Document:

EXECUTION
VERSION

THIS AMENDED AND RESTATED
GUARANTY IS SUBJECT TO THE TERMS AND PROVISIONS OF THE INTERCREDITOR
AGREEMENT, DATED AS OF JANUARY 31, 2006 (AS SUCH AGREEMENT MAY BE
AMENDED, AMENDED AND RESTATED, SUPPLEMENTED OR OTHERWISE MODIFIED FROM
TIME, THE ‘‘INTERCREDITOR
AGREEMENT’’), AMONG CITICORP NORTH AMERICA, INC.,
AS REVOLVING FACILITY AGENT, CITICORP NORTH AMERICA, INC., AS TERM
FACILITY AGENT, CITICORP NORTH AMERICA, INC., AS COLLATERAL AGENT FOR
THE SECURED PARTIES, WARNACO INC., THE WARNACO GROUP,
INC. AND EACH OTHER GUARANTOR.

THIS
AMENDED AND RESTATED GUARANTY, dated as of January
31,  2006 (this
‘‘Guaranty’’), by The
Warnaco Group, Inc., a Delaware Corporation
(‘‘Group’’) and each of the
other entities listed on the signature pages hereof or that becomes a
party hereto pursuant to Section 25 (Additional
Guarantors) hereof (each a ‘‘Subsidiary
Guarantor’’ and, together with Group,
collectively, the
‘‘Guarantors’’ and
individually a
‘‘Guarantor’’), in favor of
the Collateral Agent, each Lender, each Issuer and each other holder of
an Obligation (as each such term is defined in the Credit Agreement
referred to below) (each, a ‘‘Guarantied
Party’’ and, collectively, the
‘‘Guarantied Parties’’)
amends and restates in its entirety the Existing Guaranty (as defined
below).

W I T N E S S E T
H:

WHEREAS, Warnaco, Inc.,
a Delaware corporation (the
‘‘Borrower’’), Group, the
lenders and issuers party thereto from time to time, Citicorp North
America, Inc. (‘‘CNAI’’) as
administrative agent and collateral agent (in such capacity, the
‘‘Existing Agent’’),
JPMorgan Chase Bank, N.A., as syndication agent (in such capacity, the
‘‘Syndication Agent’’), and
Bank of America, NA, The CIT Group/Commercial Services, Inc., and
Wachovia Capital Finance Corporation (Central) f/k/a Congress Financial
Corporation (Central), as co-documentation agents (in such capacity,
collectively, the ‘‘Co-documentation
Agents’’) are parties to the Credit Agreement,
dated as of February  4,  2003 (as amended, supplemented or
otherwise modified from time to time prior to the date hereof, the
‘‘Existing Credit
Agreement’’);

WHEREAS, the
Borrower has requested, and the other parties to the Credit Agreement
(as defined below) have agreed, that the Existing Credit Agreement
would be amended and restated to, among other things, supplement the
existing facility with a Term Loan in the aggregate principal amount of
$180,000,000;

WHEREAS, the Borrower, Group, the
lenders and issuers party thereto from time to time, CNAI, as
administrative agent for the Revolving Credit Facility (in such
capacity, the ‘‘Revolving Facility
Agent’’), as administrative agent for the Term
Loan Facility (in such capacity, the ‘‘Term
Facility Agent’’ and together with the Revolving
Facility Agent, collectively, in such capacities, the
‘‘Administrative Agents’’)
and as Collateral Agent for the Lenders and the Issuers (together with
the Administrative Agents, the ‘‘Facility
Agents’’), the Syndication Agent and the
Co-documentation Agents have entered into the Amended and Restated
Credit Agreement, dated as of January  31,  2006 (as
amended, supplemented or otherwise modified from time to time, the
‘‘Credit Agreement’’) which
amends and restates the Existing Credit Agreement in its
entirety;

WHEREAS, it is condition precedent to
the effectiveness of the Credit Agreement that the Guarantors shall
have executed and delivered this Guaranty to the Collateral
Agent;

WHEREAS, (i) this Guaranty, on the terms
and subject to the conditions set forth herein, shall amend and
restate, in its entirety, the guaranty, dated as of February
4,  2003 (as amended, supplemented or otherwise modified from
time to time prior to the date hereof, the
‘‘Existing Guaranty’’)
entered into by the guarantors from time to time party thereto and (ii)
from and after the Closing Date, the Existing Guaranty shall be of no
further force or effect, except to evidence the obligations incurred,
the representations and warranties made, and the actions or omissions
performed or required to be performed, thereunder prior to the Closing
Date;

WHEREAS, Group is the sole
shareholder of the Borrower and each Subsidiary Guarantor is a direct
or indirect Subsidiary of the Borrower;

WHEREAS,
each Guarantor will receive substantial direct and indirect benefits
from the making of the Loans, the issuance of the Letters of Credit and
the granting of the other financial accommodations to the Borrower
under the Credit Agreement; and

WHEREAS, a
condition precedent to the obligation of the Lenders and the Issuers to
make their respective extensions of credit to the Borrower under the
Credit Agreement is that the Guarantors shall have executed and
delivered this Guaranty for the benefit of the Guarantied Parties;

NOW, THEREFORE, in consideration of the premises set
forth above, the terms and conditions contained herein, and other good
and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as
follows:

Section 1 Guaranty

(a) To
induce the Lenders to make the Loans and the Issuers to issue Letters
of Credit, each Guarantor hereby absolutely, unconditionally and
irrevocably guarantees, jointly with the other Guarantors and
severally, as primary obligor and not merely as surety, the full and
punctual payment when due and in the currency due, whether at stated
maturity or earlier, by reason of acceleration, mandatory prepayment or
otherwise in accordance herewith or any other Loan Document, of all the
Obligations, whether or not from time to time reduced or extinguished
or hereafter increased or incurred, whether or not recovery may be or
hereafter may become barred by any statute of limitations, whether or
not enforceable as against the Borrower, whether now or hereafter
existing, and whether due or to become due, including principal,
interest (including interest at the contract rate applicable upon
default accrued or accruing after the commencement of any proceeding
under the Bankruptcy Code, or any applicable provisions of comparable
state or foreign law, whether or not such interest is an allowed claim
in such proceeding), fees and costs of collection. This Guaranty
constitutes a guaranty of payment and not of collection.
Notwithstanding the foregoing, Calvin Klein Jeanswear Company shall not
be required to make any payment hereunder until the 30th day after
written demand therefor has been given by the Collateral Agent in
accordance with the terms of the Credit Agreement and, for the
avoidance of doubt, its is agreed and understood that no Default or
Event of Default under the Credit Agreement shall in and of itself
constitute a default under this Guaranty.

(b) Each
Guarantor further agrees that, if (i) any payment made by
Borrower or any other Person and applied to the Obligations is at any
time annulled, avoided, set aside, rescinded, invalidated, declared to
be fraudulent or preferential or otherwise required to be refunded or
repaid, or (ii) any proceeds of Collateral are required to be
returned by any Guarantied Party to the Borrower, its estate, trustee,
receiver or any other party, including any Guarantor, under any
bankruptcy law, equitable cause or any other Requirement of Law, then,
to the extent of such payment or repayment, any such Guarantor’s
liability hereunder (and any Lien or other Collateral securing such
liability) shall be and remain in full force and effect, as fully as if
such payment had never been made. If, prior to any of the foregoing,
this Guaranty shall have been cancelled or surrendered (and if any Lien
or other Collateral securing such Guarantor’s liability
hereunder shall have been released or terminated by virtue of such
cancellation or surrender), this Guaranty (and such Lien or other
Collateral) shall be reinstated in full force and effect, and such
prior cancellation or surrender shall not diminish, release, discharge,
impair or otherwise affect the obligations of any such Guarantor in
respect of the amount of such payment (or any Lien or other Collateral
securing such
obligation).

Section 2 Limitation of
Guaranty

Any term or provision of this Guaranty or any other Loan
Document to the contrary notwithstanding, the maximum aggregate amount
of the Obligations for which any Subsidiary Guarantor shall be liable
shall not exceed the maximum amount for which such Subsidiary Guarantor
can be liable without rendering this Guaranty or any other Loan
Document, as it relates to such Subsidiary Guarantor, subject to
avoidance under applicable law relating to fraudulent conveyance or

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fraudulent transfer (including
Section 548 of the Bankruptcy Code or any applicable provisions
of comparable state law) (collectively,
‘‘Fraudulent Transfer
Laws’’), in each case after giving effect (a) to
all other liabilities of such Subsidiary Guarantor, contingent or
otherwise, that are relevant under such Fraudulent Transfer Laws
(specifically excluding, however, any liabilities of such Subsidiary
Guarantor in respect of intercompany Indebtedness to the Borrower to
the extent that such Indebtedness would be discharged in an amount
equal to the amount paid by such Subsidiary Guarantor hereunder) and
(b) to the value as assets of such Subsidiary Guarantor (as determined
under the applicable provisions of such Fraudulent Transfer Laws) of
any rights to subrogation, contribution, reimbursement, indemnity or
similar rights held by such Subsidiary Guarantor pursuant to
(i) applicable Requirements of Law,
(ii) Section 3 (Contribution) of this Guaranty or
(iii) any other Contractual Obligations providing for an
equitable allocation among such Subsidiary Guarantor and other
Subsidiaries or Affiliates of the Borrower of obligations arising under
this Guaranty or other guaranties of the Obligations by such
parties.

Section 3 Contribution

To the
extent that any Subsidiary Guarantor shall be required hereunder to pay
a portion of the Obligations exceeding the greater of (a) the
amount of the economic benefit actually received by such Subsidiary
Guarantor from the Loans and the other financial accommodations
provided to the Borrower under the Loan Documents and (b) the
amount such Subsidiary Guarantor would otherwise have paid if such
Subsidiary Guarantor had paid the aggregate amount of the Obligations
(excluding the amount thereof repaid by the Borrower and Group) in the
same proportion as such Subsidiary Guarantor’s net worth at the
date enforcement is sought hereunder bears to the aggregate net worth
of all the Subsidiary Guarantors at the date enforcement is sought
hereunder, then such Guarantor shall be reimbursed by such other
Subsidiary Guarantors for the amount of such excess, pro rata, based on
the respective net worths of such other Subsidiary Guarantors at the
date enforcement hereunder is
sought.

Section 4 Authorization; Other
Agreements

The Guarantied Parties are hereby authorized, without
notice to, or demand upon, any Guarantor, which notice and demand
requirements each are expressly waived hereby, and without discharging
or otherwise affecting the obligations of such Guarantor hereunder
(which obligations shall remain absolute and unconditional
notwithstanding any such action or omission to act), from time to time,
to do each of the following:

(a) supplement, renew,
extend, accelerate or otherwise change the time for payment of, or
other terms relating to, the Obligations, or any part of them, or
otherwise modify, amend or change the terms of any promissory note or
other agreement, document or instrument (including the other Loan
Documents) now or hereafter executed by the Borrower and delivered to
the Guarantied Parties or any of them, including any increase or
decrease of principal or the rate of interest
thereon;

(b) waive or otherwise consent to noncompliance
with any provision of any instrument evidencing the Obligations, or any
part thereof, or any other instrument or agreement in respect of the
Obligations (including the other Loan Documents) now or hereafter
executed by the Borrower and delivered to the Guarantied Parties or any
of them;

(c) accept partial payments on the
Obligations;

(d) receive, take and hold additional
security or collateral for the payment of the Obligations or any part
of them and exchange, enforce, waive, substitute, liquidate, terminate,
abandon, fail to perfect, subordinate, transfer, otherwise alter and
release any such additional security or
collateral;

(e) settle, release, compromise, collect or
otherwise liquidate the Obligations or accept, substitute, release,
exchange or otherwise alter, affect or impair any security or
collateral for the Obligations or any part of them or any other
guaranty therefor, in any manner;

(f) add, release or
substitute any one or more other guarantors, makers or endorsers of the
Obligations or any part of them and otherwise deal with the Borrower or
any other guarantor, maker or endorser;

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(g) apply to the Obligations any
payment or recovery (x) from the Borrower, from any other
guarantor, maker or endorser of the Obligations or any part of them or
(y) from any Guarantor in such order as provided herein, in each
case whether such Obligations are secured or unsecured or guaranteed or
not guaranteed by others;

(h) apply to the Obligations any
payment or recovery from any Guarantor of the Obligations or any sum
realized from security furnished by such Guarantor upon its
indebtedness or obligations to the Guarantied Parties or any of them,
in each case whether or not such indebtedness or obligations relate to
the Obligations; and

(i) refund at any time any payment
received by any Guarantied Party in respect of any Obligation, and
payment to such Guarantied Party of the amount so refunded shall be
fully guaranteed hereby even though prior thereto this Guaranty shall
have been cancelled or surrendered (or any release or termination of
any Collateral by virtue thereof), and such prior cancellation or
surrender shall not diminish, release, discharge, impair or otherwise
affect the obligations of any Guarantor hereunder in respect of the
amount so refunded (and any Collateral so released or terminated shall
be reinstated with respect to such obligations); even if any right of
reimbursement or subrogation or other right or remedy of any Guarantor
is extinguished, affected or impaired by any of the foregoing
(including any election of remedies by reason of any judicial,
non-judicial or other proceeding in respect of the Obligations that
impairs any subrogation, reimbursement or other right of such
Guarantor).

Section 5 Guaranty Absolute and
Unconditional

Each Guarantor hereby waives any defense of a
surety or guarantor or any other obligor on any obligations arising in
connection with or in respect of any of the following and hereby agrees
that its obligations under this Guaranty are absolute and unconditional
and shall not be discharged or otherwise affected as a result of any of
the following:

(a) the invalidity or unenforceability of
any of the Borrower’s obligations under the Credit Agreement or
any other Loan Document or any other agreement or instrument relating
thereto, or any security for, or other guaranty of the Obligations or
any part of them, or the lack of perfection or continuing perfection or
failure of priority of any security for the Obligations or any part of
them;

(b) the absence of any attempt to collect the
Obligations or any part of them from the Borrower or other action to
enforce the same;

(c) failure by any Guarantied Party to
take any steps to perfect and maintain any Lien on, or to preserve any
rights to, any Collateral;

(d) any Guarantied
Party’s election, in any proceeding instituted under chapter 11
of the Bankruptcy Code, of the application of Section 1111(b)(2)
of the Bankruptcy Code or any applicable provisions of comparable state
or foreign law;

(e) any borrowing or grant of a Lien by
the Borrower, as debtor-in-possession, or extension of credit, under
Section 364 of the Bankruptcy Code or any applicable provisions
of comparable state or foreign law;

(f) the disallowance,
under Section 502 of the Bankruptcy Code, of all or any portion
of any Guarantied Party’s claim (or claims) for repayment of the
Obligations ;

(g) any use of cash collateral under
Section 363 of the Bankruptcy Code;

(h) any
agreement or stipulation as to the provision of adequate protection in
any bankruptcy proceeding;

(i) the avoidance of any Lien
in favor of the Guarantied Parties or any of them for any
reason;

(j) any bankruptcy, insolvency, reorganization,
arrangement, readjustment of debt, liquidation or dissolution
proceeding commenced by or against the Borrower, any Guarantor or any
of the Borrower’s other Subsidiaries, including any discharge
of, or bar or stay against collecting, any Obligation (or any part of
them or interest thereon) in or as a result of any such
proceeding;

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(k) failure by any Guarantied Party
to file or enforce a claim against the Borrower or its estate in any
bankruptcy or insolvency case or proceeding;

(l) any
action taken by any Guarantied Party if such action is authorized
hereby;

(m) any election following the occurrence of an
Event of Default by any Guarantied Party to proceed separately against
the personal property Collateral in accordance with such Guarantied
Party’s rights under the UCC or, if the Collateral consists of
both personal and real property, to proceed against such personal and
real property in accordance with such Guarantied Party’s rights
with respect to such real property; or

(n) any other
circumstance that might otherwise constitute a legal or equitable
discharge or defense of a surety or guarantor or any other obligor on
any obligations, other than the payment in full of the
Obligations.

Section 6 Waivers

Each
Guarantor hereby waives diligence, promptness, presentment, demand for
payment or performance and protest and notice of protest, notice of
acceptance and any other notice in respect of the Obligations or any
part of them, and any defense arising by reason of any disability or
other defense of the Borrower. Each Guarantor shall not, until the
Obligations are irrevocably paid in full and the Commitments have been
terminated, assert any claim or counterclaim it may have against the
Borrower or set off any of its obligations to the Borrower against any
obligations of the Borrower to it. In connection with the foregoing,
each Guarantor covenants that its obligations hereunder shall not be
discharged, except by complete
performance.

Section 7 Reliance

Each
Guarantor hereby assumes responsibility for keeping itself informed of
the financial condition of the Borrower and any endorser and other
guarantor of all or any part of the Obligations, and of all other
circumstances bearing upon the risk of nonpayment of the Obligations,
or any part thereof, that diligent inquiry would reveal, and each
Guarantor hereby agrees that no Guarantied Party shall have any duty to
advise any Guarantor of information known to it regarding such
condition or any such circumstances. In the event any Guarantied Party,
in its sole discretion, undertakes at any time or from time to time to
provide any such information to any Guarantor, such Guarantied Party
shall be under no obligation (a) to undertake any investigation
not a part of its regular business routine, (b) to disclose any
information that such Guarantied Party, pursuant to accepted or
reasonable commercial finance or banking practices, wishes to maintain
confidential or (c) to make any other or future disclosures of
such information or any other information to any
Guarantor.

