<PAGE>   1
                                                                   EXHIBIT (10k)














                  RETIREMENT AGREEMENT BETWEEN JAMES D. NABORS

                    AND THE COMPANY DATED AS OF APRIL 1, 1998









                                      IV-8


<PAGE>   2




                              RETIREMENT AGREEMENT

         This RETIREMENT AGREEMENT is made and entered into as of the 30th day
of April, 1998, by and between JAMES D. NABORS, an individual ("Retiree"), and
RUSSELL CORPORATION, an Alabama corporation (the "Corporation").


                                  WITNESSETH:

         WHEREAS, the Corporation is engaged in the design, manufacture and
marketing of athletic and leisure clothing and fabrics, with its principal place
of business located in Alexander City, Alabama; and

         WHEREAS, Retiree has been employed by the Corporation for in excess of
27 years in various executive positions, most recently serving as its Executive
Vice President and Chief Financial Officer; and

         WHEREAS, the Corporation requested that Retiree retire, and Retiree
agreed to retire, from active employment by the Corporation upon the terms and
conditions set forth herein.

         NOW, THEREFORE, in consideration of the terms, conditions, covenants
and premises herein contained, it is mutually agreed by and between Retiree and
the Corporation as follows:

1.                Retirement. Effective April 30, 1998, Retiree retired from
         active employment by the Corporation.

2.                Compensation and Benefits.

         (a)               Retirement Compensation.

                  (1)               Commencing on May 1, 1998 and continuing
                           through April 30, 2000, Retiree shall be paid
                           retirement compensation of $27,666.67 per calendar
                           month (the "Retirement Compensation"), to be paid at
                           the times and in the manner specified in the
                           Corporation's general policies regarding the payment
                           of employment compensation as established from time
                           to time. The initial six monthly payments hereunder
                           shall be in full satisfaction of all amounts which
                           may be due Retiree under the Corporation's Salaried
                           Employees Severance Pay Plan. The Corporation further
                           agrees that (i) Retiree's 1998 bonus under the
                           Short-Term Incentive Plan component of the
                           Corporation's Executive Incentive Program shall be
                           computed and paid in accordance with the terms of the
                           Plan, prorated for the portion of fiscal year 1998
                           for which Retiree was employed by the Company. For
                           federal, state and local tax purposes, said
                           compensation shall be treated as "wages" and the
                           Corporation shall withhold



<PAGE>   3



                           all appropriate taxes therefrom and shall remit such
                           taxes, together with the taxes imposed by ss. 3111 of
                           the Internal Revenue Code of 1986 on the Corporation,
                           to the applicable taxing authorities; provided that
                           subject to the Corporation's obligation to withhold
                           and remit income tax on said compensation to the
                           applicable taxing authorities, Retiree shall be
                           responsible for and pay any additional income tax due
                           and owing thereon.

                  (2)               In addition, the Corporation shall cause
                           Retiree to accrue benefits under the Corporation's
                           Revised Pension Plan and Supplemental Retirement
                           Benefit Plan during the period commencing May 1, 1998
                           and ending on April 30, 2000, as if Retiree were
                           employed by the Corporation and received a monthly
                           salary equal to the monthly amount of the Retirement
                           Compensation during said period. If Retiree is
                           prohibited from participating in, or accruing such
                           benefit under, any such plans, the Corporation shall
                           provide Retiree comparable benefits outside such
                           plans. Retiree shall be responsible for and pay any
                           income taxes due or owing by Retiree as the result of
                           the Corporation's providing (i) participation and
                           coverage for Retiree, and where applicable, his
                           spouse, under such retirement plans, and (ii)
                           comparable benefits outside such retirement plans in
                           the event Retiree is prohibited from participating in
                           any such plans to the extent provided in this
                           subparagraph (2) of this Section 2(a).

         (b)               Continuation of Retirement Compensation upon Death of
                  Retiree Prior to April 30, 2000. If Retiree dies on or before
                  April 30, 2000, the Corporation shall continue to pay to
                  Retiree's spouse Marie T. Nabors, if she is living and was
                  married to Retiree at the time of Retiree's death, or if
                  Retiree's spouse Marie T. Nabors (i) is not living at the time
                  of Retiree's death or was not married to Retiree at the time
                  of Retiree's death, or (ii) Retiree's spouse Marie T. Nabors
                  should subsequently die, to Retiree's estate, amounts equal to
                  the remaining unpaid Retirement Compensation to be paid or
                  provided to Retiree under Paragraph (a)(1) of this Section 2,
                  which would have been paid to Retiree had he not died, with
                  said amounts to be paid as and when they would have been paid
                  to Retiree had he not died.

