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EXHIBIT 10.44    
  

 
 

REGISTRATION RIGHTS AGREEMENT    
  

    This REGISTRATION RIGHTS AGREEMENT (together with any amendments and exhibits hereto, this "Agreement") is made
as of September 10, 2001, between Ask Jeeves, Inc., a Delaware corporation ("Parent"), and the parties listed on  Exhibit A hereto (the
"Company Stockholders"), in connection with that certain Agreement and Plan
of Merger and Reorganization, dated as of September 10, 2001 by and among Parent, Answer Acquisition Corp. No. 2, Teoma Technologies, Inc. (the
"Company"), and the other parties thereto (the "Merger Agreement"). Capitalized terms used but not
defined herein have the meanings set forth in the Merger Agreement. 

    Section 1.  Definitions.  As used in this Agreement: 

    (a) "Effective Date" means the date upon which a registration statement filed pursuant to  Section 2 of this Agreement shall have been declared effective by the SEC.

    (b) "Form S-3" means such form under the Securities Act as in effect on the date hereof or any
registration form under the Securities Act subsequently adopted by the SEC which similarly permits inclusion or incorporation of substantial information by reference to other documents filed by Parent
with the SEC. 

    (c) "Holders" mean persons owning or having the right to acquire Registrable Securities and their successors and any
permitted assigns. 

    (d) "Immediate Family" of an individual means a spouse of such individual, or a parent, sibling or lineal descendant of
such individual or his or her spouse, whether by adoption or otherwise. 

    (e) "Material Event" means the happening of any event during the period that a Registration Statement described in  Section 2 hereof is required to be effective as a
result of which, in the good faith judgment of Parent, such registration statement or the
related prospectus contains or may contain any untrue statement of a material fact or omits or may omit to state any material fact required to be stated therein or necessary to make the statements
therein not misleading. 

    (f)  "Registrable Securities" means (i) the shares of Parent Common Stock issued pursuant to  Section 3.1(b) of the Merger Agreement (including the Escrow Shares),
together with all additional securities receivable or received in payment
of dividends or distributions on or splits of those shares; and (ii) shares of Parent Common Stock issued or issuable upon exercise of warrants assumed by Parent pursuant to  Section 3.1(f) of
the Merger Agreement, together with all additional securities receivable or received in payment of dividends or distributions
on or splits of those shares, provided, however, that such securities shall cease to be treated as Registrable Securities to the extent they
(A) have been sold to or through a broker or dealer or underwriter in a public distribution or a public securities transaction, or (B) have been sold or are capable of being sold within
a single three-month period pursuant to SEC Rule 144 in the written opinion of counsel or (C) have been previously registered. 

    (g) "Registration Expenses" mean all expenses incurred in connection with the filing and obtaining effectiveness of the
Registration Statement pursuant to this Agreement, including, without limitation, all SEC, NASD and "blue sky" registration and filing fees, printing expenses, transfer agents' and registrars' fees,
fees and disbursements of outside legal counsel and independent accountants for Parent, and one (1) outside legal counsel for all Holders, but shall not include Selling Expenses. 

    (h) "Registration Statement" has the meaning set forth in Section 2  of this Agreement. 

    (i)  "Securities Act" means the Securities Act of 1933, as amended. 

 

    (j)  "Selling Expenses" mean all underwriting discounts, selling commissions and stock transfer taxes applicable to the
sale of Registrable Securities and fees and disbursements of any separate legal, accounting and other advisors of any specific Holder in connection with the registration and sale of the Registrable
Securities. 

    Section 2.  Registration Statement.  Parent shall prepare and file with the SEC and shall use its
commercially reasonable efforts to cause to become effective, a registration statement on Form S-3 (or any successor form), or if Parent is ineligible to use such form,
Form S-1 (or any successor form), or such other form as may be appropriate in Parent's reasonable judgment, covering the Registrable Securities (the
"Registration Statement") on or before the thirtieth (30th) day after the Effective Time; provided,
however, that the Holders shall provide all such information and materials relating to the Holders as may be required to be disclosed pursuant to applicable SEC rules and
regulations, and take all such commercially reasonable action as may be required in order to permit Parent to comply with all the applicable requirements of the SEC in order to cause the Registration
Statement to be declared effective by the SEC, the provision of information and materials to be a condition precedent to the obligations of Parent with respect to each respective Holder pursuant to
this Agreement. Parent represents that it is currently eligible to utilize Form S-3. 

    Section 3.  Postponement of Registration.  

