Document:

<PAGE>

                                                                 EXHIBIT 10.3(a)

                          AMENDMENT NO. 1 AND WAIVER TO
                    SIXTH AMENDED AND RESTATED LOAN AGREEMENT

         AGREEMENT, made as of the 18th day of March, 2003, by and among:

         G-III LEATHER FASHIONS, INC., a New York corporation (the "BORROWER");

         The Lenders that have executed the signature pages hereto
(individually, a "LENDER" and, collectively, the "LENDERS"); and

         FLEET NATIONAL BANK, a national banking association, as Agent for the
Lenders (in such capacity, together with its successors in such capacity, the
"AGENT").

                              W I T N E S S E T H :

         WHEREAS:

         (A) The Borrower, the Lenders and the Agent are parties to a certain
Sixth Amended and Restated Loan Agreement dated as of April 29, 2002 (the
"ORIGINAL LOAN AGREEMENT"; the Original Loan Agreement, as amended hereby and as
it may from time to time be further amended, restated, supplemented or otherwise
modified, the "LOAN AGREEMENT");

         (B) The Borrower has requested that the Lenders and the Agent waive
certain Events of Default under, and amend certain provisions of, the Original
Loan Agreement, and the Lenders and the Agent are willing do so, all on the
terms and conditions hereinafter set forth; and

         (C) All capitalized terms used herein which are not otherwise defined
herein shall have the respective meanings ascribed thereto in the Original Loan
Agreement;

         NOW, THEREFORE, the parties hereto agree as follows:

         ARTICLE 1. CHANGE IN COMMITMENT.

         SECTION 1.1 COMMITMENT. From and after the date hereof, for purposes of
the Loan Agreement, the Commitment of each Lender shall be the amount set forth
opposite each Lender's name on the signature pages hereto as the same may be
reduced pursuant to the terms of the Loan Agreement, and such amount shall
supersede and be deemed to amend the amount of each Lender's respective
Commitment as set forth opposite its name on the signature pages to the Original
Loan Agreement.

         SECTION 1.2 ADJUSTMENT OF OUTSTANDING LOANS. If any Loans are
outstanding under the Original Loan Agreement on the date hereof, the Lenders
shall on the date hereof, at the direction of the Agent, make appropriate
adjustments among themselves in order to insure that the amount (and type) of
the Loans outstanding to the Borrower from each Lender under the Loan Agreement
(as of the date hereof) are proportionate to the aggregate amount of the
increased total Commitment. The Borrower agrees and consents to the terms of
this Section 1.2.

                                       1
<PAGE>

         ARTICLE 2. AMENDMENTS TO ORIGINAL LOAN AGREEMENT; SUBSTITUTED NOTES.

         SECTION 2.1 The Original Loan Agreement is hereby amended as follows:

                  (a) The definition of "Borrowing Base Maximum" appearing in
Article 1 of the Original Loan Agreement is deleted in its entirety and the
following is substituted therefor:

                  "'Borrowing Base Maximum' - as of any date during any period
set forth below, the amount set forth opposite such period:

                       Period                            Borrowing Base Maximum
                       ------                            ----------------------
    February 1, 2003 to and including                         $45,000,000
    April 30, 2003

    May 1, 2003 to and including                              $60,000,000
    June 30, 2003

    July 1, 2003 to and including                             $85,000,000
    September 30, 2003

    October 1, 2003 to and including                          $90,0000,000
    November 30, 2003

    December 1, 2003 to and including December                $60,000,000
    31, 2003

    January 1, 2004 to and including the                      $45,000,000
    Commitment Termination Date

and the respective periods and amounts for Fiscal Year 2005 and the Stub Period
shall be as preliminarily determined by the Lenders and the Borrower based on
the Projections and the business plan (in each case delivered pursuant to
Section 5.10(e)) for Fiscal Year 2005 and Fiscal Year 2006, respectively, and
the unaudited financial statements (delivered pursuant to Section 5.10(e)) for
Fiscal Year 2004 and Fiscal Year 2005, respectively, but in no event shall the
periods be of different durations or the amounts be less than the amounts for
the periods corresponding to the periods set forth above unless the Lenders
determine (in their reasonable discretion) that such periods and amounts warrant
adjustment based upon such Projections, business plan or unaudited financial
statements and such preliminary determination shall become effective after
receipt and satisfactory review by the Lenders of the Financial Statements for
Fiscal Year 2005 and Fiscal Year 2006, respectively."

                  (b) The definition of "Commitment" appearing in Article 1 of
the Original Loan Agreement is deleted in its entirety and the following is
substituted therefor:

                  "'Commitment' - Ninety Million ($90,000,000) Dollars in the
         aggregate, allocated among each of the Lenders, respectively in the
         amount set forth opposite such Lender's name on the signature pages to
         the First Amendment under the

                                       2
<PAGE>

         caption "Commitment", as such amount is reduced in accordance with the
         terms hereof."

                  (c) The definition of "Direct Debt Sublimit" appearing in
Article 1 of the Original Loan Agreement is deleted in its entirety and the
following is substituted therefor:

                  "'Direct Debt Sublimit' - for each period set forth below, the
amount set forth opposite such period:

                                "Period                  Direct Debt Sublimit
                                 ------                  --------------------

             February 1, 2003 to and including               $40,000,000
             May 31, 2003

             June 1, 2003 to and including                   $55,000,000
             June 30, 2003

             July 1, 2003 to and including                   $72,000,000
             November 30, 2003

             December 1, 2003 to and including               $50,000,000
             December 31, 2003

             January 1, 2004 to and including the            $40,000,000
             Commitment Termination Date

and the respective periods and amounts for Fiscal Year 2005 and the Stub Period
shall be as preliminarily determined by the Lenders and the Borrower based on
the Projections and the business plan (in each case delivered pursuant to
Section 5.10(e)) for Fiscal Year 2005 and Fiscal Year 2006, respectively, and
the unaudited financial statements (delivered pursuant to Section 5.10(e)) for
Fiscal Year 2004 and Fiscal Year 2005, respectively, but in no event shall the
periods be of different durations or the amounts be less than the amounts for
the periods corresponding to the periods set forth above unless the Lenders
determine (in their reasonable discretion) that such periods and amounts warrant
adjustment based upon such Projections, business plan or unaudited financial
statements and such preliminary determination shall become effective after
receipt and satisfactory review by the Lenders of the Financial Statements for
Fiscal Year 2005 and Fiscal Year 2006, respectively."

                  (d) The following new definition is inserted in the
appropriate alphabetical order in Article 1 of the Original Loan Agreement:

                  "'First Amendment' - shall mean Amendment No. 1 and Waiver to
         Sixth Amended and Restated Loan Agreement dated as of March 18, 2003,
         by and among the Borrower, the Lenders and the Agent."

                  (e) The definition of "Overadvance" appearing in Article 1 of
the Original Loan Agreement is amended by deleting the chart appearing therein
together with the text immediately beneath the chart and ending before the first
proviso and substituting therefor the following:

                                       3
<PAGE>

                                "Period                    Overadvance
                                 ------                    -----------
             March 15, 2003 to and including               $15,000,000
             April 30, 2003

             May 1, 2003 to and including                  $25,000,000
             May 31, 2003

             June 1, 2003 to and including                 $32,000,000
             July 31, 2003

             August 1, 2003 to and including               $27,500,000
             August 30, 2003

             August 31, 2003 to and including              $18,000,000
             September 29, 2003

             September 30, 2003 to and including           $10,000,000
             October 30, 2003

             October 31, 2003 to and including the             -$0-
             Commitment Termination Date

and the respective periods and amounts for Fiscal Year 2005 and the Stub Period
shall be as preliminarily determined by the Lenders and the Borrower based on
the Projections and the business plan (in each case delivered pursuant to
Section 5.10(e)) for Fiscal Year 2005 and Fiscal Year 2006, respectively, and
the unaudited financial statements (delivered pursuant to Section 5.10(e)) for
Fiscal Year 2004 and Fiscal Year 2005, respectively, but in no event shall the
periods be of different durations or the amounts be less than the amounts for
the periods corresponding to the periods set forth above unless the Lenders
determine (in their reasonable discretion) that such periods and amounts warrant
adjustment based upon such Projections, business plan or unaudited financial
statements, which preliminary determination shall be made within 70 days of
receipt by the Lenders of such Projections, business plan and unaudited
financial statements and such preliminary determination shall become effective
after receipt and satisfactory review by the Lenders of the Financial Statements
for Fiscal Year 2004 and Fiscal Year 2005, respectively;"

                  (f) Section 2.4(a) is deleted in its entirety and there is
substituted therefor the following:

                  "(a) The Loans made by each Lender shall be evidenced by a
         single promissory note of the Borrower in substantially the form of
         Exhibit A annexed to the First Amendment (each, a "SUBSTITUTED NOTE"
         and, collectively, the "SUBSTITUTED NOTES"). Each Substituted Note
         shall be dated the date of the First Amendment, shall be payable to the
         order of each Lender in a principal amount equal to such Lender's
         Commitment as in effect on the date of the First Amendment and shall
         otherwise be duly completed. All Loans made by each Lender hereunder
         and all payments and prepayments made on account of the principal
         thereof, and all conversions of such Loans shall be recorded by such

                                       4
<PAGE>

         Lender on the schedule attached to its Substituted Note (provided that
         any failure by such Lender to make any such endorsement shall not
         affect the obligations of the Borrower hereunder or under such
         Substituted Note in respect of such Loans). The Substituted Notes shall
         be payable as provided in Section 2.7."

