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<SEC-DOCUMENT>0000950123-05-008115.txt : 20050701
<SEC-HEADER>0000950123-05-008115.hdr.sgml : 20050701
<ACCEPTANCE-DATETIME>20050701154433
ACCESSION NUMBER:		0000950123-05-008115
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20050629
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20050701
DATE AS OF CHANGE:		20050701

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AMERICAN REAL ESTATE PARTNERS L P
		CENTRAL INDEX KEY:			0000813762
		STANDARD INDUSTRIAL CLASSIFICATION:	OPERATORS OF NONRESIDENTIAL BUILDINGS [6512]
		IRS NUMBER:				133398766
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-09516
		FILM NUMBER:		05933186

	BUSINESS ADDRESS:	
		STREET 1:		100 SOUTH BEDFORD ROAD
		CITY:			MT KISCO
		STATE:			NY
		ZIP:			10549
		BUSINESS PHONE:		9142427700
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>y10542e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>8-K</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>








<P align="center" style="font-size: 14pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>

<DIV align="center" style="font-size: 12pt"><B>WASHINGTON, D.C. 20549</B>
</DIV>


<P align="center" style="font-size: 10pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>


<P align="center" style="font-size: 18pt"><B>FORM 8-K</B>


<P align="center" style="font-size: 12pt"><B>CURRENT REPORT<BR>
Pursuant to Section&nbsp;13 or 15(d) of the<BR>
Securities Exchange Act of 1934</B>



<P align="center" style="font-size: 10pt">Date of Report (Date of Earliest Event Reported): June&nbsp;29, 2005


<P align="center" style="font-size: 24pt"><B><U>American Real Estate Partners, L.P.</U></B>


<DIV align="center" style="font-size: 10pt">(Exact name of registrant as specified in its charter)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Delaware</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>1-9516</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>13-3398766</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State or other jurisdiction of<BR>
incorporation)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
(Commission File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(IRS Employer<BR>
Identification No.)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">100 South Bedford Road, Mt. Kisco, NY
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">10549</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Address of principal executive offices)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Zip Code)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt">Registrant&#146;s telephone number, including area code: <B>(914)&nbsp;242-7700</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>N/A</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" nowrap>(Former name or former address, if changed since last report)</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt">Check the appropriate box below if the Form&nbsp;8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions:



<P align="left" style="font-size: 10pt"><FONT face="Wingdings">&#111;</FONT> Written communication pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)



<P align="left" style="font-size: 10pt"><FONT face="Wingdings">&#111;</FONT> Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act
(17 CFR 240.14a-12)



<P align="left" style="font-size: 10pt"><FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))



<P align="left" style="font-size: 10pt"><FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))



<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>

<DIV style="font-family: 'Times New Roman',Times,serif">










<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD colspan="9"><A HREF="#000"> Item&nbsp;1.01 Entry into a Material Definitive Agreement</A></TD></TR>
<TR><TD colspan="9"><A HREF="#001">Item&nbsp;8.01 Other Events</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002">Item&nbsp;9.01 Financial Statements and Exhibits</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003"> SIGNATURES</A></TD></TR>
<TR><TD colspan="9"><A HREF="y10542exv10w1.htm">EX-10.1: ASSET PURCHASE AGREEMENT</A></TD></TR>
<TR><TD colspan="9"><A HREF="y10542exv10w2.htm">EX-10.2: EQUITY COMMITMENT AGREEMENT</A></TD></TR>
<TR><TD colspan="9"><A HREF="y10542exv10w3.htm">EX-10.3: RIGHTS OFFERING SPONSOR AGREEMENT</A></TD></TR>
<TR><TD colspan="9"><A HREF="y10542exv99w1.htm">EX-99.1: PRESS RELEASE</A></TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>









<P align="left" style="font-size: 10pt"><B>Section&nbsp;1 &#150; Registrant&#146;s Business and Operations</B>


<!-- link1 " Item&nbsp;1.01 Entry into a Material Definitive Agreement" -->
<DIV align="left"><A NAME="000"></A></DIV>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Item&nbsp;1.01 Entry into a Material Definitive Agreement</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On June&nbsp;29, 2005, the U.S. Bankruptcy Court approved the sale of substantially all the assets
of WestPoint Stevens Inc., a home fashions consumer products company, to us pursuant to an Asset
Purchase Agreement by and among WS Textile Co., Inc., New Textile One, Inc., New Textile Two, Inc.,
Textile Co., Inc., WestPoint Stevens Inc., WestPoint Stevens Inc. I, WestPoint Stevens Stores Inc.,
and J.P. Stevens Enterprises, Inc. WS Textile Co., New Textile One, New Textile Two, and Textile Co. each are wholly-owned
subsidiaries of American Real Estate Holdings Limited Partnership, or AREH, our subsidiary limited
partnership.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the Asset Purchase Agreement, we will provide consideration valued at approximately $703
million, as follows: (i)&nbsp;the payment of the lesser of (a) $120&nbsp;million or (b)&nbsp;the amount necessary
to pay in full all outstanding indebtedness under the debtor in possession credit agreement, dated
as of June&nbsp;5, 2003, as amended, among WestPoint Stevens and certain of its subsidiaries, Bank of
America, N.A., Wachovia Bank, National Association and certain other lenders (the &#147;DIP Credit
Facility&#148;); (ii)&nbsp;35% of newly issued shares of common stock of WS Textile (the &#147;Common Stock&#148;) will
be distributed to or on behalf of the lenders under WestPoint&#146;s first lien credit facility (the
&#147;First Lien Lenders&#148;); (iii)&nbsp;subscription rights to acquire up to an additional 47.5% of the Common
Stock (the &#147;Subscription Rights&#148;) for an aggregate purchase price of $125&nbsp;million will be
distributed to or on behalf of the First Lien Lenders and, to the extent determined by the U.S.
Bankruptcy Court for the Southern District of New York (the &#147;Bankruptcy Court&#148;), the lenders under
WestPoint&#146;s second lien credit facility (the &#147;Second Lien Lenders&#148;); (iv)&nbsp;tender or a back to back
standby letter of credit or cash collateral, not to exceed in the aggregate $35&nbsp;million, to the
administrative agent under the DIP Credit Facility; (v)&nbsp;the satisfaction of certain other secured
claims which are senior to the first lien debt; (vi)&nbsp;the assumption of other specified liabilities
of WestPoint, as set forth in the Asset Purchase Agreement; and (vii) $3&nbsp;million in respect of
wind-down costs.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We own approximately 40% of the debt under Westpoint&#146;s first lien credit facility and 51% of
the debt under Westpoint&#146;s second lien credit facility.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the Asset Purchase Agreement, WS Textile Co. entered into an equity
commitment agreement (the &#147;Equity Commitment Agreement&#148;) with Textile Holding LLC (&#147;Textile
Holding&#148;), AREH and Aretex LLC, pursuant to which Textile Holding agreed, among other things, to
purchase 5,250,000 shares of Common Stock (representing 17.5% of the Common Stock) for a purchase
price of $187&nbsp;million, such purchase to occur simultaneously with the closing of the transactions
contemplated by the Asset Purchase Agreement. Textile Holding and Aretex each are wholly owned subsidiaries of AREH.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Also, in connection with the Asset Purchase Agreement, WS Textile Co. entered into a rights
offering sponsor agreement (the &#147;Rights Offering Sponsor Agreement&#148;) with AREH, pursuant to which
AREH agreed to purchase, through a direct or indirect subsidiary, at the rights offering exercise
price, a number of shares of Common Stock equal to the number of shares of Common Stock with
respect to which Subscription Rights have not been exercised by a specified date.



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The closing of the transactions is expected to occur by August&nbsp;31, 2005. The Asset Purchase
Agreement provides that the closing is subject to customary and other closing conditions.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon the closing of the agreement, we and our affiliates expect to own in excess of 50% of the
outstanding shares of WS Textile Co. and may own up to 79%, to the extent the subscription rights
are not exercised.



<P align="left" style="font-size: 10pt"><B>Section&nbsp;8 &#150; Other Events</B>


<!-- link1 "Item&nbsp;8.01 Other Events" -->
<DIV align="left"><A NAME="001"></A></DIV>

<P align="left" style="font-size: 10pt"><B>Item&nbsp;8.01 Other Events.</B>



<P align="left" style="font-size: 10pt">On June&nbsp;30, 2005, we issued a joint press release with WestPoint Stevens, a copy of which is filed
as Exhibit&nbsp;99.1.



<P align="left" style="font-size: 10pt"><B>Section&nbsp;9 &#150; Financial Statements and Exhibits</B>


<!-- link1 "Item&nbsp;9.01 Financial Statements and Exhibits" -->
<DIV align="left"><A NAME="002"></A></DIV>

<P align="left" style="font-size: 10pt"><B>Item&nbsp;9.01 Financial Statements and Exhibits</B>



<P align="left" style="font-size: 10pt">(c)&nbsp;Exhibits



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">10.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Asset Purchase Agreement, dated June&nbsp;23, 2005, by and among WS Textile Co., Inc., New
Textile One, Inc., New Textile Two, Inc., Textile Co., Inc., WestPoint Stevens Inc., WestPoint
Stevens Inc. I, WestPoint Stevens Stores Inc., and J.P. Stevens Enterprises, Inc.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">10.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Equity Commitment Agreement, dated June&nbsp;23, 2005, by and among WS Textile Co. Inc., Textile
Holding LLC, American Real Estate Holdings Limited Partnership and
Aretex LLC</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">10.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Rights Offering Sponsor Agreement, dated June&nbsp;23, 2005, by and between WS Textile Co., Inc.
and American Real Estate Holdings Limited Partnership</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">99.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Press Release dated June&nbsp;30, 2005</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">&#091;remainder of page intentionally left blank; signature page follows&#093;



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<!-- link1 " SIGNATURES" -->
<DIV align="left"><A NAME="003"></A></DIV>

<P align="center" style="font-size: 10pt">SIGNATURES



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="36%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left">AMERICAN REAL ESTATE PARTNERS, L.P.<BR>
(Registrant)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">American Property Investors, Inc.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">General Partner</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/&nbsp;&nbsp;John P. Saldarelli</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">John P. Saldarelli</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice President, Chief Financial</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Officer, Secretary and Treasurer</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date: June&nbsp;30, 2005</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
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</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>y10542exv10w1.htm
<DESCRIPTION>EX-10.1: ASSET PURCHASE AGREEMENT
<TEXT>
<HTML>
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<TITLE>EX-10.1</TITLE>
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<TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Exhibit
10.1</B></DIV></TD>
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<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





<P align="center" style="font-size: 10pt">ASSET PURCHASE AGREEMENT



<P align="center" style="font-size: 10pt">by and among



<P align="center" style="font-size: 10pt">WS TEXTILE CO., INC.,



<P align="center" style="font-size: 10pt">NEW TEXTILE ONE, INC.,



<P align="center" style="font-size: 10pt">NEW TEXTILE TWO, INC.,



<P align="center" style="font-size: 10pt">TEXTILE CO., INC.,



<P align="center" style="font-size: 10pt">WESTPOINT STEVENS INC.,



<P align="center" style="font-size: 10pt">WESTPOINT STEVENS INC. I,



<P align="center" style="font-size: 10pt">WESTPOINT STEVENS STORES INC.,



<P align="center" style="font-size: 10pt">AND



<P align="center" style="font-size: 10pt">J.P. STEVENS ENTERPRISES, INC.



<P align="center" style="font-size: 10pt">Dated as of June&nbsp;23, 2005


<P>
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<P align="center" style="font-size: 10pt">&nbsp;
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<P align="center" style="font-size: 10pt"><U><B>TABLE OF CONTENTS</B></U>


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    <TD width="80%">&nbsp;</TD>
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    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Page</B></TD>
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    <TD colspan="7" valign="top" align="left">Article&nbsp;I. DEFINITIONS</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1.1.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certain Definitions
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1.2.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Terms Defined Elsewhere in this Agreement
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">12</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1.3.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Other Definitional and Interpretive Matters
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">13</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="7" valign="top" align="left">Article&nbsp;II. PURCHASE AND SALE OF ASSETS; ASSUMPTION OF LIABILITIES</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">14</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2.1.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Purchase and Sale of Assets
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">14</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2.2.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Excluded Assets
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">17</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2.3.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Assumption of Liabilities
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">18</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2.4.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Excluded Liabilities
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">20</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2.5.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Further Conveyances and Assumptions
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">21</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="7" valign="top" align="left">Article&nbsp;III. CONSIDERATION</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">22</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">3.1.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consideration
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">22</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">3.2.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Purchase Price Deposit
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">22</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">3.3.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Payment of Purchase Price
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">23</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="7" valign="top" align="left">Article&nbsp;IV. CLOSING AND TERMINATION</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">24</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.1.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Closing Date
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">24</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.2.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Deliveries by Sellers
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">24</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.3.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Deliveries by Purchaser
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">25</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.4.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Termination of Agreement
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.5.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Procedure Upon Termination
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">27</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.6.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Effect of Termination
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">27</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="7" valign="top" align="left">Article&nbsp;V. REPRESENTATIONS AND WARRANTIES OF SELLERS</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">28</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.1.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Organization and Good Standing
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">28</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.2.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Authorization of Agreement
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">28</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.3.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Conflicts; Consents of Third Parties
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">28</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.4.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Reports; Financial Statements
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">29</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.5.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title to Purchased Assets
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">30</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.6.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Taxes
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">30</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.7.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Real and Personal Properties
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">31</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.8.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Intellectual Property
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">33</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.9.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Contracts
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">34</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
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<P align="center" style="font-size: 10pt">- i -
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.10.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employee Benefits
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">34</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.11.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employment Matters
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">35</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.12.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Litigation
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">35</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.13.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Compliance with Laws; Permits
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">36</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.14.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Environmental Matters
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">36</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.15.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Financial Advisors
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">36</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.16.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Representations/Warranties; Schedules
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">36</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.17.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Sufficiency of Assets
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">37</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.18.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Equipment
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">37</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.19.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">No Casualty
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">37</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.20.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Insurance
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">37</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.21.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Customers
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">37</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.22.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Suppliers
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">37</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.23.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Affiliate Transactions
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">37</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.24.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Product Warranty
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">38</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.25.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Inventories
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">38</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.26.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Notes and Accounts Receivable
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">38</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.27.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Bank Accounts
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">38</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.28.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Signatories
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">38</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.29.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Foreign and Non-Debtor Affiliates
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">38</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.30.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Labor Matters
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">38</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.31.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employee Matters
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">39</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.32.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certain Payments
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">40</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="7" valign="top" align="left">Article&nbsp;VI. REPRESENTATIONS AND WARRANTIES OF PARENT, HOLDCO ONE, HOLDCO TWO AND PURCHASER</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">40</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">6.1.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Organization and Good Standing
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">40</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">6.2.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Authorization of Agreement
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">40</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">6.3.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Authorized Capital
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">40</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">6.4.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Conflicts; Consents of Third Parties
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">41</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">6.5.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Litigation
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">42</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">6.6.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Financial Advisors
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">42</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">6.7.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Financial Capability
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">42</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">6.8.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Condition of the Business
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">42</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="7" valign="top" align="left">Article&nbsp;VII. post execution MATTERS</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">42</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">7.1.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Conduct After Execution of Agreement
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">42</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">7.2.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Expense Reimbursement
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">43</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">7.3.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Bankruptcy Court Filings
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">43</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="7" valign="top" align="left">Article&nbsp;VIII. COVENANTS</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">44</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">8.1.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Access to Information
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">44</TD>
    <TD nowrap valign="top">&nbsp;</TD>
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<P align="center" style="font-size: 10pt">- ii -
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<DIV style="font-family: 'Times New Roman',Times,serif">

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    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Page</B></TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">8.2.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Conduct of the Business Pending the Closing
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">47</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">8.3.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consents, Lien Releases and Notices
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">50</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">8.4.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Regulatory Approvals
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">50</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">8.5.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Further Assurances
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">51</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">8.6.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Confidentiality Following the Closing.
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">52</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">8.7.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Equity Commitment and Rights Offering
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">52</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">8.8.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Preservation of Records
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">52</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">8.9.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Financial Statements
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">53</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">8.10.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedules
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">54</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">8.11.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">No Inconsistent Action
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">54</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">8.12.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Accepted or Rejected Contracts
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">54</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">8.13.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Specific Enforcement of Covenants
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">55</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">8.14.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Transaction
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">55</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">8.15.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Permits
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">55</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">8.16.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Indemnity Agreement
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">56</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="7" valign="top" align="left">Article&nbsp;IX. EMPLOYEES AND EMPLOYEE BENEFITS</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">56</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">9.1.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employment
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">56</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="7" valign="top" align="left">Article&nbsp;X. CONDITIONS TO CLOSING</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">58</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.1.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Conditions Precedent to Obligations of Parent and Purchaser
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">58</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.2.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Conditions Precedent to Obligations of Sellers
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">60</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.3.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Conditions Precedent to Obligations of Parent, Purchaser and Sellers
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">61</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.4.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Frustration of Closing Conditions
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">61</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.5.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Force Majeure
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">61</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="7" valign="top" align="left">Article&nbsp;XI. TAXES</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">62</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">11.1.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Transfer Taxes
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">62</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">11.2.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Purchase Price Allocation
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">62</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">11.3.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Tax Reporting
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">62</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">11.4.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Cooperation and Audits
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">63</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="7" valign="top" align="left">Article&nbsp;XII. MISCELLANEOUS</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">63</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">12.1.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">No Survival of Representations and Warranties
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">63</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">12.2.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Expenses
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">63</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">12.3.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Injunctive Relief
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">64</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">12.4.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exclusive Remedy
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">64</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">12.5.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Submission to Jurisdiction; Consent to Service of Process
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">64</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">12.6.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Waiver of Right to Trial by Jury
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">65</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">12.7.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Entire Agreement; Amendments and Waivers
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">65</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">12.8.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Governing Law
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">65</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">12.9.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Notices
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">65</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">- iii -
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Page</B></TD>
</TR>

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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">12.10.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Severability
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">66</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">12.11.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Binding Effect; Assignment
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">66</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">12.12.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Non-Recourse
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">67</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">12.13.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Publicity
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">67</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">12.14.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Counterparts
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">67</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
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</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">EXHIBITS</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exhibit&nbsp;A
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Escrow Agreement</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exhibit&nbsp;B
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Registration Rights Agreement</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exhibit&nbsp;C
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Rights Offering</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exhibit&nbsp;D
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Subscription Agreement and Investor Questionnaire and Certification</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exhibit&nbsp;E
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Shares and Rights Distribution Mechanism</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exhibit&nbsp;F
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Bill of Sale</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exhibit&nbsp;G
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Assignment and Assumption Agreement</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exhibit&nbsp;H
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Assignment of Trademarks</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exhibit&nbsp;I
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Assignment of Patents</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exhibit&nbsp;J
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Assignment of Copyrights</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exhibit&nbsp;K
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Assignment of Domain Names</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exhibit&nbsp;L
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Special Warranty Deed</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exhibit&nbsp;M
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Quit Claim Deed</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exhibit&nbsp;N
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Assignment and Assumption of Contracts and Real Property Leases</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exhibit&nbsp;O
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Certificate or Certificates (Seller)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exhibit&nbsp;P
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Certificate or Certificates (Purchaser)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exhibit&nbsp;Q
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Equity Commitment Agreement</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exhibit&nbsp;R
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Rights Offering Sponsor Agreement</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exhibit&nbsp;S
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">J.P. Stevens &#038; Co., Inc. Indemnity Agreement</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">SCHEDULES</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;I
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Company&#146;s Subsidiaries</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;1.1(a)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Excluded Subsidiaries</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;1.1(b)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Knowledge of Sellers</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;5.3(a)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Conflicts</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;5.3(b)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Third Party Consents</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;5.4
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Reports; Financial Statements</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;5.5
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title to Purchased Assets</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;5.6(a)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Taxes</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;5.7(a)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Material Owned Real Property</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;5.7(b)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Leased Real Property</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;5.7(d)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Owned Real Property-Exceptions</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;5.7(e)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Taxes on Real Properties</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;5.8(a)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Intellectual Property-Owned</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">- iv -
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;5.8(b)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Intellectual Property-Licenses</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;5.8(c)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Intellectual Property-Liens</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;5.8(d)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Intellectual Property-Claims, Infringement, Oppositions</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;5.8(e)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Intellectual Property-Maintenance Fees</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;5.8(f)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Intellectual Property-Protection of Confidentiality</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;5.9
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Contracts</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;5.10(a)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employee Benefits-General</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;5.10(c)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employee Benefits-Effect of Transaction</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;5.11
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Accrued Vacation Pay</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;5.12
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Litigation</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;5.13
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Permits</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;5.14
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Environmental Matters</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;5.15
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Financial Advisors</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;5.18
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Equipment</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;5.19
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Casualty</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;5.20
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Insurance</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;5.21
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Customers</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;5.22
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Suppliers</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;5.23
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Affiliate Transactions</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;5.24
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Product Warranty</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;5.25
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Inventories</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;5.27
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Bank Accounts</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;5.29
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Foreign and Non-Debtor Affiliates</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;5.30
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Collective Bargaining Agreements</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;5.30(c)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Labor Matters-Exceptions</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;5.31
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employee Matters</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;5.32
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certain Payments</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;6.4(a)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Conflicts (Purchaser)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;6.4(b)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consents (Purchaser)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;8.1
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Immaterial Owned Real Property</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;8.2(a)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Conduct of the Business in Ordinary Course pending Closing</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;8.2(b)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Actions Affecting the Transaction</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Schedule&nbsp;9.1(e)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">COBRA</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">- v -
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<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="center" style="font-size: 10pt"><U><B>ASSET PURCHASE AGREEMENT</B></U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ASSET PURCHASE AGREEMENT, dated as of June&nbsp;23, 2005 (this &#147;<U>Agreement</U>&#148;), by and among
WS Textile Co., Inc., a Delaware corporation (&#147;<U>Parent</U>&#148;), New Textile One, Inc., a Delaware
corporation and wholly-owned direct subsidiary of Parent (&#147;<U>Holdco One</U>&#148;), New Textile Two,
Inc., a Delaware corporation and wholly-owned direct subsidiary of Parent (&#147;<U>Holdco Two</U>&#148;),
Textile Co., Inc., a Delaware corporation and indirect subsidiary of Parent and direct subsidiary
of Holdco One and Holdco Two (&#147;<U>Purchaser</U>&#148;), WestPoint Stevens Inc., a Delaware corporation
(the &#147;<U>Company</U>&#148;), and WestPoint Stevens Inc. I, a Delaware corporation, WestPoint Stevens
Stores Inc., a Delaware corporation, and J.P. Stevens Enterprises, Inc., a Delaware corporation
(each individually a &#147;<U>Subsidiary</U>&#148; and, together with the Company, each a &#147;<U>Seller</U>&#148;
and, collectively, &#147;<U>Sellers</U>&#148;).


<P align="center" style="font-size: 10pt"><U><B>W I T N E S S E T H:</B></U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Sellers and J.P. Stevens &#038; Co., who is not a Seller hereunder (&#147;J.P. Stevens&#148;) are
debtors and debtors in possession under title 11 of the United States Code, 11 U.S.C. &#167; 101 et seq.
(the &#147;<U>Bankruptcy Code</U>&#148;), and filed voluntary petitions for relief under chapter 11 of the
Bankruptcy Code on June&nbsp;1, 2003 (the &#147;<U>Petition Date</U>&#148;) in the United States Bankruptcy Court
for the Southern District of New York (the &#147;<U>Bankruptcy Court</U>&#148;) (Case No.&nbsp;03-13532) (the
&#147;<U>Bankruptcy Case</U>&#148;);


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, certain terms used in this Agreement are defined in <U>Section&nbsp;1.1</U>;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Sellers are engaged in the business of manufacturing, marketing and distributing bed
and bath home fashions products (such business and all other business conducted by Sellers, the
&#147;<U>Business</U>&#148;);


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, subject to the terms and conditions set forth herein, Sellers are agreeing to sell
the Purchased Assets either pursuant to a plan of reorganization or liquidation under Chapter&nbsp;11 of
the Bankruptcy Code or in accordance with sections 363 and 365 of the Bankruptcy Code; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Purchaser has agreed to acquire the Purchased Assets in exchange for which Purchaser
will pay consideration consisting of a combination of cash, shares of Parent Common Stock, rights
to acquire additional shares of Parent Common Stock and the assumption of specific liabilities, all
as more specifically provided herein.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements
hereinafter contained, and intending to be bound hereby, the parties hereby agree as follows:


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt">ARTICLE I.



<P align="center" style="font-size: 10pt">DEFINITIONS



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. <U>Certain Definitions</U>. For purposes of this Agreement, the following terms shall have
the meanings specified in this <U>Section&nbsp;1.1</U> or in other Sections of this Agreement, as
identified in <U>Section&nbsp;1.2</U>:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Adequate Protection Order</U>&#148; means that certain Final Order Pursuant to Sections&nbsp;361,
363, and 364(d)(1) of the Bankruptcy Code and Rule&nbsp;4001 of the Federal Rules of Bankruptcy
Procedure Providing the Pre-Petition Secured Lenders Adequate Protection, dated as of June&nbsp;18,
2003, and includes the Stipulation and Order (i)&nbsp;Providing for Deposit into Escrow of Second Lien
Adequate Protection Payments, (ii)&nbsp;Withdrawal of Adequate Protection Motion and (iii)&nbsp;Reservation
of Subscription Rights and Remedies dated as of August&nbsp;18, 2004 and approved by the Bankruptcy
Court on August&nbsp;23, 2004.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Affiliate</U>&#148; means, with respect to any Person, any other Person that, directly or
indirectly through one or more intermediaries, controls, or is controlled by, or is under common
control with, such Person, and the term &#147;control&#148; (including the terms &#147;controlled by&#148; and &#147;under
common control with&#148;) means the possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of such Person, whether through ownership of voting
securities, by contract or otherwise.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Ancillary Documents</U>&#148; means the Escrow Agreement and the documents delivered pursuant
to <U>Section&nbsp;4.2</U> hereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>AREH</U>&#148; means American Real Estate Holding Limited Partnership.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Aretex</U>&#148; means Aretex LLC.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Bidding Procedures Order</U>&#148; means the order of the Bankruptcy Court, dated April&nbsp;22,
2005, approving bidding procedures for the sale of all or substantially all of the Seller&#146;s assets.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Business Day</U>&#148; means any day of the year on which national banking institutions in New
York are open to the public for conducting business and are not required or authorized to close.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Chapter&nbsp;11 Plan</U>&#148; means a plan of reorganization or liquidation under Chapter&nbsp;11 of
the Bankruptcy Code which incorporates and implements the terms of this Agreement and is otherwise
acceptable to Sellers, Purchaser and Aretex in their reasonable discretion.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Charisma Agreement</U>&#148; means that certain license agreement between Official Pillowtex
LLC and WestPoint Stevens, Inc., dated as of October&nbsp;1, 2004 and amended as of December, 2004.


<P align="center" style="font-size: 10pt">- 2 -
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Confirmation Order</U>&#148; means an Order confirming a Chapter&nbsp;11 Plan and which makes the
findings of fact and conclusions of law set forth in the defined term Sale Order plus such other
findings and conclusions as Purchaser and Aretex may reasonably request, and is otherwise in form
and substance acceptable to Sellers, Purchaser and Aretex in their reasonable discretion. An Order
shall only be a &#147;Confirmation Order&#148;, and the defined term &#147;Confirmation Order&#148; shall only be
applicable under this Agreement, if, as contemplated by <U>Section&nbsp;7.3</U> hereof, the Bankruptcy
Court determines by Order entered at the hearing to approve the Sale Order that the transactions
contemplated by this Agreement shall be pursued through a Chapter&nbsp;11 plan of reorganization or
liquidation.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Continuing Employees</U>&#148; means such current Employees of Sellers designated by Purchaser
in a written notice to Sellers prior to the Closing Date as individuals to whom Purchaser intends
to extend an offer of employment, and that have accepted Purchaser&#146;s offer of employment.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Contract</U>&#148; means any written contract, indenture, note, bond, lease, license, or other
agreement, whether entered into prior to or after the Petition Date.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Cure Costs</U>&#148; shall mean the cure amounts, as determined by the Bankruptcy Court, if
any, necessary to cure all defaults, if any, and to pay all actual or pecuniary losses that have
resulted from such defaults, under those Accepted Contracts, Accepted Intellectual Property
Licenses and Accepted Real Property Leases which Purchaser has directed Sellers to accept pursuant
to <U>Section&nbsp;8.12(a)</U> hereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Current</U>&#148; means an obligation incurred or accrued after the Petition Date of the type
indicated in the Ordinary Course of Business by one or more Sellers which is incurred or accrued in
the Ordinary Course of Business and which is not yet due and payable as of the Closing Date.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>December Financial Statements</U>&#148; means the unaudited consolidated balance sheet as of
December&nbsp;31, 2004 and unaudited consolidated statements of income and cash flows for the year then
ended of the Company and its subsidiaries previously delivered to the Purchaser.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Debtors</U>&#148; means the Sellers and J.P. Stevens.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>DIP Credit Agreement</U>&#148; means that certain debtor in possession financing agreement,
dated as of June&nbsp;5, 2003, as amended, among Sellers, Bank of America, N.A. as Administrative Agent,
Wachovia Bank, National Association as Syndication Agent and the other lenders parties thereto.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Distributable Value</U>&#148; means the value of the Parent Shares and the Subscription
Rights.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Documents</U>&#148; means all files, documents, instruments, papers, books, reports, records,
tapes, microfilms, photographs, letters, budgets, forecasts, ledgers, journals, title policies,
customer lists, regulatory filings, operating data and plans, technical documentation


<P align="center" style="font-size: 10pt">- 3 -
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">(design specifications, functional requirements, operating instructions, logic manuals, flow
charts, etc.), user documentation (installation guides, user manuals, training materials, release
notes, working papers, etc.), marketing documentation (sales brochures, flyers, pamphlets, web
pages, etc.), and other similar materials, in each case whether or not in electronic form.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Employee</U>&#148; means any current or former employee, officer, independent contractor,
agent, consultant, leased employee or other contingent worker of any Seller.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Employee Plan</U>&#148; means each (i) &#147;employee benefit plan&#148;, as defined in Section&nbsp;3(3) of
ERISA, (ii)&nbsp;each employment, consulting, severance or other individual compensation agreement
between a Seller and any Employee, and (iii)&nbsp;each plan, program, agreement or other arrangement
providing bonus or other incentive, equity or equity-based compensation, deferred compensation,
severance pay, sick leave, vacation pay, salary continuation, disability, hospitalization, medical,
life insurance, scholarship, or fringe benefits, which is now, or ever has been, maintained,
contributed to, or required to be contributed to, for the benefit of any Employee.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Environmental Law</U>&#148; means any foreign, federal, state or local statute, regulation,
ordinance, order, decision or rule of common law currently in effect relating to the protection of
human health and safety or the environment or natural resources including, without limitation, the
Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. &#167; 9601 et seq.),
the Hazardous Materials Transportation Act (49 U.S.C. App. &#167; 1801 et seq.), the Resource
Conservation and Recovery Act (42 U.S.C. &#167; 6901 et seq.), the Clean Water Act (33 U.S.C. &#167; 1251 et
seq.), the Clean Air Act (42 U.S.C. &#167; 7401 et seq.) the Toxic Substances Control Act (15 U.S.C. &#167;
2601 et seq.), the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. &#167; 136 et seq.),
the Emergency Planning and Community Right-to-Know Act (42 U.S.C. &#167; 11001 et seq.) and the
Occupational Safety and Health Act (29 U.S.C. &#167; 651 et seq.), and the regulations promulgated
pursuant thereto.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Environmental Liabilities</U>&#148; means the Liabilities resulting from (i)&nbsp;the failure to
comply with or any violation of any requirement of an Environmental Law, (ii)&nbsp;the failure to obtain
or comply with any required Environmental Permit, and/or (iii)&nbsp;Liabilities arising out of or
relating to Hazardous Materials at, on, under, or emanating from Sellers&#146; Properties or the
business conducted thereupon.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Environmental Permit</U>&#148; shall mean any Permit issued pursuant to an Environmental Law.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Environmental Release</U>&#148; means any release, spill, emission, leaking, pumping,
injection, deposit, disposal, discharge, dispersal, or leaching into the indoor or outdoor
environment, or into or out of any property.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Equity Commitment Agreement</U>&#148; means the agreement between AREH, Textile Holding, LLC
and Parent in the form of Exhibit&nbsp;Q hereto.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>ERISA</U>&#148; means the Employee Retirement Income Security Act of 1974, as amended, and
regulations promulgated thereunder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Escrow Agreement</U>&#148; means an Escrow Agreement executed by Purchaser, Sellers and Escrow
Agent in substantially the same form and substance as Exhibit&nbsp;A attached hereto.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Excluded Subsidiary</U>&#148; means any subsidiary of the Company listed on Schedule&nbsp;1.1(a).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Final Order</U>&#148; means an Order, the operation or effect of which has not been stayed,
reversed, modified, or amended and as to which the time to appeal, petition for certiorari, or seek
reargument, review or rehearing has expired and as to which no appeal, petition for certiorari or
motion for reargument, review or rehearing was timely filed or, if timely filed, the Order has been
affirmed by the highest court to which the Order was appealed or from which the reargument or
rehearing was sought, or certiorari has been denied, and the time to file any further appeal or
petition for certiorari or to seek further reargument or rehearing has expired.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>First Lien Lender Agreement</U>&#148; means that certain Second Amended and Restated Credit
Agreement dated as of June&nbsp;9, 1998 among the Company as Borrower, WestPoint Stevens (U.K.) Limited
and WestPoint Stevens (Europe) Limited, as Foreign Borrowers, Bank of America, N.A., as Issuing
Lender, Swingline Lender and Administrative Agent and the banks and other financial institutions at
any time parties thereto, as amended to the date hereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>First Lien Lenders</U>&#148; means the financial institutions from time to time party to the
First Lien Lender Agreement, together with their successors and assigns permitted by the First Lien
Lender Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Furniture and Equipment</U>&#148; means all furniture, fixtures, furnishings, equipment,
vehicles, leasehold improvements, and other tangible personal property owned or used by any Seller,
including all such artwork, desks, chairs, tables, Hardware, copiers, telephone lines and numbers,
telecopy machines and other telecommunication equipment, cubicles and miscellaneous office
furnishings and supplies.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>GAAP</U>&#148; means generally accepted accounting principles in the United States as of the
date hereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Governmental Body</U>&#148; means any government, governmental, quasi-governmental or
regulatory body thereof, or political subdivision thereof, whether foreign, federal, state, or
local, or any agency, instrumentality or authority thereof, or any court or arbitrator (public or
private).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Hardware</U>&#148; means any and all computer and computer-related hardware, including
computers, file servers, facsimile servers, scanners, color printers, laser printers and networks.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Hazardous Material</U>&#148; means any substance, material or waste which is regulated by any
Governmental Body including petroleum and its by-products, asbestos, and any material or substance
which is defined as a &#147;hazardous waste,&#148; &#147;hazardous substance,&#148; &#147;hazardous material,&#148; &#147;restricted
hazardous waste,&#148; &#147;industrial waste,&#148; &#147;solid waste,&#148; &#147;contaminant,&#148; &#147;pollutant,&#148; &#147;toxic waste&#148; or
&#147;toxic substance&#148; under any provision of Environmental Law.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>HSR Act</U>&#148; means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Immaterial Owned Real Property</U>&#148; means each parcel of real property owned by the
respective Sellers that is not a Material Owned Real Property.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Indebtedness</U>&#148; of any Person means, without duplication, (i)&nbsp;the principal of and
premium (if any) in respect of (a)&nbsp;indebtedness of such Person for money borrowed and (b)
indebtedness evidenced by notes, debentures, bonds or other similar instruments for the payment of
which such Person is responsible or liable; (ii)&nbsp;all obligations of such Person issued or assumed
as the deferred purchase price of property, all conditional sale obligations of such Person and all
obligations of such Person under any title retention agreement (but excluding trade accounts
payable and other accrued current liabilities arising in the Ordinary Course of Business); (iii)
all obligations of such Person under leases required to be capitalized in accordance with GAAP;
(iv)&nbsp;all obligations of such Person for the reimbursement of any obligor on any letter of credit,
banker&#146;s acceptance or similar credit transaction; (v)&nbsp;all obligations of the type referred to in
clauses (i)&nbsp;through (iv)&nbsp;of any Persons for the payment of which such Person is responsible or
liable, directly or indirectly, as obligor, guarantor, surety or otherwise, including guarantees of
such obligations; and (vi)&nbsp;all obligations of the type referred to in clauses (i)&nbsp;through (v)&nbsp;of
other Persons secured by any Lien on any property or asset of such Person (whether or not such
obligation is assumed by such Person).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Intellectual Property</U>&#148; means all intellectual property rights used (including all
Intellectual Property Licenses) or owned by any Seller, including: (i)&nbsp;all patents, patent
applications, patent rights, patent disclosures and improvements thereto and all continuations,
divisionals, continuations-in-part, or reissues of patent applications and patents issuing thereon,
(ii)&nbsp;all trademarks, service marks, trade names, service names, brand names, all trade dress
rights, logos, Internet domain names and corporate names and assumed business names and general
intangibles of a like nature, together with the goodwill associated with any of the foregoing, and
all applications therefor and all registrations and renewals thereof, (iii)&nbsp;all copyrights
(including moral rights and rights in all Internet web sites), and mask work rights and all
registrations thereof and applications therefor, (iv)&nbsp;all Software and Technology, (v)&nbsp;all trade
secrets, and (vi)&nbsp;all other intellectual property rights in whatever form or medium.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Intellectual Property Licenses</U>&#148; means (i)&nbsp;any grant to a third Person of any right to
use any of the Intellectual Property owned by any Seller, and (ii)&nbsp;any grant to any Seller of a
right to use a third Person&#146;s intellectual property rights which is used by Seller.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>IRS</U>&#148; means the Internal Revenue Service.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>KERP Order</U>&#148; means collectively the October&nbsp;23, 2003 and August&nbsp;12, 2004 orders
referenced in the definition of KERP Program below.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>KERP Program</U>&#148; means the key employee retention and severance program (including the
severance program and the existing separation plan for salaried employees) as set forth in the
Motion of Debtors for Order Pursuant to 11 U.S.C. &#167;&#167; 105(a) and 363(b)(1) Authorizing the
Establishment of a Key Employee Retention Plan and the Motion of Debtors pursuant to 11 U.S.C. &#167;&#167;
105(a) and 363(b)(1) Approving the Extension of the Debtors&#146; Key Employee Retention Plan, as
modified, both of which were approved by separate order of the Bankruptcy Court on October&nbsp;23, 2003
and August&nbsp;12, 2004, respectively.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Knowledge of Sellers</U>&#148; means the actual knowledge of those officers of Sellers
identified on <U>Schedule&nbsp;1.1(b)</U>, and, in addition, as to the provisions set forth opposite
their names, certain employees of Sellers as set forth on <U>Schedule&nbsp;1.1(b)</U>.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Law</U>&#148; means any federal, state, local or foreign law, statute, code, ordinance, rule
or regulation.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Legal Proceeding</U>&#148; means any judicial, administrative or arbitral actions, suits,
proceedings (public or private), claims, investigations or any other proceedings by or before a
Governmental Body.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Liability</U>&#148; means any duty, debt, liability, claim or obligation (whether direct or
indirect, known or unknown, absolute or contingent, accrued or unaccrued, liquidated or
unliquidated, or due or to become due), and including all costs and expenses relating thereto.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Lien</U>&#148; means any lien, encumbrance, pledge, mortgage, deed of trust, security
interest, claim, lease, charge, option, right of first refusal, easement, servitude, proxy, voting
trust or agreement, transfer restriction under any shareholder or similar agreement or encumbrance.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Maine CBA</U>&#148; means that certain Collective Bargaining Agreement between the Company and
the Union of Needletrades, Industrial and Textile Employees (AFL-CIO-CLC) dated April&nbsp;11, 2004.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Material Intellectual Property Licenses</U>&#148; means collectively all of the Intellectual
Property Licenses listed on Schedule&nbsp;5.8(b).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Order</U>&#148; means any order, injunction, judgment, decree, ruling, writ, assessment or
award of a Governmental Body.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Ordinary Course of Business</U>&#148; means the ordinary and usual course of normal day to day
operations of the Business through the date hereof consistent with past practice.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Owned Real Properties</U>&#148; means collectively, the Immaterial Owned Real Properties and
the Material Owned Real Properties.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Parent Common Stock</U>&#148; means the common stock of Parent, par value $.01 per share.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Permits</U>&#148; means any approvals, authorizations, consents, licenses, permits or
certificates issued by a Governmental Body.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Permitted Exceptions</U>&#148; means (i)&nbsp;all covenants, conditions, restrictions, easements,
rights of way and encumbrances of record as disclosed in policies of title insurance which have
been delivered to Purchaser by Sellers prior to the date hereof; provided same are not being
violated (or if violated, will not result in a forfeiture of the property or result in monetary
liability in excess of $100,000 as to any individual property), do not unreasonably interfere with
the continued operation of the Business as presently operated at the respective Owned Real
Properties, and any such easements do not underlie the improvements at the respective Owned Real
Properties unless servicing such improvements; (ii)&nbsp;statutory liens for (a)&nbsp;Current Taxes, (b)
Taxes incurred after the Petition Date in the Ordinary Course of Business which are delinquent but
with respect to which the amount or validity of which is being contested in good faith by
appropriate proceedings provided an appropriate reserve is established therefor and provided
further that withholding payment during a valid contest is otherwise permitted by applicable Law
and (c)&nbsp;Taxes incurred before the Petition Date and specifically assumed pursuant to <U>Section
2.3(a)(x)</U>; (iii)&nbsp;mechanics&#146;, carriers&#146;, workers&#146;, repairers&#146; and similar Liens arising or
incurred in the Ordinary Course of Business after the Petition Date that individually or in the
aggregate do not exceed $100,000; <U>provided</U>, <U>however</U>, that such Liens shall not
include any Liens that are junior to the Lien of the First Lien Lenders and the Second Lien Lenders
or any other Liens that Purchaser takes free and clear of under the Sale Order and, if applicable,
the Confirmation Order, or other applicable Law; (iv)&nbsp;zoning, entitlement and other land use and
environmental regulations by any Governmental Body provided that such regulations are not being
violated and do not unreasonably interfere with the present operation of the Business at the
respective Owned Real Properties; and (v)&nbsp;security interest of a lessor of equipment or other
personal property under a capital lease.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Person</U>&#148; means any individual, corporation, limited liability company, partnership,
firm, joint venture, association, joint-stock company, trust, unincorporated organization,
Governmental Body or other entity.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Products</U>&#148; means any and all products developed, manufactured, marketed or sold by any
Seller at any time.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Purchaser Material Adverse Effect</U>&#148; means a material adverse effect on the ability of
Parent or Purchaser to consummate the transactions contemplated by this Agreement or perform its
respective obligations under this Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Purchaser Selection Hearing</U>&#148; means the hearing before the Bankruptcy Court held
pursuant to the Bidding Procedures Order to determine the highest or best bid for substantially all
of the assets of Sellers.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Registration Rights Agreement</U>&#148; means the Registration Rights Agreement substantially
in the form and substance attached hereto as Exhibit&nbsp;B.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Remedial Action</U>&#148; means all actions to (i)&nbsp;clean up, remove, treat or in any other way
address any Hazardous Material; (ii)&nbsp;prevent the Environmental Release of any Hazardous Material so
it does not endanger or threaten to endanger public health or welfare or the indoor or outdoor
environment; (iii)&nbsp;perform pre-remedial studies and investigations or post-remedial monitoring and
care; or (iv)&nbsp;to correct a condition of noncompliance with Environmental Laws.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Representative</U>&#148; means, as to a specified Person, any officer, director, agent,
employee, member, manager, attorney, accountant, consultant, investment banker, broker or other
representative of the Person specified.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Rights Offering</U>&#148; means the delivery and exercise of Subscription Rights to acquire
Parent Common Stock as described in Exhibit&nbsp;C hereto.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Rights Offering Sponsor Agreement</U>&#148; means the agreement between AREH and Parent in the
form of Exhibit&nbsp;R hereto.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Sale Motion</U>&#148; means the motion or motions of Sellers seeking approval and entry of the
Sale Order.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Sale Order</U>&#148; means an order or orders of the Bankruptcy Court in form and substance
reasonably acceptable to Purchaser and Sellers approving this Agreement and all of the terms and
conditions hereof, and approving and authorizing Sellers to consummate the transactions
contemplated hereby pursuant to Section&nbsp;363 and 365 of the Bankruptcy Code. Without limiting the
generality of the foregoing, such order shall find and provide, among other things, unless the
Purchaser agrees otherwise in its sole and absolute discretion, that (i)&nbsp;the Purchased Assets sold
to Purchaser pursuant to this Agreement shall be transferred to Purchaser free and clear of all
Liens (other than Liens created by Purchaser and Permitted Exceptions relating to real property),
with any other Liens attaching to the Purchase Price (which Liens are and shall be deemed to be
fully satisfied and discharged as a result of the Closing and distributions contemplated by the
Agreement); (ii)&nbsp;the Parent and Purchaser have acted in &#147;good faith&#148; within the meaning of section
363(m) of the Bankruptcy Code; (iii)&nbsp;this Agreement was negotiated, proposed and entered into by
the parties without collusion, in good faith and from arm&#146;s-length bargaining positions; (iv)&nbsp;the
Bankruptcy Court shall retain jurisdiction to resolve any controversy or claim arising out of or
relating to this Agreement, or the breach hereof as provided in <U>Section&nbsp;12.5</U> hereof; (v)
due and adequate notice of the sale was provided; (vi)&nbsp;the transfer of the Purchased Assets
pursuant to this Agreement shall not be subject to &#147;bulk-transfer&#148; Laws; (viii)&nbsp;Purchaser shall
have no successor liability as a result of its purchase of the Purchased Assets pursuant to this
Agreement; (ix)&nbsp;this Agreement and the transactions contemplated hereby may be statutorily or
similarly specifically enforced against and are binding upon, and not subject to rejection or
avoidance by, Sellers or any trustee of Sellers under Chapter&nbsp;7 or Chapter&nbsp;11 of the Bankruptcy
Code; (x)&nbsp;a release by Sellers of all causes of action, including Avoidance Actions, against
Parent, Purchaser, Holdco One, Holdco Two, Aretex, AREH, and


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<P align="left" style="font-size: 10pt">Representatives; (xi)&nbsp;Purchaser shall not be required or deemed to purchase any Excluded
Assets or assume any Excluded Liabilities, including any Liabilities under or relating to any
pension plans or termination of any pension plan; (xii)&nbsp;Purchaser shall have no liability for tort
Liabilities, including all Liabilities relating to personal injury and other tort claims of any
nature and related matters, of Debtors and their Affiliates, or relating to the Business or any
assets or properties of Debtors and their Affiliates; and (xiii)&nbsp;that the Parent Common Stock and
Subscription Rights purchased, retained by and/or distributed to AREH or its affiliates, the First
Lien Lenders and the Second Lien Lenders shall be received and retained by each of them free and
clear of all Liens, claims and encumbrances of any nature. The Purchaser may, in its sole and
absolute discretion and without any obligation to do so, agree to requested modifications to
provisions which are primarily for Purchaser&#146;s benefit in the proposed form of sale order prior to
its entry and if Purchaser agrees to such modifications, Sellers agree to submit the form of such
modified sale order to the Bankruptcy Court as being reasonably acceptable to Sellers unless such
modification materially and adversely effects Sellers. If any such modification is in fact made
pursuant to the preceding sentence, the definition of Sale Order set forth herein shall be deemed
modified to incorporate any such modification.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Second Lien Lender Agreement</U>&#148; means that certain $165&nbsp;million Second-Lien Credit
Facility, dated as of June&nbsp;29, 2001, among the Company, as Borrower, the banks and other financial
institutions from time to time parties thereto, and Deutsche Bank Trust Company Americas (f/k/a
Bankers Trust Company), as Administrative Agent, as amended to the date hereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Second Lien Lenders</U>&#148; means the financial institutions from time to time party to the
Second Lien Lender Agreement, together with their successors and assigns permitted by the Second
Lien Lender Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Selection Order</U>&#148; means the order of the Bankruptcy Court to be entered following the
Purchaser Selection Hearing approving this Agreement and the transactions contemplated by this
Agreement and otherwise in form and substance reasonably acceptable to Purchaser and Seller.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Seller Material Adverse Effect</U>&#148; means (i)&nbsp;a material adverse effect on the business,
assets, properties, results of operations or financial condition of Sellers (taken as a whole), or
(ii)&nbsp;a material adverse effect on the ability of Sellers to consummate the transactions
contemplated by this Agreement or perform their obligations under this Agreement, other than an
effect resulting from an Excluded Matter. &#147;Excluded Matter&#148; means any one or more of the
following: (i)&nbsp;the effect of any change in the United States or foreign economies or securities or
financial markets in general; (ii)&nbsp;the effect of any change that generally affects any industry in
which Sellers operate; (iii)&nbsp;the effect of any change arising in connection with hostilities, acts
of war, sabotage or terrorism or military actions or any escalation or material worsening of any
such hostilities, acts of war, sabotage or terrorism or military actions existing or underway as of
the date hereof; or (iv)&nbsp;the effect of any changes in applicable Laws or accounting rules.