Section 8 Waiver of Subrogation
and Contribution Rights

Until the Obligations have been
irrevocably paid in full and the Commitments have been terminated, the
Guarantors shall not enforce or otherwise exercise any right of
subrogation to any of the rights of the Guarantied Parties or any part
of them against the Borrower or any right of reimbursement or
contribution or similar right against the Borrower by reason of this
Guaranty or by any payment made by any Guarantor in respect of the
Obligations.

Section 9 Subordination

Each
Guarantor hereby agrees that any Indebtedness of the Borrower now or
hereafter owing to any Guarantor, whether heretofore, now or hereafter
created (the ‘‘Guarantor Subordinated
Debt’’), is hereby subordinated to all of the
Obligations and that, except as permitted under Section 8.6
(Payment and Cancellation of Indebtedness) of the Credit Agreement,
the Guarantor Subordinated Debt shall not be paid in whole or in part
until the Obligations have been paid in full and this Guaranty is
terminated and of no further force or effect. No Guarantor shall accept
any payment of or on account of any Guarantor Subordinated Debt at any
time in contravention of the foregoing. Upon the occurrence and during
the continuance of an Event of Default, the Borrower shall pay to the
Collateral Agent any payment of all or any part of the Guarantor
Subordinated Debt and any 

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amount so paid to the Collateral Agent shall
be applied to payment of the Obligations as provided in the
Intercreditor Agreement. Each payment on the Guarantor Subordinated
Debt received in violation of any of the provisions hereof shall be
deemed to have been received by such Guarantor as trustee for the
Guarantied Parties and shall be paid over to the Collateral Agent
immediately on account of the Obligations, but without otherwise
affecting in any manner such Guarantor’s liability hereof. Each
Guarantor agrees to file all claims against the Borrower in any
bankruptcy or other proceeding in which the filing of claims is
required by law in respect of any Guarantor Subordinated Debt, and the
Collateral Agent shall be entitled to all of such Guarantor’s
rights thereunder. If for any reason a Guarantor fails to file such
claim at least ten Business Days prior to the last date on which such
claim should be filed, such Guarantor hereby irrevocably appoints the
Collateral Agent as its true and lawful attorney-in-fact and is hereby
authorized to act as attorney-in-fact in such Guarantor’s name
to file such claim or, in the Collateral Agent’s discretion, to
assign such claim to and cause proof of claim to be filed in the name
of the Collateral Agent or its nominee. In all such cases, whether in
administration, bankruptcy or otherwise, the person or persons
authorized to pay such claim shall pay to the Collateral Agent the full
amount payable on the claim in the proceeding, and, to the full extent
necessary for that purpose, each Guarantor hereby assigns to the
Collateral Agent all of such Guarantor’s rights to any such
payments or distributions to which such Guarantor otherwise would be
entitled. If the amount so paid is greater than such Guarantor’s
liability hereunder, the Collateral Agent shall pay the excess amount
to the party entitled thereto. In addition, each Guarantor hereby
irrevocably appoints the Collateral Agent as its attorney-in-fact to
exercise all of such Guarantor’s voting rights in connection
with any bankruptcy proceeding or any plan for the reorganization of
the Borrower.

Section 10 Default;
Remedies

The obligations of each Guarantor hereunder are
independent of and separate from the Obligations. If any Obligation is
not paid when due, or upon any Event of Default hereunder or upon any
default by the Borrower as provided in any other instrument or document
evidencing all or any part of the Obligations, the Collateral Agent
may, at its sole election, proceed directly and at once, without
notice, against any Guarantor to collect and recover the full amount or
any portion of the Obligations then due, without first proceeding
against the Borrower or any other guarantor of the Obligations, or
against any Collateral under the Loan Documents or joining the Borrower
or any other guarantor in any proceeding against any Guarantor. At any
time after maturity of the Obligations, the Collateral Agent may
(unless the Obligations have been irrevocably paid in full), without
notice to any Guarantor and regardless of the acceptance of any
Collateral for the payment hereof, appropriate and apply toward the
payment of the Obligations (a) any indebtedness due or to become
due from any Guarantied Party to such Guarantor and (b) any
moneys, credits or other property belonging to such Guarantor at any
time held by or coming into the possession of any Guarantied Party or
any of its respective
Affiliates.

Section 11 Irrevocability

This
Guaranty shall be irrevocable as to the Obligations (or any part
thereof) until the Commitments have been terminated and all monetary
Obligations then outstanding have been irrevocably repaid in cash, at
which time this Guaranty shall automatically be cancelled. Upon such
cancellation and at the written request of any Guarantor or its
successors or assigns, and at the cost and expense of such Guarantor or
its successors or assigns, the Collateral Agent shall execute in a
timely manner and deliver to the Guarantors a satisfaction of this
Guaranty and such instruments, documents or agreements as are necessary
or desirable to evidence the termination of this
Guaranty.

Section 12 Setoff

Upon the
occurrence and during the continuance of an Event of Default, each
Guarantied Party and each Affiliate of a Guarantied Party may, without
notice to any Guarantor and regardless of the acceptance of any
security or collateral for the payment hereof, appropriate and apply
toward the payment of all or any part of the Obligations (a) any
indebtedness due or to become due from such 

6

Guarantied Party or Affiliate to such
Guarantor and (b) any moneys, credits or other property
belonging to such Guarantor, at any time held by, or coming into, the
possession of such Guarantied Party or
Affiliate.

Section 13 No
Marshalling

Each Guarantor consents and agrees that no Guarantied
Party or Person acting for or on behalf of any Guarantied Party shall
be under any obligation to marshal any assets in favor of any Guarantor
or against or in payment of any or all of the
Obligations.

Section 14 Enforcement;
Amendments; Waivers

No delay on the part of any Guarantied Party
in the exercise of any right or remedy arising under this Guaranty, the
Credit Agreement, any other Loan Document or otherwise with respect to
all or any part of the Obligations, the Collateral or any other
guaranty of or security for all or any part of the Obligations shall
operate as a waiver thereof, and no single or partial exercise by any
such Person of any such right or remedy shall preclude any further
exercise thereof. No modification or waiver of any provision of this
Guaranty shall be binding upon any Guarantied Party, except as
expressly set forth in a writing duly signed and delivered by the
Facility Agents (in accordance with Section 11.1 (Amendments,
Waivers, Etc.) of the Credit Agreement). Failure by any Guarantied
Party at any time or times hereafter to require strict performance by
the Borrower, any Guarantor, any other guarantor of all or any part of
the Obligations or any other Person of any provision, warranty, term or
condition contained in any Loan Document now or at any time hereafter
executed by any such Persons and delivered to any Guarantied Party
shall not waive, affect or diminish any right of any Guarantied Party
at any time or times hereafter to demand strict performance thereof and
such right shall not be deemed to have been waived by any act or
knowledge of any Guarantied Party, or its respective agents, officers
or employees, unless such waiver is contained in an instrument in
writing, directed and delivered to the Borrower or such Guarantor, as
applicable, specifying such waiver, and is signed by the party or
parties necessary to give such waiver under the Credit Agreement. No
waiver of any Event of Default by any Guarantied Party shall operate as
a waiver of any other Event of Default or the same Event of Default on
a future occasion, and no action by any Guarantied Party permitted
hereunder shall in any way affect or impair any Guarantied
Party’s rights and remedies or the obligations of any Guarantor
under this Guaranty. Any determination by a court of competent
jurisdiction of the amount of any principal or interest owing by the
Borrower to a Guarantied Party shall be conclusive and binding on each
Guarantor irrespective of whether such Guarantor was a party to the
suit or action in which such determination was
made.

Section 15 Amendment and Restatement;
Effectiveness

(a) This Guaranty shall not become effective
until the Closing Date.

(b) On the Closing Date, the
Existing Guaranty shall be amended and restated in its entirety by this
Guaranty, and the Existing Guaranty shall thereafter be of no further
force and effect except to evidence (i) the incurrence by the
Guarantors of the obligations thereunder (whether or not such
obligations are contingent as of the Closing Date), (ii) the
representations and warranties made by the Guarantors prior to the
Closing Date and (iii) any action or omission performed or required to
be performed pursuant to such Existing Guaranty prior to the Closing
Date (including any failure, prior to the Closing Date, to comply with
the covenants contained in the Existing Guaranty). The amendments and
restatements set forth herein shall not cure any breach thereof or any
‘‘Default’’ or
‘‘Event of Default’’ under and as
defined in the Existing Credit Agreement existing prior to the date
hereof. This Guaranty is not in any way intended to constitute a
novation of the obligations and liabilities existing under the Existing
Credit Agreement or evidence payment of all or any portion of such
obligations and liabilities. Each of the Guarantors hereby consents to
the execution, delivery and performance of the Credit Agreement and all
of the other Loan Documents executed or delivered in connection
therewith.

(c) The terms and conditions of this Guaranty
and the Collateral Agent’s, the Lenders’ and the
Issuers’ rights and remedies under this Guaranty and the other
Loan Documents shall apply to (i) all of the Obligations incurred under
the Credit Agreement and the Notes issued thereunder and all

7

obligations of the Guarantors incurred under
the Loan Documents and (ii) all of the Obligations incurred under the
Existing Credit Agreement and the Notes issued and defined thereunder
and all obligations of the Guarantors incurred under the Loan Documents
(as defined in the Existing Credit Agreement) (the
‘‘Existing Loan
Documents’’).

(d) Each Guarantor
hereby reaffirms the Liens granted pursuant to the Existing Loan
Documents to the Existing Administrative Agent for the benefit of the
Secured Parties (as defined in the Existing Credit Agreement), which
Liens shall continue in full force and effect during the term of this
Guaranty and any renewals thereof and shall continue to secure the
Secured Obligations.

(e) On and after the Closing Date,
(i) all references to the Existing Guaranty (or to any amendment or any
amendment and restatement thereof) in the Loan Documents shall be
deemed to refer to the Existing Guaranty, as amended and restated
hereby, (ii) all references to any section (or subsection) of the
Existing Guaranty in any Loan Document (but not herein) shall be
amended to become, mutatis mutandis, references to the
corresponding provisions of this Guaranty and (iii) except as the
context otherwise provides, on or after the Closing Date, all
references to this Guaranty herein (including for purposes of
indemnification and reimbursement of fees) shall be deemed to be
reference to the Existing Guaranty, as amended and restated
hereby.

Section 16 Successors and
Assigns

This Guaranty shall be binding upon each Guarantor and
upon the successors and assigns of such Guarantors and shall inure to
the benefit of the Guarantied Parties and their respective successors
and assigns; all references herein to the Borrower and to the
Guarantors shall be deemed to include their respective successors and
assigns. The successors and assigns of the Guarantors and the Borrower
shall include, without limitation, their respective receivers, trustees
and debtors-in-possession. All references to the singular shall be
deemed to include the plural where the context so
requires.

Section 17 Representations and
Warranties; Covenants

Each Guarantor hereby (a) represents
and warrants that the representations and warranties as to it made by
the Borrower in Article IV (Representations and
Warranties) of the Credit Agreement are true and correct on each
date as required by Section 3.2(b)(i) (Conditions Precedent
to Each Loan and Letter of Credit) of the Credit Agreement and
(b) agrees to take, or refrain from taking, as the case may be,
each action necessary to be taken or not taken, as the case may be, so
that no Default or Event of Default is caused by the failure to take
such action or to refrain from taking such action by such
Guarantor.

Section 18 Governing
Law

This Guaranty and the rights and obligations of the parties
hereto shall be governed by, and construed and interpreted in
accordance with, the law of the State of New
York.

Section 19 Submission to Jurisdiction;
Service of Process

(a) Any legal action or proceeding with
respect to this Guaranty, and any other Loan Document, may be brought
in the courts of the State of New York or of the United States of
America for the Southern District of New York, and, by execution and
delivery of this Guaranty, each Guarantor hereby accepts for itself and
in respect of its property, generally and unconditionally, the
jurisdiction of the aforesaid courts. The parties hereto hereby
irrevocably waive any objection, including any objection to the laying
of venue or based on the grounds of forum non conveniens, that
any of them may now or hereafter have to the bringing of any such
action or proceeding in such respective
jurisdictions.

(b) Each Guarantor hereby irrevocably
consents to the service of any and all legal process, summons, notices
and documents in any suit, action or proceeding brought in the United
States of America arising out of or in connection with this Guaranty or
any other Loan Document by the mailing (by registered or certified
mail, postage prepaid) or delivering of a copy of such process to such
Guarantor in the care of the Borrower at the Borrower’s address
specified in Section 11.8 (Notices, Etc.) of the Credit
Agreement. Each Guarantor agrees that a final judgment in any such

8

action or proceeding shall be conclusive and
may be enforced in other jurisdictions by suit on the judgment or in
any other manner provided by law.

(c) Nothing contained in
this Section 19 (Submission to Jurisdiction; Service of
Process) shall affect the right of the Collateral Agent or any
other Guarantied Party to serve process in any other manner permitted
by law or commence legal proceedings or otherwise proceed against a
Guarantor in any other jurisdiction.

(d) If for the
purposes of obtaining judgment in any court it is necessary to convert
a sum due hereunder in Dollars into another currency, the parties
hereto agree, to the fullest extent they may effectively do so, that
the rate of exchange used shall be that at which in accordance with
normal banking procedures the Collateral Agent could purchase Dollars
with such other currency at the spot rate of exchange quoted by the
Collateral Agent at 11:00 a.m. (New York time) on the Business
Day preceding that on which final judgment is given, for the purchase
of Dollars, for delivery two Business Days
thereafter.

Section 20 Waiver of Judicial
Bond

To the fullest extent permitted by applicable law, the
Guarantor waives the requirement to post any bond that otherwise may be
required of any Guarantied Party in connection with any judicial
proceeding to enforce such Guarantied Party’s rights to payment
hereunder, security interest in or other rights to the Collateral or in
connection with any other legal or equitable action or proceeding
arising out of, in connection with, or related to this the Loan
Documents to which it is a
party.

Section 21 Certain Terms

The
following rules of interpretation shall apply to this Guaranty:
(a) the terms ‘‘herein,’’
‘‘hereof,’’
‘‘hereto’’ and
‘‘hereunder’’ and similar terms
refer to this Guaranty as a whole and not to any particular Article,
Section, subsection or clause in this Guaranty, (b) unless
otherwise indicated, references herein to an Exhibit, Article, Section,
subsection or clause refer to the appropriate Exhibit to, or Article,
Section, subsection or clause in this Guaranty and (c) the term
‘‘including’’ means
‘‘including without limitation’’
except when used in the computation of time periods.

Section 22 Waiver of Jury
Trial

EACH OF THE COLLATERAL AGENT, THE OTHER
GUARANTIED PARTIES AND EACH GUARANTOR IRREVOCABLY WAIVES TRIAL BY JURY
IN ANY ACTION OR PROCEEDING WITH RESPECT TO THIS GUARANTY AND ANY OTHER
LOAN
DOCUMENT.

Section 23 Notices

Any
notice or other communication herein required or permitted shall be
given as provided in Section 11.8 (Notices, Etc.) of the
Credit Agreement and, in the case of any Guarantor, to such Guarantor
in care of the Borrower.

Section 24 Severability

Wherever
possible, each provision of this Guaranty shall be interpreted in such
manner as to be effective and valid under applicable law, but if any
provision of this Guaranty shall be prohibited by or invalid under such
law, such provision shall be ineffective to the extent of such
prohibition or invalidity without invalidating the remainder of such
provision or the remaining provisions of this
Guaranty.

Section 25 Additional
Guarantors

Each of the Guarantors agrees that, if, pursuant to
Section 7.11(a) (Additional Personal Property Collateral and
Guaranties) of the Credit Agreement, Group or the Borrower shall be
required to cause any Subsidiary thereof that is not a Guarantor to
become a Guarantor hereunder, or if for any reason Group or the
Borrower desires any such Subsidiary to become a Guarantor hereunder,
such Subsidiary shall execute and deliver to the Collateral Agent a
Guaranty Supplement in substantially the form of Exhibit A
(Guaranty Supplement) attached hereto and shall thereafter for all
purposes be a party hereto and have the same rights, benefits and
obligations as a Guarantor party hereto on the Closing
Date.

9

Section 26 Collateral

Each
Guarantor hereby acknowledges and agrees that its obligations under
this Guaranty are secured pursuant to the terms and provisions of the
Collateral Documents executed by it in favor of the Collateral Agent,
for the benefit of the Secured Parties, and covenants that it shall not
grant any Lien with respect to its Property in favor, or for the
benefit, of any Person other than the Collateral Agent, for the benefit
of the Secured Parties except as otherwise permitted by Section 8.2
(Liens, etc.) of the Credit
Agreement.

Section 27 Costs and
Expenses

In accordance with the provisions of Section 11.3
(Costs and Expenses) of the Credit Agreement, each Guarantor agrees
to pay or reimburse the Collateral Agent and each of the other
Guarantied Parties upon demand for all out-of-pocket costs and
expenses, including reasonable attorneys’ fees (including
allocated costs of internal counsel and costs of settlement), incurred
by the Collateral Agent and such other Guarantied Parties in enforcing
this Guaranty against such Guarantor or any security therefor or
exercising or enforcing any other right or remedy available in
connection herewith or
therewith.

Section 28 Waiver of
Consequential Damages

EACH GUARANTOR HEREBY IRREVOCABLY
AND UNCONDITIONALLY WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY
LAW, ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER ANY SPECIAL, EXEMPLARY,
PUNITIVE OR CONSEQUENTIAL DAMAGE IN ANY LEGAL ACTION OR PROCEEDING IN
RESPECT OF THIS GUARANTY OR ANY OTHER LOAN
DOCUMENT.

