FIRST AMENDMENT TO CREDIT AGREEMENT This FIRST AMENDMENT TO CREDIT AGREEMENT, dated as of October 14, 1997 (this "First Amendment"), among WARNACO INC. (the "U.S. Borrower"), WARNACO (HK) LTD. (the "Foreign Borrower"; together with the U.S. Borrower, the "Borrowers"), THE WARNACO GROUP, INC. ("Group"), the various financial institutions listed on the signature pages hereto (the "Lenders"), CITIBANK, N.A., as documentation agent (the "Documentation Agent") for the Lenders and THE BANK OF NOVA SCOTIA, as agent (the "Administrative Agent"; together with the Documentation Agent, the "Agents") for the Lenders. W I T N E S S E T H: WHEREAS, the Borrowers, Group, the Lenders and the Agents are parties to a Second Amended and Restated Credit Agreement, dated as of August 12, 1997 (as amended or otherwise modified to the date hereof, the "Existing Credit Agreement"); WHEREAS, the Borrowers and Group have requested that the Lenders amend and waive certain provisions of the Existing Credit Agreement in certain respects as set forth below; and WHEREAS, the Lenders have agreed, subject to the terms and conditions hereinafter set forth, to amend and waive such provisions of the Existing Credit Agreement in certain respects as provided below (the Existing Credit Agreement, as so amended and waived by this First Amendment, being referred to as the "Credit Agreement"); NOW, THEREFORE, in consideration of the agreements herein contained, the parties hereto agree as follows: PART I DEFINITIONS SUBPART 1.1. Certain Definitions. Terms for which meanings are provided in the Existing Credit Agreement are, unless otherwise defined herein or the context otherwise requires, used in this First Amendment with such meanings. PART II AMENDMENTS AND WAIVERS TO THE EXISTING CREDIT AGREEMENT Effective on (and subject to the occurrence of) the First Amendment Effective Date, the Existing Credit Agreement is hereby amended and certain provisions of the Existing Credit Agreement are hereby waived in accordance with the terms of this Part II; except as so amended or waived, the Existing Credit Agreement shall continue in full force and effect. SUBPART 2.1. Section 1.1 of the Existing Credit Agreement is hereby amended by inserting the following definitions in such Section in the appropriate alphabetical sequence: "Amendment No. 1" means the First Amendment, dated as of October 14, 1997, to this Agreement among the Borrowers, Group, the Lenders parties thereto, the Documentation Agent and the Administrative Agent. "First Amendment Effective Date" is defined in Subpart 3.1 of Amendment No. 1. "USCA Letter Waiver" means the first Letter Waiver to the U.S. Credit Agreement, dated as October 14, 1997, a copy of which is annexed to Amendment No. 1 as Exhibit A. SUBPART 2.2. Section 1.1 of the Existing Credit Agreement is hereby further amended by amending the definition of "U.S. Credit Agreement" in its entirety to read as follows: ""U.S. Credit Agreement" means the Credit Agreement, dated as of August 12, 1997, among the U.S. Borrower, Group, the initial lenders named therein, Scotiabank and Citibank, as managing agents, Citibank, as documentation agent, and Scotiabank, as administrative agent, competitive bid agent, swing line bank and an issuing bank, as in effect on the Effective Date and as modified by USCA Letter Waiver, and as further amended, restated or waived from time to time with the consent of the Required Lenders hereunder solely for purposes of this Agreement, and regardless of whether such U.S. Credit Agreement is terminated, unless in connection with such termination a replacement credit facility satisfactory to the Required Lenders hereunder is entered into, in which case the affirmative and negative covenants in such facility shall become the subject of this Agreement." SUBPART 2.3. Waiver of Guaranty Delivery. The requirements contained in Section 8.1.2 of the Existing Credit Agreement are hereby waived, but only to the same extent and upon the same -2- terms that the requirements under Section 5.01(k) of the U.S. Credit Agreement have been waived under USCA Letter Waiver by the Required Lenders under (and as defined in) the U.S. Credit Agreement. PART III CONDITIONS TO EFFECTIVENESS SUBPART 3.1. First Amendment Effective Date. This First Amendment (and the amendments and waivers contained herein) shall become effective, and shall thereafter be referred to as "Amendment No. 1", on the date (the "First Amendment Effective Date") when all of the conditions set forth in this Subpart 3.1 have been satisfied. SUBPART 3.1.1. Execution of Counterparts. The Administrative Agent shall have received counterparts of this First Amendment, duly executed and delivered on behalf of the Borrowers, Group and the Required Lenders. Each Lender's execution and delivery of this First Amendment shall also constitute such Lender's approval to the form and substance of USCA Letter Waiver. SUBPART 3.1.2. U.S. Credit Agreement. The Administrative Agent shall have received evidence satisfactory to it that USCA Letter Waiver in the form attached as Exhibit A hereto has become effective pursuant to the terms thereof. SUBPART 3.1.3. Affirmation and Consent. The Administrative Agent shall have received an Affirmation and Consent, substantially