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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Sellers&#146; Properties</U>&#148; means collectively all of the Owned Real Properties and Leased
Real Properties.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Software</U>&#148; means any and all (i)&nbsp;computer programs, including any and all software
implementations of algorithms, models and methodologies, whether in source code or object code,
(ii)&nbsp;databases and compilations, including any and all data and collections of data, whether
machine readable or otherwise, (iii)&nbsp;descriptions, flow-charts and other work product used to
design, plan, organize and develop any of the foregoing, screens, user interfaces, report formats,
firmware, development tools, templates, menus, buttons and icons, and (iv)&nbsp;all documentation
including user manuals and other training documentation related to any of the foregoing.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Subscription Rights</U>&#148; means the rights to acquire, for an aggregate consideration of
$125,000,000, 14,250,000 shares of Parent Common Stock.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Tax Authority</U>&#148; means any Governmental Body or employee thereof, charged with the
administration of any law or regulation relating to Taxes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Tax Code</U>&#148; means the Internal Revenue Code of 1986, as amended.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Taxes</U>&#148; means (i)&nbsp;all federal, state, local or foreign taxes, charges or other
assessments, including, all net income, gross receipts, capital, sales, use, ad valorem, value
added, transfer, franchise, profits, inventory, capital stock, license, withholding, payroll,
employment, social security, unemployment, excise, severance, stamp, occupation, property and
estimated taxes, and (ii)&nbsp;all interest, penalties, fines, additions to tax or additional amounts
imposed by any taxing authority in connection with any item described in clause (i).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Tax Return</U>&#148; means all returns, declarations, reports, estimates, information returns
and statements required to be filed in respect of any Taxes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Technology</U>&#148; means, collectively, the following intangibles owned or used by Sellers:
all designs, formulae, algorithms, procedures, methods, techniques, ideas, know-how, research and
development, technical data, programs, subroutines, tools, materials, specifications, processes,
inventions (whether patentable or unpatentable and whether or not reduced to practice), creations,
improvements, works of authorship and other similar materials, and all recordings, graphs,
drawings, reports, analyses, and other writings and other tangible embodiments of the foregoing in
any form whether or not specifically listed herein, and all related similar intangibles that are
used in, incorporated in, embodied in, displayed by, relates to, or is used or useful in the
design, development, reproduction, maintenance or modification of, any of the Products.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Trade Payables</U>&#148; means accounts payable to vendors or suppliers for goods or services
delivered in connection with the Business; in no event will &#147;Trade Payables&#148; include any accounts
payable to any employees or any royalties payable to any Person.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>WARN Act</U>&#148; means the Worker Adjustment and Retraining Notification Act.


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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Winddown Costs</U>&#148; means professional fees of the Debtors or a Trustee and other costs
incurred by the estate after the Closing Date in connection with the winddown of the Debtors.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2. <U>Terms Defined Elsewhere in this Agreement</U>. For purposes of this Agreement, the
following terms have meanings set forth in the sections indicated:

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="46%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Term</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Section</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Accepted Contracts
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8.12(a)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Accepted Intellectual Property Licenses
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8.12(a)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Accepted Real Property Leases
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8.12(b)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Agreement
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Preamble</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Antitrust Division
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8.4(a)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Antitrust Laws
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8.4(b)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Asset Acquisition Statement
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">11.2</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Assumed Liabilities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.3</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Avoidance Actions
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.2(c)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Bankruptcy Case
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Recitals</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Bankruptcy Code
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Recitals</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Bankruptcy Court
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Recitals</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Bill of Sale
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.2(a)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Business
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Recitals</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Cash Purchase Price
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.1</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Closing
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.1</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Closing Date
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.1</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">COBRA
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">9.1(e)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Collective Bargaining Agreements
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.30(a)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Company
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Preamble</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Company SEC Documents
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.4</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Deposit Amount
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.2</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">ERISA Affiliate
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.10(b)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Escrow Agent
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.2</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exchange Act
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.4(a)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Excluded Assets
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.2</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Excluded Liabilities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.4</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Excluded Matter
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1.1 (in Seller Material Adverse Effect definition)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Expense Reimbursement
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">7.2</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">FIRPTA
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.2(d)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">FTC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8.4(a)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Indemnified Persons
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">11.1</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">J.P. Stevens
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Preamble</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Leased Real Properties
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.7(b)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Leased Real Property
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.7(b)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="46%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Term</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Section</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Letter of Credit Purchase Price
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.1</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Listed Employee Plan
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.10(a)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Loss
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">10.5</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Lost Profits
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">10.5</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Material Contracts
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.9</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Material Intellectual Property License
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.8</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Material Owned Real Properties
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.7(a)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Material Property Loss
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">10.5</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Parent
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Preamble</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Parent Shares
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.1</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Personal Property Leases
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.7(g)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Petition Date
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Recitals</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Purchased Assets
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.1(b)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Purchase Price
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.1</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Purchaser
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Preamble</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Real Property Lease
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.7(b)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Real Property Leases
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.7(b)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Referee
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">11.3</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Rejected Contracts
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8.12(a)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Subscription Rights
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.1</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">SEC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.4</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Securities Act
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.4(a)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Seller
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Preamble</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Sellers
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Preamble</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Subsidiary
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Preamble</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Transfer Taxes
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">11.1</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3. <U>Other Definitional and Interpretive Matters</U>.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Unless otherwise expressly provided, for purposes of this Agreement, the following rules
of interpretation shall apply:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Calculation of Time Period</U>. When calculating the period of time before which, within
which or following which any act is to be done or step taken pursuant to this Agreement, the date
that is the reference date in calculating such period shall be excluded. If the last day of such
period is a non-Business Day, the period in question shall end on the next succeeding Business Day.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Dollars</U>. Any reference in this Agreement to $ shall mean U.S. dollars.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Exhibits/Schedules</U>. All Exhibits and Schedules annexed hereto or referred to herein
are hereby incorporated in and made a part of this Agreement. Any capitalized terms used


<P align="center" style="font-size: 10pt">- 13 -
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">in any
Schedule or Exhibit but not otherwise defined therein shall be defined as set forth in this
Agreement.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Gender and Number</U>. Any reference in this Agreement to gender shall include all
genders, and words imparting the singular number only shall include the plural and vice versa.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Headings</U>. The provision of a Table of Contents, the division of this Agreement into
Articles, Sections and other subdivisions and the insertion of headings are for convenience of
reference only and shall not affect or be utilized in construing or interpreting this Agreement.
All references in this Agreement to any &#147;Section&#148; are to the corresponding Section of this
Agreement unless otherwise specified.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Herein</U>. The words such as &#147;herein,&#148; &#147;hereinafter,&#148; &#147;hereof,&#148; and &#147;hereunder&#148; refer to
this Agreement as a whole and not merely to a subdivision in which such words appear unless the
context otherwise requires.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Including</U>. The word &#147;including&#148; or any variation thereof means &#147;including, without
limitation&#148; and shall not be construed to limit any general statement that it follows to the
specific or similar items or matters immediately following it.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Confirmation Order</U>. Whenever the phrase &#147;and, if applicable, the Confirmation Order&#148;,
or words to that effect are used herein, such phrase shall be applicable only to a Confirmation
Order that has become a Final Order prior to September&nbsp;15, 2005.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The parties hereto have participated jointly in the negotiation and drafting of this
Agreement and, in the event an ambiguity or question of intent or interpretation arises, this
Agreement shall be construed as jointly drafted by the parties hereto and no presumption or burden
of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provision
of this Agreement.


<P align="center" style="font-size: 10pt">ARTICLE II.



<P align="center" style="font-size: 10pt">PURCHASE AND SALE OF ASSETS; ASSUMPTION OF LIABILITIES



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. <U>Purchase and Sale of Assets</U>.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;On the terms and subject to the conditions set forth in this Agreement, at the Closing,
Purchaser shall purchase, acquire and accept from Sellers, and Sellers shall sell, transfer, convey
and deliver to Purchaser, all of Sellers&#146; right, title and interest in, to and under the Purchased
Assets.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;For all purposes of and under this Agreement, the term &#147;Purchased Assets&#148; shall mean all
of the properties and assets of Sellers existing as of the Closing other than the Excluded Assets,
whether or not related to the Business. Such Purchased Assets shall include the following:


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;all cash and cash equivalents of Sellers and all marketable securities owned by Sellers
other than the securities specified in <U>Section&nbsp;2.2(a)</U>;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;all bank accounts, lockbox accounts, securities accounts and other accounts of Sellers
and all phone numbers of Sellers plus all deposits, securities and other amounts or assets held in
such accounts;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;all inventory of Sellers;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;all deposits (including customer deposits and security deposits for rent, electricity,
telephone or otherwise) and prepaid charges and expenses of Sellers other than any deposits or
prepaid charges and expenses paid in connection with and specifically allocable to any Excluded
Assets;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;all accounts receivable including the rights to all checks and other payments in transit,
delivered or made in respect thereof and not yet deposited or credited and the right to endorse any
such checks or payments;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;all of the Owned Real Properties designated by Purchaser as Purchased Assets pursuant to
<U>Section&nbsp;2.1(c)</U> and all rights of Sellers under all of the Real Property Leases designated
by Purchaser as Purchased Assets pursuant to <U>Section&nbsp;2.1(c)</U>, together with all right, title
and interest of Sellers, if any, in and to all improvements, fixtures and other appurtenances
thereto and rights in respect thereof;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;the Furniture and Equipment and all vehicles owned by Sellers;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)&nbsp;confidential and proprietary business information owned or used by Sellers;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)&nbsp;all rights of Sellers under or relating to the Charisma Agreement and all rights of
Sellers under or relating to the Intellectual Property Licenses (other than any containing the
&#147;J.P. Stevens&#148; name) designated by Purchaser as Purchased Assets pursuant to <U>Section
2.1(c)</U>, in each case to the extent assignable under the terms of the respective license,
pursuant to applicable Law or order of the Bankruptcy Court, or as a result of any consents
obtained from other parties to such license pursuant to <U>Section&nbsp;8.3</U>, and all other
Intellectual Property (other than Intellectual Property Licenses) (other than any containing the
&#147;J.P. Stevens&#148; name);


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;all rights of Sellers under or relating to the Contracts (other than Contracts referred to
in <U>Section&nbsp;2.1(a)(vi)</U>, <U>2.1(a)(ix)</U>, and <U>2.1(a)(xiv)</U>, respectively, as to
which such Sections shall apply) designated by Purchaser as Purchased Assets pursuant to
<U>Section&nbsp;2.1(c)</U> to the extent assignable under the terms of the respective Contract,
pursuant to applicable Law or
order of the Bankruptcy Court, or as a result of any consents obtained from other parties to
such Contract pursuant to <U>Section&nbsp;8.3</U>;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi)&nbsp;all Documents that are used in, held for use in or intended to be used in, or that relate
to, the Business or the assets or the properties of the Sellers, including Documents


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<P align="left" style="font-size: 10pt">relating to
Products, services, marketing, advertising, promotional materials, Intellectual Property, personnel
files for Continuing Employees and all files, customer files and documents (including credit
information), supplier lists, records, literature and correspondence, whether or not physically
located on any of the premises assumed by the Purchaser (other than the Documents specified in
<U>Section&nbsp;2.2(b)</U>);


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii)&nbsp;all Permits owned or used by Sellers to the extent assignable under the terms of the
respective Permits, pursuant to applicable Law or order of the Bankruptcy Court, or as a result of
any consents obtained from the issuer of such Permits pursuant to <U>Section&nbsp;8.3</U>;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii)&nbsp;all supplies owned or used by Sellers;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv)&nbsp;all rights of Sellers under non-disclosure or confidentiality, non-compete, or
non-solicitation agreements with Employees (other than any such agreements included in any
employment agreement with any such Employee) or with third parties to the extent relating to the
Business or to the marketing process for the sale of assets of or reorganization of the Sellers or
the Purchased Assets (or any portion thereof) to the extent assignable under the terms of the
respective agreements or pursuant to applicable Law or order of the Bankruptcy Court or as a result
of any consents obtained from such Employee or third party pursuant to <U>Section&nbsp;8.3</U>;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv)&nbsp;all rights and claims of Sellers under all insurance policies to the extent assignable
under the terms of the respective insurance policies or pursuant to applicable Law or order of the
Bankruptcy Court and the Sellers&#146; rights to the proceeds thereof except those proceeds specifically
relating to the Excluded Assets;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi)&nbsp;any rights, claims, offsets or causes of action of Sellers (other than Avoidance
Actions) against third parties arising out of events occurring on or prior to the Closing Date;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii)&nbsp;all rights of Sellers under or pursuant to all warranties, representations and
guarantees including those made by suppliers, manufacturers and contractors to the extent relating
to products sold, or services provided, to Sellers or to the extent affecting any Purchased Assets,
other than any warranties, representations and guarantees to the extent pertaining to any Excluded
Assets;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii)&nbsp;all goodwill and other intangible assets associated with the Business, including the
goodwill associated with the Intellectual Property;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xix)&nbsp;all rights of J.P. Stevens Enterprises, Inc. in and to the trademarks &#147;Utica&#148;,
&#147;Cottoncale&#148; and &#147;Pipeline&#148;, which rights will be purchased by a newly created subsidiary of
Purchaser; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx)&nbsp;all rights of Sellers under or relating to the Maine CBA.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;At any time and from time to time prior to the date that is 7&nbsp;days prior to the Closing
Date, Purchaser shall have the right to designate in its sole and absolute discretion


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<P align="left" style="font-size: 10pt">any of the
properties or assets of Sellers (other than assets described in Section&nbsp;2.2(a), (b), (c), (d), (l)
and (m)) as Purchased Assets and any properties or assets of Sellers, other than the Charisma
Agreement, as Excluded Assets, in each case by giving written notice signed by an executive officer
of Purchaser specifically referring to this <U>Section&nbsp;2.1(c)</U> to Sellers setting forth by
category or specific reference the properties or assets of Sellers so designated. There shall be
no increase or reduction in the Purchase Price if Purchaser elects to treat any properties or
assets of Sellers as Purchased Assets or Excluded Assets.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. <U>Excluded Assets</U>. Nothing herein contained shall be deemed to sell, transfer, assign
or convey the Excluded Assets to Purchaser, and Sellers shall retain all right, title and interest
to, in and under the Excluded Assets. For all purposes of and under this Agreement, the term
&#147;Excluded Assets&#148; shall mean the following assets:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;all shares of capital stock or other equity interest issued by any Seller or any Excluded
Subsidiary and all securities convertible into, exchangeable or exercisable for, shares of capital
stock or other equity interests issued by any Seller or any Excluded Subsidiary;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;any minute books, stock ledgers, corporate seals and stock certificates of Sellers, Tax
Returns and financial statements of Sellers, and corporate or other entity filings made by Sellers;
<U>provided</U>, <U>however</U>, that Purchaser shall have the right to make copies of any
portions of such retained books and records that relate to the Business or any of the Purchased
Assets and Sellers agree to preserve such records in accordance with <U>Section&nbsp;8.8</U> hereof;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;all avoidance actions or similar causes of action of Sellers arising under sections 544
through 553 of the Bankruptcy Code, including any proceeds thereof (collectively, the
&#147;<U>Avoidance Actions</U>&#148;);


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;all amounts held in escrow pursuant to the Adequate Protection Order and all amounts held
in escrow pursuant to the KERP Order (unless the amounts held in escrow pursuant to the KERP Order
are to be returned to the Company pursuant to the terms of the KERP Order, in which case such
amounts shall be paid to Purchaser in lieu of the Company);


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;all properties and assets of Sellers designated by Purchaser as Excluded Assets pursuant
to <U>Section&nbsp;2.1(c)</U> hereof;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;(i)&nbsp;all Contracts other than Contracts designated as Purchased Assets pursuant to
<U>Section&nbsp;2.1(c)</U> and (ii)&nbsp;all rights of Sellers under or relating to all oral agreements to
which any Seller is a party;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;all Employee Plans, and all trust funds and contracts relating thereto, including pension
plans;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;all Permits, non-disclosure or confidentiality, non-compete or non-solicitation agreements
other than those included as Purchased Assets pursuant to <U>Section&nbsp;2.1(b)(xii)</U> and
<U>2.1(b)(xiv)</U>;


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;all rights and claims of Sellers under all insurance policies other than the rights and
claims under the insurance policies included as Purchased Assets to <U>Section&nbsp;2.1(b)(xv)</U>;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;all of the Owned Real Properties and Real Property Leases, in each case other than those
specifically designated as Purchased Assets pursuant to <U>Section&nbsp;2.1(c)</U> ;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;all rights of Sellers under Intellectual Property Licenses and other Contracts other than
those designated by Purchaser as Purchased Assets pursuant to <U>Section&nbsp;2.1(c)</U>;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;all intercompany receivables of Sellers;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;any Tax refunds, credits and rebates to the extent applied to Taxes of Sellers that are
Excluded Liabilities;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;all assets and properties of J.P. Stevens Enterprises, Inc., other than the assets
referred to in <U>Section&nbsp;21(b)(xix)</U>;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;rights of Sellers under or pursuant to warranties, representations and guaranties to the
extent pertaining to Excluded Assets; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;all proceeds resulting from the liquidation of WestPoint Stevens (UK)&nbsp;Ltd.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3. <U>Assumption of Liabilities</U>.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;On the terms and subject to the conditions set forth in this Agreement, at the Closing,
Purchaser shall assume, effective as of the Closing, and shall timely perform and discharge in
accordance with their respective terms, only the specific liabilities of Sellers set forth below
(collectively, the &#147;<U>Assumed Liabilities</U>&#148;):


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Current accruals and related Cure Costs for those Accepted Contracts (including Accepted
Real Property Leases and Accepted Intellectual Property Licenses) which Purchaser directed Sellers
to accept pursuant to <U>Section&nbsp;8.12</U> for which Purchaser has not changed its direction prior
to the Closing, or as to any Accepted Contract which Purchaser directed Sellers to accept pursuant
to <U>Section&nbsp;8.12</U> where the hearing to determine the amount of Cure Costs is not held until
after the Closing Date, current accruals and Cure Costs for such
Accepted Contracts will be paid by Purchaser to the applicable counterparty promptly after an
Order determining the amount of such Cure Costs is entered by the Bankruptcy Court (unless
Purchaser has changed its direction to assume prior to entry of such Order);


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;Current wages, salary and commissions for Employees payable by Sellers (<U>provided</U>,
<U>however</U>, Assumed Liabilities shall be deemed to not include any other obligation to, or
benefits for, Employees including any severance, continuation, bonuses or benefits payable in
connection with change of control provisions or otherwise, except to the extent specifically
assumed pursuant to <U>Sections&nbsp;2.3(a)(iii)</U>, <U>2.3(a)(iv)</U>, and <U>2.3(a)(v))</U>;


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;Up to $438,000 in Current bonuses payable pursuant to incentive plans for sales
employees and retail store employees existing as of the date hereof;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;accrued vacation costs for the Continuing Employees to the extent accrued on Seller&#146;s
books and records as of the Closing;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;costs for reimbursement claims of Continuing Employees submitted after the Closing and
related to medical and dental costs incurred by the Continuing Employees prior to Closing;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;Current premiums under insurance policies that are Purchased Assets;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;Current payroll Taxes payable by the Sellers in connection with the operation of its
Business on or prior to the Closing Date;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)&nbsp;Current Trade Payables existing on the Closing Date (including accrued but unbilled
Trade Payables);


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)&nbsp;quarterly U.S. Trustee fees accrued and unpaid through the Closing Date;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;real and personal property taxes and any miscellaneous secured claims related to Purchased
Assets allowed in the Bankruptcy Case with priority over the liens of the First Lien Lenders and
the Second Lien Lenders;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi)&nbsp;Transfer Taxes applicable to the transfer of the Purchased Assets pursuant to this
Agreement to the extent not exempt under Section 1146(c) of the Bankruptcy Code or otherwise;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii)&nbsp;Current sales and use Taxes and similar Taxes including gross receipts Taxes plus up to
an additional $645,000 of sales and use Taxes and similar Taxes including gross receipts Taxes
(including, solely for this purpose, the Michigan Single Business Tax) whether incurred before or
after the Petition Date;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii)&nbsp;any other accrued and unpaid expenses or obligations incurred by the Sellers prior to
the Closing Date that Purchaser expressly agrees to assume in a writing signed by
an executive officer of Purchaser that specifically refers to this <U>Section
2.3(a)(xiii)</U> delivered to the Company prior to the Closing Date;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv)&nbsp;up to $25,000,000 of Liabilities arising after the Petition Date in the Ordinary Course
of Business that would have been recorded as &#147;Customer Accommodations&#148; in the line item &#147;Accrued
Liabilities&#148; in a consolidated balance sheet of the Business prepared in accordance with GAAP and
using the same accounting principles, policies and practices used in the preparation of the
December Financial Statements; and


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv)&nbsp;up to an aggregate of $3,000,000 in Winddown Costs, to be paid by Purchaser upon
presentation by Debtors of invoices reflecting the payee, the amounts due and other reasonable
documentation.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Nothing in this <U>Section&nbsp;2.3</U> shall prohibit Purchaser from asserting or pursuing
any claims or offsets it may have against any Person related to any Assumed Liability or contesting
any Assumed Liability, whether pursuant to any agreement or contract, under Law or in equity.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;To the extent that any Liability under any clause of <U>Section&nbsp;2.3(a)</U> exceeds the
aggregate amount of such Liability specifically assumed by Purchaser pursuant to such clause,
Purchaser shall, in its sole and absolute discretion, select which of such Liabilities it shall
assume pursuant to such clause. Any such Liability under any such clause shall be deemed selected
to be assumed by Purchaser under such clause if Purchaser makes payment or otherwise satisfied such
Liability. In no event will Purchaser be required to or deemed to assume any Liability under any
clause of <U>Section&nbsp;2.3(a)</U> to the extent it exceeds any dollar limitation in such clause or
is otherwise outside any other limitation in such clause.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4. <U>Excluded Liabilities</U>. Purchaser shall not assume, and shall be deemed not to have
assumed, any Liabilities of the Debtors and their Affiliates or any other Liabilities related to or
arising out of the Business or the Purchased Assets other than the Assumed Liabilities (all such
Liabilities other than the Assumed Liabilities, collectively, the &#147;<U>Excluded Liabilities</U>&#148;).
Debtors and their Affiliates, as applicable, shall be solely and exclusively liable for the
Excluded Liabilities. Such Excluded Liabilities shall include the following:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;all Liabilities existing prior to the Petition Date, other than priority claims assumed by
Purchaser pursuant to <U>Section&nbsp;2.3(a)(x)</U> or any claim assumed by Purchaser pursuant to
<U>Section&nbsp;2.3(a)(xii);</U>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;all Liabilities of Debtors and their Affiliates under the DIP Credit Agreement;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;except to the extent set forth in <U>Sections&nbsp;2.3(a)(ii)</U>, <U>2.3(a)(iii)</U>,
<U>2.3(a)(iv)</U>, and <U>2.3(a)(v)</U>, all Liabilities of Debtors and their Affiliates to
Employees including under or related to any Employee Plan including, but not limited to, any plan
or arrangement providing
pension benefits, bonus or incentive compensation, or any plan or arrangement providing
retirement benefits or post retirement medical, life or other welfare benefits;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;all Liabilities relating to amounts required to be paid by Debtors and their Affiliates
hereunder;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;all Environmental Liabilities of the Debtors and their Affiliates, including all
Liabilities of Debtors and their Affiliates relating to or arising from any Environmental Release
(and including all Liabilities relating to real properties owned or leased or formerly owned or
leased by Debtors and their Affiliates including, but not limited, the formerly owned


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<P align="left" style="font-size: 10pt">Piedmont
Chemical Plant located at 410 Old Pelzer Road, Piedmont, SC) except Environmental Liabilities
relating to the Purchased Assets that Purchaser would have liability for under any applicable
Environmental Laws solely as a result of Purchaser owning or operating the Purchased Assets after
Closing;



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;all Liabilities under or related to the KERP Program;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;all Liabilities of Debtors and their Affiliates relating to Taxes accrued through or
imposed on the Closing Date, except the Liabilities for Taxes to the extent set forth in
<U>Sections&nbsp;2.3(a)(vii)</U>, <U>2.3(a)(x),</U> <U>2.3(a)(xi)</U> and <U>2.3(a)(xii)</U> or
Taxes otherwise expressly assumed herein;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;all obligations under or in connection with the WARN Act or any state counterpart;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;all intercompany Liabilities of Debtors and their Affiliates;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;all tort Liabilities, including all Liabilities relating to personal injury and other tort
claims of any nature and related matters, of Debtors and their Affiliates, or relating to the
Business or any assets or properties of Sellers;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;all Liabilities dischargeable in the Bankruptcy Case or of a type that would be
dischargeable if a reorganization plan were confirmed under Chapter&nbsp;11 of the Bankruptcy Code;
(other than any such Liabilities specifically included in Assumed Liabilities pursuant to Section
2.3);


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;all Liabilities arising out of or relating to Excluded Assets;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;all Liabilities of the Debtors and their Affiliates for legal fees and expenses, and fees
and expenses of brokers, finders and financial advisors but without prejudice to the Purchaser&#146;s
obligation to pay $5&nbsp;million cash at closing pursuant to Section&nbsp;3.1(a)(f) hereof; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;all Liabilities that the Sale Order, and, if applicable, the Confirmation Order, provides
will not be assumed by Purchaser.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5. <U>Further Conveyances and Assumptions</U>. From time to time at or following the Closing,
Sellers and Purchaser shall, and shall cause their respective Affiliates to, execute, acknowledge
and deliver all such further conveyances, notices, assumptions, releases and acquittances and such
other instruments, and shall take such further actions, as may be reasonably necessary or
appropriate to assure fully to Purchaser and its respective successors or assigns, all of the
properties, rights, titles, interests, estates, remedies, powers and privileges intended to be
conveyed to Purchaser under this Agreement and to assure fully to each Seller and its respective
successors and assigns, the assumption of the liabilities and obligations expressly intended to be
assumed by Purchaser under <U>Section&nbsp;2.3(a)</U> of this Agreement, and to otherwise make
effective the transactions contemplated hereby.


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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt">ARTICLE III.



<P align="center" style="font-size: 10pt">CONSIDERATION



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. <U>Consideration</U>.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The aggregate consideration for the Purchased Assets (the &#147;<U>Purchase Price</U>&#148;) shall
be (a)&nbsp;cash in an amount equal to the lesser of (i) $120,000,000 and (ii)&nbsp;an amount necessary to
pay indebtedness outstanding under the DIP Credit Agreement, including all outstanding principal,
accrued and unpaid interest, fees, expenses or other amounts owing thereunder at the time of
Closing (the &#147;<U>Cash Purchase Price</U>&#148;), (b)&nbsp;10,500,000 shares of Parent Common Stock (the
&#147;<U>Parent Shares</U>&#148;), (c)&nbsp;the Subscription Rights, (d)&nbsp;the assumption of the Assumed
Liabilities, (e)&nbsp;tender of a back-to-back standby letter of credit or cash, not to exceed, in the
aggregate $35,000,000, delivered or payable to the administrative agent under the DIP Credit
Agreement (the &#147;<U>Letter of Credit Purchase Price</U>&#148;), backing up any trade payables and
workers&#146; compensation obligations, issued pursuant to Article&nbsp;1.3 of the DIP Credit Agreement,
together with documentation reflecting Purchaser&#146;s right to receive back any portion of the Letter
of Credit Purchase Price in excess of any amounts not drawn under any such letters of credit; and
(f) $5,000,000 in cash at Closing for payment of professional fees within the carveout set forth in
Paragraph 8(a) of that certain Order, captioned Final Order (1)&nbsp;Authorizing Debtors-in-Possession
to Obtain Financing, Grant Security Interests and Accord Priority Status Pursuant to 11 U.S.C.
Sections&nbsp;361, 364(c) and 364(d); (2)&nbsp;Authorizing Debtors to Use Cash Collateral Pursuant to 11
U.S.C. sections 361 and 363; and (3)&nbsp;Modifying Automatic Stay, approved by the United States
Bankruptcy Court, dated June&nbsp;18, 2003.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The recipients of the Parent Shares and Subscription Rights that are part of the Purchase
Price will be given the opportunity to become parties to the Registration Rights Agreement and
thereby be entitled to registration rights pursuant to the Registration Rights Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. <U>Purchase Price Deposit</U>
Pursuant to the terms of the Escrow Agreement, Purchaser shall deposit with Citibank, N.A., in
its capacity as escrow agent (the &#147;<U>Escrow Agent</U>&#148;), the sum of $12,500,000 (&#147;<U>Deposit
Amount</U>&#148;), by wire transfer of immediately available funds, to be released by the Escrow Agent
and delivered to either Purchaser or the Company in accordance with the provisions of the Escrow
Agreement. The Deposit Amount (together with all interest thereon) shall be distributed as
follows:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;if the Closing shall occur, the Deposit Amount shall be applied toward the Cash Purchase
Price payable by Purchaser to Sellers under <U>Section&nbsp;3.3</U> hereof, with all interest thereon
and any amount in excess of the Cash Purchase Price delivered to Purchaser;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;if this Agreement is terminated by Sellers pursuant to <U>Section&nbsp;4.4(f)</U>, the Deposit
Amount, together with all interest thereon, shall be delivered to the Sellers; or


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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;if this Agreement is terminated for any reason other than by Sellers pursuant to
<U>Section&nbsp;4.4(f)</U>, the Deposit Amount, together with all interest thereon, shall be delivered
to Purchaser.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3. <U>Payment of Purchase Price</U>. (a)&nbsp;On the Closing Date, Purchaser shall, and Parent shall
cause Purchaser to, (i)&nbsp;pay the Cash Purchase Price (less the Deposit Amount) to the administrative
agent under the DIP Credit Agreement on behalf of Sellers, by wire transfer of immediately
available funds into an account or accounts designated in writing by the administrative agent under
the DIP Credit Agreement, (ii)&nbsp;deliver to the administrative agent under the DIP Credit Agreement
on behalf of Sellers the Letter of Credit Purchase Price to satisfy obligations under the DIP
Credit Agreement, and (iii)&nbsp;deliver the Parent Shares and the Subscription Rights on behalf of
Sellers in accordance with the provisions of <U>Section&nbsp;3.3(c)</U> hereof. On the Closing Date
the Company and Purchaser shall cause the Escrow Agent to deliver the Deposit Amount and all
accrued interest thereon as provided in <U>Section&nbsp;3.2(a)</U> hereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Parent Shares and Subscription Rights shall only be required to be delivered in
reliance upon an exemption afforded by the Securities Act, Regulation&nbsp;D promulgated under the
Securities Act, any applicable state and foreign securities laws and any rules and regulations
promulgated pursuant thereto. As a condition of any issuance of Parent Shares and Subscription
Rights to any particular Person, the Parent and Purchaser will require the execution of a
definitive subscription agreement and an investor questionnaire and certification in the form of
Exhibit&nbsp;D hereto and which will be completed by each such Person in a manner reasonably acceptable
to Parent to evidence compliance with applicable exemptions.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Parent Shares and the Subscription Rights shall be delivered as set forth in this
<U>Section&nbsp;3.3(c)</U>. Parent shall issue at the Closing or as soon thereafter as practicable (i)
4,198,845 Parent Shares to Aretex, in its capacity as a First Lien Lender, and (ii)&nbsp;6,301,155
Parent Shares to the other First Lien Lenders on a pro rata basis pursuant to the instructions of
the First Lien Agent. If the Distributable Value of the Parent Shares as determined by the
Bankruptcy Court is less than the amount due to the First Lien Lenders under the First Lien
Lender Agreement (such difference referred to as the &#147;Shortfall&#148;), then Parent shall allocate to
the First Lien Lenders all or such portion of the Subscription Rights as necessary (based on the
Bankruptcy Court&#146;s determination of Distributable Value of the Subscription Rights) up to an amount
equal to the Shortfall, and the balance of the Subscription Rights, if any, shall be allocated to
the Second Lien Lenders. Parent shall issue at the Closing or as soon thereafter as practicable
(i)&nbsp;39.989% of the Subscription Rights allocated as set forth above to the First Lien Lenders to
Aretex, in its capacity as a First Lien Lender, (ii)&nbsp;the balance of the Subscription Rights
allocated to the First Lien Lenders as set forth above to the other First Lien Lenders on a pro
rata basis pursuant to the instructions of the First Lien Agent, (iii)&nbsp;51.212% of the Subscription
Rights allocated as set forth above to the Second Lien Lenders to Aretex, in its capacity as a
Second Lien Lender, and (iv)&nbsp;the balance of the Subscription Rights allocated as set forth above to
the Second Lien Lenders to the other Second Lien Lenders on a pro rata basis pursuant to the
instructions of the Second Lien Agent. To the extent Aretex acquires any additional First Lien
Debt or Second Lien Debt, it shall receive its pro rata share of Parent Shores and Subscription
Rights in addition to the amounts specified above as a First Lien Lender or


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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">Second Lien Lender as
the case may be. An example of the method distribution is set forth at Exhibit&nbsp;E.



<P align="center" style="font-size: 10pt">ARTICLE IV.



<P align="center" style="font-size: 10pt">CLOSING AND TERMINATION



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. <U>Closing Date</U>. Subject to the satisfaction of the conditions set forth in <U>Sections
10.1</U> <U>10.2</U> and <U>10.3</U> hereof (or the waiver thereof by the party entitled to waive
that condition), the closing of the purchase and sale of the Purchased Assets and the assumption of
the Assumed Liabilities provided for in <U>Article&nbsp;II</U> hereof (the &#147;<U>Closing</U>&#148;) shall
take place at the offices of Weil, Gotshal &#038; Manges LLP located at 767 Fifth Avenue, New York, New
York (or at such other place as the parties may designate in writing) at 10:00&nbsp;a.m. (New York City
time) on the date that is two (2)&nbsp;Business Days following the satisfaction or waiver of the
conditions set forth in <U>Article&nbsp;X</U> (other than conditions that by their nature are to be
satisfied at the Closing, but subject to the satisfaction or waiver of such conditions), unless
another time or date, or both, are agreed to in writing by the parties hereto; provided, that if
such date occurs prior to forty-five (45)&nbsp;days after the later of the date of the entry of the
Selection Order or the date of this Agreement the Closing shall take place on such forty-fifth day
after such later date (or, if such day is not a Business Day, then on the next Business Day) unless
Purchaser selects an earlier date by giving Sellers not less than two (2)&nbsp;Business Days notice of
such date. The date on which the Closing shall be held is referred to in this Agreement as the
&#147;<U>Closing Date</U>.&#148;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. <U>Deliveries by Sellers</U>
At the Closing, Sellers shall deliver to Purchaser with respect to the Purchased Assets:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;a duly executed bill of sale in the form of Exhibit&nbsp;F hereto (the &#147;<U>Bill of Sale</U>&#148;);


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;a duly executed general assignment and assumption agreement in the form of Exhibit&nbsp;G
hereto;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;duly executed assignments of the trademark registrations and applications, patent
registrations and applications, copyrights and domain names, in the form suitable for recording in
the U.S. Patent and Trademark Office, substantially in the forms annexed as Exhibits H, I, J and K
hereto, respectively, and general assignments of all other Intellectual Property;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;duly executed special warranty deeds, as that term is commonly understood in the
respective jurisdictions (subject only to Permitted Exceptions), substantially in the form of
Exhibit&nbsp;L for each of the Material Owned Real Properties, quit claim deeds, as that term is
commonly understood in the respective jurisdictions, substantially in the form of Exhibit&nbsp;M for
each of the Immaterial Owned Real Properties, a certificate in compliance with the Foreign
Investment in Real Property Tax Act (&#147;<U>FIRPTA</U>&#148;) certifying that the respective Seller is


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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">not
a person or entity subject to withholding under FIRPTA, a &#147;No Mechanic&#146;s Lien&#148; affidavit, GAP
Undertaking, and all other customary title clearance documents required by the title insurance
company issuing the policies with respect to each of the Owned Real Properties and each of the
Leased Real Properties for which title insurance policies are being obtained by Purchaser,
including, without limitation, a survey affidavit, executed by the appropriate Seller, together
with any necessary state, county or municipal transfer declarations as required by Law.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;a duly executed assignment and assumption of Contracts and Real Property Leases in the
form of Exhibit&nbsp;N hereto;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;the officer&#146;s certificate required to be delivered pursuant to <U>Section&nbsp;10.1(c)</U>;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;all assignments and transfer instruments necessary to transfer control, ownership and
signature authority of all bank accounts, lockbox accounts, securities accounts, and other accounts
under the name of any Seller as of the Closing Date along with a schedule of all such bank
accounts, lockbox accounts, securities accounts, and other accounts with account numbers, bank name
and address and other information reasonably requested by Purchaser with respect thereto;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;UCC-3 termination Statements, control agreement terminations and other release documents
releasing all Liens of the agents and lenders under the DIP Credit Agreement;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;all assignments and transfers of certificates of title and registrations for all vehicles
owned by Sellers as of the Closing Date along with a schedule of all such vehicles and information
reasonably requested by Purchaser with respect thereto;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;a written notice to the Escrow Agent, executed by the Company, of the Closing pursuant to
Section 3(e) of the Escrow Agreement;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;the indemnity agreement executed by J.P. Stevens &#038; Co., Inc. in the form of Exhibit&nbsp;S
hereto, and the executed notice to its insurance company that it is entering into the indemnity
agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;all other instruments of conveyance and transfer, in form and substance reasonably
acceptable to Purchaser, as may be necessary to convey the Purchased Assets to Purchaser or any of
its Affiliates designated by Purchaser pursuant to <U>Section&nbsp;12.11</U>.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3. <U>Deliveries by Purchaser</U>. At the Closing, Purchaser shall, and Parent shall cause
Purchaser to, deliver pursuant to <U>Section&nbsp;3.3</U>, as applicable:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;the Cash Purchase Price (less the Deposit Amount), in immediately available funds, as set
forth in <U>Section&nbsp;3.3</U> hereof;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;the Parent Shares and the Subscription Rights in accordance with <U>Section&nbsp;3.3</U>;


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;a duly executed general assignment and assumption agreement in the form attached hereto as
Exhibit&nbsp;G;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;the officer&#146;s certificate required to be delivered pursuant to <U>Section&nbsp;10.2(e)</U>;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;a duly executed assignment and assumption of Contracts and Real Property Leases in the
form of Exhibit&nbsp;N attached hereto;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;the Registration Rights Agreement executed by Parent; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;a written notice to the Escrow Agent, executed by Purchaser, of the Closing pursuant to
Section 3(e) of the Escrow Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4. <U>Termination of Agreement</U>. This Agreement may be terminated prior to the Closing as
follows:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;(i)&nbsp;by Purchaser, if the Closing shall not have occurred by the close of business on
September&nbsp;30, 2005, time being of the essence for the Closing, <U>provided</U>, that if the
Closing shall not have occurred on or before September&nbsp;30, 2005 due to a material breach of any
representations, warrants, covenants or agreements contained in this Agreement by Purchaser, then
Purchaser may not terminate this Agreement pursuant to this <U>Section&nbsp;4.4(a)</U>, or (ii)&nbsp;by
Sellers, if the Closing shall not have occurred by the close of business on October&nbsp;31, 2005;
<U>provided</U>, <U>however</U>, that if the Closing shall not have occurred on or before
October&nbsp;31, 2005 due to a material breach of any representations, warranties, covenants or
agreements contained in this Agreement by any Seller, or due to the failure of the condition to
Closing set forth in <U>Section&nbsp;10.1(l)</U> relating to Section&nbsp;8.9(d) to be satisfied, then
Sellers may not terminate this Agreement pursuant to this <U>Section&nbsp;4.4(a)</U>;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;by mutual written consent of Sellers and Purchaser;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;by Purchaser, if any of the conditions to the obligations of Purchaser set forth in
<U>Sections&nbsp;10.1</U> (other than <U>Sections&nbsp;10.1(a)</U> and <U>(b)</U>) and <U>10.3</U> shall
have become incapable of fulfillment other than as a result of a breach by Purchaser of any
covenant or agreement contained in this Agreement, and such condition is not waived by Purchaser;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;by Sellers, if any condition to the obligations of Sellers set forth in <U>Sections
10.2</U> (other than <U>Sections&nbsp;10.2(a)</U> and <U>(b)</U>)and <U>10.3</U>) shall have become
incapable of fulfillment other than as a result of a breach by any Seller of any covenant or
agreement contained in this Agreement, and such condition is not waived by any Seller;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;by Purchaser, if there shall be a breach by any Seller of any representation or warranty,
or any covenant or agreement contained in this Agreement which results in a failure of a condition
set forth in <U>Sections&nbsp;10.1(a)</U> or <U>(b)</U> and such breach has not been cured by the
earlier of (i)&nbsp;twenty (20)&nbsp;Business Days after the giving of written notice by Purchaser to Sellers
of such breach and (ii)&nbsp;September&nbsp;30, 2005, time being of the essence for the Closing;


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;by Sellers, if there shall be a breach by Purchaser of any representation or warranty, or
any covenant or agreement contained in this Agreement which results in a failure of a condition set
forth in <U>Sections&nbsp;10.2(a)</U> or <U>(b)</U> and such breach has not been cured by twenty (20)
Business Days after the giving of written notice by Sellers to Purchaser of such breach; provided,
that Seller shall not have the right to terminate this Agreement if Purchaser has a right to
terminate this Agreement at such time or would have the right to terminate with the passage of
time;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;by Sellers or Purchaser, if there shall be in effect a Final Order of a Governmental Body
of competent jurisdiction restraining, enjoining or otherwise prohibiting the consummation of the
transactions contemplated hereby;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;by Purchaser or Sellers, if the Bankruptcy Court shall enter an order approving any sale
or other disposition of the assets and properties of Sellers to a Person other than Purchaser or
its Affiliates and Subsidiaries, or Sellers select, or announce a selection of, a Person other than
Purchaser as the Successful Bidder (as defined in the Bidding Procedures Order) in the auction
conducted pursuant to the Bidding Procedures Order;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;by Purchaser, pursuant to the provisions of <U>Section&nbsp;10.5</U>;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;by Purchaser, if the Selection Order is not entered by July&nbsp;13, 2005, time being of the
essence for entry of such Order;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;by Purchaser, if Sellers file a motion seeking to revoke or modify the Bidding Procedures
Order without the prior written consent of Purchaser;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;by Purchaser, pursuant to <U>Section&nbsp;7.3(b)(i) </U>or <U>7.3(b)(ii)</U>; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;by Sellers, pursuant to <U>Section&nbsp;7.3(b)(i). </U>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5. <U>Procedure Upon Termination</U>. In the event of an election to terminate by Purchaser or
Sellers, or both, pursuant to <U>Section&nbsp;4.4</U> hereof, written notice thereof shall forthwith be
given to the other party or parties, and this Agreement shall terminate, without further action by
Purchaser or Sellers. If this Agreement is terminated as provided herein each party shall return
to the other party all documents, work papers and other material of such other party furnished to
it by such other party and in its possession and relating to the transactions contemplated hereby,
whether so obtained before or after the date hereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6. <U>Effect of Termination</U>. In the event that this Agreement is terminated as provided
herein, then each of the parties shall be relieved of its duties and obligations arising under this
Agreement after the date of such termination and such termination shall be without liability to
Parent, Purchaser or Sellers; <U>provided</U>, <U>however</U>, that the obligations and rights of
the parties set forth in <U>Section&nbsp;3.2</U> and under the Escrow Agreement, <U>Section&nbsp;7.2</U>
and <U>Article&nbsp;XII</U> hereof shall survive any such termination and shall be enforceable
hereunder and Sellers shall remain liable to Parent and Purchaser for any breach occurring prior to
termination.