Section 29 Entire
Agreement

This Guaranty, taken together with all of the other
Loan Documents executed and delivered by the Guarantors, represents the
entire agreement and understanding of the parties hereto and supersedes
all prior understandings, written and oral, relating to the subject
matter hereof. This Guaranty and each other Loan Document are subject
to the terms and conditions set forth in the Intercreditor Agreement in
all respects and, in the event of any conflict between the
Intercreditor Agreement, this Guaranty or any other Loan Document, the
terms of the Intercreditor Agreement shall
govern.

Section 30 Counterparts

(a) This
Guaranty may be executed in any number of separate counterparts and by
different parties in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement. Signature pages
may be detached from multiple counterparts and attached to a single
counterpart so that all signature pages are attached to the same
document. Delivery of an executed counterpart by facsimile transmission
or electronic mail shall be effective as delivery of a manually
executed counterpart.

[SIGNATURE PAGES
FOLLOW]

10

IN
WITNESS WHEREOF, this Guaranty has been duly executed by the
Guarantors as of the day and year first set forth
above.

		THE WARNACO GROUP INC.,

as
Guarantor

		By: /s/ Lawrence R.
Rutkowski

         Name: Lawrence R. Rutkowski

        Title: Chief Financial Officer

		184
BENTON STREET INC.

A.B.S. CLOTHING COLLECTION, INC.

AUTHENTIC
FITNESS ON-LINE, INC.

CALVIN KEIN JEANSWEAR COMPANY

CCC
ACQUISITION CORP.

C. F. HATHAWAY COMPANY

CKJ HOLDINGS,
INC.

DESIGNER HOLDINGS LTD.

GREGORY STREET, INC.

JEANSWEAR
HOLDINGS, INC.

KAI JAY MANUFACTURING COMPANY

OCEAN PACIFIC
APPAREL CORP.

OUTLET STORES, INC.

UBERTECH PRODUCTS,
INC.

WARNACO MEN'S SPORTSWEAR INC.

WARNACO PUERTO RICO,
INC.

WARNACO RETAIL INC.

WARNACO SOURCING INC.

WARNACO
SWIMWEAR INC.

WARNACO SWIMWEAR PRODUCTS INC.,

MYRTLE AVENUE,
INC.,

CKU.COM INC.,

WARNACO U.S., INC.,

as
Guarantors

		/s/ Lawrence R. Rutkowski

       Name: Lawrence R. Rutkowski
        Title:
Treasurer

ACKNOWLEDGED AND
AGREED

as of the date first above written:
CITICORP NORTH AMERICA, INC.

as Collateral
Agent

By: /s/ Keith R.
Gerding

        Name: Keith R.
Gerding
        Title: Vice
PresidentEXECUTION
VERSION 

AMENDED AND RESTATED PLEDGE AND
SECURITY AGREEMENT

DATED AS OF JANUARY 
31,  2006

among

WARNACO
INC.,

as a
Grantor

AND

Each Other Grantor From
Time to Time Party
Hereto

AND

CITICORP NORTH
AMERICA, INC.

as Collateral
Agent

WEIL, GOTSHAL & MANGES
LLP

 767 FIFTH AVENUE

NEW YORK, NEW YORK
10153-0119 

TABLE
OF
CONTENTS

											
	 		 		Page
	ARTICLE I.		Defined
Terms		 	2	 
	Section
1.1		Definitions		 	2	 
	ARTICLE
II.		Grant of Security
Interest		 	7	 
	Section
2.1		Collateral		 	7	 
	Section
2.2		Grants of Security Interests in
Collateral		 	8	 
	Section 2.3		Cash
Collateral Accounts		 	9	 
	ARTICLE
III.		Representations and
Warranties		 	9	 
	Section
3.1		Title; No Other
Liens		 	9	 
	Section
3.2		Perfection and
Priority		 	10	 
	Section
3.3		Jurisdiction of Organization; Chief Executive
Office		 	10	 
	Section
3.4		Inventory and
Equipment		 	10	 
	Section
3.5		Pledged
Collateral		 	10	 
	Section
3.6		Deposit Accounts; Securities
Accounts		 	11	 
	Section
3.7		Accounts		 	11	 
	Section
3.8		Intellectual
Property		 	11	 
	Section
3.9		Commercial Tort
Claims		 	12	 
	ARTICLE
IV.		Covenants		 	12	 
	Section
4.1		Generally		 	12	 
	Section
4.2		Maintenance of Perfected Security Interest; Further
Documentation		 	12	 
	Section
4.3		Changes in Locations, Name,
Etc.		 	13	 
	Section 4.4		Pledged
Collateral		 	13	 
	Section
4.5		Delivery of Instruments and Chattel
Paper		 	14	 
	Section
4.6		Intellectual
Property		 	14	 
	Section 4.7		Cash
Management; Deposit
Accounts		 	16	 
	Section
4.8		Vehicles		 	17	 
	Section
4.9		Payment of
Obligations		 	17	 
	Section
4.10		Notice of Commercial Tort
Claims		 	17	 
	ARTICLE
V.		Remedial
Provisions		 	17	 
	Section
5.1		Code and Other
Remedies		 	17	 
	Section
5.2		Accounts and Payments in Respect of General
Intangibles		 	18	 
	Section
5.3		Pledged
Collateral		 	19	 
	Section
5.4		Proceeds to be Turned Over To Collateral
Agent		 	20	 
	Section
5.5		Registration
Rights		 	20	 
	Section
5.6		Deficiency		 	21	 
	ARTICLE
VI.		The Collateral
Agent		 	21	 
	Section
6.1		Collateral Agent’s Appointment as
Attorney-in-Fact		 	21	 
	Section
6.2		Duty of Collateral
Agent		 	22	 
	Section
6.3		Authorization of Financing
Statements		 	22	 
	Section
6.4		Authority of Collateral
Agent		 	23	 
	ARTICLE
VII.		Miscellaneous		 	23	 
	Section
7.1		Amendments in
Writing		 	23	 
	Section
7.2		Notices		 	23	 
	Section
7.3		No Waiver by Course of Conduct; Cumulative
Remedies		 	23	 
	Section
7.4		Amendment and Restatement;
Effectiveness		 	24	 
	Section
7.5		Successors and
Assigns		 	24	 
	Section
7.6		Counterparts		 	24	 
	Section
7.7		Severability		 	24	 
	Section
7.8		Section
Headings		 	25	 
	Section
7.9		Entire
Agreement		 	25	 
	Section
7.10		Governing Law		 	25	 
	Section
7.11		Additional
Grantors		 	25	 
	Section
7.12		Release of
Collateral		 	25	 
	Section
7.13		Reinstatement		 	26	 
	

1

TABLE
OF
CONTENTS
 (continued)

 ANNEXES AND
SCHEDULES 

											
	 		 		Page
	ANNEX 1-A		Form of
Blocked Account Letter		 	 	 
	ANNEX
1-B		Form of Restricted Account
Letter		 	 	 
	ANNEX 2		Form of
Control Account
Agreement		 	 	 
	ANNEX 3		Form
of Pledge Amendment		 	 	 
	ANNEX
4		Form of Joinder
Agreement		 	 	 
	ANNEX 5		Form of
Short Form Copyright Security
Agreement		 	 	 
	ANNEX 6		Form
of Short Form Patent Security Agreement		 	 	 
	ANNEX 7		Form of Short Form
Trademark Security
Agreement		 	 	 
	SCHEDULE 1		Jurisdiction
of Organization; Principal Executive
Office		 	 	 
	SCHEDULE 2		Pledged
Collateral		 	 	 
	SCHEDULE 3		Filings		 	 	 
	SCHEDULE 4		Location
of Inventory and
Equipment		 	 	 
	SCHEDULE 5		Intellectual
Property		 	 	 
	SCHEDULE 6		Commercial
Tort Claims		 	 	 
	SCHEDULE
7		Deposit Accounts and Securities
Accounts		 	 	 
	

2

THIS
AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT IS SUBJECT TO THE
TERMS AND PROVISIONS OF THE INTERCREDITOR AGREEMENT, DATED AS OF
JANUARY 31, 2006 (AS SUCH AGREEMENT MAY BE AMENDED, AMENDED AND
RESTATED, SUPPLEMENTED OR OTHERWISE MODIFIED FROM TIME, THE
‘‘INTERCREDITOR
AGREEMENT’’), AMONG CITICORP NORTH AMERICA, INC.,
AS REVOLVING FACILITY AGENT FOR THE REVOLVING CREDIT LENDERS, CITICORP
NORTH AMERICA, INC., AS TERM FACILITY AGENT FOR THE TERM LOAN LENDERS,
CITICORP NORTH AMERICA, INC., AS COLLATERAL AGENT FOR THE SECURED
PARTIES, WARNACO INC. AND EACH OTHER GRANTOR

THIS
AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT (this
‘‘Agreement’’), dated as of
January  31,  2005, by WARNACO INC., a
Delaware Corporation (the
‘‘Borrower’’) and each of
the other entities listed on the signature pages hereof or that becomes
a party hereto pursuant to Section 7.11 (Additional Grantors)
(each a ‘‘Grantor’’ and,
collectively, the
‘‘Grantors’’), in favor
of CITICORP NORTH AMERICA, INC.
(‘‘CNAI’’), as collateral
agent for the Secured Parties (as defined below) (in such capacity, the
‘‘Collateral Agent’’).

W I T N E S S E T H :

WHEREAS,
on June 11, 2001, each of the Grantors filed a voluntary
petition for relief (collectively, the
‘‘Cases’’) under chapter 11
of the Bankruptcy Code with the United States Bankruptcy Court for the
Southern District of New York (the ‘‘Bankruptcy
Court’’);

WHEREAS, on
October  1,  2002, the Grantors filed a Plan of
Reorganization (as amended, supplemented or otherwise modified from
time to time prior to the date hereof, the ‘‘Plan
of Reorganization’’) and related Disclosure
Statement with the Bankruptcy Court in the Cases;

WHEREAS, pursuant to the Plan of Reorganization, the
Borrower, Group, the lenders and issuers party thereto from time to
time, CNAI as administrative agent and collateral agent (in such
capacity, the ‘‘Existing
Agent’’), JPMorgan Chase Bank, N.A., as
syndication agent (in such capacity, the
‘‘Syndication Agent’’), and
Bank of America, NA, The CIT Group/Commercial Services, Inc., and
Wachovia Capital Finance Corporation (Central) f/k/a Congress Financial
Corporation (Central), as co-documentation agents (in such capacity,
collectively, the ‘‘Co-documentation
Agents’’) are parties to the Senior Secured
Revolving Credit Agreement, dated as of February  4,  2003
(as amended, supplemented or otherwise modified from time to time prior
to the date hereof, the ‘‘Existing Credit
Agreement’’);

WHEREAS, the
Borrower has requested, and the other parties to the Credit Agreement
(as defined below) have agreed, that the Existing Credit Agreement be
amended and restated, among other things, for the Borrower to borrow a
Term Loan in the aggregate principal amount of
$180,000,000;

WHEREAS, the Borrower, Group, the
lenders and issuers party thereto from time to time, CNAI, as
administrative agent for the Revolving Credit Lenders and the Issuers
(in such capacity, the ‘‘Revolving Facility
Agent’’), as administrative agent for the Term
Loan Lenders (in such capacity, the ‘‘Term
Facility Agent’’ and together with the Revolving
Facility Agent, collectively, in such capacities, the
‘‘Administrative Agents’’)
and as Collateral Agent (together with the Administrative Agents, the
‘‘Agents’’), the Syndication
Agent and the Co-documentation Agents have entered into the Amended and
Restated Credit Agreement, dated as of January  31,  2006
(as amended, supplemented or otherwise modified from time to time, the
‘‘Credit Agreement’’) which
amends and restates the Existing Credit Agreement in its
entirety;

WHEREAS, the Grantors other than the
Borrower are party to the Guaranty pursuant to which they have
guaranteed the Obligations of the Borrower under the Credit
Agreement;

WHEREAS, it is a condition precedent to
the effectiveness of the Credit Agreement that the Grantors shall have
executed and delivered this Agreement to the Collateral
Agent;

WHEREAS, this Agreement, on the terms and
subject to the conditions set forth herein, shall amend and restate, in
its entirety, the pledge and security agreement dated as of
February  4,  2003 (as 

amended, supplemented or otherwise modified
from time to time prior to the date hereof, the
‘‘Existing Pledge and Security
Agreement’’) entered into by the Grantors in
favor of the Existing Administrative Agent;

WHEREAS,
(i) each Grantor hereby reaffirms the Liens granted pursuant to
the Loan Documents (as defined in the Existing Credit Agreement) to the
Existing Agent for the benefit of the Secured Parties (as defined in
the Existing Credit Agreement), which Liens shall continue in full
force and effect during the term of this Agreement and any renewals
thereof and shall continue to secure the Secured Obligations and (ii)
from and after the Closing Date, the Existing Pledge and Security
Agreement shall be of no further force or effect, except to evidence
the Liens granted thereunder prior to the Closing Date;
and

WHEREAS, each Grantor will receive substantial
direct and indirect benefits from the making of the Loans, the issuance
of the Letters of Credit and the granting of the other financial
accommodations to the Borrower under the Credit
Agreement;

NOW, THEREFORE, in consideration of the
premises and to induce the Lenders, the Issuers, the Administrative
Agents and the Collateral Agent to enter into the Credit Agreement and
to induce the Lenders and the Issuers to make their respective
extensions of credit to the Borrower thereunder, each Grantor hereby
agrees with the Collateral Agent as follows:

    ARTICLE
I.    DEFINED
TERMS

Section 1.1   Definitions

(a) Unless
otherwise defined herein, terms defined in the Credit Agreement and
used herein have the meanings given to them in the Credit
Agreement.

(b) Terms used herein without
definition that are defined in the UCC have the meanings given to them
in the UCC, including the following terms (which are capitalized
herein):

‘‘Account
Debtor’’

‘‘Account’’

‘‘Certificated
Security’’

‘‘Chattel
Paper’’

‘‘Commercial
Tort
Claim’’

‘‘Commodity
Account’’

‘‘Control
Account’’

‘‘Deposit
Account’’

‘‘Documents’’

‘‘Entitlement
Holder’’

‘‘Entitlement
Order’’

‘‘Equipment’’

‘‘Financial
Asset’’

‘‘General
Intangibles’’

‘‘Goods’’

‘‘Instruments’’

‘‘Inventory’’

‘‘Investment
Property’’

‘‘Letter-of-Credit
Right’’

‘‘Proceeds’’

‘‘Securities
Account’’

‘‘Securities
Intermediary’’

‘‘Security’’

‘‘Security
Entitlement’’

‘‘Supporting
Obligation’’ 

(c) The following
terms shall have the following
meanings:

‘‘Additional Pledged
Collateral’’ means any Pledged Collateral
acquired by any Grantor after the date hereof and in which a security
interest is granted pursuant to Section 2.2 (Grants of Security

2

Interests in Collateral), including, to
the extent a security interest is granted therein pursuant to
Section 2.2 (Grants of Security Interests in Collateral),
(i) all Stock and Stock Equivalents of any Person that are
acquired by any Grantor after the date hereof, together with all
certificates, instruments or other documents representing any of the
foregoing and all Security Entitlements of any Grantor in respect of
any of the foregoing, (ii) all additional Indebtedness from time
to time owed to any Grantor by any obligor on the Pledged Debt
Instruments and the Instruments evidencing such Indebtedness and
(iii) all interest, cash, Instruments and other property or
Proceeds from time to time received, receivable or otherwise
distributed in respect of or in exchange for any of the foregoing.
‘‘Additional Pledged
Collateral’’ may be General Intangibles
(including Intellectual Property), Instruments  or Investment
Property.

‘‘Agents’’
has the meaning specified in the recitals to this Agreement.

‘‘Agreement’’
means this Amended and Restated Pledge and Security
Agreement.

‘‘Blocked Account
Bank’’ means a financial institution
approved (such approval not to be unreasonably withheld) by the
applicable Administrative Agent and with respect to which a Grantor has
delivered to the Collateral Agent an executed Blocked Account
Letter.

‘‘Blocked Account
Letter’’ means a letter agreement,
substantially in the form of Annex I-A (Form of Blocked Account
Letter) to this Agreement (with such changes thereto as may be
agreed to by the applicable Administrative Agent), executed by the
relevant Grantor and the Collateral Agent and acknowledged and agreed
to by the relevant Blocked Account
Bank.

‘‘Cash Collateral
Account’’ means any Deposit Account or
Securities Account that is (a) established by the applicable
Administrative Agent from time to time in its sole discretion to
receive cash and Cash Equivalents (or purchase cash or Cash Equivalents
with funds received) from the Grantors or their Subsidiaries or
Affiliates or Persons acting on their behalf pursuant to the Loan
Documents, (b) with such depositaries and securities
intermediaries as the applicable Administrative Agent may determine in
its sole discretion, (c) in the name of the Collateral Agent
(although such account may also have words referring to the Borrower
and the account’s purpose), (d) under the control of the
Collateral Agent and (e) in the case of a Securities Account,
with respect to which the Collateral Agent shall be the Entitlement
Holder and the only Person authorized to give Entitlement Orders with
respect thereto, except as otherwise provided in Section
2.3.

‘‘Collateral’’
means, collectively, the Revolving Priority Collateral and the
Specified IP Collateral.