in the form of Exhibit B hereto, duly executed and delivered by Group and each Domestic Subsidiary. SUBPART 3.1.4. Legal Details, etc. All documents executed or submitted pursuant hereto shall be satisfactory in form and substance to the Administrative Agent and its counsel. The Administrative Agent and its counsel shall have received all information and such counterpart originals or such certified or other copies or such materials, as the Administrative Agent or its counsel may reasonably request, and all legal matters incident to the transactions contemplated by this First Amendment shall be satisfactory to the Administrative Agent and its counsel. PART IV MISCELLANEOUS SUBPART 4.1. Cross-References. References in this First Amendment to any Part or Subpart are, unless otherwise specified -3- or otherwise required by the context, to such Part or Subpart of this First Amendment. SUBPART 4.2. Loan Document Pursuant to Existing Credit Agreement. This First Amendment is a Loan Document executed pursuant to the Existing Credit Agreement and shall be construed, administered and applied in accordance with all of the terms and provisions of the Existing Credit Agreement. SUBPART 4.3. Representations and Warranties. The Borrower hereby represents and warrants that both before and after giving effect to this First Amendment, the statements contained in Section 6.2.1 of the Existing Credit Agreement are true and correct in all material respects. SUBPART 4.4. Successors and Assigns. This First Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. SUBPART 4.5. Counterparts. This First Amendment may be executed by the parties hereto in several counterparts, each of which when executed and delivered shall be deemed to be an original and all of which shall constitute together but one and the same agreement. SUBPART 4.6. Governing Law. THIS FIRST AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK. -4- IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be executed by their respective officers as of the day and year first above written. WARNACO INC. By /s/ STANLEY SILVERSTEIN ----------------------------- Title: WARNACO (HK) LTD. By /s/ STANLEY SILVERSTEIN ----------------------------- Title: THE WARNACO GROUP, INC. By /s/ STANLEY SILVERSTEIN ----------------------------- Title: THE BANK OF NOVA SCOTIA, as Administrative Agent and as Lender By_____________________________ Title: CITIBANK, N.A., as Documentation Agent and as Lender By ____________________________ Title: _______________________________ [NAME OF INSTITUTION] By_____________________________ -5- IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be executed by their respective officers as of the day and year first above written. WARNACO INC. By_____________________________ Title: WARNACO (HK) LTD. By_____________________________ Title: THE WARNACO GROUP, INC. By_____________________________ Title: THE BANK OF NOVA SCOTIA, as Administrative Agent and as Lender By /s/ _____________________________ Title: Senior Relationship Manager CITIBANK, N.A., as Documentation Agent and as Lender By /s/ _____________________________ Title: Attorney-in-Fact _______________________________ [NAME OF INSTITUTION] By_____________________________ -5- IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be executed by their respective officers as of the day and year first above written. WARNACO INC. By_____________________________ Title: WARNACO (HK) LTD. By_____________________________ Title: THE WARNACO GROUP, INC. By_____________________________ Title: THE BANK OF NOVA SCOTIA, as Administrative Agent and as Lender By _____________________________ Title: CITIBANK, N.A., as Documentation Agent and as Lender By _____________________________ Title: UNION BANK OF CALIFORNIA, N.A. _______________________________ [NAME OF INSTITUTION] By /s/ LEONARDO R. FERNANDEZ _____________________________ Title: Credit Officer -5- IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be executed by their respective officers as of the day and year first above written. WARNACO INC. By_____________________________ Title: WARNACO (HK) LTD. By_____________________________ Title: THE WARNACO GROUP, INC. By_____________________________ Title: THE BANK OF NOVA SCOTIA, as Administrative Agent and as Lender By_____________________________ Title: CITIBANK, N.A., as Documentation Agent and as Lender By ____________________________ Title: THE BANK OF NEW YORK _______________________________ [NAME OF INSTITUTION] By /s/ ELIZA S. ADAMS _____________________________ Name: Eliza S. Adams Title: Vice President -5- IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be executed by their respective officers as of the day and year first above written. WARNACO INC. By_____________________________ Title: WARNACO (HK) LTD. By_____________________________ Title: THE WARNACO GROUP, INC. By_____________________________ Title: THE BANK OF NOVA SCOTIA, as Administrative Agent and as Lender By_____________________________ Title: CITIBANK, N.A., as Documentation Agent and as Lender By ____________________________ Title: BANK OF TOKYO-MITSUBISHI TRUST CO _______________________________ [NAME OF INSTITUTION] By /s/ JIM BROWN _____________________________ Name: Jim Brown Title: Vice President -5- IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be executed by their respective officers as of the day and year first above written. WARNACO INC. By_____________________________ Title: WARNACO (HK) LTD. By_____________________________ Title: THE WARNACO GROUP, INC. By_____________________________ Title: THE BANK OF NOVA SCOTIA, as Administrative Agent and as Lender By_____________________________ Title: CITIBANK, N.A., as Documentation Agent and as Lender By ____________________________ Title: ______________________________ BANKBOSTON, N.A. By /s/ _____________________________ Title: Director -5- IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be executed by their respective officers as of the day and year first above written. WARNACO INC. By_____________________________ Title: WARNACO (HK) LTD. By_____________________________ Title: THE WARNACO GROUP, INC. By_____________________________ Title: THE BANK OF NOVA SCOTIA, as Administrative Agent and as Lender By_____________________________ Title: CITIBANK, N.A., as Documentation Agent and as Lender By ____________________________ Title: COMMERZBANK AG, New York and/or Grand Cayman Branches By /s/ ROBERT J. DONOHUE _____________________________ Name: Robert J. Donohue Title: Vice President By /s/ PETER T. DOYLE _____________________________ Name: Peter T. Doyle Title: Assistant Treasurer -5- IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be executed by their respective officers as of the day and year first above written. WARNACO INC. By_____________________________ Title: WARNACO (HK) LTD. By_____________________________ Title: THE WARNACO GROUP, INC. By_____________________________ Title: THE BANK OF NOVA SCOTIA, as Administrative Agent and as Lender By_____________________________ Title: CITIBANK, N.A., as Documentation Agent and as Lender By ____________________________ Title: CORESTATES BANK, N.A. _______________________________ [NAME OF INSTITUTION] By /s/ IRENE ROSEN MARKS _____________________________ Name: Irene Rosen Marks Title: Vice President -5- IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be executed by their respective officers as of the day and year first above written. WARNACO INC. By_____________________________ Title: WARNACO (HK) LTD. By_____________________________ Title: THE WARNACO GROUP, INC. By_____________________________ Title: THE BANK OF NOVA SCOTIA, as Administrative Agent and as Lender By_____________________________ Title: CITIBANK, N.A., as Documentation Agent and as Lender By ____________________________ Title: CREDITO ITALIANO By /s/ ______________________________ Title: First Vice President & Deputy Manager By /s/ ______________________________ Title: First Vice President -5- IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be executed by their respective officers as of the day and year first above written. WARNACO INC. By_____________________________ Title: WARNACO (HK) LTD. By_____________________________ Title: THE WARNACO GROUP, INC. By_____________________________ Title: THE BANK OF NOVA SCOTIA, as Administrative Agent and as Lender By_____________________________ Title: CITIBANK, N.A., as Documentation Agent and as Lender By ____________________________ Title: THE DAI-ICHI KANGYO BANK, LIMITED By /s/ _____________________________ Title: Vice President -5- IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be executed by their respective officers as of the day and year first above written. WARNACO INC. By_____________________________ Title: WARNACO (HK) LTD. By_____________________________ Title: THE WARNACO GROUP, INC. By_____________________________ Title: THE BANK OF NOVA SCOTIA, as Administrative Agent and as Lender By_____________________________ Title: CITIBANK, N.A., as Documentation Agent and as Lender By_____________________________ Title: FIRST UNION NATIONAL BANK _______________________________ [NAME OF INSTITUTION] By /s/ RICHARD _____________________________ Title: Senior Portfolio Manager -5- IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be executed by their respective officers as of the day and year first above written. WARNACO INC. By_____________________________ Title: WARNACO (HK) LTD. By_____________________________ Title: THE WARNACO GROUP, INC. By_____________________________ Title: THE BANK OF NOVA SCOTIA, as Administrative Agent and as Lender By_____________________________ Title: CITIBANK, N.A., as Documentation Agent and as Lender By ____________________________ Title: FLEET BANK, N.A. _______________________________ [NAME OF INSTITUTION] By /s/ JOSEPH J. _____________________________ Title: Vice President -5- IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be executed by their respective officers as of the day and year first above written. WARNACO INC. By_____________________________ Title: WARNACO (HK) LTD. By_____________________________ Title: THE WARNACO GROUP, INC. By_____________________________ Title: THE BANK OF NOVA SCOTIA, as Administrative Agent and as Lender By_____________________________ Title: CITIBANK, N.A., as Documentation Agent and as Lender By ____________________________ Title: THE FUJI BANK, LIMITED NEW YORK BRANCH By /s/ RAYMOND VENTURA _____________________________ Title: Vice President & Manager -5- IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be executed by their respective officers as of the day and year first above written. WARNACO INC. By_____________________________ Title: WARNACO (HK) LTD. By_____________________________ Title: THE WARNACO GROUP, INC. By_____________________________ Title: THE BANK OF NOVA SCOTIA, as Administrative Agent and as Lender By_____________________________ Title: CITIBANK, N.A., as Documentation Agent and as Lender By ____________________________ Title: THE INDUSTRIAL BANK OF JAPAN, INC. NEW YORK BRANCH By /s/ J. KENNETH BIEGEN _____________________________ Name: J. Kenneth Biegen Title: Senior Vice President -5- IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be executed by their respective officers as of the day and year first above written. WARNACO INC. By_____________________________ Title: WARNACO (HK) LTD. By_____________________________ Title: THE WARNACO GROUP, INC. By_____________________________ Title: THE BANK OF NOVA SCOTIA, as Administrative Agent and as Lender By_____________________________ Title: CITIBANK, N.A., as Documentation Agent and as Lender By ____________________________ Title: MARINE MIDLAND BANK _______________________________ [NAME OF INSTITUTION] By /s/ A. D. COLLINS _____________________________ Name: A. D. Collins -5- IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be executed by their respective officers as of the day and year first above written. WARNACO INC. By_____________________________ Title: WARNACO (HK) LTD. By_____________________________ Title: THE WARNACO GROUP, INC. By_____________________________ Title: THE BANK OF NOVA SCOTIA, as Administrative Agent and as Lender By_____________________________ Title: CITIBANK, N.A., as Documentation Agent and as Lender By ____________________________ Title: MERITA BANK LTD. _______________________________ By /s/ _____________________________ Title: Vice President By /s/ _____________________________ Title: Vice President -5- IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be executed by their respective officers as of the day and year first above written. WARNACO INC. By_____________________________ Title: WARNACO (HK) LTD. By_____________________________ Title: THE WARNACO GROUP, INC. By_____________________________ Title: THE BANK OF NOVA SCOTIA, as Administrative Agent and as Lender By_____________________________ Title: CITIBANK, N.A., as Documentation Agent and as Lender By ____________________________ Title: MORGAN GUARANTY TRUST COMPANY OF NEW YORK _______________________________ [NAME OF INSTITUTION] By /s/ JAMES E. CONDON _____________________________ Name: James E. Condon Title: Vice President -5- IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be executed by their respective officers as of the day and year first above written. WARNACO INC. By_____________________________ Title: WARNACO (HK) LTD. By_____________________________ Title: THE WARNACO GROUP, INC. By_____________________________ Title: THE BANK OF NOVA SCOTIA, as Administrative Agent and as Lender By_____________________________ Title: CITIBANK, N.A., as Documentation Agent and as Lender By ____________________________ Title: NATIONSBANK, N.A. _______________________________ [NAME OF INSTITUTION] By /s/ DAVID H. DINKINS _____________________________ Name: David H. Dinkins Title: Vice President -5- IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be executed by their respective officers as of the day and year first above written. WARNACO INC. By_____________________________ Title: WARNACO (HK) LTD. By_____________________________ Title: THE WARNACO GROUP, INC. By_____________________________ Title: THE BANK OF NOVA SCOTIA, as Administrative Agent and as Lender By_____________________________ Title: CITIBANK, N.A., as Documentation Agent and as Lender By ____________________________ Title: THE SANWA BANK LIMITED _______________________________ [NAME OF INSTITUTION] By /s/ _____________________________ -5- IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be executed by their respective officers as of the day and year first above written. WARNACO INC. By_____________________________ Title: WARNACO (HK) LTD. By_____________________________ Title: THE WARNACO GROUP, INC. By_____________________________ Title: THE BANK OF NOVA SCOTIA, as Administrative Agent and as Lender By_____________________________ Title: CITIBANK, N.A., as Documentation Agent and as Lender By ____________________________ Title: SOCIETE GENERALE _______________________________ [NAME OF INSTITUTION] By /s/ SEDARE CORADIN _____________________________ Title: Vice President -5- IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be executed by their respective officers as of the day and year first above written. WARNACO INC. By_____________________________ Title: WARNACO (HK) LTD. By_____________________________ Title: THE WARNACO GROUP, INC. By_____________________________ Title: THE BANK OF NOVA SCOTIA, as Administrative Agent and as Lender By_____________________________ Title: CITIBANK, N.A., as Documentation Agent and as Lender By ____________________________ Title: WACHOVIA BANK, N.A. _______________________________ [NAME OF INSTITUTION] By /s/ J. BARWIS _____________________________ -5-