Document:

CONSENT AND AMENDMENT

     CONSENT AND AMENDMENT (this "Consent") dated as of May 19, 2005 by and
among SOVEREIGN BANK, ("Sovereign"), SOVEREIGN PRECIOUS METALS, LLC, a
Pennsylvania limited liability company ("LLC"), both with an office at One
Financial Plaza, 3rd Floor, Providence, Rhode Island 02903 and COMMERZBANK
INTERNATIONAL S.A. (together with LLC and Sovereign, the "Institutions"),
Sovereign and LLC as agents for the Institutions (collectively, the "Agent"),
FINLAY FINE JEWELRY CORPORATION, a Delaware corporation with its principal
office at 529 Fifth Avenue, New York, New York 10017 ("Finlay"), and EFINLAY,
INC., a Delaware corporation with its principal office at 529 Fifth Avenue, New
York, New York 10017 ("eFinlay" together with Finlay, the "Consignees").

                                  WITNESSETH:

     WHEREAS, the Institutions, the Agent, Finlay and eFinlay are parties to an
Amended and Restated Gold Consignment Agreement dated as of March 30, 2001 (as
hereafter amended, modified or supplemented from time to time in accordance with
its terms, the "Agreement");

     WHEREAS, Finlay, FFJ Acquisition Corp. ("FFJ"), Carlyle & Co. Jewelers,
("Carlyle") certain stockholders of Carlyle and Russell L. Cohen are parties to
a certain Agreement and Plan of Merger dated as May 19, 2005 (the "Merger
Agreement") pursuant to which FFJ, a wholly owned subsidiary of Finlay, will
merge with and into Carlyle which will be the surviving entity, and pursuant to
which Finlay and the other parties to the Merger Agreement will consummate the
other transactions contemplated by the Merger Agreement (collectively, the
"Merger");

     WHEREAS, the Merger is prohibited under the terms and conditions of the
Agreement; and

     WHEREAS, subject to the terms and conditions hereof, the Agent and the
Institutions are willing to consent to the Merger and to amend the Agreement;

     NOW THEREFORE, for good and valuable consideration, the receipt of which is
hereby acknowledged, and subject to the fulfillment of the conditions set forth
below, the parties hereto agree as follows:

     1. Defined Terms. Unless otherwise specifically defined herein, all
capitalized terms used herein shall have the respective meanings ascribed to
such terms in the Agreement.

     2. Consent. Subject to the terms and conditions set forth herein (a) each
of the Agent and the Institutions hereby waives the prohibition set forth in
Section 8.1.3(vi) and consents to the formation and capitalization of FFJ in
connection with the Merger, and (b) and so long as, at the time of the
consummation of the Merger, no Default or Event of Default has occurred and is
continuing, each of the Agent and the Institutions hereby waives the prohibition
set forth in Section 8.2.5(i) and consents to the Merger.

     3. Amendments.

     (a) Section 1 of the Agreement is amended by inserting the following
defined terms in alphabetical order:

          "Carlyle: Carlyle & Co. Jewelers, a Delaware corporation."

          "Carlyle Credit Card Services Agreement: that certain Merchant Credit
     Card Agreement dated as of May 9, 2002 by and among Carlyle, certain
     Subsidiaries of Carlyle and Paymentech Merchant Services, Inc. and/or any
     similar agreement providing for credit card services, as each may be
     amended, modified, supplemented, restated, renewed, replaced or extended
     from time to time."

          "Carlyle Employment Agreements: the employment agreements between a
     Consignee or any Subsidiary of a Consignee and John Cohen and Russell
     Cohen, respectively, as each may be amended, modified, supplemented,
     restated, renewed, replaced or extended from time to time in accordance
     with its terms and the limitations set forth in Section 8.2.9 hereof."

          "Carlyle Merger Agreement: that certain Agreement and Plan of Merger
     dated as of May 19, 2005 among Finlay, FFJ Acquisition Corp. ("FFJ"),
     Carlyle, certain stockholders of Carlyle and Russell L. Cohen, as it may be
     amended, modified, supplemented, restated or replaced from time to time.