                  (g) Section 6.9(a) of the Original Loan Agreement is deleted
in its entirety and the following is substituted therefor:

                           "(a) Have or maintain, with respect to the Parent on
         a consolidated basis, EBITDA on a cumulative basis from the first day
         of each fiscal year through the date set forth below at not less than,
         or, in the case of a loss, not more than, the respective amounts set
         forth below opposite each such last day of the fiscal quarter:

                      "Date                             EBITDA
                       ----                             ------

             April 30, 2003                          ($6,400,000)

             July 31, 2003                           ($5,200,000)

             October 31, 2003                        $11,400,000

             January 31, 2004                        $10,700,000

and the respective amounts for Fiscal Year 2005 and the Stub Period shall be
preliminarily determined by the Majority Lenders and the Borrower based on the
Projections and business plan (in each case delivered pursuant to Section
5.10(e)) for Fiscal Year 2005 and Fiscal Year 2006, respectively and the
unaudited financial statements (delivered pursuant to Section 5.10(e)) for
Fiscal Year 2004 and Fiscal Year 2005, respectively, but in no event shall the
periods be of different durations or the amounts be less than (if such amount is
negative) or greater than (if such amount is positive) the amounts for the
periods corresponding to the periods set forth above unless the Majority Lenders
determine (in their reasonable discretion) that such periods and amounts warrant
adjustment based on the financial condition of the Borrower as set forth in the
applicable Projections, business plan or unaudited financial statements, which
preliminary determination shall be made within 60 days of receipt by the Lenders
of such Projections, business plan and unaudited financial statements, and such
determination shall become effective after receipt and satisfactory review by
the Lenders of the Financial Statements for Fiscal Year 2004, and Fiscal Year
2005, respectively."

                  (h) Section 6.9(b) of the Original Loan Agreement is deleted
in its entirety and the following is substituted therefor:

                           "(b) Have or maintain, with respect to the Parent on
         a consolidated basis, Tangible Net Worth as of the dates set forth
         below at not less than the respective amounts set forth below opposite
         each such date:

                                                            Minimum
                                 "Date                 Tangible Net Worth
                                  ----                 ------------------

                            April 30, 2003                $47,500,000

                                       5
<PAGE>

                                                            Minimum
                                 Date                  Tangible Net Worth
                                 ----                  ------------------

                             July 31, 2003                $47,900,000

                           October 31, 2003               $57,600,000

                           January 31, 2004               $56,900,000

and the respective amounts for Fiscal Year 2005 and the Stub Period shall be
determined in the sole discretion of the Majority Lenders within 60 days of
receipt by the Lenders of the Projections and business plan (in each case
delivered pursuant to Section 5.10(e)) for Fiscal Year 2005 and Fiscal Year
2006, respectively and the unaudited financial statements (delivered pursuant to
Section 5.10(e)) for Fiscal Year 2004 and Fiscal Year 2005, respectively, and
such determination shall become effective after receipt and satisfactory review
by the Lenders of the Financial Statements for Fiscal Year 2004 and Fiscal Year
2005, respectively."

                  (i) Section 7.13 of the Original Loan Agreement (Capital
Expenditures) is amended by deleting the amount "$1,750,000" appearing therein
and substituting therefor the amount "$2,000,000".

SECTION 2.2 In order to evidence the Loans, as amended hereby, the Borrower
shall execute and deliver to each Lender, simultaneously with the execution and
delivery hereof, a promissory note payable to the order of such Lender in
substantially the form of Exhibit A annexed hereto (hereinafter referred to
individually as a "SUBSTITUTED NOTE" and collectively as the "SUBSTITUTED
NOTES"). Each Lender shall, upon the execution and delivery by the Borrower of
its applicable Substituted Note as herein provided, mark the Note delivered to
it in connection with the Original Loan Agreement "Replaced by Substituted Note"
and return it to the Borrower.

SECTION 2.3 (a) All references in the Original Loan Agreement or any other Loan
Document to the "Loan(s)", the "Note(s)", and the "Loan Documents" shall be
deemed to refer respectively, to the Loan(s) as amended hereby, the Substituted
Note(s), and the Loan Documents as defined in the Original Loan Agreement
together with, and as amended by, this First Amendment, the Substituted Notes
and all agreements, documents and instruments delivered pursuant thereto or in
connection therewith.

                  (b) All references in the Original Loan Agreement and the
other Loan Documents to the "Loan Agreement", and also in the case of the
Original Loan Agreement to "this Agreement", shall be deemed to refer to the
Original Loan Agreement, as amended hereby.

         SECTION 2.4 The Original Loan Agreement and the other Loan Documents
shall each be deemed amended and supplemented hereby to the extent necessary, if
any, to give effect to the provisions of this Agreement.

                                       6
<PAGE>

         ARTICLE 3. WAIVER.

         The Borrower has advised the Agent that:

                  (a) notwithstanding the requirement of subsection 6.9(a) of
the Original Loan Agreement, the Parent on a consolidated basis, had EBITDA on a
cumulative basis from the first day of its fiscal year through January 31, 2003
of less than $8,800,000; and

                  (b) notwithstanding the requirement of subsection 6.9(b) of
the Original Loan Agreement, as of January 31, 2003, the Parent on a
consolidated basis, had Tangible Net Worth of less than $53,500,000.

         Such failures to comply with the foregoing requirements of subsections
6.9(a) and 6.9(b) of the Original Loan Agreement constitute Events of Default
under Section 8.2 of the Loan Agreement (collectively, the "SPECIFIED EVENTS OF
DEFAULT").

                  The Lenders hereby waive the Specified Events of Default;
provided, however, the waivers granted by the undersigned pursuant hereto with
respect to the Specified Events of Default (i) are limited to the matters
expressly stated above and, only for the period and/or dates, as the case may
be, expressly stated above, and (ii) shall not be deemed to be a waiver of any
future violations of any such provisions or a waiver of any violations of any
other provisions of the Loan Agreement.

         ARTICLE 4. REPRESENTATIONS AND WARRANTIES.

                  Each of the Borrower and the other Loan Parties hereby
represents and warrants to the Lenders and the Agent that:

         SECTION 4.1 ARTICLE 3 OF ORIGINAL LOAN AGREEMENT; NO DEFAULTS.

                  (a) Each and every one of the representations and warranties
set forth in Article 3 of the Original Loan Agreement is true in all respects as
of the date hereof, except for changes which, either singly or in the aggregate,
are not materially adverse to the business or financial condition of the Parent
and its Subsidiaries, taken as a whole.

                  (b) As of the date hereof, after giving effect to this First
Amendment, there exists no Event of Default under the Loan Agreement, and no
event which, with the giving of notice or lapse of time or both, would
constitute such an Event of Default.

         SECTION 4.2 POWER, AUTHORITY, CONSENTS.

                  The Borrower and each other Loan Party has the power to
execute, deliver and perform this First Amendment, and with respect to the
Borrower, the Substituted Note. The Borrower has the power to borrow under the
Original Loan Agreement as amended hereby and has taken all necessary corporate
action to authorize the borrowing hereunder. Other than due authorization by the
Board of Directors of the Borrower and each other Loan Party, each of which has
been duly obtained, no consent or approval of any Person (including, without
limitation, any stockholder of any corporate Loan Party or any partner in any
partnership Loan Party), no consent or approval of any landlord or mortgagee, no
waiver of any Lien or right of

                                       7
<PAGE>

distraint or other similar right and no consent, license, approval,
authorization or declaration of any governmental authority, bureau or agency, is
or will be required in connection with the execution, delivery or performance by
the Borrower or any other Loan Party, or the validity or enforcement of this
First Amendment or the Substituted Note.

         SECTION 4.3 NO VIOLATION OF LAW OR AGREEMENTS.

                  The execution and delivery by the Borrower and each other Loan
Party of this First Amendment (and with respect to the Borrower, the Substituted
Note) and the performance by each of them hereunder, will not violate any
provision of law or conflict with or result in a breach of any order, writ,
injunction, ordinance, resolution, decree or other similar document or
instrument of any court or governmental authority, bureau or agency, domestic or
foreign, or the certificate of incorporation or by-laws of the Borrower or any
other corporate Loan Party or the partnership agreement or any other
organizational document of any Loan Party that is not a corporation, or create
(with or without the giving of notice or lapse of time, or both) a default under
or breach of any agreement, bond, note or indenture to which the Borrower or any
Loan Party is a party, or by which any of them is bound or any of their
respective properties or assets is affected (which default or breach would have
a material adverse effect on the business, financial conditions or operations of
the Borrower, the Parent and the Subsidiaries taken as a whole), or result in
the imposition of any Lien of any nature whatsoever upon any of the properties
or assets owned by or used in connection with the business of any of them except
for the Liens created and granted pursuant to the Security Documents, as
confirmed hereby.