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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">The sole and exclusive remedy of Sellers upon any such termination shall be as
described in <U>Section&nbsp;12.4</U>.



<P align="center" style="font-size: 10pt">ARTICLE V.



<P align="center" style="font-size: 10pt">REPRESENTATIONS AND WARRANTIES OF SELLERS



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Seller hereby jointly and severally represents and warrants to Parent and Purchaser that:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. <U>Organization and Good Standing</U>. Each Seller is an entity duly organized, validly
existing and in good standing under the laws of the jurisdiction of its organization and, subject
to the limitations imposed on such Seller as a result of having filed a petition for relief under
the Bankruptcy Code, has the requisite power and authority to own, lease and operate its properties
and to carry on its business as now conducted and is qualified to do business in every jurisdiction
where the conduct of its business requires it to be so qualified except where failure to so qualify
would not reasonably be expected to have a Seller Material Adverse Effect. Each Subsidiary is
wholly owned directly or indirectly by the Company. No Seller, other than J.P. Stevens
Enterprises, Inc., is a subsidiary of J.P. Stevens &#038; Co., Inc.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. <U>Authorization of Agreement</U>. Subject to entry of the Selection Order, the Sale Order
and, if applicable, the Confirmation Order and such other authorization as is required by the
Bankruptcy Court, each Seller has the requisite power and authority to execute and deliver this
Agreement and the Ancillary Documents and to perform its respective obligations hereunder and
thereunder. The execution and delivery of this Agreement has and upon execution and delivery of
all Ancillary Documents, such Ancillary Documents will be and the consummation of the transactions
contemplated hereby have been duly authorized by all requisite corporate action on the part of each
Seller and no other corporate action is necessary to authorize such agreements and such
transactions. This Agreement has been, and upon execution and delivery thereof all Ancillary
Documents will be, duly and validly executed and delivered by each Seller party thereto and
(assuming the due authorization, execution and delivery by the other parties hereto, the entry of
the Selection Order, the Sale Order and, if applicable, the Confirmation Order) constitutes and
will constitute the legal, valid and binding obligations of each Seller enforceable against such
Seller in accordance with its respective terms, subject, as to enforceability, to general
principles of equity, including principles of commercial reasonableness, good faith and fair
dealing (regardless of whether enforcement is sought in a proceeding at law or in equity).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3. <U>Conflicts; Consents of Third Parties</U>.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Except as set forth on <U>Schedule&nbsp;5.3(a)</U>, the execution and delivery by each Seller
of this Agreement and the Ancillary Documents, the consummation of the transactions contemplated
hereby, or compliance by such Seller with any of the provisions hereof or thereof do not and will
not (A)&nbsp;conflict with, or result in any violation of or default (with or without notice or lapse of
time, or both) under, or (B)&nbsp;give rise to, (x)&nbsp;the creation of a Lien upon any


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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">Seller&#146;s properties
or assets or (y)&nbsp;a right of termination, cancellation or acceleration of any obligation or (z)&nbsp;a
loss of a benefit under any provision of:



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;the certificate of incorporation and by-laws or comparable organizational documents of
such Seller;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;subject to entry of the Sale Order and, if applicable, the Confirmation Order, any
Contract or Permit to which such Seller is a party or by which any of the properties or assets of
such Seller are bound other than such conflicts, violations, defaults, terminations or
cancellations as would not reasonably be expected to have, individually or in the aggregate, a
Seller Material Adverse Effect;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;subject to entry of the Sale Order and, if applicable, the Confirmation Order, any Order
of any Governmental Body applicable to such Seller or any of the properties or assets of such
Seller; or


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;subject to entry of the Sale Order and, if applicable, the Confirmation Order, any
applicable Law.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Except as set forth on <U>Schedule&nbsp;5.3(b)</U>, and except to the extent not required if
the Sale Order and, if applicable, the Confirmation Order, is entered, no consent, waiver,
approval, Order, Permit or authorization of, or declaration or filing with, or notification to, any
Person or Governmental Body is required on the part of Sellers in connection with the execution and
delivery of this Agreement and the Ancillary Documents, the assignment of the Material Contracts,
the assignment of the Real Property Leases, the assignment of Permits, the assignment of Material
Intellectual Property Licenses, the compliance by Sellers with any of the provisions hereof or
thereof, the consummation of the transactions contemplated hereby or thereby or the taking by
Sellers of any other action contemplated hereby or thereby, except for:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;compliance with the applicable requirements of the HSR Act;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;the entry of the Selection Order and the Sale Order or, if applicable, the Confirmation
Order; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;such other consents, waivers, approvals, Orders, permits, authorizations, declarations,
filings and notifications, the failure of which to obtain or make would not reasonably be expected
to have, individually or in the aggregate, a Seller Material Adverse Effect. The parties
acknowledge and agree that <U>Schedule&nbsp;5.3(b)</U> is not an admission that any consent to
assignment or any contractual clause forbidding assignment that is listed on <U>Schedule
5.3(b)</U> is enforceable under or is overridden by Section&nbsp;365 of the Bankruptcy Code or any other
applicable Law.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4. <U>Reports; Financial Statements</U>.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Except as set forth on <U>Schedule&nbsp;5.4</U>, since January&nbsp;1, 2004, the Company has filed
all reports, schedules, forms, statements and other documents (including exhibits and


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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">other
information incorporated therein) with the Securities and Exchange Commission (the &#147;<U>SEC</U>&#148;)
required to be filed by the Company (such documents, the &#147;<U>Company SEC Documents</U>&#148;). Except
as set forth on <U>Schedule&nbsp;5.4</U>, as of their respective dates, the Company SEC Documents
complied in all material respects with the requirements of the Securities Act of 1933, as amended,
(the &#147;Securities Act&#148;) or the Securities Exchange Act of 1934, as amended, (the Exchange Act&#148;) as
the case may be, and the rules and regulations of the SEC promulgated thereunder applicable to such
Company SEC Documents, and, as of their respective dates, none of the Company SEC Documents
contained any untrue statement of a material fact or omitted to state a material fact required to
be stated therein or necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading. Except as set forth on <U>Schedule
5.4</U>, the financial statements of the Company included in the Company SEC Documents complied as
to form in all material respects with applicable accounting requirements and the published rules
and regulations of the SEC with respect thereto as of their respective dates, were prepared in
accordance with GAAP (except, in the case of unaudited statements, as permitted by Form&nbsp;10-Q of the
SEC) applied on a consistent basis during the periods involved (except as may be indicated in the
notes thereto) and present fairly in all material respects the
financial position of the Company and its consolidated Subsidiaries as of the dates thereof
and the consolidated results of their operations and cash flows for the periods then ended
(subject, in the case of unaudited statements, to normal year-end audit adjustments).



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The December Financial Statements were prepared in accordance with GAAP applied on a
consistent basis during the period involved (except as indicated in the notes thereto) and present
fairly in all material respects the financial position of the Company and its consolidated
Subsidiaries as of December&nbsp;31, 2004 and the consolidated results of their operations and cash
flows for the period then ended (subject to normal year-end audit adjustments).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5. <U>Title to Purchased Assets</U>. Except as set forth in <U>Schedule&nbsp;5.5</U>, and other
than the real property subject to the Real Property Leases, Intellectual Property licensed to
Sellers and the personal property subject to the Personal Property Leases, Sellers own the
Purchased Assets, and, subject to the entry of the Sale Order and, if applicable, the Confirmation
Order, and consummation of the Closing, Purchaser will be vested with good title to the Purchased
Assets, free and clear of all Liens other than Permitted Exceptions and Intellectual Property
Licenses.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6. <U>Taxes</U>.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Except as set forth on <U>Schedule&nbsp;5.6(a)</U>, and except for matters that would not
reasonably be expected to have, individually or in the aggregate, a Seller Material Adverse Effect,
(i)&nbsp;Sellers have timely filed all Tax Returns required to be filed with the appropriate Tax
Authorities in all jurisdictions in which such Tax Returns are required to be filed (taking into
account any extension of time to file granted or to be obtained on behalf of Sellers); (ii)&nbsp;except
as to Taxes of Sellers the payment of which is prohibited or stayed by the Bankruptcy Code, all
Taxes shown to be due and payable on such Tax Returns have been paid; (iii)&nbsp;the amounts set up as a
provision for Taxes on the unaudited consolidated statement of Sellers&#146; financial position as


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<P align="left" style="font-size: 10pt">of
December&nbsp;31, 2004 are sufficient for the payment of all accrued and unpaid Taxes of Sellers, as of
such date whether or not disputed; (iv)&nbsp;the statute of limitations with respect to all Tax Returns
for Tax periods of the Sellers ending on or prior to December&nbsp;31, 2000 (in the case of Tax Returns
that have a four year statute of limitations, December&nbsp;31, 1999) have expired; (v)&nbsp;no Tax Authority
has asserted any additions to Tax to the Sellers; (vi)&nbsp;none of Sellers (a)&nbsp;during the last seven
years has been a member of a consolidated, combined or unitary group (an &#147;<U>Affiliated
Group</U>&#148;) for federal, state or local income tax purposes other than an Affiliated Group of which
the Company is the common parent and (b)&nbsp;has any transferee or successor liability in respect of
Taxes (whether by contract or otherwise); and (vii)&nbsp;based on Sellers&#146; best estimate, the amount of
Transfer Taxes applicable to the transfer of the Purchased Assets pursuant to this Agreement to the
extent not exempt under Section&nbsp;1146(c) of the Bankruptcy Code or otherwise shall not exceed
$500,000.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;None of Sellers is a foreign person within the meaning of Section&nbsp;1445 of the Tax Code.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7. <U>Real and Personal Properties</U>.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<U>Schedule&nbsp;5.7(a)</U> sets forth the street addresses and legal descriptions (which will
be delivered no later than fifteen (15)&nbsp;days after the date of this Agreement pursuant to Section
8.10) of each parcel of real property owned by the respective Sellers that is necessary for or
utilized in the operation of the Business, as well as each parcel of real property owned by the
respective Sellers that contains a closed facility that has not otherwise been sold as of the date
of this Agreement (each a &#147;<U>Material Owned Real Property</U>&#148; and, collectively, the
&#147;<U>Material Owned Real Properties</U>&#148;). Each of the Sellers listed on <U>Schedule&nbsp;5.7(a)</U>
holds fee simple title to their respective Material Owned Real Properties, subject only to
Permitted Exceptions. Except as set forth on <U>Schedule&nbsp;5.7(a)</U>, and except for recorded
leases with railroads or utility providers shown on surveys previously provided to Purchaser, the
Material Owned Real Properties are not subject to any leases or tenancies or other rights of
occupancy. None of the Sellers has received notice that any of the improvements comprising the
Material Owned Real Properties or the business conducted by the respective Sellers thereon is in
violation of any building line, use or occupancy restriction, limitation, easement, condition or
covenant of record. There are no physical defects in the buildings or other facilities or
machinery or equipment located at any of the Material Owned Real Properties which individually or
in the aggregate would reasonably be expected to have a Seller Material Adverse Effect.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>Schedule&nbsp;5.7(b)</U> sets forth the street addresses of each parcel of real property
that is leased by the respective Sellers (each a &#147;<U>Leased Real Property</U>&#148; and, collectively,
the &#147;<U>Leased Real Properties</U>&#148;). The Leased Real Properties are leased to the respective
Sellers listed on <U>Schedule&nbsp;5.7(b)</U> pursuant to written leases (each a &#147;<U>Real Property
Lease</U>&#148; and collectively, the &#147;<U>Real Property Leases</U>&#148;). With respect to each Leased Real
Property, (i)&nbsp;the Seller that is the tenant under such Real Property Lease has not received any
notice of default under the Real Property Lease in the twelve (12)&nbsp;month period prior to the date
hereof. None of the Sellers has received notice that any of the improvements comprising the Leased
Real Properties or the business conducted by the respective Sellers thereon is in material
violation of


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<P align="left" style="font-size: 10pt">any building line, use or occupancy restriction, limitation, easement, condition or
covenant of record. There are no physical defects in the buildings or other facilities or
machinery or equipment located at any of the Leased Real Properties which individually or in the
aggregate would reasonably be expected to have a Seller Material Adverse Effect.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Each facility located on the Material Owned Real Properties and Leased Real Properties is
served by such utilities as are adequate to operate such facility at its current rate of
production. Such utilities either enter the Material Owned Real Properties or Leased Real
Properties through adjoining public streets or, if they pass through adjoining private land, do so
in accordance with valid, permanent public or private easements which, following the Closing, will
inure to the benefit of Purchaser, its successors and assigns (except that no representation is
made herein with respect to any utility lines owned by Sellers or any of Seller&#146;s predecessors
in interest that serve the Material Owned Real Properties located in Valley, Alabama and Opelika,
Alabama for which easements, rights-of-way or other rights to retain, operate, use or maintain such
utility lines were reserved or intended to have been reserved when the land(s) upon which such
lines are located were sold or otherwise conveyed to third parties and, no representation is made
herein as to utility lines owned by public or private third party utility providers which may cross
private lands owned by third parties). All of said utilities are installed and operating (except
with respect to any closed facilities where the utility service has been cancelled) and all
installation and connection charges have been paid for in full.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Except as set forth on <U>Schedule&nbsp;5.7(d),</U> the continued maintenance and operation of
the Material Owned Real Properties as currently maintained and operated is not dependent on
facilities located at any other property, and the continued maintenance and operation of any other
property is not dependent on facilities located on any of the Material Owned Real Properties; no
building or other improvement not part of an Owned Real Property relies on an Material Owned Real
Property or any part thereof or any interest therein to fulfill any governmental requirement; and
no building or other improvement on an Material Owned Real Property relies on any property not
included within the Material Owned Real Property to fulfill any governmental requirement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Except as disclosed in <U>Schedule&nbsp;5.7(e),</U> there are no challenges or appeals pending
regarding the amount of the Taxes on, or the assessed valuation of, any of the Material Owned Real
Properties or, to the Knowledge of Sellers, the Leased Real Properties, and no special arrangements
or agreements exist with any governmental authority with respect thereto. Except as set forth on
<U>Schedule&nbsp;5.7(e)</U>, there are no Tax abatements with respect to Taxes on any of the Owned Real
Properties or any of the Leased Real Properties. None of the Sellers has received notice of any
new Tax assessment for any of the Material Owned Real Properties or, to the extent any Seller is
liable for payment therefor, the Leased Real Properties, not otherwise included in any previous
real estate Tax bill, requiring payments in excess of $100,000.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;There is no pending or, to the Knowledge of Sellers, threatened condemnation proceeding,
administrative action or judicial proceeding of any type relating to any of the Material Owned Real
Properties or the Leased Real Properties, or other proceedings


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<P align="left" style="font-size: 10pt">adversely affecting the current use,
occupancy or value of the Material Owned Real Properties or the Leased Real Properties.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;None of the Material Owned Real Properties is located within any flood plain or subject to
any similar type of restriction for which any permits or licenses necessary for the use thereof
have not been obtained.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;With respect to leases of personal property involving annual payments in excess of
$100,000 relating to personal property used by a Seller in the Business and to which a Seller is a
party or by which its properties or assets are bound (collectively, the &#147;<U>Personal Property
Leases</U>&#148;), to the Knowledge of Sellers, no Seller has received any written notice of any default
or event that with notice or lapse of time or both would constitute a default by Sellers
under any of the Personal Property Leases, in each case with such exceptions as would not
reasonably be expected to have, individually or in the aggregate, a Seller Material Adverse Effect
and except as a result of the Bankruptcy Cases.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8. <U>Intellectual Property</U>. <U>Schedule&nbsp;5.8(a)</U> sets forth a complete list of all
material Intellectual Property (other than Intellectual Property Licenses) owned by Sellers which
are either (a)&nbsp;subject to registrations and applications for registration or (b)&nbsp;to the Knowledge
of Sellers, material unregistered trademarks, service marks, trade names and service names (whether
or not any material unregistered trademark, service mark, trade name and service name was the
subject of a registration or application which has expired or been abandoned). The Sellers own all
right, title and interest in the items set forth on <U>Schedule&nbsp;5.8(a)</U> except as set forth
otherwise on such Schedule and any Intellectual Property Licenses relating thereto. <U>Schedule
5.8(b)</U> sets forth a complete list of all (i)&nbsp;written Intellectual Property Licenses and (ii)&nbsp;to
the Knowledge of Sellers, oral Intellectual Property Licenses, except for in the case of both of
the foregoing (i)&nbsp;and (ii)&nbsp;such Intellectual Property Licenses that do not involve annual payments
by or to a Seller of more than $100,000. Notwithstanding the foregoing, <U>Schedule&nbsp;5.8(b)</U>
shall also include (i)&nbsp;all material written Intellectual Property Licenses and (ii)&nbsp;to the
Knowledge of Sellers, material oral Intellectual Property Licenses, that in the case of both of the
foregoing (i)&nbsp;and (ii)&nbsp;grant any right to use any trademark, service mark, trade name or service
name, regardless of whether such Intellectual Property Licenses involve annual payments by or to a
Seller of more than $100,000. Except as set forth on <U>Schedule&nbsp;5.8(c)</U>, to the Knowledge of
the Sellers, the Sellers own the right, title and interest in, or have licenses or all other rights
necessary to use all material Intellectual Property free and clear of all liens other than
Permitted Exceptions and Intellectual Property Licenses. Except as set forth on <U>Schedule
5.8(d)</U>, (i)&nbsp;there are no claims, investigations or Legal Proceedings that were asserted after
the Petition Date that are pending as of the date hereof or, to the Knowledge of Sellers,
threatened as of the date hereof against any Seller before any Governmental Body with regard to the
ownership by Sellers of any of the Intellectual Property, (ii)&nbsp;Sellers have not received any
written notice alleging that they have misappropriated any material Intellectual Property, or that
any of the material Intellectual Property or the exercise of any material Intellectual Property
right has infringed upon any intellectual property rights of third parties and to the Knowledge of
Sellers, Sellers have a reasonable basis to believe no such claim may be successfully asserted by
any third party, (iii)&nbsp;to the Knowledge of Sellers, no third party has infringed upon or


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<P align="left" style="font-size: 10pt">misappropriated any of the Intellectual Property, (iv)&nbsp;there are no claims, investigations or Legal
Proceedings that were asserted after the Petition Date that are pending as of the date hereof or,
to the Knowledge of Sellers, threatened as of the date hereof against any Seller before any
Governmental Body which challenge the legality, validity, enforceability, use or ownership of any
Intellectual Property. Except as set forth on <U>Schedule&nbsp;5.8(e)</U>, to the Knowledge of
Sellers, the Sellers have taken commercially reasonable efforts to pay all maintenance and renewal
fees and take other maintenance actions that are required to be paid or taken as of the date hereof
in connection with the registrations and applications set forth on <U>Schedule&nbsp;5.8(a)</U>. No
Seller is in violation or default under any Intellectual Property License set forth on <U>Schedule
5.8(b)</U>, except for violations or defaults disclosed on <U>Schedule&nbsp;5.8(b) </U>or violations or
defaults that are not material. To the Knowledge of
Sellers, no other party is in violation or default that could be the basis of termination under any
material Intellectual Property License granting any right to use any trademark, service mark, trade
name or service name. None of the Sellers is subject to any agreement (other than Intellectual
Property Licenses), or Order which restricts or impairs the use of any Intellectual Property except
for Orders entered into in connection with the Bankruptcy Case as would not reasonably be expected
to have, individually or in the aggregate, a Seller Material Adverse Effect. Except as set forth
on <U>Schedule&nbsp;5.8(f)</U>, Sellers have taken such efforts that are commercially reasonable in
accordance with applicable industry standards to protect the confidentiality of any material trade
secrets and other material confidential and proprietary business information included in the
Purchased Assets. Sellers have used commercially reasonable efforts to cause each of their
employees, consultants and independent contractors to enter into a written invention assignment
agreement with the Sellers, where, in Seller&#146;s reasonable business judgment, such employees,
consultants and independent contractors require such agreements. Notwithstanding anything to the
contrary contained in this <U>Section&nbsp;5.8</U>, none of the representations in <U>Section&nbsp;5.8</U>
shall apply to off the shelf or shrink wrap Software that is generally available for purchase or
license from a third Person and the term Intellectual Property License as used in this <U>Section
5.8</U> shall be deemed to exclude such off the shelf or shrink wrap Software.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.9. <U>Contracts</U>. <U>Schedule&nbsp;5.9</U> is a complete listing of all Contracts (other than
purchase and sale orders entered into by Sellers in the Ordinary Course of Business and Real
Property Leases) to which any Seller is a party or by which it or any of its properties or other
assets is bound except for such Contracts that (i)&nbsp;do not restrict Seller from freely engaging in
business and (ii)&nbsp;do not involve annual payments by or to any Seller of more than $250,000
(collectively, the &#147;<U>Material Contracts</U>&#148;). No Seller is in violation of or in default under
any Material Contract to which it is a party or by which it or any of its properties or other
assets is bound, except for violations or defaults disclosed on Schedule&nbsp;5.9 or that would not
reasonably be expected to have, individually or in the aggregate, a Seller Material Adverse Effect.
Sellers have made available to Purchaser true, correct and complete copies of all Material
Contracts.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10. <U>Employee Benefits</U>.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<U>Generally</U>. <U>Schedule&nbsp;5.10(a)</U> contains a true and complete list of each
Employee Plan with respect to which Sellers have any obligation or liability, contingent or
otherwise, for Employees (each such Employee Plan a &#147;Listed Employee Plan&#148;). The Sellers


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<P align="left" style="font-size: 10pt">will make
available to the Purchaser true and complete copies of all documents, if any, embodying each Listed
Employee Plan, including all amendments thereto; the three most recent annual reports filed (Form
5500 Series with applicable schedules) with respect to each Listed Employee Plan required under
ERISA; the most recent summary plan description, if any, with respect to each Listed Employee Plan
required under ERISA; the most recent favorable determination letter from the IRS, if applicable,
with respect to each Employee Plan; and all
material communications; if any, provided after January&nbsp;1, 2003 to the Employees generally
relating to each Employee Plan.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>Multiemployer Plans</U>. None of Sellers nor any other trade or business that
together with any Seller would be deemed a &#147;single employer&#148; within the meaning of Section 4001(b)
of ERISA (an &#147;<U>ERISA Affiliate</U>&#148;) has contributed to any Employee Plan that is a
multiemployer plan as defined in Section&nbsp;3(37) of ERISA.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<U>Effect of Transaction</U>. <U>Schedule&nbsp;5.10(c)</U> contains a list of all
compensation and benefits which will or may be made by the Sellers, or any of their respective
Affiliates, to any Employee which is contingent upon a change of control within the meaning of
Section&nbsp;280G of the Tax Code.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.11. <U>Employment Matters</U>. Each Seller: (1)&nbsp;is in compliance with all applicable federal
and state laws and regulations respecting employment, employment practices, terms and conditions of
employment and wages and hours, in each case, with respect to its Employees, except where the
failure to be in compliance would not reasonably be expected to have individually or in the
aggregate, a Seller Material Adverse Effect; (2)&nbsp;has withheld all amounts required by law or by
agreement to be withheld from the wages, salaries and other payments to Employees and has remitted
such withholding to the appropriate authorities and is not subject to any pending audit regarding
the same; (3)&nbsp;is not liable for any arrears of wages, including vacation pay, overtime pay or pay
equity adjustments or any taxes or any penalty for failure to comply with any of the foregoing; and
(4)&nbsp;is not liable for any payment to any trust or other fund or to any governmental or
administrative authority, with respect to unemployment compensation benefits, Social Security, or
other benefits for Employees (other than routine payments to be made in the normal course of
business and consistent with past practice). <U>Schedule&nbsp;5.11</U> contains a true and accurate
list of accrued vacation pay for Employees as of June&nbsp;17, 2005.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.12. <U>Litigation</U>. Except as set forth on <U>Schedule&nbsp;5.12</U>, there are no Legal
Proceedings that were asserted after the Petition Date and pending as of the date hereof or to the
Knowledge of Sellers, threatened as of the date hereof, against any Seller before any Governmental
Body that (i)&nbsp;seeks to restrain, materially modify, prevent, or materially delay the consummation
of the transactions contemplated by this Agreement or the Ancillary Documents, or (ii)&nbsp;questions
the validity of this Agreement or any of the Ancillary Documents, or any action taken or to be
taken by a Seller in connection with this Agreement or any of the Ancillary Documents. Other than
the Bankruptcy Case or obligations that will be discharged in the Bankruptcy Case, there is no
Legal Proceeding that was asserted after the Petition Date and is


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<P align="left" style="font-size: 10pt">pending as of the date hereof
that involves a dispute of more than $250,000 or seeks to obtain injunctive relief against any
Seller.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.13. <U>Compliance with Laws; Permits</U>
Except with respect to Environmental Laws (which are addressed in <U>Section&nbsp;5.14</U>), each
Seller (i)&nbsp;is in compliance with all Laws applicable to its respective operations or assets or the
Business, except where the failure to be in compliance would not reasonably be expected to have,
individually or in the aggregate, a Seller Material Adverse Effect and (ii)&nbsp;currently has all
Permits which are required for the operation of the Business as presently conducted, except where
the absence of which would not reasonably be expected to have, individually or in the aggregate, a
Seller Material Adverse Effect. <U>Schedule&nbsp;5.13</U> sets forth a list of all Permits owned or
used by any Seller.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.14. <U>Environmental Matters</U>. Except as set forth on <U>Schedule&nbsp;5.14</U> and except for
facts, circumstances or conditions that would not reasonably be expected to have, individually or
in the aggregate, a Seller Material Adverse Effect, (a)&nbsp;the operations of Sellers are in compliance
with all applicable Environmental Laws and Environmental Permits, (b)&nbsp;none of Sellers is the
subject of any outstanding Order with any Governmental Body respecting (i)&nbsp;Environmental Laws, (ii)
a Remedial Action, or (iii)&nbsp;Environmental Permits, (c)&nbsp;there is no investigation, action or
proceeding pending, or, to the Knowledge of Sellers, threatened that could reasonably be expected
to result in Sellers incurring any material liability pursuant to any applicable Environmental Law,
(d)&nbsp;the Sellers have not received any notice, report or other communication regarding (x)&nbsp;any
violation of any Environmental Laws or any Environmental Permits, or (y)&nbsp;any Environmental
Liabilities, including any investigatory, remedial or corrective obligations, relating to the
Sellers, or that it is responsible (or partly responsible) for the removal, remediation, or other
clean-up of any Hazardous Materials at, on, under, or emanating from the Sellers&#146; Properties or
properties used in connection with the Business, (e)&nbsp;the Sellers possess all Environmental Permits
necessary for their respective operation, and all such Environmental Permits are valid and in good
standing, and there is no pending, or to the knowledge of the Sellers, threatened action to revoke,
modify, terminate or otherwise materially change the terms or conditions of any such Environmental
Permits, and (f)&nbsp;there is (i)&nbsp;no friable asbestos contained in or forming a part of any building,
building component, structure or office space included in the Sellers&#146; Properties, (ii)&nbsp;no
polychlorinated biphenyls are used, stored, or released on any of the Sellers&#146; Properties, or (iii)
there are no underground storage tanks or surface impoundments containing Hazardous Materials
located on, under or at any of the Sellers&#146; Properties.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.15. <U>Financial Advisors</U>. Except as set forth on <U>Schedule&nbsp;5.15</U>, no Person has
acted, directly or indirectly, as a broker, finder or financial advisor for Sellers in connection
with the transactions contemplated by this Agreement. No Person is entitled to any fee or
commission or like payment from Purchaser in respect thereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.16. <U>Representations/Warranties; Schedules</U>. Sellers makes no representations or
warranties to Purchaser regarding the probable success or profitability of the Business. The
disclosure of any matter or item in any schedule hereto shall
not be deemed to constitute an acknowledgment that any such matter is required to be disclosed or
is material or that such matter would result in a Seller Material Adverse Effect. The
representations of Sellers


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<P align="left" style="font-size: 10pt">shall be unaffected by any investigation made heretofore or hereafter by
or on behalf of Purchaser.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.17. <U>Sufficiency of Assets</U>. The Purchased Assets and other assets and property owned or
used by Sellers and which will be owned or used by Purchaser upon Closing together with the
Excluded Assets, taken as a whole, are sufficient for the continued conduct of the business of
Sellers as currently conducted.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.18. <U>Equipment</U>. <U>Schedule&nbsp;5.18</U> lists all machinery, equipment, vehicles or
furniture owned by a Seller with a depreciated book value of $100,000 or more and sets forth the
original cost and current depreciated value of each such item listed by location.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.19. <U>No Casualty</U>. Except as set forth on <U>Schedule&nbsp;5.19</U>, as of the date hereof to
the Seller&#146;s Knowledge, none of the assets of the Sellers has been affected by any fire, explosion,
accident, drought, storm, hail, earthquake, embargo, act of God or of the public enemy or other
casualty (whether or not covered by insurance) that has not been repaired or restored and that
would reasonably be expected to have a Seller Material Adverse Effect.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.20. <U>Insurance</U>. The Sellers have in place insurance policies listed on <U>Schedule
5.20</U>. Except as set forth on <U>Schedule&nbsp;5.20</U>, all such policies are, and until Closing
will remain, in full force and effect except for those policies, the failure to maintain which
individually or in the aggregate, would not be reasonably expected to have a Seller Material
Adverse Effect. The Sellers have made available to Purchaser a description of such policies and
any applicable self-insurance programs.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.21. <U>Customers</U>. The attached <U>Schedule&nbsp;5.21</U> lists Sellers&#146; ten (10)&nbsp;largest
customers for the period beginning July&nbsp;1, 2004 and ending on the date hereof. As of the date
hereof (except as set forth in such <U>Schedule&nbsp;5.21</U>), Sellers have not received any notice
that any such customer, and to the Knowledge of Sellers, no such customer, intends to terminate or
materially reduce its business with Sellers and no such customer has terminated or materially
reduced its business with Sellers from July&nbsp;1, 2004 to the date hereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.22. <U>Suppliers</U>. The attached <U>Schedule&nbsp;5.22</U> lists Sellers&#146; twenty (20)&nbsp;largest
vendors for the period beginning July&nbsp;1, 2004 and ending on the date hereof. As of the date hereof
(except as set forth in such
<U>Schedule&nbsp;5.22</U>), Sellers have not received any notice that any such vendor, and to the
Knowledge of Sellers, no such vendor, intends to terminate or materially reduce its business with
Sellers and no such vendor has terminated or materially reduced its business with Sellers from July
1, 2004 to the date hereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.23. <U>Affiliate Transactions</U>. Except as set forth on <U>Schedule&nbsp;5.23</U>, no officer,
manager, member or Affiliate (including any of the shareholders) of any Seller or any individual
related by blood, marriage or adoption to any such individual or any entity in which any such
Person or individual owns any beneficial interest, is a party to any agreement, contract,
commitment or transaction with any Seller or has any interest in any property used by any Seller.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.24. <U>Product Warranty</U>. Except as set forth on <U>Schedule&nbsp;5.24</U>, to the Knowledge of
Sellers, all products manufactured, merchandised, serviced, distributed, sold or delivered by
Sellers in connection with the Business during the six year period prior to the Closing Date have
been in conformity with all applicable contractual commitments and all express or implied
warranties. No liability exists for replacement thereof or other damages in connection with such
sales or deliveries during the six year period prior to the Closing Date except for liabilities
which would not reasonably be expected to have a Seller Material Adverse Effect. No products
heretofore sold by Sellers in connection with the Business are now subject to any guarantee or
warranty other than Sellers&#146; standard terms and conditions of sale, except to the extent described
on the attached <U>Schedule&nbsp;5.24</U>.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.25. <U>Inventories</U>. The inventory of Sellers is properly reflected, and appropriate
reserves exist therefor, on the books and records of Sellers in accordance with GAAP. All of the
inventories of Sellers (other than inventory in transit, inventory at public warehouses and
inventory held at other locations for finishing, which warehouses and other locations are listed on
<U>Schedule&nbsp;5.25</U>) are located at either the Owned Real Properties or the Leased Real
Properties subject to the Real Property Leases.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.26. <U>Notes and Accounts Receivable</U>. All notes and accounts receivable of Sellers (a)&nbsp;are
valid receivables incurred in the ordinary course of business and (b)&nbsp;are properly reflected on
Sellers&#146; books and records and properly reserved for with respect to doubtful accounts, all in
accordance with GAAP.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.27. <U>Bank Accounts</U>. <U>Schedule&nbsp;5.27</U> hereto sets forth a complete and accurate list
of all bank accounts, lockbox accounts, securities accounts, and other accounts maintained by the
Sellers with any bank or other financial institution, as of the date hereof, which Schedule shall
be updated as of the Closing Date.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.28. <U>Signatories</U>. All of the domestic Subsidiaries of the Company, other than J.P.
Stevens &#038; Co., Inc., are signatories to this Agreement except those that have no assets (other than
insignificant assets not used in the Business).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.29. <U>Foreign and Non-Debtor Affiliates</U>. Except as set forth on <U>Schedule&nbsp;5.29</U>, (i)
none of the assets of the Sellers&#146; foreign Affiliates are used in operation of the Business, (ii)
none of the assets of the Business are used in the operation of any of Sellers&#146; foreign Affiliates,
and (iii)&nbsp;none of Sellers&#146; foreign Affiliates have the right to use the name &#147;WestPoint&#148; or any
rights to use any Intellectual Property of Sellers. None of the Sellers&#146; foreign Affiliates are
signatories to this Agreement. Sellers are all debtors in the Bankruptcy Case and have no domestic
non-debtor Affiliates except for those Affiliates with insignificant assets.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.30. <U>Labor Matters</U>.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<U>Schedule&nbsp;5.30</U> identifies all collective bargaining agreements covering Employees
of Sellers (collectively, the &#147;<U>Collective Bargaining Agreements</U>&#148;). The Company


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<P align="left" style="font-size: 10pt">made
available to Purchaser correct and complete copies of all such Collective Bargaining Agreements
including any amendments or supplements thereto or related agreements(including any side letter,
supplemental agreement or memorandum of understanding that would materially alter a Collective
Bargaining Agreement). The Company has informed Purchaser of all material communications and
current written proposals of the Sellers, or any union in all ongoing negotiations with
representatives of any unions representing any organized employee groups and all material matters
on which any tentative agreements have been reached in the course of such negotiations.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Company has made available to Purchaser a true, correct and complete list of all
employees (including inactive employees and employees on leave) and independent contractors of the
Sellers who are members of an organized labor unit or union covered by any of the Collective
Bargaining Agreements, their current respective positions or job classifications and their current
respective wage scales or salaries, as the case may be.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Except as set forth in <U>Schedule&nbsp;5.30(c)</U>:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;None of the Sellers has breached or otherwise failed to comply in any material respect
with any provision of any Collective Bargaining Agreement or other labor union contract applicable
to persons employed by Sellers (because of the transactions contemplated by this Agreement or
otherwise), and there are no material grievances outstanding against any Seller under any such
agreement or contract;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;As of the date hereof, to the Knowledge of Sellers, there is no union organizing
activity, petition or application pending before the National Labor Relations Board or other labor
relations boards or tribunals seeking certification or any change in certification of a labor union
with respect to any employees of any Seller;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;As of the date hereof, there is no strike, slowdown, work stoppage, labor action or
lockout, or, to the Knowledge of Sellers, express threat thereof, by or with respect to any
employees of Sellers; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;As of the date hereof, no Sellers have received any written notice of any, and to the
Knowledge of Sellers, there is no unfair labor practice or analogous complaint, application or
claim against any Seller pending before the National Labor Relations Board or any similar board or
agency or before any court of competent jurisdiction or any other forum.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.31. <U>Employee Matters</U>. <U>Schedule&nbsp;5.31</U> contains a true, correct and complete list
of all the unrepresented, non-unionized Employees (including inactive Employees and Employees on
leave) employed on June&nbsp;17, 2005, and any officer of Sellers or any Employee in a supervisory or
managerial role employed on June&nbsp;17, 2005, their respective (i)&nbsp;positions or job classifications,
(ii)&nbsp;wage scales or salaries, as the case may be, (iii)&nbsp;annual target bonus and/or annual target
sales commissions, and (iv)&nbsp;target long-term incentive payments, in each case as of such date.
With respect to the foregoing clauses (ii)&nbsp;through (iv), disclosure may be in the form of either a
written description or copies of any applicable plan,



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<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">policy or program with regard to employees
subject to company-wide policies; <U>provided</U>, <U>however</U>, that disclosure shall be on an
individual basis with regard to all exceptions from such company-wide policies or from any other
individual arrangements.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.32. <U>Certain Payments</U>. Except as set forth on <U>Schedule&nbsp;5.32</U>, from the date which
is 30&nbsp;days prior to the date hereof through the date hereof, Sellers have not made any payments in
excess of $25,000 under, in respect of or pursuant to the KERP Program or fees and expenses of any
broker, finder or financial advisor of Sellers.


<P align="center" style="font-size: 10pt">ARTICLE VI.