          "Carlyle Receivables Purchase Agreements: (i) that certain Credit Card
     Program and Security Agreement dated September 28, 1998 between Carlyle and
     Hudson United Bank, doing business through its unincorporated division
     Shoppers Charge Accounts Co., that certain Operating Agreement, undated,
     between Carlyle and Hudson United Bank, doing business through its
     unincorporated division Shoppers Charge Accounts Co., and all related
     documents and agreements executed or delivered in connection therewith,
     and/or (ii) any similar agreement providing for a receivable purchase
     program, as each may be amended, modified, supplemented, restated, renewed,
     replaced or extended from time to time."

          "Rolex Security Agreement: that certain Security Agreement dated as of
     May 19, 2005 by and between Rolex Watch U.S.A., Inc. and any affiliate
     thereof, and their respective successors and assigns, and Carlyle, as such
     agreement may be amended, modified, supplemented, restated, renewed,
     replaced or extended from time to time."

     (b) Section 8.2.1 of the Agreement is amended by (i) inserting the words ",
and secured Current Liabilities of a Consignee or any Subsidiaries incurred in
the ordinary course of business to Rolex Watch U.S.A., Inc. and its affiliates,
and their respective successors and assigns, so long as the security interests
securing such Current Liabilities are limited to the security interests granted
under the Rolex Security Agreement" after the words "other than unsecured
Current Liabilities for Indebtedness for Borrowed Money" in clause (iii)
thereof, and (ii) inserting new clauses (xxii) through (xxvii) which shall read
as follows:

          "(xxii) Indebtedness consisting of intercompany loans and advances
     made by a Consignee or any Subsidiary of a Consignee to another Consignee
     or Subsidiary of a Consignee; provided, that: (A) each Consignee shall
     record all intercompany loans and advances on its books and records in a
     manner

                                      -2-

     reasonably satisfactory to the Agent; (B) the obligations of each Consignee
     under any such intercompany loans or advances shall be subordinated to the
     Obligations of such Consignee hereunder in a manner reasonably satisfactory
     to Agent; (C) at the time any such intercompany loan or advance is made by
     any Consignee and after giving effect thereto, such Consignee shall be
     solvent; and (D) no Default or Event of Default would occur and be
     continuing after giving effect to any such proposed intercompany loan or
     advance;

          (xxiii) Indebtedness, if any, under the Carlyle Employment Agreements;

          (xxiv) Indebtedness, if any, under the Carlyle Receivables Purchase
     Agreements;

          (xxv) Indebtedness, if any, under the Carlyle Credit Card Services
     Agreement;

          (xxvi) guaranties and similar obligations expressly permitted under
     Section 8.2.3 hereof; and

          (xxvii) Indebtedness of Finlay and FFJ consisting of indemnification
     obligations under the Carlyle Merger Agreement."

     For the avoidance of doubt, Carlyle shall be permitted to honor its pledge
to Hospice and Pallative Care of Greensboro to donate $25,000 in amounts of
$5,000 per year for each fiscal year from 2006 to 2011.

     (b) Section 8.2.2 of the Agreement is amended by inserting new clauses
(xvii) through (xix) which shall read as follows:

          "(xvii) Liens on funds deposited in any credit card services account
     in connection with the Credit Card Services Agreement;

          (xviii) Liens in favor of a purchaser upon purchased accounts granted
     pursuant to the Carlyle Receivables Purchase Agreements; and

          (xix) Liens in favor of Rolex Watch U.S.A., Inc. (for the benefit of
     itself and its affiliates and their respective successors and assigns)
     granted pursuant to the Rolex Security Agreement."

     (c) Section 8.2.3 of the Agreement is amended by (i) inserting the words ";
and (E) the "split-dollar" life insurance benefits/arrangements provided for
under the Carlyle Employment Agreements" after the words "no Default or Event of
Default was continuing;" in clause (ix) thereof, (ii) deleting the reference to
subclause (A) contained in the proviso to clause (vi) thereof, and (iii)
inserting new clauses (xxv) through (xxvii) which shall read as follows:

          "(xxv) guaranties by a Consignee or any Subsidiary of a Consignee of
     any obligations of any other Consignee or Subsidiary of a Consignee, so
     long as, the obligations of the other Consignee or Subsidiary are otherwise
     permitted hereunder;

          (xxvi) guaranties by a Consignee or any Subsidiary of a Consignee of
     any of the rental or other obligations of any other Consignee or Subsidiary
     of a Consignee under any real property or other operating lease; and

                                      -3-

          (xxvii) guaranties by a Consignee or any Subsidiary of a Consignee of
     the Senior Notes (2012) to the extent required under the indenture
     pertaining thereto."

