EX-10.31





Ex. 10.31



Execution Copy




EMPLOYMENT AGREEMENT




     AGREEMENT, made and entered into as of August 11, 2008 (the “Effective Date”) by and between
THE WARNACO GROUP, INC., a Delaware corporation (together with its successors and assigns, the
“Company”), and JAY DUBINER (the “Executive”).



W I T N E S S E T H:




     WHEREAS, the Company desires to employ the Executive and to enter into an agreement embodying
the terms of such employment and the Executive desires to enter into this Agreement and to accept
such employment, subject to the terms and provisions of this Agreement;



     NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein and for
other good and valuable consideration, the receipt of which is mutually acknowledged, the Company
and the Executive (individually a “Party” and together the “Parties”) agree as follows:



     1. Certain Definitions.



          (a) “Affiliate” of a specified person or entity shall mean a person or entity that directly or
indirectly controls, is controlled by, or is under common control with, the person or entity
specified.



          (b) “Board” shall mean the Board of Directors of the Company.



          (c) “Cause” shall mean:




(i) willful misconduct by the Executive which causes material harm to the
interests of the Company or any of its Affiliates;




(ii) willful and material breach of duty by the Executive in the course of
the Executive’s employment, which, if curable, is not cured within 10 days
after Executive’s receipt of written notice from the Company specifically
describing such willful and material breach;




(iii) willful failure by the Executive, after having been given written
notice from the Company, to perform the Executive’s duties other than a
failure resulting from the Executive’s incapacity due to physical or mental
illness;




(iv) indictment of the Executive for a felony, a crime involving moral
turpitude or any other crime involving the business of the Company or any of
its Affiliates which, in the case of such crime involving the business of
the Company or any of its Affiliates, is injurious to such business; or



 









 






(v) failure of the Executive to give 90 days prior written notice of a
voluntary resignation (other than for Good Reason or Disability), unless
such failure is waived in writing by an authorized officer of the Company or
the Company shortens the notice period in accordance with Section 5(c)
hereof.



     For purposes of this Cause definition, no act or failure to act, on the part of the Executive,
shall be considered willful unless it is done, or omitted to be done, by him in bad faith and
without reasonable belief that his action was in the best interests of the Company. The
determination to terminate the Executive’s employment for Cause shall be made by the full Board by
no less than majority vote and prior to such determination the Executive and his legal
representatives shall have the right to appear before the Board or a committee designated by the
Board.



          (d) “Change in Control” shall mean any of the following:




(i) any “person” (as such term is used in Sections 3(a)(9) and 13(d) of the
Securities Exchange Act of 1934, as amended) or group of persons acting
jointly or in concert, but excluding a person who owns more than 5% of the
outstanding shares of the Company as of the Effective Date, becomes a
“beneficial owner” (as such term is used in Rule 13d-3 promulgated under
that Act), of 50% or more of the Voting Stock of the Company;




(ii) all or substantially all of the assets of the Company are disposed of
pursuant to a merger, consolidation or other transaction (unless the
shareholders of the Company immediately prior to such merger, consolidation
or other transaction beneficially own, directly or indirectly, in
substantially the same proportion as they owned the Voting Stock of the
Company, all of the Voting Stock or other ownership interests of the entity
or entities, if any, that succeed to the business of the Company); or




(iii) approval by the shareholders of the Company of a complete liquidation
or dissolution of all or substantially all of the assets of the Company.



     For purposes of this Change in Control definition, “Voting Stock” shall mean the capital stock
of any class or classes having general voting power, in the absence of specified contingencies, to
elect the directors of the Company.



          (e) “Date of Termination” shall mean:




(i) if the Executive’s employment is terminated by the Company, the date
specified in the notice by the Company to the Executive that the Executive’s
employment is so terminated; provided that for a termination for Cause such notice is delivered after the Board determination as set
forth in Section 1(c) hereof;



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(ii) if the Executive voluntarily resigns the Executive’s employment, 90
days after receipt by the Company of written notice that the Executive is
terminating the Executive’s employment or if the Company shortens the
required notice period in accordance with Section 5(c), the date of
termination specified in such notice;




(iii) if the Executive’s employment is terminated by reason of death, the
date of death;




(iv) if the Executive’s employment is terminated for Disability, 30 days
after written notice is given as specified in Section 1(f) below; or




(v) if the Executive resigns the Executive’s employment for Good Reason, 30
days after receipt by the Company of timely written notice from the
Executive in accordance with Section 1(g) below unless the Company cures the
event or events giving rise to Good Reason within 30 days after receipt of
such written notice.



          (f) “Disability” shall mean the Executive’s inability, due to physical or mental incapacity,
to substantially perform the Executive’s duties and responsibilities for a period of 120
consecutive days as determined by a medical doctor selected by the Company and reasonably
acceptable to the Executive. In no event shall any termination of the Executive’s employment for
Disability occur until the Party terminating the Executive’s employment gives written notice to the
other Party in accordance with Section 14 below.



          (g) “Good Reason” shall mean the occurrence of any of the following without the Executive’s
prior written consent:




(i) a material diminution by the Company in the Executive’s authority,
duties or responsibilities as Senior Vice President, General Counsel and
Corporate Secretary or the assignment to the Executive by the Company of any
duties materially inconsistent with such positions;




(ii) reduction in (A) Base Salary or (B) Target Bonus opportunity as a
percentage of Base Salary;




(iii) a change in reporting structure so that the Executive reports to
someone other than the Chief Executive Officer of the Company;




(iv) the removal by the Company of the Executive as Senior Vice President,
General Counsel or as Corporate Secretary of the Company or the failure by
the Board to elect or reelect the Executive as an executive officer of the
Company;




(v) requiring the Executive to be principally based at any office or
location more than 50 miles from his current place of employment; or



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(vi) the failure of a successor to all or substantially all of the assets of
the Company to assume the Company’s obligations under this Agreement either
in writing or as a matter of law within 15 days after a merger,
consolidation, sale or similar transaction.



     Anything herein to the contrary notwithstanding, the Executive shall not be entitled to resign
for Good Reason (i) if the occurrence of the event otherwise constituting Good Reason is the result
of Disability, a termination by the Company for which proper notification has been given or a
voluntary resignation by the Executive other than for Good Reason and (ii) unless the Executive
gives the Company written notice of the event constituting “Good Reason” within 90 days of the
occurrence of such event and the Company fails to cure such event within 30 days after receipt of
such notice.



          (h) “Separation From Service” shall mean a termination of the Executive’s employment in a
manner consistent with Treasury Regulation Section 1.409A-1(h).