‘‘Collateral
Agent’’ shall include, in addition to the
Collateral Agent referred to in the recitals hereto, any successors and
assigns to the Collateral Agent permitted under the Intercreditor
Agreement and means (i) for purposes of Sections 2.2(a) and (d), the
‘‘Collateral
Agent’’ in its separate individual capacity
as collateral agent for the benefit of the Revolving Credit Secured
Parties with respect to the Revolving Credit Secured Obligations, (ii)
for purposes of Sections 2.2(b) and (c), the
‘‘Collateral
Agent’’ in its separate individual capacity
as collateral agent for the benefit of the Term Loan Secured Parties
with respect to the Term Loan Secured Obligations and (iii) for
purposes of all other provisions in this Agreement, the
‘‘Collateral
Agent’’ (x) in its separate individual
capacity as collateral agent for the benefit of the Revolving Credit
Secured Parties with respect to the Revolving Credit Secured
Obligations, (y) in its separate individual capacity as collateral
agent for the benefit of the Term Loan Secured Parties with respect to
the Term Loan Secured Obligations and (z) in its separate individual
capacity as collateral agent for the benefit of the Secured Parties
with respect to the Secured
Obligations

‘‘Control Account
Agreement’’ means a letter agreement,
substantially in the form of Annex II (Form of Control
Account Agreement) (with such changes as may be agreed to by the
applicable Administrative Agent), executed by the relevant Grantor, the
Collateral Agent and the relevant Approved Securities Intermediary (as
defined in Annex 2 (Form of Control Account Agreement)
hereto.

‘‘Copyright
Licenses’’ means any agreement, whether
written or oral, providing for the grant by or to any Grantor of any
right under any Copyright, including the grant of any right to use,
copy, publicly perform, display, create derivative works of,
manufacture, distribute, exploit or sell materials derived from any
Copyright.

3

‘‘Copyrights’’
means (a) all copyrights arising under the laws of the United
States, any other country or any political subdivision thereof, whether
registered or unregistered and whether published or unpublished, all
registrations and recordings thereof and all applications for
registration or recording in connection therewith, including all
registrations, recordings and applications for registration or
recording in the United States Copyright Office or in any foreign
counterparts thereof, and (b) the right to obtain all renewals,
reversions and extensions
thereof.

‘‘Discharge of Lender
Claims’’ shall mean, the payment in full in
cash of the principal of, interest and premium, if any, on all Secured
Obligations and, with respect to Hedging Obligations or letters of
credit outstanding thereunder, delivery of cash collateral or backstop
letters of credit in respect thereof in compliance with the terms
hereof, in each case after or concurrently with termination of all
Commitments thereunder, and payment in full in cash of any other
Secured Obligations that are due and payable at or prior to the time
such principal and interest are
paid.

‘‘Excluded
Equity’’ means, collectively, any Voting
Stock of any direct Subsidiary of any Grantor, which Subsidiary is a
Foreign Person, in excess of 65% of the total outstanding Voting
Stock of such Subsidiary. For the purposes of this definition,
‘‘Voting Stock’’
means, as to any issuer, the issued and outstanding shares of each
class of capital stock or other ownership interests of such issuer
entitled to vote (within the meaning of Treasury Regulations
§ 1.956-2(c)(2)).

‘‘Excluded
Property’’ means, collectively, (i) Excluded
Equity, (ii) any permit, lease, license, contract, instrument or other
agreement held by any Grantor that validly prohibits the creation by
such Grantor of a Lien thereon, or any permit, lease, license,
contract, instrument or other agreement held by any Grantor to the
extent that any Requirement of Law applicable thereto prohibits the
creation of a Lien thereon, but only, in each case, to the extent, and
for so long as, such prohibition is not removed, terminated or rendered
unenforceable or otherwise deemed ineffective by the UCC or any other
Requirement of Law; and (iii) any Equipment owned by any Grantor that
is Purchase Money Collateral (as defined in the UCC) or subject to a
Capital Lease if the contract or other agreement in which such Lien is
granted (or in the documentation providing for such Capital Lease)
prohibits or requires the consent of any Person other than any Grantor
as a condition to the creation of any other Lien on such Equipment;
provided, however, ‘‘Excluded
Property’’ shall not include any Proceeds,
substitutions or replacements of Excluded Property (unless such
Proceeds, substitutions or replacements would constitute Excluded
Property).

‘‘First Priority Revolving
Priority Collateral Liens’’ has the meaning
specified in Section 2.2(a) (Grants of Security Interests in
Collateral).

‘‘First Priority
Specified IP Collateral Liens’’ has the
meaning specified in Section 2.2(c) (Grants of Security Interests in
Collateral).

‘‘Foreign
Entity’’ means, with respect to any Grantor, any
corporation, partnership, limited liability company or other business
entity (i) which is organized under the laws of a jurisdiction other
than a state of the United States or the District of Columbia and (ii)
of which an aggregate of more than 50% of the outstanding
classes of capital stock entitled to vote is, at the time, owned by
such Grantor or one or more
Grantors.

‘‘Foreign
Person’’ means any Person not organized
under the laws of any state of the United States of America or the
District of
Columbia.

‘‘Grantor’’
has the meaning specified in the recitals to this Agreement.

‘‘Hedging
Obligations’’ means all obligations of any
Person under any Hedging
Contract.

‘‘Intellectual
Property’’ means, collectively, (a) all
right, title and interest of any Grantor in intellectual property,
whether arising under United States, multinational or foreign laws or
otherwise, including Copyrights, Copyright Licenses, Patents, Patent
Licenses, Trademarks, Trademark Licenses, trade secrets, Internet
domain names, Websites, advertising rights, rights in designs,
including registrations thereof, and rights in data, and (b) all rights
to income, royalties, proceeds and damages now or hereafter due and/or
payable under and with respect thereto, including all rights to sue and
recover at law or in equity for any past, present and future
infringement, misappropriation, dilution, violation or other impairment
thereof.

4

‘‘Intercompany
Note’’ means any promissory note evidencing
loans made by any Grantor or any of its Subsidiaries to any of its
Subsidiaries or another
Grantor.

‘‘Intercreditor
Agreement’’ has the meaning specified in the
legend to this
Agreement.

‘‘LLC’’
means each limited liability company in which a Grantor has an equity
interest, including those set forth on Schedule 2 (Pledged
Collateral).

‘‘LLC
Agreement’’ means each operating agreement
with respect to a LLC, as each agreement has heretofore been, and may
hereafter be, amended, restated, supplemented or otherwise modified
from time to time.

‘‘Material
Intellectual Property’’ means Intellectual
Property owned by or licensed to a Grantor and material to any
Grantor’s
business.

‘‘Partnership’’
means each partnership in which a Grantor has an equity interest,
including those set forth on Schedule 2 (Pledged
Collateral).

‘‘Partnership
Agreement’’ means each partnership agreement
governing a Partnership, as each such agreement has heretofore been,
and may hereafter be, amended, restated, supplemented or otherwise
modified.

‘‘Patents’’
means (a) all patents of the United States or any other country
or patent rights arising under multinational laws, (b) all
applications for patents of the United States or any other country or
patent rights arising under multinational laws and (c) all
rights to obtain any reissues, extensions, divisions, continuations and
continuations-in-part of the
foregoing.

‘‘Patent
License’’ means all agreements, whether
written or oral, providing for the grant by or to any Grantor of any
right to manufacture, have manufactured, use, import, lease, sell or
offer for sale any product, design or process covered in whole or in
part by a Patent.

‘‘Pledged Certificated
Stock’’ means all Certificated Securities
and any other Stock and Stock Equivalent of a Person evidenced by a
certificate, Instrument or other equivalent document, in each case
owned by any Grantor, including all Stock listed on
Schedule 2 (Pledged Collateral),but excluding Excluded
Equity.

‘‘Pledged
Collateral’’ means, collectively, the
Pledged Stock, Pledged Debt Instruments, any other Investment Property
of any Grantor (other than Pledged Stock, Pledged Debt Instruments and
other Investment Property whose value, in the aggregate, does not
exceed $1,000,000), all chattel paper, certificates or other
Instruments representing any of the foregoing and all Security
Entitlements of any Grantor in respect of any of the foregoing. Pledged
Collateral may be General Intangibles, Instruments or Investment
Property.

‘‘Pledged Debt
Instruments’’ means all right, title and
interest of any Grantor in Instruments evidencing any Indebtedness owed
to such Grantor, including all Indebtedness described on
Schedule 2 (Pledged Collateral), issued by the obligors
named therein.

‘‘Pledged
Stock’’ means all Pledged Certificated Stock
and all Pledged Uncertificated
Stock.

‘‘Pledged Uncertificated
Stock’’ means any Stock or Stock Equivalent
of any Person that is not a Pledged Certificated Stock (excluding
Excluded Equity), including all right, title and interest of any
Grantor as a limited or general partner in any Partnership or as a
member of any LLC and all right, title and interest of any Grantor in,
to and under any Partnership Agreement or LLC Agreement to which it is
a party.

‘‘Restricted
Account’’ means a deposit account maintained
by any Grantor with a Restricted Account Bank which account is the
subject of an effective Restricted Account Letter, and includes all
monies on deposit therein and all certificates and instruments, if any,
representing or evidencing such Restricted
Account.

‘‘Restricted Account
Bank’’ means a financial institution
selected or approved (such approval not to be unreasonably withheld) by
the applicable Administrative Agent and with respect to which a Grantor
has delivered an executed Restricted Account Letter.

5

‘‘Restricted
Account Letter’’ means a letter agreement,
substantially in the form of Annex I-B (Form of Restricted Account
Letter) or as otherwise acceptable to the applicable Administrative
Agent, executed by the relevant
Grantor.

‘‘Revolving Credit Secured
Obligations’’ means, collectively, (a) the
Obligations arising under the Revolving Credit Facility and (b) the
obligations of each Loan Party related thereto under the Guaranty and
the other Loan Documents to which it is a
party.

‘‘Revolving Credit Secured
Party’’ means the Revolving Facility Agent
and each holder of any Revolving Credit Secured
Obligations.

‘‘Revolving Facility
Agent’’ has the meaning specified in the
recitals hereto.

‘‘Revolving Priority
Collateral’’ has the meaning specified in
Section 2.1(a) (Collateral).

‘‘Second Priority Revolving Priority
Collateral Liens’’ has the meaning specified
in Section 2.2(b) (Grants of Security Interests in
Collateral).

‘‘Second Priority
Specified IP Collateral Liens’’ has the
meaning specified in Section 2.2(d) (Grants of Security Interests in
Collateral).

‘‘Securities
Act’’ means the Securities Act of 1933, as
amended.

‘‘Secured
Parties’’ has the meaning specified in the
Credit Agreement.

‘‘Specified IP
Collateral’’ has the meaning specified in
Section 2.1(b) (Collateral).

‘‘Term
Facility Agent’’ has the meaning specified
in the recitals hereto.

‘‘Term Loan
Secured Obligations’’ means all Secured
Obligations (other than the Revolving Credit Secured
Obligations).

‘‘Term Loan Secured
Party’’ means the Term Facility Agent and
each holder of any Term Loan Secured
Obligations.

‘‘Third Party Intellectual
Property Rights’’ means any right, title or
interest of any Person under patent, copyright, trademark or trade
secret law or any other statutory provision or common law doctrine
relating to intellectual property or proprietary
rights.

‘‘Trademark
License’’ means any agreement, whether
written or oral, providing for the grant by or to any Grantor of any
right under any
Trademark.

‘‘Trademarks’’
means (a) all trademarks, trade names, corporate names, company
names, business names, fictitious business names, trade styles, trade
dress, service marks, logos and other source or business identifiers,
and, in each case, all goodwill associated therewith, whether now
existing or hereafter adopted or acquired, all registrations and
recordings thereof and all applications for registration or recording
in connection therewith, in each case whether in the United States
Patent and Trademark Office or in any similar office or agency of the
United States, any State thereof or any other country or any political
subdivision thereof and all common-law rights related thereto, and
(b) the right to obtain all renewals
thereof.

‘‘UCC’’
means the Uniform Commercial Code as from time to time in effect in the
State of New York; provided, however, that, in the event
that, by reason of mandatory provisions of law, any of the attachment,
perfection or priority of the Collateral Agent’s and the Secured
Parties’ security interest in any Collateral is governed by the
Uniform Commercial Code as in effect in a jurisdiction other than the
State of New York, the term
‘‘UCC’’ (as it
applies to such security interest) shall mean the Uniform Commercial
Code as in effect in such other jurisdiction for purposes of the
provisions hereof relating to such attachment, perfection or priority
and for purposes of definitions related to such
provisions.

‘‘Vehicles’’
means all vehicles covered by a certificate of title law of any
state.

Certain Other Terms

(d) In
this Agreement, in the computation of periods of time from a specified
date to a later specified date, the word
‘‘from’’ means
‘‘from and including’’ and the words
‘‘to’’ and
‘‘until’’ each mean
‘‘to but excluding’’ and the word
‘‘through’’ means
‘‘to and
including.’’

6

(e) The terms
‘‘herein,’’
‘‘hereof,’’
‘‘hereto’’ and
‘‘hereunder’’ and similar terms
refer to this Agreement as a whole and not to any particular Article,
Section, subsection or clause in this
Agreement.

(f) References herein to an
Annex, Schedule, Article, Section, subsection or clause refer to the
appropriate Annex or Schedule to, or Article, Section, subsection or
clause in this Agreement.

(g) The
meanings given to terms defined herein shall be equally applicable to
both the singular and plural forms of such
terms.

(h) Where the context requires,
provisions relating to any Collateral, when used in relation to a
Grantor, shall refer to such Grantor’s Collateral or any
relevant part thereof.

(i) Any reference
in this Agreement to a Loan Document shall include all appendices,
exhibits and schedules thereto, and, unless specifically stated
otherwise all amendments, restatements, supplements or other
modifications thereto, and as the same may be in effect at any time
such reference becomes
operative.

(j) The term
‘‘including’’ means
‘‘including without limitation’’
except when used in the computation of time periods.

(k) The terms
‘‘Lender,’’
‘‘Issuer,’’
‘‘Administrative Agent,’’
‘‘Revolving Facility Agent,’’
‘‘Term Facility Agent,’’
‘‘Collateral Agent’’ and
‘‘Secured Party’’ include their
respective successors.

(l) References in
this Agreement to any statute shall be to such statute as amended or
modified and in effect from time to time.

    ARTICLE
II.    GRANT OF SECURITY
INTEREST

Section
2.1    Collateral

(a) For
the purposes of this Agreement, all of the following property now owned
or at any time hereafter acquired by a Grantor or in which a Grantor
now has or at any time in the future may acquire any right, title or
interests (other than, in each case, Excluded Property) is collectively
referred to as the ‘‘Revolving Priority
Collateral’’:

			
		(i) 	all
Accounts;

			
		(ii) 	all Chattel
Paper;

			
		(iii) 	all Deposit
Accounts;

			
		(iv) 	all
Documents;

			
		(v) 	all
Equipment;

			
		(vi) 	all General
Intangibles, other than General Intangibles specified in Section
2.1(b) (Collateral) as ‘‘Specified IP
Collateral’’;

			
		(vii) 	all
Instruments;

			
		(viii) 	all
Inventory;

			
		(ix) 	all
Investment Property;

			
		(x) 	all Letter-of-Credit
Rights;

			
		(xi) 	all
Vehicles;

			
		(xii) 	the
Commercial Tort Claims described on Schedule  6 (Commercial
Tort Claims) and on any supplement thereto received by the
Collateral Agent pursuant to Section 4.10 (Notice of Commercial Tort
Claims);

			
		(xiii) 	all
books and records pertaining to the other property described in this
Section
2.1(a);

			
		(xiv) 	all other
goods and personal property of such Grantor, whether tangible or
intangible and wherever located, other than any such goods or personal
property specified in Section 2.1(b) (Collateral) as
‘‘Specified IP
Collateral’’; and

7

			
		(xv) 	to
the extent not otherwise included, all Proceeds of any or all of the
foregoing.

(b) For purposes of this
Agreement, except to the extent specified in Section 2.1(a)
(Collateral) as ‘‘Revolving Priority
Collateral’’, all of the following property
now owned or at any time hereafter acquired by a Grantor or in which a
Grantor now has or at any time in the future may acquire any right,
title or interests (other than, in each case, Excluded Property) is
collectively referred to as the ‘‘Specified IP
Collateral’’:

			
		(i) 	all
Intellectual Property and goodwill associated therewith;

			
		(ii) 	all books and records
pertaining to the property described in this Section 2.1(b);
and

			
		(iii) 	to the extent not
otherwise included, all Proceeds of any or all of the foregoing.

Section 2.2    Grants of Security Interests in
Collateral

(a) Each Grantor, as
collateral security for the full, prompt and complete payment and
performance when due (whether at stated maturity, by acceleration or
otherwise) of the Revolving Credit Secured Obligations of such Grantor,
hereby mortgages, pledges and hypothecates to the Collateral Agent for
the benefit of the Revolving Credit Secured Parties, and grants to the
Collateral Agent for the benefit of the Revolving Credit Secured
Parties a lien on and security interest in, all of its right, title and
interest in, to and under the Revolving Priority Collateral of such
Grantor; provided, however, that the foregoing grant of
security interest shall not include a security interest in any Excluded
Property; and provided, further, that, if and when any
property shall cease to be Excluded Property, the Collateral Agent for
the benefit of the Revolving Credit Secured Parties shall have, and at
all times from and after the date hereof be deemed to have had, a
security interest in such property. The continuing security interest
and Lien granted above in this Section 2.2(a) by the Grantors to
the Collateral Agent for the benefit of the Revolving Credit Secured
Parties are referred to as the ‘‘First
Priority Revolving Priority Collateral
Liens’’.