         SECTION 4.4 DUE EXECUTION, VALIDITY, ENFORCEABILITY.

                  This First Amendment and the Substituted Note have each been
duly executed and delivered by each Loan Party which is a party hereto and each
constitutes the valid and legally binding obligation of the Borrower or such
other Loan Party that is a party thereto, enforceable in accordance with its
terms; provided, however, that enforcement may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium, or other similar laws, now
or hereafter in effect, relating to or affecting the enforcement of creditors'
rights generally and the remedy of specific performance and other equitable
remedies are subject to judicial discretion.

         ARTICLE 5. ACKNOWLEDGMENTS, CONFIRMATIONS, CONSENTS.

                  (a) The Borrower hereby acknowledges and confirms that (i) the
Liens and security interests granted pursuant to the Security Documents to which
it is a party secure, without limitation, the due payment and performance of all
of the Indebtedness, liabilities and obligations of the Borrower to the Lenders
and the Agent under the Original Loan Agreement, as amended hereby and the
Substituted Note, whether or not so stated in each of the Security Documents,
and (ii) the term "Obligations" as used in the Security Documents (or any other
term used therein to describe or refer to the Indebtedness, liabilities and
obligations of the Borrower to the Lenders and the Agent) includes, without
limitation, the Indebtedness, liabilities and obligations of the Borrower to the
Lenders and the Agent under the Original Loan Agreement, as amended hereby and
the Substituted Note.

                  (b) Each Guarantor hereby consents in all respects to the
execution by the Borrower of this First Amendment and acknowledges and confirms
that (i) the Guarantee Agreement guarantees, without limitation, the full
payment and performance of the Indebtedness,

                                       8
<PAGE>

liabilities and obligations of the Borrower under the Original Loan Agreement,
as amended hereby and the Substituted Note, and (ii) the term "Obligations" as
used in the Guarantee Agreement (or any other term used therein to describe or
refer to the Indebtedness, liabilities and obligations of the Borrower or the
Guarantor(s) to the Lenders and the Agent) includes, without limitation, all of
the Indebtedness, liabilities and obligations of the Borrower to the Lenders and
the Agent under the Original Loan Agreement, as amended hereby and the
Substituted Note.

                  (c) Each Corporate Guarantor hereby acknowledges and confirms
that (i) the Liens and security interests granted pursuant to the Security
Documents to which it is a party, secure, without limitation, all of the
Indebtedness, liabilities and obligations of such Corporate Guarantor to the
Lenders and the Agent under the Guarantee Agreement, as confirmed hereby, and
(ii) the term "Obligations" as used in the Security Documents (or any other term
used therein to describe or refer to the Indebtedness, liabilities and
obligations of such Corporate Guarantor to the Lenders and the Agent) includes,
without limitation, the Indebtedness, liabilities and obligations of such
Corporate Guarantor under the Guarantee Agreement, as confirmed hereby.

         ARTICLE 6. CONDITIONS TO EFFECTIVENESS OF THIS FIRST AGREEMENT.

                  This First Amendment shall become effective on the date of the
fulfillment (to the satisfaction of the Agent) of the following conditions
precedent:

                  (a) This First Amendment shall have been executed and
delivered to the Agent by a duly authorized representative of the Borrower, the
Agent and each Lender.

                  (b) The Borrower shall have executed and delivered to each
Lender its Substituted Note.

                  (c) The Agent shall have received a Compliance Certificate
from the Borrower dated the date hereof and the matters certified therein,
including, without limitation, that after giving effect to the terms and
conditions of this First Amendment, no Default or Event of Default shall exist,
shall be true.

                  (d) The Agent shall have received copies of the following:

                           (i) Copies of all corporate action taken by the
Borrower to authorize the execution, delivery and performance of this First
Amendment, the Substituted Note and the transactions contemplated hereby,
certified by its Secretary;

                           (ii) A certificate from the Secretary of the Borrower
to the effect that since May 31, 1999 there have been no amendments,
modifications or supplements to the Certificate of Incorporation or By-laws of
the Borrower; and

                           (iii) An incumbency certificate (with specimen
signatures) with respect to the Borrower.

                  (e) The Borrower shall have paid to the Agent for the ratable
benefit of the Lenders, a waiver fee in the amount of $50,000.

                                       9
<PAGE>

                  (f) All legal matters incident hereto shall be satisfactory to
the Agent and its counsel.

         ARTICLE 7. MISCELLANEOUS.

         SECTION 7.1 ARTICLE 10 OF THE ORIGINAL LOAN AGREEMENT. The
miscellaneous provisions under Article 10 of the Original Loan Agreement,
together with the definition of all terms used therein, and all other sections
of the Original Loan Agreement to which Article 10 refers are hereby
incorporated by reference as if the provisions thereof were set forth in full
herein, except that (i) the terms "Loan Agreement", "Note(s)" and "Loan", shall
be deemed to refer, respectively, to the Original Loan Agreement, as amended
hereby, the Substituted Note(s) and the Loans, as amended hereby; (ii) the term
"this Agreement" shall be deemed to refer to this Agreement; and (iii) the terms
"hereunder" and "hereto" shall be deemed to refer to this Agreement.

         SECTION 7.2 CONTINUED EFFECTIVENESS. Except as amended hereby, the
Original Loan Agreement and the other Loan Documents are hereby ratified and
confirmed in all respects and shall remain in full force and effect in
accordance with their respective terms.

         SECTION 7.3 COUNTERPARTS. This Agreement may be executed by the parties
hereto in one or more counterparts, each of which shall be an original and all
of which shall constitute one and the same agreement.

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed on the date first above written.

                                      G-III LEATHER FASHIONS, INC.

                                      BY: /S/ WAYNE MILLER
                                          ------------------------------------
                                          NAME: WAYNE S. MILLER
                                          TITLE: CHIEF FINANCIAL OFFICER

                    [SIGNATURES CONTINUED ON FOLLOWING PAGES]

                                       10
<PAGE>

Agreed:

G-III HONG KONG LTD.

By: /s/ Wayne Miller
------------------------------------
    Director

G-III APPAREL GROUP, LTD.

By: /s/ Wayne Miller
------------------------------------
    Senior Vice President

SIENA LEATHER LTD.

By: /s/ Wayne Miller
------------------------------------
    Vice President

GLOBAL INTERNATIONAL TRADING
COMPANY

By: /s/ Wayne Miller
------------------------------------
    Vice President

INDAWA HOLDING CORP.

By: /s/ Wayne Miller
------------------------------------
    Vice President

GLOBAL APPAREL SOURCING, LTD.

By: /s/ Wayne Miller
------------------------------------
    Vice President

G-III RETAIL OUTLETS INC.

By: /s/ Wayne Miller
------------------------------------
    Vice President

                                       11
<PAGE>

P.T. BALIHIDES

By: /s/ K. Sutton Jones
------------------------------------
    Title

WEE BEEZ INTERNATIONAL LIMITED

By: /s/ Wayne Miller
------------------------------------
    Director

KOSTROMA LTD.

By: /s/ Wayne Miller
------------------------------------
    Director

G-III LICENSE COMPANY, LLC
BY G-III APPAREL GROUP, LTD. AS MANAGER

By: /s/ Wayne Miller
------------------------------------
    Senior Vice President

G-III BRANDS, LTD.