    (a)  Registration.  Notwithstanding any other provision of this Agreement, Parent shall be entitled to
suspend the effectiveness of the Registration Statement, for a period not to exceed sixty (60) calendar days, if its Board of Directors, in good faith determines that there exists (i) a
Material Event or (ii) material nonpublic information about Parent which the Board of Directors does not wish to disclose in a registration statement which information may otherwise be required
by the Securities Act to be disclosed in the Registration Statement; provided, however, that Parent may not exercise its rights to suspend the
effectiveness of the Registration Statement more than twice per twelve (12) month period or for more than sixty (60) calendar days per suspension or more than seventy-five
(75) calendar days in the aggregate. 

    (b)  Material Event.  The Holders agree that, upon receipt of any notice from Parent of a determination
pursuant to clause (i) or clause (ii) of Section 3(a), the Holders will forthwith discontinue any disposition of Registrable
Securities pursuant to the Registration Statement until the Holders' receipt of copies of supplemented or amended prospectuses prepared by Parent, and, if so directed by Parent, the Holders will
deliver to Parent or destroy all copies in their possession, other than permanent file copies then in the Holders' possession, of the prospectus covering such Registrable Securities current at the
time of receipt of such notice. Holders that are "affiliates" of Parent within the meaning of Rule 144(a)(1) agree to discontinue disposition of the Registrable Securities during any restricted
trading periods imposed on affiliates by Parent's Insider Trading Compliance Program. 

    Section 4.  Obligations of Parent.  

    (a) Except
as set forth in Sections 2 and 3, Parent shall (i) use commercially reasonable efforts to keep the
Registration Statement continuously effective until the first anniversary of the effective date of the Registration Statement; provided, however, that
Rule 415, or any successor rule under the Securities Act, permits an offering on a continuous or delayed basis, and provided further that
applicable rules under the Securities Act governing the obligation to file a post-effective amendment permit, in lieu of filing a post-effective amendment which
(A) includes any prospectus required by Section 10(a)(3) of the Securities Act or (B) reflects facts or events representing a material or fundamental change in the information set
forth in the Registration Statement, the incorporation by reference of information required to be included in (A) and (B) above to be contained in periodic reports filed pursuant to
Section 13 or 15(d) of the Exchange Act in the Registration Statement; (ii) prepare and file with the SEC such amendments and supplements to 

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such Registration Statement and the prospectus used in connection with such Registration Statement as may be necessary to comply with the provisions of the Securities Act with respect to the
disposition of all securities covered by such Registration Statement; (iii) furnish to the Holders such number of copies of any prospectus (including any preliminary prospectus and any amended
or supplemented prospectus), as the Holders may reasonably request in order to effect the offering and sale of the Registrable Securities to be offered and sold, but only while Parent shall be
required under the provisions hereof to cause such Registration Statement to remain current; (iv) use its commercially reasonable efforts to register or qualify the shares of the Registrable
Securities covered by such Registration Statement under the securities or "blue sky" laws of such jurisdictions as the Holders shall reasonably request (provided that Parent shall not be required in
connection therewith or as a condition thereto to qualify to do business or to file a general consent to service of process in any such jurisdiction where it has not been qualified) unless
Parent is already subject to service in such jurisdiction, and take all actions which may be reasonably necessary to enable the Holders to consummate the public sale or other disposition of the
Registrable Securities in such jurisdictions; (v) cause all such Registrable Securities to be listed on each securities exchange or securities trading system (if any) on which similar
securities issued by Parent are then listed; (vi) as long as such Registration Statement remains effective, promptly prepare, file and furnish to the Holders a reasonable number of copies of a
supplement to or an amendment of such prospectus as may be necessary so that, as thereafter delivered to the purchasers of the Registrable Securities, such prospectus shall not include an untrue
statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing;
(vii) furnish copies of prospectuses to any national securities exchange (if any) upon which the Registrable Securities are listed in compliance with Rule 153 adopted pursuant to the
Securities Act, or any similar rule as in effect from time to time, so as to enable all the Holders to rely on such Rule for sales of Registrable Securities through the facilities of such national
securities exchange; and (viii) provide a transfer agent and registrar for all Registrable Securities registered pursuant hereunder and a CUSIP number for all such Registrable Securities, in
each case not later than the effective date of such registration. 

    (b) Parent
shall notify each Holder (i) of any Material Event; (ii) of the date and time the Registration Statement and each post-effective
amendment thereto has become effective or a supplement to any prospectus forming a part of such Registration Statement has been filed; (iii) of any request by the SEC for the amending or
supplementing of such Registration Statement or prospectus or for additional information; and (iv) of the issuance of any stop order by the SEC suspending the effectiveness of the Registration
Statement or the initiation of any proceeding for that purpose and use commercially reasonable efforts to prevent the issuance of any stop order or to obtain its withdrawal if such stop order should
be issued. 