3.                Employee Benefits.

         (a)               Medical Plans. Until the end of the calendar month in
                  which Retiree's 65th birthday occurs, Retiree shall, in the
                  same manner and at the same cost to him as would be applicable
                  to executives of the Corporation holding positions similar to
                  the position which Retiree held on the date of his retirement,
                  continue participation and coverage for himself and, where
                  applicable, his spouse under the following employee and fringe
                  benefit plans and policies of the Corporation in which he
                  participated at the time of his retirement, as, and to the
                  extent, such plans or policies may hereafter from time to time
                  be in effect: i.e., the Corporation's (i) Group Health Plan,
                  (ii) Cancer 


                                      -2-
<PAGE>   4

                  Expense Protection Plan, and (iii) Dental Insurance Plan;
                  provided that if prior to the end of the calendar month in
                  which his 65th birthday occurs, Retiree is employed by another
                  entity offering a group health insurance plan in which Retiree
                  employees of such employer, the Corporation shall no longer be
                  obligated to permit Retiree, and his spouse, if applicable, to
                  participate in any of the foregoing plans of the Corporation,
                  except as otherwise provided in paragraph (b) of this Section
                  3. If Retiree is prohibited from participating in any such
                  plan or policy under the terms of such policy or applicable
                  law, the Corporation shall provide Retiree comparable benefits
                  outside such plan or policy.

         (b)               Retiree Fringe Benefit Plans. Retiree shall, in the
                  same manner and cost to him as is applicable to other retirees
                  of the Corporation who are retired on the date hereof
                  ("Existing Retirees"), be permitted to participate and obtain
                  coverage for himself and, where applicable, his spouse under
                  such employee and fringe benefit plans and policies of the
                  Corporation as Existing Retirees of the Corporation are
                  permitted to participate, as, and to the extent, such plans or
                  policies may hereafter from time to time be in effect with
                  respect to the Existing Retirees.

         (c)               Taxes. Retiree shall be responsible for and pay any
                  income taxes due or owning by Retiree as the result of the
                  Corporation's providing (i) participation and coverage for
                  Retiree, and where applicable, his spouse, under the plans and
                  policies designated in this Section 3 and (ii) comparable
                  benefits outside such plans and policies in the event Retiree
                  is prohibited from participating in any such plans or
                  policies.

4.                Pension Benefits.

         (a)               Retiree shall be entitled to receive, and this
                  Agreement shall not affect, Retiree's benefits payable under
                  the Corporation's Revised Pension Plan, 401(k) Retirement
                  Savings Plan and Supplemental Retirement Benefit Plan, which
                  benefits shall be paid at the times and in the manner as
                  Retiree has or may hereafter elect under the terms of said
                  plans. Notwithstanding the preceding sentence, Retiree may
                  elect to commence receiving benefits under said Plans
                  beginning on the 1st day of the calendar month following the
                  calendar month in which Retiree's 62nd birthday occurs, and
                  receive benefits under such plans determined as if Retiree
                  (and Retiree's spouse, if applicable) were the ages on such
                  beginning benefit date that Retiree (and Retiree's spouse, if
                  applicable) would have been at the end of the calendar month
                  in which Retiree's 65th birthday will occur. If the
                  Corporation is prohibited from paying benefits in such amounts
                  under any such plans, the Corporation shall provide Retiree
                  comparable benefit payments or supplemental payments outside
                  such Plans.


                                      -3-
<PAGE>   5

         (b)      To the extent the provisions of Section 2(a)(2) and Section 4
                  of this Agreement constitute an "employee benefit plan" under
                  the Employee Retirement Income Security Act of 1974, as
                  amended, the claims procedure for such "employee benefit plan"
                  shall be the claims procedure under the Corporation's
                  Supplemental Executive Retirement Plan.