     For avoidance of doubt, Carlyle and its Subsidiaries are deemed to be
approved Subsidiaries under Section 8.2.3(vi).

     (d) Section 8.2.5(iii) of the Agreement is amended by inserting new
subclauses (L), (M) and (N) after subclause (K) thereof which shall read as
follows:

          "(L) the closing of any retail store or other location, (M) the sale,
     transfer and assignment by a Consignee or any Subsidiary of a Consignee to
     Finlay Merchandising & Buying, Inc. of any trademarks (and concomitant
     licensing of such trademarks to a Consignee of any Subsidiary of a
     Consignee), (N) sales of accounts receivable under the Carlyle Receivables
     Purchase Agreements or any transaction contemplated by the Carlyle Credit
     Card Services Agreement, or (O) the transfers and assignments of the life
     insurance policies previously maintained by Carlyle on the lives of Richard
     Backer, Martin Bernstein and Lawrence Cohen to the respective beneficiaries
     thereof as provided for in the Carlyle Merger Agreement."

     (e) Notwithstanding anything to the contrary contained Section 8.2.6 of the
Agreement, Carlyle and its Subsidiaries may (i) change their fiscal year to
Finlay's fiscal year, and (ii) conduct their businesses as conducted by them
immediately prior to their acquisition by Finlay, including the leasing and
operation of independent retail stores for the sale of fine jewelry, fine
giftware and related products and services.

     (f) For avoidance of doubt, with respect to Section 8.2.7 of the Agreement,
Carlyle and its Subsidiaries may have and enter into consignment transactions in
the ordinary course of their respective businesses in accordance with their
respective past practices.

     (g) Section 8.2.8 of the Agreement is amended by inserting a new subclause
(iv) after subclause (iii) thereof which shall read as follows:

          "; and (iv) repayments and/or prepayments on account of intercompany
     Indebtedness permitted to be incurred under Section 8.2.1(xxii)."

     (h) Notwithstanding anything to the contrary contained in Section 8.2.10,
Carlyle and its Subsidiaries may have and operate factory outlet stores.

     (i) Schedule V (Subsidiaries) and Schedule XI (Certain Transactions) to the
Agreement are supplemented by Schedule V and Schedule XI to this Consent,
respectively.

     4. Representations and Warranties. Each of the Consignees represents and
warrants as follows (which representations and warranties shall survive the
execution and delivery of this Consent):

     (a) Each of the Consignees has taken all necessary action to authorize the
execution, delivery and performance of this Consent.

     (b) This Consent has been duly executed and delivered by the Consignees and
the acknowledgement attached hereto has been duly executed and delivered by each
Consignee. This Consent and the Agreement as affected hereby constitute the
legal, valid and binding obligation of the Consignees, enforceable against them
in accordance with their respective terms,

                                      -4-

subject to applicable bankruptcy, reorganization, insolvency, fraudulent
conveyance or transfer, moratorium and similar laws affecting the enforcement of
creditors' rights generally and by general equity principles.

     (c) No consent or approval of any person, firm, corporation or entity, and
no consent, license, approval or authorization of any governmental authority is
or will be required in connection with the execution, delivery, performance,
validity or enforcement of this Consent other than any such consent, approval,
license or authorization which has been obtained and remains in full force and
effect or where the failure to obtain such consent, approval, license or
authorization would not result in a Material Adverse Effect.

     (d) After giving effect to this Consent, each of the Consignees is in
compliance with all covenants and agreements applicable to it set forth in the
Agreement and each of the other Consignment Documents.

     (e) After giving effect to this Consent, no event has occurred and is
continuing which constitutes a Default or an Event of Default.

     (f) All representations and warranties contained in the Agreement, as
modified by this Consent, and each of the other Consignment Documents are true
and correct in all material respects as of the date hereof, except to the extent
that any representation or warranty relates to a specified date, in which case
such are true and correct in all material respects as of the specific date to
which such representations and warranties relate.

     5. Effective Date. The provisions of Sections 2 and 3 hereof shall become
effective as of May 19, 2005 (the "Effective Date") upon the occurrence of each
of the following, each in form and substance satisfactorily to the Agent: (i)
this Consent shall have been duly executed and delivered by each of the
Consignees, the Agent and the Institutions; and (ii) the Dollar Agent and the
requisite lenders under the Dollar Facility shall have consented to the Merger.