     2. Position; Term.



     During the Term, the Executive shall be employed by the Company as Senior Vice President,
General Counsel and Corporate Secretary, reporting directly to the Company’s Chief Executive
Officer, and shall perform such duties and responsibilities as determined by the Company’s Chief
Executive Officer consistent with such positions. The Executive shall devote the Executive’s full
business time and attention to the satisfactory performance of such duties. Anything herein to the
contrary notwithstanding, nothing shall preclude the Executive from (i) subject to reasonable
approval of the Board, serving on the boards of directors of trade associations and/or charitable
organizations or other business corporations (provided such service is not prohibited under Section
7(a)(i) below), (ii) engaging in charitable activities and community affairs and (iii) managing his
personal investments and affairs, provided that the activities described in the preceding clauses
(i) through (iii) do not materially interfere with the proper performance of his duties and
responsibilities hereunder. The Executive agrees to commence employment with the Company no later
than September 2, 2008 (the “Commencement Date”). The term of the Executive’s employment
hereunder shall begin on the Commencement Date and end at the close of business on the second
anniversary of such date; provided, however, that the Term shall thereafter be
automatically extended for additional one-year periods, unless either the Company or the Executive
gives the other written notice at least 120 days prior to the then-scheduled expiration of the Term
that such Party is electing not to so extend the Term (the initial term plus any extension thereof
in accordance herewith being referred to herein as the “Term”). Notwithstanding the foregoing, the
Term shall end on the date on which the Executive’s employment is terminated by either Party in
accordance with the provisions herein.



     3. Compensation.



          (a) Base Salary. During the Term, the Executive shall be paid an annualized Base
Salary of $450,000 (“Base Salary”), payable in accordance with the regular payroll practices of the
Company, subject to annual review by the Board (or the Compensation Committee of the Board) in its
sole discretion. During the Term, the Base Salary may not be



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decreased without the Executive’s
prior written consent. After any increase in base salary approved by the Board (or the
Compensation Committee of the Board), the term “Base Salary” as used in this Agreement shall
thereafter refer to the increased amount. The Executive shall not be entitled to any compensation
for service as an officer or member of the board of directors of any Affiliate of the Company.



          (b) Annual Incentive Awards. During the Term, the Executive shall be eligible to
receive an annual incentive award (provided the Executive was employed continuously during the
applicable fiscal year) pursuant to the Company’s Incentive Compensation Plan, as amended (or such
other annual incentive plan as may be approved by its shareholders), in effect for the applicable
fiscal year (“Bonus Plan”). The Executive’s annual incentive award for fiscal year 2008 and
thereafter shall have a target of 70% of Base Salary (“Target Bonus”), with a potential maximum
award as set forth in the Bonus Plan; provided that the actual bonus for fiscal year 2008 shall be
pro-rated from the Commencement Date, but in all events, subject to the Executive’s continued
employment with the Company through the payment date, shall be no less than an amount equal to
$315,000 multiplied by a fraction, the numerator of which shall be the number of days the Executive
worked for the Company in fiscal year 2008 and the denominator is 365. Except for the guaranteed
bonus for fiscal year 2008, any Bonus shall in all events be based on the Executive’s achievement
of annual performance and other targets approved by the committee administering the Bonus Plan.
The amount and payment of any annual incentive award shall be determined in accordance with the
Bonus Plan and shall be payable to the Executive when bonuses for the applicable performance period
are paid to other senior executives of the Company, but in all events no later than the
70th day following the end of the fiscal year for which the annual incentive award has
been earned. After any increase in the Executive’s target annual bonus opportunity as a percentage
of Base Salary as approved by the Board (or the Compensation Committee of the Board), the term
“Target Bonus” as used in this Agreement shall thereafter refer to the increased target
opportunity.



          (c) Long-Term Incentive Awards. On the Commencement Date, the Executive will be
granted the following equity awards: (i) an award of restricted stock (“Restricted Stock”), the
number of shares of which shall be equal to 218,025 divided by the closing price of a share of the
Company’s common stock on the Commencement Date and rounded up to the nearest 100 shares, and (ii)
an option to purchase shares of the Company’s common stock (the “Option”) in accordance with the
applicable equity plan, the number of shares of which shall be equal to 218,025 divided by 0.4038
and then divided by the closing price of a share of the Company’s common stock on the Commencement
Date and rounded up to the nearest 100 shares. Except as otherwise provided in this Section 3(c)
or Section 5 hereof, the Restricted Stock will cliff vest on the third anniversary of the
Commencement Date and the Option shall vest (and become exercisable) in three equal annual
installments on the first, second and third anniversaries of the Commencement Date, provided in
both cases that the Executive is
employed by the Company through such applicable vesting date and has not given notice to the
Company that the Executive is voluntarily resigning without Good Reason prior to such applicable
vesting date. Thereafter, commencing in fiscal year 2009 and provided the Term is in effect and
the Executive continues to be employed by the Company, the Executive shall be eligible to
participate in the Company’s equity incentive plans, including, without limitation, the 2003 and
2005 Stock Incentive Plans, as amended from time to time, and such other long-term



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incentive
plan(s) as may be approved by its shareholders from time to time (“Stock Incentive Plans”). Except
as otherwise provided herein, all equity grants shall be governed by the applicable equity plan
and/or award agreement. The Executive shall be subject to the equity ownership, retention and
other requirements applicable to senior executives of the Company.



          (d) Supplemental Award. During the Term beginning with fiscal year 2008, provided the
Executive is employed by the Company on the applicable grant date, the Executive shall be entitled
to an annual award with an aggregate grant date value equal to 6% of the sum of Base Salary plus
Annual Bonus as defined in this paragraph 3(d) if the Executive will be less than age 40 by the end
of the applicable fiscal year, 8% of such amount if the Executive will be age 40 and over and less
than 50 by the end of the applicable fiscal year, 10% of such amount if the Executive will be age
50 and over and less than age 60 at the end of the applicable fiscal year and 13% of such amount if
the Executive will be age 60 or older by the end of the applicable fiscal year (“Supplemental
Award”), with the first such award pro-rated to reflect the number of full months of service by the
Executive in fiscal year 2008. For this purpose, Base Salary shall be the Base Salary paid to the
Executive for the fiscal year prior to the award year and Annual Bonus shall be the annual bonus
awarded to the Executive by the Board for such fiscal year. The Supplemental Award shall not be
awarded to the Executive until after the determination by the Board of the Executive’s annual bonus
for the prior fiscal year and 50% of the value of the Supplemental Award shall be awarded in the
form of restricted shares pursuant to the applicable Stock Incentive Plan (“Career Shares”) and 50%
shall be awarded in the form of a credit to a bookkeeping account maintained by the Company for the
Executive’s account (the “Notional Account”). Any Career Shares awarded hereunder shall be
governed by the applicable Stock Incentive Plan and, if applicable, any award agreement. For
purposes of this Section 3(d), each Career Share shall be valued at the closing price of a share of
the Company’s common stock (“Share”) on the date that the Supplemental Award is made. For the
Notional Account, the Company shall select the investment alternatives available to the Executive
under the Company’s 401(k) plan. The balance in the Notional Account shall periodically be
credited (or debited) with the deemed positive (or negative) return based on returns of the
permissible investment alternative or alternatives under the Company’s 401(k) plan as selected in
advance by the Executive (and in accordance with the applicable rules of such plan or investment
alternative) to apply to such Notional Account, with such deemed returns calculated in the same
manner and at the same times as the return on such investment alternative(s). The Company’s
obligation to pay the amount credited to the Notional Account, including any return thereon
provided for in this Section 3(d), shall be an unfunded obligation to be satisfied from the general
funds of the Company. Except as otherwise provided in Section 5 below or the applicable Stock
Incentive Plan and provided that the Executive is employed by the Company on such vesting date, any
Supplemental Award granted in the form of Career Shares will vest as follows: 50% of the Career
Shares will vest on the earlier of the Executive’s 62nd birthday or upon the Executive’s
obtaining 15 years of “Vesting Service” and 100% of the Career Shares will vest on the
earliest of (i) the Executive’s 65th birthday, (ii) upon the Executive obtaining 20 years of
“Vesting Service” or (iii) 10th anniversary of the date of grant. Except as otherwise provided in
Section 5 below, and provided that the Executive is employed by the Company on such vesting date,
any Supplemental Award granted as a credit to the Notional Account (as adjusted for any returns
thereon) (“Adjusted Notional Account”)) shall vest as follows: 50% on the earlier of the
Executive’s 62nd birthday or upon the Executive obtaining 5 years of “Vesting Service” and