<P align="center" style="font-size: 10pt">REPRESENTATIONS AND WARRANTIES OF PARENT,<BR>
HOLDCO ONE, HOLDCO TWO AND PURCHASER



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Parent, Holdco One, Holdco Two and Purchaser each hereby jointly and severally represents and
warrants to Sellers that:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. <U>Organization and Good Standing</U>. Each of Parent and Purchaser is an entity duly organized, validly existing and in good standing
under the laws of the State of Delaware and has the requisite corporate power and authority to own,
lease and operate its properties and to carry on is business as now conducted.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. <U>Authorization of Agreement</U>. Each of Parent and Purchaser has the requisite corporate
power and authority to execute and deliver this Agreement and the Ancillary Documents and to
perform its obligations hereunder and thereunder. The execution and delivery of this Agreement
has, and upon execution and delivery of all Ancillary Documents, such Ancillary Documents will be,
and the consummation of the transactions contemplated hereby have been duly authorized by all
requisite corporate action on the part of each of Parent and Purchaser. This Agreement has been,
and upon execution and delivery thereof all Ancillary Documents will be, duly and validly executed
and delivered by each of Parent and Purchaser and (assuming the due authorization, execution and
delivery by the other parties hereto) this Agreement constitutes legal, valid and binding
obligations of each of Parent and Purchaser enforceable against each such entity in accordance with
its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar
laws affecting creditors&#146; rights and remedies generally, and subject, as to enforceability, to
general principles of equity, including principles of commercial reasonableness, good faith and
fair dealing (regardless of whether enforcement is sought in a proceeding at law or in equity).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. <U>Authorized Capital</U>.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;As of and after giving effect to the Closing, (i)&nbsp;the authorized capital of Parent shall
consist of 200,000,000 shares of common stock and 10,000,000 shares of preferred stock, (ii)
15,750,000 shares of Parent Common Stock will be issued and outstanding, and (iii)&nbsp;14,250,000
shares of Parent Common Stock will be reserved for issuance pursuant to the


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<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Subscription Rights.
As of the Closing, the authorized capital of Purchaser shall consist of 10,000 shares of common
stock and 1,000 shares of preferred stock, of which 200 shares will be issued and outstanding and
held equally by Holdco One and Holdco Two. Except as set forth in the Equity Commitment Letter, as
of the Closing, no other shares of capital stock of Parent or Purchaser will be issued or issuable
pursuant to outstanding options, agreements, exchangeable securities or otherwise.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The shares of Parent Common Stock to be issued pursuant to the terms hereof and upon
exercise of the Subscription Rights will, as of the Closing, be duly authorized and, upon issuance
pursuant to the terms hereof or upon payment of the purchase price therefor pursuant to the Rights
Offering, validly issued, fully paid and non-assessable.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4. <U>Conflicts; Consents of Third Parties</U>.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Except as set forth on <U>Schedule&nbsp;6.4(a)</U>, the execution and delivery by Parent and
Purchaser of this Agreement and the Ancillary Documents, the consummation of the transactions
contemplated hereby or thereby , or compliance by Parent and Purchaser with any of the provisions
hereof or thereof do not and will not (A)&nbsp;conflict with, or result in any violation or default
(with or without notice or lapse of time or both) under, or (B)&nbsp;give rise to a right of termination
or cancellation under any provision of:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;the certificate of incorporation and by-laws or comparable organizational documents of
Parent and Purchaser;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;any Contract or Permit to which Parent or Purchaser is a party or by which any of the
properties or assets of Parent or Purchaser are bound, other than such conflicts, violations,
defaults, terminations or cancellations that would not reasonably be expected to have, individually
or in the aggregate, a Purchaser Material Adverse Effect;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;any Order of any Governmental Body applicable to Parent or Purchaser or any of the
properties or assets of Parent or Purchaser as of the date hereof; or


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;any applicable Law.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Except as set forth on <U>Schedule&nbsp;6.4(b)</U>, no consent, waiver, approval, Order,
Permit or authorization of, or declaration or filing with, or notification to, any Person or
Governmental Body is required on the part of Parent or Purchaser in connection with the execution
and delivery of this Agreement and the Ancillary Documents, the compliance by Parent or Purchaser
with any of the provisions hereof or thereof, the consummation of the transactions contemplated
hereby or thereby or the taking by Purchaser of any other action contemplated hereby or thereby,
except for (i)&nbsp;compliance with the applicable requirements of the HSR Act, and (ii)&nbsp;such other
consents, waivers, approvals, Orders, Permits, authorizations, declarations, filings and
notifications, the failure of which to obtain or make, would not reasonably be expected to have,
individually or in the aggregate, a Purchaser Material Adverse Effect.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5. <U>Litigation</U>. As of the date hereof, there are no Legal Proceedings pending or, to the
knowledge of Purchaser, threatened against Parent or Purchaser, or to which Parent or Purchaser is
otherwise a party before any Governmental Body, which, if adversely determined, would reasonably be
expected to have, individually or in the aggregate, a Purchaser Material Adverse Effect. As of the
date hereof, Parent or Purchaser is not subject to any Order of any Governmental Body except to the
extent the same would not reasonably be expected to have, individually or in the aggregate, a
Purchaser Material Adverse Effect.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6. <U>Financial Advisors</U>. No Person has acted, directly or indirectly, as a broker, finder
or financial advisor for Parent or Purchaser in connection with the transactions contemplated by
this Agreement and no Person is entitled to any fee or commission or like payment in respect
thereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7. <U>Financial Capability</U>. Purchaser will have, and Parent will cause Purchaser to have,
at the Closing sufficient funds available to pay the Cash Purchase Price. Purchaser has delivered
to the Company copies of the fully executed Equity Commitment Agreement and the Rights Offering
Sponsor Agreement, pursuant to which it will obtain such funds.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8. <U>Condition of the Business</U>. Notwithstanding anything contained in this Agreement to
the contrary, Purchaser acknowledges and agrees that Sellers are not making any representations or
warranties whatsoever, express or implied, beyond those expressly given by Sellers in <U>Article
V</U> hereof and each of Parent and Purchaser acknowledges and agrees that, except for the
representations and warranties contained herein, the Purchased Assets are being transferred on a
&#147;where is&#148; and, as to condition, &#147;as is&#148; basis. Each of Parent and Purchaser acknowledges that it
has conducted to its satisfaction, its own independent investigation of the Business and, in making
the determination to proceed with the transactions contemplated by this Agreement, each of Parent
and Purchaser has relied on the results of its own independent investigation and the
representations, warranties, covenants and agreements of Sellers set forth herein.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9 <U>Aretex&#146;s Holdings</U>. Aretex (i)&nbsp;as a First Lien Lender, holds a claim as of June
17, 2005 in the approximate face amount of $193,503,839.26, plus interest, (reduced by any payments
made after the date hereof) representing not less than 39.989% of the amount due to all First Lien
Lenders; and (ii)&nbsp;as a Second Lien Lender, holds an allowed claim in the approximate face amount of
$84,500,000, plus interest, and representing not less than 51.212% of the amount due to all Second
Lien Lenders.


<P align="center" style="font-size: 10pt">ARTICLE VII.



<P align="center" style="font-size: 10pt">POST EXECUTION MATTERS



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1. <U>Conduct After Execution of Agreement</U>. Each Seller agrees that neither it nor its
Affiliates nor its Representatives will, after execution of this Agreement (a)&nbsp;solicit, initiate,
encourage, enter into, conduct or continue any discussions (other than with


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<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">other Qualified Bidders
(as defined in the Bidding Procedures) prior to the Purchaser Selection Hearing), or enter into any
agreement or understanding, with any Person other than the Purchaser, regarding the transfer,
directly or indirectly, of any capital stock of, or any other interest in, any Seller or any
material portion of any Seller&#146;s assets or business (including by way of license), or (b)&nbsp;disclose
any non-public information relating to any Seller or
afford access to the properties, books or records of any Seller to any Person other than the
Purchaser, that may be considering acquiring an interest in any Seller or any material portion of
any Seller&#146;s assets unless such Person first enters into an appropriate confidentiality agreement
with the Sellers. If any Seller receives any request for information or indication of interest
from any Person regarding a possible acquisition, such Seller shall promptly disclose to the
Purchaser the identity of such Person, such receipt of such request or indication of interest and
shall provide the Purchaser with copies of any correspondence or other written material received by
such Seller setting forth any material terms or conditions of such possible acquisition.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2. <U>Expense Reimbursement</U>. In the event that this Agreement is terminated by Purchaser
pursuant to <U>Section&nbsp;4.4(a), 4.4(c), 4.4)(d), 4.4(e), 4.4(g), 4.4(h), 4.4(i), 4.4(j), 4.4(k) or
4.4(l)</U>, Sellers agree to pay to Purchaser, upon such termination, reimbursement of up to
$1,000,000 of the out of pocket expenses, including, without limitation, reasonable attorneys&#146; fees
and costs, consultant fees and costs, travel costs, title, survey and search costs and other
out-of-pocket costs incurred by Purchaser from and after the date hereof to such date of
termination (the &#147;<U>Expense Reimbursement</U>&#148;), as a super priority administrative expense and
Debtors will promptly seek any further authority needed in connection with the same.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3. <U>Bankruptcy Court Filings</U>.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Pursuant to the Bidding Procedures Order, Sellers have sought authority to sell their
assets and take actions related thereto and shall seek entry of the Selection Order and the Sale
Order by the Bankruptcy Court. The Sellers shall seek to cause the Sale Order to be entered
simultaneously with, or within three (3)&nbsp;Business Days following, the entry of the Selection Order.
Unless the Bankruptcy Court determines by Order entered at the hearing to approve the Sale Order
that the transactions contemplated by this Agreement shall be pursued through a Chapter&nbsp;11 plan of
reorganization or liquidation, the transactions shall proceed in accordance with this Agreement and
pursuant and subject to the Sale Order. If the Bankruptcy Court: (i)&nbsp;determines by Order entered at
the hearing to approve Sale Order that the transactions contemplated by this Agreement shall be
pursued through a Chapter&nbsp;11 plan of reorganization or liquidation; and (ii), prior to September
15, 2005, the Confirmation Order shall have been entered and shall have become a Final Order, then
the transaction set forth herein shall proceed based on the Chapter&nbsp;11 Plan and the Confirmation
Order. The September&nbsp;15, 2005 date is of the essence. In the event that clause (ii)&nbsp;above is not
satisfied, the transactions contemplated by this Agreement shall proceed in accordance with the
terms of this Agreement and pursuant and subject to the Sale Order.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;(i)&nbsp;If the Bankruptcy Court in a statement on the record at the Purchaser Selection
Hearing indicates that it is prepared to enter the Sale Order within two (2)&nbsp;Business Days after
the Purchaser Selection Hearing (the &#147;Initial Sale Order Entry Period&#148;) except for the


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<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">omission of
either clause (viii)&nbsp;and/or (xii)&nbsp;of the definition of &#147;Sale Order&#148;, then within two (2)
Business Days of the end of the Initial Sale Order Entry Period, Purchaser shall either (x)
waive in writing clause (viii)&nbsp;and/or (xii)&nbsp;to the extent not acceptable to the Bankruptcy Court,
(y)&nbsp;terminate this Agreement, which right may be exercised by Purchaser only within two (2)
Business Days following the Initial Sale Order Entry Period, or (z)&nbsp;not waive those conditions and
not terminate this Agreement, <U>provided</U>, that if Purchaser does not waive in writing the
requirement that the Sale Order contain those provisions or terminate this Agreement within such
time period, then Sellers may terminate this Agreement within two (2)&nbsp;Business Days after the
expiration of the period within which Purchaser may terminate this Agreement pursuant to this
<U>Section&nbsp;7.3(b)(i)</U>, which right may be exercised by Sellers only within such two (2)
Business Days.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;If the Bankruptcy Court (x)&nbsp;in a statement on the record at the Purchaser Selection
Hearing indicates that is not prepared to enter, within the Initial Sale Order Entry Period (A)&nbsp;any
sale order with respect to the transactions contemplated by this Agreement or (B)&nbsp;the Sale Order
except for the omission of either clause (viii)&nbsp;and/or (xii)&nbsp;of the definition of &#147;Sale Order&#148;, or
(y)&nbsp;fails to enter the Sale Order during the Initial Sale Order Entry Period, then the Purchaser
may terminate this Agreement within two (2)&nbsp;Business Days following the Initial Sale Order Entry
Period, which right may be exercised by Purchaser only within such two (2)&nbsp;Business Days.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Purchaser and Sellers agree that they will assist in obtaining entry of the Selection
Order, the Sale Order and if necessary, the Confirmation Order, and a finding of adequate assurance
of future performance by Purchaser, by taking the following actions: furnishing affidavits or other
documents or information for filing with the Bankruptcy Court for the purposes, among others, of
providing necessary written assurance of performance by Purchaser under this Agreement and
demonstrating that Purchaser is a &#147;good faith&#148; purchaser under Section 363(m) and if applicable,
Section&nbsp;1129(a)(3) of the Bankruptcy Code. In the event the entry of the Selection Order, the Sale
Order or the Confirmation Order shall be appealed, Sellers and Purchaser shall use their respective
reasonable efforts to defend such appeal. Sellers shall seek approval of the Selection Order, the
Sale Order and the Confirmation Order, if any, only in accordance with the terms and conditions
thereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Sellers agree that they will comply in all respects with the terms and conditions of the
Bidding Procedures Order, the Selection Order, the Sale Order and, if applicable, the Confirmation
Order, and will not file a motion seeking to revoke, modify or amend any such order after it is
entered without Purchaser&#146;s prior written consent.


<P align="center" style="font-size: 10pt">ARTICLE VIII.



<P align="center" style="font-size: 10pt">COVENANTS



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1. <U>Access to Information</U>. (a)&nbsp;Sellers agree that, prior to the Closing Date, Purchaser
shall be entitled and Sellers shall afford Purchaser the opportunity, through the respective
Representatives of Purchaser or its
Affiliates, to make such investigation of the assets,


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<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">properties, employees, businesses and
operations of the Business and such examination of the books and records of the Business, the
Purchased Assets and the Assumed Liabilities as Purchaser determines and to make extracts and
copies of such books and records. Any such investigation and examination shall be conducted upon
reasonable advance notice. Sellers shall cause their Representatives to cooperate with Purchaser
and Purchaser&#146;s or its Affiliates&#146; Representatives in connection with such investigation and
examination, and Purchaser, its Affiliates and their Representatives shall use their reasonable
efforts to minimize any disruption to the Business.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Sellers shall promptly deliver to Purchaser all financial, management or operational
reports delivered to any agent and/or the lenders under the DIP Credit Agreement or consultants for
the same. The Sellers shall promptly deliver to Purchaser such copies of all pleadings, motions,
notices, statements, schedules, applications, reports and other papers filed by the Sellers, or by
any Person in connection with or related to the Sellers, the Business, the Purchased Assets or the
Assumed Liabilities. The Sellers shall promptly deliver to Purchaser all pleadings, motions,
notices, statements, schedules, applications, reports and other papers filed in any other judicial
or administrative proceeding as Purchaser may reasonably request. Without limiting the generality
of this <U>Section&nbsp;8.1</U>, if requested by Purchaser, Sellers, upon reasonable notice, shall
provide access to the Sellers&#146; Properties to Purchaser, its Affiliates and their respective
Representatives for purposes of conducting such building inspections and environmental assessments
as Purchaser determines. Purchaser agrees that, in the event that an inspection or environmental
assessment results in a determination that invasive sampling may be necessary, Purchaser will not
conduct such invasive sampling without first obtaining Seller&#146;s consent, provided that such consent
will not be unreasonably withheld. To the extent that any applicable lease or sublease (whether
any Seller is a lessor/sublessor or lessee/sublessee) restricts the ability of any Seller to grant
access to any property, the Seller shall use commercially reasonable efforts to provide for such
access to Purchaser, its Affiliates and their respective Representatives. Notwithstanding anything
herein to the contrary, no such investigation or examination shall be permitted to the extent that
it would require Sellers to disclose information subject to any confidentiality obligations to
which Sellers are bound as of the date of this Agreement; provided Sellers shall take commercially
reasonable efforts to obtain waivers of such confidentially obligations.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;From and after the date hereof, Parent may designate up to two individuals as Parent&#146;s and
Purchaser&#146;s representatives to monitor the conduct and operations business of the Sellers on a
day-to-day basis. Such persons shall be given full access by Sellers to all of the books, records
and premises of the Business as they may reasonably request. From and after the date hereof:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Sellers shall, not later than 7:00 a.m. on each Thursday and simultaneously with delivery
to the Company&#146;s controller, deliver to such representatives the &#147;accounts payable register&#148;
setting forth all payments proposed to be made by Sellers, including the name of the proposed payee
and the amount. If, prior to 2:00 p.m. on such date any of such representatives notifies Sellers
that any such payment in excess of $1,000 (other than payroll for hourly employees) would be in
violation of the terms and provisions of this Agreement, Sellers shall not


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<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">make such payment unless and until resolved as set forth in clause (v)&nbsp;below. If Sellers fail
to deliver such register by 7:00 a.m. on any such Thursday, then the 2:00 p.m. deadline referred to
above shall be extended for each hour that delivery of such schedule is late so that such
representatives have two consecutive hours on a Business Day to review such schedule, provided,
that if such two hour period extends past 5:00 p.m. Eastern Time, such representatives shall have
such time at the commencement of the next Business Day (beginning at 8:00 a.m. Eastern) to complete
their review.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;Sellers shall advise Purchaser of all applicable information pertaining to any proposed
wire transfer not less than two hours on a Business Day prior to the time such wire is proposed to
be sent. If prior to the expiration of such two hours any of such representatives notifies Sellers
that any such payment by wire would be in violation of the terms and provisions of this Agreement,
Sellers shall not make such payment unless and until resolved as set forth in clause (v)&nbsp;below;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;Sellers shall provide Purchaser with a schedule of all proposed &#147;manual checks&#148; (i.e,
checks not on the accounts payable register) not less than two hours on a Business Day prior to
any such checks being issued. If prior to the expiration of such two hours any of such
representatives notifies Sellers that any such payment would be in violation of the terms and
provisions of this Agreement, Sellers shall not make such payment unless and until resolved as set
forth in clause (v)&nbsp;below;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;Sellers shall provide Purchaser with a schedule of letters of credit proposed to be
issued not less than two hours on a Business Day prior to any such letter of credit being issued.
If prior to the expiration of such two hours any of such representatives notifies Sellers that any
such issuance of letter of credit would be in violation of the terms and provisions of this
Agreement, Sellers shall not issue such letter of credit unless and until resolved as set forth in
clause (v)&nbsp;below;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;Any disputed payments or issuance of a letter of credit hereunder shall not be made by
Sellers unless and until resolved by agreement of Purchaser, Parent and Sellers or a determination
by the Bankruptcy Court is made that such payment or issuance of a letter of credit does not
violate the terms and provisions of this Agreement. Purchaser and Parent agree to cooperate with
Sellers to resolve any such issue and, if not so resolved, to obtain an expedited determination by
the Bankruptcy Court with respect to any such payment or payments;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;Failure of Sellers to make any payment or issuance of a letter of credit disputed by any
representative prior to resolution of the issue shall not constitute a breach of any
representation, warranty, covenant or agreement by Sellers under this Agreement. Representatives
may give notice hereunder by telephone communication, confirmed by email, to the General Counsel of
the Company at the email address set forth in <U>Section&nbsp;12.9</U>, or such other Person as the
Company shall designate to Purchaser pursuant to <U>Section&nbsp;12.9</U>. Sellers shall notify the
representatives by telephone communication and email at the numbers and email addresses provided by
such representatives from time to time.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Sellers shall use commercially reasonable efforts to identify on <U>Schedule&nbsp;8.1</U>, (i)
each parcel of Immaterial Owned Real Property by street address (or no street address exists, by
city and state), together with a legal description or tax identification number, which <U>Schedule
8.1</U> shall be delivered to Purchaser not later than ten days following the entry of the Sale
Order, together with copies of relevant deeds and other title and survey documents in the
respective Sellers&#146; possession and (ii)&nbsp;all Permits necessary to operate the retail stores operated
by Sellers.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2. <U>Conduct of the Business Pending the Closing</U>.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Except (1)&nbsp;as set forth on <U>Schedule&nbsp;8.2(a)</U>, (2)&nbsp;as required by applicable Law, or
(3)&nbsp;with the prior written consent of Purchaser in its sole and absolute discretion, during the
period from the date of this Agreement to and through the Closing Date, Sellers shall:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;conduct the Business only in the Ordinary Course of Business, including, without
limitation, with respect to (a)&nbsp;the pricing and terms of sale of inventory, (b)&nbsp;the timing,
discounting and other practices in connection with the collection of accounts receivable, (c)&nbsp;the
timing and other practices for payment of account payables and (d)&nbsp;compensation, bonuses, benefits
and severance payable to Employees, subject to and in accordance with the further limitations set
forth in <U>Section&nbsp;9.1(a)</U>;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;use their commercially reasonable efforts to (a)&nbsp;keep their assets intact and maintain
their assets in at least as good a condition as their current condition (reasonable wear and tear
excepted), (b)&nbsp;preserve the present business operations, organization and goodwill of the Business,
and (c)&nbsp;preserve the present relationships with customers and suppliers of the Business;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;perform in all material respects its obligations arising after the Petition Date under
any Contract (including Real Property Leases);


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;comply in all material respects with all applicable Laws that relate to or affect its
assets and business or such Person&#146;s ownership and/or use or operation thereof, including the
timely, complete and correct filing of all reports and maintenance of all records required by any
Governmental Authority to be filed or maintained;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;continue to use and operate all assets and all aspects of its business used or operated by
the Sellers as of the date hereof in a manner consistent with prior practice and in accordance in
all material respects with all applicable Laws, and not enter into any contract nor otherwise act,
nor suffer or permit any other Person to act, to restrict, interfere with or prevent the use or
operation of such assets or business;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;promptly notify Purchaser in writing of any incidents or accidents occurring on or after
the date hereof involving any assets or property owned or operated by the Sellers that resulted or
could reasonably be expected to result in damages or losses to any portion of the business of the
Sellers or damages in excess of $100,000;


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;promptly notify Purchaser in writing of the existence of any adverse business conditions
arising on or after the date hereof threatening the continued, normal business operations of the
Sellers or of any agreement, consent or order of any Governmental Authority involving any of the
Sellers;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)&nbsp;promptly notify Purchaser of any Legal Proceeding of the type described in <U>Section
5.12</U> commenced after the date hereof and/or, to the Knowledge of Sellers, threatened after the
date hereof against the Sellers;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)&nbsp;provide prompt written notice to Purchaser (i)&nbsp;of any change in any of the information
contained in the representations and warranties made by the Sellers in <U>Article&nbsp;V</U> hereof or
any exhibits or schedules referred to herein or attached hereto, including any Schedules and shall
promptly furnish any information that Purchaser may reasonably request in relation to such change;
<U>provided</U>, <U>however</U>, that such notice shall not operate to cure any breach of the
representations and warranties made by the Company herein or any exhibits or schedules referred to
herein or attached hereto, including any Schedules; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;provide prompt written notice to Purchaser of the occurrence of any event that results in
or would reasonably be expected to result in a failure to satisfy any of the conditions set forth
in <U>Article&nbsp;X</U>.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Except (1)&nbsp;as set forth on <U>Schedule&nbsp;8.2(b)</U>, (2)&nbsp;as required by applicable Law, or
(3)&nbsp;with the prior written consent of Purchaser in its sole and absolute discretion, during the
period from the date of this Agreement to and through the Closing Date, Sellers shall not:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;take any action as a result of which any representation or warranty of the Sellers made in
<U>Article&nbsp;V</U> would be rendered untrue or incorrect if such representation or warranty were
made immediately following the taking or failure to take such action;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;make or rescind any material election relating to Taxes, settle or compromise any
material claim, action, suit, litigation, proceeding, arbitration, investigation, audit or
controversy relating to Taxes, or except as may be required by applicable Law or GAAP, make any
material change to any of its methods of accounting or methods of reporting income or deductions
for Tax or accounting practice or policy from those employed in the preparation of its most recent
Tax Returns;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;subject any of the Purchased Assets to any Lien, except for Liens existing as of the
date hereof;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;acquire any material properties or assets other than in the Ordinary Course of Business,
or enter into any partnership, joint venture or similar arrangement (including, but not limited to,
the contemplated joint venture with a Pakistani company for the formation and operation of a
manufacturing facility near Lahore, Pakistan), or sell, assign, license, transfer, convey, lease or
otherwise dispose of any of the Seller&#146;s assets other than inventory in the Ordinary Course of
Business and obsolete or worthless equipment permitted to be sold pursuant to the DIP Credit
Agreement;


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;cancel, compromise or settle any debt or claim or waive or release any right in excess of
$20,000 individually and $250,000 in the aggregate or, in connection with Trade Payables, accounts
payable to employees for travel and entertainment expense, workers&#146; compensation payments, or trade
receivables, other than in the Ordinary Course of Business;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;enter into any commitment for capital expenditures in excess of $250,000 for all
commitments in the aggregate except for capital expenditure projects described by project and
amount as line items as set forth on <U>Schedule&nbsp;8.2(b)</U> hereof not to exceed the amount for
each such category as described and set forth in such schedule;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;enter into, modify or terminate any labor or Collective Bargaining Agreement or, through
negotiation or otherwise, make any commitment or incur any liability to any labor organization;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)&nbsp;incur any Indebtedness other than in the Ordinary Course of its Business;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)&nbsp;assign, modify, cancel, otherwise impair or permit to lapse any Material Contract (other
than expiration in accordance with the terms thereof as a result of the passage of time and other
than Real Property Leases as to which <U>Section&nbsp;8.2(b)(x)</U> applies ) involving annual
expenditures, purchases or revenues in excess of $100,000 annually;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;assign, sublease, amend in any material respect, terminate, exercise (or waive) or permit
to lapse any options to renew, options to expand or options to purchase pursuant to any Real
Property Leases involving expenditures in excess of $100,000 annually (other than expiration in
accordance with the terms thereof as a result of the passage of time);


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi)&nbsp;make any payments (a)&nbsp;in respect of professional fees for attorneys and accountants
except to the extent and on the timing permitted under existing interim compensation and fee
application procedures (other than professional fees payable to ordinary course professionals to
the extent authorized to be paid under the existing Order of the Bankruptcy Court signed on 6/3/03
Authorizing Retention and Compensation of Professionals Utilized in the Ordinary Course of
Business), (b)&nbsp;under, in respect of or pursuant to the KERP Program (other than the existing
scheduled payment for the second quarter of 2005 pursuant to the KERP Order), or fees and expenses
of any financial advisor of Sellers (other than monthly fees in currently approved amounts pursuant
to existing procedures) or (c)&nbsp;in respect of fees and expenses of any broker or finder of Sellers
except as consented to by Purchaser and except for such fees and expenses of a broker or finder
relating to the sale of real property by Sellers which are approved by the Bankruptcy Court prior
to June&nbsp;30, 2005; or


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii)&nbsp;agree to do anything prohibited by this <U>Section&nbsp;8.2</U>.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;During the period from the date of this Agreement to and through the Closing Date, Sellers
shall not declare, authorize, make or enter into a commitment to make (x)&nbsp;any dividend,
distribution or other payment in respect of any Seller&#146;s capital stock or other equity or rights to
acquire the same or engage in any similar payment or distribution or (y)&nbsp;any payment, prepayment or
distribution with respect to any Indebtedness of the Sellers other than


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<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">payments in respect of the DIP Credit Agreement as required or permitted pursuant to the terms
of the DIP Credit Agreement or payment pursuant to the Adequate Protection Order.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3. <U>Consents, Lien Releases and Notices</U>. Sellers shall use their commercially reasonable
efforts, and Purchaser shall, and Parent shall cause Purchaser to, reasonably cooperate with
Sellers, to obtain at the earliest practicable date all consents and approvals required to
consummate the transactions contemplated by this Agreement, including, the consents and approvals
listed in <U>Schedule&nbsp;5.3(b)</U> hereof; <U>provided</U>, <U>however</U>, that neither Sellers
nor Purchaser shall be obligated to pay any consideration therefor to any third party from whom
consent or approval is requested; <U>provided</U>, <U>further</U>, however, that Sellers shall be
obligated to initiate any Legal Proceedings necessary, at the Purchaser&#146;s expense, to obtain any
such consent or approval, unless Seller&#146;s counsel reasonably believes that Sellers have no good
faith basis to initiate any such proceeding, in which event Purchaser may seek authority from the
Bankruptcy Court to do so on the Sellers&#146; behalf and Sellers will not object to such application by
Purchaser. Sellers shall provide Parent and Purchaser, for their approval, a proposed form of
request for consent not later than five (5)&nbsp;days following the date of the Sale Order. Sellers
shall send initial requests for such consents in the form approved by the Purchaser not later than
two (2)&nbsp;Business Days following the date Purchaser designates any applicable asset as a Purchased
Asset. Sellers shall use their commercially reasonable efforts to obtain, prior to the Closing,
and deliver to Purchaser releases of all Liens on all of the Purchased Assets. Sellers shall, at
the request of Purchaser and at Purchaser&#146;s expense if so requested after the Purchaser Selection
Hearing, provide additional actual or publication notice of the &#147;free and clear sale&#148; to those
Persons, and in the manner, requested by Purchaser.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4. <U>Regulatory Approvals</U>.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;If necessary, Parent, Purchaser and Sellers shall (i)&nbsp;make or cause to be made all filings
required of each of them or any of their respective Affiliates under the HSR Act or other Antitrust
Laws with respect to the transactions contemplated hereby as promptly as practicable and, in any
event, within ten (10)&nbsp;Business Days after the later of the date of the entry of the Selection
Order and the date of this Agreement in the case of all filings required under the HSR Act and
within four weeks in the case of all other filings required by other Antitrust Laws, (ii)&nbsp;comply at
the earliest practicable date with any request under the HSR Act or other Antitrust Laws for
additional information, documents, or other materials received by each of them or any of their
respective Subsidiaries from the Federal Trade Commission (the &#147;<U>FTC</U>&#148;), the Antitrust
Division of the United States Department of Justice (the &#147;<U>Antitrust Division</U>&#148;) or any other
Governmental Body in respect of such filings or such transactions and (iii)&nbsp;cooperate with each
other in connection with any such filing. Subject to applicable Law, the parties hereto will
consult and cooperate with one another in connection with any analyses, appearances, presentations,
memoranda, briefs, arguments, opinions and proposals made or submitted by or on behalf of any party
hereto relating to proceedings under the HSR Act or other Antitrust Laws. Sellers and Purchaser
may, as each deems advisable and necessary, reasonably designate any
competitively sensitive material provided to the other under this <U>Section&nbsp;8.4</U> as
&#147;outside counsel only.&#148; Such materials and the information contained therein shall be given only
to the outside legal counsel of the recipient and will not be disclosed by such outside counsel to
employees,


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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">officers, or directors of the recipient, unless express written permission is obtained
in advance from the source of the materials (Parent, Sellers or Purchaser, as the case may be).
Parent or Purchaser shall not be obligated to share a copy of their HSR Act filing or drafts
thereof with Sellers.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Sellers shall use commercially reasonable efforts to initiate the transfer of all Permits
included in the Purchased Assets owned or used by any Seller into the name of Purchaser effective
as of the Closing Date. Each such party shall use commercially reasonable efforts to furnish to
each other all information required for any application or other filing to be made pursuant to any
applicable Law in connection with the transactions contemplated by this Agreement. Each such party
shall promptly inform the other parties hereto of any oral communication with, and provide copies
of written communications with, any Governmental Body regarding any such filings or any such
transaction. No party hereto shall independently participate in any formal meeting with any
Governmental Body in respect of any such filings, investigation, or other inquiry without giving
the other parties hereto prior notice of the meeting and, to the extent permitted by such
Governmental Body, the opportunity to attend and/or participate.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Each of Parent, Purchaser and Sellers shall use its commercially reasonable efforts to
resolve such objections, if any, as may be asserted by any Governmental Body with respect to the
transactions contemplated by this Agreement under the HSR Act, the Sherman Act, as amended, the
Clayton Act, as amended, the Federal Trade Commission Act, as amended, and any other United States
federal or state or foreign statutes, rules, regulations, orders, decrees, administrative or
judicial doctrines or other laws that are designed to prohibit, restrict or regulate actions having
the purpose or effect of monopolization or restraint of trade (collectively, the &#147;<U>Antitrust
Laws</U>&#148;). In connection therewith, if any Legal Proceeding is instituted (or threatened to be
instituted) asserting that any transaction contemplated by this Agreement is in violation of any
Antitrust Law, each of Purchaser and Sellers shall cooperate and use its commercially reasonable
efforts to contest and resist any such Legal Proceeding. Each of Purchaser and Sellers shall use
its commercially reasonable efforts to take such action as may be required to cause the expiration
of the notice periods under the HSR Act or other Antitrust Laws with respect to such transactions
as promptly as possible after the execution of this Agreement. Notwithstanding anything to the
contrary contained in this Agreement, in complying with this <U>Section&nbsp;8.4</U>, neither Purchaser
nor any of its Affiliates shall be required to (i)&nbsp;divest any assets or discontinue or modify any
of its operations or (ii)&nbsp;accept or become subject to any condition or requirement unacceptable to
Purchaser in its sole and absolute discretion. No party shall withdraw any such filing or
submission prior to the termination of this Agreement without the written consent of the other
party.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5. <U>Further Assurances</U>. Each of Parent, Purchaser and Sellers shall use its commercially reasonable efforts to take all
actions necessary or appropriate to consummate the transactions contemplated by this Agreement.
Parent and Purchaser shall use their commercially reasonable efforts to cause the fulfillment at
the earliest practicable date of all of the conditions to the obligations to consummate the
transactions contemplated by this Agreement set forth in <U>Sections&nbsp;10.2</U> and <U>10.3</U>.
Sellers shall use their commercially reasonable


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<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">efforts to cause the fulfillment at the earliest
practicable date of all of the conditions to the obligations to consummate the transactions
contemplated by this Agreement set forth in <U>Sections&nbsp;10.1</U> and <U>10.3</U>. At the
Purchaser&#146;s sole cost and direction, Sellers shall have prepared and duly executed assignments of
any non-U.S. trademark registrations and applications and non-U.S. patent registrations and
applications in a form suitable for recording in the applicable foreign intellectual property
offices. For U.S. trademark registrations and applications and U.S. patent registrations and
applications, Sellers shall ensure that the owner of each trademark and patent registration and
application, as set forth on <U>Schedule&nbsp;5.8(a)</U>, is also listed as the current owner as shown
in the U.S. Patent and Trademark Office&#146;s records for each such trademark and patent registration
and application.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6. <U>Confidentiality Following the Closing.</U> Sellers acknowledge that from and after the
Closing, all non-public information relating to the Business, including, but not limited to the
Purchased Assets and the Assumed Liabilities, will be valuable and proprietary to Purchaser and its
Affiliates. Sellers agree that, from and after the Closing, neither the Sellers nor any of their
Affiliates or Representatives will disclose to any Person any non-public information relating to
the Purchaser and its Affiliates, or the Business, including but not limited to the Purchased
Assets and the Assumed Liabilities, except as required by law. The provisions of this Section&nbsp;8.6
shall survive the Closing.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7. <U>Equity Commitment and Rights Offering</U>. Simultaneously with the execution of this
Agreement, Purchaser has delivered to Sellers an executed copy of each of the Equity Commitment
Agreement and the Rights Offering Sponsor Agreement. It is expressly understood by the parties
hereto that the aggregate net proceeds to be received by Purchaser in connection with the exercise
of the Subscription Rights, the Rights Offering Sponsor Agreement and the Equity Commitment
Agreement shall be $312,000,000. Each of Parent and Purchaser hereby agrees to take all actions
that are necessary to consummate the Rights Offering, including, if necessary, enforcing its rights
under the Equity Commitment Agreement and the Rights Offering Sponsor Agreement, to cause the other
parties thereto to perform their respective duties, obligations and covenants thereunder. Each of
Parent and Purchaser agrees that it will not release any party to the Equity Commitment Agreement
and the Rights Offering Sponsor Agreement from any of its duties, obligations and covenants under
such agreements without the Company&#146;s prior written consent.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.8. <U>Preservation of Records</U>. Sellers, Parent and Purchaser agree that each of them shall
preserve and keep the records held by it or their Affiliates relating to the Business for a period
of seven (7)&nbsp;years from the Closing
Date (except as provided below) and shall make such records and personnel available to the other as
may be reasonably required by such party in connection with, among other things, any insurance
claims by, Legal Proceedings or tax audits against Sellers or Purchaser or any of their Affiliates
or in order to enable Sellers or Purchaser to comply with their respective obligations under this
Agreement and each other agreement, document or instrument contemplated hereby. In the event
Sellers or Purchaser wishes to destroy such records before or after that time, such party shall
first give ninety (90)&nbsp;days prior written notice to the other and such other party shall have the
right at its option and


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<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">expense, upon prior written notice given to such party within such ninety
(90)&nbsp;day period, to take possession of the records within one hundred and eighty (180)&nbsp;days after
the date of such notice.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.9. <U>Financial Statements</U>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Sellers shall provide AREH and its representatives with such access to and copies of the
books and records of Sellers and their subsidiaries as may be required in order for AREH and its
Affiliates and subsidiaries to prepare any financial statements, including historical or pro forma
financial statements, for inclusion or incorporation by reference by AREH or its Affiliates and
subsidiaries in filings by any of them with the SEC, including, without limitation, any
registration, proxy or information statement or any periodic or current report under the Securities
Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the rules and
regulations of the SEC (each a &#147;<U>Report</U>&#148; and collectively &#147;<U>Reports</U>&#148;). Sellers shall
use commercially reasonable efforts to provide to AREH unaudited consolidating balance sheets and
income statements covering the periods covered by each consolidated financial statement required to
be delivered by the Sellers pursuant to <U>Section&nbsp;8.9(d)</U> below.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Sellers shall use their best efforts to cause their finance and accounting personnel,
including, but not limited to, their Chief Financial Officer, to provide AREH, its subsidiaries and
their respective representatives with such assistance as AREH shall reasonably request in order to
permit AREH and its subsidiaries to prepare any Report and comply with any requirement pursuant to
the Sarbanes-Oxley Act of 2002 and the rules and regulations of the SEC thereunder with respect to
Sellers. Sellers shall continue to maintain their books and records, so as to enable the
preparation and review or audit, as applicable, by an independent public accounting firm of
financial statements meeting the requirements of Regulation&nbsp;S-X of the SEC and in accordance with
GAAP.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Sellers shall use their best efforts to cause and permit the independent registered public
accounting firm or firms that have audited, or will audit pursuant to paragraph (d), their
consolidated financial statements as of December&nbsp;31, 2003 and 2004 and for each of the years during
the three year period ended December&nbsp;31, 2004 (and if the financial statements for any subsidiaries
included in such consolidated financial statements or which otherwise are required to be presented
separately have been audited by any independent registered public accounting firm other than the
firm auditing the consolidated financial statements of the Company, such firm or firms as well) to
provide AREH, its Affiliates and subsidiaries and their respective representatives with such
assistance as AREH shall reasonably request in order to permit AREH and its Affiliates and
subsidiaries to prepare and file any Report, including,
without limitation, by issuing or providing an original executed copy of any required audit
report or consent to the inclusion of such report and the identification of such audit firm or
firms as experts.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;In furtherance of the covenants contained in paragraphs (a) &#151; (c), Sellers shall prepare
and deliver to Purchaser prior to the Closing, consolidated financial statements of the Company
meeting the requirements of Regulation&nbsp;S-X of the SEC applicable to an Annual Report on Form 10-K
as of December&nbsp;31, 2003 and 2004 and for each of the three years during


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<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">the three year period ended
December&nbsp;31, 2004. Such financial statements shall be prepared in accordance with GAAP
consistently applied throughout the periods involved (except as maybe indicated in the notes
thereto) and shall be audited by Ernst &#038; Young LLP or another independent registered public
accounting firm reasonably acceptable to AREH, and shall be accompanied by a signed currently dated
report covering all three years by Ernst &#038; Young LLP or such other independent registered
accounting firm reasonably acceptable to AREH. Sellers also shall prepare and deliver to Purchaser
prior to the Closing consolidated financial statements of the Company for each of its fiscal
quarters (including the corresponding period for the preceding fiscal year) for which a Quarterly
Report on Form 10-Q is required to have been filed during the fiscal year ending December&nbsp;31, 2005
through and including the Closing Date, meeting the requirements of Regulation&nbsp;S-X of the SEC
applicable to Quarterly Reports on Form 10-Q. Such quarterly financial statements shall be
prepared in accordance with GAAP (except as permitted by Form 10-Q of the SEC).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.10. <U>Schedules</U>. Sellers may, at their option, include in the Schedules items that are not
material in order to avoid any misunderstanding, and such inclusion, or any references to dollar
amounts, shall not be deemed to be an acknowledgement or representation that such items are
material, to establish any standard of materiality or to define further the meaning of such terms
for purposes of this Agreement. No later than fifteen (15)&nbsp;days after the date of this agreement,
Sellers will deliver legal descriptions for each of the Material Owned Real Properties.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.11. <U>No Inconsistent Action</U>. No Seller shall take any action that is inconsistent with
the Sellers&#146; obligations under this Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.12. <U>Accepted or Rejected Contracts</U>.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;For each Material Contract (other than Real Property Leases) listed on <U>Schedule
5.9</U> and each Material Intellectual Property License listed on <U>Schedule&nbsp;5.8(b)</U>, the
Sellers shall timely indicate to Purchaser whether or not, in connection with the Bankruptcy Cases,
the Company or any of its Subsidiaries, as the case may be, desires to accept or reject or prior to
the date hereof has accepted or rejected such Material Contract or Material Intellectual Property
License. From and after the date hereof, the Purchaser, in its sole and absolute
discretion, may direct the Sellers to cause each such Material Contract or Material
Intellectual Property License not accepted or rejected prior to the date hereof, to be either
accepted or rejected, and the Sellers shall accept or reject each such Material Contract or
Material Intellectual Property License in accordance with the Purchaser&#146;s direction effective as of
the Closing (any Material Contracts and Material Intellectual Property Licenses so accepted hereby
at the direction of Purchaser are referred to herein as the &#147;<U>Accepted Contracts</U>&#148; and
&#147;<U>Accepted Intellectual Property Licenses</U>,&#148; as applicable). Purchaser shall provide Sellers
with at least 14&nbsp;days notice prior to a hearing to determine Cure Costs of the Accepted Contracts
and Accepted Intellectual Property Licenses.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;For each Real Property Lease listed on <U>Schedule&nbsp;5.7(b)</U>, the Sellers shall timely
indicate to Purchaser whether or not, in connection with the Bankruptcy Cases, the


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<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Company or any
of it Subsidiaries, as the case may be, desires to accept or reject or prior to the date hereof
has accepted or rejected, such Real Property Lease. From and after the date hereof, the Purchaser,
in its sole and absolute discretion, may direct the Sellers to cause each such Real Property Lease
not accepted or rejected prior to the date hereof, to be either accepted or rejected, and the
Sellers shall accept or reject each such Real Property Lease in accordance with the Purchaser&#146;s
direction effective as of Closing (any Real Property Leases so accepted hereby at the direction of
the Purchaser are referred to herein as the &#147;<U>Accepted Real Property Leases</U>&#148;).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Any motions filed with, and the proposed orders submitted to, the Bankruptcy Court seeking
authorization to, or any proceedings undertaken to, accept or reject any one or more of the
Material Contracts, Material Intellectual Property Licenses or Real Property Leases shall be
satisfactory in form and substance to the Purchaser in its reasonable discretion. The Purchaser&#146;s
written consent shall be required prior to the Sellers (i)&nbsp;compromising or commencing litigation
with respect to any Material Contract, Material Intellectual Property Licenses or Real Property
Lease, or (ii)&nbsp;making material payments required to be made under the Bankruptcy Code in connection
therewith.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.13. <U>Specific Enforcement of Covenants</U>. The Sellers acknowledge that irreparable damage
may occur in the event that any of the covenants and agreements of the Sellers set forth in this
<U>Section&nbsp;8.13</U> or in any other part of this Agreement were not timely performed in accordance
with their specific terms or were otherwise breached. It is accordingly agreed that Purchaser and
Parent shall be entitled to an injunction or injunctions, without the posting of any bond, to
prevent or cure any breach of this <U>Section&nbsp;8.13</U> or any breach of such other covenants or
agreements of the Sellers, and to enforce specifically the terms and provisions hereof, this being
in addition to any other remedy to which it may be entitled at law or in equity. In the event the
Bankruptcy Court abstains from exercising or declines to exercise jurisdiction with respect to any
matter provided for in this sentence or is without jurisdiction with respect to any matter provided
for in this sentence or is otherwise without jurisdiction, such abstention, refusal or lack of
jurisdiction shall have no effect upon and shall not control, prohibit or limit the exercise of
jurisdiction of any other court having competent jurisdiction with respect to any such matter.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.14. <U>Form of Transaction</U>. The Sellers, Parent and Purchaser hereby agree that the
acquisition of the Purchased Assets pursuant to this Agreement is intended to be treated as a
taxable transaction for U.S. federal income tax purposes. The Sellers, Parent and Purchaser hereby
further agree to continue to review the relevant information of the Sellers and to discuss the
acquisition structure. If the Parent and Purchaser desire to modify the structure of the
acquisition of the Purchased Assets pursuant to this Agreement, the structure of such acquisition
and this Agreement shall be accordingly modified subject to the consent of the Sellers, which
consent shall not be unreasonably withheld or delayed.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.15. <U>Permits</U>. Following the date hereof, Sellers shall from time to time, at the request
of Purchaser use their commercially reasonable efforts to assist Purchaser with preparing such
applications or other documents necessary or desirable in connection with applications for or
transfers of Permits to Purchaser. Until any necessary Permits are transferred


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<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">or issued to
Purchaser, and to the extent not prohibited by Law or the terms of such Permits except where such
prohibitions are overridden by order of the Bankruptcy Court or by other applicable Law, Sellers
hereby grant to Purchaser effective at the Closing, and Purchaser shall have, the right and license
to use such Permits of Sellers as Purchaser shall determine. The provisions of this <U>Section
8.15</U> shall survive the Closing.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.16. <U>Indemnity Agreement</U>. The Company shall cause its subsidiary, J.P. Stevens &#038; Co.,
Inc. to execute and deliver to Purchaser and Parent at the Closing, the indemnity agreement in the
form of Exhibit&nbsp;S and a notice to its insurance company that it is entering into the indemnity
agreement.


