Document:

EXHIBIT 10(D)

                      CHANGE IN CONTROL SEVERANCE AGREEMENT

         THIS AGREEMENT is made and entered into by and between PremiumWear,
Inc., a Minnesota corporation with its principal offices at 5500 Feltl Road,
Minnetonka, Minnesota (the "Company") and ______________, residing at
________________, (the "Executive"), and shall be effective as of this ____ day
of September, 1999.

         WHEREAS, the Company considers the establishment and maintenance of a
sound and vital management to be essential to protecting and enhancing the best
interests of the Company and its shareholders; and

         WHEREAS, the Executive has made and is expected to make, due to the
Executive's intimate knowledge of the business and affairs of the Company, its
policies, methods, personnel, and problems, a significant contribution to the
profitability, growth, and financial strength of the Company; and

         WHEREAS, the Company, as a publicly held corporation, recognizes that
the possibility of a Change in Control may exist, and that such possibility and
the uncertainty and questions which it may raise among management may result in
the departure or distraction of the Executive in the performance of the
Executive's duties, to the detriment of the Company and its shareholders; and

         WHEREAS, it is in the best interests of the Company and its
stockholders to reinforce and encourage the continued attention and dedication
of management personnel, including the Executive, to their assigned duties
without distraction and to ensure the continued availability to the Company of
the Executive in the event of a Change in Control.

         THEREFORE, in consideration of the foregoing and other respective
covenants and agreements of the parties herein contained, the parties hereto
agree as follows:

         1. Term of Agreement. This Agreement shall be effective from and after
the date hereof and shall continue in effect through December 31, 2001, and
shall automatically be extended for successive one-year periods thereafter
unless the Board of Directors of the Company (the "Board") shall have approved,
and the Executive is notified in writing, prior to January 1, 2001 and each
January 1 thereafter, that the term of this Agreement shall not be extended or
further extended; provided, however, that if a Change in Control shall have
occurred during the original or extended term of this Agreement, this Agreement
shall continue in effect for a period of 24 months from the date of the
occurrence of a Change in Control. In the event that more than one Change in
Control shall occur during the original or any extended term of this Agreement,
the 24- month period shall follow the last Change in Control. This Agreement
shall neither impose nor confer any further rights or obligations on the Company
or the Executive on the day after the end of the term of this Agreement.
Expiration of the term of this Agreement of itself and without subsequent action
by the Company or the Executive shall not end the employment relationship
between the Company and the Executive.

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         2. Change in Control. No benefits shall be payable hereunder unless
there shall have been a Change in Control. For purposes of this Agreement, a
"Change in Control" of the Company shall mean a change in control which would be
required to be reported in response to Item 6(e) on Schedule 14A of Regulation
14A promulgated under the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), whether or not the Company is then subject to such reporting
requirement, including, without limitation, if:

                  (a) Any "person" (as such term is used in Sections 13(d) and
         14(d) of the Exchange Act), other than a trustee or other fiduciary
         holding securities under an employee benefit plan of the Company or any
         subsidiary of the Company, becomes a "beneficial owner" (as defined in
         Rule 13d-3 under the Exchange Act), directly or indirectly, of
         securities of the Company representing 30% or more of the combined
         voting power of the Company's then outstanding securities; or

                  (b) During any period of two consecutive years (not including
         any period ending prior to the effective date of this Agreement), the
         Incumbent Directors cease for any reason to constitute at least a
         majority of the Board of Directors. The term "Incumbent Directors"
         shall mean those individuals who are members of the Board of Directors
         on the effective date of this Agreement and any individual who
         subsequently becomes a member of the Board of Directors (other than a
         director designated by a person who has entered into agreement with the
         Company to effect a transaction contemplated by Section 2(c)) whose
         election or nomination for election by the Company's shareholders was
         approved by a vote of at least a majority of the then Incumbent
         Directors; or