By: /s/ Philip H. Litwinoff
------------------------------------
    Chief Financial Officer

                                       12
<PAGE>

COMMITMENT                          FLEET NATIONAL BANK,
----------                          AS AGENT, COLLATERAL MONITORING AGENT,
$22,053,312.00                      ISSUING BANK AND AS A LENDER

                                    BY: /S/ JOSEPH J. NASTRI
                                        --------------------------------------
                                        NAME:  JOSEPH J. NASTRI
                                        TITLE: SENIOR VICE PRESIDENT

                          G-III Leather Fashions, Inc.
                  Signature Page to Amendment No. 1 and Waiver
     to Sixth Amended and Restated Loan Agreement dated as of March 18, 2003

                                       13
<PAGE>

COMMITMENT                               JPMORGAN CHASE BANK
----------

$18,786,150.00
                                         BY: /S/ LOUIS J. MASTRIANNI
                                             ----------------------------------
                                             NAME:  LOUIS J. MASTRIANNI
                                             TITLE: VICE PRESIDENT

                          G-III Leather Fashions, Inc.
                  Signature Page to Amendment No. 1 and Waiver
     to Sixth Amended and Restated Loan Agreement dated as of March 18, 2003

                                       14
<PAGE>

COMMITMENT                                  THE CIT GROUP/COMMERCIAL
----------                                  SERVICES, INC.
$17,969,384.00

                                            BY: /S/ KEVIN J. GILLESPIE
                                                -------------------------------
                                                NAME:  KEVIN J. GILLESPIE
                                                TITLE: VICE PRESIDENT

                          G-III Leather Fashions, Inc.
                  Signature Page to Amendment No. 1 and Waiver
     to Sixth Amended and Restated Loan Agreement dated as of March 18, 2003

                                       15
<PAGE>

COMMITMENT                                 ISRAEL DISCOUNT BANK OF NEW YORK
----------

$9,485,298.00
                                           BY: /S/ MATILDE REYES
                                               --------------------------------
                                               NAME:  MATILDE REYES
                                               TITLE: VICE PRESIDENT

                                           BY: /S/ HOWARD WEINBERG
                                               --------------------------------
                                               NAME:  HOWARD WEINBERG
                                               TITLE: SENIOR VICE PRESIDENT I

                          G-III Leather Fashions, Inc.
                  Signature Page to Amendment No. 1 and Waiver
     to Sixth Amended and Restated Loan Agreement dated as of March 18, 2003

                                       16
<PAGE>

3

COMMITMENT                                 HSBC BANK USA

$13,764,708.00
                                           BY: /S/ MICHAEL P. BEHUNIAK, JR.
                                               --------------------------------
                                               NAME:  MICHAEL P. BEHUNIAK, JR.
                                               TITLE: VICE PRESIDENT

                          G-III Leather Fashions, Inc.
                  Signature Page to Amendment No. 1 and Waiver
     to Sixth Amended and Restated Loan Agreement dated as of March 18, 2003

                                       17
<PAGE>

COMMITMENT                                           BANK LEUMI USA
----------

$7,941,177.00

                                           BY: /S/ JOHN KOENIGSBERG
                                               --------------------------------
                                               NAME:  JOHN KOENIGSBERG
                                               TITLE: FIRST VICE PRESIDENT

                                           BY: /S/ PHYLLIS ROSENFELD
                                               --------------------------------
                                               NAME:  PHYLLIS ROSENFELD
                                               TITLE: VICE PRESIDENT

                          G-III Leather Fashions, Inc.
                  Signature Page to Amendment No. 1 and Waiver
     to Sixth Amended and Restated Loan Agreement dated as of March 18, 2003

                                       18
<PAGE>

                   EXHIBIT A TO AMENDMENT NO. 1 AND WAIVER TO
                    SIXTH AMENDED AND RESTATED LOAN AGREEMENT
                                  BY AND AMONG
                          G-III LEATHER FASHIONS, INC.
                            THE LENDERS NAMED THEREIN
                                       AND
                              FLEET NATIONAL BANK,
             AS AGENT, COLLATERAL MONITORING AGENT AND ISSUING BANK

                            FORM OF SUBSTITUTED NOTE

$_____________                                               New York, New York
                                                                 March 18, 2003

         FOR VALUE RECEIVED, the undersigned G-III LEATHER FASHIONS, INC., a New
York corporation (the "Borrower"), hereby promises to pay to the order of
__________________ (the "Lender") on May 31, 2005 or on such earlier date as is
provided for in the Sixth Amended and Restated Loan Agreement dated as of April
29, 2002 (as such Loan Agreement may be amended, modified or supplemented, the
"Loan Agreement") among the Borrower, the lenders signatory thereto and Fleet
National Bank, as Collateral Monitoring Agent, Issuing Bank and Agent (in its
capacity as Collateral Monitoring Agent, together with its successors and
assigns, the "Collateral Monitoring Agent"), the lesser of (i) the principal sum
of __________ ($________) or (ii) the outstanding portion of the aggregate
unpaid principal amount of the Loans (as defined in the Loan Agreement) made by
the Lender to the Borrower pursuant to the Loan Agreement, and to pay interest
on the unpaid principal amount of each Loan from the date thereof at the rates
per annum and for the periods set forth in or established by the Loan Agreement
and calculated as provided therein.

         All indebtedness outstanding under this Note shall bear interest
(computed in the same manner as interest on this Note prior to maturity) after
maturity, whether at stated maturity, by acceleration or otherwise, at the
Post-Default Rate (as defined in the Loan Agreement), and all such interest
shall be payable on demand.

         Anything herein to the contrary notwithstanding, the obligation of the
Borrower to make payments of interest shall be subject to the limitation that
payments of interest shall not be required to be made to the Lender to the
extent that the Lender's receipt thereof would not be permissible under the law
or laws applicable to the Lender limiting rates of interest which may be charged
or collected by the Lender. Any such payments of interest which are not made as
a result of the limitation referred to in the preceding sentence shall be made
by the Borrower to the Lender on the earliest interest payment date or dates on
which the receipt thereof would be permissible under the laws applicable to the
Lender limiting rates of interest which may be charged or collected by the
Lender.

         Payment of both principal and interest on this Note are to be made at
the office of the Collateral Monitoring Agent at 1185 Avenue of the Americas,
New York, New York 10036 or such other place as the holder hereof shall
designate to the Borrower in writing, in lawful money of the United States of
America in immediately available funds.

<PAGE>

         The Lender is hereby authorized by the Borrower to record on the
schedule to this Note (or on a supplemental schedule thereto) the amount of each
Loan made by the Lender to the Borrower and the amount of each payment or
prepayment of principal of such Loans received by the Lender, it being
understood, however, that failure to make any such notation shall not affect the
rights of the Lender or the obligations of the Borrower hereunder in respect of
this Note. The Lender may, at its option, record such matters in its internal
records rather than on such schedule.

         The Borrower and any Guarantor hereby grant to the Lender a lien,
security interest and right of setoff as security for all liabilities and
obligations to the Lender whether, now existing or hereafter arising, upon and
against all deposits, credits, collateral and property, now or hereafter in the
possession, custody, safekeeping or control of the Lender or any entity under
the control of the Lender or in transit to any of them. At any time, without
demand or notice, the Lender may set off the shares or any part thereof and
apply the same to any liability or obligation of Borrower and any Guarantor even
though unmatured and regardless of the adequacy of any other collateral securing
the Loan. ANY AND ALL RIGHTS TO REQUIRE THE LENDER TO EXERCISE ITS RIGHTS OR
REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE LOAN, PRIOR TO
EXERCISING ITS RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER
PROPERTY OF THE BORROWER OR ANY GUARANTOR, ARE HEREBY KNOWINGLY, VOLUNTARILY AND
IRREVOCABLY WAIVED.

         This Note is one of the Substituted Notes referred to in the First
Amendment, is secured in the manner provided therein, may be prepaid upon and
subject to terms and conditions thereof and is entitled to the benefits thereof.

         This Note shall be deemed to be in substitution for and replacement of,
and not a repayment of the Note dated as of April 29, 2002 made by the Borrower
payable to the Lender (the "Prior Note") and all interest accrued and unpaid
under such Prior Note shall be deemed evidenced by this Note and payable
hereunder from and after the date of accrual thereof. The execution and delivery
of this Note shall not be construed (i) to have constituted repayment of any
amount of principal or interest on the Prior Note, or (ii) to release, cancel,
terminate or otherwise impair all or any part of any lien or security interest
granted to the Lenders party to the Loan Agreement or their agents as collateral
security for the Prior Note.

         Upon the occurrence of any Event of Default, as defined in the Loan
Agreement, the principal amount of and accrued interest on this Note may be
declared due and payable in the manner and with the effect provided in the Loan
Agreement.

         The Borrower shall pay costs and expenses of collection, including,
without limitation, attorneys' fees and disbursements in the event that any
action, suit or proceeding is brought by the holder hereof to collect this Note.

         All capitalized terms used herein that are defined in the Loan
Agreement and that are not otherwise defined herein shall have the respective
meanings ascribed thereto therein, unless the context otherwise requires.

                                       2
<PAGE>

         THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO ITS RULES
PERTAINING TO CONFLICTS OF LAWS. THE BORROWER AND THE LENDER MUTUALLY HEREBY
KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN
RESPECT OF ANY CLAIM BASED HEREON, ARISING OUT OF, UNDER OR IN CONNECTION WITH
THIS NOTE OR ANY OTHER LOAN DOCUMENTS CONTEMPLATED TO BE EXECUTED IN CONNECTION
HEREWITH OR ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS (WHETHER
VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY. THIS WAIVER CONSTITUTES A MATERIAL
INDUCEMENT FOR THE LENDER TO ACCEPT THIS NOTE AND MAKE THE LOAN.

                                           G-III LEATHER FASHIONS, INC.