<P align="center" style="font-size: 10pt">ARTICLE IX.



<P align="center" style="font-size: 10pt">EMPLOYEES AND EMPLOYEE BENEFITS



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1. <U>Employment</U>.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<U>No Material Employment Changes</U>. Without Purchaser&#146;s prior written consent, no
increase shall be made in the compensation, bonuses or commissions payable, or to become payable,
by it to any Employees except as required by Employment Agreements existing as of the date hereof
and except for such increases in annual salary as are made in the Ordinary Course of Business and
are reflected in the budget for Sellers for calendar year 2005 delivered to Purchaser prior to the
date hereof. Sellers shall make no arrangement for any new Employee Plan relating to Employees,
and no material change shall be effected in management, personnel policies or employee benefits.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>Employee Hirings</U>. On or before the Closing Date, the Purchaser shall extend
offers of employment to such Employees as it determines on such terms as it considers to be
competitive in the marketplace.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<U>Terms of Employment</U>. Sellers hereby expressly acknowledge and agree that the
Purchaser shall have the right to fix the level of compensation and benefits and other terms and
conditions of employment to be provided to Continuing Employees, and that the Purchaser may modify
the terms and conditions of employment of any Continuing Employee from time to time and may
terminate the employment of any Continuing Employee at any time.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;<U>No Rights to Employment</U>. Nothing expressed or implied in this Agreement is
intended to confer upon any Employee or his or her legal representatives any rights or remedies,
including, without limitation, any rights of employment for any specified period, of any nature or
kind whatsoever under or by reason of this Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Benefits. As of the Closing Date, the Purchaser or an ERISA Affiliate thereof will offer
continuation coverage for the duration of the coverage period required under the Consolidated
Omnibus Budget Reconciliation Act of 1985, as amended (&#147;COBRA&#148;), as set forth in Section
4980B(f)(2)(B) of the Tax Code (and the regulations thereunder), under the health care plans
covering the Continuing Employees after the Closing to the M&#038;A Qualified


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<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Beneficiaries (as defined
below). An &#147;M&#038;A Qualified Beneficiary&#148; is (i)&nbsp;any Employee who incurred a &#147;qualifying event&#148;
(within the meaning of Section&nbsp;4980B(f)(3) of the Tax Code and the regulations thereunder) prior
to, or in connection with, the Closing if his or her last employment with the Sellers prior to
incurring such qualifying event was associated with the Purchased Assets or (ii)&nbsp;any eligible
dependent of an Employee described in clause (i)&nbsp;above. For purposes of clause (i)&nbsp;of the
preceding sentence, an Employee&#146;s last employment will be deemed to be associated with the
Purchased Assets unless the Employee&#146;s last employment was associated with Sellers&#146; Cluett or
Virginia Craft operations. In addition, any Employee who is actively employed by the Sellers
immediately prior to the Closing Date and who continues in employment with the Sellers after the
Closing Date for the purpose of winding down the affairs of the Debtor shall be treated as having
incurred a qualifying event on the closing date. Notwithstanding the foregoing, a person will not
be considered an M&#038;A Qualified Beneficiary if (i)&nbsp;such person&#146;s COBRA continuation coverage expired
or was terminated prior to the Closing or (ii)&nbsp;such person had not made a COBRA continuation
coverage election and the period of time for making a COBRA continuation coverage election (as set
forth in Section&nbsp;4980B(f)(5) of the Tax Code and regulations thereunder) has expired. Schedule
9.1(e) states the name and address of each M&#038;A Qualified Beneficiary, the date on which the
qualifying event occurred, the date on which COBRA continuation coverage expires, the reason the
M&#038;A Qualified Beneficiary is entitled to COBRA continuation coverage, and the offices, facilities
or plants at which the Employee worked.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;<U>Credit for Past Service</U>. As of the Closing Date, the Purchaser or an ERISA
Affiliate thereof will offer health plan coverage to Continuing Employees. The Purchaser shall
either continue the health plan offered by the Sellers prior to the Closing Date or establish
another health plan as the Purchaser determines in its sole discretion. Purchaser and its
Affiliates shall be under no obligation to grant Continuing Employees credit in any of its
employee benefit plans for any past service with the Sellers, for eligibility and vesting purposes
or otherwise. It is understood and agreed that the Purchaser shall have the right, in its sole
discretion, to amend, modify, or terminate such plans at any time. Nothing herein shall entitle
any Continuing Employees to any coverage or benefits under any employee benefit plans of any
Affiliate of Purchaser.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;<U>Cooperation</U>. Purchaser shall cooperate with Sellers in providing reasonable access to
Continuing Employees so that such Employees may assist on an incidental basis only in the winddown
of the Sellers&#146; operation following the Closing Date, provided Sellers furnish reasonable advance
notice to Purchaser of the reason and extent of such access. Sellers will cooperate with Purchaser
as is reasonably requested by Purchaser in connection with extending any offers of employment to
Employees. Sellers will exercise their commercially reasonable efforts to cause Persons who are to
become Continuing Employees to provide Purchaser with such information as may be requested by
Purchaser to enroll such Person in any benefit plan of Purchaser and to execute Purchaser&#146;s form of
confidentiality agreement and acknowledgement of Purchaser&#146;s ethics policies.


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<P align="center" style="font-size: 10pt">ARTICLE X.



<P align="center" style="font-size: 10pt">CONDITIONS TO CLOSING



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1. <U>Conditions Precedent to Obligations of Parent and Purchaser</U>. The obligation of
Parent and Purchaser to consummate the transactions contemplated by this Agreement is subject to
the fulfillment, as of the Closing Date, of each of the following conditions (any or all of which
may be waived by Parent or Purchaser in their sole discretion in whole or in part to the extent
permitted by applicable Law, such waiver to be in writing signed by an executive officer of Parent
or Purchaser referencing this section and the specific condition to be waived):


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;All representations and warranties of the Sellers in this Agreement or in any exhibit,
schedule or document delivered pursuant hereto shall be true, complete and correct in all respects
(with respect to representations and warranties qualified or limited by materiality or Seller
Material Adverse Effect) or in all material respects (with respect to representations and
warranties not so qualified or limited), in each case when made (unless cured as provided in
<U>Section&nbsp;4.4(e)</U>) and as of the Closing Date as if made on the Closing Date, other than any
such representations or warranties that expressly speak only as of an earlier date, which shall be
true, complete and correct in all respects (with respect to representations and warranties
qualified or limited by materiality or Seller Material Adverse Effect) or in all material respects
(with respect to representations and warranties not so qualified or limited), as of such earlier
date.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;All of the terms, covenants and conditions to be complied with and performed by the
Sellers on or prior to the Closing Date (other than the covenants contained in <U>Section&nbsp;8.2
(a)(i), Sections&nbsp;8.2(b)(iii)</U> through <U>(xi), Section&nbsp;8.2(b)(xii) (</U>to the extent it
relates to<U> </U>commitments to do items covered in <U>Sections&nbsp;8.2(b)(iii)</U> through
<U>(xi)) , Section&nbsp;8,2(c), </U>and <U>Section&nbsp;8.9(d)</U>, as to which <U>Section&nbsp;10.1(l)</U>
applies) shall have been complied with or performed in all material respects and all breaches of
any such covenants in the aggregate do not result in a Seller Material Adverse Effect.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Purchaser shall have received a certificate or certificates, dated as of the Closing Date,
executed on behalf of the Company, by an authorized executive officer thereof, in the form of the
attached Exhibit&nbsp;O.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Any Governmental Authorities whose consent is required for consummation of the
transactions contemplated hereby (other than the HSR Act as more particularly described in
<U>Section&nbsp;10.3(c)</U>) shall have issued all consents required for the transactions contemplated
hereby, without any unreasonable condition or limitation.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;There shall not be in effect any Law or Order of any Governmental Body of competent
jurisdiction restraining, enjoining or otherwise preventing consummation of the transactions
contemplated by this Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&#091;Intentionally Omitted&#093;


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;Purchaser, in its reasonable discretion, shall be satisfied with the terms and conditions
of the Ancillary Documents (with Purchaser deemed to be satisfied with Ancillary Documents with
respect to which forms have been attached hereto to the extent the Ancillary Documents delivered at
Closing are in the form of such attachments).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;The title company selected by Purchaser shall be committed to issue, at normal premium
rates an ALTA Owner&#146;s Title Insurance Policy for each of the Material Owned Real Properties and an
ALTA Leasehold Title Insurance Policy for each of the Leased Real Properties for which the Real
Property Lease or a memorandum thereof has been placed of record (or may be placed of record in
accordance with the terms of the Real Property Lease), insuring Purchaser&#146;s fee or leasehold
interest, as applicable, in an amount equal to the fair market value of each of the Material Owned
Real Properties and such amount as is customary for leasehold title policies with respect to the
Leased Real Properties, subject only to the Permitted Exceptions, together with extended coverage
over the so-called &#147;general&#148; exceptions, (to the extent available in the respective States where
the Material Owned Real Properties and Leased Real Properties are located) and such endorsements as
Purchaser may reasonably request.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;The amount of Current Trade Payables to be assumed by Purchaser under <U>Section
2.3(a)(viii)</U> shall not exceed $47,500,000 in the aggregate;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;Sellers shall have delivered, or caused to be delivered, to Purchaser all of the items set
forth in <U>Section&nbsp;4.2</U>;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;As of the Closing Date, neither Sellers nor Purchaser and its Affiliates shall have
received any notice from a Governmental Body, no Order shall have been issued stating and no
Governmental Body shall have taken any position in any action before the Bankruptcy Court or any
other Governmental Body, asserting, that Purchaser is required under Law or otherwise to purchase
any Excluded Assets or to assume any Excluded Liabilities, which notice, Order or position has not
been withdrawn with prejudice or dismissed with prejudice by a Final Order of the Bankruptcy Court
and/or a court of competent jurisdiction;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;Sellers shall have fully complied with and performed their obligations set forth in
<U>Sections&nbsp;8.2(a)(i), Sections&nbsp;8.2(b)(iii)</U> through <U>(xi), Section&nbsp;8.2(b)(xii)</U> (to the
extent it relates to commitments to do items covered in <U>Sections&nbsp;8.2(b)(iii)</U> through
<U>(xi)), Section&nbsp;8.2(c)</U> and <U>Section&nbsp;8.9(d)</U> hereof;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;The amount of all obligations (other than those in respect of letters of credit issued in
respect of trade payables and workers compensation obligations) outstanding under the DIP Credit
Agreement shall not exceed $120,000,000, and the amount of all obligations outstanding in respect
of letters of credit issued in respect of trade payables and workers compensation obligations shall
not exceed $35,000,000;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;Assuming the accuracy of the representation set forth in <U>Section&nbsp;6.9</U> hereof, the
Bankruptcy Court shall have determined, in the Sale Order and, if applicable, the Confirmation
Order, that Aretex (i)&nbsp;as a First Lien Lender, shall have an allowed claim in the


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<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">face amount of
$193,503,839.26, plus interest, (reduced by any payments made after the date hereof) and be
entitled to not less than 39.989% of any securities or other property or assets delivered and
allocated among the First Lien Lenders; and (ii)&nbsp;as a Second Lien Lender, shall have an allowed
claim in the face amount of $84,500,000, plus interest, and be entitled to not less than 51.212% of
any securities or other property or assets delivered and allocated among the Second Lien Lenders;
and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;The Distributable Value shall have been determined by the Bankruptcy Court.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2. <U>Conditions Precedent to Obligations of Sellers</U>. The obligations of Sellers to
consummate the transactions contemplated by this Agreement are subject to the fulfillment, as of
the Closing Date, of each of the following conditions (any or all of which may be waived by Sellers
in whole or in part to the extent permitted by applicable Law, such waiver to be in writing signed
by an executive officer of each of the Sellers referencing this section and the specific condition
to be waived):


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;the representations and warranties of Parent and Purchaser set forth in this Agreement or
in any exhibit, schedule or document required to be delivered in accordance with the terms of this
Agreement shall be true, complete and correct in all respects (with respect to representations and
warranties qualified or limited by materiality or Purchaser Material Adverse Effect) or in all
material respects (with respect to representations and warranties not so qualified
or limited), in each case as of the date hereof (unless cured as provided in <U>Section
4.4(f)</U>) and as of the Closing Date as if made on the Closing Date, other than any such
representations or warranties that expressly speak only as of an earlier date, which shall be true,
complete and correct in all respects as of such date (with respect to representations and
warranties qualified or limited by materiality or Purchaser Material Adverse Effect) or in all
material respects (with respect to representations and warranties not so qualified or limited), as
of such earlier date;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;All of the terms, covenants and conditions to be complied with and performed by Purchaser
on or prior to the Closing Date shall have been complied with or performed in all material respects
and all breaches of any such covenants in the aggregate do not result in a Purchaser Material
Adverse Effect;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Purchaser shall have delivered, or Parent shall have caused to be delivered, to Sellers
all of the items set forth in <U>Section&nbsp;4.3</U>;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Seller, in its reasonable discretion, shall be satisfied with the terms and conditions of
the Ancillary Documents (with Seller deemed to be satisfied with Ancillary Documents with respect
to which forms have been attached hereto to the extent the Ancillary Documents delivered at Closing
are in the form of such attachments); and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Seller shall have received a certificate or certificates, dated as of the Closing Date,
executed on behalf of the Purchaser, by an authorized executive officer thereof, in the form of the
attached Exhibit&nbsp;P.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3. <U>Conditions Precedent to Obligations of Parent, Purchaser and Sellers</U>. The respective
obligations of Parent, Purchaser and Sellers to consummate the transactions contemplated by this
Agreement are subject to the fulfillment of each of the following conditions (any or all of which
may be waived by Parent, Purchaser and Sellers in whole or in part to the extent permitted by
applicable Law, such waiver to be in writing signed by an executive officer of Parent, Purchaser or
the applicable Seller, referencing this section and the specific condition to be waived):


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;there shall not be in effect any Order by a Governmental Body of competent jurisdiction
restraining, enjoining or otherwise prohibiting the consummation of the transactions contemplated
hereby as of the Closing Date;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;the Bankruptcy Court shall have entered the Selection Order, the Sale Order and, if
applicable, the Confirmation Order; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;the waiting period applicable to the transactions contemplated by this Agreement under the
HSR Act shall have expired or early termination shall have been granted as of the Closing Date.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4. <U>Frustration of Closing Conditions</U>. Neither Sellers nor Purchaser may rely on the failure of any condition set forth in <U>Section
10.1</U>, <U>10.2</U> or <U>10.3</U>, as the case may be, if such failure was caused by such
party&#146;s failure to comply with any provision of this Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5. <U>Force Majeure</U>. If, prior to Closing, any damage or loss to any of the Sellers
properties and assets, including, without limitation, the Owned Real Properties and the Leased Real
Properties, occurs due to fire, flood, riot, theft, act of God or other casualty, or by reason of
condemnation, and if individually or in the aggregate the Losses associated therewith that are not
covered by any insurance or condemnation awards exceeds $25,000,000 (such Loss, a &#147;<U>Material
Property Loss</U>&#148;), then Purchaser may terminate this Agreement with no cost or obligation on the
part of Purchaser. &#147;<U>Loss</U>&#148; means the sum of the reasonably estimated total cost necessary
to repair or replace the damage or loss to any such asset, plus the amount of Lost Profits
associated with such Loss minus reasonably estimated insurance recoveries or condemnation awards
that will be assigned to Purchaser, all as reasonably determined by Purchaser and as set forth by
Purchaser in writing to Sellers describing such calculation of Loss. &#147;<U>Lost Profits</U>&#148; means
the amount of profits lost or reasonably expected to be lost in connection with the operation of
the Business as a result of any damage or loss to any of the properties or assets during the period
from the date of such damage or Loss to the expected date of completion of any rebuilding or
replacement of such damaged property or asset, all as reasonably determined by Purchaser and as set
forth by Purchaser in writing to Sellers describing such calculation of Lost Profits. Sellers
shall cooperate with Purchaser and provide such information as reasonably necessary for Purchaser
to determine such Lost Profits.


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<P align="center" style="font-size: 10pt">ARTICLE XI.



<P align="center" style="font-size: 10pt">TAXES



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1. <U>Transfer Taxes</U>. Purchaser shall be responsible for (and shall indemnify and hold
harmless Sellers and their respective directors, officers, employees, Affiliates, agents,
successors and permitted assigns (the &#147;<U>Indemnified Persons</U>&#148;) against any sales, use, stamp,
documentary stamp, filing, recording, transfer or similar fees or taxes or governmental charges
(including any interest and penalty thereon) payable in connection with the transactions
contemplated by this Agreement (&#147;<U>Transfer Taxes</U>&#148;). Sellers shall, however, seek to include
(to the extent permitted under applicable Law) in the Sales Order a provision that provides that
the transfer of the Purchased Assets shall be free and clear of any stamp or similar taxes under
Section 1146(c) of the Bankruptcy Code. To the extent that any Transfer Taxes are required to be
paid by Sellers (or such Transfer Taxes are assessed against Seller), Purchaser shall promptly
reimburse Seller, as applicable, for such Transfer Taxes. Sellers and Purchaser shall cooperate
and consult with each other prior to filing any Tax Returns in respect of Transfer Taxes;
<U>provided</U>, <U>however</U>, Sellers may initially pay any Transfer Taxes (for which
Purchaser shall promptly reimburse Sellers) and, thereafter, in reliance on Section 1146(c) of the
Bankruptcy Code (if applicable) apply for a refund (which refund shall
be remitted to the Purchaser to the extent such Transfer Taxes were previously reimbursed by
Purchaser). Sellers and Purchaser shall cooperate and otherwise take commercially reasonable
efforts to obtain any available refunds for Transfer Taxes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2. <U>Purchase Price Allocation</U>. As soon as reasonably practicable after the Closing Date,
the Purchase Price for the Purchased Assets shall be determined and allocated in accordance with a
statement provided by Purchaser to Sellers (the &#147;<U>Asset Acquisition Statement</U>&#148;). The Asset
Acquisition Statement as prepared by Purchaser shall be final provided the entries in the Statement
are reasonable. Sellers and Purchaser shall allocate the Purchase Price among Sellers and among
the Purchased Assets of each Seller as specified in the Asset Acquisition Statement. In accordance
with the Asset Acquisition Statement and Section&nbsp;1060 of the Tax Code and the Treasury Regulations
issued thereunder, Purchaser shall prepare and file Form&nbsp;8594 and any exhibits thereto and any
other forms or supplements required to be filed. All income Tax Returns and reports filed by
Purchaser and Sellers shall be prepared consistently with such Asset Acquisition Statement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3. <U>Tax Reporting</U>.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Purchaser shall prepare and file (or cause to be prepared and filed) on behalf of the
Sellers all Tax Returns, whether related to income taxes or non-income taxes, required to be filed
or that Purchaser otherwise deems appropriate, including the filing of amended Tax Returns, for all
Tax periods through and including any Tax period that includes the Closing Date. Purchaser shall
furnish a completed copy of any such Tax Return (including any supporting workpapers) to be filed
by Purchaser to Sellers for Sellers&#146; review at least thirty (30)&nbsp;days prior to the due date for
filing such returns. Sellers shall have the right to raise reasonable objections to such Tax
Returns. In the event that the parties are unable to resolve in good faith


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<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">any dispute prior to
fifteen (15)&nbsp;days before the due date, the parties shall jointly request that an independent
accountant mutually agreed upon by Sellers and Purchaser (the &#147;<U>Referee</U>&#148;) to resolve any
dispute as promptly as possible; <U>provided</U>, <U>however</U>, that Purchaser&#146;s position shall
prevail provided such position is reasonable. If the Referee is unable to make a determination
with respect to a disputed issue prior to the date which is five (5)&nbsp;days prior to the due date for
the filing of the Tax Return in question, then Purchaser may file such Tax Return on the due date
therefor without such determination having been made and without Sellers&#146; consent. Notwithstanding
the filing of such Tax Return, the Referee shall make a determination with respect to the disputed
issue in accordance with this <U>Section&nbsp;11.3</U>. All fees and expenses of the Referee shall be
paid by Purchaser.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Purchaser shall pay, and indemnify and hold harmless Sellers and the Indemnified Persons
against, all Taxes of the Sellers included in the Assumed Liabilities. Sellers shall indemnify and
hold harmless Purchaser against, all Taxes of Sellers that are included in Excluded Liabilities
pursuant to <U>Section&nbsp;2.4(g)</U>.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4. <U>Cooperation and Audits</U>. Purchaser, its affiliates and the Sellers shall cooperate
fully with each other regarding Tax matters (including the execution of appropriate powers of
attorney) and shall make available to the other as reasonably requested all information, records
and documents relating to Taxes governed by this Agreement until the expiration of the applicable
statute of limitations or extension thereof or the conclusion of all audits, appeals or litigation
with respect to such Taxes. Each of the Sellers shall deliver to the Purchaser any written
notices, information, documents or records received from any Tax Authority for taxable periods
prior to the Closing Date, within five (5)&nbsp;days of receipt of such notices, information, documents
or records. Without limiting the generality of the foregoing, the Sellers shall execute on or
prior to the Closing Date a power of attorney authorizing Purchaser to correspond, sign, collect,
negotiate, settle and administer all Tax payments and Tax Returns.


<P align="center" style="font-size: 10pt">ARTICLE XII.



<P align="center" style="font-size: 10pt">MISCELLANEOUS



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1. <U>No Survival of Representations and Warranties</U>. The parties hereto agree that the
representations and warranties contained in this Agreement shall not survive the Closing hereunder,
and none of the parties shall have any liability to each other after the Closing for any breach
thereof. The parties hereto agree that the covenants contained in this Agreement to be performed
at or after the Closing shall survive the Closing hereunder, and each party hereto shall be liable
to the other after the Closing for any breach thereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2. <U>Expenses</U>. Except as otherwise provided in this Agreement, each of Sellers, Parent
and Purchaser shall bear its own expenses incurred in connection with the negotiation and execution
of this Agreement and each other agreement, document and instrument contemplated by this Agreement
and the consummation of the transactions contemplated hereby; provided, that Purchaser shall pay
all filing fees with respect to the HSR Act payable in connection with this Agreement.


<P align="center" style="font-size: 10pt"> - 63 -
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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3. <U>Injunctive Relief</U>. Damages at law may be an inadequate remedy for the breach of any
of the covenants, promises and agreements contained in this Agreement, and, accordingly, any party
hereto shall be entitled to injunctive relief, without the requirement to post any bond, with
respect to any such breach, including specific performance of such covenants, promises or
agreements or an order enjoining a party from any threatened, or from the continuation of any
actual, breach of the covenants, promises or agreements contained in this Agreement;
<U>provided</U>, <U>however</U>, Sellers shall not be entitled to any injunctive relief or other
equitable remedy for any reason until after the Closing has occurred. Subject to the limitations
in the preceding proviso and in <U>Section&nbsp;12.4</U>, the rights
set forth in this <U>Section&nbsp;12.3</U> shall be in addition to any other rights which a party
hereto may have at law or in equity or pursuant to this Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4. <U>Exclusive Remedy</U>. The parties hereto agree that prior to the Closing, the right, if
any, to receive the Deposit Amount pursuant to <U>Section&nbsp;3.2</U> shall be the sole and exclusive
remedy that Sellers have against Purchaser for any claim or action or liability arising out of or
related to this Agreement or the Ancillary Documents or any termination of this Agreement. Such
payment of the Deposit Amount shall be liquidated damages and Sellers and Purchaser agree in
advance that actual damages would be difficult to ascertain and that the amount of such liquidated
damages is a fair and equitable amount to reimburse Sellers, as applicable, for damages sustained
by them prior to Closing.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.5. <U>Submission to Jurisdiction; Consent to Service of Process</U>.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Without limiting any party&#146;s right to appeal any order of the Bankruptcy Court, (i)&nbsp;the
Bankruptcy Court shall retain exclusive jurisdiction to enforce the terms of this Agreement and to
decide any claims or disputes which may arise or result from, or be connected with, this Agreement,
any breach or default hereunder, or the transactions contemplated hereby, and (ii)&nbsp;any and all
proceedings related to the foregoing shall be filed and maintained only in the Bankruptcy Court,
and the parties hereby consent to and submit to the jurisdiction and venue of the Bankruptcy Court
and shall receive notices at such locations as indicated in <U>Section&nbsp;12.9</U> hereof;
<U>provided</U>, <U>however</U>, that if the Bankruptcy Case has closed, the parties agree to
unconditionally and irrevocably submit to the exclusive jurisdiction of the United States District
Court for the Southern District of New York sitting in New York County or the Commercial Division,
Civil Branch of the Supreme Court of the State of New York sitting in New York County and any
appellate court from any thereof, for the resolution of any such claim or dispute. The parties
hereby irrevocably waive, to the fullest extent permitted by applicable law, any objection which
they may now or hereafter have to the laying of venue of any such dispute brought in such court or
any defense of inconvenient forum for the maintenance of such dispute. Each of the parties hereto
agrees that a judgment in any such dispute may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by Law.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Each of the parties hereto hereby consents to process being served by any party to this
Agreement in any suit, action or proceeding by delivery of a copy thereof in accordance with the
provisions of <U>Section&nbsp;12.9</U>.


<P align="center" style="font-size: 10pt"> - 64 -
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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.6. <U>Waiver of Right to Trial by Jury</U>. Each party to this Agreement waives any right to
trial by jury in any action, matter or proceeding regarding this Agreement or any provision hereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.7. <U>Entire Agreement; Amendments and Waivers</U>. This Agreement (including the schedules and exhibits hereto) represents the entire understanding
and agreement between the parties hereto with respect to the subject matter hereof. This Agreement
can be amended, supplemented or changed, and any provision hereof can be waived, only by written
instrument making specific reference to this Agreement signed by the party against whom enforcement
of any such amendment, supplement, modification or waiver is sought. No action taken pursuant to
this Agreement, including, without limitation, any investigation by or on behalf of any party,
shall be deemed to constitute a waiver by the party taking such action of compliance with any
representation, warranty, covenant or agreement contained herein. The waiver by any party hereto
of a breach of any provision of this Agreement shall not operate or be construed as a further or
continuing waiver of such breach or as a waiver of any other or subsequent breach. No failure on
the part of any party to exercise, and no delay in exercising, any right, power or remedy hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of such right, power or
remedy by such party preclude any other or further exercise thereof or the exercise of any other
right, power or remedy. All remedies hereunder are cumulative and are not exclusive of any other
remedies provided by law.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.8. <U>Governing Law</U>. This Agreement shall be governed by and construed in accordance with
the laws of the State of New York applicable to contracts made and performed in such State without
regard to the conflict of laws principles thereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.9. <U>Notices</U>. Except as specifically contemplated by or permitted in <U>Section
8.1(c)</U>, all notices and other communications under this Agreement shall be in writing and shall
be deemed given (i)&nbsp;when delivered personally by hand (with written confirmation of receipt), (ii)
when sent by facsimile (with written confirmation of transmission) or (iii)&nbsp;one business day
following the day sent by overnight courier (with written confirmation of receipt), in each case at
the following addresses and facsimile numbers (or to such other address or facsimile number as a
party may have specified by notice given to the other party pursuant to this provision):

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">If to Sellers, to:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">WestPoint Stevens Inc.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">507 W. 10th Street</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">West Point, GA 31833</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Facsimile: &nbsp;&nbsp;(706)&nbsp;645-4396</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: &nbsp;&nbsp;General Counsel</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Email: &nbsp;&nbsp;humphries.clay@wpstv.com</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"> - 65 -
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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">With a copy (which shall<BR>
&nbsp;&nbsp;&nbsp;&nbsp;not constitute notice) to:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Weil, Gotshal &#038; Manges LLP</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">767 Fifth Avenue</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">New York, NY 10153</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Facsimile:&nbsp;&nbsp;(212)&nbsp;310-8007</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: &nbsp;&nbsp;Ted S. Waksman, Esq.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Michael F. Walsh, Esq.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">If to Purchaser or Parent, to:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Textile Co., Inc.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">WS Textile Co., Inc.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">100 South Bedford Road</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Mt. Kisco, New York 10549</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Facsimile: &nbsp;&nbsp;(914)&nbsp;242-9282</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention:&nbsp;&nbsp;Felicia Buebel, Esq.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">With a copy to:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Sonnenschein Nath &#038; Rosenthal LLP</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1221 Avenue of the Americas</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">New York, NY 10020-1089</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Facsimile: &nbsp;&nbsp;(212)&nbsp;768-6800</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: &nbsp;&nbsp;Peter D. Wolfson, Esq.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.10. <U>Severability</U>. If any term or other provision of this Agreement is invalid, illegal,
or incapable of being enforced by any law or public policy, all other terms or provisions of this
Agreement shall nevertheless remain in full force and effect so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner materially adverse
to any party. Upon such determination that any term or other provision is invalid, illegal, or
incapable of being enforced, the parties hereto shall negotiate in good faith to modify this
Agreement so as to effect the original intent of the parties as closely as possible in an
acceptable manner in order that the transactions contemplated hereby are consummated as originally
contemplated to the greatest extent possible.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.11. <U>Binding Effect; Assignment</U>. This Agreement shall be binding upon and inure to the
benefit of the parties and their respective successors and permitted assigns. Nothing in this
Agreement shall create or be deemed to create any third party beneficiary rights in any Person or
entity not a party to this Agreement (other than AREH pursuant to <U>Section&nbsp;8.9</U>), including
any Person who is party to, or
benefits from the assumption of, any Assumed Liability. No assignment of this Agreement or of any
rights or obligations hereunder may be made by either Sellers, Parent or Purchaser (by operation of
law or otherwise) without the prior written consent of the other parties hereto and any attempted
assignment without the required consents


<P align="center" style="font-size: 10pt"> - 66 -
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">shall be void; <U>provided</U>, <U>however</U>, that
Purchaser may, prior to Closing, designate any one or more of its Affiliates to purchase, and
transfer to any Affiliate, its rights under this Agreement to purchase, any Purchased Asset. No
assignment of any obligations hereunder shall relieve the parties hereto of any such obligations.
Upon any permitted assignment, the references in this Agreement to Sellers, Parent or Purchaser
shall also apply to any such assignee unless the context otherwise requires. Nothing herein shall
prevent Parent, Purchaser or their permitted assignees from assigning this Agreement or any rights
or obligations hereunder or transferring any Purchased Assets to any Person after the Closing Date.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.12. <U>Non-Recourse</U>. Except for fraud, no past, present or future director, officer,
employee, incorporator, member, partner or equityholder of Sellers, Parent or Purchaser or their
Affiliates shall have any liability for the respective obligations or liabilities of such Person
under this Agreement or any agreement entered into in connection herewith or for any claim based
on, in respect of, or by reason of, the transactions contemplated hereby and thereby.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.13. <U>Publicity</U>. Prior to the Closing, none of the Purchasers, Parent or Sellers shall
issue, and after the Closing, none of Sellers shall issue, any press release or public announcement
concerning this Agreement or the transactions contemplated hereby without obtaining the prior
written approval of the other party, which approval will not be unreasonably withheld or delayed,
unless, in the reasonable judgment of the party intending to issue such release, disclosure is
otherwise required by applicable Law, or by the Bankruptcy Court with respect to filings to be made
with the Bankruptcy Court in connection with this Agreement, provided the party intending to issue
such release shall use its commercially reasonable efforts consistent with such applicable Law or
Bankruptcy Court requirement to consult with the other party with respect to the text thereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.14. <U>Counterparts</U>. This Agreement may be executed in one or more counterparts, each of
which will be deemed to be an original copy of this Agreement and all of which, when taken
together, will be deemed to constitute one and the same agreement.


<P align="center" style="font-size: 10pt">&#091;SIGNATURE PAGE FOLLOWS&#093;



<P align="center" style="font-size: 10pt"> - 67 -
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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers thereunto duly authorized, as of the date first written above.


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">WS TEXTILE CO., INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left"><I>/s/ Jon F Weber</I>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">TEXTILE CO., INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left"><I>/s/ Jon F Weber</I>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">NEW TEXTILE ONE, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left"><I>/s/ Jon F Weber</I>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">NEW TEXTILE TWO, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left"><I>/s/ Jon F Weber</I>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">SELLERS:<BR>
<BR>
<BR>
WESTPOINT STEVENS INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left"><I>/s/ M.L. Fontenot</I>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">M.L. &#147;Chip&#148; Fontenot&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">President and Chief Executive<BR>
Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">WESTPOINT STEVENS INC. I<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left"><I>/s/ Lester D. Sears</I>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Lester D. Sears&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">WESTPOINT STEVENS STORES INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left"><I>/s/ Lester D. Sears</I>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Lester D. Sears&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">J.P. STEVENS ENTERPRISES, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left"><I>/s/ Lester D. Sears</I>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Lester D. Sears&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="center" style="font-size: 10pt"><B>EXHIBIT A</B>



<P align="center" style="font-size: 10pt"><FONT style="font-variant: SMALL-CAPS"><B>Earnest Money Escrow Agreement</B></FONT>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-variant: SMALL-CAPS">Earnest Money Escrow Agreement</FONT> (this &#147;<U>Escrow Agreement</U>&#148;), dated as of June
17, 2005, by and between WestPoint Stevens Inc., a Delaware corporation, (the &#147;Company&#148;), WestPoint
Stevens Inc. I, WestPoint Stevens Stores Inc. and J.P. Stevens Enterprises, Inc., subsidiaries of
the Company (collectively with the Company, &#147;<U>Seller</U>&#148;) debtor-in-possession under title 11,
of the United States Code, 11 U.S.C. in the United States Bankruptcy Court for the Southern
District of New York (the &#147;<U>Bankruptcy Court</U>&#148;) and Textile Co., Inc., a Delaware corporation
(&#147;<U>Purchaser</U>&#148;) and Citibank, N.A. as escrow agent (the &#147;<U>Escrow Agent</U>&#148;).


<P align="center" style="font-size: 10pt"><B>W I T N E S S E T H</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-variant: SMALL-CAPS">Whereas</FONT>, pursuant to that certain order of the Bankruptcy Court dated April&nbsp;22, 2005,
approving bidding procedures (the &#147;Bidding Procedures&#148;) for the sale of all or substantially all of
the Sellers assets (the &#147;Bidding Procedures Order&#148;), Purchaser has submitted a bid to acquire
substantially all of the Sellers assets;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, in connection with such bid, Purchaser has submitted to the Company a form of Asset
Purchase Agreement (such form, as ultimately entered into by the parties thereto, the &#147;Asset
Purchase Agreement&#148;);


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, pursuant to the Bidding Procedures, Purchaser is required to submit a deposit in
connection with its bid in an amount equal to ten (10%) percent of the cash bid amount;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-variant: SMALL-CAPS">Whereas</FONT>, pursuant to the Bidding Procedures, Purchaser will deliver a deposit of
$12,500,000, which may be increased by a subsequent deposit in accordance with the Bidding
Procedures (such deposit and any subsequent deposit the &#147;<U>Escrow Deposit</U>&#148;, and together with
all interest thereon collectively the &#147;<U>Escrow Funds</U>&#148;) into an escrow account;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-variant: SMALL-CAPS">Whereas</FONT>, the Sellers are authorized to enter into this Escrow Agreement pursuant to
the Bidding Procedures Order; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-variant: SMALL-CAPS">Whereas</FONT>, Purchaser and Seller desire to appoint the Escrow Agent to act as escrow
agent hereunder in the manner hereinafter set forth and the Escrow Agent is willing to act in such
capacity.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-variant: SMALL-CAPS">Now therefore</FONT>, in consideration of the premises and of the mutual covenants and
agreements hereinafter set forth and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Purchaser, Seller and the Escrow
Agent hereby agree as follows:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;<U>Establishment of Escrow Account</U>. The Escrow Agent shall establish and maintain on
behalf of the parties hereto, an interest bearing account (the &#147;<U>Escrow </U>


<P align="center" style="font-size: 10pt">&nbsp;
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt"><U>Account</U>&#148;) to which
there shall be immediately credited and held all amounts received by the Escrow Agent from
Purchaser in accordance with Section&nbsp;2 hereof. The funds credited to the Escrow Account shall be
applied and disbursed only as provided herein. The Escrow Agent shall segregate the funds credited
to the Escrow Account from its other funds, or funds of any other parties. The Escrow Account and
the Escrow Funds shall not be property of the Sellers&#146; bankruptcy estates.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;<U>Deposits to the Escrow Account; Investment</U>.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Purchaser shall deliver to the Escrow Agent for deposit in the Escrow Account $12,500,000
as required pursuant to the Bidding Procedures and the terms set forth herein and shall make a
subsequent deposit hereunder as and when provided by the Bidding Procedures.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;All amounts to be deposited with the Escrow Agent shall be transferred by wire transfer of
immediately available funds to the following account of the Escrow Agent (or to such other account
of the Escrow Agent as the Escrow Agent shall notify the Company and Purchaser in writing prior to
the transfer of funds and which account the Company and Purchaser approve):



<P align="left" style="font-size: 10pt; margin-left: 50%">Citibank, N.A.<BR>
ABA No.: 021000089<BR>
Citibank as Escrow Agent for<BR>
Textile Co. and WestPoint Stevens<BR>
Account No.: 95001224<BR>
Attention: Amie Thomas


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Purchaser is and shall be deemed the owner of all Escrow Funds in the Escrow Account and
shall be responsible for the preparation of all tax returns associated therewith and shall pay all
costs relating to such returns, and all taxes, fines and penalties and interest. The Escrow
Account shall be assigned the federal tax identification number of Purchaser. Purchaser shall
provide Escrow Agent, at any time upon request of Escrow Agent with a Form W-8 or W-9 to evidence
Purchaser is not subject to any back-up withholding under the United States Internal Revenue Code.
Purchaser shall report all income, if any, that is earned on, or derived from, the Escrow Funds as
its income, in the taxable year or years in which such income is properly includible and pay any
taxes attributable thereto.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;<U>Distributions from Escrow Account</U>.(a) The Escrow Funds on deposit in the Escrow
Account shall be withdrawn and disbursed by the Escrow Agent only in accordance with this Section
3.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;If Purchaser is the Successful Bidder (as defined in the Bidding Procedures), and the
Asset Purchase Agreement is not executed and delivered by the parties thereto by seven (7)&nbsp;days
after the Purchaser Selection Hearing, Purchaser and the Company shall give joint written
instructions to the Escrow Agent, signed by Purchaser and the Company, to deliver the Escrow Funds
to the Purchaser, and the Escrow Agent



<P align="center" style="font-size: 10pt">2
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">shall so disburse the Escrow Funds, within two (2)&nbsp;business
days of receipt of such instructions.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;If Purchaser is not the Successful Bidder but its bid constitutes the second highest or
otherwise best bid, Escrow Funds on deposit in the Escrow Account (including any supplemental
amounts deposited pursuant to the Bidding Procedures) shall be retained in escrow by the Escrow
Agent until the earlier to occur of (i)&nbsp;the time Purchaser&#146;s bid is officially rejected by Seller
and (ii)&nbsp;seven (7)&nbsp;days after the Purchaser Selection Hearing (but in no event later than three
weeks after the conclusion of the Auction). Purchaser and the Company shall give joint written
instructions to the Escrow Agent, signed by Purchaser and the Company, to deliver the Escrow Funds
to the Purchaser upon the occurrence of (i)&nbsp;or (ii)&nbsp;above, and the Escrow Agent shall so disburse
the Escrow Funds, within two (2)&nbsp;business days of receipt of such instructions.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;If Purchaser is not the Successful Bidder and its bid does not constitute the second
highest or otherwise best bid, Escrow Funds on deposit in the Escrow Account shall be returned to
Purchaser. Purchaser and the Company shall give joint written instructions to the Escrow Agent,
signed by Purchaser and the Company, to deliver the Escrow Funds to Purchaser and the Escrow Agent
shall so disburse the Escrow Funds, within two (2)&nbsp;business days of receipt of such instructions.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;If, following the execution of the Asset Purchase Agreement by the parties thereto, the
Escrow Agent receives joint written instructions signed by Purchaser and the Company to the effect
that the Asset Purchase Agreement has been terminated by Seller pursuant to the terms of the Asset
Purchase Agreement and pursuant to such terms, Seller is entitled to the Escrow Funds, the Escrow
Agent shall disburse the Escrow Funds to Seller within two (2)&nbsp;Business Days of receipt of notice
of such termination.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;If, following the execution of the Asset Purchase Agreement by the parties thereto, the
Escrow Agent receives joint written instructions signed by Purchaser and the Company to the effect
that the Asset Purchase Agreement has been terminated pursuant to the terms of the Asset Purchase
Agreement, and pursuant to such terms Purchaser is entitled to the Escrow Funds, the Escrow Agent
shall return the Escrow Funds to Purchaser within two (2)&nbsp;Business Days of receipt of notice of
such termination.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;Either the Company or Purchaser (the &#147;<U>Notifying Party</U>&#148;) (without joint
instructions from the other party) may notify the Escrow Agent and the other party hereto (the
&#147;<U>Recipient</U>&#148;) in writing that it believes it is entitled to the Escrow Funds. Any such
notice (the &#147;<U>Notice</U>&#148;) shall state the reason that the Notifying Party is entitled to the
Escrow Funds. The Notice will be sent simultaneously to the Escrow Agent and the Recipient. Upon
receipt of the Notice, the Escrow Agent shall promptly deliver a copy
thereof to the Recipient. The Recipient shall have ten calendar days following the date the
Notice is deemed duly given (pursuant to Section&nbsp;8 hereof) to provide written notice to the Escrow
Agent and the Notifying Party disputing the Notifying Party&#146;s entitlement to the Escrow Funds.
Upon receipt of written notice disputing the Notifying Party&#146;s entitlement to the Escrow Funds, the
Escrow Agent shall promptly deliver a copy thereof to the Notifying Party. If the Escrow Agent
does not receive written notice disputing



<P align="center" style="font-size: 10pt">3
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">such entitlement to the Escrow Funds within ten calendar
days following the date the Notice is deemed duly given (pursuant to Section&nbsp;8 hereof), the Escrow
Agent shall pay the Escrow Funds as directed by the Notifying Party. If the Escrow Agent receives
written notice disputing such entitlement to the Escrow Funds within ten calendar days following
the date the Notice is deemed duly given, the Escrow Agent shall not pay the Escrow Funds until the
Escrow Agent receives either an order of the Bankruptcy Court, which order has become final and not
subject to appeal and has been certified by the Clerk of the Bankruptcy Court or other appropriate
official of the Bankruptcy Court, or joint written notice signed by Purchaser and the Company
indicating that the dispute has been resolved, and directing the Escrow Agent to whom to pay the
Escrow Funds and in what amounts (the occurrence of either event, a &#147;<U>Final Resolution</U>&#148;).
The Escrow Agent shall pay the Escrow Funds within five (5)&nbsp;business days of its receipt of the
written evidence of a Final Resolution required above in this Section 3(f) in accordance with the
terms of such Final Resolution.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;The Escrow Agent shall be entitled to rely, exclusively, on any representation jointly
made by Purchaser and the Company in writing in relation to the release of Escrow Funds from the
Escrow Account, including, but not limited to, any representation that Purchaser or the Seller is
entitled to the Escrow Funds, and shall release the Escrow Funds from the Escrow Account from time
to time as directed in any such joint written instruction from Purchaser and the Company or
pursuant to a Final Resolution.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;Upon the Escrow Agent receiving written notice, signed by Purchaser and the Company, of
the closing of the transactions contemplated by the Asset Purchase Agreement, the Escrow Agent
shall promptly disburse (i)&nbsp;the Escrow Deposit as required by the Asset Purchase Agreement and (ii)
all interest thereon to Purchaser.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;All disbursements of the Escrow Funds hereunder shall be made by Escrow Agent by wire
transfer of immediately available funds to such account or accounts as shall have been designated
in writing to the Escrow Agent by Purchaser if it is to receive such disbursement, or by the
Company if Seller or a party on behalf of Seller is to receive such disbursement. Subject to the
terms hereof, the aforesaid wire transfers shall be executed by Escrow Agent pursuant to procedures
set forth in and subject to the terms of the Funds Transfer Agreement that has been executed
simultaneously with this Agreement.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;Subject to the Bidding Procedures Order and Section 6(g) hereof, Sellers acknowledge that
any notice given by Purchaser or Escrow Agent hereunder may
be given without seeking any relief from the automatic stay and that the Escrow Funds and the
Escrow Account do not constitute property of the Sellers&#146; bankruptcy estates.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;<U>Termination of Escrow Account and Escrow Agreement</U>. The Escrow Account shall be
deemed dissolved and this Escrow Agreement shall terminate upon the written agreement of the
parties hereto, upon disbursement of all of the Escrow Funds in the Escrow Account in accordance
with the terms hereof, or upon a transfer of all of the Escrow Funds pursuant to an order of the
Bankruptcy Court.


