Document:

<PAGE>
                                                                    EXHIBIT 10.1

                             AMENDMENT NUMBER THREE
                         TO LOAN AND SECURITY AGREEMENT

      This AMENDMENT NUMBER THREE TO LOAN AND SECURITY AGREEMENT (the
"Amendment") is entered into as of February 13, 2002, between and among, on the
one hand, the lenders identified on the signature pages hereof (such lenders,
together with their respective successors and assigns, are referred to
hereinafter each individually as a "Lender" and collectively as the "Lenders"),
FOOTHILL CAPITAL CORPORATION, a California corporation, as the arranger and
administrative agent for the Lenders ("Agent"), and, on the other hand, HYPERCOM
CORPORATION, a Delaware corporation ("Parent"), and each of Parent's
Subsidiaries identified on the signature pages hereof (such Subsidiaries are
referred to hereinafter each individually as a "Borrower", and individually and
collectively, jointly and severally, as the "Borrowers"), with reference to the
following:

      WHEREAS, Borrowers and Parent previously entered into that certain Loan
and Security Agreement, dated as of July 31, 2001, as amended by Amendment
Number One to Loan and Security Agreement dated October 3, 2001, and by
Amendment Number Two to Loan and Security Agreement dated November 13, 2001 (as
the same may be further amended, restated, supplemented, or otherwise modified
from time to time, the "Loan Agreement"), with Agent and Lenders pursuant to
which Lenders have made certain loans and financial accommodations available to
Borrowers and Parent;

      WHEREAS, the Borrowers and Parent have requested that Agent and the
Lenders amend certain provisions of the Loan Agreement as provided herein; and

      WHEREAS, Agent and the Lenders are willing to amend the Loan Agreement in
accordance with the terms and conditions hereof.

      NOW, THEREFORE, in consideration of the foregoing and the mutual covenants
herein contained, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereby agree as
follows:

      1.    Defined Terms. All terms used herein and not otherwise defined shall
have the meanings ascribed thereto in the Loan Agreement.

      2.    Amendments To The Agreement.

            (a)   Section 1.1 of the Loan Agreement is amended by adding the
following defined terms:

            "Preferred Stock" means, as applied to the capital stock of any
            Person, the capital stock of any class or classes (however
            designated) that is preferred as to the payment of dividends, or as
            to the distribution of assets upon any voluntary or involuntary
            liquidation or dissolution of such Person, over shares of capital
            stock of any other class of such Person.
<PAGE>
            "Prohibited Preferred Stock" means any Preferred Stock that by its
            terms is mandatorily redeemable or subject to any other payment
            obligation (including any obligation to pay dividends, other than
            dividends of shares of Preferred Stock of the same class and series
            payable in kind or dividends of shares of common stock) on or before
            a date that is more than one year after the Maturity Date, or, on or
            before the date that is more than one year after the Maturity Date,
            is redeemable at the option of the holder thereof for cash or assets
            or securities (other than distributions in kind of shares of
            Preferred Stock of the same class and series or of shares of common
            stock).

            (b)   Section 3.2(g) of the Loan Agreement hereby is amended and
restated in its entirety to read as follows:

            "(g)  no later than February 28, 2002, Parent and the Borrowers
      shall, pursuant to Section 3(e) of the Stock Pledge Agreement, deliver
      evidence satisfactory to Agent that the pledged interest in all
      uncertificated stock has been registered on the applicable stock ledger
      books and records of each of such pledged entity;"

            (c)   The following Sections 3.2(h) and 3.2(i) are hereby added to
the Loan Agreement immediately following Section 3.2(g) thereto:

            "(h)  no later than February 28, 2002, Parent and the Borrowers
      shall:

                  (i)   deliver such agreements, instruments or other documents
      as any Initial Lender may reasonably request in order to subject to valid
      and enforceable liens in favor of the Agent, for the benefit of the
      Lenders, on (A) the accounts receivables of Hypercom do Brasil Industria e
      Comercio Limitada, (B) the inventory of Schalter Eletronica Limitada,
      Netset SP Tecnologia e Servicos em Teleinformatica Limitada and Hypercom
      do Brasil Industria e Comercio Limitada and (C) the assets of Hypercom
      EMEA located in the U.K., each in a form that is valid and effective in
      accordance with applicable law;

                  (ii)  deliver such agreements, instruments or other documents
      as any Initial Lender may reasonably request in order to pledge the stock
      of (a) Hypercom Electronic Manufacturing (Shenzhen) Co. Ltd.; (b) Hypercom
      Argentina S.A.; and (c) Hypercom Gmbh in favor of the Agent, for the
      benefit of the Lenders, in a form that is valid and enforceable in
      accordance with applicable law; and

                  (iii) provide, at the expense of the Borrowers, a legal
      opinion, in form and substance satisfactory to the Initial Lenders, from
      Brazilian counsel selected by the Initial Lenders, addressed to the
      Initial Lenders, among other things, that the accounts receivables and
      inventory of Hypercom do Brasil Industria e Comercio Limitada are subject
      to valid and enforceable liens of the

                                       2
<PAGE>
      Agent, for the benefit of the Lenders, and as to such other matters as the
      Initial Lenders may reasonably request; and

                  (iv)  simultaneously with title passing on the Brazilian
      Atibaia plant to Parent or any of its Subsidiaries, Borrower and Parent
      will deliver such agreements, instruments or other documents as any
      Initial Lender may reasonably request in order to subject such plant to
      valid and perfected second lien of the Agent for the benefit of the
      Lenders."

            (d)   Schedule 5.8(c) to the Loan Agreement is amended in its
entirety by the schedule attached hereto as Exhibit A.

            (e)   Schedule A to the Stock Pledge Agreement is amended in its
entirety by the schedule attached hereto as Exhibit B.

