TAYLOR ANN STORES CORP
EXHIBIT 10.2
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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 10.2<BR><BR></FONT><P>
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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>AMENDED AND RESTATED <BR>
TAX SHARING AGREEMENT </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amended
and Restated Tax Sharing Agreement (the &#147;Agreement&#148;) dated as of November 10,
2003, by and between AnnTaylor Stores Corporation, formerly AnnTaylor Holdings Inc.
(&#147;Stores&#148;), a Delaware corporation, and AnnTaylor, Inc. (&#147;ATI&#148;), a
Delaware Corporation. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
Stores is the parent of the affiliated group, within the meaning of Section 1504(a) of the
Internal Revenue Code of 1986, as amended (the &#147;Code&#148;), including Stores, ATI,
AnnTaylor Retail, Inc., Annco, Inc., AnnTaylor Distribution Services, Inc. and AnnTaylor
Travel Services, Inc. (and any future subsidiary of ATI)(collectively the
&#147;Group&#148;); </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
Stores and ATI are parties to a Tax Sharing Agreement, dated as of July 12, 1989 (the
&#147;Original Agreement&#148;); </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
Stores and ATI desire to amend and restate the Original Agreement to update certain
provisions for the payment of tax liabilities and the allocation of responsibility for the
preparation and filing of tax returns. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW,
THEREFORE, in consideration of the mutual promises and covenants contained herein, the
parties hereto agree as follows: </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;
          For purposes of this Agreement, the term &#147;Taxes&#148; means all taxes,
          levies or other like assessments, charges or fees, including, without
          limitation, income, gross receipts, excise, real or personal property, sales,
          use, license, capital, net worth and franchise taxes, and other governmental
          taxes imposed by or payable to the United States, or any state, county, local or
          foreign government or subdivision or agency thereof; and in each instance such
          term shall include any interest, penalties or additions to tax attributable to
          any such Tax. For purposes of this Agreement, the term &#147;Tax Return&#148;
          shall mean any report, return, declaration or other information required to be
          supplied to any tax authority with respect to Taxes. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
2.&nbsp;&nbsp;&nbsp;&nbsp;
          Stores and ATI shall elect to file a consolidated federal income Tax Return and
          may elect to file a consolidated or combined Tax Return in any state, local or
          other relevant jurisdiction that permits such a return to be filed
          (collectively, the &#147;Consolidated Tax Returns&#148;). ATI shall cause any
          subsidiary of ATI to join in such elections. </FONT></P>




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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
3.&nbsp;&nbsp;&nbsp;&nbsp;
          ATI shall prepare and file, or cause to be prepared and filed, all Consolidated
          Tax Returns for all taxable periods of the Group. ATI shall prepare and file, or
          cause any subsidiary of ATI to prepare and file, all Tax Returns required to be
          filed in any taxing authority that does not permit the filing of Consolidated
          Tax Returns or permits the filing of such returns but Stores and ATI do not
          elect to file such returns (collectively, the &#147;Separate Tax Returns&#148;)
          for all such taxable periods, as necessary. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
4.&nbsp;&nbsp;&nbsp;&nbsp;
          ATI shall pay an amount equal to the Taxes shown to be due on the Consolidated
          Tax Returns described in Section 2 of this Agreement, on or before the date on
          which the payment of any such Taxes is due. Each member&#146;s portion of the
          tax liability of the Group shall be determined under Regulation Section
          1.1552-1(a) (1) (ii) of the Internal Revenue Code of 1986, as the ratio which
          that portion of the consolidated taxable income attributable to each member of
          the group having taxable income bears to the sum of the taxable income of all
          the members. Any adjustment of income, deduction or credit that results after
          the taxable period in question by reason of any carry back, amended return,
          claim for refund or audit shall be given effect by re-determining the amounts
          payable hereunder for such taxable period and all subsequent taxable periods for
          which this Agreement is in effect. An adjustment, together with interest, shall
          be made promptly by ATI to reflect such revised treatment. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
5.&nbsp;&nbsp;&nbsp;&nbsp;
          ATI will pay the Taxes shown to be due on the respective Separate Tax Returns
          described in Section 3 of this Agreement on or before the date on which the
          payment of any such Taxes is due. Each member of the Group shall settle its
          portion of the tax liability incurred by ATI on its behalf no later than one
          month after the end of each fiscal quarter. This may be done by an offset to the
          appropriate inter-company account, or by any other acceptable means. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
6.&nbsp;&nbsp;&nbsp;&nbsp;
          This Agreement shall constitute the entire agreement between the parties with
          respect to the subject matter hereof and shall supersede all previous
          negotiations, commitments and writings with respect to such subject matter. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
7.&nbsp;&nbsp;&nbsp;&nbsp;
          This Agreement shall be governed by and construed in accordance with the laws of
          the State of New York, without regard to the principles of conflicts of law
          thereof. </FONT></P>




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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
8.&nbsp;&nbsp;&nbsp;&nbsp;
          This Agreement may not be superseded, cancelled, extended, modified or amended
          except by an agreement in writing signed by the parties. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
9.&nbsp;&nbsp;&nbsp;&nbsp;
          This Agreement and all of the provisions hereof shall be binding upon and inure
          to the benefit of the parties and their respective successors. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
10.&nbsp;&nbsp;&nbsp;&nbsp;
          Any provision of this Agreement which is prohibited or unenforceable in any
          jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
          such prohibition or unenforceability without invalidating the remaining
          provisions hereof. Any such prohibition or unenforceability in any jurisdiction
          shall not invalidate or render unenforceable such provision in any other
          jurisdiction. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF the parties hereto execute this Agreement as of the date first above
written. </FONT></P>


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     <TD WIDTH=10% ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
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     <TD WIDTH=38% ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>ANNTAYLOR STORES CORPORATION</FONT></TD>
     <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2></FONT></TD><TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>/s/James Smith</FONT><HR NOSHADE SIZE=1 COLOR=BLACK WIDTH=60%></TD>
<TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
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<TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>By: James Smith</FONT></TD>
<TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Title:Chief Financial Officer</FONT></TD>
<TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
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     <TD WIDTH=38% ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>ANNTAYLOR, INC.</FONT></TD>
     <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
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<TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>/s/Sallie A. DeMarsilis</FONT><HR NOSHADE SIZE=1 COLOR=BLACK WIDTH=60%></TD><TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>By: Sallie A. DeMarsilis</FONT></TD><TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Title:VP &amp; Controller</FONT></TD><TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
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