                  (c) (i) The Company consummates a merger, consolidation, share
         exchange, division or other reorganization of the Company with any
         corporation or entity, other than an entity owned at least 80% by the
         Company, unless immediately after such transaction, the shareholders of
         the Company immediately prior to such transaction beneficially own,
         directly or indirectly 51% or more of the combined voting power of
         resulting entity's outstanding voting securities as well as 51% or more
         of the Total Market Value of the resulting entity, or in the case of a
         division, 51% or more of the combined voting power of the outstanding
         voting securities of each entity resulting from the division as well as
         51% or more of the Total Market Value of each such entity, in each case
         in substantially the same proportion as such shareholders owned shares
         of the Company prior to such transaction; (ii) the shareholders of the
         Company approve an agreement for the sale or disposition (in one
         transaction or a series of transactions) of assets of the Company, the
         total consideration of which is greater than 51% of the Total Market
         Value of the Company, or (iii) the Company adopts a plan of complete
         liquidation or winding-up of the Company. "Total Market Value" shall
         mean the aggregate market value of the Company's or the resulting
         entity's outstanding common stock (on a fully diluted basis) plus the
         aggregate market value of the Company's or the resulting entity's other
         outstanding equity securities as measured by the exchange rate of the
         transaction or by such other method as the Board determines where there
         is not readily ascertainable exchange rate.

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         3. Termination Following Change in Control. If a Change in Control
shall have occurred during the term of this Agreement, the Executive shall be
entitled to the benefits provided in subsection 4(d) unless such termination is
(A) because of the Executive's death or Retirement, (B) by the Company for Cause
or Disability, or (C) by the Executive other than for Good Reason.

                  (a) Disability; Retirement. If, as a result of incapacity due
         to physical or mental illness, the Executive shall have been absent
         from the full-time performance of the Executive's duties with the
         Company for at least six (6) consecutive months, and within 30 days
         after written Notice of Termination is given the Executive shall not
         have returned to the full-time performance of the Executive's duties,
         the Company may terminate the Executive's employment for "Disability".
         Any question as to the existence of the Executive's Disability upon
         which the Executive and the Company cannot agree shall be determined by
         a qualified independent physician selected by the Executive (or, if the
         Executive is unable to make such selection, it shall be made by any
         adult member of the Executive's immediate family), and approved by the
         Company. The determination of such physician made in writing to the
         Company and to the Executive shall be final and conclusive for all
         purposes of this Agreement. Termination by the Company or the Executive
         of the Executive's employment based on "Retirement" shall mean
         termination on or after attaining Normal Retirement Age in accordance
         with the PremiumWear, Inc. Profit Sharing Plan and Trust.

               (b) Cause. For purposes of this Agreement, "Cause" shall mean:

                           (i) the willful and continued failure by the
                  Executive (other than any such failure resulting from (1) the
                  Executive's incapacity due to physical or mental illness, (2)
                  any such actual or anticipated failure after the issuance of a
                  Notice of Termination by the Executive for Good Reason or (3)
                  the Company's active or passive obstruction of the performance
                  of the Executive's duties and responsibilities) to perform
                  substantially the duties and responsibilities of the
                  Executive's position with the Company after a written demand
                  for substantial performance is delivered to the Executive by
                  the Board, which demand specifically identifies the manner in
                  which the Board believes that the Executive has not
                  substantially performed the duties or responsibilities;

                           (ii) the conviction of the Executive by a court of
                  competent jurisdiction for felony criminal conduct; or

                           (iii) the willful engaging by the Executive in fraud
                  or dishonesty which is demonstrably and materially injurious
                  to the Company, monetarily or otherwise.

         No act, or failure to act, on the Executive's part shall be deemed
         "willful" unless committed, or omitted by the Executive in bad faith
         and without reasonable belief that the Executive's act or failure to
         act was in the best interest of the Company. The Executive shall not be
         terminated for Cause unless and until the Company shall have delivered
         to the Executive a

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         copy of a resolution duly adopted by the affirmative vote of not less
         than three-quarters of the entire membership of the Board at a meeting
         of the Board called and held for such purpose (after reasonable notice
         to the Executive and an opportunity for the Executive, together with
         the Executive's counsel, to be heard before the Board), finding that,
         in the good faith opinion of the Board, the Executive's conduct was
         Cause and specifying the particulars thereof in detail.