    (c) Parent
shall use commercially reasonable efforts to comply with all of the reporting requirements of the Exchange Act applicable to it and shall comply with all
other public information reporting requirements of the SEC that are conditions to the availability of Rule 144 for the sale of the Registrable Securities. 

    Section 5.  Expenses.  All Registration Expenses incurred in connection with the Registration
Statement pursuant to this Agreement shall be borne by Parent. All Selling Expenses relating to securities so registered shall be borne by the Holders of such securities pro rata on the basis of the
number of shares so registered on their behalf, as shall any other expenses in connection with the registration required to be borne by any Holder of such securities which shall be paid, at the
election the Holders thereof, out of the proceeds from such sale. 

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    Section 6.  Indemnification.  In the event of any offering registered pursuant to this Agreement: 

    (a) Parent
will indemnify and hold harmless each Holder and, if an entity, each of the Holder's directors and officers and each person who controls the Holder within
the meaning of Section 15 of the Securities Act, and any underwriter (as defined in the Securities Act), of securities included in to the Registration Statement filed pursuant to this
Agreement, against all expenses, claims, losses, damages and liabilities (or actions in respect thereof), including any of the foregoing incurred in settlement of any litigation, commenced or
threatened, to which any of the foregoing persons may be subject under the Securities Act or otherwise arising out of or based on any untrue statement (or alleged untrue statement) of a material fact
contained in the Registration Statement, or any amendment or supplement thereto, or prospectus related thereto, incident to any such registration, or based on any omission (or alleged omission) to
state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances in which they are made, not misleading, or any violation by
Parent of the Securities Act, the Exchange Act or any state securities law or any rule or regulation promulgated under the Securities Act, the Exchange Act, or state securities laws, or common law,
applicable to Parent in connection with any such registration, and will reimburse such Holder and each such director, officer, control persons, and underwriter for any legal and any other expenses
reasonably incurred by any of them in connection with investigating, preparing or defending any such claim, loss, damage, liability or action, provided,
however, that Parent will not be liable to any Holder in any such case (i) to the extent that any such claim, loss, damage, liability or expense arises out of or is
based in any untrue statement or omission or alleged untrue statement or omission, made in reliance upon and in conformity with the information furnished in writing by, or on the behalf of, such
Holder to Parent or any other Holder for use therein or (ii) if a Holder disposes of Registrable Securities in breach of Section 3. 

    (b) Each
Holder of Registrable Securities will severally and not jointly indemnify and hold harmless Parent, each of its directors and officers and each person who
controls Parent within the meaning of Section 15 of the Securities Act, against all claims, losses, damages and liabilities (or actions in respect thereof) arising out of or based on any untrue
statement (or alleged untrue statement) or a material fact contained in the Registration Statement, or any amendment or supplement thereto, or prospectus related thereto, or any omission (or alleged
omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, but only to the extent, that such untrue statement (or alleged
untrue statement) or omission (or alleged omission) is made in such Registration Statement, amendment, supplement, or prospectus in reliance upon and in conformity with the information furnished in
writing by, or on behalf of, such Holder to Parent for use therein and will
reimburse Parent, the remaining Holders, such directors, officers, or control persons for any legal or any other expenses reasonably incurred in connection with investigating or defending any such
claim, loss, damage, liability or action, but only to the extent, that such untrue statement (or alleged untrue statement) or omission (or alleged omission) is made in such Registration Statement or
prospectus in reliance upon and in conformity with the information furnished in writing by, or on behalf of, such Holder to Parent for use therein. 

    (c) Each
party entitled to indemnification under this Section 6 (the "Indemnified
Party") shall give notice to the party required to provide indemnification (the "Indemnifying Party") promptly after such
Indemnified Party has notice of any claim as to which indemnity may be sought, and shall permit the Indemnifying Party to assume the defense of any such claim or any litigation resulting therefrom,
jointly with any other Indemnifying Party similarly notified to the extent that it may wish, with counsel reasonably satisfactory to such Indemnified Party, and after notice from the Indemnifying
Party to such Indemnified Party of its election so to assume the defense thereof, the Indemnifying Party shall not be responsible for any legal or other expenses subsequently incurred 