(b) Each
Grantor, as collateral security for the full, prompt and complete
payment and performance when due (whether at stated maturity, by
acceleration or otherwise) of the Term Loan Secured Obligations of such
Grantor, hereby mortgages, pledges and hypothecates to the Collateral
Agent for the benefit of the Term Loan Secured Parties, and grants to
the Collateral Agent for the benefit of the Term Loan Secured Parties,
a lien on and security interest in, all of its right, title and
interest in, to and under the Revolving Priority Collateral of such
Grantor; provided, however, that the foregoing grant of security
interest shall not include a security interest in any Excluded
Property; and provided, further, that, if and when any
property shall cease to be Excluded Property, the Collateral Agent for
the benefit of the Term Loan Secured Parties shall have, and at all
times from and after the date hereof be deemed to have had, a security
interest in such property. The continuing security interest and Lien
granted above in this Section 2.2(b) by the Grantors to the
Collateral Agent for the benefit of the Term Loan Secured Parties are
referred to as ‘‘Second Priority Revolving
Priority Collateral Liens’’. The First
Priority Revolving Priority Collateral Liens on any or all of the
Revolving Priority Collateral shall take priority over the Second
Priority Revolving Priority Collateral Liens and the Second Priority
Revolving Priority Collateral Liens shall be and are hereby rendered
subordinate and inferior in priority to the First Priority Revolving
Priority Collateral Liens on such Revolving Priority
Collateral.

(c) Each Grantor, as
collateral security for the full, prompt and complete payment and
performance when due (whether at stated maturity, by acceleration or
otherwise) of the Term Loan Secured Obligations of such Grantor, hereby
mortgages, pledges, and hypothecates to the Collateral Agent for the
benefit of the Term Loan Secured Parties, and grants to the Collateral
Agent for the benefit of the Term Loan Secured Parties, a lien on and
security interest in, all of its right, title and interest in, to and
under the Specified IP Collateral of such Grantor; provided,
however, that the foregoing grant of security interest shall not
include a security interest in any Excluded Property; and
provided, further, that, if and when any property shall
cease to be Excluded Property, the Collateral Agent for the benefit of
the Term Loan Secured Parties shall have, and at all times from and
after the date hereof be deemed to have had, a security interest

8

in such property. The continuing security
interest and Lien granted above in this Section 2.2(c) by the
Grantors to the Collateral Agent for the benefit of the Term Loan
Secured Parties are referred to as ‘‘First
Priority Specified IP Collateral
Liens’’.

(d) Each
Grantor, as collateral security for the full, prompt and complete
payment and performance when due (whether at stated maturity, by
acceleration or otherwise) of the Revolving Credit Secured Obligations
of such Grantor, hereby mortgages, pledges, hypothecates and grants to
the Collateral Agent for the benefit of the Revolving Credit Secured
Parties, a lien on and security interest in, all of its right, title
and interest in, to and under the Specified IP Collateral of such
Grantor; provided, however, that the foregoing grant of
security interest shall not include a security interest in any Excluded
Property; and provided, further, that, if and when any
property shall cease to be Excluded Property, the Collateral Agent for
the benefit of the Revolving Credit Secured Parties shall have, and at
all times from and after the date hereof be deemed to have had, a
security interest in such property. The continuing security interest
and Lien granted above in this Section 2.2(d) by the Grantors to
the Collateral Agent for the benefit of the Revolving Credit Secured
Parties are referred to as ‘‘Second Priority
Specified IP Collateral Liens’’. The First
Priority Specified IP Collateral Liens on any or all of the Specified
IP Collateral shall take priority over the Second Priority Specified IP
Collateral Liens and the Second Priority Specified IP Collateral Liens
shall be and are hereby rendered subordinate and inferior in priority
to the First Priority Specified IP Collateral Liens on such Specified
IP Collateral.

(e) Notwithstanding
anything to the contrary contained in this Agreement, the Liens granted
above, and the relative priority thereof, shall be as set forth in, and
subject to the terms and conditions of, the Intercreditor
Agreement.

Section 2.3  Cash Collateral
Accounts

The Collateral Agent may establish one or more Cash
Collateral Accounts with such depositaries and Securities
Intermediaries as it in its sole discretion shall determine. Each
Grantor agrees that each such Cash Collateral Account shall be under
the control of the Collateral Agent and that the Collateral Agent shall
be the Entitlement Holder with respect to each such Cash Collateral
Account that is a Securities Account and the only Person authorized to
give Entitlement Orders with respect to each such Securities Account.
Without limiting the foregoing, funds on deposit in any Cash Collateral
Account may be invested (but the Collateral Agent shall be under no
obligation to make any such investment) in Cash Equivalents at the
direction of the Collateral Agent and, except during the continuance of
an Event of Default, the Collateral Agent agrees with each Grantor to
issue Entitlement Orders for such investments in Cash Equivalents as
requested by the Borrower; provided, however, that the
Collateral Agent shall not have any responsibility for, or bear any
risk of loss of, any such requested investment or income thereon.
Except as provided in Section 2.9(d)(i) and (f) of the
Credit Agreement, neither any Warnaco Entity nor any other Person
claiming on behalf of or through any Warnaco Entity shall have any
right to demand payment of any funds held in any Cash Collateral
Account at any time prior to Discharge of Lender Claims. The Collateral
Agent shall apply all funds on deposit in a Cash Collateral Account as
provided in Section 2.9(f) of the Credit Agreement.

ARTICLE III.    REPRESENTATIONS AND
WARRANTIES 

To induce the Lenders, the
Issuers, the Collateral Agent and the Administrative Agents to enter
into the Credit Agreement, each Grantor hereby represents and warrants
each of the following to the Lenders, the Issuers, the Collateral
Agent, the Administrative Agents and the other Secured Parties:

Section 3.1  Title; No Other
Liens

Except for the Liens granted to the Collateral Agent
pursuant to this Agreement and the other Liens permitted to exist on
the Collateral under the Credit Agreement, such Grantor (a) is the
record and beneficial owner of the Pledged Collateral pledged by it
hereunder constituting Instruments or Certificated Securities, (b) is
the Entitlement Holder of all such Pledged Collateral constituting
Investment Property held in a Securities Account and (c) has rights in
or the power to collaterally 

9

transfer each other item of Collateral in
which a Lien is granted by it hereunder, free and clear of any Lien
(other than Liens for taxes not yet due and
payable).

Section 3.2  Perfection and
Priority

The security interests granted pursuant to this
Agreement shall constitute valid and continuing perfected security
interests in favor of the Collateral Agent in the Collateral for which
perfection is governed by the UCC or filing with the United States
Copyright Office or with the United States Patent and Trademark Office
upon (i) in the case of all Collateral in which a security interest may
be perfected by filing a financing statement under the UCC, the
completion of the filings and other actions specified on
Schedule 3 (Filings) (which, in the case of all filings
and other documents referred to on such schedule, have been delivered
to the Collateral Agent in completed and duly executed form),
(ii) the delivery to the Collateral Agent of all Collateral
consisting of Instruments and Certificated Securities, in each case
properly endorsed for transfer to the Collateral Agent or in blank,
(iii) the execution of Control Account Agreements with respect
to Investment Property not in certificated form, (iv) the
execution of a Blocked Account Letter with respect to all Deposit
Accounts of a Grantor as specified in Section 4.7(a)(i) hereto,
(v) all appropriate filings having been made with the United
States Copyright Office and (vi) the receipt by the Collateral Agent of
the consent of the issuer or nominated person with respect to each
Letter-of-Credit Right that is not a Supporting Obligation. With the
exception of the subordination of (i) the Second Priority Revolving
Priority Collateral Liens to the First Priority Revolving Priority
Collateral Liens and (ii) the Second Priority Specified IP Collateral
Liens to the First Priority Specified IP Collateral Liens pursuant to
this Agreement and the Intercreditor Agreement, such security interests
shall be prior to all other Liens on the Collateral except for
Customary Permitted Liens having priority over the Collateral
Agent’s Liens by operation of law or otherwise as permitted
hereunder or under the Credit Agreement.

Section
3.3  Jurisdiction of Organization; Chief Executive
Office

On the Closing Date, such Grantor’s
jurisdiction of organization, legal name, organizational identification
number, if any, and the location of such Grantor’s chief
executive office or sole place of business is specified on
Schedule 1 (Jurisdiction of Organization; Principal
Executive Office) and such Schedule 1 (Jurisdiction of
Organization; Principal Executive Office) also lists all
jurisdictions of incorporation, legal names and locations of such
Grantor’s chief executive office or sole place of business for
the period beginning five years preceding the date hereof and ending on
July  1,  2001.

Section
3.4  Inventory and Equipment

Schedule 4
(Location of Inventory and Equipment) sets forth each location at
which such Grantor’s Inventory and Equipment (other than mobile
goods and Inventory or Equipment in transit) (i) is kept on the Closing
Date and (ii) was kept during the period from October  1,
2000 to July  1,  2001, and to the best of such
Grantor’s knowledge, in the period from February
1,  1998 to July  1,  2001, such Grantor did not kept
Inventory or Equipment in any State within the United States of America
other than a location set forth on Schedule 4 (Location of Inventory
and Equipment).

Section 3.5  Pledged
Collateral

(a) The Pledged Stock that constitutes
Pledged Collateral pledged hereunder by such Grantor is listed on
Schedule 2 (Pledged Collateral) and constitutes that
percentage of the issued and outstanding equity of all classes of each
issuer thereof as set forth on Schedule 2 (Pledged
Collateral).

(b) All of the Pledged Stock (other than
Pledged Stock in limited liability companies and partnerships) that
constitutes Pledged Collateral has been duly and validly issued and are
fully paid and nonassessable.

(c) All Pledged Collateral
and, if applicable, any Additional Pledged Collateral, consisting of
Certificated Securities or Instruments has been delivered to the
Collateral Agent in accordance with Section 4.4(a) (Pledged
Collateral) and Section 7.11 of the Credit
Agreement.

(d) Subject to Section 4.7, all Pledged
Collateral held by a Securities Intermediary in a Securities Account is
subject to a Control Account Agreement.

10

(e) Other than Pledged Stock
constituting General Intangibles, there is no Pledged Collateral other
than (i) that represented by Certificated Securities or (ii)
Instruments in the possession of the Collateral Agent or that
consisting of Financial Assets held in a Securities Account that is
subject to a Control Account Agreement.

(f) The
Constituent Documents of any Person governing any Pledged Stock do not
prohibit (i) the Collateral Agent, upon the occurrence and during the
continuance of an Event of Default, from exercising all of the rights
of the Grantor granting the security interest therein, and (ii) a
transferee or assignee of Stock of such Person from becoming a member,
partner or, as the case may be, other holder of such Pledged Stock to
the same extent as the Grantor entitled to participate in the
management of such Person and, pursuant to the Constituent Documents of
any Person governing any Pledged Stock, upon the transfer of the entire
interest of such Grantor, such Grantor shall cease to be a member,
partner or, as the case may be, other holder of such Pledged
Stock.

Section 3.6  Deposit Accounts;
Securities Accounts

The only Deposit Accounts, Securities
Accounts or Commodity Accounts maintained by any Grantor on the Closing
Date are those listed on Schedule 7 (Deposit Accounts and Securities
Accounts), which sets forth such information separately for each
Grantor and which clearly identifies each Deposit Account which is
maintained as a concentration account by such
Grantor.

Section
3.7  Accounts

No amount payable to such Grantor
under or in connection with any Account is evidenced by any Instrument
or Chattel Paper that has not been delivered to the Collateral Agent,
properly endorsed for transfer, to the extent delivery is required by
Section 4.5 (Delivery of Instruments and Chattel
Paper).

Section 3.8  Intellectual
Property

(a) Schedule 5 (Intellectual
Property) sets forth a true and complete list of all Intellectual
Property of such Grantor on the date hereof (other than licenses to
commercial off-the-shelf software), separately identifying (i) that
owned by such Grantor and that licensed by or to such Grantor and (ii)
sets forth a true and complete list of all Material Intellectual
Property owned by or licensed to such Grantor on the date hereof (other
than licenses to commercial off-the-shelf software), separately
identifying that owned by such Grantor and that licensed by or to such
Grantor. The Material Intellectual Property set forth on
Schedule 5 (Intellectual Property) constitutes all of
the material intellectual property rights necessary for the Grantors to
conduct their business as currently and as proposed to be
conducted.

(b) On the date hereof, all Material
Intellectual Property owned by such Grantor is valid, in full force and
effect, subsisting, unexpired and enforceable, has not been adjudged
invalid and has not been abandoned. To the knowledge of such Grantor,
the business of such Grantor, and the use of the Material Intellectual
Property in connection therewith, does not infringe, misappropriate,
dilute or violate any Third Party Intellectual Property Rights. Such
Grantor is not party to or the subject of any pending or, to such
Grantor’s knowledge, threatened claim of infringement,
misappropriation, dilution or violation of any Third Party Intellectual
Property Rights, and there are no facts or circumstances that such
Grantor reasonably believes are likely to form the basis for any such
claim, and such Grantor has not received written notice of any such
claim, or a written offer of a license to any Third Party Intellectual
Property Rights, or any written notice regarding the existence of any
Third Party Intellectual Property Rights that would be likely to have a
Material Adverse Effect on any Grantor or otherwise would impair any
Material Intellectual Property.

(c) Except as set forth
in Schedule 5(c) (Intellectual Property), on the date
hereof, none of the Material Intellectual Property owned by such
Grantor is the subject of any licensing or franchise agreement pursuant
to which such Grantor is the licensor or
franchisor.

(d) No holding, decision or judgment has been
rendered by any Governmental Authority challenging such
Grantor’s rights in the Material Intellectual Property or that
would limit or otherwise impair the ownership, use, validity or
enforceability of any Material Intellectual Property.

11

(e) No action or proceeding
challenging such Grantor’s rights in the Intellectual Property
or the ownership, use, validity or enforceability of any Material
Intellectual Property owned by such Grantor is on the date hereof
pending or, to the knowledge of such Grantor, threatened. There are no
claims, judgments or settlements to be paid by such Grantor relating to
the Material Intellectual Property. To such Grantor’s knowledge,
no Person has been or is infringing, misappropriating, diluting or
violating the Material Intellectual Property owned by such
Grantor.

(f) No Grantor is in material breach of any
Copyright License, Patent License or Trademark License and no Grantor
in breach of any Material License. The consummation of the transactions
contemplated by this Agreement shall not impair any of such
Grantor’s right in, cause a breach of, or impair the validity or
enforceability of, any Material Intellectual Property.

Section 3.9  Commercial Tort
Claims

The only Commercial Tort Claims (with a reasonable
expectation of recovery of at least $1,000,000) of any Grantor existing
on the Closing Date (regardless of whether the amount, defendant or
other material facts can be determined and regardless of whether such
Commercial Tort Claim has been asserted, threatened or has otherwise
been made known to the obligee thereof or whether litigation has been
commenced for such claims) are those listed on Schedule  6
(Commercial Tort Claims), which sets forth such information
separately for each Grantor.

    ARTICLE
IV.    COVENANTS

Each Grantor agrees
with the Collateral Agent to the following, as long as any Secured
Obligation or Commitment remains outstanding and, in each case, unless
the Requisite Lenders otherwise consent in
writing:

Section
4.1  Generally

Such Grantor shall
(a) except for the security interest created by this Agreement,
not create or suffer to exist any Lien upon or with respect to any
Collateral, except Liens permitted under Section 8.2 (Liens,
Etc.) of the Credit Agreement, (b) not use or permit any
Collateral to be used unlawfully or in violation of any provision of
this Agreement, any other Loan Document, any Requirement of Law or any
policy of insurance covering the Collateral, (c) not sell,
transfer or assign (by operation of law or otherwise) any Collateral
except as permitted under the Credit Agreement, (d) not enter
into any agreement or undertaking restricting the right or ability of
such Grantor or the Collateral Agent to sell, assign or transfer any
Collateral except in connection with an Asset Sale (i) that is
permitted under Section 8.4 of the Credit Agreement or (ii) that
is pursuant to a contract which contains a condition precedent that
consent under the Credit Agreement be
obtained.

Section 4.2  Maintenance of
Perfected Security Interest; Further
Documentation

(a) Such Grantor shall maintain the
security interests created by this Agreement as perfected security
interests having at least the priority described in Section 3.2
(Perfection and Priority) and Section 2.2 (Grants of Security
Interests in Collateral) and shall defend such security interests
and such priority against the claims and demands of all
Persons.

(b) Such Grantor shall furnish to the Collateral
Agent from time to time statements and schedules further identifying
and describing the Collateral and such other reports in connection with
the Collateral as the Collateral Agent may reasonably request in
writing, all in detail and in form and substance reasonably
satisfactory to the Collateral Agent.

(c) At any time and
from time to time, upon the written request of the Collateral Agent,
and at the sole expense of such Grantor, such Grantor shall promptly
and duly execute and deliver, and have recorded, such further
instruments and documents and take such further action as the
Collateral Agent may request (at the direction of any Administrative
Agent may reasonably request) for the purpose of obtaining or
preserving the full benefits of this Agreement and of the rights and
powers herein granted, including the filing of any financing or
continuation statement under the UCC (or other similar laws) in effect
in any jurisdiction with respect to the security interests created
hereby and the execution and delivery of Blocked Account Letters or
Restricted Account Letters and Control Account
Agreements.