      3.    Waiver.

            (a)   The Borrowers and Parent hereby acknowledge that in violation
of Section 3.2(g) of the Loan Agreement (prior to the effectiveness of this
Amendment) Borrowers have failed to deliver to the Initial Lenders certain
required deliveries required to be made by the terms thereof (the "Designated
Events of Default").

            (b)   Subject to the receipt by Agent and Lenders of this Amendment
duly executed by the Borrowers and Parent and the satisfaction of the conditions
precedent set forth in Section 4, and anything in the Loan Agreement or the
other Loan Documents to the contrary notwithstanding, the Agent and the Lenders
hereby waive the Designated Events of Default.

      4.    Conditions Precedent. The satisfaction of each of the following,
unless waived or deferred in writing by the Agent and the Lenders in their sole
discretion, shall constitute conditions precedent to the effectiveness of this
Amendment and each and every provision hereof:

            (a)   the Agent shall have received this Amendment, duly executed by
the parties hereto, and the same shall be in full force and effect;

            (b)   other than as waived hereby, no Default or Event of Default
shall have occurred and be continuing on the date hereof, or shall result from
the consummation of the transactions contemplated herein;

            (c)   other than as waived hereby, each of the representations and
warranties contained in the Loan Agreement shall be true and correct in all
respects on and as of the effectiveness hereof, as though made on and as of such
date; and

            (d)   no injunction, writ, restraining order, or other order of any
nature prohibiting, directly or indirectly, the consummation of the transactions
contemplated herein shall have been issued and remain in force by any
governmental authority against any party hereto.

                                       3
<PAGE>
      5.    Representations and Warranties. Each of the Borrowers and the Parent
hereby represents and warrants to the Agent and the Lenders that (a) the
execution, delivery, and performance of this Amendment and of the Loan
Agreement, as amended hereby, are within its powers, have been duly authorized
by all necessary action, and are not in contravention of any law, rule, or
regulation, or any order, judgment, decree, writ, injunction, or award of any
arbitrator, court, or Governmental Authority, or of the terms of its Governing
Documents, or of any contract or undertaking to which it is a party or by which
any of its properties may be bound or affected, (b) this Amendment and the Loan
Agreement, as amended hereby, constitute its legal, valid, and binding
obligation, enforceable against it in accordance with its terms, and (c) this
Amendment has been duly executed and delivered by it.

      6.    Choice of Law and Venue; Jury Trial Waiver. This Amendment shall be
governed by and construed in accordance with the laws of the State of
California. The parties hereto agree that the provisions of Section 13 of the
Loan Agreement are hereby incorporated herein by this reference mutatis
mutandis.

      7.    Counterparts; Telefacsimile Execution. This Amendment may be
executed in any number of counterparts and by different parties and separate
counterparts, each of which when so executed and delivered, shall be deemed an
original, and all of which, when taken together, shall constitute one and the
same instrument. Delivery of an executed counterpart of a signature page to this
Amendment by telefacsimile shall be effective as delivery of a manually executed
counterpart of this Amendment. Any party delivering an executed counterpart of
this Amendment by telefacsimile also shall deliver a manually executed
counterpart of this Amendment, but the failure to deliver a manually executed
counterpart shall not affect the validity, enforceability, and binding effect of
this Amendment.

      8.    Effect on Loan Documents.

            (a)   The Loan Agreement, as amended hereby, and each of the other
Loan Documents shall be and remain in full force and effect in accordance with
its respective terms and hereby is ratified and confirmed in all respects. The
execution, delivery, and performance of this Amendment shall not, except as
expressly set forth herein, operate as a waiver of or, except as expressly set
forth herein, as an amendment of, any right, power, or remedy of Agent or any
Lender under the Loan Agreement, as in effect prior to the date hereof. The
waivers, consents, and modifications herein are limited to the specifics hereof,
shall not apply with respect to any facts or occurrences other than those on
which the same are based, shall not excuse future non-compliance with the Loan
Agreement, and shall not operate as a consent to any further or other matter,
under the Loan Documents.

            (b)   Upon and after the effectiveness of this Amendment, each
reference in the Loan Agreement to "this Agreement", "hereunder", "herein",
"hereof" or words of like import referring to the Loan Agreement, and each
reference in the other Loan Documents to "the Agreement", "thereunder",
"therein", "thereof" or words of like

                                       4
<PAGE>
import referring to the Loan Agreement, shall mean and be a reference to the
Loan Agreement as modified and amended hereby.

            (c)   To the extent that any terms and conditions in any of the Loan
Documents shall contradict or be in conflict with any terms or conditions of the
Loan Agreement, after giving effect to this Amendment, such terms and conditions
are hereby deemed modified or amended accordingly to reflect the terms and
conditions of the Loan Agreement as modified or amended hereby.

      9.    Further Assurances. Each of the Borrowers and Parent shall execute
and deliver all agreements, documents, and instruments, in form and substance
satisfactory to Agent, and take all actions as Agent may reasonably request from
time to time, to perfect and maintain the perfection and priority of Agent's
security interests in the Collateral (for the benefit of the Lenders) and to
fully consummate the transactions contemplated under this Amendment and the Loan
Agreement.

      10.   Entire Agreement. This Amendment, together with all other
instruments, agreements, and certificates executed by the parties in connection
herewith or with reference thereto, embody the entire understanding and
agreement between the parties hereto and thereto with respect to the subject
matter hereof and thereof and supersede all prior agreements, understandings,
and inducements, whether express or implied, oral or written.

      11.   Costs and Expenses. The Borrowers shall pay all out-of-pocket costs
and expenses of the Initial Lenders (including, without limitation, the fees and
expenses of counsel to the Initial Lenders) in connection with this Amendment
(including, without limitation, in connection with each of the conditions
subsequent described in Section 3.2 of the Loan Agreement (as amended hereby)).

