Document:

EXHIBIT 10.19
EXHIBIT 10.19

                           FORM OF FACTORING AGREEMENT
                      GUARANTY/LETTER OF CREDIT SUPPLEMENT

      THIS FACTORING  AGREEMENT -  GUARANTY/LETTER  OF CREDIT  SUPPLEMENT  (this
"SUPPLEMENT"), made and executed this __ day of __________, 2000, by and between
AVID SPORTSWEAR,  INC., a California corporation (the "CLIENT");  and GE CAPITAL
COMMERCIAL SERVICES, INC. (the "FACTOR").

      1. This is a Supplement to that certain Factoring Agreement, dated of even
date herewith (such Factoring Agreement, as amended,  modified,  supplemented or
restated from time to time, being herein called the "AGREEMENT")  between Client
and Factor.  This  Supplement is hereby  incorporated  into the Agreement and is
made a part thereof.

      2. All capitalized terms used in this Supplement  without definition shall
have the meanings  ascribed to such terms in the  Agreement.  In addition to the
terms defined  elsewhere in this  Supplement or in the Agreement,  the following
terms shall have the following meanings:

      "BENEFICIARY"  - the Vendor or the Opening Bank that is the beneficiary of
a Factor Guaranty.

      "CONTRACT  TERM" - the  period  from the date that the  Agreement  becomes
effective until the  termination  thereof by Client or Factor in accordance with
paragraph 17 of the Agreement.

      "DRAWING   DOCUMENT"  -  any  document  required  to  be  submitted  by  a
Beneficiary for a drawing under a Letter of Credit or Factor Guaranty.

      "FACTOR  GUARANTY"  - a  guaranty  issued by Factor  at  Client's  request
pursuant to this Supplement,  in form and upon terms  satisfactory to Factor, in
favor of an Opening Bank to guaranty Client's  reimbursement  obligations to the
Opening  Bank  under a Letter  of  Credit  or in favor of a Vendor  to  guaranty
Client's  obligations  to pay the purchase price of inventory sold and delivered
by such Vendor to Client;  and Factor  Guaranty shall also include any Letter of
Credit  issued by  Factor  and  Factor's  obligations  under any such  Letter of
Credit.

      "FACTOR GUARANTY  OBLIGATIONS" - all outstanding  obligations  incurred by
Factor, whether direct or indirect,  contingent or otherwise, due or not due, in
connection  with the  issuance of a Factor  Guaranty.  The amount of such Factor
Guaranty  Obligations  at any time shall equal the maximum  amount  which may be
payable by Factor  thereupon or pursuant  thereto at such time and shall include
all duty, freight, taxes, costs, insurance and any other charges and expenses in
connection therewith.

      "FACTOR  GUARANTY  LINE AMOUNT"- the sum of  ____________________  Dollars
($____________).

      "LETTER OF  CREDIT" - A letter of credit at any time  issued by an Opening
Bank or Factor for the account of Client to support Client's obligations for the
purchase of inventory.

<PAGE>

      "OPENING  BANK" - GE Capital  Finance,  LTD. or any other bank approved by
Factor which opens a Letter of Credit for the account of Client pursuant to this
Supplement.

      "VENDOR" - a vendor of inventory to Client.

      3.  Factor  may,  in its sole  discretion,  from time to time  during  the
Contract  Term  issue  Factor  Guaranties,  as  requested  by  Client,  with the
aggregate  face amount of Factor  Guaranties  outstanding at any one time not to
exceed the Factor  Guaranty Line Amount.  As a condition for the issuance of any
Factor  Guaranty to an Opening Bank with  respect to a Letter of Credit,  Client
shall enter into an  application  and  agreement  with the Opening Bank for such
Letter of Credit.

      4. Upon Factor's  issuance of a Factor Guaranty,  Factor shall establish a
reserve  against  the  amount  of  advances  which  Client is  entitled  to have
outstanding  under the Agreement in an amount equal to _______  percent (__%) of
the face amount of the Factor  Guaranty  Obligation  with respect to such Factor
Guaranty.