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Section
4.3  Changes in Locations, Name,
Etc.

(a) Except upon 15 or more days’ prior
written notice to the Collateral Agent and delivery to the Collateral
Agent of (i) all additional financing statements and other
documents reasonably requested by the Collateral Agent to maintain the
validity, perfection and priority of the security interests provided
for herein and (ii) if applicable, a written supplement to
Schedule 4 (Location of Inventory and Equipment)
showing (A) any additional locations at which Inventory or
Equipment shall be kept or (B) any changes in any location where
Inventory or Equipment shall be kept that would require the Collateral
Agent to take any action to maintain perfected security interests in
such Collateral, such Grantor shall not do any of the
following:

(i) permit any Inventory or
Equipment to be kept at a location other than those listed on
Schedule 4  (Location of Inventory and Equipment),
except for Inventory or Equipment in
transit;

(ii) change its jurisdiction of
organization from that referred to in Section 3.3 (Jurisdiction of
Organization; Chief Executive Office);
or

(iii) change its legal name, or
organizational identification number, if any, or corporation, limited
liability company or other organizational structure to such an extent
that any financing statement filed in connection with this Agreement
would become misleading.

(b) Such Grantor shall keep and
maintain at its own cost and expense satisfactory and complete records
of the Collateral, including a record of all payments received and all
credits granted with respect to the Collateral and all other dealings
with the Collateral.

Section
4.4  Pledged Collateral

(a) Such Grantor
shall (i) deliver to the Collateral Agent for the benefit of the
Secured Parties, all certificates and Instruments representing or
evidencing any Pledged Collateral (including Additional Pledged
Collateral), whether now existing or hereafter acquired, in suitable
form for transfer by delivery or, as applicable, accompanied by such
Grantor’s endorsement, where necessary, or duly executed
instruments of transfer or assignment in blank, all in form and
substance satisfactory to the Collateral Agent, together, in respect of
any Additional Pledged Collateral, with a Pledge Amendment, duly
executed by the Grantor, in substantially the form of Annex 3 (Form
of Pledge Amendment), an acknowledgment and agreement to a Joinder
Agreement duly executed by any new Grantor, in substantially the form
in the form of Annex 4 (Form of Joinder Agreement), or such
other documentation acceptable to the Collateral Agent and
(ii) maintain all other Pledged Collateral constituting
Investment Property in a Securities Account subject to a Control
Account Agreement. Such Grantor authorizes the Collateral Agent to
attach each Pledge Amendment to this Agreement. The Collateral Agent
shall have the right, following an Event of Default and without notice
to the Grantor, to transfer to or to register in its name or in the
name of its nominees any Pledged Collateral. The Collateral Agent shall
have the right at any time to exchange any certificate or instrument
representing or evidencing any Pledged Collateral for certificates or
instruments of smaller or larger denominations.

(b) Except
as provided in ARTICLE V (Remedial Provisions), such Grantor
shall be entitled to receive all cash dividends paid in respect of the
Pledged Collateral (other than liquidating or distributing dividends).
Any sums paid upon or in respect of any Pledged Collateral upon the
liquidation or dissolution of any issuer of any Pledged Collateral, any
distribution of capital made on or in respect of any Pledged Collateral
or any property distributed upon or with respect to any Pledged
Collateral pursuant to the recapitalization or reclassification of the
capital of any issuer of Pledged Collateral or pursuant to the
reorganization thereof (except, in each case, to the extent resulting
in cash being distributed to a Grantor) shall, unless otherwise subject
to a perfected security interest (with the priorities contemplated
herein) in favor of the Collateral Agent, be delivered to the
Collateral Agent to be held by it hereunder as additional collateral
security for the Secured Obligations. If any sum of money or property
so paid or distributed in respect of any Pledged Collateral shall be
received by such Grantor, such Grantor shall, until such money or
property is paid or delivered to the Collateral Agent, hold such money
or property in trust for the Collateral Agent, segregated from other
funds of such Grantor, as additional security for the Secured
Obligations.

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(c) Except as provided in
ARTICLE V (Remedial Provisions), such Grantor shall be entitled
to exercise all voting, consent and corporate, partnership, limited
liability company and similar rights with respect to the Pledged
Collateral; provided, however, that no vote shall be
cast, consent given or right exercised or other action taken by such
Grantor that would impair the Collateral, be inconsistent with or
result in any violation of any provision of the Credit Agreement, this
Agreement or any other Loan Document or, without prior notice to the
Collateral Agent, enable or permit any issuer of Pledged Collateral to
issue any Stock or other equity Securities of any nature or to issue
any other securities convertible into or granting the right to purchase
or exchange for any Stock or other equity Securities of any nature of
any issuer of Pledged Collateral.

(d) Such Grantor shall
not grant ‘‘control’’ (within the
meaning of such term under Article 9-106 of the UCC) over any
Investment Property to any Person other than the Collateral
Agent.

(e) In the case of each Grantor that is an issuer
of Pledged Collateral, such Grantor agrees to be bound by the terms of
this Agreement relating to the Pledged Collateral issued by it and
shall comply with such terms insofar as such terms are applicable to
it. In the case of any Grantor that is a holder of any Stock or Stock
Equivalent in any Person that is an issuer of Pledged Collateral, such
Grantor consents to (i) the exercise of the rights granted to
the Collateral Agent hereunder (including those described in Section
5.3 (Pledged Collateral)), and (ii) the pledge by each other
Grantor, pursuant to the terms hereof, of the Pledged Stock in such
Person and to the transfer of such Pledged Stock to the Collateral
Agent or its nominee and to the substitution of the Collateral Agent or
its nominee as a holder of such Pledged Stock with all the rights,
powers and duties of other holders of Pledged Stock of the same class
and, if the Grantor having pledged such Pledged Stock hereunder had any
right, power or duty at the time of such pledge or at the time of such
substitution beyond that of such other holders, with all such
additional rights, powers and duties. Such Grantor agrees to execute
and deliver to the Collateral Agent such certificates, agreements and
other documents as may be necessary to evidence, formalize or otherwise
give effect to the consents given in this clause
(e).

(f) Such Grantor shall not, and shall not permit
any of its Subsidiaries (to the extent the Stock of such Subsidiary
constitutes Collateral), without the consent of the Collateral Agent,
agree to any amendment of any Constituent Document that in any way
adversely affects the perfection of the security interest of the
Collateral Agent in the Pledged Collateral pledged by such Grantor
hereunder, including any amendment electing to treat any membership
interest or partnership interest that is part of the Pledged Collateral
as a ‘‘security’’ under
Section 8-103 of the UCC, or any election to turn any previously
uncertificated Stock that is part of the Pledged Collateral into
certificated Stock.

Section
4.5  Delivery of Instruments and Chattel
Paper

If any amount in excess of $250,000 payable under or
in connection with any Collateral owned by such Grantor shall be or
become evidenced by an Instrument or Chattel Paper, such Grantor shall
promptly deliver such Instrument or Chattel Paper to the Collateral
Agent, duly indorsed in a manner satisfactory to the Collateral Agent,
or, if consented to by the Collateral Agent, shall mark all such
Instruments and Chattel Paper with the following legend:
‘‘This writing and the obligations evidenced or
secured hereby are subject to the security interest of Citicorp North
America, Inc., as Collateral Agent for the benefit of the Secured
Parties’’ (which legend shall be modified to
reflect successor Collateral Agents).

Section
4.6  Intellectual Property

(a) Such
Grantor (either itself or through licensees) shall (and shall cause all
licensees or sublicensees thereof to) (i) continue to use each
Trademark that is Material Intellectual Property in order to maintain
such Trademark in full force and effect with respect to each class of
goods for which such Trademark is currently used, free from any claim
of abandonment for non-use, (ii) maintain as in the past the
quality of products and services offered under such Trademark,
(iii) use such Trademark with the appropriate notice of
registration and all other notices and legends required by applicable
Requirements of Law, (iv) execute and file all documents
necessary to perfect a security interest pursuant to this Agreement in
favor of the Collateral Agent promptly upon adopting or using any mark
that is confusingly similar or a colorable imitation of such Trademark
and (v) not do any act or 

14

knowingly omit to do any act (and not permit
or direct by express act or omission any licensee or sublicensee
thereof to do any act) whereby such Trademark (or any goodwill
associated therewith) may become destroyed, invalidated, impaired or
harmed in any way; provided, however, that (i)-(iii) and (v)
above shall be subject to the good faith exercise by such Grantor of
its reasonable business judgment consistent with past
practices.

(b) Such Grantor shall not (and shall not
permit or direct by express act or omission any licensee or sublicensee
thereof to) do any act, or omit to do any act, whereby any Patent that
is Material Intellectual Property may become forfeited, abandoned or
dedicated to the public.

(c) Such Grantor (i) shall
not (and shall not permit or direct by express act or omission any
licensee or sublicensee thereof to) do any act or omit to do any act
whereby any portion of the Copyrights that is Material Intellectual
Property may become invalidated or otherwise impaired and
(ii) shall not (and shall not permit or direct by express act or
omission any licensee or sublicensee thereof to) do any act whereby any
portion of the Copyrights that is Material Intellectual Property may
fall into the public domain.

(d) Such Grantor shall not
knowingly (and shall not permit or direct by express act or omission
any licensee or sublicensee thereof to) do any act, or knowingly omit
to do any act, whereby any trade secret that is Material Intellectual
Property may become publicly available or otherwise
unprotectable.

(e) Such Grantor shall not (and shall not
permit or direct by express act or omission any licensee or sublicensee
thereof to) do any act that knowingly infringes, misappropriates,
dilutes or violates any Third Party Intellectual Property
Rights.

(f) Such Grantor shall notify the Collateral Agent
immediately if it knows, or has reason to know, that any application
for registration or recording, registration or recording relating to
any Material Intellectual Property may become forfeited, abandoned or
dedicated to the public, or of any adverse determination or development
(including the institution of, or any such determination or development
in, any proceeding in the United States Patent and Trademark Office,
the United States Copyright Office or any court or tribunal in any
country) regarding such Grantor’s ownership of, right to use,
interest in, or the validity or enforceability of, any Material
Intellectual Property or such Grantor’s right to register the
same or to own and maintain the same.

(g) As set forth
below, whenever such Grantor, either by itself or through its counsel
or any agent or designee, shall file an application for the
registration or recording of any Intellectual Property with the United
States Patent and Trademark Office, the United States Copyright Office
or any similar office or agency within or outside the United States or
register any Internet domain name, such Grantor shall report such
filing to the Collateral Agent within five Business Days after the last
day of the fiscal quarter in which such filing occurs. Upon request of
the Collateral Agent, such Grantor shall execute and deliver, and have
recorded, all agreements, instruments, documents and papers as the
Collateral Agent may request to evidence the Collateral Agent’s
security interest in any such Copyright, Patent, Trademark or Internet
domain name and the goodwill and general intangibles of such Grantor
relating thereto or represented thereby.

(h) Such Grantor
shall take all reasonable actions that are (i) necessary (subject to
the good faith exercise by such Grantor of its reasonable business
judgment consistent with past practices) or (ii) requested by the
Collateral Agent, including in any proceeding before the United States
Patent and Trademark Office, the United States Copyright Office or any
similar office or agency and any Internet domain name registrar, to
maintain and pursue each application for registration or recording (and
to obtain the relevant registration or recording) and to maintain each
registration and recording of any Copyright, Trademark, Patent or
Internet domain name that is Material Intellectual Property, including
filing of applications for renewal, affidavits of use, affidavits of
incontestability and opposition and interference and cancellation
proceedings.

(i) In the event that any Material
Intellectual Property is infringed, misappropriated, diluted or
violated by a third party, such Grantor shall notify the Collateral
Agent promptly after such Grantor learns thereof. Such Grantor shall
take appropriate action in response to any infringement,
misappropriation, dilution or violation of the Material Intellectual
Property, including promptly 

15

bringing suit for infringement,
misappropriation, dilution or violation and to recover all damages for
such infringement, misappropriation, dilution or violation, and shall
take such other actions may be appropriate under the circumstances to
protect such Intellectual Property; provided,
however, that the foregoing shall be subject to the good faith
exercise by such Grantor of its reasonable business judgment consistent
with past practices.

(j) Unless otherwise agreed to by the
Collateral Agent such Grantor shall execute and deliver to the
Collateral Agent for filing in (i) the United States Copyright
Office a short-form copyright security agreement in the form attached
hereto as Annex 5 (Form of Short Form Copyright Security
Agreement) for all Copyrights of such Grantor, (ii) in the
United States Patent and Trademark Office a short-form patent security
agreement in the form attached hereto as Annex 6 (Form of
Short Form Patent Security Agreement) for all Patents of such
Grantor, (iii) the United States Patent and Trademark Office and
with the appropriate department or division of all appropriate States
of the United States a short-form trademark security agreement in form
attached hereto as Annex 7 (Form of Short Form Trademark Security
Agreement) for all Trademarks of such Grantor and (iv) with
the appropriate Internet domain name registrar, a duly executed form of
assignment of all Internet domain names of such Grantor to the
Collateral Agent (together with appropriate supporting documentation as
may be requested by the Collateral Agent) in form and substance
reasonably acceptable to the Collateral Agent. In the case of
clause (iv) above, such Grantor hereby authorizes the
Collateral Agent to file such assignment in such Grantor's name
and to otherwise perform in the name of such Grantor all other
necessary actions to complete such assignment, and each Grantor agrees
to perform all appropriate actions deemed necessary by the Collateral
Agent for the Collateral Agent to ensure such Internet domain name is
registered in the name of the Collateral
Agent.

Section 4.7  Cash Management;
Deposit Accounts

(a) On the Closing Date (or such
later date as agreed by the Collateral Agent), each Grantor shall cause
to be delivered (i) to the Collateral Agent, a duly executed and
effective Blocked Account Letter for each existing Deposit Account
identified as a concentration account on Schedule 7 maintained
by any Grantor and (ii) to each Restricted Account Bank (with a copy to
the Collateral Agent, a Restricted Account Letter for each other
Deposit Account (subject only to clause (b) below) duly executed
by the appropriate Grantor to each such Deposit
Account.

(b) Each Grantor shall (i) deposit in a Blocked
Account or Restricted Account all cash and all Proceeds received by
such Grantor and (ii) not establish or maintain any Deposit Account
with any financial or other institution other than a Blocked Account
Bank, a Restricted Account Bank, a Lender or an Affiliate of a Lender;
provided, however, that the Warnaco Entities may at any time
maintain the following accounts not subject to this Section
4.8(b) (i) Deposit Accounts or Securities Accounts (or their
foreign equivalents) located outside of the United States with cash or
Cash Equivalents not in excess of an aggregate amount of $30,000,000,
(ii) Deposit Accounts or Securities Accounts located in the
United States with cash or Cash Equivalents not in excess of an
aggregate amount of $10,000,000 and (iii) payroll, withholding tax and
other fiduciary accounts as required for operations in the ordinary
course of business.

(c) Each Grantor shall instruct each
Account Debtor or other Person obligated to make a payment to such
Grantor to make payment, or to continue to make payment, as the case
may be, to a lock-box linked to a Blocked Account or a Restricted
Account, as the case may be, and each Grantor shall deposit in a
Blocked Account or a Restricted Account all Proceeds received by such
Grantor from any other Person immediately upon
receipt.

(d) In the event (i) any Grantor or a Blocked
Account Bank or Restricted Account Bank shall, after the date hereof,
terminate an agreement with respect to the maintenance of a Blocked
Account or Restricted Account, as the case may be, for any reason, (ii)
the Collateral Agent shall demand termination of a Blocked Account
Letter or a Restricted Account Letter as a result of the failure of a
Blocked Account Bank or Restricted Account Bank, as the case may be, to
comply with the terms of the applicable letter agreement or (iii) the
Collateral Agent determines in its sole discretion that the financial
condition of a Blocked Account Bank or Restricted Account Bank has
materially deteriorated, then, in each case, Group shall, or shall
cause the applicable Grantor to, notify all of its 

16

Account Debtors that were making payments to
such terminated Blocked Account Bank or Restricted Account Bank to make
all future payments to such other Blocked Account Bank or Restricted
Account Bank, as specified by the Collateral
Agent.

Section
4.8  Vehicles

Upon the request of the
Collateral Agent, within 30 days after the date of such request and,
with respect to any Vehicle acquired by such Grantor subsequent to the
date of any such request, within 30 days after the date of acquisition
thereof, such Grantor shall file all applications for certificates of
title or ownership indicating the Collateral Agent’s first
priority security interest in the Vehicle covered by such certificate
and any other necessary documentation, in each office in each
jurisdiction that the Collateral Agent shall deem advisable to perfect
its security interests in the Vehicles; provided, however, that
the aggregate value of all Vehicles excepted from the application of
this Section 4.9 shall not exceed
$1,000,000.

Section 4.9  Payment of
Obligations

Such Grantor shall pay and discharge or
otherwise satisfy at or before maturity or before they become
delinquent, as the case may be, all taxes, assessments and governmental
charges or levies imposed upon the Collateral or in respect of income
or profits therefrom, as well as all claims of any kind (including
claims for labor, materials and supplies) against or with respect to
the Collateral, except that no such charge need be paid if the amount
or validity thereof is currently being contested in good faith by
appropriate proceedings, reserves in conformity with GAAP with respect
thereto have been provided on the books of such Grantor and such
proceedings could not reasonably be expected to result in the sale,
forfeiture or loss of any material portion of the Collateral or any
interest therein.