                  [Remainder of page intentionally left blank]

                                       5
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this Amendment Number
Three to Loan and Security Agreement to be executed and delivered as of the date
first above written.

PARENT:

HYPERCOM CORPORATION,
a Delaware corporation

By:  /s/ Jonathon  E. Killmer
Name:  Jonathon E. Killmer
Title: Executive VP & COO

BORROWERS:

HYPERCOM U.S.A., INC.,                   HYPERCOM MANUFACTURING RESOURCES, INC.,
a Delaware corporation                   an Arizona corporation

By:  /s/ Jonathon  E. Killmer            By:  /s/ Jonathon  E. Killmer
Name:  Jonathon  E. Killmer              Name:  Jonathon E. Killmer
Title: Secretary                         Title: Secretary

HYPERCOM HORIZON, INC.,                  EPICNETZ, INC.,
a Missouri corporation                   a Nevada corporation

By:  /s/ Jonathon  E. Killmer            By:  /s/ Jonathon  E. Killmer
Name:  Jonathon  E. Killmer              Name:  Jonathon E. Killmer
Title: Secretary                         Title: Secretary
<PAGE>
Signature page to Amendment Number Three to Loan and Security Agreement
(continued)

BORROWERS (continued)

HYPERCOM LATINO AMERICA, INC.,           HYPERCOM EMEA, INC.,
an Arizona corporation                   an Arizona corporation

By:  /s/ Jonathon  E. Killmer            By:  /s/ Jonathon  E. Killmer
Name:  Jonathon  E. Killmer              Name:  Jonathon  E. Killmer
Title: Secretary                         Title: Secretary

HYPERCOM (ARIZONA), INC.,
an Arizona corporation

By:  /s/ Jonathon  E. Killmer
Name:  Jonathon  E. Killmer
Title: Secretary

LENDERS:

FOOTHILL CAPITAL CORPORATION,            ABLECO FINANCE LLC,
a California corporation, as Agent       a Delaware limited liability company,
and as a Lender                          as a Lender

By: /s/ John Nocita                      By:   /s/ Kevin P. Genda
Name:  John Nocita                       Name:  Kevin P. Genda
Title: Vice President                    Title: SVP & Chief Credit Officer<PAGE>
                                                                   Exhibit 10.73

                                 AMENDMENT NO. 9

         THIS AMENDMENT NO. 9 (this "Amendment"), dated as of January 24, 2002,
                                     ---------
is by and among GALEY & LORD, INC., a Delaware corporation (the "Borrower"),
                                                                 --------
GALEY & LORD INDUSTRIES, INC., a Delaware corporation ("G&L Industries"), the
                                                        --------------
other Domestic Subsidiaries of the Borrower (each a "Guarantor", and together
                                                     ---------
with G&L Industries, the "Guarantors"), the Lenders identified on the signature
                          ----------
pages hereto (the "Lenders") and FIRST UNION NATIONAL BANK, as Agent for the
                   -------
Lenders (the "Agent").
              -----

                              W I T N E S S E T H:

         WHEREAS, pursuant to the Credit Agreement dated as of January 29, 1998,
as amended from time to time prior to the date hereof (the "Existing Credit
                                                            ---------------
Agreement") among the Borrower, the Guarantors, the Lenders and the Agent, the
---------
Lenders have extended commitments to make certain credit facilities available to
the Borrower;

         WHEREAS, the parties hereto have agreed to amend the Existing Credit
Agreement as set forth herein;

         NOW, THEREFORE, in consideration of the agreements herein contained,
the parties hereby agree as follows:

                                     PART I
                                  DEFINITIONS

         SUBPART 1.1. Certain Definitions. Unless otherwise defined herein or
                      -------------------
the context otherwise requires, the following terms used in this Amendment,
including its preamble and recitals, have the following meanings:

                  "Amended Credit Agreement" means the Existing Credit Agreement
                   ------------------------
as amended hereby.

                  "Amendment No. 9 Effective Date" is defined in Subpart 3.1.
                   ------------------------------                -----------

         SUBPART 1.2. Other Definitions. Unless otherwise defined herein or the
                      -----------------
context otherwise requires, terms used in this Amendment, including its preamble
and recitals, have the meanings provided in the Amended Credit Agreement.

                                    PART II
                     AMENDMENTS TO EXISTING CREDIT AGREEMENT

         Effective on (and subject to the occurrence of) the Amendment No. 9
Effective Date, the Existing Credit Agreement is hereby amended in accordance
with this Part II. Except as so amended, the Existing Credit Agreement shall
continue in full force and effect.

<PAGE>

         SUBPART 2.1.      Section 1.1.
                           -----------

                  (a) The following definitions appearing in Section 1.1 of the
Existing Credit Agreement are amended and restated in their entireties to read
as follows:

                  "Loan" shall mean an Overadvance Loan, a Revolving Loan, a
                   ----
         Swingline Loan and/or the Term Loans, as appropriate.

                  "Mandatory Borrowing" shall have the meaning set forth in
                   -------------------
         Section 2.1A(b)(ii), Section 2.3(b)(ii) or Section 2.4(e).

                  "Note" or "Notes" shall mean the Overadvance Note, the
                   ----      -----
         Revolving Notes, the Swingline Note and/or the Term Notes,
         collectively, separately or individually, as appropriate.

                  (b) The following new definitions are hereby added to Section
1.1 of the Existing Credit Agreement in the appropriate alphabetical order to
read as follows:

                  "Overadvance Commitment" shall mean the commitment of the
                   ----------------------
         Overadvance Lender to make Overadvance Loans in an aggregate principal
         amount at any time outstanding up to the Overadvance Committed Amount,
         and the commitment of the Lenders to purchase participation interests
         in the Overadvance Loans as provided in Section 2.1A(b)(ii), as such
         amounts may be reduced from time to time in accordance with the
         provisions hereof.