      5. Any amounts paid by Factor under or with respect to any Factor Guaranty
shall be (a)  treated  for all  purposes  as an  advance  to  Client  under  the
Agreement, (b) charged to the Reserve Account as of the date paid by Factor, (c)
payable upon demand,  together with interest  thereon at the rate and calculated
in the  manner as  specified  in the  Agreement,  and (d)  secured by all of the
Collateral  granted  to Factor  under  the  Agreement  and under any  supplement
thereto or under any other agreement between Factor and Client.

      6.  Client  shall pay to Factor an issuance  fee for each Factor  Guaranty
issued from time to time by Factor under this  Supplement  equal to ____________
percent (____%) of the face amount of such Factor Guaranty. The issuance fee for
each Factor  Guaranty  shall be deemed fully earned upon issuance of such Factor
Guaranty,  shall be due and payable in advance  upon the issuance of such Factor
Guaranty and shall not be subject to rebate or proration upon the termination of
the Agreement for any reason. Client shall pay to Factor a negotiation fee equal
to __________ percent (____%) of the amount drawn under each Letter of Credit as
to which there is a corresponding Factor Guaranty.  The negotiation fee shall be
due and  payable  immediately  following  the draw  under the  Letter of Credit.
Factor is authorized (a) to treat each issuance fee and each  negotiation fee as
advance  under the  Agreement,  and (b) to charge the  Reserve  Account  for the
amount of such fees. In addition, Client shall reimburse Factor for all fees and
charges  paid by Factor on  account of any Factor  Guaranty  or Factor  Guaranty
Obligations to an Opening Bank.

      7. All Factor Guaranty  Obligations  shall be incurred by Factor solely as
an   accommodation   to  Client  and  for   Client's   account.   Client   shall
unconditionally  reimburse  Factor for the total  amount of all Factor  Guaranty
Obligations  paid by  Factor  immediately  upon the date of  payment  by  Factor
(whether with the proceeds of an advance under the Agreement or  otherwise).  If
Client  shall  fail to  reimburse  Factor  for the total  amount  of all  Factor
Guaranty  Obligations  paid by Factor,  in addition to Factor's rights under the
Agreement and applicable law, Factor shall be fully subrogated to the rights and
remedies of the  Beneficiary  of such Factor  Guaranty  with respect to Client's
obligations to such Beneficiary  which were paid or discharged with the proceeds
of the Factor Guaranty,  and Factor shall be entitled to exercise all rights and
remedies which the Beneficiary had against Client, whether under any application

                                      -2-
<PAGE>

for the issuance of a Letter of Credit,  any purchase  order with a Vendor,  any
other agreement between such Beneficiary and Client, or under applicable law, as
fully as if Factor were the Beneficiary.

      8. Client's  Obligations to Factor with respect to any Factor  Guaranty or
Factor Guaranty  Obligation  shall be evidenced by Factor's records and shall be
absolute,  unconditional and irrevocable and shall not be affected,  modified or
impaired  by: (a) any lack of validity  or  enforceability  of the  transactions
contemplated   by  or  related  to  such  Factor  Guaranty  or  Factor  Guaranty
Obligation;  (b) any amendment or waiver of or consent to depart from all or any
of the terms of the  transactions  contemplated  by or  related  to such  Factor
Guaranty or Factor Guaranty Obligation; (c) the existence of any claim, set-off,
defense or other right which Client may have against Factor,  the Beneficiary or
any other person,  whether in connection with the Agreement,  this Supplement or
such Factor Guaranty or the transactions  contemplated  thereby or any unrelated
transactions;  or (d) the fact that any draft, affidavit,  letter,  certificate,
invoice,  bill of lading or other Drawing Document  presented under or delivered
in connection with such Factor Guaranty proves to have been forged,  fraudulent,
invalid or insufficient  in any respect or any statement  therein proves to have
been untrue or incorrect in any respect.