     6. Intentionally Deleted.

     7. Expenses. The Consignees agree to pay on demand all costs and expenses,
including reasonable attorneys' fees of the Agent incurred in connection with
this Consent.

     8. Continued Effectiveness. The term "Agreement", "hereof", "herein" and
similar terms as used in the Agreement, and references in the other Consignment
Documents to the Agreement, shall mean and refer to, from and after the
Effective Date, the Agreement as affected by this Consent. Each of the
Consignees hereby agrees that all of the covenants and agreements contained in
the Agreement and the other Consignment Documents are hereby ratified and
confirmed in all respects.

     9. Counterparts. This Consent may be executed in counterparts, each of
which shall be an original, and all of which, taken together, shall constitute a
single instrument. Delivery of an executed counterpart of a signature page to
this Consent by telecopier shall be effective as delivery of a manually executed
counterpart of this Consent.

     10. Governing Law. This Consent shall be governed by, and construed in
accordance with, the laws of the Commonwealth of Massachusetts without giving
effect to the conflict of laws provisions thereof.

     11. Limitation of Consent. Etc. The consents and agreements herein granted
shall not extend to or affect any obligations not expressly consented to or
amended herein and shall not

                                      -5-

impair any right of the Agent or the Institutions consequent thereon. No consent
herein granted or agreement herein made shall extend beyond the terms expressly
set forth herein for such consent or agreement, nor shall anything contained
herein be deemed to imply any willingness of the Agent or the Institutions to
agree to, or otherwise prejudice any rights of the Agent; or the Institutions
with respect to, any similar consents or agreements that may be requested for
any future period. Except as specifically consented to, extended or amended
hereby, each of the terms and conditions of the Agreement and the other
Consignment Documents is hereby ratified and confirmed and shall remain in full
force and effect. Except for the specific agreements contained herein, nothing
contained herein shall in anyway prejudice, impair or affect any rights or
remedies of the Institutions or the Agent under the Agreement and the other
Consignment Documents.

                  [Reminder of page intentionally left blank.]

                                      -6-

     IN WITNESS WHEREOF, the undersigned have duly executed this Consent as a
sealed instrument as of the date first above written.

                                        FINLAY FINE JEWELRY CORPORATION

                                        By: /s/ Bruce Zurlnick
                                            ------------------------------------
                                        Name: Bruce Zurlnick
                                        Title: Senior Vice President, Treasurer
                                               and Chief Financial Officer

                                        EFINLAY, INC.

                                        By: /s/ Bruce Zurlnick
                                            ------------------------------------
                                        Name: Bruce Zurlnick
                                        Title: Senior Vice President, Treasurer
                                               and Chief Financial Officer

                                        SOVEREIGN BANK,
                                        individually and as a Bank

                                        By: /s/ Janice M. Stinchfield
                                            ------------------------------------
                                        Name: Janice M. Stinchfield
                                        Title: Vice President

                                        SOVEREIGN PRECIOUS METALS, LLC,
                                        individually and as Agent

                                        By: /s/ Janice M. Stinchfield
                                            ------------------------------------
                                        Name: Janice M. Stinchfield
                                        Title: Vice President

                                        COMMERZBANK INTERNATIONAL S.A.

                                        By: /s/ M. Jahns, E. Geister
                                            ------------------------------------
                                        Name: M. Jahns, E. Geister
                                        Title: Vice President, Vice President

                    [Signature page to Consent and Amendment]

                     [Schedule XI to Consent and Amendment]

Pursuant to Item 601(b)(2) of Regulation S-K, the following is a list of omitted
schedules to the Consent and Amendment. Finlay agrees to furnish supplementally
a copy of any omitted schedule to the Securities and Exchange Commission upon
request.

         Schedule V                                Subsidiaries
         Schedule XI                               Certain TransactionsTHE WARNACO GROUP,
INC.
 2005 STOCK INCENTIVE PLAN
 RESTRICTED STOCK AWARD
AGREEMENT

THIS RESTRICTED STOCK AWARD AGREEMENT, (the
"Agreement"), dated as of
___________,
20__, is made by and between The Warnaco Group, Inc., a
Delaware corporation (the "Company"), and
___________,
an employee of the Company or an Affiliate (the
"Grantee").