                  "Overadvance Committed Amount" shall mean the amount of the
                   ----------------------------
         Overadvance Lender's Overadvance Commitment as specified in Section
         2.1A(a).

                  "Overadvance Lender" shall mean First Union, in its capacity
                   ------------------
         as such.

                  "Overadvance Loans" shall have the meaning set forth in
                   -----------------
         Section 2.1A.

                  "Overadvance Note" shall mean the promissory note of the
                   ----------------
         Borrower in favor of the Overadvance Lender evidencing the Overadvance
         Loans provided pursuant to Section 2.1A(d), as such promissory note may
         be amended, modified, supplemented, extended, renewed or replaced from
         time to time.

                  "Overadvance Termination Date" shall mean February 22, 2002.
                   ----------------------------

         SUBPART 2.2. Revolving Loans. Article II of the Existing Credit
                      ---------------
Agreement is hereby amended by adding the following new Section 2.1A immediately
after Section 2.1:

                   Section 2.1A      Overadvance Loans.
                                     -----------------

                  (a) Overadvance Commitment. Until the Overadvance Termination
                      ----------------------
          Date, subject to the terms and conditions hereof, the Overadvance
          Lender, in its individual capacity, may, in its sole and absolute
          discretion, make certain revolving credit loans to the Borrower (each,
          an "Overadvance Loan" and collectively, the "Overadvance Loans")
              ----------------                         -----------------

2

<PAGE>

         for the purposes hereinafter set forth; provided, however, (i) the
                                                 -----------------
         aggregate amount of Overadvance Loans outstanding at any time shall not
         exceed $10,000,000 (the "Overadvance Committed Amount"), and (ii) the
                                  ----------------------------
         sum of the aggregate amount of outstanding Revolving Loans plus
                                                                    ----
         Swingline Loans plus LOC Obligations plus Overadvance Loans shall not
                         ----                 ----
         exceed the lesser of the aggregate Revolving Committed Amount then in
         effect and the Borrowing Base plus the Overadvance Committed Amount;
                                       ----
         and provided further that the Overadvance Lender may make the
             ----------------
         Overadvance Loans so long as the conditions specified in Section 4.2
         are then satisfied, other than any condition that fails to be satisfied
         solely as a result of the sum of the aggregate amount of outstanding
         Revolving Loans plus Swingline Loans plus LOC Obligations plus
                         ----                 ----                 ----
         Overadvance Loans (after giving effect thereto) exceeding the Borrowing
         Base. Overadvance Loans hereunder may be repaid and reborrowed in
         accordance with the provisions hereof.

                  (b)      Overadvance Loan Borrowings.
                           ---------------------------

                           (i) Notice of Borrowing and Disbursement. The
                               ------------------------------------
                  Overadvance Lender may, in its sole discretion, make
                  Overadvance Loans available to the Borrower on any Business
                  Day upon request made by the Borrower not later than 12:00
                  Noon (Charlotte, North Carolina time) on such Business Day. A
                  notice of request for Overadvance Loan borrowing shall be made
                  in the form of Schedule 2.1(b)(i) with appropriate
                                 ------------------
                  modifications. Overadvance Loan borrowings hereunder shall be
                  made in minimum amounts of $100,000 and in integral amounts of
                  $100,000 in excess thereof.

                           (ii) Repayment of Overadvance Loans. Each Overadvance
                                ------------------------------
                  Loan borrowing shall be due and payable on demand, and in any
                  event, no later than on the Overadvance Termination Date. The
                  Overadvance Lender may, at any time, in its sole discretion,
                  by written notice to the Borrower and the Agent, demand
                  repayment of its Overadvance Loans by way of a Revolving Loan
                  borrowing, in which case the Borrower shall be deemed to have
                  requested a Revolving Loan borrowing comprised entirely of
                  Alternate Base Rate Loans in the amount of such Overadvance
                  Loans; provided, however, that, in the following
                         --------  -------
                  circumstances, any such demand shall also be deemed to have
                  been given one Business Day prior to each of (i) the
                  Overadvance Termination Date, (ii) the occurrence of any Event
                  of Default described in Section 7.1(e), (iii) upon
                  acceleration of the Credit Party Obligations hereunder,
                  whether on account of an Event of Default described in Section
                  7.1(e) or any other Event of Default, and (iv) the exercise of
                  remedies in accordance with the provisions of Section 7.2
                  hereof (each such Revolving Loan borrowing made on account of
                  any such deemed request therefore as provided herein being
                  hereinafter referred to as a "Mandatory Borrowing"). Each
                                                -------------------
                  Lender hereby irrevocably agrees to make such Revolving Loans
                  promptly upon any such request or deemed request on account of
                  each Mandatory Borrowing in the amount and in the manner
                  specified in the preceding sentence and on the same such date
                  so long as the conditions specified in Section 4.2 are then
                  satisfied, but notwithstanding (I) the amount of Mandatory
                                 ---------------
                  Borrowing may not comply with the