<P align="center" style="font-size: 10pt">4
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;<U>Escrow Agent</U>.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of Purchaser and the Company agrees to pay the Escrow Agent one-half (1/2) of the
reasonable compensation for its services as Escrow Agent hereunder, as listed on Schedule&nbsp;A
annexed hereto, promptly upon request therefore by Escrow Agent, and each of Purchaser and
the Company agree to reimburse the Escrow Agent for one half (1/2) of all reasonable
expenses of or reasonable disbursements incurred by the Escrow Agent in the performance of
its duties hereunder, including the reasonable fees, expenses and disbursements of counsel
to the Escrow Agent; provided, that if the Closing under the Asset Purchase Agreement
occurs, all such compensation, fees, costs, disbursements and expenses to the Escrow Agent
shall be paid by Purchaser.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;<U>Rights, Duties and Immunities of Escrow Agent</U>. Acceptance by the Escrow Agent of
its duties under this Escrow Agreement is subject to the following terms and conditions, which all
parties to this Escrow Agreement hereby agree shall govern and control the rights, duties and
immunities of the Escrow Agent:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The duties and obligations of the Escrow Agent shall be determined solely by the express
provisions of this Escrow Agreement and the Escrow Agent shall not be liable, except for the
performance of such duties and obligations as are specifically set out in this Escrow Agreement.
The Escrow Agent shall not be required to inquire as to the performance or observation of any
obligation, term or condition under any agreement or arrangement by Purchaser and Seller. The
Escrow Agent is not a party to, and is not bound by, any agreement or other document out of which
this Escrow Agreement may arise. The Escrow Agent shall be under no liability to any party hereto
by reason of any failure on the part of any other party hereto or any maker, guarantor, endorser or
other signatory of any document or any other person to perform such person&#146;s obligations under any
such document. The Escrow Agent shall not be bound by any waiver, modification, termination or
rescission of this Escrow Agreement or any of the terms hereof, unless evidenced by a writing
delivered to the Escrow Agent signed by the proper party or parties and, if the duties or rights of
the Escrow Agent are affected, unless it shall give its prior written consent thereto.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Escrow Agent shall not be responsible in any manner for the validity or sufficiency of
this Escrow Agreement or of any property delivered hereunder, or for the value or collectibility of
any note, check or other instrument, if any, so delivered, or for any representations made or
obligations assumed by any party other than
the Escrow Agent. Nothing herein contained shall be deemed to obligate the Escrow Agent to
deliver any cash, instruments, documents or any other property referred to herein, unless the same
shall have first been received by the Escrow Agent pursuant to this Escrow Agreement.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Purchaser and the Company will each reimburse and indemnify the Escrow Agent for, and hold
it harmless against, one-half (1/2) of any loss, liability or expense, including but not limited to
reasonable counsel fees, incurred without bad faith, willful misconduct or gross negligence on the
part of the Escrow Agent arising out of or in conjunction with its acceptance of, or the
performance of its duties and obligations



<P align="center" style="font-size: 10pt">5
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">under this Escrow Agreement, as well as the reasonable
costs and expenses, including reasonable counsel fees, of defending against any claim or liability
arising out of or relating to this Escrow Agreement; provided, that if the Closing under the Asset
Purchase Agreement occurs, all such fees, costs, expenses and indemnities shall be borne by
Purchaser.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Escrow Agent shall be fully protected in acting on and relying upon any written notice
direction, request, waiver, consent, receipt or other paper or document which the Escrow Agent in
good faith believes to have been signed and presented by the proper party or parties.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;The Escrow Agent shall not be liable for any error of judgment, or for any act done or
step taken or omitted by it in good faith or for any mistake in fact or law, or for anything which
it may do or refrain from doing in connection herewith, except its own bad faith, gross negligence
or willful misconduct.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;The Escrow Agent may seek the advice of legal counsel in the event of any dispute or
question as to the construction of any of the provisions of this Escrow Agreement or its duties
hereunder, and it shall incur no liability and shall be fully protected in respect of any action
taken, omitted or suffered by it in good faith in accordance with the written advice or opinion of
such counsel.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;The parties hereto agree that should any dispute arise with respect to the payment,
ownership or right of possession of the Escrow Funds, the Escrow Agent is authorized and directed
to retain in its possession, without liability to anyone, except for its bad faith, willful
misconduct or gross negligence, all or any part of the Escrow Funds until such dispute shall have
been settled either by written agreement signed by Purchaser and the Company or by the final
non-appealable order, decree or judgment of the Bankruptcy Court and a notice executed by Purchaser
and the Company or their authorized representatives shall have been delivered to the Escrow Agent
setting forth the resolution of the dispute and the amount of the Escrow Funds to be paid pursuant
thereto, which notice Purchaser and the Company hereby agree to so execute and deliver to the
Escrow Agent in the event that such an order, decree or judgment is obtained from or issued by the
Bankruptcy Court. The Escrow Agent shall make the payments of the amounts set forth in such notice
within two (2)&nbsp;business days of its receipt of such notice in accordance with the terms thereof.
The Escrow Agent shall be under no duty
whatsoever to institute, defend or partake in such proceedings. Purchaser and Seller
acknowledge and agree that neither party will seek an order for the release of the Escrow Funds
without giving adequate notice of such action to the other party so that the other party has
sufficient opportunity to appear with respect thereto.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;The agreements set forth in this Section&nbsp;6 shall survive the resignation or removal of the
Escrow Agent, the termination of this Escrow Agreement and the payment of all amounts hereunder.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;<U>Resignation of Escrow Agent</U>. The Escrow Agent shall have the right to resign upon
not less than thirty (30)&nbsp;days written notice to the Company and Purchaser.


<P align="center" style="font-size: 10pt">6
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt">In the event of such
resignation, the Company and Purchaser shall mutually agree upon and appoint a successor escrow
agent hereunder by delivering to the Escrow Agent a written notice signed by the Company and
Purchaser of such appointment. Upon receipt of such written notice, the Escrow Agent shall deliver
to the designated successor escrow agent all money held hereunder and shall thereupon be released
and discharged from any and all further responsibilities whatsoever under this Escrow Agreement;
<U>provided</U>, <U>however</U>, that the Escrow Agent shall not be deprived of its compensation
earned prior to such time.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If no successor escrow agent shall have been designated by the date specified in the Escrow
Agent&#146;s notice, all obligations of the Escrow Agent hereunder shall continue until all property
held by it hereunder is delivered to a person designated by the written instructions of the Company
and the Purchaser or in accordance with the direction of a final non-appealable order or judgment
of the Bankruptcy Court.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;<U>Notices</U>. All claims, notices, consents, objections and other communications under
this Escrow Agreement shall be in writing and shall, except as otherwise provided herein, be deemed
to have been duly given when (i)&nbsp;delivered by hand, or (ii)&nbsp;when received by the addressee, if sent
by Express Mail, Federal Express or other reputable overnight delivery service, in each case, with
a copy thereof delivered by facsimile (with receipt confirmed) and email, and in each case, at the
appropriate addresses and facsimile numbers as set forth below:

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-variant: SMALL-CAPS">Escrow Agent</FONT>:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Citibank, N.A. #735</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">785 Fifth Avenue</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">New York, NY 10022</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: Amie A. Thomas, V.P.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telephone: (646)&nbsp;840-3010</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Facsimile: (212)&nbsp;223-4584</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">E-mail: <U>amie.a.thomas@citigroup.com</U></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">With a copy to:</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Citibank, N.A.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">666 Fifth Avenue, 3<SUP style="font-size: 85%; vertical-align: text-top">rd</SUP> Floor</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">New York, NY 10103</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: Anthony V. Pantina, V.P.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telephone: (212)&nbsp;830-4956</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Facsimile: (212)&nbsp;830-4905</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">E-mail: anthony.v.pantina@citigroup.com</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">7
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-variant: SMALL-CAPS">purchaser:</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Textile Co., Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">100 South Bedford Road</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Mt. Kisco, New York 10549</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Facsimile: (914)&nbsp;242-9282</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: Felicia Buebel, Esq.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">E-mail: fpb@areh.net</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">With a copy to:</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Sonnenschein Nath &#038; Rosenthal LLP</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1221 Avenue of the Americas</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">New York, NY 10020-1089</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Facsimile: (212)&nbsp;768-6800</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: Peter D. Wolfson, Esq.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">E-mail: pwolfson@sonnenschein.com</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-variant: SMALL-CAPS">Seller:</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">WestPoint Stevens Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">507 W. 10th Street</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">WestPoint, GA 31833</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Facsimile: (706)&nbsp;645-4300</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: General Counsel</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">E-mail: humphries.clay@wpstv.com</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">With a copy (which shall not constitute notice) to:</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="49%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="44%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Weil, Gotshal &#038; Manges LLP</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">767 Fifth Avenue</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">New York, NY 10153</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Facsimile:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(212) 310-8007</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ted S. Waksman, Esq.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Michael F. Walsh, Esq.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">E-mail:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">ted.waksman@weil.com</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">michael.walsh@weil.com</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt">(or to such other addresses and facsimile numbers as a party may designate as to itself by notice
to the other parties). Notwithstanding any of the foregoing, any computation of a time period
which is to begin after receipt of a notice by the Escrow Agent shall run from the date of receipt
by it.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;<U>Successors</U>. This Escrow Agreement shall be binding upon and inure to the benefit
of the Purchaser, the Seller and the Escrow Agent and their respective successors and assigns,
<U>provided</U> that this Escrow Agreement may not be assigned by any party without the prior
written consent of the other parties, which consent shall not be unreasonably withheld or delayed.


<P align="center" style="font-size: 10pt">8
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;<U>Severability</U>. If any portion or provision of this Escrow Agreement shall to any
extent be declared illegal or unenforceable by a court of competent jurisdiction, then the
application of such portion or provision in circumstances other than those as to which it is so
declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of
this Escrow Agreement shall be construed by modifying or limiting it so as to be valid and
enforceable to the maximum extent compatible with, and possible under, applicable law. The
provisions hereof are severable, and in the event any provision hereof should be held invalid or
unenforceable in any respect, it shall not invalidate, render unenforceable or otherwise affect any
other provision hereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;<U>Amendments</U>. This Escrow Agreement may be amended or modified at any time or from
time to time only in writing executed by the parties to this Escrow Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;<U>Governing Law</U>. This Escrow Agreement shall be construed and interpreted, and the
rights of the parties shall be determined, in accordance with the substantive laws of the State of
New York, without regard to the conflict of laws principles thereof or of any other jurisdiction.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;<U>JURISDICTION</U>. THE BANKRUPTCY COURT SHALL HAVE EXCLUSIVE JURISDICTION TO RESOLVE
ANY AND ALL DISPUTES ARISING UNDER THIS ESCROW AGREEMENT AND EACH OF THE PARTIES HERETO HEREBY
EXPRESSLY CONSENTS TO SUCH EXCLUSIVE JURISDICTION.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;<U>Waiver</U>. No waiver of any provision hereof shall be effective unless made in
writing and signed by the waiving party. The failure of any party to require the performance of
any term or obligation of this Escrow Agreement, or the waiver by any party of any breach of this
Escrow Agreement, shall not prevent any subsequent enforcement of such term or obligation or be
deemed a waiver of any subsequent breach.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.&nbsp;<U>Headings</U>. The headings and captions in this Escrow Agreement are for convenience
of reference only and shall not in any way affect the meaning or interpretation of this Escrow
Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.&nbsp;<U>Counterparts</U>. This Escrow Agreement may be executed in any number of counterparts
and by each of the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which together shall constitute
one and the same agreement.


<P align="center" style="font-size: 10pt">&#091;Remainder of Page Intentionally Left Blank&#093;



<P align="center" style="font-size: 10pt">9
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-variant: SMALL-CAPS">In Witness Whereof</FONT>, the undersigned have executed this Escrow Agreement as of the
date first written above.


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">WESTPOINT STEVENS INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">WESTPOINT STEVENS INC. I<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">WESTPOINT STEVENS STORES INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">J.P. STEVENS ENTERPRISES, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">TEXTILE CO., INC<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">CITIBANK, N.A.,<BR>
as Escrow Agent<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt">10
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="center" style="font-size: 10pt"><U>SCHEDULE OF FEES</U>



<P align="center" style="font-size: 10pt">To act as an<BR>
Escrow Agent


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="55%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="19%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><U><B>Administration Fee</B></U>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">5,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt">Covers acceptance of appointment as Escrow Agent including complete study of drafts of Escrow
Agreement and all supporting documents in connection therewith, conferences until the final Escrow
Agreement is agreed upon and execution of final Agreement.



<P align="left" style="font-size: 10pt"><U><B>Wire Transfer of Funds</B></U>



<P align="left" style="font-size: 10pt">Fees to be charged in accordance with Citibank&#146;s Standard Schedule of Fees and Charges.



<P align="left" style="font-size: 10pt"><U><B>NOTE</B></U>:


<P align="left" style="font-size: 10pt">Charges for any services not specifically covered in this schedule will be billed commensurate with
the services rendered. This schedule reflects charges that are now in effect for our normal and
regular services and are subject to modification where unusual conditions or requirements prevail,
and does not include counsel fees or expenses and disbursements, which will be billed at cost. The
fees of our counsel shall be due and payable whether or not the transaction closes.



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<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="center" style="font-size: 10pt"><B>EXHIBIT B</B>



<P align="center" style="font-size: 10pt"><B>REGISTRATION RIGHTS AGREEMENT</B>



<P align="left" style="font-size: 10pt">REGISTRATION RIGHTS AGREEMENT (&#147;Agreement&#148;) is entered into as of the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> day of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2005,
by and among WS Textile Co., Inc., a Delaware corporation (the &#147;Company&#148;), and the undersigned
parties listed under Investor on the signature page hereto (each, an &#147;Investor&#148; and collectively,
the &#147;Investors&#148;) that have executed and delivered this Agreement.



<P align="center" style="font-size: 10pt">WITNESSETH:



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Investors currently hold all of the issued and outstanding securities of the
Company; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Investors and the Company desire to enter into this Agreement to provide the
Investors with certain rights relating to the registration of shares of Common Stock (as defined
below) held by them and/or issuable upon exercise of the Subscription Rights (as defined below)
held by them, and the registration of the Subscription Rights held by them, as applicable.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, and
for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;DEFINITIONS. The following capitalized terms used herein have the following meanings:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Affiliate</U>&#148; means, with respect to any Person, any other Person that, directly or
indirectly through one or more intermediaries, controls, or is controlled by, or is under common
control with, such Person, and the term &#147;control&#148; (including the terms &#147;controlled by&#148; and &#147;under
common control with&#148;) means the possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of such Person, whether through ownership of voting
securities, by contract or otherwise.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Agreement</U>&#148; means this Agreement, as amended, restated, supplemented, or otherwise
modified from time to time.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Aretex</U>&#148; means Aretex LLC.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Asset Purchase Agreement</U>&#148; means the Asset Purchase Agreement, dated June&nbsp;23, 2005,
among the Company, New Textile One, Inc., New Textile Two, Inc., Textile Co., Inc.,
WestPoint Stevens, Inc., WestPoint Stevens Inc. I, WestPoint Stevens Stores Inc., and
J.P. Stevens Enterprises Inc.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Commission</U>&#148; means the Securities and Exchange Commission, or any other federal
agency then administering the Securities Act or the Exchange Act.



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Common Stock</U>&#148; means the Class&nbsp;A Common Stock, par value $0.01 per share, of the
Company.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company</U>&#148; is defined in the preamble to this Agreement.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Demand Registration</U>&#148; is defined in Section&nbsp;2.2.1.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Demanding Holder</U>&#148; is defined in Section&nbsp;2.2.1.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Distribution Date</U>&#148; means the date that all of the Common Stock and Subscription
Rights are delivered in accordance with Section&nbsp;3.3(c) of the Asset Purchase Agreement.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Exchange Act</U>&#148; means the Securities Exchange Act of 1934, as amended, and the rules
and regulations of the Commission promulgated thereunder, all as the same shall be in effect at the
time.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Governmental Body</U>&#148; means any government or governmental or regulatory body thereof,
or political subdivision thereof, whether foreign, federal, state, or local, or any agency,
instrumentality or authority thereof, or any court or arbitrator (public or private).



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Initial Holder</U>&#148; is defined in Section&nbsp;2.1.1.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Initial Registration</U>&#148; is defined in Section&nbsp;2.1.1.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Indemnified Party</U>&#148; is defined in Section&nbsp;4.3.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Indemnifying Party</U>&#148; is defined in Section&nbsp;4.3.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Investor</U>&#148; is defined in the preamble to this Agreement.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Investor Indemnified Party</U>&#148; is defined in Section&nbsp;4.1.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Maximum Number of Shares</U>&#148; is defined in Section&nbsp;2.2.4.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Non-Related Initial Holder</U>&#148; means any Initial Holder that is not a Related Initial
Holder.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Notices</U>&#148; is defined in Section&nbsp;5.3.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Person</U>&#148; means any individual, corporation, limited liability company, partnership,
firm, joint venture, association, joint-stock company, trust, unincorporated organization,
Governmental Body or other entity.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Piggy-Back Registration</U>&#148; is defined in Section&nbsp;2.3.1.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Register</U>,&#148; &#147;<U>registered</U>&#148; and &#147;<U>registration</U>&#148; mean a registration
effected by preparing and filing a Registration Statement or similar document in compliance with
the



<P align="center" style="font-size: 10pt">2
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">requirements of the Securities Act, and the applicable rules and regulations promulgated
thereunder, and such registration statement becoming effective.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Registrable Securities</U>&#148; means all of the shares of Common Stock owned or held by the
Investors, all of the Subscription Rights owned or held by the Investors and all of the shares of
Common Stock issuable upon the exercise of all of the Subscription Rights owned or held by the
Investors. Registrable Securities include any warrants, shares of capital stock or other
securities of the Company issued as a dividend or other distribution with respect to or in exchange
for or in replacement of such shares of Common Stock and/or Subscription Rights, as applicable. As
to any particular Registrable Securities, such securities shall cease to be Registrable Securities
when: (a)&nbsp;a Registration Statement with respect to the sale of such securities shall have become
effective under the Securities Act and such securities shall have been sold, transferred, disposed
of or exchanged in accordance with such Registration Statement; (b)&nbsp;such securities are no longer
owned or held by the Investor; (c)&nbsp;such securities shall have been otherwise transferred, new
certificates for them not bearing a legend restricting further transfer shall have been delivered
by the Company and subsequent public distribution of them shall not require registration under the
Securities Act; (d)&nbsp;such securities shall have ceased to be outstanding, or (e)&nbsp;all of the
Registrable Securities owned or held by the Investor are immediately salable under Rule&nbsp;144.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Registration Statement</U>&#148; means a registration statement filed by the Company with the
Commission in compliance with the Securities Act and the rules and regulations promulgated
thereunder for a public offering and sale of Common Stock (other than a registration statement on
Form S-4 or Form S-8, or its successor, or any registration statement covering only securities
proposed to be issued in exchange for securities or assets of another entity).



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Related Initial Holder</U>&#148; means Textile Holding, LLC and any of its Affiliates.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Securities Act</U>&#148; means the Securities Act of 1933, as amended, and the rules and
regulations of the Commission promulgated thereunder, all as the same shall be in effect at the
time.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Subscription Rights</U>&#148; shall have the meaning set forth in the Asset Purchase
Agreement.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Underwriter</U>&#148; means a securities dealer who purchases any Registrable Securities as
principal in an underwritten offering and not as part of such dealer&#146;s market-making activities.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;REGISTRATION RIGHTS.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <U>Initial Registration</U>.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.1. <U>Registration</U>. As soon as reasonably practicable after the Distribution Date,
the Company shall prepare a Registration Statement for registration under the Securities Act of all
or part of the Registrable Securities and all of the shares of Common Stock issuable upon exercise
of all of the Subscription Rights that may be owned or held by persons other than the Investors
(the &#147;<U>Initial Registration</U>&#148;). The Company will notify all holders of


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<P align="left" style="font-size: 10pt">Registrable Securities of the Initial Registration, and each holder of Registrable Securities
who wishes to include all or a portion of such holder&#146;s Registrable Securities in the Initial
Registration (each such holder including shares of Registrable Securities in such registration, an
&#147;<U>Initial Holder</U>&#148;) shall so notify the Company within fifteen (15)&nbsp;days after the receipt by
the holder of the notice from the Company. Each Initial Holder shall specify the number of
Registrable Securities proposed to be sold and the intended method(s) of distribution thereof. The
Company shall not be obligated to effect more than one (1)&nbsp;Initial Registration under this Section
2.1.1 in respect of Registrable Securities.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.2. <U>Effective Registration</U>. A registration will not count as an Initial
Registration until the Registration Statement filed with the Commission with respect to such
Initial Registration has been declared effective and the Company has complied with all of its
obligations under this Agreement with respect thereto; <U>provided</U>, <U>however</U>, that if,
after such Registration Statement has been declared effective, the offering of Registrable
Securities pursuant to an Initial Registration is interfered with by any stop order or injunction
of the Commission or any other governmental agency or court, the Registration Statement with
respect to such Initial Registration will be deemed not to have been declared effective, unless and
until, such stop order or injunction is removed, rescinded or otherwise terminated.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.3. <U>Underwritten Offering</U>. If a majority-in-interest of the Non-Related Initial
Holders so elect and such holders so advise the Company within fifteen (15)&nbsp;days after the receipt
by the holder of the notice from the Company, the offering of such Registrable Securities pursuant
to such Initial Registration shall be in the form of an underwritten offering. In such event, the
right of any holder to include its Registrable Securities in such registration shall be conditioned
upon such holder&#146;s participation in such underwriting and the inclusion of such holder&#146;s
Registrable Securities in the underwriting to the extent provided herein. All Initial Holders
proposing to distribute their securities through such underwriting shall enter into an underwriting
agreement in customary form with the Underwriter or Underwriters selected for such underwriting by
a majority-in-interest of the Non-Related Initial Holders initiating the Initial Registration,
which Underwriter or Underwriters shall be satisfactory to the Company.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <U>Demand Registration</U>.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.1. <U>Request for Registration</U>. At any time and from time to time on or after the
Company is eligible to utilize a registration statement on Form S-3 for transactions involving
secondary offerings under the Securities Act, the holders of a majority-in-interest of the
Registrable Securities held by the Investors, may make a written demand for registration under the
Securities Act of all or part of their Registrable Securities (a &#147;<U>Demand Registration</U>&#148;).
Any demand for a Demand Registration shall specify the number of Registrable Securities proposed to
be sold and the intended method(s) of distribution thereof. The Company will notify all holders of
Registrable Securities of the demand, and each holder of Registrable Securities who wishes to
include all or a portion of such holder&#146;s Registrable Securities in the Demand Registration (each
such holder including shares of Registrable Securities in such registration, a &#147;<U>Demanding
Holder</U>&#148;) shall so notify the Company within fifteen (15)&nbsp;days after the receipt by the holder
of the notice from the Company. Upon any such request, the Demanding Holders shall be entitled to
have their Registrable Securities included in the Demand Registration, subject to Section&nbsp;2.2.4 and
the provisos set forth in Section&nbsp;3.1.1. The Company shall not be obligated


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<P align="left" style="font-size: 10pt">to effect more than one (1)&nbsp;Demand Registration under this Section&nbsp;2.2.1 in respect of
Registrable Securities.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.2. <U>Effective Registration</U>. A registration will not count as a Demand Registration
until the Registration Statement filed with the Commission with respect to such Demand Registration
has been declared effective and the Company has complied with all of its obligations under this
Agreement with respect thereto; <U>provided</U>, <U>however</U>, that if, after such Registration
Statement has been declared effective, the offering of Registrable Securities pursuant to a Demand
Registration is interfered with by any stop order or injunction of the Commission or any other
governmental agency or court, the Registration Statement with respect to such Demand Registration
will be deemed not to have been declared effective, unless and until, (i)&nbsp;such stop order or
injunction is removed, rescinded or otherwise terminated, and (ii)&nbsp;a majority-in-interest of the
Demanding Holders thereafter elect to continue the offering.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.3. <U>Underwritten Offering</U>. If a majority-in-interest of the Demanding Holders so
elect and such holders so advise the Company as part of their written demand for a Demand
Registration, the offering of such Registrable Securities pursuant to such Demand Registration
shall be in the form of an underwritten offering. In such event, the right of any holder to include
its Registrable Securities in such registration shall be conditioned upon such holder&#146;s
participation in such underwriting and the inclusion of such holder&#146;s Registrable Securities in the
underwriting to the extent provided herein. All Demanding Holders proposing to distribute their
securities through such underwriting shall enter into an underwriting agreement in customary form
with the Underwriter or Underwriters selected for such underwriting by a majority-in-interest of
the holders initiating the Demand Registration, which Underwriter or Underwriters shall be
satisfactory to the Company.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.4. <U>Reduction of Offering</U>. If the managing Underwriter or Underwriters for a
Demand Registration that is to be an underwritten offering advises the Company and the Demanding
Holders in writing that the dollar amount or number of Registrable Securities which the Demanding
Holders desire to sell, taken together with all other shares of Common Stock or other securities
which the Company desires to sell and the shares of Common Stock, if any, as to which registration
has been requested pursuant to written contractual piggy-back registration rights held by other
shareholders of the Company who desire to sell, exceeds the maximum dollar amount or maximum number
of shares that can be sold in such offering without adversely affecting the proposed offering
price, the timing, the distribution method, or the probability of success of such offering (such
maximum dollar amount or maximum number of shares, as applicable, the &#147;<U>Maximum Number of
Shares</U>&#148;), then the Company shall include in such registration: (i)&nbsp;first, the Registrable
Securities as to which Demand Registration has been requested by the Demanding Holders (<U>pro</U>
<U>rata</U> in accordance with the number of Registrable Securities which such Demanding Holder
has requested be included in such registration, regardless of the number of Registrable Securities
held by each Demanding Holder) that can be sold without exceeding the Maximum Number of Shares;
(ii)&nbsp;second, to the extent that the Maximum Number of Shares has not been reached under the
foregoing clause (i), the shares of Common Stock or other securities that the Company desires to
sell that can be sold without exceeding the Maximum Number of Shares; (iii)&nbsp;third, to the extent
that the Maximum Number of Shares has not been reached under the foregoing clauses (i)&nbsp;and (ii),
the shares of Common Stock for the account of other persons that the Company is obligated to
register pursuant to


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<P align="left" style="font-size: 10pt">written contractual arrangements with such persons and that can be sold without exceeding the
Maximum Number of Shares; and (v)&nbsp;fourth, to the extent that the Maximum Number of Shares have not
been reached under the foregoing clauses (i), (ii), and (iii), the shares of Common Stock that
other shareholders desire to sell that can be sold without exceeding the Maximum Number of Shares.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <U>Piggy-Back Registration</U>.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.1. <U>Piggy-Back Rights</U>. If within two (2)&nbsp;years after the Distribution Date, the
Company proposes to file a Registration Statement under the Securities Act with respect to an
offering of equity securities, or securities or other obligations exercisable or exchangeable for,
or convertible into, equity securities, by the Company for its own account or for shareholders of
the Company for their account (or by the Company and by shareholders of the Company including,
without limitation, pursuant to Section&nbsp;2.1), other than a Registration Statement (i)&nbsp;filed in
connection with any employee stock option or other benefit plan, (ii)&nbsp;for an exchange offer or
offering of securities solely to the Company&#146;s existing shareholders, (iii)&nbsp;for an offering of debt
that is convertible into equity securities of the Company, (iv)&nbsp;for a dividend reinvestment plan or
(v)&nbsp;filed in connection with the Company&#146;s initial public offering (other than the Initial
Registration) for equity to be issued by the Company, then the Company shall (x)&nbsp;give written
notice of such proposed filing to the holders of Registrable Securities as soon as practicable but
in no event less than ten (10)&nbsp;days before the anticipated filing date, which notice shall describe
the amount and type of securities to be included in such offering, the intended method(s) of
distribution, and the name of the proposed managing Underwriter or Underwriters, if any, of the
offering, and (y)&nbsp;offer to the holders of Registrable Securities in such notice the opportunity to
register the sale of such number of Registrable Securities as such holders may request in writing
within five (5)&nbsp;days following receipt of such notice (a &#147;<U>Piggy-Back Registration</U>&#148;). The
Company shall cause such Registrable Securities to be included in such registration and will
request the managing Underwriter or Underwriters of a proposed underwritten offering to permit the
Registrable Securities requested to be included in a Piggy-Back Registration to be included on the
same terms and conditions as any similar securities of the Company and to permit the sale or other
disposition of such Registrable Securities in accordance with the intended method(s) of
distribution thereof. All holders of Registrable Securities proposing to distribute their
securities through a Piggy-Back Registration that involves an Underwriter or Underwriters shall
enter into an underwriting agreement in customary form with the Underwriter or Underwriters
selected for such Piggy-Back Registration.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.2. <U>Reduction of Offering</U>. If the managing Underwriter or Underwriters for a
Piggy-Back Registration that is to be an underwritten offering advises the Company and the holders
of Registrable Securities in writing that the dollar amount or number of shares of Common Stock
which the Company desires to sell, taken together with shares of Common Stock, if any, as to which
registration has been demanded pursuant to written contractual arrangements with persons other than
the holders of Registrable Securities hereunder, the Registrable Securities as to which
registration has been requested under this Section&nbsp;2.3, and the shares of Common Stock, if any, as
to which registration has been requested pursuant to the written contractual piggy-back
registration rights of other shareholders of the Company, exceeds the Maximum Number of Shares,
then the Company shall include in any such registration:


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;If the registration is undertaken for the Company&#146;s account: (A)&nbsp;first, the shares of
Common Stock or other securities that the Company desires to sell that can be sold without
exceeding the Maximum Number of Shares; (B)&nbsp;second, to the extent that the Maximum Number of Shares
has not been reached under the foregoing clause (A), the shares of Common Stock, if any, including
the Registrable Securities, as to which registration has been requested pursuant to written
contractual piggy-back registration rights of security holders (pro rata in accordance with the
number of shares of Common Stock which each such person has actually requested to be included in
such registration, regardless of the number of shares of Common Stock with respect to which such
persons have the right to request such inclusion) that can be sold without exceeding the Maximum
Number of Shares; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;If the registration is a &#147;demand&#148; registration undertaken at the demand of persons other
than the holders of Registrable Securities pursuant to written contractual arrangements with such
persons, (A)&nbsp;first, the shares of Common Stock for the account of the demanding persons that can be
sold without exceeding the Maximum Number of Shares; (B)&nbsp;second, to the extent that the Maximum
Number of Shares has not been reached under the foregoing clause (A), the shares of Common Stock or
other securities that the Company desires to sell that can be sold without exceeding the Maximum
Number of Shares; and (C)&nbsp;third, to the extent that the Maximum Number of Shares has not been
reached under the foregoing clauses (A)&nbsp;and (B), the Registrable Securities as to which
registration has been requested under this Section&nbsp;2.3 (<U>pro</U> <U>rata</U> in accordance with
the number of Registrable Securities held by each such holder); and (D)&nbsp;fourth, to the extent that
the Maximum Number of Shares has not been reached under the foregoing clauses (A), (B)&nbsp;and (C), the
shares of Common Stock, if any, as to which registration has been requested pursuant to written
contractual piggy-back registration rights which such other shareholders desire to sell that can be
sold without exceeding the Maximum Number of Shares.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.3. <U>Withdrawal</U>. Any holder of Registrable Securities may elect to withdraw such
holder&#146;s request for inclusion of Registrable Securities in any Piggy-Back Registration by giving
written notice to the Company of such request to withdraw prior to the effectiveness of the
Registration Statement. The Company may also elect to withdraw a registration statement at any
time prior to the effectiveness of the Registration Statement. Notwithstanding any such
withdrawal, the Company shall pay all expenses incurred by the holders of Registrable Securities in
connection with such Piggy-Back Registration as provided in Section&nbsp;3.3.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;REGISTRATION PROCEDURES.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <U>Filings; Information</U>. Whenever the Company is required to effect the registration
of any Registrable Securities pursuant to Section&nbsp;2, the Company shall seek to effect the
registration and sale of such Registrable Securities in accordance with the intended method(s) of
distribution thereof as expeditiously as practicable, and in connection with any such request:



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.1. <U>Filing Registration Statement</U>. The Company shall in an expeditious manner
prepare and file with the Commission a Registration Statement on any form for which the Company
then qualifies or which counsel for the Company shall deem appropriate and which form shall be
available for the sale of all Registrable Securities to be registered


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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt">thereunder in accordance with the intended method(s) of distribution thereof, and shall seek
to cause such Registration Statement to become and remain effective for the period required by
Section&nbsp;3.1.3; <U>provided</U>, <U>however</U>, that the Company shall only be obligated to file
the Demand Registration on a Form S-3 in accordance with the provisions of Rule&nbsp;415 of the
Securities Act, and <U>provided</U> <U>further</U>, <U>however</U>, that the Company shall have
the right to defer the Demand Registration for up to ninety (90)&nbsp;days, and any Piggy-Back
Registration for such period as may be applicable to deferment of any demand registration to which
such Piggy-Back Registration relates, in each case if the Company shall furnish to the holders a
certificate signed by the Chief Executive Officer of the Company stating that, in the good faith
judgment of the Board of Directors of the Company, it would be materially detrimental to the
Company and its shareholders for such Registration Statement to be effected at such time.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.2. <U>Copies</U>. The Company shall, prior to filing a Registration Statement or
prospectus, or any amendment or supplement thereto, furnish without charge to the holders of
Registrable Securities included in such registration copies of such Registration Statement as
proposed to be filed, each amendment and supplement to such Registration Statement (in each case
including all exhibits thereto and documents incorporated by reference therein), the prospectus
included in such Registration Statement (including each preliminary prospectus), and such other
documents as the holders of Registrable Securities included in such registration may request in
order to facilitate the disposition of the Registrable Securities owned by such holders.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.3. <U>Amendments and Supplements</U>. As to the Initial Registration, the Company shall
prepare and file with the Commission such amendments, including post-effective amendments, and
supplements to such Registration Statement and the prospectus used in connection therewith as may
be necessary to keep such Registration Statement effective and in compliance with the provisions of
the Securities Act for a period of ninety (90)&nbsp;days from the date the Registration Statement is
first declared effective by the Commission (the &#147;90-Day Period&#148;) or such shorter period that will
terminate when all Registrable Securities covered by the Registration Statement (a)&nbsp;have been (i)
sold pursuant thereto in accordance with the intended method(s) of distribution set forth in the
Registration Statement, (ii)&nbsp;transferred pursuant to Rule&nbsp;144 under the Securities Act or (iii)
otherwise transferred in a manner that results in the delivery of new securities not subject to the
transfer restrictions under the Securities Act or (b)&nbsp;become salable under Rule&nbsp;144. Immediately
after the 90-Day Period, the Company will file a post-effective amendment to the Initial
Registration for the deregistration of any unsold Registrable Shares. As to the Demand
Registration, the Company shall prepare and file with the Commission such amendments, including
post-effective amendments, and supplements to such Registration Statement and the prospectus used
in connection therewith as may be necessary to keep such Registration Statement effective and in
compliance with the provisions of the Securities Act for a period of two (2)&nbsp;years from the date
the Registration Statement is first declared effective by the Commission or such shorter period (a)
that is determined by the holders of a majority-in-interest of the Registrable Securities held by
the Investors or (b)&nbsp;that will terminate when all Registrable Securities covered by the
Registration Statement have been (i)&nbsp;sold pursuant thereto in accordance with the intended
method(s) of distribution set forth in the Registration Statement or (ii)&nbsp;transferred pursuant to
Rule&nbsp;144 under the Securities Act. As to a Piggy-Back Registration, the Company shall prepare and
file with the Commission such amendments, including post-effective amendments, and supplements to
such Registration Statement and the prospectus used


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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt">in connection therewith as may be necessary to keep such Registration Statement effective and
in compliance with the provisions of the Securities Act for a period that will be determined by the
Company.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.4. <U>Notification</U>. After the filing of a Registration Statement, the Company shall
promptly, and in no event more than two (2)&nbsp;business days after such filing, notify the holders of
Registrable Securities included in such Registration Statement of such filing, and shall further
notify such holders promptly and confirm such advice in writing in all events within two (2)
business days of the occurrence of any of the following: (i)&nbsp;when such Registration Statement
becomes effective; (ii)&nbsp;when any post-effective amendment to such Registration Statement becomes
effective; (iii)&nbsp;the issuance or threatened issuance by the Commission of any stop order (and the
Company shall take all actions required to prevent the entry of such stop order or to remove it if
entered); and (iv)&nbsp;any request by the Commission for any amendment or supplement to such
Registration Statement or any prospectus relating thereto or for additional information or of the
occurrence of an event requiring the preparation of a supplement or amendment to such prospectus so
that, as thereafter delivered to the purchasers of the securities covered by such Registration
Statement, such prospectus will not contain an untrue statement of a material fact or omit to state
any material fact required to be stated therein or necessary to make the statements therein not
misleading, and promptly make available to the holders of Registrable Securities included in such
Registration Statement any such supplement or amendment; except that before filing with the
Commission a Registration Statement or prospectus or any amendment or supplement thereto, including
documents incorporated by reference, the Company shall furnish to the holders of Registrable
Securities included in such Registration Statement copies of all such documents proposed to be
filed sufficiently in advance of filing to provide such holders with a reasonable opportunity to
review such documents and comment thereon, and the Company shall not file any Registration
Statement or prospectus or amendment or supplement thereto, including documents incorporated by
reference, to which such holders shall object.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.5. <U>State Securities Laws Compliance</U>. The Company shall seek to (i)&nbsp;register or
qualify the Registrable Securities covered by the Registration Statement under such securities or
&#147;blue sky&#148; laws of such jurisdictions in the United States as the holders of Registrable Securities
included in such Registration Statement (in light of their intended plan of distribution) may
reasonably request and (ii)&nbsp;take such action necessary to cause such Registrable Securities covered
by the Registration Statement to be registered with or approved by such other governmental
authorities as may be necessary by virtue of the business and operations of the Company and do any
and all other acts and things that may be necessary or advisable to enable the holders of
Registrable Securities included in such Registration Statement to consummate the disposition of
such Registrable Securities in such jurisdictions; <U>provided</U>, <U>however</U>, that the
Company shall not be required to qualify generally to do business in any jurisdiction where it
would not otherwise be required to qualify but for this paragraph (e)&nbsp;or subject itself to taxation
in any such jurisdiction.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.6. <U>Records</U>. The Company shall make available for inspection by the holders of
Registrable Securities included in such Registration Statement, any Underwriter participating in
any disposition pursuant to such registration statement and any attorney, accountant or other
professional retained by any holder of Registrable Securities included in such


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<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">Registration Statement or any Underwriter, all financial and other records, pertinent
corporate documents and properties of the Company, as shall be necessary to enable them to exercise
their due diligence responsibility, and cause the Company&#146;s officers, directors and employees to
supply all information requested by any of them in connection with such Registration Statement.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.7. <U>Earnings Statement</U>. The Company shall comply with all applicable rules and
regulations of the Commission and the Securities Act, and make available to its shareholders, as
soon as practicable, an earnings statement covering a period of twelve (12)&nbsp;months, beginning
within three (3)&nbsp;months after the effective date of the registration statement, which earnings
statement shall satisfy the provisions of Section 11(a) of the Securities Act and Rule&nbsp;158
thereunder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <U>Obligation to Suspend Distribution</U>. Upon receipt of any notice from the Company
of the happening of any event of the kind described in Section&nbsp;3.1.4(iv), each holder of
Registrable Securities included in any registration shall immediately discontinue disposition of
such Registrable Securities pursuant to the Registration Statement covering such Registrable
Securities until such holder receives the supplemented or amended prospectus contemplated by
Section&nbsp;3.1.4(iv) and, if so directed by the Company, each such holder will deliver to the Company
all copies, other than permanent file copies then in such holder&#146;s possession, of the most recent
prospectus covering such Registrable Securities at the time of receipt of such notice.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <U>Registration Expenses</U>. The Company shall bear all of its costs and expenses
incurred in connection with the Initial Registration pursuant to Section&nbsp;2.1, the Demand
Registration pursuant to Section&nbsp;2.2 and any Piggy-Back Registration pursuant to Section&nbsp;2.3, and
all expenses incurred in performing or complying with its other obligations under this Agreement,
whether or not the Registration Statement becomes effective, including, without limitation: (i)&nbsp;all
registration and filing fees; (ii)&nbsp;fees and expenses of compliance with securities or &#147;blue sky&#148;
laws (including fees and disbursements of counsel in connection with blue sky qualifications of the
Registrable Securities); (iii)&nbsp;printing expenses; (iv)&nbsp;the Company&#146;s internal expenses (including,
without limitation, all salaries and expenses of its officers and employees); and (v)&nbsp;fees and
disbursements of counsel for the Company and fees and expenses for independent certified public
accountants retained by the Company. The Company shall have no obligation to pay any costs and
expenses of the holders of the Registrable Securities, including, without limitation, fees for
counsel and other parties representing such holders and any underwriting discounts or selling
commissions attributable to the Registrable Securities being sold by the holders thereof, which
fees and underwriting discounts or selling commissions shall be borne by such holders.
Additionally, in an underwritten offering, all selling shareholders and the Company shall bear the
expenses of the underwriter pro rata in proportion to the respective amount of shares each is
selling in such offering.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 <U>Information</U>. The holders of Registrable Securities shall provide such information
as may reasonably be requested by the Company, or the managing Underwriter, if any, in connection
with the preparation of any Registration Statement, including amendments and supplements thereto,
in order to effect the registration of any Registrable Securities under the Securities Act pursuant
to Section&nbsp;2 and in connection with the Company&#146;s obligation to comply with federal and applicable
state securities laws.