Section 4.10  Notice
of Commercial Tort Claims 

Such Grantor agrees that, if it
shall acquire any interest in any Commercial Tort Claim with a
reasonable expectation of recovery of at least $1,000,000 (whether from
another Person or because such Commercial Tort Claim shall have come
into existence), (i) such Grantor shall, immediately upon such
acquisition, deliver to the Collateral Agent, in each case in form and
substance satisfactory to the Collateral Agent, a notice of the
existence and nature of such Commercial Tort Claim and deliver a
supplement to Schedule 6 (Commercial Tort Claims) containing a
specific description of such Commercial Tort Claim, (ii) the
provision of Section 2.1 (Collateral) shall apply to such
Commercial Tort Claim and (iii) such Grantor shall execute and
deliver to the Collateral Agent, in each case in form and substance
satisfactory to the Collateral Agent, any certificate, agreement and
other document, and take all other action, deemed by the Collateral
Agent to be reasonably necessary or appropriate for the Collateral
Agent to obtain, on behalf of the Revolving Credit Secured Parties, a
first-priority, perfected security interest in all such Commercial Tort
Claims, and on behalf of the Term Loan Secured Parties, a
second-priority, perfected security interest in all such Commercial
Tort Claims. Any supplement to Schedule 6 (Commercial Tort
Claims) delivered pursuant to this Section 4.10 (Notice of
Commercial Tort Claims) shall, after the receipt thereof by the
Collateral Agent, become part of Schedule 6 (Commercial Tort
Claims) for all purposes hereunder other than in respect of
representations and warranties made prior to the date of such
receipt.

    ARTICLE V.    REMEDIAL
PROVISIONS 

Section
5.1  Code and Other Remedies

During the
continuance of an Event of Default, the Collateral Agent may in
accordance with the terms of the Intercreditor Agreement exercise, in
addition to all other rights and remedies granted to it in this
Agreement and in any other instrument or agreement securing, evidencing
or relating to the Secured Obligations, all rights and remedies of a
secured party under the UCC or any other applicable law. Without
limiting the generality of the foregoing, the Collateral Agent, without
demand of performance or other demand, presentment, protest,
advertisement or notice of any kind (except any notice required by law
referred to below) to or upon any Grantor or any other Person (all and
each of which demands, defenses, advertisements and notices are hereby
waived), may in such 

17

circumstances forthwith collect, receive,
appropriate and realize upon any Collateral, and may forthwith sell,
lease, assign, give option or options to purchase, or otherwise dispose
of and deliver any Collateral (or contract to do any of the foregoing),
in one or more parcels at public or private sale or sales, at any
exchange, broker’s board or office of the Collateral Agent or
any Lender or elsewhere upon such terms and conditions as it may deem
advisable and at such prices as it may deem best, for cash or on credit
or for future delivery without assumption of any credit risk. Subject
to the terms of the Intercreditor Agreement, the Collateral Agent shall
have the right upon any such public sale or sales, and, to the extent
permitted by the UCC and other applicable law, upon any such private
sale or sales, to purchase the whole or any part of the Collateral so
sold, free of any right or equity of redemption of any Grantor, which
right or equity is hereby waived and released. Each Grantor further
agrees, at the Collateral Agent’s request, to assemble the
Collateral and make it available to the Collateral Agent at places that
the Collateral Agent shall reasonably select, whether at such
Grantor’s premises or elsewhere. The Collateral Agent shall
apply the net proceeds of any action taken by it pursuant to this
Section 5.1, after deducting all reasonable costs and expenses
of every kind incurred in connection therewith or incidental to the
care or safekeeping of any Collateral or in any way relating to the
Collateral or the rights of the Collateral Agent and any other Secured
Party hereunder, including reasonable attorneys’ fees and
disbursements, to the payment in whole or in part of the Secured
Obligations, in such order as the Intercreditor Agreement shall
prescribe, and only after such application and after the payment by the
Collateral Agent of any other amount required by any provision of law,
need the Collateral Agent, as the case may be, account for the surplus,
if any, to any Grantor. To the extent permitted by applicable law, each
Grantor waives all claims, damages and demands it may acquire against
the Collateral Agent, or any other Secured Party arising out of the
exercise by them of any rights hereunder. If any notice of a proposed
sale or other disposition of Collateral shall be required by law, such
notice shall be deemed reasonable and proper if given at least 10 days
before such sale or other disposition.

Section
5.2  Accounts and Payments in Respect of General
Intangibles

(a) In addition to, and not in
substitution for, any similar requirement in the Credit Agreement, if
required by the Collateral Agent at any time during the continuance of
an Event of Default, any payment of Accounts or payment in respect of
General Intangibles, when collected by any Grantor, shall be forthwith
(and, in any event, within two Business Days) deposited by such Grantor
in the exact form received, duly indorsed by such Grantor to the
Collateral Agent, in a Blocked Account or a Cash Collateral Account,
subject to withdrawal by the Collateral Agent as provided in Section
5.4 (Proceeds to be Turned Over To Collateral Agent). Until so
turned over, such payment shall be held by such Grantor in trust for
the Collateral Agent, segregated from other funds of such Grantor. Each
such deposit of Proceeds of Accounts and payments in respect of General
Intangibles shall be accompanied by a report identifying in reasonable
detail the nature and source of the payments included in the
deposit.

(b) At the Collateral Agent’s request,
during the continuance of an Event of Default, each Grantor shall
deliver to the Collateral Agent all original and other documents
evidencing, and relating to, the agreements and transactions that gave
rise to the Accounts or payments in respect of General Intangibles,
including all original orders, invoices and shipping
receipts.

(c) Subject to the terms of the
[Credit]1
Agreement, the Collateral Agent may, without notice, at any time during
the continuance of an Event of Default, limit or terminate the
authority of a Grantor to collect its Accounts or amounts due under
General Intangibles or any thereof.

(d) The Collateral
Agent in its own name or in the name of others may at any time during
the continuance of an Event of Default communicate with Account Debtors
to verify with them to the Collateral Agent’s satisfaction the
existence, amount and terms of any Account or amounts due under any
General Intangible.

(e) Upon the request of the Collateral
Agent at any time during the continuance of an Event of Default, each
Grantor shall notify Account Debtors that it has granted to the
Collateral Agent a lien 

	

		
	1	Reference
to be revised if such terms are provided for in the Intercreditor
Agreement.

18

on and security interest in, all of its
right, title and interest in, to and under the Accounts or General
Intangibles that have been collaterally assigned to the Collateral
Agent and that payments in respect thereof shall be made directly to
the Collateral Agent. In addition, the Collateral Agent may at any time
during the continuance of an Event of Default, to the extent permitted
by applicable law, enforce such Grantor’s rights against such
Account Debtors and obligors of General
Intangibles.

(f) Anything herein to the contrary
notwithstanding, each Grantor shall remain liable under each of the
Accounts and payments in respect of General Intangibles to observe and
perform all the conditions and obligations to be observed and performed
by it thereunder, all in accordance with the terms of any agreement
giving rise thereto. Neither the Collateral Agent, nor any other
Secured Party shall have any obligation or liability under any
agreement giving rise to an Account or a payment in respect of a
General Intangible by reason of or arising out of this Agreement or the
receipt by the Collateral Agent nor any other Secured Party of any
payment relating thereto, nor shall the Collateral Agent, nor any other
Secured Party be obligated in any manner to perform any obligation of
any Grantor under or pursuant to any agreement giving rise to an
Account or a payment in respect of a General Intangible, to make any
payment, to make any inquiry as to the nature or the sufficiency of any
payment received by it or as to the sufficiency of any performance by
any party thereunder, to present or file any claim, to take any action
to enforce any performance or to collect the payment of any amounts
that may have been assigned to it or to which it may be entitled at any
time or times.

Section 5.3  Pledged
Collateral

(a) Subject to the terms of the
Intercreditor Agreement and during the continuance of an Event of
Default, upon notice by the Collateral Agent to the relevant Grantor or
Grantors, (i) the Collateral Agent shall have the right to
receive any Proceeds of the Pledged Collateral and make application
thereof to the Obligations in the order set forth in the Credit
Agreement and the Intercreditor Agreement and (ii) the
Collateral Agent or its nominee may exercise (A) any voting,
consent, corporate and other right pertaining to the Pledged Collateral
at any meeting of shareholders, partners or members, as the case may
be, of the relevant issuer or issuers of Pledged Collateral or
otherwise and (B) any right of conversion, exchange and
subscription and any other right, privilege or option pertaining to the
Pledged Collateral as if it were the absolute owner thereof (including
the right to exchange at its discretion any of the Pledged Collateral
upon the merger, consolidation, reorganization, recapitalization or
other fundamental change in the corporate structure of any issuer of
Pledged Stock, the right to deposit and deliver any Pledged Collateral
with any committee, depositary, transfer agent, registrar or other
designated agency upon such terms and conditions as the Collateral
Agent may determine), all without liability except to account for
property actually received by it; provided, however, that
the Collateral Agent shall have no duty to any Grantor to exercise any
such right, privilege or option and shall not be responsible for any
failure to do so or delay in so doing.

(b) In order to
permit the Collateral Agent to exercise the voting and other consensual
rights that it may be entitled to exercise pursuant hereto and to
receive all dividends and other distributions that it may be entitled
to receive hereunder, (i) each Grantor shall promptly execute
and deliver (or cause to be executed and delivered) to the Collateral
Agent all such proxies, dividend payment orders and other instruments
as the Collateral Agent may from time to time reasonably request and
(ii) without limiting the effect of clause (i)
above, such Grantor hereby grants to the Collateral Agent an
irrevocable proxy to vote all or any part of the Pledged Collateral and
to exercise all other rights, powers, privileges and remedies to which
a holder of the Pledged Collateral would be entitled (including giving
or withholding written consents of shareholders, partners or members,
as the case may be, calling special meetings of shareholders, partners
or members, as the case may be, and voting at such meetings), which
proxy shall be effective, automatically and without the necessity of
any action (including any transfer of any Pledged Collateral on the
record books of the issuer thereof) by any other person (including the
issuer of such Pledged Collateral or any officer or agent thereof)
during the continuance of an Event of Default and which proxy shall
only terminate upon Discharge of Lender Claims.

(c) Each
Grantor hereby expressly authorizes and instructs each issuer of any
Pledged Collateral pledged hereunder by such Grantor to
(i) comply with any instruction received by it from the

19

Collateral Agent in writing that
(A) states that an Event of Default has occurred and is
continuing and (B) is otherwise in accordance with the terms of
this Agreement, without any other or further instructions from such
Grantor, and each Grantor agrees that such issuer shall be fully
protected in so complying and (ii) unless otherwise expressly
permitted hereby, pay any dividend or other payment with respect to the
Pledged Collateral directly to the Collateral
Agent

Section 5.4  Proceeds to be Turned
Over To Collateral Agent

Unless otherwise expressly provided
in the Credit Agreement, all Proceeds received by the Collateral Agent
hereunder in cash or Cash Equivalents shall be held by the Collateral
Agent in a Cash Collateral Account. All Proceeds constituting
Reinvestment Prepayment Amounts (as defined in the Credit Agreement) or
the cash collateralization of Letters of Credit (as defined in the
Credit Agreement) while held by the Collateral Agent in a Cash
Collateral Account (or by such Grantor in trust for the Collateral
Agent) shall continue to be held as collateral security for the Secured
Obligations and shall not constitute payment thereof until applied as
provided in the Credit Agreement.

Section
5.5  Registration Rights

(a) During the
continuance of an Event of Default, if the Collateral Agent shall
determine to exercise its right to sell any the Pledged Collateral
pursuant to Section 5.1 (Code and Other Remedies), and if in the
opinion of the Collateral Agent it is necessary or advisable to have
the Pledged Collateral, or any portion thereof to be registered under
the provisions of the Securities Act, the relevant Grantor shall use
its reasonable efforts to cause the issuer thereof to
(i) execute and deliver, and cause the directors and officers of
such issuer to execute and deliver, all such instruments and documents,
and do or cause to be done all such other acts as may be, in the
opinion of the Collateral Agent, necessary or advisable to register the
Pledged Collateral, or that portion thereof to be sold, under the
provisions of the Securities Act, (ii) use its reasonable
efforts to cause the registration statement relating thereto to become
effective and to remain effective for a period of one year from the
date of the first public offering of the Pledged Collateral, or that
portion thereof to be sold and (iii) make all amendments thereto
or to the related prospectus that, in the opinion of the Collateral
Agent, are necessary or advisable, all in conformity with the
requirements of the Securities Act and the rules and regulations of the
Securities and Exchange Commission applicable thereto. Each Grantor
agrees to cause such issuer to comply with the provisions of the
securities or ‘‘Blue Sky’’ laws of
any jurisdiction that the Collateral Agent shall designate and to make
available to its security holders, as soon as practicable, an earnings
statement (which need not be audited) satisfying the provisions of
Section 11(a) of the Securities Act.

(b) Each
Grantor recognizes that the Collateral Agent may be unable to effect a
public sale of any Pledged Collateral by reason of certain prohibitions
contained in the Securities Act and applicable state securities laws or
otherwise or may determine that a public sale is impracticable or not
commercially reasonable and, accordingly, may resort to one or more
private sales thereof to a restricted group of purchasers that shall be
obliged to agree, among other things, to acquire such securities for
their own account for investment and not with a view to the
distribution or resale thereof. Each Grantor acknowledges and agrees
that any such private sale may result in prices and other terms less
favorable than if such sale were a public sale and, notwithstanding
such circumstances, agrees that any such private sale shall be deemed
to have been made in a commercially reasonable manner. The Collateral
Agent shall be under no obligation to delay a sale of any Pledged
Collateral for the period of time necessary to permit the issuer
thereof to register such securities for public sale under the
Securities Act, or under applicable state securities laws, even if such
issuer would agree to do so.

(c) During the continuance of
an Event of Default, each Grantor agrees to use its best efforts to do
or cause to be done all such other acts as may be necessary to make
such sale or sales of all or any portion of the Pledged Collateral
pursuant to this Section 5.5 valid and binding and in compliance
with all other applicable Requirements of Law. Each Grantor further
agrees that a breach of any covenant contained in this Section
5.5 will cause irreparable injury to the Collateral Agent and the
other Secured Parties, that the Collateral Agent, and the other Secured
Parties have no adequate remedy at 

20

law in respect of such breach and, as a
consequence, that each and every covenant contained in this Section
5.5 shall be specifically enforceable against such Grantor, and
such Grantor hereby waives and agrees not to assert any defense against
an action for specific performance of such covenants except for a
defense that no Event of Default has occurred under the Credit
Agreement.

Section
5.6  Deficiency

Each Grantor shall remain
liable for any deficiency if the proceeds of any sale or other
disposition of the Collateral are insufficient to pay the Secured
Obligations and the fees and disbursements of any attorney employed by
the Collateral Agent, or any other Secured Party, to collect such
deficiency.

    ARTICLE VI.    THE
COLLATERAL AGENT

Section
6.1  Collateral Agent’s Appointment as
Attorney-in-Fact 

(a) Each Grantor hereby irrevocably
constitutes and appoints the Collateral Agent and any officer or agent
thereof, with full power of substitution, as its true and lawful
attorney-in-fact with full irrevocable power and authority in the place
and stead of such Grantor and in the name of such Grantor or in its own
name, for the purpose of carrying out the terms of this Agreement, to
take any appropriate action and to execute any document or instrument
that may be necessary or desirable to accomplish the purposes of this
Agreement, and, without limiting the generality of the foregoing, each
Grantor hereby gives the Collateral Agent the power and right, on
behalf of such Grantor, without notice to or assent by such Grantor, to
do any of the following:

(i) in the name
of such Grantor or its own name, or otherwise, take possession of and
indorse and collect any check, draft, note, acceptance or other
instrument for the payment of moneys due under any Account or General
Intangible or with respect to any other Collateral and file any claim
or take any other action or proceeding in any court of law or equity or
otherwise deemed appropriate by the Collateral Agent for the purpose of
collecting any such moneys due under any Account or General Intangible
or with respect to any other Collateral whenever
payable;

(ii) in the case of any
Intellectual Property, execute and deliver, and have recorded, any
agreement, instrument, document or paper as the Collateral Agent may
request to evidence the Collateral Agent’s security interests in
such Intellectual Property and the goodwill and General Intangibles of
such Grantor relating thereto or represented
thereby;

(iii) pay or discharge taxes
and Liens levied or placed on or threatened against the Collateral,
effect any repair or pay any insurance called for by the terms of this
Agreement (including all or any part of the premiums therefor and the
costs thereof);

(iv) execute, in
connection with any sale provided for in Section 5.1 (Code
and Other Remedies) or 5.5 (Registration Rights), any
endorsement, assignment or other instrument of conveyance or transfer
with respect to the Collateral;
or

(v) (A) direct any party
liable for any payment under any Collateral to make payment of any
moneys due or to become due thereunder directly to the Collateral Agent
or as the Collateral Agent shall direct, (B) ask or demand for,
collect, and receive payment of and receipt for, any moneys, claims and
other amounts due or to become due at any time in respect of or arising
out of any Collateral, (C) sign and indorse any invoice, freight
or express bill, bill of lading, storage or warehouse receipt, draft
against debtors, assignment, verification, notice and other document in
connection with any Collateral, (D) commence and prosecute any
suit, action or proceeding at law or in equity in any court of
competent jurisdiction to collect any Collateral and to enforce any
other right in respect of any Collateral, (E) defend any suit,
action or proceeding brought against such Grantor with respect to any
Collateral, (F) settle, compromise or adjust any such suit,
action or proceeding and, in connection therewith, give such discharges
or releases as the Collateral Agent may deem appropriate,
(G) assign any Copyright, Patent or Trademark (along with the
goodwill of the business to which any such Trademark pertains)

21

throughout the world for such term or terms,
on such conditions, and in such manner as the Collateral Agent shall in
its sole discretion determine, including the execution and filing of
any document necessary to effectuate or record such assignment and
(H) generally, sell, transfer, pledge and make any agreement
with respect to or otherwise deal with any Collateral as fully and
completely as though the Collateral Agent were the absolute owner
thereof for all purposes, and do, at the Collateral Agent’s
option and such Grantor’s expense, at any time, or from time to
time, all acts and things that the Collateral Agent deems necessary to
protect, preserve or realize upon the Collateral and the Collateral
Agent’s and the other Secured Parties’ security interests
therein and to effect the intent of this Agreement, all as fully and
effectively as such Grantor might do.