3

<PAGE>
                  minimum amount for borrowings of Revolving Loans otherwise
                  required hereunder, (II) failure of any such request or deemed
                  request for Revolving Loans to be made by the time otherwise
                  required in Section 2.1(b)(i), (III) the date of such
                  Mandatory Borrowing, or (IV) any reduction in the Revolving
                  Committed Amount or termination of the Revolving Commitments
                  immediately prior to such Mandatory Borrowing or
                  contemporaneously therewith. In the event that any Mandatory
                  Borrowing cannot for any reason be made on the date otherwise
                  required above (including, without limitation, as a result of
                  the commencement of a proceeding under the Bankruptcy Code
                  with respect to the Borrower or as a result of the failure of
                  the conditions in Section 4.2 to be satisfied), then each
                  Lender hereby agrees that it shall forthwith purchase (as of
                  the date the Mandatory Borrowing would otherwise have
                  occurred, but adjusted for any payments received from the
                  Borrower on or after such date and prior to such purchase)
                  from the Overadvance Lender such participations in the
                  outstanding Overadvance Loans as shall be necessary to cause
                  each such Lender to share in such Overadvance Loans ratably
                  based upon the respective Revolving Commitment Percentage
                  (determined before giving effect to any termination of the
                  Commitments pursuant to Section 7.2); provided that (A) all
                                                        --------
                  interest payable on the Overadvance Loans shall be for the
                  account of the Overadvance Lender until the date as of which
                  the respective participation is purchased, and (B) at the time
                  any purchase of participations pursuant to this sentence is
                  actually made, the purchasing Lender shall be required to pay
                  to the Overadvance Lender interest on the principal amount of
                  such participation purchased for each day from and including
                  the day upon which the Mandatory Borrowing would otherwise
                  have occurred to but excluding the date of payment for such
                  participation, at the rate equal to, if paid within two (2)
                  Business Days of the date of the Mandatory Borrowing, the
                  Federal Funds Effective Rate, and thereafter at a rate equal
                  to the Alternate Base Rate.

                  (c) Interest on Overadvance Loans. Subject to the provisions
                      -----------------------------
         of Section 2.9, Overadvance Loans shall bear interest at a per annum
         rate equal to the Alternate Base Rate plus the Applicable Percentage
                                               ----
         for Revolving Loans. Interest on Overadvance Loans shall be payable in
         arrears on the Overadvance Termination Date.

                 (d) Overadvance Note. The Overadvance Loans shall be evidenced
                     ----------------
         by a duly executed promissory note of the Borrower to the Overadvance
         Lender in the original amount of the Overadvance Committed Amount and
         substantially in the form of Schedule 2.1A(d).
                                      ----------------

         SUBPART 2.3. Commitment Fee. Section 2.5(a) of the Existing Credit
                      --------------
Agreement is hereby amended by adding the phrase "and Overadvance Loans"
immediately after the phrase "Swingline Loans" therein.

         SUBPART 2.4. Commitment Reductions. Section 2.6 of the Existing Credit
                      ---------------------
Agreement is hereby amended by adding the following new paragraph (d) after
paragraph (c) thereof:

4

<PAGE>

                  (d) Overadvance Termination Date. The Overadvance Commitment
                      ----------------------------
         shall automatically terminate on the Overadvance Termination Date.

         SUBPART 2.5. Prepayments.
                      -----------

                  (a) Optional Prepayments. Section 2.7(a) of the Existing
                      --------------------
         Credit Agreement is hereby amended by (i) adding the phrase "and
         Overadvance Loans" after the phrase "Swingline Loans" in the first
         sentence thereof, (ii) adding the phrase ", Overadvance Loans"
         immediately after the phrase "Swingline Loan" in the penultimate
         sentence thereof and (iii) deleting the third sentence thereof in its
         entirety and substituting in lieu thereof the following:

                  Subject to the foregoing terms and notwithstanding anything to
                  the contrary contained in Section 9.7, amounts prepaid under
                  this Section 2.7(a) shall, until the later of the Overadvance
                  Termination Date and the date on which all obligations under
                  the Overadvance Loans shall be satisfied in full in accordance
                  with the terms of this Agreement, be applied to the
                  Overadvance Loans and thereafter, shall be applied as the
                  Borrower may elect; provided that if the Borrower fails to
                                      --------
                  specify the application of an optional prepayment then such
                  prepayment shall be applied first to Overadvance Loans, if
                  any, second to Revolving Loans and then pro rata to the
                                                          --------
                  remaining principal installments of the Term Loans, in each
                  case first to Alternate Base Rate Loans and then to LIBOR Rate
                  Loans in direct order of Interest Period maturities.

                  (b) Mandatory Prepayments. Section 2.7(b)(ix) of the Existing
                      ---------------------
         Credit Agreement is hereby amended by deleting the first word "All" and
         substituting in lieu thereof the following:

                  Notwithstanding anything to the contrary contained in Section
                  9.7, all amounts required to be paid pursuant to this Section
                  2.7(b) shall, until the later of the Overadvance Termination
                  Date and the date on which all obligations under the
                  Overadvance Loans shall be satisfied in full in accordance
                  with the terms of this Agreement, be applied first to the
                  repayment of any outstanding Overadvance Loans. Thereafter,
                  all

         SUBPART 2.6. Schedules to Credit Agreement. The schedules of the
                      -----------------------------
Existing Credit Agreement are hereby amended by adding the attached Schedule
                                                                    --------
2.1A(d) as a new Schedule 2.1A(d) to the Credit Agreement.
-------

         SUBPART 2.7. Security Agreement. Section 11 of the Security Agreement
                      ------------------
is hereby amended by deleting clause "third" thereof in its entirety and
                                      -----
substituting in lieu thereof the following:

                  third, until the later of the Overadvance Termination Date and
                  -----
                  the date on which all obligations with respect to the
                  Overadvance Loans shall be satisfied in full in accordance
                  with the terms of the Credit Agreement, to any amounts
                  outstanding

5

<PAGE>

                  with respect to the Overadvance Loans, and thereafter, to the
                  principal amount of the Secured Obligations

         SUBPART 2.8. Pledge Agreement. Section 11 of the Pledge Agreement is
                      ----------------
hereby amended by deleting clause "third" thereof in its entirety and
                                   -----
substituting in lieu thereof the following:

                  third, until the later of the Overadvance Termination Date and
                  -----
                  the date on which all obligations with respect to the
                  Overadvance Loans shall be satisfied in full in accordance
                  with the terms of the Credit Agreement, to any amounts
                  outstanding with respect to the Overadvance Loans, and
                  thereafter, to the principal amount of the Pledgor Obligations

                                    PART III
                           CONDITIONS TO EFFECTIVENESS

         SUBPART 3.1. Amendment No. 9 Effective Date. This Amendment shall be
                      ------------------------------
and become effective as of the date (the "Amendment No. 9 Effective Date") when
                                          ------------------------------
all of the conditions set forth in this Part III shall have been satisfied, and
thereafter this Amendment shall be known, and may be referred to, as "Amendment
No. 9."