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100% on
the earlier of the Executive’s 65th birthday and upon the Executive obtaining 10 years of “Vesting
Service”. In addition, any unvested Adjusted Notional Account shall vest upon a Change in Control
as defined in Section 1(d)(i) or (ii) hereof. For purposes of this Section 3(d), “Vesting Service”
shall mean the period of time that the Executive is employed by the Company as an executive
officer. Subject to Section 15(b) hereof, upon vesting the Career Shares will be delivered to the
Executive in the form of Shares. The vested balance in the Adjusted Notional Account, if any,
shall not be distributed to the Executive until there has been a Separation From Service or, if
earlier, there has been a Change in Control as defined in Section 1(d)(i) or (ii) hereof and, at
such time, shall only be distributed at the earliest time that satisfies the requirements of this
Section 3(d). Upon a Change in Control as defined in Section 1(d)(i) or (ii), the vested Adjusted
Notional Account, subject to Section 15(b) hereof, shall be paid to the Executive in a lump-sum
cash payment. In addition, if the Executive’s employment is terminated for any reason, after
taking into account Section 5 hereof, any unvested Supplemental Awards (whether in the form of
Career Shares or the Adjusted Notional Account) shall be forfeited and any vested balance in the
Adjusted Notional Account, subject to Section 15(b) hereof, shall be paid to the Executive in a
cash lump-sum payment immediately following the Executive’s Separation From Service; provided,
however, that if the Executive is a “specified employee” as determined pursuant to Section 409A of
the Internal Revenue Code of 1986, as amended from time to time (the “Code”), and the regulations
promulgated thereunder (“Section 409A”) as of the date of the Executive’s Separation From Service,
such distribution shall not be made until the first business day of the seventh calendar month
following the month in which the Executive’s Separation From Service occurs. The Executive can
elect to delay the time and/or form of payment of the Adjusted Notional Account under this Section
3(d), provided such election is delivered to the Company in writing at least 12 months before the
scheduled payment date for such payment and the new payment date for such payment is not earlier
than (i) the Executive’s death, (ii) the Executive’s “disability” which satisfies the requirements
of Section 409A(a)(2)(C) of the Code and its implementing regulations, or (iii) five (5) years from
the originally scheduled payment date. Upon the expiration or termination of the Term, the vesting
and payment dates in this Section 3(d) (without regard to Section 5, except as otherwise expressly
provided in Section 5(d) of this Agreement) and the election right in this Section 3(d) shall
continue to apply to any outstanding Supplemental Award.



          (e) Review of Arrangements. If during the Term the employment agreements or
compensation arrangements of the Company’s executive officers are reviewed generally for material
improvements, this Agreement and the Executive’s compensation arrangements, as applicable, will be
subject to the same review.



     4. Employee Benefits.



          (a) Employee Benefit Programs. During the Term, subject to the Company’s right to
amend, modify or terminate any benefit plan or program, the Executive shall be entitled to
participate in all employee savings and welfare benefit plans and programs generally made available
to the Company’s senior-level executives as such plans or programs may be in effect from time to
time. During the Term, the Executive shall also be entitled to a paid annual physical medical exam
as approved by the Company and Company-paid term life insurance with a benefit equal to $1 million,
provided the Company can obtain such insurance at commercially



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reasonable premium levels. During
the Term, the Executive shall be entitled to four weeks paid vacation per calendar year.



          (b) Business Expenses. During the Term, the Company shall reimburse the Executive for
all reasonable business expenses incurred by him in performance of his duties hereunder in
accordance with Company policy, including, but not limited to, the proper documentation of such
expenses. The Company’s business travel policy shall apply to the Executive.



          (c) Perquisites. During the Term, the Executive shall be entitled to perquisites
provided to other senior-level executives, including a monthly car allowance of up to a maximum of
$1,000.



          (d) General Limitation. Notwithstanding anything elsewhere to the contrary, except to
the extent any reimbursement, payment or entitlement pursuant to this Section 4 does not constitute
a “deferral of compensation” within the meaning of Section 409A, (i) the amount of expenses
eligible for reimbursement or the provision of any in-kind benefit (as defined in Section 409A) to
the Executive during any calendar year will not affect the amount of expenses eligible for
reimbursement or provided as in-kind benefits to the Executive in any other calendar year, (ii) the
payments or reimbursements for expenses for which the Executive is entitled shall be made on or
before the last day of the calendar year following the calendar year in which the applicable
expense is incurred and (iii) the right to payment or reimbursement or in-kind benefits may not be
liquidated or exchanged for any other benefit.



     5. Termination of Employment. The Term of this Agreement and the Executive’s
employment hereunder shall terminate as of the Date of Termination in the following circumstances:



          (a) Termination Without Cause by the Company or Resignation for Good Reason by the
Executive. In the event that during the Term the Executive’s employment is terminated without
Cause by the Company (other than due to Disability) or the Executive resigns for Good Reason and
Section 5(d) below does not apply, subject to Section 15(b) hereof, the Executive shall be entitled
to:




(i) payment of an amount equal to the Base Salary that would have been
payable to the Executive for the remainder of the Term (without regard to
its earlier termination hereunder), but in no event less than 12
months, payable in a cash lump sum to the Executive as soon as practicable
following the Date of Termination (but in no event later than 60 days
following such date);




(ii) immediate vesting as of the Date of Termination of the Restricted Stock
as follows: 50% if the Date of Termination occurs prior to the first
anniversary of the Commencement Date; 66% if the Date of Termination occurs
on or after the first anniversary of the Commencement Date but before the
second anniversary of the



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Commencement Date; and 83% if the Date of
Termination occurs on or after the second anniversary of the Commencement
Date but prior to the third anniversary of the Commencement Date;




(iii) immediate vesting as of the Date of Termination of 50% of any
restricted stock (other than the Career Shares and the Restricted Stock)
that remains unvested as of the Date of Termination and, with respect to any
stock options which are vested and outstanding as of the Date of
Termination, continued exercisability for 12 months following the Date of
Termination or the remainder of the option term, if shorter;




(iv) if the Date of Termination occurs after Joseph Gromek is no longer
Chief Executive Officer of the Company, a pro-rata annual bonus determined
by multiplying the amount of the annual bonus the Executive would have
received had his employment continued through the end of the fiscal year in
which the Date of Termination occurs by a fraction, the numerator of which
is the number of days during such fiscal year that the Executive was
employed by the Company and the denominator of which is 365, payable when
bonuses for such fiscal year are paid to other Company executives (which
payment date shall be no earlier than January 1st and no later
than March 15th of the year following the year in which the Date
of Termination occurs);




(v) outplacement counseling for up to 6 months following the Date of
Termination; and




(vi) continued participation on the same terms as immediately prior to the
Date of Termination for the Executive and his eligible dependents in the
Company’s medical and dental plans in which the Executive and his eligible
dependents were participating immediately prior to the Date of Termination
until the earlier of (a) the end of the applicable Term (without regard to
its earlier termination hereunder), but in no event less than 12 months
following the Date of Termination, and (b) the date, or dates, the Executive
receives coverage under the plans or programs of a subsequent employer;
provided that in no event shall there be any gross up provided by the
Company for any income tax liabilities or otherwise.