                                           BY:
                                               --------------------------------
                                               NAME:  WAYNE S. MILLER
                                               TITLE: SENIOR VICE PRESIDENT

                                       3<PAGE>
                                                                  EXHIBIT 10.23

                            POWER SALE, FUEL SUPPLY
                             AND SERVICES AGREEMENT

         THIS POWER SALE, FUEL SUPPLY AND SERVICES AGREEMENT (this
"Agreement"), dated as of May 1, 2003 (the "Effective Date"), is by and between
MIRANT AMERICAS ENERGY MARKETING, LP, a Delaware limited partnership ("MAEM"),
and MIRANT MID-ATLANTIC, LLC, a Delaware limited liability company (the
"Project Company").

                                    RECITALS

         WHEREAS, Project Company owns and/or leases and operates certain
electric generating facilities as set forth on Exhibit A hereto (the
"Generating Stations");

         WHEREAS, Project Company desires to contract herein to sell capacity,
electricity and/or ancillary services to MAEM, and MAEM desires to purchase
such capacity, electricity and/or ancillary services on the terms and
conditions set forth herein;

         WHEREAS, Project Company desires that MAEM provide fuel to Project
Company, and MAEM desires to provide fuel on the terms and conditions set forth
herein;

         WHEREAS, Project Company desires that MAEM perform certain services
related to the management and operation of the Generating Stations, and MAEM
desires to perform such services; and

         WHEREAS, Project Company and MAEM are parties to certain Prior
Agreements (as defined herein) which shall be terminated and superceded by the
terms of this Agreement.

         NOW, THEREFORE, in consideration of the foregoing and the mutual
covenants contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged by the Parties, the
Parties hereby agree as follows:

                                   ARTICLE 1.
                                  DEFINITIONS

         The following capitalized terms, whether used in the singular or
plural, shall be defined as provided in this Article 1.

         "Affiliate" of a person, firm, corporation, limited liability company,
partnership or other entity (a "Person") means any other Person which, directly
or indirectly, controls, is controlled by or is under common control with such
Person.

         "Asset Book" has the meaning set forth in Section 5.1.

                                       1
<PAGE>

         "Bankruptcy Proceeding" means, with respect to a Party, that Party (a)
is dissolved (other than pursuant to a consolidation, amalgamation or merger),
(b) makes an assignment or any general arrangement for the benefit of
creditors, (c) institutes or has instituted against it a proceeding seeking a
judgment of insolvency or bankruptcy or any other relief under any bankruptcy
or insolvency or other law affecting creditors' rights and, in the case of any
such proceeding or petition instituted or presented against it, such proceeding
or petition (i) results in a judgment of insolvency or bankruptcy or the entry
of an order for its winding-up or liquidation or (ii) is not withdrawn,
dismissed or discharged within sixty (60) days after the institution or
presentation thereof, (d) otherwise becomes bankrupt or insolvent (however
evidenced), (e) has a secured party take possession of all or substantially all
of its assets or has an action or proceeding taken or levied against all or
substantially all of its assets and such secured party maintains possession, or
any such action or proceeding is not dismissed, in either case for thirty (30)
days thereafter, or (f) is unable to pay its debts or admits its inability
generally to pay its debts as they become due.

         "Claims" means all claims or actions, threatened or filed, whether
groundless, false or fraudulent, that directly or indirectly relate to the
subject matter of an indemnity, and the resulting losses, damages, expenses,
attorneys' fees and court costs, whether incurred by settlement or otherwise,
and whether such claims or actions are threatened or filed prior to or after
the termination of this Agreement.

         "Delivery Point" means the high side of the generation step-up
transformer located at the Generation Facility, where it connects to the
Transmission Provider's transmission system.

         "Effective Date" has the meaning set forth in the Preamble.

         "Emission Allowances" means authorizations under state or federal (as
applicable) air quality regulations to emit either one ton of nitrogen oxides
("NOx") or sulfur dioxide ("SO2").

         "Event of Default" has the meaning set forth in Section 9.1.

         "Expenses" has the meaning set forth in Section 8.2.

         "Facility Lease Event of Default" shall have the meaning ascribed to
such term in the Participation Agreements dated as of December 18, 2000 among
Mirant Mid-Atlantic, LLC and the owners of the leased assets at the Dickerson
and Morgantown generating stations, Wilmington Trust Company and State Street
Bank and Trust Company of Connecticut, National Association.

         "Force Majeure" means an event or circumstance which prevents one
Party from performing its obligations, which event or circumstance was not
anticipated as of the date the transaction was agreed to, which is not within
the reasonable control of, or the result of the negligence of, the claiming
Party, and which, by the exercise of due diligence, the claiming Party is
unable to overcome or avoid or cause to be avoided. Force Majeure shall not be
based on (i) the loss of MAEM's markets; (ii) MAEM's inability economically to
use or resell the

                                       2
<PAGE>

Product purchased hereunder; (iii) the loss or failure of Project Company's
supply; or (iv) Project Company's ability to sell the Product at a price
greater than the purchase price set forth in this Agreement. Neither Party may
raise a claim of Force Majeure based in whole or in part on curtailment by a
Transmission Provider unless (i) such Party has contracted for firm
transmission with a transmission provider for the Product to be delivered to or
received at the Delivery Point and (ii) such curtailment is due to "force
majeure" or "uncontrollable force" or a similar term as defined under the
Transmission Provider's tariff; provided, however, that existence of the
foregoing factors shall not be sufficient to conclusively or presumptively
prove the existence of a Force Majeure absent a showing of other facts and
circumstances which in the aggregate with such factors establish that a Force
Majeure as defined in the first sentence hereof has occurred.

         "Fuel" means fuel oil, natural gas or coal, as dictated by context.

         "Generating Stations" has the meaning provided in the recitals.

         "Good Utility Practices" mean any of the practices, methods or acts
engaged in or approved by a significant portion of the electric energy industry
with respect to similar facilities during the relevant time period which in
each case, in the exercise of reasonable judgment in light of the facts known
or that should have been known at the time a decision was made, could have been
expected to accomplish the desired result at reasonable cost consistent with
good business practices, reliability, safety, law, regulation, environmental
protection and expedition. Good Utility Practices are not intended to be
limited to the optimum practices, methods or acts to the exclusion of all
others, but rather to delineate the acceptable practices, methods or acts
generally accepted in such industry.

         "Gross Revenues" has the meaning provided in Section 8.2.

         "Interest Rate" means, for any date, two percent (2%) over the per
annum rate of interest equal to the prime lending rate as may from time to time
be published in the Wall Street Journal under "Money Rates"; provided that the
Interest Rate shall never exceed the maximum interest rate permitted by
applicable law.

         "Net Market Revenues" has the meaning set forth in Section 8.2.

         "Offer" or "Offering" means the nomination or offering to sell the
output of the Generating Stations.

         "Other Fuel Agreements" means (i) that certain Solid Synthetic Fuel
Sales Agreement between Oak Mountain Products, LLC and Project Company dated
April 15, 2002, and (ii) any other Fuel supply or transportation agreement
entered into by Project Company with a third party with the consent of MAEM.

         "Other Generators" means Mirant Chalk Point, LLC, Mirant Peaker, LLC
and Mirant Potomac River, LLC, so long as each such company is an Affiliate of
Project Company.

                                       3
<PAGE>

         "Party" means any of MAEM or Project Company. In the context where
MAEM is referenced as a "Party," a reference to the "other Party" shall mean
Project Company. In the context where Project Company is referenced as a
"Party," a reference to the "other Party" shall mean MAEM. References to
"either Party" or the "Parties" shall have comparable meanings.

         "PJM" means market of PJM Interconnection, LLC, or its successor.

         "Prior Agreements" means (i) that certain EEI Master Power Purchase
and Sale Agreement dated December 18, 2000 and all confirmations related
thereto between Project Company and MAEM, (ii) that certain Services and Risk
Management dated as of March 30, 2001 between Project Company and MAEM and
(iii) that certain Energy and Capacity Sales Agreement dated August 1, 2001
between Project Company and MAEM.

         "Products" means electric capacity, energy and/or ancillary services
or other related products which are or which may become commercially recognized
in PJM during the term of this Agreement.

         "Scheduling" or "Schedule" means the acts of MAEM and/or its
designated representatives of notifying, requesting and confirming to its
counterparties and their designated representatives (including, but not limited
to, PJM or any applicable power pool, Transmission Provider or Transportation
Provider) the quantity and type of Products and/or Fuel to be delivered on any
given day or days during the period of delivery at a specified Delivery Point
or the Generating Stations, as applicable.

         "Transition Power Agreements" means (I) that certain Transition Power
Agreement for the District of Columbia by and between MAEM and Potomac Electric
Power Company, dated December 19, 2000, (ii) that certain Transition Power
Agreement for Maryland by and between MAEM and Potomac Electric Power Company,
dated December 19, 2000, and (iii) agreements between MAEM and third parties to
serve load which has migrated from Potomac Electric Power Company and would
otherwise have been supplied under the foregoing Transition Power Agreements.

         "Transmission Providers" means the entity or entities transmitting
Products on behalf of Project Company or MAEM to or from the Delivery Point
(including, but not limited to, an independent system operator or regional
transmission organization).

         "Transportation Providers" means the entity or entities transporting
Fuel on behalf of Project Company or MAEM to or from the Generating Stations.