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by the Indemnified Party in connection with the defense thereof; provided, however, that, if any Indemnified Party shall have reasonably concluded that
there may be one or more legal or equitable defenses available to such Indemnified Party which are additional to or conflict with those available to the Indemnifying Party, or that such claim or
litigation involves or could have an effect upon matters beyond the scope of the indemnity agreement provided in this Section 6, then the
Indemnifying Party shall not have the right to assume the defense of such action on behalf of such Indemnified Party and such Indemnifying Party shall reimburse such Indemnified Party and any Person
controlling such Indemnified Party for that portion of the fees and expenses of any counsel retained by the Indemnified Party which is reasonably related to the matters covered by the indemnity
agreement provided in this Section 6. The Indemnified Party may participate in such defense at such party's expense, and  provided further that the
failure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations
under this Agreement, except to the extent, and only to the extent, that the Indemnifying Party's ability to defend against such claim or litigation is materially prejudiced or impaired as a result of
such failure to give notice. No Indemnifying Party, in the defense of any such claim or litigation, shall, except with the consent of each Indemnified Party, consent to entry of any judgment or enter
any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release from all liability in respect to such claim or
litigation. Whether or not the defense of any claim or action is assumed by the Indemnifying Party, such Indemnifying Party will not be subject to any liability for any settlement without its consent. 

    (d) If
the indemnification provided for in this Section 6 is held by a court of competent jurisdiction to be
unavailable to an Indemnified Party with respect to any loss, claim, damage, liability or action referred to herein, then the Indemnifying Party, in lieu of indemnifying such Indemnified Party
hereunder, shall contribute to the amounts paid or payable by such Indemnified Party as a result of such loss, claim, damage, liability or action in such proportion as is appropriate to reflect the
relative fault of the Indemnifying Party on the one hand and of the Indemnified Party on the other, in connection with the statements or omissions which resulted in such loss, claim, damage, liability
or action as well as any other relevant equitable considerations. 

    (e) Parent
and the Holders agree that it would not be just and equitable if contribution pursuant to Section 6(d)  were determined by any pro rata allocation (even if the Holders were treated as one entity for
such purpose) or by any other method of allocation that does not take account of
the equitable considerations referred to in Sections 6(c) and 6(d). The amount paid or payable by an Indemnified Party as a result of the losses,
claims, damages and liabilities referred to in Section 6(d) shall be deemed to include, subject to the limitations set forth above, any legal or
other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim. 

    (f)  The
obligations of Parent and any of the Holders under this Section 6 shall survive the completion of any
offering of stock in a registration statement under this Agreement. 

    Section 7.  Restrictions on Transfer.  The Holders understand that the Registrable Securities
issued in connection with the Merger Agreement have been or will be issued in a transaction exempt from the registration requirements of the Securities Act and shall not be transferable except
(a) in accordance with the registration statement filed with the SEC, in which case Holder must comply with the requirement of delivering a current prospectus, (b) in accordance with
Rule 144, or (c) pursuant to an exemption from the registration requirements of the Securities Act. Parent shall be entitled to give stop transfer instructions to its transfer agent with
respect to the Registrable Securities in order to enforce the foregoing restrictions. 

    Section 8.  Assignment of Registration Rights.  The rights to cause Parent to register Registrable
Securities pursuant to this Agreement may not be assigned by the Holders to any person or entity; 

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 provided, however, that upon the death of any Holder, the rights to cause Parent to register Registrable Securities pursuant to this Agreement shall inure to such Holder's
heirs, devisees, legatees, legal representatives or other designees; provided, further, that a Holder may transfer or assign the rights to cause Parent
to register Registrable Securities pursuant to this Agreement to a transferee or assignee of Registrable Securities that is (a) a wholly-owned subsidiary of such Holder; (b) a person who
controls such Holder within the meaning of Section 15 of the Securities Act; (c) a trust for the benefit of any individual Holder or a member of such Holder's Immediate Family, or a
family limited partnership; or (d) to any transferee or assignee who becomes the holder of fifty thousand (50,000) or more Registrable Securities and provided
further, that (i) the transferor shall, within ten (10) days after such transfer, furnish to Parent written notice of the name and address of such transferee or
assignee and the securities with respect to which such registration rights are being assigned or transferred; and (ii) such transferee or assignee shall agree to be subject to all restrictions
set forth in this Agreement. 

    Section 9.  Amendment of Registration Rights; Waivers.  This Agreement may be amended by the
Holders of two-thirds (2/3) of the Registrable Securities then outstanding and Parent at any time by execution of an instrument in writing signed on behalf of each of the parties;  provided, however,
that no modification,
amendment or waiver that would treat any Holder of Registrable Securities then outstanding in a non-ratable, discriminatory manner, or adversely affect the rights of any Holder, shall be
made without the prior written consent of such Holder. The failure of any party to enforce any of the provisions of this Agreement shall in no way be construed as a waiver of such provisions and shall
not affect the right of such party thereafter to enforce each and every provision of this Agreement in accordance with its terms. 