Anything in this
clause (a) to the contrary notwithstanding, the
Collateral Agent agrees that it shall not exercise any right under the
power of attorney provided for in this clause (a) unless
an Event of Default shall be continuing.

(b) If any
Grantor fails to perform or comply with any of its agreements contained
herein, the Collateral Agent, at its option, but without any obligation
so to do, may perform or comply, or otherwise cause performance or
compliance, with such agreement.

(c) The expenses of the
Collateral Agent incurred in connection with actions undertaken as
provided in this Section 6.1, together with interest thereon at
a rate per annum equal to the rate per annum at which interest would
then be payable on past due Revolving Loans that are Base Rate Loans
under the Credit Agreement, from the date of payment by the Collateral
Agent to the date reimbursed by the relevant Grantor, shall be payable
by such Grantor to the Collateral Agent on
demand.

(d) Each Grantor hereby ratifies all that said
attorneys shall lawfully do or cause to be done by virtue hereof. All
powers, authorizations and agencies contained in this Agreement are
coupled with an interest and are irrevocable until this Agreement is
terminated and the security interests created hereby are
released.

Section 6.2  Duty of
Collateral Agent

The Collateral Agent’s sole duty
with respect to the custody, safekeeping and physical preservation of
the Collateral in its possession shall be to deal with it in the same
manner as the Collateral Agent deals with similar property for its own
account. Neither the Collateral Agent, any other Secured Party nor any
of their respective officers, directors, employees or agents shall be
liable for failure to demand, collect or realize upon any Collateral or
for any delay in doing so or shall be under any obligation to sell or
otherwise dispose of any Collateral upon the request of any Grantor or
any other Person or to take any other action whatsoever with regard to
any Collateral. The powers conferred on the Collateral Agent hereunder
are solely to protect the Collateral Agent’s and the Secured
Parties’ respective interests in the Collateral and shall not
impose any duty upon the Collateral Agent, or any other Secured Party
to exercise any such powers. The Collateral Agent and the other Secured
Parties shall be accountable only for amounts that they actually
receive as a result of the exercise of such powers, and neither they
nor any of their respective officers, directors, employees or agents
shall be responsible to any Grantor for any act or failure to act
hereunder, except for their own gross negligence or willful
misconduct.

Section 6.3  Authorization
of Financing Statements

Each Grantor authorizes the
Collateral Agent and each of its Affiliates, counsel and other
representatives, at any time and from time to time until Discharge of
Lender Claims, to file or record financing statements, amendments to
financing statements, and other filing or recording documents or
instruments with respect to the Collateral without the signature of
such Grantor in such form and in such offices as the Collateral Agent
reasonably determines appropriate to perfect the security interests of
the Collateral Agent under this Agreement, and such financing
statements and amendments may described the Collateral covered thereby
as ‘‘all assets of the debtor’’,
‘‘all personal property of the
debtor’’ or words of similar effect. Each Grantor
hereby also authorizes the Collateral Agent and each of its Affiliates,
counsel and other representatives, at any time and from time to time,
to file 

22

continuation statements with respect to
previously filed financing statements. A photographic or other
reproduction of this Agreement shall be sufficient as a financing
statement or other filing or recording document or instrument for
filing or recording in any jurisdiction.

Section
6.4  Authority of Collateral Agent

(a) Each Grantor acknowledges that the rights and
responsibilities of the Collateral Agent under this Agreement with
respect to any action taken by the Collateral Agent or the exercise or
non-exercise by the Collateral Agent of any option, voting right,
request, judgment or other right or remedy provided for herein or
resulting or arising out of this Agreement shall, as between the
Collateral Agent and the other Secured Parties, be governed by the
Intercreditor Agreement, the Credit Agreement and by such other
agreements with respect thereto as may exist from time to time among
them, but, as between the Collateral Agent and the Grantors, the
Collateral Agent shall be conclusively presumed to be acting as agent
for the Collateral Agent and the other Secured Parties, with full and
valid authority so to act or refrain from acting, and no Grantor shall
be under any obligation, or entitlement, to make any inquiry respecting
such authority. To the extent that the Intercreditor Agreement
conflicts with any other Loan Documents with regard to the authority of
the Collateral Agent, the Intercreditor Agreement shall
control.

(b) Each Grantor and the Collateral Agent hereby
agrees and acknowledges that, to the extent that the Collateral Agent
has a security interest in or possession of any Collateral, the
Collateral Agent is holding, and shall hold, such Collateral (and the
security interest therein) for the benefit of and on behalf of each
Secured Party (including the Collateral Agent), subject to the relative
priorities set forth herein and in the Intercreditor Agreement, in
accordance with Section 8-301(a)(2), 9-313(a) and 9-313(c) of the UCC,
if applicable.

    ARTICLE
VII.    MISCELLANEOUS

Section
7.1  Amendments in Writing

None of the terms or
provisions of this Agreement may be waived, amended, supplemented or
otherwise modified except in accordance with Section 11.1
(Amendments, Waivers, Etc.) of the Credit Agreement;
provided, however, that annexes to this Agreement may be
supplemented (but no existing provisions may be modified and no
Collateral may be released) through Pledge Amendments and Joinder
Agreements, in substantially the form of Annex 3 (Form of Pledge
Amendment) and Annex 4 (Form of Joinder Agreement)
respectively, in each case duly executed by the Collateral Agent and
each Grantor directly affected thereby.

Section
7.2  Notices

All notices, requests and demands
to or upon the Collateral Agent or any Grantor hereunder shall be
effected in the manner provided for in Section 11.8 (Notices,
Etc.) of the Credit Agreement; provided, however,
that any such notice, request or demand to or upon any Grantor shall be
addressed to the Borrower’s notice address set forth in such
Section 11.8.

Section
7.3  No Waiver by Course of Conduct; Cumulative
Remedies

Neither the Collateral Agent nor any other Secured
Party shall by any act (except by a written instrument pursuant to
Section 7.1 (Amendments in Writing)), delay, indulgence,
omission or otherwise be deemed to have waived any right or remedy
hereunder or to have acquiesced in any Default or Event of Default. No
failure to exercise, nor any delay in exercising, on the part of the
Collateral Agent or any other Secured Party, any right, power or
privilege hereunder shall operate as a waiver thereof. No single or
partial exercise of any right, power or privilege hereunder shall
preclude any other or further exercise thereof or the exercise of any
other right, power or privilege. A waiver by the Collateral Agent or
any other Secured Party of any right or remedy hereunder on any one
occasion shall not be construed as a bar to any right or remedy that
the Collateral Agent or such other Secured Party would otherwise have
on any future occasion. The rights and remedies herein provided are
cumulative, may be exercised singly or concurrently and are not
exclusive of any other rights or remedies provided by
law.

23

Section
7.4  Amendment and Restatement;
Effectiveness

(a) This Agreement shall not become
effective until the Closing Date.

(b) On the Closing Date,
the Existing Pledge and Security Agreement shall be amended and
restated in its entirety by this Agreement, and the Existing Pledge and
Security Agreement shall thereafter be of no further force and effect
except to evidence the Liens granted thereunder and the incurrence by
the Grantors of obligations thereunder (whether or not such obligations
are contingent as of the Closing Date). This Agreement is not in any
way intended to constitute a novation of the obligations and
liabilities existing under the Existing Pledge and Security Agreement
or evidence payment or performance of all or any portion of such
obligations and liabilities.

(c) The terms and conditions
of this Agreement and the Agents’, the Lenders’ and the
Issuers’ rights and remedies under this Agreement and the other
Loan Documents shall apply to (i) all of the Obligations incurred under
the Credit Agreement and the Notes issued thereunder and all
obligations of the Grantors incurred under the Loan Documents and (ii)
all of the Obligations incurred under the Existing Credit Agreement and
the Notes issued and defined thereunder and all obligations of the
Grantors incurred under the Loan Documents (as defined in the Existing
Credit Agreement) (the ‘‘Existing Loan
Documents’’).

(d) Each Grantor
hereby reaffirms the Liens granted pursuant to the Existing Loan
Documents to the Existing Administrative Agent for the benefit of the
Secured Parties (as defined in the Existing Credit Agreement), which
Liens shall continue in full force and effect during the term of this
Agreement and any renewals thereof and shall continue to secure the
Secured Obligations.

(e) On and after the Closing Date,
(i) all references to the Existing Pledge and Security Agreement (or to
any amendment or any amendment and restatement thereof) in the Loan
Documents shall be deemed to refer to the Existing Pledge and Security
Agreement, as amended and restated hereby, (ii) all references to any
section (or subsection) of the Existing Pledge and Security Agreement
in any Loan Document (but not herein) shall be amended to become,
mutatis mutandis, references to the corresponding provisions of
this Agreement and (iii) except as the context otherwise provides, on
or after the Closing Date, all references to this Agreement herein
(including for purposes of indemnification and reimbursement of fees)
shall be deemed to be reference to the Existing Pledge and Security
Agreement, as amended and restated hereby.

(f) This
amendment and restatement is limited as written and is not a consent to
any other amendment, restatement, waiver or other modification, whether
or not similar, and, except as expressly provided herein or in any
other Loan Document, all terms and conditions of the Loan Documents
remain in full force and effect unless otherwise specifically amended
by this Agreement or any other Loan Document.

Section
7.5  Successors and Assigns

This Agreement
shall be binding upon the successors and assigns of each Grantor and
shall inure to the benefit of the Collateral Agent and each other
Secured Party and their successors and assigns; provided,
however, that no Grantor may assign, transfer or delegate any of
its rights or obligations under this Agreement without the prior
written consent of the Collateral Agent.

Section
7.6  Counterparts

This Agreement may be
executed by one or more of the parties to this Agreement on any number
of separate counterparts (including by telecopy), each of which when so
executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement. Signature pages
may be detached from multiple counterparts and attached to a single
counterpart so that all signature pages are attached to the same
document. Delivery of an executed counterpart by telecopy shall be
effective as delivery of a manually executed
counterpart.

Section
7.7  Severability

Any provision of this
Agreement that is prohibited or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without 

24

invalidating the remaining provisions
hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such
provision in any other jurisdiction.

Section
7.8  Section Headings

The Article and Section
titles contained in this Agreement are, and shall be, without
substantive meaning or content of any kind whatsoever and are not part
of the agreement of the parties hereto.

Section
7.9  Entire Agreement 

(a) This
Agreement together with the other Loan Documents and the Intercreditor
Agreement represents the entire agreement of the parties and supersedes
all prior agreements and understandings relating to the subject matter
hereto concerning the Secured Obligations.

(b) In the
event of any conflict between the provisions of this Agreement and the
provisions of the Intercreditor Agreement, the provisions of the
Intercreditor Agreement shall govern.

Section
7.10  Governing Law

This Agreement and the
rights and obligations of the parties hereto shall be governed by, and
construed and interpreted in accordance with, the law of the State of
New York.

Section 7.11  Additional
Grantors

If, pursuant to Section 7.11 (Additional
Personal Property Collateral and Guaranties) of the Credit
Agreement, the Borrower shall be required to cause any Subsidiary that
is not a Grantor to become a Grantor hereunder, such Subsidiary shall
execute and deliver to the Collateral Agent a Joinder Agreement
substantially in the form of Annex 4 (Form of Joinder
Agreement) and shall thereafter for all purposes be a party hereto
and have the same rights, benefits and obligations as a Grantor party
hereto on the Closing Date.

Section
7.12  Release of Collateral

(a) At the
time provided in Section 9.1(a) of the Intercreditor
Agreement, the Collateral shall be released from the Liens hereby and
this Agreement and all obligations (other than those expressly stated
to survive such termination) of the Collateral Agent and each Grantor
hereunder shall terminate, all without delivery of any instrument or
performance of any act by any party, and, subject to the obligations of
the Collateral Agent under the Intercreditor Agreement, all rights to
the Collateral shall revert to the Grantors. Subject to the obligations
of the Collateral Agent under the Intercreditor Agreement, at the
request and sole expense of any Grantor following any such termination,
the Collateral Agent shall deliver to such Grantor any Collateral of
such Grantor held by the Collateral Agent hereunder and execute and
deliver to such Grantor, at the sole expense of the Borrower, such
documents as such Grantor shall reasonably request to evidence such
termination.

(b) If the Collateral Agent shall be directed
or permitted pursuant to Section 9.1(b) or (c) of the
Intercreditor Agreement to release any Lien created hereby upon any
Collateral (including any Collateral sold or disposed of by any Grantor
in a transaction permitted by the Credit Agreement), such Collateral
shall be released from the Lien created hereby to the extent provided
under, and subject to the terms and conditions set forth in,
Section 9.1(b) or (c) of the Intercreditor Agreement. In
connection therewith but subject to the terms of the Intercreditor
Agreement, the Collateral Agent, at the request and sole expense of the
Borrower, shall execute and deliver to the Borrower, all releases or
other documents reasonably necessary or desirable for the release of
the Lien created hereby on such Collateral.

(c) At the
request and sole expense of the Grantors, a Grantor shall be released
from its obligations hereunder in the event that all the capital stock
of such Grantor shall be so sold or disposed; provided,
however, that the Borrower shall have delivered to the
Collateral Agent, at least ten Business Days prior to the date of the
proposed release, a written request for release identifying the
relevant Grantor and the terms of the sale or other disposition in
reasonable detail, including the price thereof and any expenses in
connection therewith, together with a certification by the Borrower in
form and substance satisfactory to the Collateral Agent stating that
such transaction is in compliance with the Loan
Documents.

25

Section
7.13  Reinstatement

Each Grantor further agrees
that, if any payment made by any Loan Party or other Person and applied
to the Obligations is at any time annulled, avoided, set aside,
rescinded, invalidated, declared to be fraudulent or preferential or
otherwise required to be refunded or repaid, or the proceeds of
Collateral are required to be returned by any Secured Party to such
Loan Party, its estate, trustee, receiver or any other party, including
any Grantor, under any bankruptcy law, state or federal law, common law
or equitable cause, then, to the extent of such payment or repayment,
any Lien or other Collateral securing such liability shall be and
remain in full force and effect, as fully as if such payment had never
been made or, if prior thereto the Lien granted hereby or other
Collateral securing such liability hereunder shall have been released
or terminated by virtue of such cancellation or surrender), such Lien
or other Collateral shall be reinstated in full force and effect, and
such prior cancellation or surrender shall not diminish, release,
discharge, impair or otherwise affect any Lien or other Collateral
securing the obligations of any Grantor in respect of the amount of
such payment.

[SIGNATURE PAGES
FOLLOW]

26

IN
WITNESS WHEREOF, each of the undersigned has caused this
Amended and Restated Pledge and Security Agreement to be duly executed
and delivered as of the date first above
written.

		WARNACO INC.,

as
Grantor

		By: /s/ Lawrence R.
Rutkowski 

  Name: Lawrence R.
Rutkowski

  Title: Chief Financial
Officer

		THE WARNACO GROUP,
INC.,

as Grantor

		By: /s/ Lawrence
R. Rutkowski 

  Name: Lawrence R.
Rutkowski

  Title: Chief Financial
Officer

		184
BENTON STREET INC.

A.B.S. CLOTHING COLLECTION, INC.

AUTHENTIC
FITNESS ON-LINE, INC.

CALVIN KEIN JEANSWEAR COMPANY

CCC
ACQUISITION CORP.

C. F. HATHAWAY COMPANY

CKJ HOLDINGS,
INC.

DESIGNER HOLDINGS LTD.

GREGORY STREET, INC.

JEANSWEAR
HOLDINGS, INC.

KAI JAY MANUFACTURING COMPANY

OCEAN PACIFIC
APPAREL CORP.

OUTLET STORES, INC.

UBERTECH PRODUCTS,
INC

WARNACO MEN'S SPORTSWEAR INC

WARNACO PUERTO RICO,
INC

WARNACO RETAIL INC

WARNACO SOURCING INC

WARNACO
SWIMWEAR INC

WARNACO SWIMWEAR PRODUCTS INC.,

MYRTLE AVENUE,
INC.,

CKU.COM INC.,

WARNACO U.S., INC.,

as
Grantors

		By: /s/ Lawrence R.
Rutkowski 

  Name: Lawrence R.
Rutkowski

  Title: Treasurer of each of the
above-named

  entities

ACCEPTED AND
AGREED

as of the date first above
written:

CITICORP NORTH AMERICA,
INC.,

as Collateral Agent for the Revolving Credit
Secured Parties,
 Agent for the Term Loan Secured Parties, and as
Collateral
 Agent for the Secured
Parties

By: /s/ Keith R.
Gerding            

       Name: Keith R.
Gerding
       Title: Vice
President

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