                                   ARTICLE 2.
                                  POWER SALES

         2.1      Purchase and Sale of Products. Project Company shall sell and
deliver and MAEM shall purchase, pay for and receive, or cause to be received,
at the Delivery Point, all Products

                                       4
<PAGE>

produced by the Generating Stations. The purchase price payable to Project
Company for any Product purchased or sold hereunder shall be the amount
actually received by MAEM from a third party for such Product. For purposes of
the foregoing sentence, MAEM shall be deemed to supply the Transition Power
Agreements from the PJM market and shall not be deemed to supply Transition
Power Agreements from Project Company's Generating Stations. In selling
Products produced by the Generating Stations, MAEM shall attempt to maximize
revenues for Project Company.

         2.2      Scheduling and Offering into PJM. MAEM shall be responsible
for the Scheduling of the output of the Generating Stations. MAEM may Offer the
output of the Generating Stations to any customer (including, but not limited
to, PJM or any applicable control area operator, power pool, independent system
operator or Transmission Provider), and shall be responsible for any such
Offering. Without limitation, all such Scheduling and Offering strategies shall
in each case at all times be consistent with:

         (a)      the operating parameters and limitations of the Generating
                  Stations, as provided by Project Company to MAEM;

         (b)      the limitations imposed by any transmission service
                  reservations for the purpose of transmitting Power from the
                  Generating Stations;

         (c)      Project Company's scheduled maintenance plans;

         (d)      the availability of the Generating Stations (including Fuel
                  handling and storage facilities), as communicated by Project
                  Company to MAEM;

         (e)      PJM rules and procedures in effect from time to time;

         (f)      other applicable requirements of any Transmission Provider
                  and/or Transportation Provider;

         (g)      Fuel availability;

         (h)      Good Utility Practices; and

         (i)      Operating protocols agreed to from time to time by the
                  Parties.

         2.3      Transmission and Scheduling. Project Company shall be
responsible for delivery of Products to the Delivery Point. MAEM shall arrange
and be responsible for transmission service at and from the Delivery Point and
shall Schedule or arrange for Scheduling services with its Transmission
Providers to receive all Products at the Delivery Point. MAEM shall manage
energy imbalances on behalf of Project Company and all costs and revenues
associated with energy imbalances will be attributed to the Asset Book and
charged to or paid to Project Company, as such costs and revenues are actually
incurred or received by MAEM.

                                       5
<PAGE>

         2.4      Title, Risk of Loss and Indemnity. As between the Parties,
Project Company shall be deemed to be in exclusive possession and control (and
be responsible for any damages or injury caused thereby) of the Products prior
to delivery thereof at the Delivery Point, and MAEM shall be deemed to be in
exclusive possession and control (and be responsible for any damages or injury
caused thereby) of the Products at and after delivery thereof at the Delivery
Point. Project Company warrants that it will deliver to MAEM all Products free
and clear of all liens, claims and encumbrances arising prior to delivery
thereof at the Delivery Point. Title to and risk of loss related to delivered
Products shall transfer from Project Company to MAEM at the Delivery Point.
Each Party shall indemnify, defend and hold harmless each other Party from any
Claims arising from any act or incident occurring during the period when
possession, control and title to Products is vested or deemed to be vested in
the indemnifying Party, except to the extent such Claims arise from such other
Party's breach of this Agreement or its gross negligence or willful misconduct.

         2.5      Regulatory Reports. MAEM will make all quarterly filings to
the Federal Energy Regulatory Commission required for Products produced by the
Generating Stations.

                                   ARTICLE 3.
                                 FUEL SERVICES

         3.1      All Requirements Fuel Supply and Delivery. MAEM shall procure
and supply to Project Company on an exclusive basis all Fuel required by the
Generating Stations in accordance with Good Utility Practices and the terms and
conditions of this Agreement; provided, however, Project Company may procure
Fuel or Fuel transportation or services from third parties to the extent
provided in Other Fuel Agreements.

         3.2      Reimbursement for Fuel. Project Company shall reimburse MAEM
for all Fuel delivered to the Generating Stations as follows:

         (a)      Fuel consisting of natural gas shall be reimbursed at the
market price of such gas, including transportation charges, on the delivery
date.

         (b)      Fuel consisting of fuel oil shall be reimbursed at MAEM's
cost plus transportation charges incurred by MAEM.

         (c)      Fuel consisting of coal shall be reimbursed at MAEM's cost
plus delivery charges and other fees and expenses incurred by MAEM in
connection with the delivery of such coal.

         3.3      Transportation and Scheduling. Except as otherwise provided
in the Other Fuel Agreements, MAEM shall arrange and be responsible for
transportation service to deliver Fuel to the Generating Stations and shall
Schedule or arrange for Scheduling services with its Transportation Providers
to deliver Fuel to the Generating Stations.

                                       6
<PAGE>

                                   ARTICLE 4.
                              ADDITIONAL SERVICES

         4.1      Emissions Planning and Related Responsibilities. Upon Project
Company's request, MAEM shall provide Project Company emissions planning, in
consultation with Project Company, to assist in the compliance of the
Generating Stations at all times and on an ongoing basis with all currently
effective emissions requirements, permits and regulations. Upon Project
Company's request, MAEM will procure Emission Allowances necessary for the
operation of the Generating Stations, and dispose of excess Emission
Allowances, which are not needed for the operation of the Generating Stations.
MAEM will charge MAEM's actual cost of acquiring the Emission Allowances and
remit the proceeds of any Emission Allowances sales to Project Company.

         4.2      Insurance. Upon Project Company's request, MAEM will procure
or assist Project Company in procuring business interruption insurance and
forced outage insurance covering the Generating Stations. The costs of such
insurance will be charged to Project Company.

                                   ARTICLE 5
                                   ASSET BOOK

         5.1      Asset Book. MAEM will establish and maintain an asset
management book for the Mid-Atlantic region (the "Asset Book") to track and
measure the financial performance of all hedges and other transactions entered
into with respect to the Generating Stations and the Other Generators'
generating stations, which Asset Book shall be separate from any MAEM trading
book or any other asset book maintained by MAEM for power resources managed by
MAEM.

         5.2      Power Market, Fuel Hedges and Other Transactions. MAEM has
entered or will enter into third party bilateral contracts, forward sales,
financial products (including but not limited to, hedges, swaps, contracts for
differences, options and weather derivatives) and other transactions in
connection with the Products produced by the Generating Stations and Fuel
required to operate the Generating Stations. The costs of such transactions
including, without limitation, purchased power costs, transmission costs, Fuel
transportation costs, third party broker costs, transaction fees and
incremental credit costs, and revenues related to such activities will be
charged to or paid to Project Company and included in the Asset Book. The costs
and revenues associated with the hedges and other transactions in the Asset
Book will be charged to or paid to Project Company, as is further described in
Section 8.2.

                                   ARTICLE 6.
                              TERM AND TERMINATION

         6.1      Term. The initial term of this Agreement shall commence on
the Effective Date and shall continue, unless earlier terminated pursuant to
its terms, until December 31, 2003. The Parties shall negotiate in good faith
to extend this Agreement.

                                       7
<PAGE>

         6.2      Early Termination Event.

         (a)      In the event a Generating Station is no longer owned or
leased by Project Company, this Agreement shall automatically terminate with
respect to such Generating Station, without penalty and without any further
action required by either Party, as of the effective date of the transfer of
ownership or termination of the lease of the Generating Station.

         (b)      In the event Project Company ceases to be an Affiliate of
MAEM, this Agreement shall automatically terminate, without penalty and without
any further action required by either Party, as of the effective date of the
transfer of ownership or control of Project Company or MAEM, as applicable.

         (c)      In the event lenders or lessors exercise remedies following a
Facility Lease Event of Default, Project Company may terminate this Agreement,
without penalty, upon written notice to MAEM.

         6.3      Termination Events. Upon any termination of this Agreement
(including but not limited to termination pursuant to Section 9.2(a)(ii)
hereof), the Parties shall transfer any outstanding hedges or otherwise settle
any transactions entered into by MAEM in connection with this Agreement which
extend beyond such termination, including but not limited to any agreement or
transactions entered into pursuant to Sections 5.1 and 5.2 hereof. Any such
transfer or settlement shall be consummated in such a manner as to assign or
convey to Project Company the full benefits and obligations of such agreements
or transactions, and to fully release MAEM from any liability or obligation
thereunder. To the extent that MAEM's rights or obligations under any such
agreement or transaction may not be assigned without the consent of a third
party, and such consent has not or cannot be obtained with the commercially
reasonable efforts of the Parties, this provision shall not constitute an
agreement to assign the same if an attempted assignment would constitute a
breach thereof or be unlawful, and the Parties, to the maximum extent permitted
by law and such agreement or transaction, shall enter into such commercially
reasonable arrangements as are necessary to fulfill the intent of this Section
6.3. The Parties further agree to take such actions, and execute and deliver
such agreements, documents, instruments and certificates, as are necessary to
consummate the transactions contemplated by this Section 6.3.