     If the Company provides written notice to the Executive in accordance with Section 2 above
that the Term shall not renew and upon or at any time after such expiration of the Term the Company
terminates the Executive’s employment under circumstances that during the Term would constitute a
termination of the Executive’s employment without Cause, the Executive shall, subject to Section
15(b) hereof, be entitled to the same payments, benefits and entitlements as a termination without
Cause pursuant to this Section 5(a); provided if such notice of non-renewal of the Term and
termination occurs within one year following a Change in Control, the Executive shall be entitled
to the same payments, benefits and entitlements as a termination without Cause pursuant to Section
5(d) hereof.



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          (b) Termination upon Death or due to Disability. In the event that during the Term
the Executive’s employment is terminated upon death or due to Disability, subject to Section 15(b)
hereof, the Executive (or the Executive’s estate or legal representative, as the case may be) shall
be entitled to:




(i) a pro-rata annual bonus determined by multiplying the amount of the
annual bonus the Executive would have received had his employment continued
through the end of the fiscal year in which the Date of Termination occurs
by a fraction, the numerator of which is the number of days during such
fiscal year that the Executive was employed by the Company and the
denominator of which is 365, payable when bonuses for such fiscal year are
paid to other Company executives (which payment date shall be no earlier
than January 1st and no later than March 15th of the
year following the year in which the Date of Termination occurs);




(ii) immediate vesting as of the Date of Termination of the Restricted Stock
as follows: 50% if the Date of Termination occurs prior to the first
anniversary of the Commencement Date; 66% if the Date of Termination occurs
on or after the first anniversary of the Commencement Date but before the
second anniversary of the Commencement Date; and 83% if the Date of
Termination occurs on or after the second anniversary of the Commencement
Date but prior to the third anniversary of the Commencement Date;




(iii) immediate vesting as of the Date of Termination of 50% of any
restricted stock (other than Career Shares and the Restricted Stock) that
remains unvested as of the Date of Termination; and




(iv) immediate vesting as of the Date of Termination of 50% of any
previously granted Supplemental Award that remains unvested as of the Date
of Termination, payable in accordance with Section 3(d) above.



     (c) Termination by the Company for Cause or a Voluntary Resignation by the Executive.
In the event that during the Term the Company terminates the Executive’s employment for Cause or
the Executive voluntarily resigns, the Executive shall be entitled to the Executive’s Base Salary
and employee benefits through the Date of Termination. A voluntary
resignation by the Executive of the Executive’s employment shall be effective upon 90 days
prior written notice by the Executive to the Company (“Notice Period”), subject to earlier
termination by the Company in accordance herewith. During the Notice Period, the Executive shall
continue to be an employee of the Company and the Executive’s fiduciary duties and other
obligations as an employee of the Company shall continue. The Executive shall cooperate in the
transition of the Executive’s responsibilities; provided that the Company shall have the right to
direct the Executive to no longer come to work or not to perform any work for the Company during
the Notice Period. If and to the extent the Company so directs in writing, in addition to the
Executive’s fiduciary duties and other obligations as an employee and the Executive’s commitments
pursuant to Sections 6 and 7 hereof, the Executive agrees to refrain during the Notice Period from
contacting any customers, clients, advertisers, suppliers, agents, professional



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advisors or
employees of the Company or any of its Affiliates regarding the Company or any of its Affiliates or
the Executive’s employment status in regard to the Company or any of its Affiliates. The Company
shall also have the right to shorten the Notice Period by providing written notice to the
Executive, in which event the Executive’s employment shall terminate on the date stated in such
notice.



          (d) Termination without Cause by the Company or Resignation for Good Reason by the
Executive Upon or Following a Change in Control. In the event that the Executive’s employment
is terminated without Cause by the Company (other than due to Disability) or the Executive resigns
for Good Reason, in both cases upon or within one year following a Change in Control (provided the
Term is still in effect or has expired during this one-year period), subject to Section 15(b)
hereof, the Executive shall be entitled to:




(i) an amount equal to 2 times the sum of (a) Base Salary plus (b) Target
Bonus, payable in a cash lump sum as soon as practicable following the Date
of Termination (but in no event later than 60 days following such date);




(ii) a pro-rata Target Bonus for the year of termination, determined by
multiplying the Target Bonus by a fraction, the numerator of which is the
number of days the Executive was employed by the Company during the year in
which the Date of Termination occurs and the denominator of which is 365,
payable in a cash lump sum as soon as practicable following the Date of
Termination (but in no event later than 60 days following such date);




(iii) immediate vesting as of the Date of Termination of all outstanding
equity awards (other than Career Shares), with any vested and outstanding
stock options remaining exercisable for 24 months following the Date of
Termination or the remainder of the option term, if shorter;




(iv) immediate vesting as of the Date of Termination of any previously
granted Supplemental Award, payable in accordance with Section 3(d) above;




(v) outplacement counseling for up to 6 months following the Date of
Termination; and




(vi) continued participation on the same terms as immediately prior to the
Date of Termination for the Executive and his eligible dependents in the
Company’s welfare benefit plans in which the Executive and his eligible
dependents were participating immediately prior to the Date of Termination
until the earlier of (a) 24 months following the Date of Termination, and
(b) the date, or dates, the Executive receives substantially equivalent
coverage under the plans or programs of a subsequent employer; provided that
in no event shall there be any gross up provided by the Company for any
income tax liabilities or otherwise.



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          (e) Other Entitlements Upon Termination of Employment. In the event of any
termination of the Executive’s employment, the Executive (or his estate or legal representative, as
the case may be) shall be entitled to:




(i) Base Salary through the Date of Termination, payable on the first
regularly scheduled payroll date following the Date of Termination;




(ii) except for a termination of employment pursuant to Section 5(c) above,
payment of any unpaid Annual Bonus for any fiscal year preceding the Date of
Termination, payable when bonuses for such fiscal year are paid to other
Company executives;




(iii) any amounts earned or owing to the Executive but not yet paid under
Section 5 above, payable in accordance with such section; and




(iv) except as otherwise provided in Section 5(f) below, additional
entitlements, if any, in accordance with applicable plans and programs of
the Company (provided that in no event shall the Executive be entitled to
duplication of any payments or benefits).