      9.  Client  hereby  agrees to  indemnify  Factor  from and to hold  Factor
harmless  against any and all claims,  liabilities,  losses,  costs and expenses
(including,  attorneys'  fees and  expenses)  which  Factor may (other than as a
result of its own gross negligence or willful misconduct) incur or be subject to
as a consequence,  directly or indirectly, of: (a) the issuance of or payment of
or failure to pay under any Factor Guaranty or Factor Guaranty Obligation or (b)
any suit,  investigation  or  proceeding  as to which  Factor is or may become a
party as a consequence,  directly or  indirectly,  of the issuance of any Factor
Guaranty,  the incurring of any Factor Guaranty  Obligation or any payment of or
failure to pay under any Factor  Guaranty  or Factor  Guaranty  Obligation.  The
obligations of Client under this paragraph  shall survive any termination of the
Agreement and the payment in full of the Obligations.

      10.  Client hereby  assumes all risks of the acts,  omissions or misuse of
each Factor  Guaranty by the Beneficiary  thereof and, in connection  therewith,
Factor shall not be responsible (a) for the validity,  sufficiency,  genuineness
or legal effect of any Drawing  Document  even if it should in fact prove in any
respect to be invalid,  insufficient,  inaccurate, untrue, fraudulent or forged;
(b) for the validity or sufficiency of any instrument  transferring or assigning
or purporting  to transfer or assign any Letter of Credit or Factor  Guaranty or
any rights or benefits  thereunder or any proceeds thereof, in whole or in part,
even if it should prove to be invalid or ineffective for any reason; (c) for the
failure of any  Beneficiary of a Factor  Guaranty to comply fully with the terms
thereof,  including the conditions  required in order to effect or pay a drawing
thereunder;   (d)  for  any  errors,  omissions,   interruptions  or  delays  in
transmission or delivery of any messages, by mail, telecopy, telex or otherwise;
(e) for any  loss or delay  in the  transmission  or  otherwise  of any  Drawing
Document;  or (f) for any  consequences  arising  from causes  beyond the direct
control of Factor.

      11. In the event that any Factor Guaranty Obligations are outstanding when
the  Agreement is terminated  for any reason,  whether on account of an Event of
Default or  otherwise,  Client  will  either (a) cause  each  underlying  Factor
Guaranty to be returned and canceled and each corresponding Factor Obligation to

                                      -3-
<PAGE>

      be terminated,  or (b) pay to Factor,  in immediately  available funds, an
amount equal to ___% of the maximum  amount then available to be drawn under all
Factor  Guaranties  not so  returned  and  canceled to be held by Factor as cash
collateral in a cash collateral account to be established by Factor on its books
and records and in which  Factor shall have a first  priority  lien and security
interest as security for the outstanding Factor Guaranty Obligations.  All funds
in the cash  collateral  account  shall be held by Factor  as a reserve  to fund
future payments on those Factor Guaranties and Factor Guaranty Obligations still
outstanding.  At such time as all Factor Guaranties have expired by their stated
terms  or have  been  returned  and  canceled,  and all of the  Factor  Guaranty
Obligations have been  indefeasibly  paid in full, any remaining  balance in the
cash collateral account shall be returned to Client.

      12. This Supplement,  which is subject to modification only in writing, is
supplementary  to and is to be  considered  as a part of the Agreement and shall
take  effect  when  accepted  and signed by  Factor.  This  Supplement  shall be
interpreted  according to the laws of the State of California and shall inure to
the  benefit  of and be binding  upon the  parties  hereto and their  respective
successors and assigns.  Any notices,  demands,  consents,  or other writings or
communications  permitted  or required by this  Agreement  shall be given in the
manner and to the address as set forth in the Agreement.

      13. WAIVER OF JURY TRIAL.  TO THE FULLEST  EXTENT  PERMITTED BY APPLICABLE
LAW, FACTOR AND CLIENT HEREBY WAIVE,  IRREVOCABLY AND UNCONDITIONALLY,  TRIAL BY
JURY IN ANY ACTION  BROUGHT ON,  UNDER OR BY VIRTUE OF OR RELATING IN ANY WAY TO
THE  AGREEMENT  OR THIS  SUPPLEMENT  OR ANY OF THE OTHER  DOCUMENTS  EXECUTED IN
CONNECTION  HEREWITH,  OR ANY CLAIM,  DEFENSE,  RIGHT OF SETOFF OR OTHER  ACTION
PERTAINING  HERETO,  OR TO ANY OF THE FOREGOING,  WHETHER  SOUNDING IN CONTRACT,
TORT OR OTHERWISE.