                  (c) Good Reason. The Executive shall be entitled to terminate
         his employment for Good Reason. For purposes of this Agreement, "Good
         Reason" shall mean, without the Executive's express written consent,
         any of the following:

                           (i) The assignment to the Executive of any duties
                  inconsistent with the Executive's status or position with the
                  Company, or a substantial alteration in the nature or status
                  of the Executive's responsibilities from those in effect
                  immediately prior to the Change in Control;

                           (ii) A reduction by the Company in the Executive's
                  annual compensation including, but not limited to, base pay or
                  short and/long term incentive pay in effect immediately prior
                  to a Change in Control;

                           (iii) (A) The relocation of the Company's principal
                  executive offices to a location more than fifty miles from
                  Minnetonka, Minnesota; (B) the Company requiring the Executive
                  to be based anywhere other than the Company's principal
                  executive offices except for required travel on the Company's
                  business to an extent substantially consistent with the
                  Executive's business travel obligations immediately prior to
                  the Change in Control; or (C) a significant increase in the
                  level of travel required of the Executive as compared to
                  travel obligations immediately prior to the Change in Control;

                           (iv) The failure by the Company to continue to
                  provide the Executive with benefits at least as favorable to
                  those enjoyed by the Executive under any of the Company's
                  pension, life insurance, medical, health and accident,
                  disability, deferred compensation, incentive awards, incentive
                  stock options, or savings plans in which the Executive was
                  participating immediately prior to the Change in Control, the
                  taking of any action by the Company which would directly or
                  indirectly materially reduce any of such benefits or deprive
                  the Executive of any material fringe benefit enjoyed
                  immediately prior to the Change in Control, or the failure by
                  the Company to provide the Executive with the number of paid
                  vacation days to which the Executive is entitled immediately
                  prior to the Change in Control, provided, however, that the
                  Company may amend any such plan or programs as long as such
                  amendments do not reduce any benefits to which the Executive
                  would be entitled upon termination;

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                           (v) The failure of the Company to obtain a
                  satisfactory agreement from any successor to assume and agree
                  to perform this Agreement, as contemplated in Section 7; or

                           (vi) any material violation of this Agreement by the
                  Company.

                  (d) Notice of Termination. Any purported termination of the
         Executive's employment by the Company or by the Executive shall be
         communicated by written Notice of Termination to the other party hereto
         in accordance with Section 8. For purposes of this Agreement, a "Notice
         of Termination" shall mean a notice which shall indicate the specific
         termination provision in this Agreement relied upon and shall set forth
         the facts and circum stances claimed to provide a basis for termination
         of the Executive's employment.

                  (e) Date of Termination. For purposes of this Agreement, "Date
         of Termination" shall mean:

                           (i) If the Executive's employment is terminated for
                  Disability, 30 days after Notice of Termination is given
                  (provided that the Executive shall have been absent from
                  full-time performance of duties for at least six (6) months
                  and shall not have returned to the full-time performance of
                  the Executive's duties during such 30 day period in accordance
                  with Section 3(a) hereof); and

                           (ii) If the Executive's employment is terminated
                  pursuant to subsections (b) or (c) above or for any other
                  reason (other than Disability), the date specified in the
                  Notice of Termination (which, in the case of a termination
                  pursuant to subsection (b) above shall not be less than 10
                  days, and in the case of a termination pursuant to subsection
                  (c) above shall not be less than 10 nor more than 30 days,
                  respectively, from the date such Notice of Termination is
                  given).

                  (f) Dispute of Termination. If, within 10 days after any
         Notice of Termination is given, the party receiving such Notice of
         Termination notifies the other party that a dispute exists concerning
         the termination, the Date of Termination shall be the date on which the
         dispute is finally determined, either by mutual written agreement of
         the parties, or by a final judgment, order or decree of a court of
         competent jurisdiction (which is not appealable or the time for appeal
         therefrom having expired and no appeal having been perfected);
         provided, that the Date of Termination shall be extended by a notice of
         dispute only if such notice is given in good faith and the party giving
         such notice pursues the resolution of such dispute with reasonable
         diligence. Notwithstanding the pendency of any such dispute, the
         Company shall continue to pay the Executive full compensation in effect
         when the notice giving rise to the dispute was given (including, but
         not limited to, base salary) and continue the Executive as a
         participant in all compensation, benefit and insurance plans in which
         the Executive was participating when the notice giving rise to the
         dispute was given, until the dispute is finally resolved in accordance
         with this subsection. Amounts paid under this

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         subsection are in addition to all other amounts due under this
         Agreement and shall not be offset against or reduce any other amounts
         under this Agreement.