          (f) Exclusivity of Benefits; Releases of Claims. Any payments provided pursuant to
Section 5(a) or Section 5(d) above shall be in lieu of any salary continuation arrangements under
any other severance program of the Company or any Affiliate and, in all events, the Executive shall
not be entitled to duplication of any benefit or entitlement (whether pursuant to this Agreement,
any other plan, policy, arrangement of, or other agreement with, the Company or any Affiliate or
pursuant to law). In order to be entitled to any payments, rights and other entitlements pursuant
to this Agreement or otherwise, the Executive must comply with the covenants and/or
acknowledgements contained in Sections 6, 7, 8 and 9 of this Agreement. As a condition of
receiving the severance and benefits pursuant to Section 5(a) or Section 5(d) (except for those
payments or benefits required to be paid or provided by applicable law), the Executive shall be
required to execute and deliver to the Company a general release of claims in the form attached
hereto as Exhibit A no later than 45 days following the Date of Termination and not revoke such
release within the applicable revocation period. In the event the Executive revokes
the Release, the Executive shall not be entitled to the payments, rights or other entitlements
hereunder other than as required by applicable law.



          (g) Nature of Payments; No Mitigation. Any amounts due under this Section 5 are in
the nature of severance payments considered to be reasonable by the Company and are not in the
nature of a penalty. In the event of termination of the Executive’s employment for any reason in
compliance with this Agreement, the Executive shall be under no obligation to seek other employment
and, except as specifically provided for in this Section 5 (including, without limitation, Section
5(f) hereof), there shall be no offset against amounts due to the Executive on account of any
remuneration or benefits provided by any subsequent employment the Executive may obtain.



          (h) Resignation. Notwithstanding any other provision of this Agreement, upon the
termination of the Executive’s employment for any reason or, if earlier, upon



12









 







commencement of the
Notice Period, unless otherwise requested by the Company, the Executive shall immediately resign,
if applicable, from all boards of directors of the Company or any Affiliate and as a trustee of, or
fiduciary to, any employee benefit plans of the Company or any Affiliate. The Executive hereby
agrees to execute any and all documentation of such resignations upon request by the Company, but
the Executive shall be treated for all purposes as having so resigned upon termination of the
Executive’s employment or commencement of the Notice Period, as the case may be, regardless of when
or whether the Executive executes any such documentation.



          (i) Section 409A. Notwithstanding anything to the contrary in this Agreement or
elsewhere (except for Section 3(d) of this Agreement), if the Executive is a “specified employee”
as determined pursuant to Section 409A as of the date of the Separation From Service and if any
payment, benefit or entitlement provided for in this Agreement or otherwise both (x) constitutes a
“deferral of compensation” within the meaning of Section 409A and (y) cannot be paid or provided in
a manner otherwise provided herein or otherwise without subjecting the Executive to additional tax,
interest or penalties under Section 409A, then any such payment, benefit or entitlement that is
payable during the first six months following the Executive’s Separation From Service shall be paid
or provided to the Executive in a cash lump-sum on the earlier of the Executive’s death or the
first business day of the seventh calendar month following the month in which the Executive’s
Separation From Service occurs. In addition, any payment, benefit or entitlement due upon a
termination of the Executive’s employment that represents a “deferral of compensation” within the
meaning of Section 409A (other than any payment due pursuant to Section 3(d) of this Agreement)
shall only be paid or provided to Executive upon a Separation From Service, in which case any
reference to “Date of Termination” in connection with such payment, benefit or entitlement shall be
deemed to be a reference to “Separation From Service” and the actual payment date within the time
specified in the applicable provision of Section 5 shall be within the Company’s sole discretion.
Notwithstanding anything to the contrary in this Section 5 or otherwise, any payment or benefit
under this Section 5 or otherwise which is exempt from Section 409A pursuant to Treasury Regulation
Section 1.409A-1(b)(9)(v)(A) or (C) shall be paid or provided to the Executive only to the extent
the expenses are not incurred or the benefits are not provided beyond the last day of the second
taxable year of the Executive following the taxable year of the Executive in which the
Separation From Service occurs; and provided further that the Company reimburses such expenses
no later than the last day of the third taxable year following the taxable year of the Executive in
which the Separation From Service occurs. Finally, to the extent that the provision of any benefit
pursuant to Section 5(a)(vi) or Section 5(d)(vi) hereof is taxable to the Executive, any such
reimbursement shall be paid to the Executive on or before the last day of the Executive’s taxable
year following the taxable year in which the expense is incurred and such reimbursement shall not
be subject to liquidation or exchange for any other benefit.



     6. Protection of Confidential Information and Company Property.



          (a) During the Term and thereafter, other than in the ordinary course of performing the
Executive’s duties for the Company or as required in connection with providing any cooperation to
the Company pursuant to Section 9 below, the Executive agrees that the Executive shall not disclose
to anyone or make use of any trade secret or proprietary or confidential information of the Company
or any Affiliate of the Company, including such trade secret or proprietary or



13









 







confidential
information of any customer or other entity to which the Company owes an obligation not to disclose
such information, which the Executive acquires during the course of the Executive’s employment
(“Confidential Information”), including, but not limited to, records kept in the ordinary course of
business, except when required to do so by a court of law, by any governmental agency having
supervisory authority over the business of the Company or by any administrative or legislative body
(including a committee thereof) with apparent or actual jurisdiction to order the Executive to
divulge, disclose or make accessible such information. “Confidential Information” shall not
include information that (i) was known to the public prior to its disclosure by the Executive; or
(ii) becomes known to the public through no wrongful disclosure by or act of the Executive or any
representative of the Executive. In the event the Executive is requested by subpoena, court order,
investigative demand, search warrant or other legal process to disclose any Confidential
Information, the Executive agrees, unless prohibited by law or Securities and Exchange Commission
regulation, to give the Company’s Chief Executive Officer and, if applicable, the Chairman of the
Board prompt written notice of any request for disclosure in advance of the Executive’s making such
disclosure and the Executive agrees not to disclose such information unless and until the Company
has expressly authorized the Executive to do so in writing or the Company has had a reasonable
opportunity to object to such request or to litigate the matter (of which the Company agrees to
keep the Executive reasonably informed) and has failed to do so.



          (b) The Executive hereby sells, assigns and transfers to the Company all of the Executive’s
right, title and interest in and to all inventions, discoveries, improvements and copyrightable
subject matter (the “Rights”) which during the period of the Executive’s employment are made or
conceived by the Executive, alone or with others, and which are within or arise out of any general
field of the Company’s business or arise out of any work the Executive performs, or information the
Executive receives regarding the business of the Company, while employed by the Company. The
Executive shall fully disclose to the Company as promptly as available all information known or
possessed by the Executive concerning any Rights, and upon request by the Company and without any
further remuneration in any form to the Executive by the Company, but at the expense of the
Company, execute all applications for patents and for copyright registration, assignments thereof
and other instruments and do all things which the
Company may deem necessary to vest and maintain in it the entire right, title and interest in
and to all such Rights.