      IN WITNESS WHEREOF,  the parties hereto have duly executed this Supplement
on the day and year first above written.

                                    AVID SPORTSWEAR, INC.,
                                    a California corporation

                                    By:_______________________________________
                                       Title:_________________________________

Accepted in Los Angeles, California

GE CAPITAL COMMERCIAL SERVICES, INC.

By:_________________________________
   Title:___________________________

Date: ________ ___, 2000

                                      -4-EXHIBIT 10.20

               FORM OF FACTORING AGREEMENT - INVENTORY SUPPLEMENT
                                 (WITH ADVANCES)

      THIS FACTORING AGREEMENT - INVENTORY SUPPLEMENT (this "SUPPLEMENT"),  made
and executed this ____ day of ________,  2000,  by and between AVID  SPORTSWEAR,
INC.,  a  California  corporation  (the  "CLIENT");  and GE  CAPITAL  COMMERCIAL
SERVICES, INC. (the "FACTOR").

      1. This is a Supplement to that certain Factoring Agreement, dated of even
date herewith (such Factoring Agreement, as amended,  modified,  supplemented or
restated from time to time, being herein called the "AGREEMENT")  between Client
and Factor.  This  Supplement is hereby  incorporated  into the Agreement and is
made a part thereof.

      2. All capitalized terms used in this Supplement  without definition shall
have the meanings  ascribed to such terms in the  Agreement.  In addition to the
terms defined  elsewhere in this  Supplement or in the Agreement,  the following
terms shall have the following meanings:

      "CONTRACT  TERM" - the  period  from the date that the  Agreement  becomes
effective until the  termination  thereof by Client or Factor in accordance with
paragraph 17 of the Agreement.

      "ELIGIBLE  INVENTORY" - Client's  Inventory  consisting of finished  goods
which in each case (i) is readily  marketable  in its current  form,  (ii) is in
good, new and saleable  condition and not spoiled,  obsolete or  unmerchantable,
(iii) is subject to Factor's duly perfected first priority lien, (iv) is located
at one of  Client's  owned or leased  facilities  listed on  SCHEDULE  A hereto,
provided, however, in the case of such Inventory located at a leased facility of
Client,  no such Inventory shall be Eligible  Inventory unless Client shall have
procured for Factor's benefit a written agreement of the owner of such facility,
in form and substance  acceptable to Factor,  to waive for the benefit of Factor
any lien or  security  interest  which  such  owner may at any time have in such
Inventory  and to afford  Factor  access to and the right to  repossess  or take
possession  of such  Inventory;  (v) is not  subject  to any  license  or  other
agreement that would condition or restrict Client's or Factor's right to sell or
otherwise  dispose of such  Inventory,  (vi) meets all standards  imposed by any
governmental agency or authority, (vii) conforms in all material respects to the
covenants,   warranties  and   representations  of  Client  set  forth  in  this
Supplement,  and (viii) is deemed by Factor,  in its discretion,  to be Eligible
Inventory. Work in process shall not be deemed Eligible Inventory.

      "INVENTORY" - all of Client's  inventory,  including,  without limitation,
all goods intended for sale or lease by Client, or for display or demonstration;
all work in process; all raw materials and other materials and supplies of every
nature  and  description  used or  which  might be used in  connection  with the
manufacture,  printing,  packing,  shipping,  advertising,  selling,  leasing or
furnishing  of such goods or  otherwise  used or consumed in Client's  business,
whether now owned or hereafter acquired by Client, and wherever located.

      "INVENTORY  ADVANCES" - the loans and  advances  made from time to time by
Factor to Client under this Supplement.

<PAGE>

      "INVENTORY  LINE  AMOUNT"-  the  sum  of  _______________________  Dollars
($____________).