         SUBPART 3.2. Execution of Counterparts of Amendment and Note. The Agent
                      -----------------------------------------------
shall have received (a) counterparts (or other evidence of execution, including
telephonic message, satisfactory to the Agent) of this Amendment, which
collectively shall have been duly executed on behalf of each of the Borrower,
the Guarantors, the Agent and the Required Lenders and (b) an Overadvance Note
for the account of the Overadvance Lender, duly executed on behalf of the
Borrower.

         SUBPART 3.3. Amendment Fee. The Borrower shall pay to the Agent, for
                      -------------
the account of each Lender executing and delivering this Amendment to the Agent
on or before 5:00PM (EST), January 24, 2002, an amendment fee (the "Amendment
                                                                    ---------
Fee") equal to 0.15% of such Lender's Commitment.
---
                                    PART IV
                                  MISCELLANEOUS

         SUBPART 4.1. Cross-References. References in this Amendment to any Part
                      ----------------
or Subpart are, unless otherwise specified, to such Part or Subpart of this
Amendment.

         SUBPART 4.2. Instrument Pursuant to Existing Credit Agreement. This
                      ------------------------------------------------
Amendment is a Credit Document executed pursuant to the Existing Credit
Agreement and shall (unless otherwise expressly indicated therein) be construed,
administered and applied in accordance with the terms and provisions of the
Existing Credit Agreement.

         SUBPART 4.3. References in Other Credit Documents. At such time as this
                      ------------------------------------
Amendment shall become effective pursuant to the terms of Subpart 3.1, all
references in the Existing Credit Agreement to the "Agreement" and all
references in the other Credit Documents

6

<PAGE>

to the "Credit Agreement" shall be deemed to refer to the Existing Credit
Agreement as amended by this Amendment.

         SUBPART 4.4. Affirmation of Liens. The Borrower and the Guarantors, as
                      --------------------
applicable, affirm the liens and security interests created and granted in the
Existing Credit Agreement and the Credit Documents and agree that this Amendment
shall in no manner adversely affect or impair such liens and security interests.

         SUBPART 4.5. Representations and Warranties. The Borrower and the
                      ------------------------------
Guarantors hereby represent and warrant as follows:

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

                  (b) This Amendment has been duly executed and delivered by the
         Credit Parties and constitutes each of the Credit Parties' legal, valid
         and binding obligations, enforceable in accordance with its terms,
         except as such enforceability may be subject to (i) bankruptcy,
         insolvency, reorganization, fraudulent conveyance or transfer,
         moratorium or similar laws affecting creditors' rights generally and
         (ii) general principles of equity (regardless of whether such
         enforceability is considered in a proceeding at law or in equity).

                  (c) No consent, approval, authorization or order of, or
         filing, registration or qualification with, any court or Governmental
         Authority or third party is required in connection with the execution,
         delivery or performance by any Credit Party of this Amendment (except
         as required pursuant to the Credit Agreement).

                  (d) The representations and warranties of the Credit Parties
         set forth in Article III of the Amended Credit Agreement are true and
         correct in all material respects as of the date hereof.

                  (e) No Default or Event of Default exists under the Existing
         Credit Agreement on and as of the date hereof after giving effect to
         the amendments contained herein.

                  (f) No Credit Party, to the best of its knowledge, has any
         counterclaims, offsets, credits or defenses to the Credit Documents and
         the performance of its obligations thereunder.

         SUBPART 4.6. Acknowledgment. The Guarantors (i) acknowledge and consent
                      --------------
to all of the terms and conditions of this Amendment, (ii) affirm all of their
obligations under the Credit Documents and (iii) agree that this Amendment and
all documents executed in connection herewith do not operate to reduce or
discharge the Guarantors' obligations under the Amended Credit Agreement or the
other Credit Documents.

         SUBPART 4.7. Counterparts. This Amendment may be executed by the
                      ------------
parties hereto in several counterparts, each of which shall be deemed to be an
original and all of which shall constitute together but one and the same
agreement.

7

<PAGE>

         SUBPART 4.8. Governing Law. THIS AMENDMENT SHALL BE DEEMED TO BE A
                      -------------
CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NORTH
CAROLINA WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW PRINCIPLES THEREOF.

         SUBPART 4.9. Successors and Assigns. This Amendment shall be binding
                      ----------------------
upon and inure to the benefit of the parties hereto and their respective
successors and assigns.

                  [Remainder of page intentionally left blank]

8

<PAGE>

Each of the parties hereto has caused a counterpart of this Amendment to be duly
executed and delivered as of the date first above written.