                                   ARTICLE 7.
                         REPRESENTATIONS AND WARRANTIES

         7.1      Project Company's Representations and Warranties. Project
Company makes the following representations and warranties as a basis for its
undertakings contained herein:

         (a)      Project Company is a limited liability company duly organized
and validly existing under the laws of the State of Delaware, is qualified to
do business in each foreign jurisdiction in which it transacts business, and is
in good standing under its certificate of

                                       8
<PAGE>

formation and the laws of the State of Delaware, has the requisite power and
authority to own its properties, and to carry on its business as now being
conducted.

         (b)      Project Company has full power and authority to enter this
Agreement and perform its obligations hereunder. The execution, delivery and
performance of this Agreement and the consummation of the transactions
contemplated hereby have been duly authorized by all necessary limited
liability company action and do not and will not contravene its organizational
documents or conflict with, result in a breach of, or entitle any party (with
due notice or lapse of time or both) to terminate, accelerate or declare a
default under, any agreement or instrument to which Project Company is a party
or by which Project Company is bound. The execution, delivery and performance
by Project Company of this Agreement will not result in any violation by
Project Company of any law, rule or regulation applicable to it. Project
Company is not a party to, nor subject to or bound by, any judgment, injunction
or decree of any court or other governmental entity which may restrict or
interfere with the performance of this Agreement by it. This Agreement is
Project Company's legal, valid and binding obligation, enforceable against
Project Company in accordance with its terms, except as (i) such enforcement
may be subject to bankruptcy, insolvency, reorganization, moratorium or other
similar laws now or hereafter in effect relating to creditors' rights
generally, and (ii) the remedy of specific performance and injunctive relief
may be subject to equitable defenses and to the discretion of the court before
which any proceeding therefor may be brought.

         (c)      No consent, waiver, order, approval, authorization, permit or
order of, or registration, qualification or filing with, any court or other
governmental agency or authority is required for the execution, delivery and
performance by Project Company of this Agreement and the consummation by
Project Company of the transactions contemplated hereby.

         (d)      Project Company has obtained all necessary governmental
authorizations, approvals, consents, waivers, exceptions, licenses, filings,
registrations, rulings, permits, tariffs, certifications and exemptions to
perform its obligations under this Agreement.

         (e)      There are no Bankruptcy Proceedings pending for Project
Company or, to its knowledge, threatened against it, and there is not pending
or, to its knowledge, threatened against it, any legal proceedings that could
materially adversely affect its ability to perform its obligations under this
Agreement.

         (f)      No Event of Default or event which, with the giving of notice
or lapse of time, or both, would constitute an Event of Default with respect to
Project Company has occurred and is continuing and no such event or
circumstance would occur as a result of its entering into or performing its
obligations under this Agreement or any other document relating to this
Agreement.

         7.2      MAEM's Representations and Warranties. MAEM makes the
following representations and warranties as a basis for its undertakings
contained herein:

         (a)      MAEM is a limited partnership duly organized and validly
existing under the laws of the State of Delaware, is in good standing under its
certificate of limited partnership and

                                       9
<PAGE>

the laws of the State of Delaware, is qualified to do business in each foreign
jurisdiction in which it transacts business, has the requisite power and
authority to own its properties, and to carry on its business as now being
conducted.

         (b)      MAEM has full power and authority to enter this Agreement and
perform its obligations hereunder. The execution, delivery and performance of
this Agreement and the consummation of the Transactions contemplated hereby
have been duly authorized by all necessary limited partnership action by MAEM
and do not and will not contravene its organizational documents or conflict
with, result in a breach of, or entitle any party (with due notice or lapse of
time or both) to terminate, accelerate or declare a default under, any
agreement or instrument to which MAEM is a party or by which MAEM is bound. The
execution, delivery and performance by MAEM of this Agreement will not result
in any violation by MAEM of any law, rule or regulation applicable to it. MAEM
is not a party to, nor subject to or bound by, any judgment, injunction or
decree of any court or other governmental entity which may restrict or
interfere with the performance of this Agreement by it. This Agreement is
MAEM's legal, valid and binding obligation, enforceable against MAEM in
accordance with its terms, except as (i) such enforcement may be subject to
bankruptcy, insolvency, reorganization, moratorium or other similar laws now or
hereafter in effect relating to creditors' rights generally and (ii) the remedy
of specific performance and injunctive relief may be subject to equitable
defenses and to the discretion of the court before which any proceeding
therefor may be brought.

         (c)      No consent, waiver, order, approval, authorization, permit or
order of, or registration, qualification or filing with, any court or other
governmental agency or authority is required for the execution, delivery and
performance by MAEM of this Agreement and the consummation by MAEM of the
transactions contemplated hereby.

         (d)      MAEM has obtained all necessary governmental authorizations,
approvals, consents, waivers, exceptions, licenses, filings, registrations,
rulings, permits, tariffs, certifications and exemptions to perform its
obligations under this Agreement.

         (e)      There are no Bankruptcy Proceedings pending for MAEM or, to
its knowledge, threatened against it, and there is not pending or, to its
knowledge, threatened against it, any legal proceedings that could materially
adversely affect its ability to perform its obligations under this Agreement.

         (f)      No Event of Default or event which, with the giving of notice
or lapse of time, or both, would constitute an Event of Default with respect to
MAEM has occurred and is continuing and no such event or circumstance would
occur as a result of its entering into or performing its obligations under this
Agreement.

                                   ARTICLE 8.
                              BILLING AND PAYMENT

         8.1      Service Fee. For services rendered by MAEM to Project Company
hereunder, Project Company shall pay MAEM a service fee equal to $341,636 per
month, commencing on

                                      10
<PAGE>

the Effective Date. The service fee shall compensate MAEM for administrative
costs in fulfilling its responsibilities to Project Company under this
Agreement, including, but not limited to, personnel costs.

         8.2      Netting. Each month, MAEM shall pay Project Company the
positive Net Market Revenues due for the prior month (or, if Net Market
Revenues for such month are negative, Project Company shall pay MAEM an amount
equal to such negative balance) by wire transfer to the payment address
provided by the recipient on or before the twentieth (20th) day of each month,
or if such day is not a business day, the immediately following business day.
At the time of each monthly payment, MAEM shall render to Project Company a
statement detailing the Net Market Revenues for the prior month, and shall
provide Project Company with supporting documentation for each such monthly
statement, identifying calculations underlying such Net Market Revenues.

                  "Net Market Revenues" means Gross Revenues minus Expenses.
         Net Market Revenues shall be calculated in accordance with GAAP.

         "Gross Revenues" means all revenues for a given period attributed to
         the Asset Book, including, without limitation, revenues from (a) sales
         of all Products from the Generating Stations, (b) other sales of
         Products, (c) Fuel sales, (d) sales or trades of excess Emissions
         Allowances from the Generating Stations, (e) financial products
         (including, but not limited to, swaps, contracts for differences,
         options and weather derivatives) purchased for the Asset Book, and (f)
         forced outage insurance and business interruption insurance proceeds
         (to the extent received by MAEM).

                  "Expenses" means all costs attributed to the Asset Book for
         such period, including (a) costs reimbursable to MAEM pursuant to this
         Agreement for performing the services including, but not limited to,
         costs for (i) Fuel, (ii) Emissions Allowances, (iii) financial
         products (including, but not limited to, swaps, contracts for
         differences, options, and weather derivatives) purchased for the Asset
         Book, (iv) broker and/or transaction fees, (v) transmission congestion
         contracts for sales from the Generating Stations, (vi) forced outage
         insurance costs (to the extent paid by MAEM), (vii) incremental credit
         costs for transactions in the Asset Book, and (viii) other costs in
         connection with the services described in Articles 2, 3 and 4 hereof,
         and (b) the service fee payable to MAEM in accordance with Section 8.1
         hereof.

         8.3      Reports. Project Company and MAEM will cooperate to provide
monthly reports in reasonable detail showing the calculation of the Net Market
Revenues, to enable Project Company to track Net Market Revenues. Project
Company shall have the right, upon reasonable notice, to examine and/or audit
the Asset Book from time to time.

         8.4      Interest and Disputed Amounts. If either Party fails to make
any payment on or before the applicable payment due date, such overdue amounts
shall accrue interest at the Interest Rate from, and including, the applicable
payment due date to, but excluding, the date of payment. Any disputed invoiced
amounts, except amounts which are manifestly inaccurate,

                                      11
<PAGE>

shall be paid in full on the applicable payment due date, subject to later
return together with interest accrued at the Interest Rate. Overpayments or
underpayments identified by the Parties shall be returned or credited, together
with interest accrued at the Interest Rate, to their rightful owners in the
first following month.