      "INVENTORY BORROWING BASE" - at any date of the determination  thereof, an
amount equal to (i) ________ percent (__%) of Client's  Eligible  Inventory,  at
such  date,  calculated  on the  basis  of  lower of cost or  market  with  cost
calculated on a first-in,  first-out  basis,  less (ii) reserves with respect to
such matters,  events,  conditions or contingencies  as to which Factor,  in its
discretion, determines should he established from time to time.

      "INVENTORY COLLATERAL" - as defined in Section 3 of this Supplement.

      3.  As  security  for  all of the  Obligations  (including  the  Inventory
Advances,  Factor  Guaranties and Advances under the  Agreement),  Client hereby
pledges and grants to Factor a continuing  general lien on and security interest
in all following property and interests in property of Client, whether now owned
or hereafter acquired and wheresoever located (the "INVENTORY COLLATERAL"):

          (a) All Inventory;

          (b) All cash and non-cash proceeds of the Inventory; and

          (c) All books  and  records  (including,  without  limitation,  credit
      files,  computer  programs,  print-outs,  and other computer materials and
      records)  of Client  pertaining  to any of the types or items of  property
      described in any of clauses (a) through (b) above.

      4.  Factor's  lien and  security  interest  shall  extend  and  attach  to
Inventory  which is presently  in  existence  and which is owned by Client or in
which Client has an interest,  and all  Inventory  which Client  purchases or in
which  Client may  acquire an  interest at any time and from time to time in the
future, whether such Inventory is in transit or in Client's constructive, actual
or  exclusive  occupancy or  possession  or not, or held by Client or others for
Factor's  account and wherever the same may be located,  including,  but without
limiting the generality of the foregoing,  all Inventory which may be located on
Client's  premises or upon the  premises  of any  carriers,  forwarding  agents,
truckers, warehousemen,  vendors, selling agents, finishers, converters or other
third parties who may have possession of the Inventory.

      5. Upon Client's request at any time during the Contract Term,  Factor may
make Inventory Advances to Client, on a revolving credit basis, at Factor's sole
discretion,  up  to a  maximum  principal  amount  of  such  Inventory  Advances
outstanding  at any time equal to the lesser of (1) the Inventory Line Amount or
(2) the Inventory  Borrowing  Base at such time.  If Factor so requires,  Client
will  execute  a note or notes  or other  instruments  of  indebtedness  in form
satisfactory  to  Factor  evidencing  the  Inventory  Advances  made  to  Client
hereunder.  Client shall pay interest on the outstanding Inventory Advances at a
rate equal to the Governing  Rate.  Interest will be calculated on a daily basis
(computed  on the actual  number of days  elapsed  over a year of three  hundred
sixty  (360)  days)  and shall be  payable  on the last day of each  month.  The
applicable  Governing  Rate for the balance of the  calender  month during which
this Supplement  becomes effective shall be based on the Index Rate in effect on
the  last  day of the  month  preceding  the  date  of this  Supplement  and the
applicable  Governing Rate for each month thereafter shall be based on the Index
Rate in effect on the last day of the preceding calendar month.  However,  in no

                                      -2-
<PAGE>

event shall the rate of interest agreed to or charged to Client hereunder exceed
the  maximum  rate of  interest  permitted  to be agreed to or charged to Client
under  applicable law. All of the Inventory  Advances shall be payable by Client
upon the earlier of the  expiration  of the  Contract  Term or Factor's  demand.
Recourse to the security for the Inventory  Advances will not be required at any
time.

      6. Client warrants and represents to Factor that all Inventory is and will
be  owned  by  Client,   free  of  all  other  liens,   security  interests  and
encumbrances; that the lien and security interest created hereby is and shall at
all  times be a first  and  only  lien on the  Inventory;  that  Client  has the
unrestricted  right and power to enter into this  Supplement  and grant Factor a
lien and  security  interest on the  Inventory  Collateral.  Client shall at all
times keep the  Inventory  Collateral  at the  locations set forth on schedule A
attached  hereto  except for sales in the ordinary  course of  business.  Client
will,  at  Client's  sole  expense,  forever  warrant  and defend the  Inventory
Collateral  against  any and all claims or demands  of any other  person,  firm,
entity or corporation adverse to Factor's interest therein.