    Section 10.  Limitation of Registration Rights.  Parent shall not have any obligation to register
any Registrable Securities other than as set forth in this Agreement. 

    Section 11.  Grant of Additional Registration Rights.  The Holders acknowledge that Parent may
acquire other companies and in the course of such acquisitions may grant the equity owners thereof registration rights with respect to their shares of Parent on terms which would be negotiated at such
time and may be more favorable than the terms of this Agreement. 

    Section 12.  Notices.  All notices, requests, claims, demands and other communications hereunder
shall be in writing and shall be given (and shall be deemed to have been duly given upon receipt) by delivery in person, by telecopy or facsimile, by registered or certified mail (postage prepaid,
return receipt requested) or by a nationally recognized courier service to the respective parties at the following addresses (or at such other address for a party as shall be specified in a notice
given in accordance with this Section 12): 

if
to the Company Stockholders: 

Teoma
Technologies, Inc.

1551 South Washington Avenue, 4th Floor

Piscataway, NJ 08854

Attention: David L. Goret

Facsimile: (732) 907-3090 

with
a copy to:

Hawk Holdings, LLC

300 Tice Boulevard

Woodcliff Lake, NJ 07675

Attention: David L. Goret

Facsimile: (201) 802-9144 

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and with a copy to:

Jenkens & Gilchrist Parker Chapin LLP

405 Lexington Avenue

New York, NY 10174

Attention: Michael Weinsier

Facsimile: (212) 704-6288 

if
to Parent or Merger Sub: 

Ask
Jeeves, Inc.

Legal Department

5858 Horton Avenue, Suite 350

Emeryville, California 94608

Attention: Cynthia Pevehouse

Facsimile: (510) 985-7507 

with
a copy to: 

Brobeck,
Phleger & Harrison LLP

Two Embarcadero Place

2200 Geng Road

Palo Alto, CA 94303

Attention: Rod J. Howard, Esq.

Facsimile: (650) 496-2777 

    Section 13.  Severability.  If any term or other provision of this Agreement is invalid, illegal
or incapable of being enforced by any rule of Law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or
legal substance of the Agreement is not affected in any manner materially adverse to any party. Upon such determination that any term or other provision is invalid, illegal or incapable of being
enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner to the
fullest extent permitted by applicable Law in order that the Agreement may be consummated as originally contemplated to the fullest extent possible. 

    Section 14.  Assignment.  This Agreement shall bind and inure to the benefit of Parent and the
Holders and, subject to Section 9, the respective successors and assigns of Parent and the Holders. 

    Section 15.  Governing Law.  This Agreement shall be governed by, and shall be construed and
enforced in accordance with, the internal laws of the State of Delaware applicable to contracts made and to be performed entirely within that state, and no effect shall be given to any conflict of
laws principles thereof directing the application of any law other than that of Delaware. The state courts of the State of Delaware shall have exclusive jurisdiction over all disputes between the
parties hereto arising out of or relating to this Agreement and the agreements, instruments and documents contemplated hereby. The parties hereby consent to and agree to submit to the exclusive
jurisdiction of such courts with respect to all such disputes. Each of the parties hereto waives, and agrees not to assert in any such dispute, to the fullest extent permitted by applicable law, any
claim that (i) such party is not personally subject to the jurisdiction of such courts, (ii) such party and such party's property is immune from any legal process issued by such courts
or (iii) any litigation commenced in such courts is brought in an inconvenient forum. 

    Section 16.  Headings; Interpretation.  The descriptive headings contained in this Agreement are
included for convenience of reference only and shall not affect in any way the meaning or interpretation of this Agreement. The parties hereto have participated jointly in the negotiation and drafting
of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this 

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Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of
this Agreement. 

    Section 17.  No Conflicts.  Parent represents and warrants to the Holders that the registration
right granted to the Holders under this Agreement does not conflict with any other registration rights granted by Parent. Parent shall not, after the date hereof, grant any registration rights which
conflict with or impair the ability of Parent to perform its obligations hereunder. 

    Section 18.  Counterparts.  This Agreement may be executed and delivered (including by facsimile
transmission) in one or more counterparts, and by the different parties hereto in separate counterparts, each of which when executed and delivered shall be deemed to be an original but all of which
taken together shall constitute one and the same agreement. 

