEREOF,  the parties hereto have executed this Agreement as of
the date and year first above written.

PURCHASER:                            MERCHANTS T&F, INC.

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

                     See next page for signature of Trustee.

                                      -15-
<PAGE>

                              /s/ Alan Cohen
                              ----------------------------------
                              Alan Cohen, Chapter 11 Trustee
                              of Ciro, Inc., et al.ASSIGNMENT OF FRANCHISE AND LICENSE AGREEMENTS

     THIS ASSIGNMENT AND ASSUMPTION  AGREEMENT,  made, executed and delivered on
the 2nd day of  February,  1995,  by Alan Cohen,  as Chapter 11 Trustee for Ciro
Inc.,  Ciro of Bond  Street,  Inc.,  and Ciro  Creations,  Inc.  (herein  called
"Trustee")  to  Merchants  T&F,  Inc.,  a New York  corporation  (herein  called
"Buyer").

     WHEREAS,  Trustee is the  Chapter  11  Trustee in certain  Chapter 11 cases
jointly administered as Case No. 94--B-43389 (the "Cases") pending in the United
States Bankruptcy Court, Southern District of New York; and

     WHEREAS,  Trustee has succeeded by operation of law to all right, title and
interest  previously  enjoyed by Ciro Inc., Ciro of Bond Street,  Inc., and Ciro
Creations, Inc., the debtors in the Cases (collectively,  the "Debtors"), in and
to the business and assets of the Debtors; and

     WHEREAS,  Trustee  and  Buyer  are  parties  to a  certain  Asset  Purchase
Agreement of even date herewith (the "Purchase  Agreement")  which provides for,
among other things,  the sale and o transfer to Buyer from Trustee of all of the
Trustee's  right,  title  and  interest  in and to  said  assets  (the  "Subject
Assets"),   all  as  more  fully  described  in  the  Purchase  Agreement,   for
consideration in the amount and on terms and conditions provided in the Purchase
Agreement; and

     WHEREAS,  the  parties  desire to carry out the intent  and  purpose of the
Purchase Agreement by Trustee's  execution and delivery to Buyer of, among other
things, this Assignment and Assumption  Agreement evidencing the transfer to and
vesting in Buyer of all of the Trustee's right, title and interest in and to the
franchise and license agreements (the "Franchise/License  Agreements") listed on
Exhibit A attached hereto.

     NOW,  THEREFORE,  in  consideration  of payment of the  Purchase  Price (as
defined in the Purchase Agreement) and of other good and valuable  consideration
to Trustee, simultaneously with or before the execution and delivery hereof, the
receipt and sufficiency of which are hereby acknowledged, Trustee hereby assigns
and transfers to Buyer all of the Trustee's right,  title and interest in and to
the Franchise/License  Agreements,  TO HAVE AND TO HOLD the same unto Buyer, its
successors and assigns, forever.

<PAGE>

     This assignment is made without any representation or warranty,  express or
implied,  with  respect to the  Franchise/License  Agreements  or the  Trustee's
right, title or interest in any of them.

     Upon the execution and delivery  hereof,  Buyer assumes all  obligations in
respect of the Franchise/License Agreements.

Executed: February 2, 1995

                                                       MERCHANTS T&F, INC.

                                                       By: /s/ Laszlo Schwartz
                                                           ---------------------
                                                           Name:
                                                           Title: V.P.

                                         See next page for signature of Trustee.

<PAGE>

                                             /s/ Alan Cohen
                                             -------------------------
                                              Alan Cohen, Chapter 11 Trustee
                                              of Ciro Inc., et al.

[NOTARY STAMP]

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