      7.  Factor's lien on the Inventory  shall  continue  through all stages of
manufacture  and shall,  without  further  act,  attach to goods in process,  to
finished goods, to the accounts  receivable or other proceeds resulting from the
sale or other  disposition  thereof and to all such Inventory as may be returned
to Client by customers. From time to time hereafter, Client shall provide Factor
with one or more  separate  written  statements,  dated and  signed  by  Client,
describing,  designating,  identifying  and  evaluating  all  Inventory  now and
hereafter owned by Client,  confirming Factor's lien and security interest. Upon
the sale, exchange, or other disposition of the Inventory, the security interest
and lien created and  provided  for herein  shall  continue in and attach to the
instruments for the payment of money,  accounts,  contract rights,  documents of
titles,  shipping  documents,  exchange  or  disposition,   including  Inventory
returned or rejected by customers or repossessed by either Client or Factor.  As
to any such sale,  exchange or disposition,  Factor shall have all of the rights
of an unpaid seller, including stoppage in transit, replevin and reclamation.

      8. Client will promptly pay, when due, all taxes,  assessments,  claims or
other charges levied or assessed upon the  Inventory.  In the event Client fails
to pay such  taxes,  assessments,  claims or other  charges or fails to keep the
Inventory  Collateral free from any other lien or security interest,  Factor may
on  Client's  behalf  make  expenditures  for such  purposes  and any  amount so
expended shall be an Obligation secured hereby to be repaid with interest at the
rate applicable to the Inventory Advances.

      9. Except for sales made in the regular course of Client's business for so
long as no Event of Default  shall  exist,  Client  shall not sell,  encumber or
dispose  of or  permit  the  sale,  encumbrance  or  disposal  of any  Inventory
Collateral  without  Factor's  prior written  consent.  As sales are made in the
regular course of business,  Client shall,  in accordance with the provisions of
the  Agreement,   immediately  execute  and  deliver  to  Factor  schedules  and
assignments of accounts receivables created by Client that are sold and assigned
to  Factor  under  the  Agreement.  If sales  are made for  cash,  Client  shall
immediately  deliver or cause to be  delivered to Factor the  identical  checks,
cash or other forms of payment which Client receives.  All payments  received by
Factor on account of cash sales of Inventory,  as well as on account of accounts

                                      -3-
<PAGE>

receivable  sold and  assigned by Client  under the  Agreement,  will be applied
against the Obligations in accordance with the provisions of the Agreement.

      10. If any  Inventory  remains  in the  possession  or  control  of any of
Client's agents or processors,  Client shall notify such agents or processors of
Factor's  lien,  and upon Factor's  request shall instruct them to hold all such
Inventory  for  Factor's  account and subject to Factor's  instructions.  Client
agrees to maintain books and records  pertaining to the Inventory  Collateral in
such detail,  form and scope as Factor shall reasonably require. On the 15th and
30th day of each month during the term of the Agreement, Client shall deliver to
Factor an inventory report describing all existing Inventory by location,  type,
quantity  and  quality,  and  describing  any event  which has had or may have a
material  adverse  effect  on the  value  of the  Inventory  or on the  lien and
security interest granted to Factor herein. A physical listing of all Inventory,
wherever  located,  shall be taken by Client  whenever  reasonably  requested by
Factor,  and a copy of each such  physical  listing shall be supplied to Factor.
Factor may  examine  and inspect  the  Inventory  Collateral  at any time during
regular  business hours.  Client will execute and deliver to Factor from time to
time, upon demand,  such  supplemental  agreements or documents  relating to the
Inventory  Collateral  in  order  that  the  full  intent  and  purpose  of this
Supplement may be carried into effect.