    Section 19.  Entire Agreement.  This Agreement constitutes the entire agreement among the parties
with respect to the subject matter hereof and supersede all prior agreements and understandings among the parties with respect thereto. 

    IN
WITNESS WHEREOF, Parent and the Holders have caused this Agreement to be executed as of the date first above written. 

	 
	 	 
	 	 

	 	 	ASK JEEVES, INC.
	

 	
 	

By:	
 	

/s/ A. GEORGE (SKIP) BATTLE
	 	 	 	 	
 A. George (Skip) Battle

Chief Executive Officer

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EXHIBIT 10.44

REGISTRATION RIGHTS AGREEMENT<Page>

                                                                 EXHIBIT 10.90

                                                         As of August 13, 2001

Congress Financial Corporation
1133 Avenue of the Americas
New York, New York  10036

     Re: TWENTY-THIRD AMENDMENT TO FINANCING AGREEMENTS (THIS "AMENDMENT")

Ladies and Gentlemen:

        Reference is made to the Accounts Financing Agreement [Security
Agreement] between Congress Financial Corporation ("Congress") and I.C. Isaacs &
Company L.P. ("Borrower") dated as of June 16, 1992, as amended (the Accounts
Agreement"), the Covenant Supplement to Accounts Financing Agreement [Security
Agreement between Congress and Borrower, dated June 16, 1992, as amended (the
"Covenant Supplement"), the letter, re Inventory Loans, dated December 31, 1994
by and between Congress and Borrower, as amended (the "Inventory Loan Letter"),
the Inventory and Equipment Security Agreement Supplement to the Accounts
Financing Agreement [Security Agreement], between Congress and Borrower, dated
as of June 16,1992, as amended (the "Inventory and Equipment Agreement"), the
Trade Financing Agreement Supplement to the Accounts Financing Agreement
[Security Agreement], between Congress and Borrower, dated as of June 16, 1992,
as amended (the "Trade Financing Agreement Supplement") and all supplements
thereto, and all other agreements, documents and instruments related thereto and
executed in connection therewith (collectively, all of the foregoing, as the
same now exist or may hereafter be further amended, modified, supplemented,
extended, renewed, restated or replaced, the "Financing Agreements").
Capitalized terms used herein, unless otherwise defined herein, shall have the
meaning set forth in the Financing Agreements.

        Based on Borrower's financial statements for the fiscal period ending
July 31, 2001, Borrower has failed to comply with the working capital and net
worth covenants set forth in the Financing Agreements through July 31, 2001 and
Borrower hereby requests that Congress waive Borrower's compliance therewith
through August 31, 2001;

        Borrower has also requested certain modifications to the Financing
Agreements and Congress is willing to agree to such modifications, subject to
the terms and conditions set forth herein.

<Page>

         In consideration of the foregoing, and the mutual agreements and
covenants contained herein and for other good and valuable consideration,
Borrower and Congress hereby agree as follows:

         1. NET WORTH COVENANT. (a) Subject to the terms and conditions
contained herein, Congress hereby waives the Event of Default that has occurred
arising under Section 4.13 of the Covenant Supplement as a result of the failure
of Borrower to maintain Net Worth in the amount required thereunder through July
31, 2001.

                  (b) Congress has not waived and is not by this Amendment
waiving, and has no intention of waiving, any other Event of Default which may
have occurred prior to the date hereof, or may be continuing on the date
hereof or any Event of Default which may occur after the date hereof, whether
the same or similar to the Events of Default described above, or otherwise,
other than the Event of Default described in Section 1(a) hereof. Congress
reserves the right, in its discretion, to exercise any or all of its rights
and remedies arising under the Financing Agreements, applicable law or
otherwise as a result of any other Events of Default that may have occurred
before the date hereof, or are continuing on the date hereof, or any Event of
Default that may occur after the date hereof, whether the same or similar to
the Event of Default described above or otherwise, including any Event of
Default pursuant to the failure of Borrower to comply with Section 4.13 of
Covenant Supplement at any time after September 1, 2001.

                  (c) Effective as of September 1, 2001, Section 4.13 of the
Covenant Supplement is hereby deleted in its entirety and replaced with the
following:

                "4.13 NET WORTH. Borrower shall at all times during the period
                commencing September 1, 2001 and ending December 31, 2001
                maintain a Net Worth of not less than $10,000,000 and at all
                times after December 31, 2001 maintain a New Worth of not less
                than $11,000,000."

         2. WORKING CAPITAL COVENANT. (a) Subject to the terms and conditions
contained herein, Congress hereby waives the Event of Default that has occurred
arising under Section 4.14 of the Covenant Supplement as a result of the failure
of Borrower to maintain Working Capital in the amount required thereunder
through July 31, 2001.