5.                Exercise of Stock Options. Effective upon Retiree's retirement
         from the active employment by the Corporation, all options granted by
         the Corporation to Retiree for the purchase of the Corporation's stock
         pursuant to the Corporation's 1993 Executive Long-Term Incentive Plan
         (the "1993 Plan"), or any predecessor stock option plan sponsored by
         the Corporation, were immediately vested and non-cancelable, and may be
         exercised by Retiree at any time on or before April 30, 2001 in the
         manner specified in the 1993 Plan or predecessor stock option plan. The
         Corporation acknowledges that Retiree possesses the following options
         to purchase shares of the Corporation's common stock:

                           [Correct dates, amounts and prices to be inserted or
                           verified - I have obtained this information from
                           proxy statements and the numbers tie to the year end
                           1997 tables in the 1998 Proxy Statement]

                  (1)               Option dated July 24, 1991, to purchase
                           [10,000] shares of the Corporation's common stock at
                           a price of $26.375 per share.

                  (2)               Option dated July 28, 1993, to purchase
                           [6,400] shares of the Corporation's common stock at a
                           price of $27.50 per share.

                  (3)               Option dated January 26, 1994, to purchase
                           [6,800] shares of the Corporation's common stock at a
                           price of $27.4375 per share.

                  (4)               Option dated January 25, 1995, to purchase
                           [6,600] shares of the Corporation's common stock at a
                           price of $30.00 per share.

                  (5)               Option dated January 24, 1996, to purchase
                           [7,200] shares of the Corporation's common stock at a
                           price of $27.25 per share.

                  (6)               Option dated January 22, 1997, to purchase
                           [6,900] shares of the Corporation's common stock at a
                           price of $30.875 per share.

                  (7)               Option dated January 28, 1998, to purchase
                           [8,900] shares of the Corporation's common stock at a
                           price of $24.375 per share.

6.                Covenant Not to Compete. Commencing upon the execution of this
         Agreement and continuing through April 30, 2000, Retiree shall not,
         directly or indirectly, individually or as a partner, corporate
         employee, member, stockholder (other than as a shareholder of less than

                                      -4-
<PAGE>   6

         1% of a corporation whose shares are listed on a national or regional
         securities exchange or have been registered under Section 12(g) of the
         Securities Exchange Act of 1934), officer, director, consultant or
         advisor, work for or lend assistance to a competitor of the Corporation
         engaged in manufacturing, marketing, selling or distributing
         activewear, athletic uniforms, knit shirts, socks, uniform fabrics or
         licensed sports apparel, or solicit any business from any customer of
         the Corporation for or on behalf of any such competitor of the
         Corporation. It is further agreed that due to the irreparable injury
         and damage to the Corporation resulting from Retiree's violation of
         this covenant, the Corporation will be entitled to injunctive relief
         against the violation by Retiree of this covenant in addition to all
         other remedies otherwise available to the Corporation. If any court of
         competent jurisdiction should hold that the restrictions contained in
         this Section 7 are unreasonable, said restrictions shall be deemed to
         be reduced, but only to the extent necessary, in the opinion of said
         court, to make them reasonable.

7.                Confidential Information. Retiree agrees that all confidential
         information that comes into his possession by reason of his employment
         by the Corporation is the property of the Corporation. Retiree shall
         not, during the term of this Agreement or thereafter, disclose or
         acknowledge the content of any confidential information to any person
         other than an employee of the Corporation who is authorized to possess
         such confidential information or Retiree's advisors, such as
         accountants or attorneys. For the purposes of this Section 8,
         "confidential information" shall include all information relating to
         the operations of the Corporation which has not been specifically
         designated for release to the public by an authorized representative of
         the Corporation, including, without limitation, trade secrets, plans,
         pricing information, customer lists and other information developed by
         or originated by the Corporation for its own use.

8.                Offers to Personnel. Retiree acknowledges that the employees
         of the Corporation have been and will be trained at great expense by
         the Corporation, and the Corporation has a compelling interest in
         maintaining its contractual relationship and expectation of future
         contractual relationship with its employees. In addition, if the
         employees of the Corporation were to terminate their relationship with
         the Corporation and render services to Retiree, Retiree would be
         unfairly benefitted without adequate compensation to the Corporation,
         by the investment of the Corporation. Accordingly, Retiree covenants
         that he shall not from the date hereof through April 30, 2000, directly
         or indirectly, impair or initiate any attempt to impair the
         relationship or expectancy of a continuing relationship which exists or
         will exist between the Corporation and its employees or make offers or
         contracts of employment or offers or contracts for services with such
         employees or with any partnership, corporation or association through
         which such employees may render services or employment to Retiree.

9.                Resignation as Director and Trustee. Retiree hereby resigns,
         effective immediately, as a director of the Corporation and as a
         trustee under the Corporation's Revised Pension Plan and under all
         other employee benefit plans or trusts, if any, of which he serves as
         trustee or other fiduciary.