      11. At Client's sole expense,  Client shall keep the Inventory (whether or
not in transit) continuously insured in amounts not less than its full insurable
value by a reputable and highly rated insurance company or companies  acceptable
to Factor in its  reasonable  discretion  against  loss or  damages  from  fire,
hazards included within the term "extended coverage", theft and such other risks
as Factor may require.  Each  insurance  policy shall  provide under a long form
loss payable clause that loss and proceeds thereunder shall be payable to Factor
as its interest may appear, shall provide at least ten (10) days' written notice
of cancellation  to Factor,  and shall specify that the interest of Factor shall
not be impaired or  invalidated  by any act or neglect of Client or the owner of
the Inventory or by the  occupation of the premises for purposes more  hazardous
than are  permitted  by such  policy.  Client  shall  deliver to Factor all such
insurance  policies or other evidence of compliance  satisfactory  to Factor and
Client,   shall  renew  each  policy  at  its  own  expense  and  shall  deliver
satisfactory  evidence  thereof to Factor not less than  thirty (30) days before
its expiration date. If Client fails to do so, Factor may procure such insurance
and the cost of such insurance  shall be additional  Obligations  secured hereby
and payable  with  interest at the interest  rate  applicable  to the  Inventory
Advances. Factor may act as attorney-in-fact for Client in obtaining, adjusting,
settling and canceling  such  insurance and endorsing any  instruments  relating
thereto, and in the event of loss or damages to the Inventory, Factor shall have
the option to apply the insurance  proceeds to the  Obligations  (whether or not
matured) or to the repair or replacement of the Inventory  after receiving proof
satisfactory to Factor of such repair or replacement.

      12. If an Event of Default shall occur, or if for any reason the Agreement
is terminated,  then Factor,  without  demand or notice,  may declare all of the
Obligations immediately due and payable  (notwithstanding that the maturity date
or dates  expressed in any evidence of such  indebtedness  may be otherwise) and
Factor may foreclose its lien or security  interest in the Inventory  Collateral
in any way permitted by law, and shall have, without limitation, the remedies of
a secured  party under the  Uniform  Commercial  Code as enacted in  California.

                                      -4-
<PAGE>

Factor may thereupon enter Client's  premises  without legal process and without
incurring  liability to Client and may remove the  Inventory  Collateral to such
place as Factor may deem advisable, or Factor may require Client to assemble and
make the Inventory Collateral available to Factor at a convenient place, or take
and maintain  possession on Client's  premises  and, with or without  having the
Inventory  Collateral at the time or place of sale, Factor may sell or otherwise
dispose  of all or any  part of the  Inventory  Collateral  whether  in its then
condition  or after  further  preparation  or  processing,  either  at public or
private  sale or at any  broker's  board,  in lots or in  bulk,  for cash or for
credit,  at any time or place,  in one or more  sales,  and upon such  terms and
conditions as Factor may elect.  Client agrees that five (5) days written notice
to Client of any public or private sale or other  disposition  of the  Inventory
Collateral  shall be reasonable  notice thereof.  At any such sale Factor may be
the purchaser. If any Inventory Collateral shall require rebuilding,  repairing,
maintenance,  preparation,  or is in process or other unfinished  state,  Factor
shall have the right,  at Factor's  option,  to do such  rebuilding,  repairing,
preparation,  processing  or  completion  of  manufacturing,  for the purpose of
putting the  Inventory  Collateral  in such  saleable  form as Factor shall deem
appropriate.  Factor is hereby granted a license or other right to use,  without
charge, Client's labels, patents,  copyrights,  rights of use of any name, trade
secrets,  tradenames,  trademarks and advertising  matter,  or any property of a
similar  nature,  as it pertains to the Inventory,  in advertising  for sale and
selling any of the  Inventory,  and  Client's  rights under all licenses and all
franchise agreements shall inure to Factor's benefit.

      13. In the event of any sale or other  disposition of the  Inventory,  the
proceeds  from any sale  shall be applied  first,  to the  costs,  expenses  and
attorneys' fees incurred by Factor in collecting the Obligations,  enforcing the
rights of  Factor  under  the  Agreement  and this  Supplement  and  collecting,
retaking, completing,  protecting, removing, storing, repairing, advertising and
finishing for sale, selling and delivering any Inventory, and all other expenses
of sale; second, to the interest due upon any of the Obligations;  and third, to
the  principal of the  Obligations  in such order as Factor may  determine.  Any
deficiency will be paid to Factor  forthwith upon demand and any surplus will be
paid to Client or other person legally entitled thereto.  The enumeration of the
foregoing  rights is not intended to be exhaustive and the exercise of any right
shall not  preclude  the  exercise  of any other  rights,  all of which shall be
cumulative.