WHEREAS, the Company has
adopted The Warnaco Group, Inc. 2005 Stock Incentive Plan (the
"Plan"), pursuant to which the Company may
grant Shares which are restricted as to transfer (Shares so restricted
hereinafter referred to as "Restricted
Stock");

WHEREAS, the Company desires to grant to
the Grantee the number of shares of Restricted Stock provided for
herein;

NOW, THEREFORE, in consideration of the recitals and the
mutual agreements herein contained, the parties hereto agree as
follows:

Section 1.    Grant of Restricted Stock
Award

(a)    Grant of Restricted Stock.   The
Company hereby grants to the Grantee
______ shares of Restricted
Stock on the terms and conditions set forth in this Agreement and as
otherwise provided in the Plan.

(b)    Incorporation of
Plan.   The provisions of the Plan are hereby incorporated
herein by reference. Except as otherwise expressly set forth herein,
this Agreement shall be construed in accordance with the provisions of
the Plan and any capitalized terms not otherwise defined in this
Agreement shall have the definitions set forth in the Plan. The
Committee shall have final authority to interpret and construe the Plan
and this Agreement and to make any and all determinations thereunder,
and its decision shall be binding and conclusive upon the Grantee and
his/her legal representative in respect of any questions arising under
the Plan or this Agreement.

Section 2.    Terms and
Conditions of Award

The grant of Restricted Stock provided in
Section 1(a) shall be subject to the following terms, conditions and
restrictions:

(a)    Ownership of Shares.   Subject
to the restrictions set forth in the Plan and this Agreement, the
Grantee shall possess all incidents of ownership of the Restricted
Stock granted hereunder, including the right to receive dividends with
respect to such Stock and the right to vote such Stock.

(b)    Restrictions.   Restricted Stock and any interest
therein, may not be sold, assigned, transferred, pledged, hypothecated
or otherwise disposed of, except by will or the laws of descent and
distribution, prior to the lapse of restrictions set forth in this
Agreement applicable thereto, as set forth in Section 2(d);
provided, however, that this Award may be transferred
to a Permitted Transferee if such transfer is without consideration;
and provided, further, that, following such a
transfer, the Award shall continue to be subject to the terms and
conditions set forth in this Agreement and in the Plan. The Committee
may, in its discretion, cancel all or any portion of any outstanding
restrictions prior to the expiration of the periods provided in Section
2(d).

(c)    Certificate; Restrictive Legend.   The
Grantee agrees that any certificate issued for Restricted Stock prior
to the lapse of any outstanding restrictions relating thereto shall be
inscribed with the following legend:

This certificate and the shares of stock
represented hereby are subject to the terms and conditions, including
forfeiture provisions and restrictions against transfer (the
"Restrictions"), contained in The Warnaco
Group, Inc. 2005 Stock Incentive Plan (the
"Plan") and an agreement entered into between
the registered owner and the Company (the
"Agreement"). Any attempt to dispose of these
shares in contravention of the Restrictions, 

1

including by way of sale, assignment,
transfer, pledge, hypothecation or otherwise, shall be null and void
and without effect.

(d)    Lapse of
Restrictions.   Except as may otherwise be provided herein, the
restrictions on transfer set forth in Section 2(b) shall lapse with
respect to thirty three and one-third percent (33-1/3%) of the
shares of Restricted Stock granted hereunder on
_________
(the "First Vesting Date") and with respect
to an additional thirty three and one-third percent (33-1/3%) of
such shares on each of the first and second anniversaries of the First
Vesting Date, so long as the Grantee is employed by or providing
services to the Company or an Affiliate as of the relevant date.

Upon each lapse of restrictions relating to Restricted Stock, the
Company shall issue to the Grantee or the Grantee's personal
representative a stock certificate representing a number of shares of
Stock, free of the restrictive legend described in Section 2(c), equal
to the number of shares of Restricted Stock with respect to which such
restrictions have lapsed. If certificates representing such Restricted
Stock shall have theretofore been delivered to the Grantee, such
certificates shall be returned to the Company, complete with any
necessary signatures or instruments of transfer prior to the issuance
by the Company of such unlegended shares of Stock.