                  (b) Congress has not waived and is not by this Amendment
waiving, and has no intention of waiving, any other Event of Default which may
have occurred prior to the date hereof, or may be continuing on the date hereof
or any Event of Default which may occur after the date hereof, whether the same
or similar to the Events of Default described above or otherwise, other than the
Event of Default described in Section 2(a) hereof. Congress reserves the right,
in its discretion to exercise any or all of its rights and remedies arising
under the Financing Agreements, applicable law or otherwise as a result of any
other Events of Default that may have occurred before the date hereof, or are
continuing on the date hereof, or any Event of Default that may occur after the
date hereof, whether the same or similar to the Event of Default

                                    -2-

<Page>

described above or otherwise, including any Event of Default pursuant to the
failure of Borrower to comply with Section 4.14 of Covenant Supplement at any
time after September 1, 2001.

                  (c) Effective as of September 1, 2001, Section 4.14 of the
Covenant Supplement is hereby deleted in its entirety and replaced with the
following:

                  "4.14 WORKING CAPITAL. Borrower, will at all times, during the
                  period commencing September 1, 2001 and ending December 31,
                  2001 maintain Working Capital of not less than $14,000,000 and
                  at all times after December 31, 2001 maintain Working Capital
                  of not less than $15,000,000."

         3. INVENTORY LOANS. Section 2 of the Inventory Loan Letter is deleted
in its entirety and replaced with the following:

                  "In addition to loans which may be made by you to us, pursuant
                  to Section 2 of the Accounts Agreement, you shall, in your
                  sole discretion, make loans to us from time to time, at our
                  request, of up to the following percentages of Value of the
                  following categories of Eligible Inventory (the "Inventory
                  Borrowing Base") or such greater or lesser percentages thereof
                  as you shall, in your sole discretion, determine from time to
                  time:

                  the sum of

                              (a)    (i) at all times prior to delivery to
                                     Congress of the September Appraisal (as
                                     such term is defined in the Inventory and
                                     Equipment Security Agreement Supplement to
                                     the Accounts Financing Agreement [Security
                                     Agreement], between Congress and Borrower,
                                     dated as of June 16, 1992, as amended),
                                     fifty (50%) percent of the Value of
                                     Eligible Imported Inventory; or

                                     (ii) at all times after the delivery of the
                                     September Appraisal (as such term is
                                     defined in the Inventory and Equipment
                                     Security Agreement Supplement to the
                                     Accounts Financing Agreement [Security
                                     Agreement], between Congress and Borrower,
                                     dated as of June 16, 1992, as amended) to
                                     Congress, the lesser of (A) fifty (50%)
                                     percent of the Value of Eligible Imported
                                     Inventory or (B) seventy-five (75%) percent
                                     of the Net Recovery Percentage with respect
                                     to Eligible Imported Inventory multiplied
                                     by the Value of such Eligible Imported
                                     Inventory; and

                                    -3-

<Page>

                                (b)    the lesser of (i) the lesser of (A) forty
                                       (40%) percent of the Value of Eligible
                                       Domestic Inventory or (B) seventy (70%)
                                       percent of the Net Recovery Percentage
                                       with respect to Eligible Domestic
                                       Inventory multiplied by the Value of such
                                       Eligible Domestic Inventory, or (ii)
                                       $1,000,000; PROVIDED THAT, Eligible
                                       Domestic Inventory shall only be included
                                       in the calculation of the Inventory
                                       Borrowing Base during the Seasonal
                                       Period."

         4. INVENTORY APPRAISALS.  Section 2.6 of the Inventory and Equipment
Agreement is hereby amended to add the following at the end of such Section:

                      "Upon Congress's request, Borrower shall, at its expense,
                      at least twice in any twelve (12) month period, but at any
                      time or times as Congress may request on or after an Event
                      of Default, deliver or cause to be delivered to Congress
                      written appraisals as to the Inventory in form, scope and
                      methodology acceptable to Congress and by an appraiser
                      acceptable to Congress, addressed to Congress and upon
                      which Congress is expressly permitted to rely. In addition
                      to the appraisals referred to in the immediately preceding
                      sentence, Borrower, shall at its expense, deliver or cause
                      to be delivered to Congress written appraisals as to the
                      Inventory, based on August 2001 month-end Inventory, in
                      form, scope and methodology acceptable to Congress and by
                      an appraiser acceptable to Congress, addressed to Congress
                      and upon which Congress is expressly permitted to rely no
                      later than September 30, 2001 (the "September Appraisal)."