<P align="center" style="font-size: 10pt">10
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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;INDEMNIFICATION AND CONTRIBUTION.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <U>Indemnification by the Company</U>. The Company agrees to indemnify and hold harmless
each Investor identified in the Registration Statement as a selling security holder of Registrable
Securities and each person, if any, who controls such Investor (within the meaning of Section&nbsp;15 of
the Securities Act or Section&nbsp;20 of the Exchange Act), from and against any expenses, losses,
judgments, claims, damages or liabilities, whether joint or several, arising out of or based upon
any untrue statement (or allegedly untrue statement) of a material fact contained in any
Registration Statement under which the sale of such Registrable Securities was registered under the
Securities Act, any preliminary prospectus, final prospectus or summary prospectus contained in the
Registration Statement, or any amendment or supplement to such Registration Statement, or arising
out of or based upon any omission (or alleged omission) to state a material fact required to be
stated therein or necessary to make the statements therein not misleading; <U>provided</U>,
<U>however</U>, that the Company will not be liable in any such case to the extent that any such
expense, loss, claim, damage or liability arises out of or is based upon any untrue statement or
allegedly untrue statement or omission or alleged omission made in such Registration Statement,
preliminary prospectus, final prospectus, or summary prospectus, or any such amendment or
supplement, in reliance upon and in conformity with information furnished to the Company, in
writing, by such Investor expressly for use therein.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <U>Indemnification by the Investors</U>. Each Investor agrees, as a consequence of the
inclusion of any of its Registrable Securities in a Registration Statement to indemnify and hold
harmless the Company, its directors and officers and each person, if any, who controls the Company
(within the meaning of either Section&nbsp;15 of the Securities Act or Section&nbsp;20 of the Exchange Act),
against any losses, claims, judgments, damages or liabilities, whether joint or several, insofar as
such losses, claims, judgments, damages or liabilities (or actions in respect thereof) arise out of
or are based upon any untrue statement or allegedly untrue statement of a material fact contained
in any Registration Statement under which the sale of such Registrable Securities was registered
under the Securities Act, any preliminary prospectus, final prospectus or summary prospectus
contained in the Registration Statement, or any amendment or supplement to the Registration
Statement, or arise out of or are based upon any omission or the alleged omission to state a
material fact required to be stated therein or necessary to make the statement therein not
misleading, if the statement or omission was made in reliance upon and in conformity with
information furnished in writing to the Company by such Investor expressly for use therein, and
shall reimburse the Company, its directors and officers, and each such controlling person for any
legal or other expenses reasonably incurred by any of them in connection with investigation or
defending any such loss, claim, damage, liability or action. Each Investor&#146;s indemnification
obligations hereunder shall be several and not joint and shall be limited to the amount of any net
proceeds actually received by such Investor.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <U>Conduct of Indemnification Proceedings</U>. Promptly after receipt by any person of
any notice of any loss, claim, damage or liability or any action in respect of which indemnity may
be sought pursuant to Section&nbsp;4.1 or 4.2, such person (the &#147;<U>Indemnified Party</U>&#148;) shall, if a
claim in respect thereof is to be made against any other person for indemnification hereunder,
notify such other person (the &#147;<U>Indemnifying Party</U>&#148;) in writing of the loss, claim,
judgment, damage, liability or action; <U>provided</U>, <U>however</U>, that the failure by the
Indemnified Party to notify the Indemnifying Party shall not relieve the Indemnifying Party from
any liability

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<P align="left" style="font-size: 10pt">which the Indemnifying Party may have to such Indemnified Party hereunder, except and solely
to the extent the Indemnifying Party is actually prejudiced by such failure. If the Indemnified
Party is seeking indemnification with respect to any claim or action brought against the
Indemnified Party, then the Indemnifying Party shall be entitled to participate in such claim or
action, and, to the extent that it wishes, jointly with all other Indemnifying Parties, to assume
control of the defense thereof with counsel satisfactory to the Indemnified Party. After notice
from the Indemnifying Party to the Indemnified Party of its election to assume control of the
defense of such claim or action, the Indemnifying Party shall not be liable to the Indemnified
Party for any legal or other expenses subsequently incurred by the Indemnified Party in connection
with the defense thereof other than reasonable costs of investigation; <U>provided</U>,
<U>however</U>, that in any action in which both the Indemnified Party and the Indemnifying Party
are named as defendants, the Indemnified Party shall have the right to employ separate counsel (but
no more than one such separate counsel) to represent the Indemnified Party and its controlling
persons who may be subject to liability arising out of any claim in respect of which indemnity may
be sought by the Indemnified Party against the Indemnifying Party, with the fees and expenses of
such counsel to be paid by such Indemnifying Party if, based upon the written opinion of counsel of
such Indemnified Party, representation of both parties by the same counsel would be inappropriate
due to actual or potential differing interests between them. No Indemnifying Party shall, without
the prior written consent of the Indemnified Party, consent to entry of judgment or effect any
settlement of any claim or pending or threatened proceeding in respect of which the Indemnified
Party is or could have been a party and indemnity could have been sought hereunder by such
Indemnified Party, unless such judgment or settlement includes an unconditional release of such
Indemnified Party from all liability arising out of such claim or proceeding.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <U>Contribution</U>.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.1. If the indemnification provided for in the foregoing Sections&nbsp;4.1, 4.2 and 4.3 is
unavailable to any Indemnified Party in respect of any loss, claim, damage, liability or action
referred to herein, then each such Indemnifying Party, in lieu of indemnifying such Indemnified
Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such
loss, claim, damage, liability or action in such proportion as is appropriate to reflect the
relative fault of the Indemnified Parties and the Indemnifying Parties in connection with the
actions or omissions which resulted in such loss, claim, damage, liability or action, as well as
any other relevant equitable considerations. The relative fault of any Indemnified Party and any
Indemnifying Party shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission or alleged omission to state a material
fact relates to information supplied by such Indemnified Party or such Indemnifying Party and the
parties&#146; relative intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.2. The parties hereto agree that it would not be just and equitable if contribution
pursuant to this Section&nbsp;4.4 were determined by <U>pro</U> <U>rata</U> allocation or by any other
method of allocation which does not take account of the equitable considerations referred to in the
immediately preceding Section&nbsp;4.4.1. The amount paid or payable by an Indemnified Party as a
result of any loss, claim, damage, liability or action referred to in the immediately preceding
paragraph shall be deemed to include, subject to the limitations set forth above, any legal or
other


<P align="center" style="font-size: 10pt">12
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<P align="left" style="font-size: 10pt">expenses incurred by such Indemnified Party in connection with investigating or defending any
such action or claim. Notwithstanding the provisions of this Section&nbsp;4.4, no holder of Registrable
Securities shall be required to contribute any amount in excess of the dollar amount of the net
proceeds (after payment of any underwriting fees, discounts, commissions or taxes) actually
received by such holder from the sale of Registrable Securities which gave rise to such
contribution obligation. No person guilty of fraudulent misrepresentation (within the meaning of
Section&nbsp;11(f) of the Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;MISCELLANEOUS.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <U>Other Registration Rights</U>. The Company represents and warrants that no person,
other than a holder of the Registrable Securities, has any right to require the Company to register
any shares of the Company&#146;s capital stock for sale or to include shares of the Company&#146;s capital
stock in any registration filed by the Company for the sale of shares of capital stock for its own
account or for the account of any other person (a &#147;Registration Right&#148;). Notwithstanding anything
to the contrary, the Company may grant anytime after the date hereof one or more Registration
Rights.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <U>Assignment; No Third Party Beneficiaries</U>. This Agreement and the rights, duties
and obligations of the Company hereunder may not be assigned or delegated by the Company in whole
or in part. This Agreement and the rights, duties and obligations of the holders of Registrable
Securities hereunder may not be assigned or delegated by such holder of Registrable Securities in
whole or in part without the consent of the Company which consent may be withheld in the Company&#146;s
sole discretion. Any such permitted assignee shall be deemed an Investor for purposes of the
rights, duties and obligations set forth in this Agreement. In the event Aretex transfers any
Registrable Securities to any of its Affiliates, such Affiliate shall be deemed to be an Investor
for all purposes under this Agreement and any shares of Common Stock acquired by such Affiliate
upon exercise of Subscription Rights shall be deemed to be Registrable Securities. This Agreement
is not intended to confer any rights or benefits on any persons that are not party hereto other
than as expressly set forth in Article&nbsp;4.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <U>Notices</U>. All notices, demands, requests, consents, approvals or other
communications (collectively, &#147;<U>Notices</U>&#148;) required or permitted to be given hereunder or
which are given with respect to this Agreement shall be in writing and shall be personally served,
delivered by reputable air courier service with charges prepaid, or transmitted by hand delivery,
telegram, telex or facsimile, addressed as set forth below, or to such other address as such party
shall have specified most recently by written notice. Notice shall be deemed given on the date of
service or transmission if personally served or transmitted by telegram, telex or facsimile;
<U>provided</U>, that if such service or transmission is not on a business day or is after normal
business hours, then such notice shall be deemed given on the next business day. Notice otherwise
sent as provided herein shall be deemed given on the next business day following timely delivery of
such notice to a reputable air courier service with an order for next-day delivery.


<P align="left" style="font-size: 10pt; margin-left: 9%">To the Company:


<P align="center" style="font-size: 10pt">13
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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt; margin-left: 9%">WS Textile Co., Inc.

<P align="left" style="font-size: 10pt; margin-left: 9%">Attention:

<P align="left" style="font-size: 10pt; margin-left: 9%">with a copy to:

<P align="left" style="font-size: 10pt; margin-left: 9%">Sonnenschein Nath &#038; Rosenthal LLP<BR>
1221 Avenue of the Americas<BR>
New York, New York 10020<BR>
Attn:

<P align="left" style="font-size: 10pt; margin-left: 9%">To an Investor, to:

<P align="left" style="font-size: 10pt; margin-left: 9%">with a copy to:

<P align="left" style="font-size: 10pt; margin-left: 9%">Attention:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 <U>Severability</U>. This Agreement shall be deemed severable, and the invalidity or
unenforceability of any term or provision hereof shall not affect the validity or enforceability of
this Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid
or unenforceable term or provision, the parties hereto intend that there shall be added as a part
of this Agreement a provision as similar in terms to such invalid or unenforceable provision as may
be possible and be valid and enforceable.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 <U>Counterparts</U>. This Agreement may be executed in multiple counterparts, each of
which shall be deemed an original, and all of which taken together shall constitute one and the
same instrument.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 <U>Entire Agreement</U>. This Agreement (including all agreements entered into pursuant
hereto and all certificates and instruments delivered pursuant hereto and thereto)



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<P align="left" style="font-size: 10pt">constitute the entire agreement of the parties with respect to the subject matter hereof and
supersede all prior and contemporaneous agreements, representations, understandings, negotiations
and discussions between the parties, whether oral or written.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 <U>Modifications and Amendments</U>. No amendment, modification or termination of this
Agreement shall be binding upon any party unless executed in writing by such party and the Company.
No amendment, modification or termination of this Agreement shall be binding on all the parties
unless executed in writing by the Company, the Related Initial Holders and a majority-in-interested
of the Non-Related Initial Holders that beneficially own Registrable Securities at the time of such
agreement.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8 <U>Titles and Headings</U>. Titles and headings of sections of this Agreement are for
convenience only and shall not affect the construction of any provision of this Agreement.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.9 <U>Waivers and Extensions</U>. Any party to this Agreement may waive any right, breach
or default which such party has the right to waive, <U>provided</U> that such waiver will not be
effective against the waiving party unless it is in writing, is signed by such party, and
specifically refers to this Agreement. Waivers may be made in advance or after the right waived
has arisen or the breach or default waived has occurred. Any waiver may be conditional. No waiver
of any breach of any agreement or provision herein contained shall be deemed a waiver of any
preceding or succeeding breach thereof nor of any other agreement or provision herein contained.
No waiver or extension of time for performance of any obligations or acts shall be deemed a waiver
or extension of the time for performance of any other obligations or acts.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10 <U>Remedies Cumulative</U>. In the event that the Company fails to observe or perform
any covenant or agreement to be observed or performed under this Agreement, the Investor or any
other holder of Registrable Securities may proceed to protect and enforce its rights by suit in
equity or action at law upon the posting of a sufficient bond, whether for specific performance of
any term contained in this Agreement or for an injunction against the breach of any such term or in
aid of the exercise of any power granted in this Agreement or to enforce any other legal or
equitable right, or to take any one or more of such actions, without being required to post a bond.
None of the rights, powers or remedies conferred under this Agreement shall be mutually exclusive,
and each such right, power or remedy shall be cumulative and in addition to any other right, power
or remedy, whether conferred by this Agreement or now or hereafter available at law, in equity, by
statute or otherwise.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.11 <U>Governing Law</U>. This Agreement shall be governed by, interpreted under, and
construed in accordance with the internal laws of the State of New York applicable to agreements
made and to be performed within the State of New York, without giving effect to any choice-of-law
provisions thereof that would compel the application of the substantive laws of any other
jurisdiction.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.12 <U>Waiver of Trial by Jury</U>. Each party hereby irrevocably and unconditionally waives
the right to a trial by jury in any action, suit, counterclaim or other proceeding (whether based
on contract, tort or otherwise) arising out of, connected with or relating to this Agreement, the
transactions contemplated hereby, or the actions of the Investor in the negotiation,
administration, performance or enforcement hereof.



<P align="center" style="font-size: 10pt">15
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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>IN WITNESS WHEREOF</B>, the parties have caused this Registration Rights Agreement to be executed
and delivered by their duly authorized representatives as of the date first written above.


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>WS Textile Co., Inc.</B><BR>a Delaware corporation<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<P align="left" style="font-size: 10pt"><B>INVESTORS:</B>



<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>&#091;</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#093;</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>&#091;</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#093;</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>&#091;</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#093;</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt">16
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="center" style="font-size: 10pt"><B>Exhibit&nbsp;C</B>



<P align="center" style="font-size: 10pt"><B>Terms and Conditions of Subscription Rights</B>



<P align="left" style="font-size: 10pt"><I>Any term used in this Exhibit&nbsp;C that is not defined herein shall have the meaning ascribed to such
term in the Asset Purchase Agreement, dated as of June&nbsp;23, 2005, by and among Parent, Holdco One,
Holdco Two, Purchaser, the Company and each of the Subsidiaries (the &#147;Agreement&#148;).</I>



<P align="left" style="font-size: 10pt">Pursuant to Section&nbsp;3.3(c) of the Agreement, the Purchaser shall deliver to the recipients
contemplated thereby (the &#147;Recipients&#148;) the Subscription Rights.



<P align="left" style="font-size: 10pt">Each Subscription Right shall entitle the holder thereof (a &#147;Holder&#148;) to subscribe for one (1)
share of Parent Common Stock at an exercise price of $8.772 per share (the &#147;Exercise Price&#148;). If a
stock dividend or other distribution, recapitalization, forward or reverse stock split,
subdivision, consolidation or reduction of capital, reorganization, merger, consolidation, scheme
or arrangement, split-up, spin-off or combination, or similar transaction or event affects the
number of shares of Parent Common Stock issuable upon exercise of the Subscription Rights, the
Parent will make an equitable change or adjustment as it deems appropriate in the number and kind
of securities subject to or to be issued in connection with the exercise of the Subscription Rights
and the exercise price of the Subscription Rights. No fractional shares of Parent Common Stock
will be issued upon the exercise of Subscription Rights. When any exercise of Subscription Rights
would result in the issuance of a number of shares of Parent Common Stock that is not a whole
number, the actual number of shares will be rounded down to the next lower whole number with no
further payment or other distribution therefor.



<P align="left" style="font-size: 10pt">The Subscription Rights shall become exercisable and transferable on the effective date of the
registration statement for the Initial Registration of Registrable Shares as described in Exhibit&nbsp;B
to the Agreement (the &#147;Commencement Date&#148;) and shall expire at 5:00 p.m. New York City time on the
later of one hundred twenty (120)&nbsp;calendar days after the Closing and thirty (30)&nbsp;calendar days
after (and not including) the Commencement Date (the &#147;Expiration Date&#148;). During such period, a
Holder may exercise all or any portion of its Subscription Rights. At the Expiration Date,
unexercised Subscription Rights shall terminate and be null and void and the Parent shall not be
obligated to honor any such purported exercise received by the Parent or its designee after the
Expiration Date, regardless of when the documents relating to such exercise were sent.



<P align="left" style="font-size: 10pt">Prior to the Commencement Date, the Subscription Rights of any such Recipient shall not be
exercisable or transferable. Any such exercise or attempted exercise or transfer or attempted
transfer by a Recipient shall be null and void and the Parent shall not treat any purported
transferee as the holder of any Subscription Rights. Notwithstanding the foregoing, the
Subscription Rights that are delivered to Aretex shall be exercisable on or after the date of
delivery and transferable on or after the date of delivery to its Affiliates and shall be likewise
exercisable and transferable by such Affiliates.



<P align="left" style="font-size: 10pt">In order to exercise Subscription Rights, each Holder must: (a)&nbsp;return a duly completed
subscription form (the &#147;Subscription Form&#148;) to the Parent or its designee so that such form is
actually received by the Parent or its designee on or before the Expiration Date; and (b)&nbsp;pay to





<P align="center" style="font-size: 10pt">&nbsp;
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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">the Parent or its designee on or before the Expiration Date the aggregate Exercise Price for all of the Parent Common Stock purchased pursuant to the Holder&#146;s exercise of the Subscription Rights in
accordance with the wire instructions set forth on the Subscription Form or by bank or cashier&#146;s
check delivered to the Parent or its designee along with the Subscription Form. If, on or prior to
the Expiration Date, the Parent or its designee for any reason does not receive a duly completed
Subscription Form and immediately available funds in an amount equal to the aggregate Exercise
Price, the Subscription Rights shall be deemed to have been unexercised and to terminate and be
null and void.



<P align="left" style="font-size: 10pt">The Parent shall adopt such detailed procedures as is necessary to efficiently administer the
exercise of the Subscription Rights and shall prepare documents that reflect the terms herein and
such other terms as the Parent shall determine to be appropriate in the implementation hereof.



<P align="left" style="font-size: 10pt">The Subscription Rights shall have no rights, powers or privileges other than as expressly set
forth herein, and in particular the Subscription Rights shall have no voting rights, dividend
rights, conversion rights, preemption rights, liquidation rights or other rights of a shareholder.



<P align="left" style="font-size: 10pt">The Subscription Rights will be exercisable for an aggregate exercise price of $125&nbsp;million. Upon
the exercise of Subscription Rights (other than the Subscription Rights delivered to Aretex), the
proceeds thereof shall be applied to the repayment of the Loan made to Parent as described in the
Equity Commitment Agreement. Assuming all of the Subscription Rights are exercised, Parent will
issue 14,250,000 shares of Parent Common Stock to the holders thereof.



<P align="left" style="font-size: 10pt">All questions concerning the timeliness, viability, form and eligibility of any exercise of
Subscription Rights shall be determined by the Parent whose determination shall be final and
binding. The Parent may waive in its sole discretion any defect or irregularity, or permit a defect
or irregularity to be corrected within such times as it may determine, or reject the purported
exercise of any Subscription Rights that the Parent has determined to have failed to comply with
the applicable requirements.



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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="center" style="font-size: 10pt"><B>Exhibit&nbsp;D</B>



<P align="center" style="font-size: 10pt"><B>WS TEXTILE CO., INC.</B>



<P align="center" style="font-size: 10pt"><U><B>SUBSCRIPTION AGREEMENT</B></U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned (&#147;Subscriber&#148;) hereby tenders this subscription to WS Textile Co., Inc. (the
&#147;Company&#148;) for the acquisition of the number of Parent Shares and/or Subscription Rights (the
&#147;Securities&#148;) set forth below on the Subscriber Signature Page. Terms used herein and not
otherwise defined herein shall have the meanings prescribed to them in the Asset Purchase Agreement
by and among the Company, New Textile One, Inc., New Textile Two, Inc., Textile Co., Inc.,
WestPoint Stevens Inc., WestPoint Stevens Inc. I, WestPoint Stevens Stores Inc. and J.P. Stevens
Enterprises, Inc., dated as of June&nbsp;23, 2005 (the &#147;Asset Purchase Agreement&#148;).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;The Subscriber acknowledges and understands that this Subscription Agreement (the
&#147;Agreement&#148;) shall not be binding on the Company until the terms and conditions set forth in the
Asset Purchase Agreement are satisfied and the Company executes a counterpart hereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;The Subscriber hereby represents, warrants, covenants and agrees as follows:



<P align="left" style="margin-left:2%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Subscriber is an accredited investor, as defined in Regulation&nbsp;D promulgated
under the Securities Act of 1933, as amended (the &#147;Securities Act&#148;), as established by the
Subscriber&#146;s responses to the Accredited Investor Certification attached to this Agreement
as <U>Annex A</U>.



<P align="left" style="margin-left:2%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Securities are being acquired by the Subscriber for the account of the
Subscriber for investment purposes only, within the meaning of the Securities Act, with no
intention of offering, selling or assigning any participation or interest therein directly
or indirectly, and not with a view to the distribution thereof other than as permitted by
the Registration Rights Agreement. No one other than the Subscriber has any right to
acquire the Securities.



<P align="left" style="margin-left:2%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Subscriber&#146;s financial condition is such that the Subscriber has no need for
any liquidity in its investment in the Company and is able to bear the risk of holding the
Securities for an indefinite period of time and the risk of loss of its entire investment in
the Company. The Subscriber (i)&nbsp;is a financial institution or other organization and its
representatives are capable of evaluating the merits and risks of acquiring the Securities,
or (ii)&nbsp;has knowledge and experience (or the Subscriber has utilized the services of a
representative and together they have knowledge and experience) in financial and business
matters to be capable of evaluating the merits and risks of holding the Securities and to
make an informed decision relating thereto.




<P align="left" style="margin-left:2%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Subscriber acknowledges and understands that:



<P align="left" style="margin-left:4%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) An investment in the Company is speculative and involves significant risks.


<P align="center" style="font-size: 10pt">&nbsp;
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<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="margin-left:4%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) There are substantial restrictions on the transferability of the Securities, which
restrictions are set forth in the Asset Purchase Agreement, including Exhibit&nbsp;C thereto.
There is currently no public market for the Securities and none may develop. Accordingly,
the Subscriber may not be able to liquidate his investment in the Company, which investment
the Subscriber may have to hold until the Company is liquidated.



<P align="left" style="margin-left:4%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <B>Each Subscriber acknowledges that the Securities have not been registered under
the Securities Act or under the securities or &#147;blue sky&#148; laws of any jurisdiction, by reason
of specific exemptions thereunder relating to the limited availability of the offering. The
Securities cannot be sold, transferred or otherwise disposed of to any person or entity
unless registered under the Securities Act and any other applicable securities or &#147;blue sky&#148;
laws, if such registration is required, or pursuant to an exemption therefrom applicable to
such transaction.</B>



<P align="left" style="margin-left:2%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If the Subscriber is a corporation, partnership, trust or other entity, (i)&nbsp;the
Subscriber has full right and power to make the investment applied for pursuant to this
Agreement, (ii)&nbsp;all necessary actions of the entity have been taken to authorize the
purchase of the Shares hereunder, and (iii)&nbsp;the person executing this Agreement on behalf of
the entity is duly authorized and empowered to bind the entity to all of the terms hereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;The Subscriber agrees to the imprinting, so long as is required under applicable law, of a
legend on each of the certificates representing the Securities and on each of the certificates
representing the shares of Common Stock that are issued upon exercise of the Subscription Rights in
the following form:



<P align="left" style="margin-left:4%; font-size: 10pt">THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
&#147;SECURITIES ACT&#148;), AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR
HYPOTHECATED UNLESS (I)&nbsp;THERE IS AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT COVERING SUCH SECURITIES, (II)&nbsp;THE SALE IS
MADE IN ACCORDANCE WITH RULE 144 UNDER THE SECURITIES ACT, OR (III)
THE COMPANY RECEIVES AN OPINION OF COUNSEL FOR THE HOLDER OF THESE
SECURITIES REASONABLY SATISFACTORY TO THE COMPANY STATING THAT SUCH
SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE
REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF THE SECURITIES
ACT.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;The Subscriber hereby agrees to provide such information and to execute and deliver such
documents as may reasonably be necessary to comply with any and all laws, rules and regulations to
which the Company is subject.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;The representations, warranties covenants and agreements of the Subscriber contained in
this Agreement will survive the execution hereof and the distribution of the Securities to the
Subscriber.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;Neither this Agreement nor any provision hereof shall be waived, modified, discharged, or
terminated except by an instrument in writing signed by the party against whom any such waiver,
modification, discharge, or termination is sought.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;References herein to a person or entity in either gender include the other gender or no
gender, as appropriate.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;This Agreement may be executed in any number of counterparts, each of which shall be deemed
to be an original and all of which taken together shall be deemed to constitute one and the same
agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;This Agreement and its validity, construction and performance shall be governed in all
respects by the laws of the State of New York.


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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt"><B>SUBSCRIBER SIGNATURE PAGE</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="26%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="69%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
<HR size="1" noshade color="#000000">
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">Number of Parent Shares</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">Number of Subscription Rights</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><U><B>FOR INDIVIDUAL SUBSCRIBERS</B></U>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;Signature of subscriber
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;Address of subscriber</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;Name of Subscriber
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;Social Security Number</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#091;please print&#093;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><U><B>FOR PARTNERSHIP, CORPORATION OR TRUST SUBSCRIBERS</B></U>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;Print exact name of Corporation,
Partnership or Trust
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;Address of Subscriber</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="37%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="18%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Authorized Signatory
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;Tax Identification Number</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">&nbsp;Print Name and Title</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="center" style="font-size: 10pt"><B>COMPANY SIGNATURE PAGE</B>



<P align="left" style="font-size: 10pt">The foregoing Subscription Agreement is hereby accepted as of ____________, 2005


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="60%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="37%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="37%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left"><B>WS TEXTILE CO., INC.</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="right" style="font-size: 10pt"><B>SCHEDULE A</B>



<P align="center" style="font-size: 10pt"><B>ACCREDITED INVESTOR CERTIFICATION</B>



<P align="center" style="font-size: 10pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>



<P align="center" style="font-size: 10pt"><B><I>Please indicate the basis on which you would be deemed<BR>
an &#147;accredited investor&#148; by initialing the appropriate line provided below:</I></B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Accredited investor&#148; shall mean any person who comes within any of the following categories,
or who the issuer reasonably believes comes within any of the following categories, at the time of
the sale of the securities to that person:

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="86%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(1) Any bank as defined in section 3(a)(2) of the Securities Act, or
any savings and loan association or other institution as defined in section
3(a)(5)(A) of the Securities Act whether in its individual or fiduciary
capacity; any broker or dealer registered pursuant to section 15 of the
Securities Exchange Act of 1934; any insurance company as defined in section
2(13) of the Securities Act; any investment company registered under the
Investment Company Act of 1940 or a business development company as defined
in section 2(a)(48) of that Act; any Small Business Investment Company
licensed by the U.S. Small Business Administration under section 301(c) or
(d)&nbsp;of the Small Business Investment Act of 1958; any plan established and
maintained by a state, its political subdivisions, or any agency or
instrumentality of a state or its political subdivisions, for the benefit of
its employees, if such plan has total assets in excess of $5,000,000; any
employee benefit plan within the meaning of the Employee Retirement Income
Security Act of 1974 if the investment decision is made by a plan fiduciary,
as defined in section 3(21) of such Act, which is either a bank, savings and
loan association, insurance company, or registered investment adviser, or if
the employee benefit plan has total assets in excess of $5,000,000 or, if a
self-directed plan, with investment decisions made solely by persons that
are accredited investors;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(2) Any private business development company as defined in section
202(a)(22) of the Investment Advisers Act of 1940;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(3) Any organization described in section 501(c)(3) of the Internal
Revenue Code, corporation, Massachusetts or similar business trust, or
partnership, not formed for the specific purpose of acquiring the securities
offered, with total assets in excess of $5,000,000;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(4) Any director, executive officer, or general partner of the issuer
of the securities being offered or sold, or any director, executive officer,
or general partner of a general partner of that issuer;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
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</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="86%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(5) Any natural person whose individual net worth, or joint net worth
with that person&#146;s spouse, at the time of his purchase exceeds $1,000,000;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(6) Any natural person who had an individual income in excess of
$200,000 in each of the two most recent years or joint income with that
person&#146;s spouse in excess of $300,000 in each of those years and has a
reasonable expectation of reaching the same income level in the current
year;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(7) Any trust, with total assets in excess of $5,000,000, not formed
for the specific purpose of acquiring the securities offered, whose purchase
is directed by a sophisticated person as described in &#167;230.506(b)(2)(ii);
and</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(8) Any entity in which all of the equity owners are accredited
investors.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
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</TABLE>
</DIV>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned Subscriber represents and agrees that this Accredited Investor Certification
is complete and accurate and may be relied upon by the Company and agrees to notify the Company
immediately of any change in the information provided herein.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the undersigned or has executed this Accredited Investor Certification on
this &#95;&#95;&#95;day of &#95;&#95;&#95;, 2005.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="60%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="37%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">SUBSCRIBER</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
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</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="center" style="font-size: 10pt"><B>EXHIBIT E</B>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If the equity value of the Parent is $800&nbsp;million ($26.67/share), then</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#176;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the value of the 5,250,000 shares of Parent Common Stock owned by AREH
will be $140&nbsp;million (17.5% of $800&nbsp;million, or (800,000,000/30,000,000) x
5,250,000),</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#176;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the value of the 10,500,000 Parent Shares, all of which will be issued
to the First Lien Lenders, will be $280&nbsp;million (35% of $800&nbsp;million, or
(800,000,000/30,000,000) x 10,500,000), and 4,198,845 of such Parent Shares will be
issued to Aretex; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#176;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the value of the Subscription Rights will be $255&nbsp;million (47.5% of
$800&nbsp;million less $125&nbsp;million, or ((800,000,000/30,000,000) x 14,250,000) -
125,000,000), of which $200&nbsp;million, or subscription rights to purchase 11,176,471
shares of Parent Common Stock, will be issued to the First Lien Lenders (and
4,469,359 of such Subscription Rights will be issued to Aretex) and of which $55
million, or subscription rights to purchase 3,073,529 shares of Parent Common
Stock, will be issued to the Second Lien Lenders (and 1,574,016 of such
Subscription Rights will be issued to Aretex).</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The above calculations assume that the debt owed to the First Lien Lenders is $480&nbsp;million.
The actual debt owed to the First Lien Lenders is approximately $483&nbsp;million and appropriate
adjustments will be necessary to the final calculations. The above calculations also would be
adjusted as necessary to reflect the actual amount of debt held by the First Lien Lenders and the
Second Lien Lenders.


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt"><B>EXHIBIT F</B>



<P align="center" style="font-size: 10pt"><U><B>Bill of Sale</B></U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reference is made to that certain Asset Purchase Agreement, dated as of June&nbsp;23, 2005, (the
&#147;APA&#148;) by and among WestPoint Stevens Inc. (the &#147;Company&#148;) and WestPoint Stevens Inc. I, and
WestPoint Stevens Stores Inc., (the Company and such entities collectively the &#147;Assignors&#148;), J.P.
Stevens Enterprises Inc., WS Textile Co., Inc., New Textile One, Inc., New Textile Two, Inc., and
Textile Co., Inc. Defined terms used but not otherwise defined in this Bill of Sale shall have the
meaning ascribed to them in the APA


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In consideration of the items being provided to Assignors or their creditors under the APA,
the Assignors hereby absolutely assign, transfer and convey to Textile Co., Inc. (&#147;Assignee&#148;) all
of Assignors&#146; right, title and interest, free and clear of claims, interests, liens and
encumbrances to the extent provided in the &#091;USE EXACT FINAL TITLE Sale Order&#093;, dated June &#95;&#95;&#95;, 2005,
in and to all of the Purchased Assets, other than Excluded Assets.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Executed and Delivered this &#95;&#95;&#95;day of &#95;&#95;&#95;, 2005.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="60%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="38%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="38%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left">WESTPOINT STEVENS INC.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left">WESTPOINT STEVENS INC. I</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left">WESTPOINT STEVENS STORES, INC.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="center" style="font-size: 10pt"><B>EXHIBIT G</B>



<P align="center" style="font-size: 10pt"><U>Assumption and Assignment Agreement</U><BR>
(Assumed Liabilities)



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reference is made to that certain Asset Purchase Agreement, dated as of June&nbsp;23, 2005 (the
&#147;APA&#148;) by and among WestPoint Stevens Inc. (the &#147;Company&#148;) and WestPoint Stevens Inc. I, and
WestPoint Stevens Stores Inc. (the Company and such entities collectively the &#147;Assignors&#148;), J.P.
Stevens Enterprises Inc., WS Textile Co., Inc., New Textile One, Inc., New Textile Two, Inc. and
Textile Co., Inc. Defined terms used but not otherwise defined herein shall have the meaning
ascribed to them in the APA.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In consideration of the items being provided to Assignors or their creditors under the APA and
pursuant to that certain &#091;USE EXACT FINAL TITLE OF SALE ORDER AND ANY SEPARATE ORDER FIXING CURE
COST AMOUNTS&#093;, dated &#95;&#95;&#95;, 2005 (collectively, the &#147;Order&#148;), Assignors hereby absolutely
assign, transfer and convey to Textile Co., Inc. (&#147;Assignee&#148;) and Assignee hereby assumes the
Assumed Liabilities, subject to the provisions of the APA and the Order; <U>provided</U>,
<U>however</U>, that (i)&nbsp;nothing is this Assumption and Assignment Agreement shall prohibit
Assignee from asserting or pursuing any claims or offsets it may have against any Person related to
any Assumed Liability or contesting any Assumed Liability, whether pursuant to any agreement or
contract, under Law or in equity, and (ii)&nbsp;nothing herein shall be deemed to deprive Assignee of
any defenses, setoffs or counterclaims which Assignors may have had or which Assignee shall have
with respect to any Assumed Liabilities.


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Executed and Delivered this &#95;&#95;&#95;th day of &#95;&#95;&#95;, 2005.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="60%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="38%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="38%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left">WESTPOINT STEVENS INC.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left">WESTPOINT STEVENS INC. I</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left">WESTPOINT STEVENS STORES, INC.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left">TEXTILE CO., INC.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="center" style="font-size: 10pt"><U><B>EXHIBIT H</B></U>



<P align="center" style="font-size: 10pt"><B>TRADEMARK ASSIGNMENT</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reference is made to that certain Asset Purchase Agreement dated as of &#95;&#95;&#95;, 2005 (the &#147;APA&#148;)
by and among Westpoint Stevens Inc., Westpoint Stevens Inc. I, Westpoint Stevens Stores Inc., J.P.
Stevens Enterprises Inc., WS Textile Co., Inc., New Textile One, Inc., New Textile Two, Inc. and
Textile Co., Inc.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>(&#147;Assignor&#148;), a <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&n
bsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>located at
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbs
p;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, is the owner of the
trademarks (including any registrations and applications therefor) listed on Schedule&nbsp;A attached
hereto (collectively, the &#147;Marks&#148;);


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>(&#147;Assignee&#148;), a <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&n
bsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>located at
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbs
p;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, is desirous of acquiring
said Marks, and the registrations and applications therefor, and the goodwill associated therewith;
and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Assignee is desirous of acquiring the Marks, and the registrations and applications
therefor, and the goodwill associated therewith.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of the payment of Ten Dollars ($10.00) and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Assignor does
hereby assign to Assignee all right, title and interest, pursuant and subject to the provisions of
the APA, in, to and under said Marks and the registrations and applications therefor, together with
the goodwill of the business connected with the use of and symbolized by the Marks; and together
with all causes of action for the infringement of such Marks.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" colspan="3">ASSIGNOR</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="center" style="font-size: 10pt"><U>ACKNOWLEDGEMENT</U>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="84%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD nowrap><DIV style="margin-left:15px; text-indent:-15px">STATE OF <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">)SS</TD>
</TR>
<TR valign="bottom">
    <TD nowrap><DIV style="margin-left:15px; text-indent:-15px">COUNTY OF<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Be it remembered on this &#95;&#95;&#95;day of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2005, before me, the subscriber, a
Notary Public authorized to take acknowledgements and proofs in said county and state, personally
appeared <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, to me known, who being by me duly sworn according to
law, on his/her oath does depose and make proof of my satisfaction that he was at the time of the
execution thereof <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, the
ASSIGNOR in the foregoing instrument; and that he/she signed, sealed and delivered the instrument
as the voluntary act and deed of said corporation, by virtue of his/her authority.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="65%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="34%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>

    <TD align="left" valign="top">Notary Public</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="center" style="font-size: 10pt"><U><B>SCHEDULE A</B></U>



<P align="center" style="font-size: 10pt">&nbsp;

<DIV align="center">
<TABLE style="font-size: pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="65%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="34%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">MARK</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">REGISTRATION/SERIAL NO.</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<!-- End Table Body -->
</TABLE>
</DIV>
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="center" style="font-size: 10pt"><U><B>EXHIBIT I</B></U>



<P align="center" style="font-size: 10pt"><U><B>PATENT ASSIGNMENT</B></U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reference is made to that certain Asset Purchase Agreement dated as of June&nbsp;23, 2005 (the
&#147;APA&#148;) by and among Westpoint Stevens Inc., Westpoint Stevens Inc. I, Westpoint Stevens Stores
Inc., J.P. Stevens Enterprises Inc., WS Textile Co., Inc., New Textile One, Inc., New Textile Two,
Inc. and Textile Co., Inc.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> (&#147;Assignor&#148;), a <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;</U> located at <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;</U>, is the owner of the patents
listed on Schedule&nbsp;A attached hereto (collectively, the &#147;Patents&#148;);


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, <U>&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Assignee&#148;), a <U>&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;</U> located at <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;</U>, is desirous of acquiring the
entire interest in, to and under said Patents and the United States Letters Patents to be obtained
therefor:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, TO ALL WHOM IT MAY CONCERN:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Be it known that in consideration of the payment by Assignor to Assignee of the sum of Ten
Dollars ($10.00), the receipt of which is hereby acknowledged, and for other good and valuable
consideration, Assignor hereby sells, assigns and transfers to Assignee the full and exclusive
right, title and interest, pursuant and subject to the provisions of the APA, to the Patents and
all Letters Patent of the United States to be obtained therefor on said applications and
registrations and/or any continuations, divisions, renewals, substitutes or reissues thereof for
the full term or terms for which the same may be granted.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assignor also assigns all of its right, title and interest, pursuant and subject to the
provisions of the APA, in and to the Patents in all foreign countries, and all applications for
Letters Patent which may evolve therefrom, including the right to claim International Convention
priority.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assignor hereby covenants that no assignment, sale, agreement or encumbrance has been or will
be made or entered into which would conflict with this assignment and sale.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assignor further covenants that Assignee will, upon its request, be provided promptly with all
pertinent facts and documents relating to the Patents, and the Letters Patent as may be known and
accessible to Assignor and Assignor will testify as to the same in any interference or litigation
related thereto and will promptly execute and deliver to Assignee or its legal representative any
and all papers, instruments or affidavits required to apply for, obtain, maintain and enforce the
Patents and the Letters Patent which may be necessary or desirable to carry out the purposes
hereof.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" colspan="3">ASSIGNOR</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="center" style="font-size: 10pt"><U>ACKNOWLEDGEMENT</U>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="41%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="42%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD nowrap><DIV style="margin-left:15px; text-indent:-15px">STATE OF</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">)SS</TD>
</TR>
<TR valign="bottom">
    <TD nowrap><DIV style="margin-left:15px; text-indent:-15px">COUNTY OF</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Be it remembered on this &#95;&#95;&#95;day of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2005, before me, the
subscriber, a Notary Public authorized to take acknowledgements and proofs in said county and
state, personally appeared <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, to me known, who being by me duly
sworn according to law, on his/her oath does depose and make proof of my satisfaction that he was
at the time of the execution thereof <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> of
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, the ASSIGNOR in the foregoing instrument; and that he/she signed,
sealed and delivered the instrument as the voluntary act and deed of said corporation, by virtue of
his/her authority.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="70%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="28%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notary Public</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="center" style="font-size: 10pt"><U><B>SCHEDULE A</B></U>



<P align="center" style="font-size: 10pt">&nbsp;

<DIV align="center">
<TABLE style="font-size: pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="70%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="28%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">TITLE</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">PATENT/APPLICATION NO.</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<!-- End Table Body -->
</TABLE>
</DIV>
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="center" style="font-size: 10pt"><U><B>EXHIBIT J</B></U>



<P align="center" style="font-size: 10pt"><U><B>COPYRIGHT ASSIGNMENT</B></U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reference is made to that certain Asset Purchase Agreement dated as of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2005
(the &#147;APA&#148;) by and among WestPoint Stevens Inc., WestPoint Stevens Inc. I, WestPoint Stevens Stores
Inc., J.P.. Stevens Enterprises., WS Textile Co., Inc., New Textile One, Inc. New Textile Two, Inc.
and Textile Co. Inc. In consideration of the payment of Ten Dollars ($10.00) and other good and
valuable consideration, receipt of which is hereby acknowledged, the undersigned
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, a <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> located at
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> (&#147;Assignor&#148;), hereby sells, grants,
assigns and sets over unto <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, a <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
located at <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> (&#147;Assignee&#148;), and its representatives,
successors and assigns forever, all right, title and interest in and to all copyrights (including
moral rights and rights in all Internet web sites), and mask work rights owned by Assignor and all
registrations thereof and applications therefor, including the United States copyright
registrations set forth on Schedule&nbsp;A (collectively, the &#147;Copyrights&#148;) and all renewals and
extensions of such Copyrights, and any translations, versions and other adaptations or revisions of
the Work, in accordance with the terms of the APA.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the undersigned has executed this Assignment on the &#95;&#95;&#95;day of
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2005.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" colspan="3">ASSIGNOR</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><U>ACKNOWLEDGEMENT</U>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="41%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="42%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD nowrap><DIV style="margin-left:15px; text-indent:-15px">STATE OF</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">)SS</TD>
</TR>
<TR valign="bottom">
    <TD nowrap><DIV style="margin-left:15px; text-indent:-15px">COUNTY OF</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Be it remembered on this &#95;&#95;&#95;day of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2005, before me, the subscriber, a
Notary Public authorized to take acknowledgements and proofs in said county and state, personally
appeared <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, to me known, who being by me duly sworn according to
law, on his/her oath does depose and make proof of my satisfaction that he was at the time of the
execution thereof <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, the
ASSIGNOR in the foregoing instrument; and that he/she signed, sealed and delivered the instrument
as the voluntary act and deed of said corporation, by virtue of his/her authority.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="70%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="28%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notary Public</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="center" style="font-size: 10pt"><U><B>SCHEDULE A</B></U>



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="center" style="font-size: 10pt"><U><B>EXHIBIT K</B></U>



<P align="center" style="font-size: 10pt"><U><B>DOMAIN NAME ASSIGNMENT</B></U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This domain names assignment (the &#147;Assignment&#148;) is made and entered into as of this &#95;&#95;&#95;
day of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2005 (&#147;Effective Date&#148;) by and between <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, a
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> located at <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> (the &#147;Assignor&#148;)
and <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, an <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> located at
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> (the &#147;Assignee&#148;).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reference is made to that certain Asset Purchase Agreement dated as of June&nbsp;23, 2005 (the
&#147;APA&#148;) by and among Westpoint Stevens Inc., Westpoint Stevens Inc. I, Westpoint Stevens Stores
Inc., J.P. Stevens Enterprises Inc., WS Textile Co., Inc., New Textile One, Inc., New Textile Two,
Inc. and Textile Co., Inc.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Assignor is the registered owner of the domain names listed on Schedule&nbsp;A
(collectively, the &#147;Domain Names&#148;); and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Assignor wishes to assign to Assignee, and Assignee wishes to acquire from Assignor,
all rights in the Domain Names, and all goodwill associated therewith.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of the payment of Ten Dollars ($10.00) and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Assignor and
Assignee agree as follows:


<P align="left" style="font-size: 10pt">1. <U><B>Assignment</B></U>. Assignor hereby irrevocably assigns and transfers to Assignee all right,
title, and interest, pursuant and subject to the provisions of the APA, in and to the Domain Names,
as of the Effective Date.



<P align="left" style="font-size: 10pt">2. <U><B>Further Assurances</B></U>. Assignor agrees to take all steps and execute all documents
necessary to effectuate the transfer of the Domain Names to Assignee, including but not limited to
any documents required by the registrars of the Domain Names.