(e)    Termination of Employment.   In the event that
the Grantee ceases to be employed by the Company and its Affiliates
prior to the lapsing of restrictions with respect to any portion of the
Restricted Stock granted hereunder, such portion of the Restricted
Stock held by the Grantee shall become free of such restrictions or be
forfeited as follows:

(i) If the Grantee's
employment is terminated due to his/her death or disability, as
determined by the Committee, all restrictions applicable to 50%
of the Restricted Stock then subject to this Award shall lapse as of
the effective date such termination of employment;

(ii) If the Grantee's employment is terminated
by the Company or an Affiliate for Cause, or if the Grantee voluntarily
terminates his/her employment, all such Restricted Stock then held by
the Grantee (or his/her legatees, personal representative or Permitted
Transferees) shall be forfeited as of the date of such termination;
and

(iii) If the Grantee's termination of
employment is for any other reason (including a Grantee's ceasing
to be employed by an Affiliate as a result of the sale of such
subsidiary or an interest in such Affiliate), all Restricted Stock then
held by the Grantee (or his/her legatees, personal representative or
Permitted Transferees) as of the date of such termination of employment
shall be forfeited as of the date of such termination unless otherwise
determined by the Committee in its sole discretion.

Restricted
Stock forfeited pursuant to this Section 2(e) shall be transferred to,
and reacquired by, the Company without payment of any consideration by
the Company, and neither the Grantee nor any of the Grantee's
successors, heirs, assigns, personal representatives or Permitted
Transferees shall thereafter have any further rights or interests in
such shares or certificates. If certificates containing restrictive
legends shall have theretofore been delivered to the Grantee (or
his/her legatees, personal representative or Permitted Transferee),
such certificates shall be returned to the Company, complete with any
necessary signatures or instruments of transfer.

(f)    Additional Forfeiture upon Termination for
Cause.   In addition to the forfeiture of Restricted Stock as
provided in Section 2(e), if the Grantee's termination of
employment or service is by the Company or an Affiliate for Cause (as
defined below), the Grantee shall forfeit, and shall return to the
Company without consideration, any Shares owned by the Grantee that
were previously subject to this Award and with respect to which the
restrictions applicable to such Shares lapsed during the six-month
period immediately prior to such termination. To the extent the Shares
subject to this Section 2(f) have been previously sold or otherwise
disposed of by the Grantee, the Grantee shall repay to the Company the
aggregate fair market value of such Shares on the date of such sale or
disposition; provided, however, that to the extent
such Shares have been previously sold or otherwise disposed of to a
Permitted Transferee, the Grantee, without being relieved of the
repayment obligation to be satisfied by such Permitted Transferees, may
cause such repayment obligation to be satisfied by such Permitted
Transferees.

2

[For purposes of this Agreement,
"Cause" means (i) inadequate performance of
the Grantee's duties and responsibilities with respect to the
Company or any subsidiary; (ii) insubordination; (iii) conduct
involving dishonesty with respect to the Company or any subsidiary;
(iv) incompetence in the performance of the Grantee's duties and
responsibilities with respect to the Company or any subsidiary; or (v)
such other conduct that the Committee shall determine constitutes
Cause. (definition may vary)]

(g)    Change in
Control.   The following provisions shall apply in the event of
a Change in Control (as defined below):

(i) If,
within one year following a Change in Control, the Optionee's
employment with the Company and its Affiliates terminates in a
"qualifying termination" (as defined below),
all restrictions applicable to such Restricted Stock then held by the
Grantee (or his/her legatees, personal representative or Permitted
Transferees, as applicable) shall immediately lapse as of the date of
such termination.

(ii) If there shall occur a
Change in Control pursuant to which this Restricted Stock Award is not
to be assumed, then all restrictions applicable to such Restricted
Stock then held by the Grantee (or his/her legatees, personal
representative or Permitted Transferees, as applicable) shall
immediately lapse as of immediately prior to such Change in
Control.

(iii) For purposes of this Agreement, a
"Change in Control" shall mean the occurrence
of any of the following events: (A) any
"person" (as such term is used in Sections
3(a)(9) and 13(d) of the Exchange Act or group of persons acting
jointly or in concert, but excluding a person who owns more than
5% of the outstanding shares of the Company as of May 23, 2005,
becomes a "beneficial owner" (as such term is
used in Rule 13d-3 promulgated under the Exchange Act) of more than
50% of the capital stock of any class or classes having general
voting power, in the absence of specified contingencies, to elect the
directors of the Company (such stock, the "Voting
Stock"); (B) all or substantially all of the assets of the
Company are disposed of pursuant to a merger, consolidation or other
transaction (unless the stockholders of the Company immediately prior
to such merger, consolidation or other transaction beneficially own,
directly or indirectly, in substantially the same proportion as they
owned the Voting Stock of the Company, all of the Voting Stock or other
ownership interests of the entity or entities, if any, that succeed to
the business of the Company); or (C) approval by the stockholders of
the Company of a complete liquidation or dissolution of all or
substantially all of the assets of the Company.