                                   ARTICLE 9.
                             DEFAULTS AND REMEDIES

         9.1      Events of Default Any one or more of the following shall
constitute an "Event of Default" hereunder with respect to a Party:

         (a)      default shall occur in the payment of any amounts due from
such Party hereunder which shall continue for more than ten (10) days after
written notice from the other Party;

         (b)      other than as provided in Section 9.1(a) above, default shall
occur in the performance of any covenant or condition to be performed by such
Party under this Agreement and such default shall continue unremedied for a
period of thirty (30) days after written notice from the other Party specifying
the nature of such default;

         (c)      a Bankruptcy Proceeding has occurred with respect to such
Party; or

         (d)      a representation or warranty made by such Party herein shall
have been false or misleading in any material respect when made; provided,
however, if such representation or warranty is capable of being corrected, no
Event of Default shall have occurred if such Party is diligently pursuing such
correction and such representation or warranty is corrected within thirty (30)
days of such Party obtaining knowledge of the false and misleading nature of
the statement.

         9.2      Remedies. The Parties shall have the following remedies
available to them hereunder:

         (a)      Upon the occurrence of an Event of Default by either Party
hereunder, the non-defaulting Party shall have the right (i) to collect all
amounts then or thereafter due to it from the defaulting Party hereunder, and
(ii) upon written notice to the other Party, to terminate this Agreement at any
time during the continuation of such Event of Default. The terminating Party
shall have all rights and remedies available to it under applicable law,
subject to the limitations set forth in Section 11.7.

         (b)      Without limiting the foregoing, any unexcused breach of this
Agreement or failure of either Party to perform its obligations hereunder shall
subject such Party to the payment of actual damages to the other Party,
regardless of any cure period.

                                      12
<PAGE>

                                  ARTICLE 10.
                                 FORCE MAJEURE

         10.1     Force Majeure. If either Party is rendered wholly or partly
unable to perform its obligations under this Agreement because of a Force
Majeure event, that Party will be excused from whatever performance is affected
by the Force Majeure event to the extent so affected, provided that (a) the
non-performing Party, as soon as practical after knowing of the occurrence of
the Force Majeure event, gives the other Party written notice describing the
particulars of the occurrence; (b) the suspension of performance is of no
greater scope and of no longer duration than is reasonably required by the
Force Majeure event; (c) the non-performing Party uses commercially reasonable
efforts to overcome or mitigate the effects of such occurrence, provided,
however, that this provision shall not require Project Company to deliver, or
MAEM to receive, any Products at points other than the Delivery Point; and (d)
when the non-performing Party is able to resume performance of its obligations
hereunder, that Party shall give the other Party written notice to that effect
and shall promptly resume such performance.

                                  ARTICLE 11.
                            MISCELLANEOUS PROVISIONS

         11.1     Assignment; Successors and Assigns. No assignment or
delegation by either Party (or any successor or assignee thereof) of this
Agreement, in whole or in part, shall be made or become effective without the
prior written consent of the other Party in each case obtained, which consent
may not be unreasonably withheld. Any assignments or delegations by either
Party shall be in such form as to assure that such Party's obligations under
this Agreement will be honored fully and timely by any succeeding party.

         11.2     Notices. All notices, requests and other communications
hereunder (herein collectively a "notice" or "notices") shall be deemed to have
been duly delivered, given or made to or upon any Party hereto if in writing
and delivered by hand against receipt, or by certified or registered mail,
postage pre-paid, return receipt requested, or to a courier who guarantees next
business day delivery or sent by telecopy (with confirmation) to such Party at
its address set forth below or to such other address as such Party may at any
time, or from time to time, direct by notice given in accordance with this
Section 11.2.

         IF TO PROJECT
         COMPANY:                   Mirant Mid-Atlantic, LLC
                                    1155 Perimeter Center West
                                    Atlanta, Georgia 30338
                                    Attention: President

         IF TO MAEM:                Mirant Americas Energy Marketing, LP
                                    1155 Perimeter Center West, Suite 130
                                    Atlanta, Georgia 30338
                                    Attention: Legal Department, Power

                                      13
<PAGE>

         The date of delivery of any such notice, request or other
communication shall be the earlier of (i) the date of actual receipt or (ii)
three (3) business days after such notice, request or other communication is
sent by certified or registered mail, (iii) if sent by courier who guarantees
next business day delivery, the business day next following the day of such
notice, request or other communication is actually delivered to the courier or
(iv) the day actually telecopied.

         11.3     GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED UNDER THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO
PRINCIPLES OF CONFLICTS OF LAW THAT WOULD OTHERWISE CAUSE THE LAW OF ANY STATE
OTHER THAN NEW YORK TO APPLY.

         11.4     Compliance With Laws. At all times during the term of this
Agreement, the Parties shall comply with all laws, rules, regulations, and
codes of all governmental authorities having jurisdiction over each of their
respective businesses which are now applicable, or may be applicable hereafter,
including without limitation, all special laws, policies, ordinances, or
regulations now in force, as amended or hereafter enacted. The Parties hereto
shall maintain all licenses, permits and other consents from all governmental
authorities having jurisdiction for the necessary use and operation of their
respective business. Nothing herein shall be deemed a waiver of the Parties'
right to challenge the validity of any such law, rule or regulation.

         11.5     Entire Agreement. This Agreement sets forth the entire
agreement of the Parties with respect to the subject matter herein and takes
precedence over all prior understandings. Without limiting the generality of
the foregoing, all Prior Agreements are hereby terminated as of the Effective
Date.

         11.6     Amendments. This Agreement may not be amended except by a
writing signed by the Parties.

         11.7     Severability. The invalidity or unenforceability of any
provisions of this Agreement shall not affect the other provisions hereof. If
any provision of this Agreement is held to be invalid, such provisions shall
not be severed from this Agreement; instead, the scope of the rights and duties
created thereby shall be reduced by the smallest extent necessary to conform
such provision to the applicable law, preserving to the greatest extent the
intent of the Parties to create such rights and duties as set out herein. If
necessary to preserve the intent of the Parties hereto, the Parties shall
negotiate in good faith to amend this Agreement, adopting a substitute
provision for the one deemed invalid or unenforceable that is legally binding
and enforceable and which restores to the two Parties to the greatest extent
possible the benefit of their respective bargains on the Effective Date.

         11.8     Limitation on Damages. NEITHER PARTY SHALL BE ENTITLED TO
RECOVER SPECIAL, INDIRECT, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES
HEREUNDER.

                                      14
<PAGE>

         IN WITNESS WHEREOF, and intending to be legally bound hereby, the
Parties hereto have caused this Agreement to be duly executed as an instrument
under seal by their respective duly authorized officers as of the date and year
first above written.

<TABLE>
         <S>                                            <C>
         MIRANT AMERICAS ENERGY                         MIRANT MID-ATLANTIC, LLC
         MARKETING, LP

         By MIRANT AMERICAS
         DEVELOPMENT, INC.,
         its General Partner

         By:                                            By:
            --------------------------------               ------------------------------
         Name:  Tim Delay                               Name:  Lisa D. Johnson
         Title: Vice President and Chief Commercial     Title: President
         Officer, East Region
</TABLE>

                                      15
<PAGE>

EXHIBIT A

                         MORGANTOWN GENERATING STATION

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------
                                                              Nameplate        Commercial
         Unit                          Location               Capacity       Operation Date
----------------------------------------------------------------------------------------------------
         <S>                       <C>                        <C>            <C>
         F1                        Charles County, MD            624              1970
----------------------------------------------------------------------------------------------------

         F2                        Charles County, MD            620              1970
----------------------------------------------------------------------------------------------------

         FCT1                      Charles County, MD            16               1971
----------------------------------------------------------------------------------------------------

         FCT2                      Charles County, MD            16               1970
----------------------------------------------------------------------------------------------------

         FCT3                      Charles County, MD            54               1971
----------------------------------------------------------------------------------------------------

         FCT4                      Charles County, MD            54               1973
----------------------------------------------------------------------------------------------------

         FCT5                      Charles County, MD            54               1973
----------------------------------------------------------------------------------------------------

         FCT6                      Charles County, MD            54               1973
----------------------------------------------------------------------------------------------------
</TABLE>

                          DICKERSON GENERATING STATION

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------
                                                                Nameplate        Commercial
        Unit                              Location               Capacity       Operation Date
----------------------------------------------------------------------------------------------------
        <S>                        <C>                          <C>             <C>
         D1                        Montgomery County, MD            182           1959
----------------------------------------------------------------------------------------------------

         D2                        Montgomery County, MD            182           1960
----------------------------------------------------------------------------------------------------

         D3                        Montgomery County, MD            182           1962
----------------------------------------------------------------------------------------------------
</TABLE>

                                      16
<PAGE>

<TABLE>
         <S>                       <C>                              <C>              <C>
         DCT1                      Montgomery County, MD             13              1967
----------------------------------------------------------------------------------------------------

         HCT1                      Montgomery County, MD            147              1992
----------------------------------------------------------------------------------------------------

         HCT2                      Montgomery County, MD            147              1993
----------------------------------------------------------------------------------------------------
</TABLE>

                                      17

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