BORROWER:                 GALEY & LORD, INC.
--------

                          By: /s/ Leonard F. Ferro
                          -----------------------------------------------------
                               Title:  Vice President, Treasurer and Secretary

GUARANTORS:               GALEY & LORD INDUSTRIES, INC.
----------

                          By: /s/ Leonard F. Ferro
                          -----------------------------------------------------
                               Title:  Vice President, Treasurer and Secretary

                          G&L SERVICE COMPANY, NORTH
                          AMERICA, INC., a Delaware corporation

                          By: /s/ Leonard F. Ferro
                          -----------------------------------------------------
                               Title:  Vice President, Treasurer and Secretary

                          SWIFT TEXTILES INC.,

                          a Delaware corporation

                          By: /s/ Leonard F. Ferro
                          -----------------------------------------------------
                               Title:  Vice President, Treasurer and Secretary

                          SWIFT DENIM SERVICES INC.,

                          a Delaware corporation

                          By: /s/ Leonard F. Ferro
                          -----------------------------------------------------
                               Title:  Vice President, Treasurer and Secretary

<PAGE>

                                      GALEY & LORD PROPERTIES, INC.

                                      a Delaware corporation

                                      By: /s/ Anthony J. Forman
                                      ------------------------------------------
                                           Title:  Vice President and Treasurer

                                      SWIFT DENIM PROPERTIES, INC.

                                      a Delaware corporation

                                      By: /s/ Anthony J. Forman
                                      ------------------------------------------
                                           Title: Vice President and Treasurer

                                      BRIGHTON WEAVING LLC,
                                      a Delaware limited liability company

                                      By: /s/ Anthony J. Forman
                                      ------------------------------------------
                                           Title:  Manager

                                      FLINT SPINNING LLC,
                                      a Delaware limited liability company

                                      By: /s/ Anthony J. Forman
                                      ------------------------------------------
                                           Title:  Manager

                                      GREENSBORO TEXTILE ADMINISTRATION LLC,
                                      a Delaware limited liability company

                                      By: /s/ Anthony J. Forman
                                      ------------------------------------------
                                           Title:  Manager

                                      MCDOWELL WEAVING LLC,
                                      a Delaware limited liability company

                                      By: /s/ Anthony J. Forman
                                      ------------------------------------------
                                           Title:  Manager

<PAGE>

                                  SOCIETY HILL FINISHING LLC,
                                  a Delaware limited liability company

                                  By: /s/ Anthony J. Forman
                                  ----------------------------------------------
                                       Title:  Manager

<PAGE>

 AGENT AND LENDERS:                      FIRST UNION NATIONAL BANK,
 -----------------                       as Administrative Agent and as a Lender

                                           By: /s/ Katherine A. Harkness
                                           -------------------------------------
                                               Title:  Vice President

                                           NATIONAL CITY BANK

                                           By: /s/ Peter W. Richer
                                           -------------------------------------
                                               Title:  Vice President

                                           PAM CAPITAL FUNDING L.P.
                                           By: Highland Capital Management, L.P.
                                           As Collateral Manager

                                           By: /s/ Todd Travers
                                           -------------------------------------
                                               Title:  Senior Portfolio Manager
                                               Highland Capital Management, L.P.

                                           ML CLO XIX STERLING LTD.
                                           By: Highland Capital Management, L.P.
                                          (As Collateral successor in interest
                                           to Sterling Asset Manager)

                                           By: /s/ Todd Travers
                                           -------------------------------------
                                               Title:  Senior Portfolio Manager
                                               Highland Capital Management, L.P.

                                           PAMCO CAYMAN LTD.
                                           By: Highland Capital Management, L.P.
                                           As Collateral Manager

                                           By: /s/ Todd Travers
                                           -------------------------------------
                                               Title:  Senior Portfolio Manager
                                               Highland Capital Management, L.P.

<PAGE>

                                         ELF FUNDING TRUST I
                                         By: Highland Capital Management, L.P.
                                         As Collateral Manager

                                         By: /s/ Todd Travers
                                         -------------------------------------
                                               Title:  Senior Portfolio Manager
                                               Highland Capital Management, L.P.

                                         ML CBO IV LTD.
                                         By: Highland Capital Management, L.P.
                                         As Collateral Manager

                                         By: /s/ Todd Travers
                                         ---------------------------------------
                                               Title:  Senior Portfolio Manager
                                               Highland Capital Management, L.P.

                                         KZH HIGHLAND-2 LLC

                                         By: /s/ Anthony Iarrobino
                                         ---------------------------------------
                                               Title:  Authorized Agent

                                         SUNTRUST BANK

                                         By: /s/ George A. Ways
                                         ---------------------------------------
                                               Title:  Managing Director

                                         WACHOVIA BANK, N.A.
                                         as Administrative Agent and as a Lender

                                         By: /s/ Katherine A. Harkness
                                         ---------------------------------------
                                               Title:  Vice President

                                         BANK OF AMERICA, N.A.

                                         By: /s/ Michelle Sutch
                                         ---------------------------------------
                                               Title:  Vice President

<PAGE>

                                  BANK OF SCOTLAND

                                  By: /s/ Joseph Fratus
                                  ----------------------------------------------
                                       Title:  Vice President

                                  BOS (USA) INC.

                                  By: /s/ Joseph Fratus
                                  ----------------------------------------------
                                       Title:  Vice President
                                       Bank of Scotland as Administrative Agent
                                       For BoS (USA) Inc.

                                  BANK OF TOKYO-MITSUBISHI

                                  By: /s/ Loren I. Brenowitz
                                  ----------------------------------------------
                                       Title:  Vice President

                                  BANK ONE, NA

                                  By: /s/ Michele L. Quentin
                                  ----------------------------------------------
                                       Title:  Assistant Vice President

                                  NATIONAL BANK OF CANADA

                                  By: /s/ Alex M. Council
                                  ----------------------------------------------
                                       Title:  Vice President

                                  By: /s/ Bill Handley
                                  ----------------------------------------------
                                       Title:  Vice President and Manager

<PAGE>

                                         NORTHWOODS CAPITAL, LIMITED
                                         By: Angelo, Gordon & Co., L.P.,
                                         As Collateral Manager

                                         By: /s/ John W. Fraser
                                         ---------------------------------------
                                              Title:  Managing Director

                                         NORTHWOODS CAPITAL II, LIMITED
                                         By: Angelo, Gordon & Co., L.P.,
                                         As Collateral Manager

                                         By: /s/ John W. Fraser
                                         ---------------------------------------
                                              Title:  Managing Director

                                         BNP PARIBAS

                                         By: /s/ Edward V. Canale
                                         ---------------------------------------
                                              Title:  Managing Director

                                         THE CIT GROUP/COMMERCIAL
                                         SERVICES, INC.