          (c) The Executive agrees upon termination of employment (whether during or after the
expiration of the Term and whether such termination is at the instance of the Executive or the
Company), and regardless of the reasons therefor, or at any time as the Company may request, the
Executive will promptly deliver to the Company’s Chief Executive Officer, and not keep or deliver
to anyone else, any and all of the following which is in the Executive’s possession or control: (i)
Company property (including, without limitation, credit cards, computers, communication devices,
home office equipment and other Company tangible property) and (ii) notes, files, memoranda, papers
and, in general, any and all physical matter and computer files containing confidential or
proprietary information of the Company or any of its Affiliates, including any and all documents
relating to the conduct of the business of the Company or any of its Affiliates and any and all
documents containing confidential or



14









 







proprietary information of the customers of the Company or any
of its Affiliates, except for (x) any documents for which the Company’s Chief Executive Officer has
given written consent to removal at the time of termination of the Executive’s employment and (y)
any information necessary for the Executive to retain for the Executive’s tax purposes (provided
the Executive maintains the confidentiality of such information in accordance with Section 6
above).



     7. Additional Covenants.



          (a) The Executive acknowledges that in the Executive’s capacity in management the Executive
will have a great deal of exposure and access to the trade secrets of the Company or its Affiliates
and other Confidential Information. Therefore, to protect such trade secrets and other
Confidential Information, the Executive agrees as follows:




(i) during the Executive’s employment with the Company or any Affiliate and
for 12 months following termination of such employment (whether during the
Term or thereafter), the Executive shall not, other than in the ordinary
course of performing the Executive’s duties hereunder or as agreed by the
Company in writing, engage in a “Competitive Business,” directly or
indirectly, as an individual, partner, shareholder, director, officer,
principal, agent, employee, trustee, consultant, or in any relationship or
capacity, in any geographic location in which the Company or any of its
Affiliates is engaged in business; provided, however, that following
termination of the Executive’s employment this prohibition shall not be
deemed to prohibit the Executive from the practice of law for any client or
in respect of any industry or business so long as the Executive does not
breach any of the terms of Section 6 hereof. The Executive shall not be
deemed to be in violation of this Section 7(a) by reason of the fact that
the Executive owns or acquires, solely as an investment, up to two percent
(2%) of the outstanding equity securities (measured by value) of any entity.
“Competitive Business” shall mean a business engaged in (x) apparel design
and/or apparel wholesaling or (y) retailing in competition
with any business that the Company or any of its Affiliates is conducting at
the time of the alleged violation; and




(ii) during the Executive’s employment with the Company or any Affiliate and
for 18 months following termination of such employment for any reason
(whether during the Term or thereafter), the Executive shall not, other than
in the ordinary course of the Company’s business or with the Company’s prior
written consent, directly or indirectly, solicit or encourage any customer
of the Company or any of its Affiliates to reduce or cease its business with
the Company or any such Affiliate or otherwise interfere with the
relationship of the Company or any Affiliate with its customers.



          (b) The Executive agrees that during the Executive’s employment with the Company or any
Affiliate and for 18 months following termination of such employment for any reason (whether during
the Term or thereafter), the Executive shall not, other than in the



15









 







ordinary course of the
Company’s business or with the Company’s prior written consent, directly or indirectly, hire any
employee of the Company or any of its Affiliates, or solicit or encourage any such employee to
leave the employ of the Company or its Affiliates, as the case may be.



          (c) Upon commencement of the Notice Period and following the termination of the Executive’s
employment for any reason (whether during the Term or thereafter), the Executive agrees to refrain
from making any statements or comments, whether oral or written, of a defamatory or disparaging
nature to third parties regarding the Company or any of its Affiliates and any of their officers,
directors, personnel and products. Nothing herein shall prevent the Executive from responding
truthfully and accurately to statements about him made publicly by the Company, provided that such
response is consistent with the Executive’s obligations not to make any statements or comments of a
defamatory or disparaging nature as set forth herein.



     8. Injunctive and Other Relief.



          (a) The Executive acknowledges that the restrictions and commitments set forth in Sections 6,
7 and 9 of this Agreement are necessary to prevent the improper use and disclosure of Confidential
Information and to otherwise protect the legitimate business interests of the Company and any of
its Affiliates. The Executive further acknowledges that the restrictions set forth in Sections 6,
7 and 9 of this Agreement are reasonable in all respects, including, without limitation, duration,
territory and scope of activity. The Executive expressly agrees and acknowledges that any breach
or threatened breach by the Executive or any third party of any obligation by the Executive under
this Agreement, including, without limitation, any breach or threatened breach of Section 6, 7 or 9
of this Agreement, will cause the Company immediate, immeasurable and irreparable harm for which
there is no adequate remedy at law, and as a result of this, in addition to its other remedies, the
Company shall be entitled to the issuance by a court of competent jurisdiction of an injunction,
restraining order, specific performance or other equitable relief in favor of itself, without the
necessity of posting a bond, restraining the Executive or any third party from committing or
continuing to commit any such violation.



          (b) If any restriction set forth in Section 6, 7 or 9 of this Agreement is found by any
arbitrator or court of competent jurisdiction to be unenforceable because it extends for too long a
period of time or over too great a range of activities or in too broad a geographic area, it will
be interpreted to extend over the maximum period of time, range of activities or geographic area as
to which it may be enforceable. If any provision of Section 6, 7 or 9 of this Agreement is
declared to be invalid or unenforceable, in whole or in part, for any reason, such invalidity will
not affect the remaining provisions of such Section which will remain in full force and effect.



     9. Cooperation.



     Following the Executive’s termination of employment for any reason (whether during or after
the expiration of the Term), upon reasonable request by the Company, the Executive shall cooperate
with the Company or any of its Affiliates with respect to any legal or investigatory proceeding,
including any government or regulatory investigation, or any litigation or other dispute relating
to any matter in which the Executive was involved or had knowledge during the



16









 







Executive’s
employment with the Company, subject to the Executive’s reasonable personal and business schedules.
The Company shall reimburse the Executive for all reasonable out-of-pocket costs, such as travel,
hotel and meal expenses and reasonable attorneys’ fees, incurred by the Executive in providing any
cooperation pursuant to this Section 9; provided such expenses shall be paid to the Executive as
soon as practicable but in no event later than the end of the calendar year following the calendar
year in which the expenses are incurred, subject in all cases to the Executive providing
appropriate documentation to the Company. The Company shall also pay the Executive a reasonable
per diem amount for the Executive’s time (other than for time spent preparing for or providing
testimony) which shall be based upon the Executive’s Base Salary at the Date of Termination, with
such per diem paid to the Executive in the calendar month following the month in which he provides
such assistance. Any reimbursement or payment under this Section 9 shall not affect the amount of
the reimbursement or payment to the Executive in any other taxable year. The right to payment or
reimbursement pursuant to this Section 9 shall not be liquidated or exchanged for any other
benefit.