      14. To the extent that any of the Obligations are now or hereafter secured
by property other than the Inventory Collateral or by the guaranty,  endorsement
or property of any other person, firm or corporation, then Factor shall have the
right to proceed against such other property,  guarantor or endorser, and Factor
shall have the right in its sole discretion to determine which rights, security,
liens,  security  interests  or  remedies  Factor  shall  at  any  time  pursue,
relinquish, modify or take any other action with respect thereto, without in any
way modifying or affecting any of them or any of Factor's rights hereunder.

      15. The lien, rights and security interest granted to Factor hereunder are
to continue in full force and effect,  notwithstanding  the  termination  of the
Agreement,  until the payment in full of all of the  Obligations,  and  Factor's
delay or omission to exercise any such lien,  right or security  interest  shall
not be deemed a waiver thereof or of any other right,  lien or security interest
unless such waiver be in writing and signed by Factor.  A waiver on one occasion
shall not be  construed as a bar to or waiver of any other rights or remedies on
any future occasion.

                                      -5-
<PAGE>

16.  Client  agrees to execute  and deliver to Factor all  financing  statements
provided  for  by the  Uniform  Commercial  Code  and  all  other  documents  or
instruments which may be required by law or which Factor may reasonably  request
to perfect its first priority security interest  hereunder and to cooperate with
Factor in the filing,  recording or renewal  thereof,  and to pay all filing and
recording fees and expenses related thereto,  and Client  authorizes  Factor and
any person  whom  Factor  designates  as  Client's  attorney  with power to sign
Client's  name  thereon,  if Client  declines to do so. This power being coupled
with an interest is  irrevocable  as long as Client is indebted to Factor in any
manner.

      17. This Supplement,  which is subject to modification only in writing, is
supplementary  to and is to be  considered  as a part of the Agreement and shall
take  effect  when  accepted  and signed by  Factor.  This  Supplement  shall be
interpreted  according to the laws of the State of California and shall inure to
the  benefit  of and be binding  upon the  parties  hereto and their  respective
successors and assigns.  Any notices,  demands,  consents,  or other writings or
communications  permitted  or required by this  Agreement  shall be given in the
manner and to the address as set forth in the Agreement.

      18. WAIVER OF JURY TRIAL.  TO THE FULLEST  EXTENT  PERMITTED BY APPLICABLE
LAW, FACTOR AND CLIENT HEREBY WAIVE,  IRREVOCABLY AND UNCONDITIONALLY,  TRIAL BY
JURY IN ANY ACTION  BROUGHT ON,  UNDER OR BY VIRTUE OF OR RELATING IN ANY WAY TO
THE  AGREEMENT  OR THIS  SUPPLEMENT  OR ANY OF THE OTHER  DOCUMENTS  EXECUTED IN
CONNECTION  HEREWITH,  OR ANY CLAIM,  DEFENSE,  RIGHT OF SETOFF OR OTHER  ACTION
PERTAINING  HERETO,  OR TO ANY OF THE FOREGOING,  WHETHER  SOUNDING IN CONTRACT,
TORT OR OTHERWISE.

      IN WITNESS WHEREOF,  the parties hereto have duly executed this Supplement
on the day and year first above written.

                                    AVID SPORTSWEAR, INC.,
                                    a California corporation

                                    By:_______________________________________
                                       Title:_________________________________

Accepted in Los Angeles, California:

GE CAPITAL COMMERCIAL SERVICES, INC.

By:_________________________________
   Title:___________________________

Date:  ________ ___, 2000

                                      -6-
<PAGE>

                                   SCHEDULE A
                                       TO
                   FACTORING AGREEMENT - INVENTORY SUPPLEMENT

                    SCHEDULE OF ELIGIBLE INVENTORY LOCATIONS
                    ----------------------------------------

        1.    19143 South Hamilton Avenue

              Gardena, California  90248

                                      -7-

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