                                         By: /s/ Timothy E. Cropper
                                         ---------------------------------------
                                              Title:  Vice President

                                         CYPRESS TREE INVESTMENT PARTNERS
                                         I, LTD.
                                         By: Cypress Tree Investment Management
                                         Company, Inc. as Portfolio Manager

                                         By: /s/ P. Jeffrey Huth
                                         ---------------------------------------
                                              Title:  Principal

<PAGE>

                                         CYPRESS TREE INVESTMENT PARTNERS
                                         II, LTD.
                                         By: Cypress Tree Investment Management
                                         Company, Inc. as Portfolio Manager

                                         By: /s/ P. Jeffrey Huth
                                         ---------------------------------------
                                              Title:  Principal

                                         ELC (CAYMAN) LTD. CDO SERIES 1999-I

                                         By: /s/ Amos Beason
                                         ---------------------------------------
                                              Title:  Director

                                         APEX (IDM) CDO I, LTD.

                                         By: /s/ Amos Beason
                                         ---------------------------------------
                                              Title:  Director

                                         ELC (CAYMAN) LTD. 2000-I

                                         By: /s/ Amos Beason
                                         ---------------------------------------
                                              Title:  Director

                                         ELC (CAYMAN) LTD.

                                         By: /s/ Amos Beason
                                         ---------------------------------------
                                              Title:  Director

                                         PACIFICA PARTNERS I, L.P.

                                         By: /s/ Tom Colwell
                                         ---------------------------------------
                                              Title:  Vice President

<PAGE>

                                 ARCHIMEDES FUNDING, L.L.C.
                                 By: ING Capital Advisors LLC,
                                 As Collateral Manager

                                 By: /s/ Helen Rhee
                                 -----------------------------------------------
                                      Title:  Vice President & Portfolio Manager

                                 ARCHIMEDES FUNDING II, LTD.
                                 By: ING Capital Advisors LLC,
                                 As Collateral Manager

                                 By: /s/ Helen Rhee
                                 -----------------------------------------------
                                      Title:  Vice President & Portfolio Manager

                                 AIM FLOATING RATE FUND
                                 By: INVESCO Senior Secured Management,
                                 Inc., as Attorney in fact

                                 By: /s/ Gregory Stoeckle
                                 -----------------------------------------------
                                      Title:  Authorized Signatory

                                 AVALON CAPITAL LTD. 2
                                 By: INVESCO Senor Secured Management, Inc.
                                 As Portfolio Advisor

                                 By: /s/ Gregory Stoeckle
                                 -----------------------------------------------
                                      Title:  Authorized Signatory

                                 MASSMUTUAL HIGH YIELD PARTNERS II,
                                 LLC
                                 By: HYP Management, Inc.

                                 By: /s/ Kathleen Lynch
                                 -----------------------------------------------
                                      Title:  Vice President

<PAGE>

                               MASSACHUSETTS MUTUAL LIFE
                               INSURANCE COMPANY

                               By: /s/ Steven J. Katz
                               -------------------------------------------------
                                    Title:  Second Vice President and Associate
                                    General Counsel

                               ARK CLO 2000-1, LIMITED
                               By: Partriarch Partners, LLC
                               Its Collateral Manager

                               By: /s/ Lynn Tilton
                               -------------------------------------------------
                                    Title:  Authorized Signatory

                               ARK II CLO 2001-1, LIMITED
                               By: Partriarch Partners II, LLC
                               Its Collateral Manager

                               By: /s/ Lynn Tilton
                               -------------------------------------------------
                                    Title:  Authorized Signatory

                               PILGRIM AMERICA HIGH INCOME
                               INVESTMENTS INC. LTD.
                               By: ING Pilgrim Investments
                               As its Investment Manager

                               By: /s/ Brian S. Horton
                               -------------------------------------------------
                                    Title:  Vice President

                               SEQUILS PILGRIM-1 LTD.
                               By: ING Pilgrim Investments
                               As its Investment Manager

                               By: /s/ Brian S. Horton
                               -------------------------------------------------
                                    Title:  Vice President

<PAGE>

                                       PILGRIM PRIME RATE TRUST
                                       By: ING Pilgrim Investments
                                       As its Investment Manager

                                       By: /s/ Brian S. Horton
                                       -----------------------------------------
                                            Title:  Vice President

                                       VAN KAMPEN CLO I, LIMITED
                                       By: Van Kampen Investment Advisory Corp.
                                       As Collateral Manager

                                       By: /s/ Darvin D. Pierce
                                       -----------------------------------------
                                            Title:  Executive Director

                                       VAN KAMPEN CLO II, LIMITED
                                       By: Van Kampen Investment Advisory Corp.
                                       As Collateral Manager

                                       By: /s/ Darvin D. Pierce
                                       -----------------------------------------
                                            Title:  Executive Director

                                       VAN KAMPEN PRIME RATE INCOME
                                       TRUST
                                       By: Van Kampen Investment Advisory Corp.

                                       By: /s/ Darvin D. Pierce
                                       -----------------------------------------
                                            Title:  Executive Director

                                       VAN KAMPEN SENIOR INCOME TRUST
                                       By: Van Kampen Investment Advisory Corp.

                                       By: /s/ Darvin D. Pierce
                                       -----------------------------------------
                                            Title:  Executive Director

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