     10. Tax Matters.



          (a) If any amount, entitlement, or benefit paid or payable to the Executive or provided for
the Executive’s benefit under this Agreement and under any other agreement, plan or program of the
Company or any Affiliate (such payments, entitlements and benefits referred to as a “Payment”) is
subject to the excise tax imposed under Code Section 4999, or any similar federal or state law (an
“Excise Tax”), then notwithstanding anything contained in this Agreement to the contrary, to the
extent that any or all Payments would be subject to the imposition of an Excise Tax, the Payments
shall be reduced (but not below zero) if and to the extent that such reduction would result in the
Executive retaining a larger amount, on an after-tax basis (taking into account federal, state and
local income taxes and the imposition of the Excise Tax), than if the Executive received all of the
Payments (such reduced amount is hereinafter referred to as the “Limited Payment Amount”). The
Company shall reduce or eliminate the Payments by first reducing or eliminating the payments or
benefits payable in cash and then by reducing or eliminating the non-cash payments, in each case in
reverse order beginning with payments or benefits which are to be paid the farthest in time from
the Determination (as defined below).



          (b) All calculations under this Section 10 shall be made by a nationally recognized accounting
firm designated by the Company and reasonably acceptable to the Executive (other than the
accounting firm that is regularly engaged by any party who has effectuated a Change in Control)
(the “Accounting Firm”). The Company shall pay all fees and expenses of such Accounting Firm. The
Accounting Firm shall provide its calculations, together with detailed supporting documentation,
both to the Company and the Executive within 45 days after the Change in Control or the Date of
Termination, whichever is later (or such earlier time as is requested by the Company) and, with
respect to the Limited Payment Amount, shall deliver its opinion to the Executive that the
Executive is not required to report any Excise Tax on the Executive’s federal income tax return
with respect to the Limited Payment Amount (collectively, the “Determination”). Within 5 days of
the Executive’s receipt of the Determination, the Executive shall have the right to dispute the
Determination (the “Dispute”). The existence of the Dispute shall not in any way affect the right
of the Executive to receive the Payments in



17









 







accordance with the Determination. If there is no
Dispute, the Determination by the Accounting Firm shall be final binding and conclusive upon the
Company and the Executive (except as provided in Section 10(c) below).



          (c) If, after the Payments have been made to the Executive, it is established that the
Payments made to, or provided for the benefit of, the Executive exceed the limitations provided in
Section 10(a) above (an “Excess Payment”) or are less than such limitations (an “Underpayment”), as
the case may be, then the provisions of this Section 10(c) shall apply. If it is established
pursuant to a final determination of a court or an Internal Revenue Service (the “IRS”) proceeding
which has been finally and conclusively resolved, that an Excess Payment has been made, the
Executive shall repay the Excess Payment to the Company within 20 days following the determination
of such Excess Payment. In the event that it is determined by (i) the Accounting Firm, the Company
(which shall include the position taken by the Company, or together with its consolidated group, on
its federal income tax return) or the IRS, (ii) pursuant to a determination by a court, or (iii)
upon the resolution to the satisfaction of the Executive of the
Dispute, that an Underpayment has occurred, the Company shall pay an amount equal to the
Underpayment to the Executive within 10 days of such determination or resolution together with
interest on such amount at the applicable federal short-term rate, as defined under Code Section
1274(d) and as in effect on the first date that such amount should have been paid to the Executive
under this Agreement, from such date until the date that such Underpayment is made to the
Executive.



     11. Representations.



     As of the date he executes this Agreement, the Executive represents and warrants that he has
the free and unfettered right to enter into this Agreement and perform the Executive’s obligations
under it and that the Executive knows of no agreement between the Executive and any other person,
firm or organization, or any law or regulation, that would be violated by the performance of the
Executive’s obligations under this Agreement. The Executive agrees that the Executive will not use
or disclose any confidential or proprietary information of any prior employer in the course of
performing the Executive’s duties for the Company or any of its Affiliates.



     12. Indemnification and Liability Insurance.



     The Company hereby agrees during, and after termination of, his employment to indemnify the
Executive and hold him harmless, both during the Term and thereafter, to the fullest extent
permitted by law and under the certificate of incorporation and by-laws of the Company against and
in respect of any and all actions, suits, proceedings, claims, demands, judgments, costs, expenses
(including reasonable attorneys’ fees), losses, amounts paid in settlement to the extent approved
by the Company, and damages resulting from the Executive’s good faith performance of his duties as
an officer or director of the Company or any Affiliate of the Company. The Company shall reimburse
the Executive for expenses incurred by him in connection with any proceeding hereunder upon written
request from the Executive for such reimbursement and the submission by the Executive of the
appropriate documentation associated with these expenses. Such request shall include an
undertaking by the Executive to repay the amount of such advance or reimbursement if it shall
ultimately be determined that he is not



18









 







entitled to be indemnified hereunder against such costs and
expenses. The Company shall use commercially reasonable efforts to obtain and maintain directors’
and officers’ liability insurance covering the Executive to the same extent as the Company covers
its other officers and directors.



     13. Resolution of Disputes.



     Except as otherwise provided in Section 8 above, any controversy, dispute or claim arising
under or relating to this Agreement, the Executive’s employment with the Company or any Affiliate
or the termination thereof shall, at the election of the Executive or the Company (unless otherwise
provided in an applicable Company plan, program or agreement), be resolved by confidential, binding
and final arbitration, to be held in the borough of Manhattan in New York City in accordance with
the rules and procedures of the Commercial Arbitration Rules of the American Arbitration
Association. Judgment upon the award rendered by the arbitrator may be entered in any court having
jurisdiction thereof and shall be binding upon the Parties. The
Executive consents to the personal and exclusive jurisdiction of the courts of the State of
New York (including the United States District Court for the Southern District of New York) in any
proceedings hereunder, including, without limitation, any proceeding for equitable relief. The
Executive further agrees not to interpose any objection for improper venue in any such proceeding.
Each Party shall be responsible for its own costs and expenses, including attorneys’ fees, and
neither Party shall be liable for punitive or exemplary damages, provided that if the Executive
substantially prevails with respect to all claims that are the subject matter of the dispute, his
costs, including attorneys’ fees, shall be borne by the Company and if such costs are not
reimbursed by the Company in a dispute exempt pursuant to Treasury Regulation 1.409A-1(b)(11) then
such payment shall be made by the Company to the Executive in the year following the year in which
the dispute is resolved.



     14. Notices.



     Any notice given to a Party shall be in writing and shall be deemed to have been given (i)
when delivered personally, (ii) three days after being sent by certified or registered mail,
postage prepaid, return receipt requested or (iii) two days after being sent by overnight courier
(provided that a written acknowledgement of receipt is obtained by the overnight courier), with any
such notice duly addressed to the Party concerned at the address indicated below or to such other
address as such Party may subsequently designate by written notice in accordance with this Section
14:



	 	 	 
	If to the Company:

	 	The Warnaco Group, Inc.

501 Seventh Avenue

New York, New York 10018

Attention: Chief Executive Officer
	 
	If to the Executive:

	 	The most recent address in the Company’s records.