                                      -5-
<PAGE>   7

10.               Release and Indemnification. The Corporation, on its own
         behalf and on behalf of its subsidiaries, affiliates, successors and
         assigns, (i) releases, acquits and forever discharges Retiree, his
         successors, assigns and personal representatives, for any and all
         claims, actions, causes of actions, demands, damages, costs and
         expenses whatsoever, which the Corporation, or anyone acting by it or
         on its behalf, has, may have or which may hereafter accrue, and (ii)
         agrees to defend and indemnify Retiree, his successors, assigns and
         personal representatives, against and hold them harmless from any and
         all claims, actions, causes of action, demands, costs and expenses
         whatsoever, which in any way arise out of or relate to Retiree's
         service as a trustee of any employee benefit or retirement plan
         sponsored by the Corporation.

11.               Notices. Any notice required or permitted to be given under
         this Agreement shall be in writing and placed in the United States
         Certified Mail, addressed to the party entitled to receive said notice,
         at the following addresses:

         (a)               If to Retiree:

                           James D. Nabors
                           1695 Magnolia
                           Alexander City, Alabama 35010

         (b)               If to the Corporation:

                           Russell Corporation
                           755 Lee Street
                           P. O. Box 272
                           Alexander City, Alabama 35011-0272

or at such other address as may be specified from time to time in notices given
in accordance with the provisions of this Section 12.

12.               Assignment. Neither this Agreement, nor the rights or
         obligations of any party hereunder, may be assigned without the prior
         written consent of the other party; provided that in the event the
         Corporation is merged into another corporation or all or substantially
         all of the Corporation's assets are transferred to another corporation,
         such other corporation shall assume all of the obligations of the
         Corporation hereunder, and such transaction shall not require the
         consent of Retiree for the rights of the Corporation hereunder to be
         assigned to such other corporation.

13.               Waiver of Breach. The waiver by any party hereto of a breach
         of any provision of this Agreement shall not operate or be construed as
         a waiver of any subsequent breach by any party.

                                      -6-
<PAGE>   8

14.               Section Headings. The headings of the sections of this
         Agreement are solely for the purpose of convenience and are not a part
         hereof, and shall not be used in the construction or interpretation of
         any provision.

15.               Modifications. This Agreement may not be changed or modified,
         nor may any provision hereof be waived, except by an agreement in
         writing executed by the party against whom enforcement of the change,
         modification or waiver is asserted.

16.               Succession. This Agreement shall inure to the benefit of and
         be binding upon the parties hereto and their heirs, personal
         representatives, successors and assigns.

17.               Governing Law. To the extent not preempted by federal law,
         this Agreement shall be construed and interpreted under, and the rights
         and obligations of the parties hereunder shall be controlled and
         governed by, the laws of the State of Alabama.

18.               Execution of Release; Effect on Agreement. Concurrently with
         the execution and delivery of this Agreement by the parties hereto, and
         in consideration of the Corporation's delivery hereof, the Retiree is
         executing and delivering in favor of the Corporation a Release as to
         certain matters. This Agreement shall not become effective until ten
         days following the date of execution and delivery of said Release. In
         the event of the revocation of said Release by the Retiree in
         accordance with the provisions thereof, this Agreement shall be null
         and void and shall be of no further force and effect.

19.               Severability. Should any court of competent jurisdiction
         decide, hold, adjudge or decree that any provision, paragraph, clause
         or term of this Agreement is void or unenforceable in whole or as
         applied in a particular situation, such determination shall not effect
         any other provision of this Agreement, and all other provisions of this
         Agreement shall remain in full force and effect in such situation, and
         all provisions of this Agreement shall remain in full force and effect
         in any and all other situations.

         IN WITNESS WHEREOF, Retiree and the Corporation have executed, or
caused to be executed, this Agreement on December 7, 1998, but as of
the date herein first above written.


                                                     "RETIREE"

/s/ Steve R. Forehand                               /s/ James D. Nabors
-----------------------------------                 --------------------------
Witness                                              James D. Nabors


                                      -7-
<PAGE>   9


                                               "EMPLOYER"

ATTEST:                                        RUSSELL CORPORATION, AN ALABAMA
                                               CORPORATION



By /s/ Steve R. Forehand                       By /s/ John F. Ward            
  ----------------------------                   -------------------------------
   Its Secretary                                  Its  Chairman, President & CEO
                                                      --------------------------



                                      -8-