<P align="left" style="font-size: 10pt">3. <U><B>Governing Law</B></U>. This Agreement shall be governed by and construed in accordance with the
laws of the state of New York, without giving effect to any choice of law or conflict of laws rules
or provisions that would cause the application of the laws of any jurisdiction other than the state
of New York.



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, Assignor and Assignee have caused this Domain Names Assignment to be
executed by their duly authorized representatives.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" colspan="3">ASSIGNOR</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;


<P align="center" style="font-size: 10pt"><U>ACKNOWLEDGEMENT</U>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="41%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="42%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD nowrap><DIV style="margin-left:15px; text-indent:-15px">STATE OF</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">)SS</TD>
</TR>
<TR valign="bottom">
    <TD nowrap><DIV style="margin-left:15px; text-indent:-15px">COUNTY OF</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Be it remembered on this &#95;&#95;&#95;day of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2005, before me, the subscriber, a
Notary Public authorized to take acknowledgements and proofs in said county and state, personally
appeared <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, to me known, who being by me duly sworn according to
law, on his/her oath does depose and make proof of my satisfaction that he was at the time of the
execution thereof <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, the ASSIGNOR in
the foregoing instrument; and that he/she signed, sealed and delivered the instrument as the
voluntary act and deed of said corporation, by virtue of his/her authority.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="70%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="28%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Notary Public</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" colspan="3">ASSIGNOR</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>

    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="center" style="font-size: 10pt"><U><B>EXHIBIT L</B></U>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="66%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>This instrument was
prepared by and after
recording return to:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B><I>&#091;subject to modification to conform to
individual state requirements&#093;</I></B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="right" style="font-size: 10pt"><I>The above space reserved for Recorder&#146;s use only.</I>



<P align="center" style="font-size: 10pt"><U><B>SPECIAL WARRANTY DEED</B></U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>THIS SPECIAL WARRANTY DEED </B>is made as of the &#95;&#95;&#95;day of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2005 by and between
<B>WESTPOINT STEVENS INC</B>., a Delaware corporation, party of the first part, and
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, a <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, party of the second part. WITNESSETH,
that the party of the first part, for and in consideration of the sum of Ten and No/100 Dollars in
hand paid by the party of the second part, the receipt whereof is hereby acknowledged, by these
presents does GRANT, BARGAIN, SELL, REMISE, RELEASE AND CONVEY unto the party of the second part,
and to its successors and assigns, FOREVER, the following described real estate, situated in the
County of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> and State of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> known and described as follows, to wit:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See Exhibit &#147;A&#148; attached hereto and made a part hereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Together with all of the party of the first part&#146;s right, title and interest in the
improvements, hereditaments, easements and appurtenances thereunto belonging, or in anyway
appertaining, and the reversion and reversions, remainder and remainders, rents, issues and profits
thereof, and all the estate, right, title, interest, claim or demand whatsoever, either in law or
equity, of, in and to the above described premises, with the improvements, hereditaments, easements
and appurtenances (collectively, the &#147;Property&#148;): TO HAVE AND TO HOLD the Property, unto the party
of the second part, its successors and assigns forever.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;And the party of the first part, for itself, and its successors, does covenant, promise and
agree, to and with the party of the second part, its successors and assigns, that it has not done
or suffered to be done, anything whereby the said premises hereby granted are, or may be, in any
manner encumbered or charged, except as provided on Exhibit &#147;B&#148;, and WILL WARRANT AND DEFEND
against all persons lawfully claiming or to claim the same, by through or under it, subject to the
matters described on Exhibit &#147;B&#148;, and not otherwise.


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>IN WITNESS WHEREOF, </B>said party of the first part has executed this Special Warranty Deed as of
the date first above written.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><B>ATTEST:</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="9" valign="top" align="left"><B>WESTPOINT STEVENS INC.,</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="9" valign="top" align="left">a Delaware corporation</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Its:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Its:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="left" style="font-size: 10pt">Send subsequent tax bills to:




<P align="center" style="font-size: 10pt">-2-
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="84%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD nowrap><DIV style="margin-left:15px; text-indent:-15px">STATE OF</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">)SS.</TD>
</TR>
<TR valign="bottom">
    <TD nowrap><DIV style="margin-left:15px; text-indent:-15px">COUNTY OF</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I, the undersigned, a Notary Public in and for the County and State aforesaid, DO HEREBY
CERTIFY, that <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> and <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, the
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> of WESTPOINT STEVENS INC., a Delaware corporation, personally known to me to
be the same persons whose names are subscribed to the foregoing instrument as such officers,
appeared before me this day in person and acknowledged that they signed and delivered the said
instrument as their free and voluntary act and as the free and voluntary act of said corporation
for the uses and purposes therein set forth.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Given under my hand and Notary Seal, this &#95;&#95;&#95;day of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2005.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="65%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="34%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Notary Public</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">-3-
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="center" style="font-size: 10pt"><B>EXHIBIT A</B><BR>
<U><B>LEGAL DESCRIPTION</B></U>




<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="center" style="font-size: 10pt"><B>EXHIBIT B</B><BR>
<U><B>PERMITTED EXCEPTIONS</B></U>




<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="center" style="font-size: 10pt"><U><B>EXHIBIT M</B></U>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">This instrument was
prepared by and after
recording return to:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B><I>&#091;subject to modification to conform to
individual state requirements&#093;</I></B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><I>The above space reserved for Recorder&#146;s use only.</I></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><U><B>QUIT CLAIM DEED</B></U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THE GRANTOR, <B>WESTPOINT STEVENS INC.</B>, a Delaware corporation, for and in consideration of Ten
and 00/100 Dollars ($10.00), and other good and valuable consideration in hand paid, CONVEYS and
QUIT CLAIMS to &#95;&#95;&#95;<B>, </B>a &#95;&#95;&#95;, the following described
real estate situated in the County of &#95;&#95;&#95;in the State of &#95;&#95;&#95;, as more fully
described on <U>Exhibit&nbsp;A</U> attached hereto and made a part hereof, together with all buildings
and improvements located thereon and all rights, privileges and appurtenances thereunto belonging.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="15%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">PIN:<BR>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Common Address:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="left" style="font-size: 10pt">DATED this _______ day of _________, 2005.


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><B>ATTEST</B>:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>WESTPOINT STEVENS INC.</B>,</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">a Delaware corporation</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Its:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Its:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="15%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="82%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD nowrap valign="top"><DIV style="margin-left:0px; text-indent:-0px">STATE OF &#95;&#95;&#95;&#95;&#95;&#95;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">ss.</TD>
</TR>
<TR valign="bottom">
    <TD nowrap valign="top"><DIV style="margin-left:0px; text-indent:-0px">COUNTY OF &#95;&#95;&#95;&#95;&#95;&#95;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I, the undersigned, a Notary Public in and for the County, in the State aforesaid, DO HEREBY
CERTIFY, that &#95;&#95;&#95;&#95;&#95;&#95;, the &#95;&#95;&#95;&#95;&#95;&#95;and &#95;&#95;&#95;&#95;&#95;&#95;, the
&#95;&#95;&#95;of WESTPOINT STEVENS INC., a Delaware corporation, personally known to me to be
the same persons whose names are subscribed to the foregoing instrument as such officers, appeared
before me this day in person and acknowledged that they signed, sealed and delivered the said
instrument as their free and voluntary act of said corporation for the uses and purposes therein
set forth.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Given under my hand and official seal, this &#95;&#95;&#95;day of &#95;&#95;&#95;, 2005.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="49%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="28%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Notary Public</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">My Commission Expires:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="left" style="font-size: 10pt">Send subsequent tax bills to:



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="center" style="font-size: 10pt"><B>EXHIBIT A</B><BR>
<U><B>LEGAL DESCRIPTION</B></U>



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="center" style="font-size: 10pt"><B>EXHIBIT N</B>



<P align="center" style="font-size: 10pt"><U>Assumption and Assignment Agreement</U><BR>
(Contracts and Real Property Leases)



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reference is made to that certain Asset Purchase Agreement, dated as of June&nbsp;23, 2005 (the
&#147;APA&#148;) by and among WestPoint Stevens Inc. (the &#147;Company&#148;) WestPoint Stevens Inc. I, and WestPoint
Stevens Stores Inc., (the Company and such entities collectively the &#147;Assignors&#148;) J.P. Stevens
Enterprises Inc., WS Textile Co., Inc., New Textile One, Inc., New Textile Two, Inc. and Textile
Co., Inc. Defined terms used but not otherwise defined herein shall have the meaning ascribed to
them in the APA.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In consideration of the items being provided to Assignors or their creditors under the APA and
pursuant to that certain &#091;USE EXACT FINAL TITLE OF SALE ORDER AND ANY SEPARATE ORDER FIXING CURE
COST AMOUNTS&#093;, dated &#95;&#95;&#95;, 2005 (collectively, the &#147;Order&#148;), Assignors hereby absolutely
assign, transfer and convey to Textile Co., Inc. (&#147;Assignee&#148;) all of Assignors&#146; right, title and
interest (i)&nbsp;under or relating to the Contracts included in the Purchased Assets to the extent
assignable under the terms of the respective Contract, pursuant to applicable Law or order of the
Bankruptcy Court or as a result of any consents obtained from other parties to such Contract
pursuant to <U>Section&nbsp;8.3</U> of the APA, and (ii)&nbsp;under the Real Property Leases included in the
Purchased Assets together with all right, title and interest of Assignors, if any, in and to all
improvements, fixtures and other appurtenances thereto and rights in respect thereof, in the case
of each of clause (i)&nbsp;and (ii), as set forth on Exhibit&nbsp;A hereto, free and clear of claims,
interests, Liens and encumbrances to the extent provided in the Order. Assignee assumes the
Assumed Obligations accruing from and after the date hereof under the Contracts or Real Property
Leases set forth on Exhibit&nbsp;A hereto, pursuant to and subject to the provisions of the APA and the
Order, <U>provided</U>, <U>however</U>, that (i)&nbsp;Assignee is only agreeing to pay cure costs for
the Contracts and Real Property Leases included in the Purchased Assets to the extent determined by
an Order in the Bankruptcy Case; (ii)&nbsp;nothing in this Assumption and Assignment Agreement shall
prohibit Assignee from asserting or pursuing any claims or offsets it may have against any Person
relating to any such Contract or Real Property Lease or contesting any liability thereunder,
whether pursuant to any agreement or contract, under Law or in equity, and (iii)&nbsp;nothing herein
shall be deemed to deprive Assignee of any defenses, setoffs or court claims which Assignors may
have had or which Assignee shall have with respect to any such Contract or Real Property Lease.


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Executed and Delivered this &#95;&#95;&#95;th day of &#95;&#95;&#95;, 2005.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="62%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">WESTPOINT STEVENS INC.</TD>

</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">WESTPOINT STEVENS INC. I</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">WESTPOINT STEVENS STORES, INC.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">TEXTILE CO., INC.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="center" style="font-size: 10pt"><B>EXHIBIT O</B>



<P align="center" style="font-size: 10pt"><U>Officer&#146;s Certificate of the Company Pursuant to Section&nbsp;10.1(c)</U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reference is made to that certain Asset Purchase Agreement, dated June&nbsp;23, 2005 (the &#147;APA) by
and among WS Textile Co., Inc., New Textile One, Inc., New Textile Two, Inc., Textile Co., Inc,
WestPoint Stevens Inc. (the &#147;Company&#148;), WestPoint Stevens Inc. I, WestPoint Stevens Stores Inc.,
and J.P. Stevens Enterprises Inc. All capitalized terms used but not otherwise defined herein
shall have the meaning ascribed to them in the APA.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I hereby certify that:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;I am the &#95;&#95;&#95;of the Company.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;All representations and warranties of the Sellers in the APA or in any exhibit, schedule or
document delivered by any one of them pursuant to the APA are true, complete and correct in
all respects (with respect to representations and warranties qualified or limited by
materiality or Seller Material Adverse Effect) or in all material respects (with respect to
representations and warranties not so qualified or limited), in each case when made (unless
cured as provided in <U>Section&nbsp;4.4(e)</U> of the APA) and on and as of the date hereof as if
made on the date hereof, other than any such representations or warranties that expressly
speak only as of an earlier date, which are true, complete and correct in all respects (with
respect to representations and warranties qualified or limited by materiality or Seller
Material Adverse Effect) or in all material respects (with respect to representations and
warranties not so qualified or limited) as of such earlier date.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;All of the terms, covenants and conditions to be complied with and performed by the Sellers
on or prior to the Closing Date (other than the covenants contained in <U>Section&nbsp;8.2 (a)(i),
Sections&nbsp;8.2(b)(iii)</U> through <U>(xi), Section&nbsp;8.2(b)(xii) (</U>to the extent it relates
to<U> </U>commitments to do items covered in <U>Sections&nbsp;8.2(b)(iii)</U> through <U>(xi)) ,
Section&nbsp;8,2(c), </U>and <U>Section&nbsp;8.9(d)</U>, as to which <U>Section&nbsp;10.1(l)</U> applies)
have been complied with or performed in all material respects and all breaches of any such
covenants in the aggregate do not result in a Seller Material Adverse Effect.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;Sellers have fully complied with and performed their obligations set forth in <U>Sections
8.2(a)(i), Sections&nbsp;8.2(b)(iii)</U> through <U>(xi), Section&nbsp;8.2(b)(xii)</U> (to the extent
it relates to commitments to do items covered in <U>Sections&nbsp;8.2(b)(iii)</U> through
<U>(xi)), Section&nbsp;8.2(c)</U> and <U>Section&nbsp;8.9(d)</U> hereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;To my knowledge, none of the Sellers is subject to any Order or Law of any Governmental Body
of competent jurisdiction restraining, enjoining or otherwise preventing consummation of the
transactions contemplated by this Agreement.


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;No Material Property Loss has occurred.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="62%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">WestPoint Stevens Inc.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Dated: <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2005
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">- 2 -
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="center" style="font-size: 10pt"><U>Incumbency Certificate</U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned, as &#091;assistant&#093; secretary of the Company, does hereby certify that
&#95;&#95;&#95;, who signed and delivered the Officer&#146;s Certificate Pursuant to Section&nbsp;10.1(c) of
the APA, currently holds the title set forth in that certificate and that the signature of such
person is genuine.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="62%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Dated:<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2005</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">- 3 -
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="center" style="font-size: 10pt"><B>EXHIBIT P</B>



<P align="center" style="font-size: 10pt"><U>Officer&#146;s Certificate of the Purchaser Pursuant to Section&nbsp;10.2(e)</U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reference is made to that certain Asset Purchase Agreement, dated June&nbsp;23, 2005 (the &#147;APA) by
and among WS Textile Co., Inc., New Textile One, Inc., New Textile Two, Inc., Textile Co., Inc,
WestPoint Stevens Inc., WestPoint Stevens Inc. I, WestPoint Stevens Stores Inc., and J.P. Stevens
Enterprises Inc. All capitalized terms used but not otherwise defined herein shall have the
meaning ascribed to them in the APA.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I hereby certify that:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;I am the &#95;&#95;&#95;of the Purchaser.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;All representations and warranties of Parent and Purchaser in the APA or in any exhibit,
schedule or document delivered by any of them pursuant to the APA are true, complete and
correct in all respects (with respect to representations and warranties qualified or limited
by materiality or Purchaser Material Adverse Effect) or in all material respects (with respect
to representations and warranties not so qualified or limited), in each case when made (unless
cured as provided in <U>Section&nbsp;4.4(f)</U> of the APA) and on and as of the date hereof as if
made on the date hereof, other than representations or warranties that expressly speak only as
of an earlier date, which are true, complete and correct in all respects (with respect to
representations and warranties qualified or limited by materiality or Purchaser Material
Adverse Effect) or in all material respects (with respect to representations and warranties
not so qualified or limited) as of such earlier date.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;All of the terms, covenants and conditions to be complied with and performed by the Purchaser
and Parent on or prior to the Closing Date have been complied with and performed in all
material respects and all breaches of any such covenants in the aggregate do not result in a
Purchaser Material Adverse Effect.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;To my knowledge, neither Purchaser nor Parent is subject to any Order or Law of any
Governmental Body of competent jurisdiction restraining, enjoining or otherwise preventing
consummation of the transaction contemplated by this Agreement.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="49%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Textile Co., Inc.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Dated:<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2005
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="center" style="font-size: 10pt"><U>Incumbency Certificate</U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned, as &#091;assistant&#093; secretary of the Purchaser, does hereby certify that
&#95;&#95;&#95;, who signed and delivered the Officer&#146;s Certificate Pursuant to Section&nbsp;10.2(e) of
the APA, currently holds the title set forth in that certificate and that the signature of such
person is genuine.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="49%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Dated:<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2005</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">- 2 -
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="49%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">June&nbsp;23, 2005</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt">WS Textile Co., Inc.<BR>
767 Fifth Avenue<BR>
New York, New York 10153<BR>
Attention:


<P align="left" style="font-size: 10pt">Ladies and Gentlemen:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We refer to the Asset Purchase Agreement dated June&nbsp;23, 2005 (the &#147;APA&#148;) among WS Textile Co.,
Inc., New Textile One, Inc., New Textile Two, Inc., Textile Co., Inc., WestPoint Stevens Inc.,
WestPoint Stevens Inc. I, WestPoint Stevens Stores Inc., and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J.P. Stevens
Enterprises Inc . All capitalized terms used and not otherwise defined herein shall have the
meanings as defined in the APA.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;Textile Holding, LLC, a wholly owned subsidiary of American Real Estate Holding Limited
Partnership (AREH&#148;) hereby advises you of its commitment to purchase 5,250,000 shares of Parent
Common Stock for a purchase price of One Hundred Eighty-Seven Million ($187,000,000) Dollars (to
which the Deposit shall be applied). The commitment to purchase the Parent Common Stock is subject
to, and shall occur simultaneously with, the Closing under the Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Aretex hereby advises you of its commitment to exercise (or to cause its Affiliates to acquire
and exercise) all Subscription Rights delivered to it at the Closing promptly after receipt
thereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;Textile Holding LLC further advises you of its commitment to make available to Parent on the
Closing Date a revolving facility in an amount equal to the difference between One Hundred Twenty
Five Million ($125,000,000) Dollars and the aggregate Exercise Price payable pursuant to paragraph
2. above (the &#147;Loan&#148;). The Loan shall bear no interest, have no coverage requirements and shall be
secured by the proceeds of the Exercise Price payable by holders of Subscription Rights, other than
pursuant to paragraph 2 above. The proceeds of the Exercise Price received from time to time by
Parent upon the exercise of Subscription Rights, other than pursuant to paragraph 2 above, shall be
applied to mandatory repayments of the Loan and the commitment thereunder shall be reduced by such
amount. Any balance of the Loan outstanding on the first anniversary of the Closing Date shall be
paid in full. The commitment to make the Loan is subject to, and shall occur simultaneously with,
the Closing under the Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;AREH hereby advises you of it commitment to make a capital contribution or loan to Textile
Holding, LLC, Aretex and its Affiliates necessary to provide the funds to satisfy the commitments
set forth in paragraphs 1., 2. and 3. above.


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Textile Holding, LLC, Aretex and AREH acknowledge that the Company is an express third party
beneficiary of the commitments set forth in paragraphs 1, 2, 3 and 4 hereof, with rights to enforce
the provisions of paragraphs 1, 2, 3 and 4 of this commitment letter as if it were a party hereto.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This commitment letter may not be amended or waived except by an instrument signed by all of
the parties hereto. This commitment letter shall be governed by and construed in accordance with
the laws of the State of New York without regard to it&#146;s conflicts of laws provisions.


<P align="center" style="font-size: 10pt">&#091;remainder of page intentionally blank&#093;



<P align="center" style="font-size: 10pt">- 2 -
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the foregoing accurately reflects our agreement, please indicate your acceptance of the
terms hereof by returning to us an executed counterpart hereof.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="49%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" valign="top" align="left">Very truly yours,</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" valign="top" align="left">Textile Holding LLC<BR></TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left">American Real Estate Holding Limited</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Partnership, its member</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR><TR valign="bottom">
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left">American Property Investors, Inc.,</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;general partner</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" valign="top" align="left">American Real Estate Holding</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Limited Partnership</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">American Property Investors, Inc.,
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;general partner</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" valign="top" align="left">Aretex LLC</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="62%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">Accepted and Agreed to as<BR>
of the date first written above by:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">WS Textile Co., Inc.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">- 3 -

</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="center" style="font-size: 10pt"><B>&#091;Rights Offering Sponsor Agreement&#093;</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="60%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="39%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">June&nbsp;23, 2005</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt">WS Textile Co., Inc<BR>
767 Fifth Avenue<BR>
New York, New York 10153<BR>
Attention:


<P align="left" style="font-size: 10pt">Ladies and Gentlemen:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We refer to the Asset Purchase Agreement dated June&nbsp;23, 2005 (the &#147;Agreement&#148;) among WS
Textile Co., Inc., New Textile One, Inc., New Textile Two, Inc, Textile Co., Inc., WestPoint
Stevens Inc., WestPoint Stevens Inc. I, WestPoint Stevens Stores Inc. and J.P. Stevens Enterprises,
Inc. All capitalized terms used and not otherwise defined herein shall have the meanings as
defined in the Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;American Real Estate Holding Limited Partnership (&#147;AREH&#148;) hereby advises you of its commitment
to purchase through a direct or indirect subsidiary, at the Exercise Price (as defined in Exhibit&nbsp;C
to the APA) a number of shares of Parent Common Stock equal to that number of shares of Parent
Common Stock with respect to which Subscription Rights have not been exercised by the Expiration
Date (as defined in Exhibit&nbsp;C to the APA). The commitment to purchase the Parent Common Stock is
subject to the Closing under the Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AREH acknowledges that the Company is an express third party beneficiary of this commitment
with rights to enforce the provisions of this commitment letter as if it were a party hereto.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This commitment letter may not be amended or waived except by an instrument signed by all of
the parties hereto. This commitment letter shall be governed by and construed in accordance with
the laws of the State of New York without regard to it&#146;s conflicts of laws provisions.


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the foregoing accurately reflects our agreement, please indicate your acceptance of the
terms hereof by returning to us an executed counterpart hereof.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="49%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left">Very truly yours,</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left">American Real Estate Holding</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Limited Partnership</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
</TR><TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">American Property Investors, Inc.,</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;general partner</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
</TR><TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="left" style="font-size: 10pt">Accepted and Agreed to as<BR>
of the date first written above by:



<P align="left" style="font-size: 10pt">WS Textile Co., Inc.



<P align="left" style="font-size: 10pt">By:<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>



<P align="center" style="font-size: 10pt">- 2 -
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="center" style="font-size: 10pt"><B>EXHIBIT S</B>



<P align="center" style="font-size: 10pt"><U><B>INDEMNIFICATION AGREEMENT</B></U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS INDEMNIFICATION AGREEMENT (the &#147;<U>Agreement</U>&#148;) is made and entered into to be
effective as of June &#95;&#95;&#95;, 2005, by J.P. Stevens &#038; Co. (&#147;J.P. Stevens&#148;) in favor of each of WS
Textile Co., Inc., a Delaware corporation (&#147;Parent&#148;), New Textile One, Inc., a Delaware corporation
(&#147;Holdco One&#148;), New Textile Two, Inc., a Delaware corporation (&#147;Holdco Two&#148;) and Textile Co., Inc.,
a Delaware corporation (&#147;Subsidiary&#148;) (Parent, Holdco One, Holdco Two and Subsidiary, as their
names may be changed from time to time, are hereby collectively referred to as &#147;Indemnitees&#148;
herein).


<P align="center" style="font-size: 10pt"><U>WITNESSETH</U>:



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;Subsidiary is acquiring certain assets from current corporate affiliates of J.P. Stevens on
a free and clear basis pursuant to Section&nbsp;363 of the Bankruptcy Code. None of the Indemnitees is
acquiring any assets from J.P. Stevens.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;J.P. Stevens has been subject to certain asbestos related claims and suits relating to a
limited quantity of asbestos containing cloth. J.P. Stevens has generally denied any and all
liability with respect to such asserted claims and suits.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;J.P. Stevens became a corporate affiliate of WestPoint Stevens, Inc. in 1988 but has always
remained as a separate subsidiary throughout its affiliation period.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;Subsidiary and the other Indemnitees are providing millions of dollars of consideration
which will be used to satisfy, among other things, the Debtor in Possession financing and certain
secured debt for which J.P. Stevens is a co-obligor or guarantor.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, J.P. Stevens hereby agree as follows:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;<U>Indemnification</U>. J.P. Stevens agrees unconditionally to indemnify and to defend
and to hold each of the Indemnitees and their affiliates and their respective officers, directors,
equity owners, employees and agents harmless from and against any and all claims, defense costs,
damages or other costs or expenses related in any way to or arising out of any claims made or suits
or proceedings brought against any of the Indemnitees and their affiliates and their respective
officers, directors, equity owners, employees and agents related to or arising out of any products
manufactured or distributed, or operations engaged in, by J.P. Stevens or their
predecessors, including, without limitation, claims for personal injury, property damage, or any
other tort related claim of any nature (the &#147;Indemnified Claims&#148;). Notwithstanding anything in
this Agreement to the contrary, the parties agree that this Agreement does not restrict JP Stevens


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">from being liquidated and dissolved, if it so desires, following the closing of the transaction
contemplated by the Asset Purchase Agreement dated June __, 2005 by and among Indemnitees,
WestPoint Stevens Inc., WestPoint Stevens Inc. I, WestPoint Stevens Stores Inc. and J.P. Stevens
Enterprises, Inc.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;<U>Defense Costs</U>. In the event that any of the Indemnitees is the subject of a claim
or suit or proceeding related to or arising out of any Indemnified Claim, J.P. Stevens shall pay
all costs and fees incurred by defense counsel retained by any of the Indemnitees and their
affiliates and their respective officers, directors, equity owners, employees and agents.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;<U>Governing Law</U>. This Agreement shall be interpreted and construed in accordance
with the laws of the State of New York, without giving effect to choice of law principles.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;<U>Binding Effect</U>. This Agreement and the indemnities contained herein shall be
continuing, irrevocable and binding upon J.P. Stevens, and its heirs, successors and assigns, and
shall inure to the benefit of the Indemnitees and their successors and assigns.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;<U>Survival</U>. The provisions of this Agreement shall survive the closing of the
acquisition or any resale by any of the Indemnities of all or any portion of the assets being
acquired from affiliates of J.P. Stevens.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;<U>Notices</U>. Any notice which any party hereto may desire or be required to give to
the other shall be deemed to be adequate and sufficient notice if given in writing and service is
made by either (i)&nbsp;registered or certified mail, postage prepaid, in which case notice shall be
deemed to have been received three (3)&nbsp;business days following deposit to the mail; or (ii)
nationally recognized overnight air courier, next day delivery, prepaid, in which case such notice
shall be deemed to have been received one (1)&nbsp;business day following delivery to such courier. All
notices shall be addressed to

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="55%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">J.P. Stevens &#038; Co., Inc.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Indemnitees</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">c/o WS Textile Co, Inc.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">100 South Bedford Road</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Mt. Kisco, NY 10549</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Attention: Felicia Buebel, Esq.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt">or to such other place as either party may by written notice to the other party hereafter designate
as a place for service of notice. Any notice so mailed shall be conclusive be assumed to be
received by the address thereof.



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;<U>WAIVER OF JURY TRIAL</U>. AFTER CONSULTING WITH COUNSEL AND CAREFUL CONSIDERATION,
J.P. STEVENS AND THE INDEMNITEES (BY THEIR ACCEPTANCE HEREOF) KNOWINGLY, VOLUNTARILY AND
INTENTIONALLY WAIVE THE RIGHT ANY OF THEM MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY
LITIGATION ARISING OUT OF THIS AGREEMENT, OR OUT OF ANY COURSE OF CONDUCT, COURSE OF DEALING,
STATEMENTS (ORAL OR WRITTEN), OR ACTIONS OF J.P. STEVENS OR INDEMNITEES. THIS WAIVER IS A MATERIAL
INDUCEMENT TO THE INDEMNITEES OF THIS AGREEMENT.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;<U>Injunctive Relief</U>. Damages at law may be an inadequate remedy for the breach of
any covenants, promises and agreements contained in this Agreement, and, accordingly, the
Indemnitees and their affiliates and their respective officers, directors, equity owners and
employees shall be entitled to injunctive relief, without the requirement to post any bond, with
respect to any such breach, including specific performance of such covenants, promises or
agreements or an order enjoining J.P. Stevens from any threatened, or from the continuation of any
actual, breach of the covenants, promises or agreements contained in this Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, J.P. Stevens has executed this Agreement to be effective as of the date
and year first above written.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="24%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">Witness:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">J.P. STEVENS &#038; CO.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Print Name:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>y10542exv10w2.htm
<DESCRIPTION>EX-10.2: EQUITY COMMITMENT AGREEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-10.2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<P align="right" style="font-size: 10pt">Exhibit 10.2



<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="center" style="font-size: 10pt"><B>[Equity Commitment Agreement]</B>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="49%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">June&nbsp;23, 2005</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt">WS Textile Co., Inc.<BR>
767 Fifth Avenue<BR>
New York, New York 10153<BR>
Attention:


<P align="left" style="font-size: 10pt">Ladies and Gentlemen:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We refer to the Asset Purchase Agreement dated June&nbsp;23, 2005 (the &#147;APA&#148;) among WS Textile Co.,
Inc., New Textile One, Inc., New Textile Two, Inc., Textile Co., Inc., WestPoint Stevens Inc.,
WestPoint Stevens Inc. I, WestPoint Stevens Stores Inc., and J.P. Stevens
Enterprises Inc. All capitalized terms used and not otherwise defined herein shall have the
meanings as defined in the APA.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;Textile Holding, LLC, a wholly owned subsidiary of American Real Estate Holding Limited
Partnership (AREH&#148;) hereby advises you of its commitment to purchase 5,250,000 shares of Parent
Common Stock for a purchase price of One Hundred Eighty-Seven Million ($187,000,000) Dollars (to
which the Deposit shall be applied). The commitment to purchase the Parent Common Stock is subject
to, and shall occur simultaneously with, the Closing under the Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Aretex hereby advises you of its commitment to exercise (or to cause its Affiliates to acquire
and exercise) all Subscription Rights delivered to it at the Closing promptly after receipt
thereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;Textile Holding LLC further advises you of its commitment to make available to Parent on the
Closing Date a revolving facility in an amount equal to the difference between One Hundred Twenty
Five Million ($125,000,000) Dollars and the aggregate Exercise Price payable pursuant to paragraph
2. above (the &#147;Loan&#148;). The Loan shall bear no interest, have no coverage requirements and shall be
secured by the proceeds of the Exercise Price payable by holders of Subscription Rights, other than
pursuant to paragraph 2 above. The proceeds of the Exercise Price received from time to time by
Parent upon the exercise of Subscription Rights, other than pursuant to paragraph 2 above, shall be
applied to mandatory repayments of the Loan and the commitment thereunder shall be reduced by such
amount. Any balance of the Loan outstanding on the first anniversary of the Closing Date shall be
paid in full. The commitment to make the Loan is subject to, and shall occur simultaneously with,
the Closing under the Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;AREH hereby advises you of it commitment to make a capital contribution or loan to Textile
Holding, LLC, Aretex and its Affiliates necessary to provide the funds to satisfy the commitments
set forth in paragraphs 1., 2. and 3. above.


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Textile Holding, LLC, Aretex and AREH acknowledge that the Company is an express third party
beneficiary of the commitments set forth in paragraphs 1, 2, 3 and 4 hereof, with rights to enforce
the provisions of paragraphs 1, 2, 3 and 4 of this commitment letter as if it were a party hereto.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This commitment letter may not be amended or waived except by an instrument signed by all of
the parties hereto. This commitment letter shall be governed by and construed in accordance with
the laws of the State of New York without regard to it&#146;s conflicts of laws provisions.


<P align="center" style="font-size: 10pt">&#091;remainder of page intentionally blank&#093;



<P align="center" style="font-size: 10pt">- 2 -
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the foregoing accurately reflects our agreement, please indicate your acceptance of the
terms hereof by returning to us an executed counterpart hereof.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="49%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" valign="top" align="left">Very truly yours,</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" valign="top" align="left">Textile Holding LLC<BR></TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left">American Real Estate Holding Limited</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Partnership, its member</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR><TR valign="bottom">
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left">American Property Investors, Inc.,</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;general partner</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/&nbsp;Jon F. Weber</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Jon F. Weber, President</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>



<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" valign="top" align="left">American Real Estate
Holdings</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Limited Partnership</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">American Property Investors, Inc.,
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;general partner</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/&nbsp;Jon&nbsp;F. Weber</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Jon F. Weber, President</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>



<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" valign="top" align="left">Aretex LLC</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/&nbsp;John P. Saldarelli</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">John P. Saldarelli, Vice President</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>




<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="62%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">Accepted and Agreed to as<BR>
of the date first written above by:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">WS Textile Co., Inc.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/&nbsp;Jon F. Weber</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>

<TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Jon F. Weber, President</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>



<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">- 3 -

</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>y10542exv10w3.htm
<DESCRIPTION>EX-10.3: RIGHTS OFFERING SPONSOR AGREEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-10.3</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><B>Exhibit&nbsp;10.3</B>

<P align="center" style="font-size: 10pt"><B>&#091;Rights Offering Sponsor Agreement&#093;</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="60%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="39%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">June&nbsp;23, 2005</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt">WS Textile Co., Inc<BR>
767 Fifth Avenue<BR>
New York, New York 10153<BR>
Attention:


<P align="left" style="font-size: 10pt">Ladies and Gentlemen:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We refer to the Asset Purchase Agreement dated June&nbsp;23, 2005 (the &#147;Agreement&#148;) among WS
Textile Co., Inc., New Textile One, Inc., New Textile Two, Inc, Textile Co., Inc., WestPoint
Stevens Inc., WestPoint Stevens Inc. I, WestPoint Stevens Stores Inc. and J.P. Stevens Enterprises,
Inc. All capitalized terms used and not otherwise defined herein shall have the meanings as
defined in the Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;American Real Estate Holding Limited Partnership (&#147;AREH&#148;) hereby advises you of its commitment
to purchase through a direct or indirect subsidiary, at the Exercise Price (as defined in Exhibit&nbsp;C
to the APA) a number of shares of Parent Common Stock equal to that number of shares of Parent
Common Stock with respect to which Subscription Rights have not been exercised by the Expiration
Date (as defined in Exhibit&nbsp;C to the APA). The commitment to purchase the Parent Common Stock is
subject to the Closing under the Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AREH acknowledges that the Company is an express third party beneficiary of this commitment
with rights to enforce the provisions of this commitment letter as if it were a party hereto.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This commitment letter may not be amended or waived except by an instrument signed by all of
the parties hereto. This commitment letter shall be governed by and construed in accordance with
the laws of the State of New York without regard to it&#146;s conflicts of laws provisions.


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
</DIV>
<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the foregoing accurately reflects our agreement, please indicate your acceptance of the
terms hereof by returning to us an executed counterpart hereof.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="49%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left">Very truly yours,</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left">American Real Estate Holding</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Limited Partnership</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
</TR><TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">American Property Investors, Inc.,</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;general partner</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
</TR><TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/&nbsp;&nbsp;Jon&nbsp;F. Weber</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Jon&nbsp;F. Weber, President</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="62%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">Accepted and Agreed to as<BR>
of the date first written above by:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
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    <TD align="left" valign="top">&nbsp;</TD>
</TR>
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    <TD colspan="3" valign="top" align="left">WS Textile Co., Inc.</TD>
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    <TD align="left" valign="top">&nbsp;</TD>
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</TR>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/&nbsp;Jon F. Weber</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Jon F. Weber, President</TD>
    <TD>&nbsp;</TD>
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<TYPE>EX-99.1
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<FILENAME>y10542exv99w1.htm
<DESCRIPTION>EX-99.1: PRESS RELEASE
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Contact:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="left" valign="top">Lorraine D. Miller, CFA
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="left" valign="top">WestPoint Stevens Inc.
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="left" valign="top">Senior Vice President
</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="left" valign="top">Finance and External Communications
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">404.378.0491</TD>
    <TD>&nbsp;</TD>

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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Contact:
</DIV></TD>
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    <TD nowrap colspan="3" align="left" valign="top">John P. Saldarelli
</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="left" valign="top">American Property Investors Inc.
</TD>
</TR>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
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    <TD nowrap colspan="3" align="left" valign="top">Chief Financial Officer, Secretary and Treasurer
</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">914.242.7700</TD>
    <TD>&nbsp;</TD>

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<P align="center" style="font-size: 10pt"><U><B>FOR IMMEDIATE RELEASE</B></U>



<P align="center" style="font-size: 10pt"><U><B>WestPoint Stevens Sale To American Real Estate Partners Approved By Court </B></U>



<P align="left" style="font-size: 10pt">WEST POINT, GEORGIA, and MOUNT KISCO, NEW YORK (June&nbsp;30, 2005) &#150; WestPoint Stevens Inc.
(Pink Sheet: WSPTQ.PK) (&#147;WestPoint&#148;) and American Real Estate Partners, L.P. (NYSE:ACP)
(&#147;AREP&#148;) announced today that the U.S. Bankruptcy Court has approved the sale of
substantially all of WestPoint&#146;s assets to an indirect subsidiary of AREP, which is
controlled by Carl C. Icahn. The AREP offer was the highest and best bid received in
connection with the sale process approved by the Court in its reorganization proceedings for
WestPoint.



<P align="left" style="font-size: 10pt">The terms of the agreement valued at $703.5&nbsp;million, include the purchase of substantially
all of the assets of WestPoint, the repayment of WestPoint&#146;s outstanding debtor-in-possession
loans and assumption of certain working capital liabilities, the satisfaction of other
secured claims, and the payment of $3&nbsp;million for wind-down costs. The agreement also
provides for the issuance on account of the first lien debt of 35.0% of the equity in WS
Textile Co. Inc., a newly formed company that will own indirectly the assets of WestPoint, a
$125&nbsp;million rights offering for 47.5% of the equity of WS Textile Co., Inc., and a cash
investment of $187&nbsp;million by AREP for 17.5% of the equity of WS Textile Co., Inc. By virtue
of its position as a holder of WestPoint debt, AREP has agreed to subscribe to its portion of
the rights expected to represent equity interests of not less than 19% of WS Textile Co.,
Inc. and has agreed to subscribe for any unexercised rights shares. As a result, it is
expected that AREP will own in excess of 50% of the outstanding shares of WS Textile Co., Inc
and may own up to 79%, to the extent the subscription rights are not exercised. A closing
date for the proposed sale has yet to be announced. The closing of the sale is subject to
customary and other deal-specific conditions and will be reflected in an order of the U.S.
Bankruptcy Court authorizing the transaction, which is expected to be entered next week.
Following the sale, WestPoint will wind down its estate, and as a result, all shares of its
common stock would be cancelled with no payment.



<P align="left" style="font-size: 10pt">Carl C. Icahn, Chairman of the Board of AREP&#146;s general partner reported &#147;We are pleased with
the outcome of this process and with WestPoint. We look forward to continuing to earn the
trust of WestPoint&#146;s customers, employees and vendors.&#148;



<P align="left" style="font-size: 10pt">M.L. &#147;Chip&#148; Fontenot, President and CEO of WestPoint Stevens commented, &#147;Court approval of
the sale agreement for WestPoint Stevens brings us closer to the successful



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<P align="left" style="font-size: 10pt">conclusion of our reorganization process. Going forward, we will seek to take advantage of
global opportunities.&#148;



<P align="left" style="font-size: 10pt">Mr.&nbsp;Fontenot added, &#147;I would like to thank our customers for their support during this very
difficult process. In addition, we are extremely grateful for the support of our employees,
vendors and communities.&#148;



<P align="left" style="font-size: 10pt">WestPoint Stevens Inc. is a leading home fashions consumer products company, with a wide
range of bed linens, towels, blankets, comforters and accessories marketed under the
well-known brand names <B>GRAND PATRICIAN, PATRICIAN, MARTEX, ATELIER MARTEX, BABY MARTEX,
UTICA, STEVENS, LADY PEPPERELL, SEDUCTION, VELLUX </B>and <B>CHATHAM </B>&#150; all registered trademarks
owned by WestPoint Stevens Inc. and its subsidiaries &#150; and under licensed brands including
<B>CHARISMA, RALPH LAUREN HOME, DISNEY HOME </B>and <B>GLYNDA TURLEY</B>. WestPoint Stevens can be found
on the World Wide Web at <I><U>www.westpointstevens.com</U></I>.



<P align="left" style="font-size: 10pt">AREP, is a master limited partnership engaged in a variety of businesses including oil and
gas exploration and production; casino gaming and associated hotel, restaurant and
entertainment operations; real estate activities including commercial rentals, residential
development and associated resort activities; and investments in equity and debt securities.
AREP&#146;s seeks to continue to grow and enhance the value of its core businesses and to acquire
undervalued assets and companies that are distressed or in out-of-favor industries.



<P align="left" style="font-size: 10pt"><I>This shall not constitute an offer of any securities for sale, which offer may be made only
pursuant to a registration statement filed with the Securities and Exchange Commission pursuant to
the Securities Act of 1933 or an exemption therefrom. This shall not constitute an offer to sell
or the solicitation of an offer to buy securities in any State in which such offer or solicitation
would be unlawful prior to registration or qualification under the securities law of any such
State.</I>



<P align="left" style="font-size: 10pt"><I>AREP Safe Harbor Statement: This release contains certain &#147;forward-looking statements&#148; within the
meaning of the Private Securities Litigation Reform Act of 1995, many of which are beyond our
ability to control or predict. Forward-looking statements may be identified by words such as
&#147;expects,&#148; &#147;anticipates,&#148; &#147;intends,&#148; &#147;plans,&#148; &#147;believes,&#148; &#147;seeks,&#148; &#147;estimates,&#148; &#147;will&#148; or words of
similar meaning and include, but are not limited to, statements about the expected future business
and financial performance of AREP and its subsidiaries. Among these risks and uncertainties are
changes in risks related to our oil and gas exploration and production operations, including costs
of drilling, completing and operating wells and the effects of regulation, risks related to our
casino gaming and associated hotel, restaurant and entertainment operations, including the effects
of regulation, substantial competition, rising operating costs and economic downturns, risks
related to our real estate activities including the extent of any tenant bankruptcies and
insolvencies, our ability to maintain tenant occupancy at current levels, our ability to obtain, at
reasonable costs, adequate insurance coverage, competition for investment properties, and other
risks and uncertainties detailed from time to time in our filings with the SEC. We undertake no
obligation to publicly update or review any forward-looking information, whether as a result of new
information, future developments or otherwise.</I>



<P align="left" style="font-size: 10pt"><I>WestPoint Safe Harbor Statement: Except for historical information contained herein, certain
matters set forth in this press release are &#147;forward-looking statements&#148; within the meaning of the
U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve
certain risks and uncertainties that could cause actual results to differ materially from those in
the forward-looking statements. Such risks and uncertainties may be attributable to important
factors that include but are not limited to the following: Product margins may vary from those
projected; Raw material prices may vary from those assumed; Additional reserves may be required for
bad debts, returns, allowances, governmental compliance costs, or litigation; There may be changes
in the performance of financial markets or fluctuations in foreign currency exchange rates;
Unanticipated natural disasters could have a material impact upon results of operations; There may
be changes in the general economic conditions that affect customer practices or consumer spending;
Competition for retail and wholesale customers, pricing and transportation of products may vary
from time to time due to seasonal variations or otherwise; Customer preferences for our products
can be affected by competition, or general market demand for domestic or imported goods or the
quantity, quality, price or delivery time of such goods; There could be an unanticipated loss of a
material customer or a material license; The availability and price of raw materials could be
affected by weather, disease, energy costs or other factors. The information contained in this
release is as of June&nbsp;30, 2005. WestPoint Stevens assumes no obligation to update any
forward-looking statements contained in this document as a result of new information or future
events or developments.</I>




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