     15. Miscellaneous Provisions.



19









 





          (a) This Agreement shall be governed by and construed and interpreted in accordance with the
laws of New York without reference to principles of conflicts of law, provided, however, that
Federal law shall apply to the interpretation or enforcement of the arbitration provisions of
Section 13 hereof. This Agreement contains the entire understanding and agreement between the
Parties concerning the subject matter hereof and, as of the Effective Date, shall supersede all
prior agreements, understandings, discussions, negotiations and undertakings, whether written or
oral, between the Parties with respect thereto. No provision of this Agreement may be amended
unless such amendment is agreed to in writing and signed by the Executive and an authorized officer
of the Company. No waiver by either Party of any breach by the other Party of any condition or
provision contained in this Agreement to be performed by such other Party shall be deemed a waiver
of a similar or dissimilar condition or provision at the same or any prior or subsequent time. The
respective rights and obligations of the Parties hereunder, including, without limitation, Section
6 (protection of confidential information and company property), Section 7 (additional covenants),
Section 8 (injunctive and other relief), Section 9 (cooperation) and Section 13 (resolution of
disputes), shall survive any
expiration of the Term, including expiration thereof upon the Executive’s termination of
employment for whatever reason, to the extent necessary to the intended preservation of such rights
and obligations.



          (b) The Company may withhold from any amounts, payments or benefits under this Agreement such
Federal, state, local or other taxes as shall be required to be withheld pursuant to any applicable
law or regulation.



          (c) This Agreement shall be binding upon and inure to the benefit of the Parties and their
respective successors, heirs (in the case of the Executive) and assigns. No rights or obligations
of the Executive under this Agreement may be assigned or transferred by the Executive other than
the Executive’s rights to compensation and benefits, which may be transferred only by will,
operation of law or in accordance with any applicable Company plan, program or agreement.



          (d) In the event that any provision or portion of this Agreement shall be determined to be
invalid or unenforceable by an arbitrator or court of competent jurisdiction for any reason, in
whole or in part, the remaining provisions of this Agreement shall be unaffected thereby and shall
remain in full force and effect to the fullest extent permitted by law.



          (e) The headings and subheadings of the sections contained in this Agreement are for
convenience only and shall not be deemed to control or affect the meaning or construction of any
provision of this Agreement.



          (f) The effectiveness of this Agreement is conditioned upon (i) there being no agreement as of
the Commencement Date between the Executive and any prior employer that interferes, or could
interfere with, the Executive’s employment with the Company unless such agreement is to the
satisfaction of the Company waived by such prior employer; (ii) the Executive’s successful
completion, prior to the Commencement Date, of the Company’s standard pre-employment checks; and
(iii) the Executive commencing employment with the Company no later than September 2, 2008.



20









 





     (g) This Agreement may be executed in two or more counterparts.



[Signatures on next page.]




21









 








     IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first written
above.



	 	 	 	 	 
	 	THE WARNACO GROUP, INC.

 	 
	 	By:  	/s/ Joseph R. Gromek
 	 
	 	 	Name:  	Joseph R. Gromek 	 
	 	 	Title:  	Chief Executive Officer 	 
	 
	 	THE EXECUTIVE

 	 
	 	/s/ Jay Dubiner
 	 
	 	 	 
	 	Jay Dubiner 	 



22









 






	 	 	 	 	 



Exhibit A




AGREEMENT AND RELEASE OF CLAIMS





     THIS AGREEMENT AND RELEASE is executed by the undersigned (the “Executive”) as of the date
hereof.



     WHEREAS, the Executive and The Warnaco Group, Inc. (the “Company”) entered into an employment
agreement dated August 11, 2008 (the “Employment Agreement”);



     WHEREAS, the Executive has certain entitlements pursuant to the Employment Agreement subject
to the Executive’s executing this Agreement and Release and complying with its terms.



     NOW, THEREFORE, in consideration of the payments set forth in Section 5 of the Employment
Agreement and other good and valuable consideration, the Executive agrees as follows:



     The Executive, on behalf of himself and his dependents, heirs, administrators, agents,
executors, successors and assigns (the “Executive Releasors”), hereby releases and forever
discharges the Company and its affiliated companies and their past and present parents,
subsidiaries, successors and assigns and all of the aforesaid companies’ past and present officers,
directors, employees, trustees, shareholders, representatives and agents (the “Company Releasees”),
from any and all claims, demands, obligations, liabilities and causes of action of any kind or
description whatsoever, in law, equity or otherwise, whether known or unknown, that any Executive
Releasor had, may have had or now has against the Company or any other Company Releasee as of the
date of execution of this Agreement and Release arising out of or relating to the Executive’s
employment relationship, or the termination of that relationship, with the Company (or any
affiliate), including, but not limited to, any claim, demand, obligation, liability or cause of
action arising under any Federal, state, or local employment law or ordinance (including, but not
limited to, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Equal Pay
Act, the Americans With Disabilities Act of 1991, the Workers Adjustment and Retraining
Notification Act, the Employee Retirement Income Security Act (other than any claim for vested
benefits), the Family and Medical Leave Act, and the Age Discrimination in Employment Act, as
amended by the Older Workers’ Benefit Protection Act (“ADEA”)), tort, contract, or alleged
violation of any other legal obligation (collectively “Released Executive Claims”). In addition,
in consideration of the promises and covenants of the Company, the Executive, on behalf of himself
and the other Executive Releasors, further agrees to waive any and all rights under the laws of any
jurisdiction in the United States, or any other country, that limit a general release to any of the
foregoing actions, causes of action, claims or charges that are known or suspected to exist in the
Executive’s favor as of the date of this Agreement and Release. Anything to the contrary
notwithstanding in this Agreement and Release or the Employment Agreement, nothing herein shall
release any Company Releasee from any claims or damages based on (i) any right or claim that arises
after the date of this Agreement and Release pertaining to a matter that arises after such date,
(ii) any right the Executive may have to enforce Sections 5, 10 and 12 of the Employment Agreement,
(iii) any right or claim the Executive may have to benefits or equity awards that have accrued or
vested as



23









 







of the Date of Termination or any right pursuant to any qualified retirement plan or (iv) any right the Executive may have
to be indemnified by the Company to the extent such indemnification by the Company or any Affiliate
is permitted by applicable law or the Company’s by-laws.



     The Executive agrees that he shall continue to be bound by, and will comply with, the
provisions of Sections 6, 7, 9 and 13 of the Employment Agreement and the provisions of such
sections, along with Section 8 of the Employment Agreement, shall be incorporated fully into this
Agreement and Release.



     The Executive acknowledges that he has been provided a period of at least 21 calendar days (45
calendar days in the case of any termination covered by Section 7(f)(1)(F)(ii) of ADEA) in which to
consider and execute this Agreement and Release. The Executive further acknowledges and
understands that he has seven calendar days from the date on which he executes this Agreement and
Release to revoke his acceptance by delivering to the Company written notification of his intention
to revoke this Agreement and Release in accordance with Section 14 of the Employment Agreement.
This Agreement and Release becomes effective when signed unless revoked in writing and in
accordance with this seven-day provision. To the extent that the Executive has not otherwise done
so, the Executive is advised to consult with an attorney prior to executing this Agreement and
Release.



     This Agreement and Release shall be governed by and construed and interpreted in accordance
with the laws of New York without reference to principles of conflicts of law. Capitalized terms,
unless defined herein, shall have the meaning ascribed to such terms in the Employment Agreement.



     IN WITNESS WHEREOF, the Executive has executed this Agreement and Release as of the date
hereof.



	 	 	 
		 	____________________________________________ 
	 
	 

	 	Date:________________________________________







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