(iv) For purposes of this Agreement, a
"qualifying termination" shall mean a
termination of the Grantee's employment or service by the Company
or an Affiliate other than for Cause or by the Grantee for Good Reason.
For purposes of this Agreement, "Good Reason"
means any of the following acts or omissions that take place on or
after the occurrence of a Change in Control: (A) a change of the
Grantee's place of employment by more than 50 miles; or (B) a
reduction in the Grantee's base salary or target bonus.

(h)    Income Taxes.   The Grantee shall pay to the
Company promptly upon request, and in any event at the time the Grantee
recognizes taxable income in respect of the Restricted Stock (or, if
the Grantee makes an election under Section 83(b) of the Code, in
connection with such grant), an amount equal to the taxes the Company
determines it is required to withhold under applicable tax laws with
respect to the Restricted Stock. Such payment shall be made in the form
of cash, Shares already owned by the Grantee which were acquired more
than six months prior to the date of surrender under this Section 2(g),
Shares otherwise issuable upon the lapse of restrictions, or in a
combination of such methods. The Grantee shall promptly notify the
Company of any election made pursuant to Section 83(b) of the Code.

Section 3.    Miscellaneous

(a)    Notices.   Any and all notices, designations,
consents, offers, acceptances and any other communications provided for
herein shall be given in writing and shall be delivered either
personally or by registered or certified mail, postage prepaid, which
shall be addressed, in the case of the 

3

Company to the General Counsel of the Company
at the principal office of the Company and, in the case of the Grantee,
to Grantee's address appearing on the books of the Company or to
the Grantee's residence or to such other address as may be
designated in writing by the Grantee.

(b)    No Right to
Continued Employment.   Nothing in the Plan or in this Agreement
shall confer upon the Grantee any right to continue in the employ of
the Company or any subsidiary or shall interfere with or restrict in
any way the right of the Company and its subsidiaries, which is hereby
expressly reserved, to remove, terminate or discharge the Grantee at
any time for any reason whatsoever, with or without Cause.

(c)    Bound by Plan.   By signing this Agreement, the
Grantee acknowledges that he/she has received a copy of the Plan and
has had an opportunity to review the Plan and agrees to be bound by all
the terms and provisions of the Plan including, but not limited to,
Section 11(l) thereof (relating to compliance with applicable law and
regulations).

(d)    Successors.   The terms of this
Agreement shall be binding upon and inure to the benefit of the
Company, its successors and assigns, and of the Grantee and the
beneficiaries, executors, administrators, heirs and successors of the
Grantee.

(e)    Invalid Provision.   The invalidity
or unenforceability of any particular provision thereof shall not
affect the other provisions hereof, and this Agreement shall be
construed in all respects as if such invalid or unenforceable provision
had been omitted.

(f)    Modifications.   No change,
modification or waiver of any provision of this Agreement shall be
valid unless the same be in writing and signed by the parties
hereto.

(g)    Entire Agreement.   This Agreement
and the Plan contain the entire agreement and understanding of the
parties hereto with respect to the subject matter contained herein and
therein and supersede all prior communications, representations and
negotiations in respect thereto.

(h)    Governing
Law.   This Agreement and the rights of the Grantee hereunder
shall be construed and determined in accordance with the laws of the
State of Delaware.

(i)    Headings.   The headings
of the Sections hereof are provided for convenience only and are not to
serve as a basis for interpretation or construction, and shall not
constitute a part, of this Agreement.

(j)    Counterparts.   This Agreement may be executed in
counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument.

IN
WITNESS WHEREOF, this Agreement has been executed and delivered by the
parties hereto as of the ____ day of
____________,
20__.

THE WARNACO GROUP,
INC.

By: ____________________________________

Its: ____________________________________

[GRANTEE]

Signature: ________________________________

Printed Name: ____________________________

Address: ________________________________

________________________________________

4

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