         5. SPECIAL AVAILABILITY RESERVE. Section 3.3 of the Covenant Supplement
is hereby amended by increasing the Special Availability Reserve to $2,000,000;
provided, that, upon the delivery of the September Appraisal (as such term is
defined in the Inventory and Equipment Security Agreement Supplement to the
Accounts Financing Agreement [Security Agreement], between Congress and
Borrower, dated as of June 16, 1992, as amended) the Special Availability
Reserve shall be reduced to $1,000,000.

         6. AMENDMENT FEE. In consideration of the foregoing, Borrower agrees to
pay Congress a fee for entering into this Amendment in the amount of $75,000,
which shall be fully earned on the date hereof. Such fee may be charged by
Congress to any loan account of Borrower maintained by Congress under the
Financing Agreements.

         7. REPRESENTATIONS, WARRANTIES AND COVENANTS. In addition to the
continuing representations, warranties and covenants heretofore or hereafter
made by Borrower to Congress pursuant to the other Financing Agreements.
Borrower hereby represents, warrants and covenants with and to Congress as
follows (which representations, warranties and covenants are continuing

                                    -4-

<Page>

and shall survive the execution and delivery hereof and shall be incorporated
into and made a part of the Financing Agreements):

                  (a) This Amendment and each other agreement or instrument to
be executed and delivered by Borrower hereunder have been duly authorized,
executed and delivered by all necessary action on the part of Borrower which is
a party hereto and thereto and, if necessary, the limited partners of Borrower
and/or the stockholders of the General Partner of Borrower, and is in full force
and effect as of the date hereof, and the agreements and obligations of Borrower
contained herein and therein constitute legal, valid and binding obligations of
Borrower enforceable against them in accordance with their terms.

                  (b) All of the representations and warranties set forth in the
Accounts Agreement and the other Financing Agreements, each as amended hereby,
are true and correct in all material respects on and as of the date hereof as if
made on the date hereof, except to the extent any such representation or
warranty is made as of a specific date, in which case such representation or
warranty shall have been true and correct as of such date.

                  (c) As of the date hereof, and after giving effect to the
provisions of this Amendment, no Event of Default, and no condition or event
which with notice or passage of time or both would constitute an Event of
Default, exists or has occurred and is continuing.

         8. CONDITIONS PRECEDENT. The effectiveness of the waiver and amendments
to the Financing Agreements provided for herein shall only be effective upon the
satisfaction of each of the following conditions precedent in a manner
satisfactory to Congress:

                  (a) no Event of Default shall have occurred and be continuing
and no event shall have occurred or condition be existing and continuing which,
with notice or passage of time or both, would constitute an Event of Default,
after giving effect to the waivers and amendments set forth herein;

                  (b) Congress shall have received the amendment fee as set
forth in Section 5 hereof, and

                  (c) Congress shall have received, in form and substance
satisfactory to Congress, an original of this Amendment duly authorized,
executed and delivered by Borrower.

         9. EFFECT OF THIS AMENDMENT. Except as expressly provided herein, no
other waivers, consents or modifications to the Financing Agreements are
intended or implied, and in all other respects, the Financing Agreements are
hereby specifically ratified, restated and confirmed by all the parties hereto
as of the effective date hereof. To the extent of conflict between the terms of
this Amendment and the other Financing Agreements, the terms of this Amendment
shall control.

                                    -5-

<Page>

         10. FURTHER ASSURANCES. The parties hereto shall execute and deliver
such additional documents and take such additional actions as may be necessary
to effectuate the provisions and purposes of this Amendment.

         11. GOVERNING LAW. The rights and obligations hereunder of each of the
parties hereto shall be governed by and interpreted and determined in accordance
with the laws of the State of New York (without giving effect to principles of
conflicts of laws).

                  [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

                                    -6-

<Page>

         12. COUNTERPARTS. This Amendment may be executed in any number of
counterparts, but all of such counterparts shall together constitute but one and
the same agreement. In making proof of this Amendment, it shall not be
necessary, to produce or account for more, than one counterpart thereof signed
by each of the parties hereto.

                        Very truly yours,

                        I.C. ISAACS & COMPANY L.P.

                        By:   I.C. Isaacs & Company, Inc., general partner

                        By:      /s/  Eugene C. Wielepski
                             ----------------------------------

                        Title:   Vice President
                               --------------------------------

Agreed and Accepted:

CONGRESS FINANCIAL CORPORATION

By:      /s/  Thomas A. Martin
     -------------------------------------

Title:   Vice President
       -----------------------------------

                                    -7-

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