         4. Compensation Upon Termination or During Disability. Following a
Change in Control of the Company, as defined in subsection 2(a), upon
termination of the Executive's employment or during a period of Disability, the
Executive shall be entitled to the following benefits:

                  (a) During any period that the Executive fails to perform
         full-time duties with the Company as a result of a Disability, the
         Company shall pay the Executive, the Executive's base salary as in
         effect at the commencement of any such period and the amount of any
         other form or type of compensation otherwise payable for such period if
         the Executive were not so disabled, until such time as the Executive is
         determined to be eligible for long term disability benefits in
         accordance with the Company's insurance programs then in effect or the
         Executive is terminated for Disability.

                  (b) If the Executive's employment shall be terminated by the
         Company for Cause or by the Executive other than for Good Reason,
         Disability or Retirement, the Company shall pay to the Executive his
         full base salary through the Date of Termination at the rate in effect
         at the time Notice of Termination is given and the Company shall have
         no further obligation to the Executive under this Agreement, except
         with respect to any benefits to which the Executive is entitled under
         any Company pension or welfare benefit plan, insurance program or as
         otherwise required by law.

                  (c) If the Executive's employment shall be terminated by the
         Company or by the Executive for Disability or Retirement, or by reason
         of death, the Company shall immediately commence payment to the
         Executive (or the Executive's designated beneficiaries or estate, if no
         beneficiary is designated) of any and all benefits to which the
         Executive is entitled under the Company's retirement and insurance
         programs then in effect.

                  (d) If the Executive's employment shall be terminated (A) by
         the Company other than for Cause, Retirement, Disability or the
         Executive's death or (B) by the Executive for Good Reason, then the
         Executive shall be entitled to the benefits provided below:

                           (i) The Company shall pay the Executive, through the
                  Date of Termination, the Executive's base salary as in effect
                  at the time the Notice of Termination is given and any other
                  form or type of compensation otherwise payable for such
                  period;

                           (ii) In lieu of any further salary payments for
                  periods subsequent to the Date of Termination, the Company
                  shall pay a severance payment (the "Severance Payment") equal
                  to two times the Executive's Annual Compensation as defined
                  below. For purposes of this Section 4, "Annual Compensation"
                  shall mean the

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                  Executive's annual salary (regardless of whether all or any
                  portion of such salary has been contributed to a deferred
                  compensation plan), the annual amount of the Company bonus for
                  which the Executive is eligible upon attainment of 100% of the
                  target (regardless of whether such target bonus has been
                  achieved or whether conditions of such target bonus are
                  actually fulfilled), and any other type or form of
                  compensation paid to the Executive by the Company (or any
                  corporation (an "Affiliate") affiliated with the Company
                  within the meaning of Section 1504 of the Internal Revenue
                  Code of 1986 as it may be amended from time to time (the
                  "Code")) and included in the Executive's gross income for
                  federal tax purposes during the 12-month period ending
                  immediately prior to the Date of Termination, but excluding:
                  a) any amount actually paid to the Executive as a cash payment
                  of the target bonus (regardless of whether all or any portion
                  of such the Company bonus was contributed to a deferred
                  compensation plan); b) compensation income recognized as a
                  result of the exercise of stock options or sale of the stock
                  so acquired; and c) any payments actually or constructively
                  received from a plan or arrangement of deferred compensation
                  between the Company and the Executive. All of the items
                  included in Annual Compensation shall be those in effect on
                  the Date of Termination and shall be calculated without giving
                  effect to any reduction in such compensation which would
                  constitute a breach of this Agreement. The Severance Payment
                  shall be made in a single lump sum within 60 days after the
                  Date of Termination.

                           (iii) For the 24-month period after the Date of
                  Termination, the Company shall arrange to provide, at its sole
                  expense, the Executive with life, disability, accident and
                  health insurance benefits substantially similar to those which
                  the Executive is receiving or entitled to receive immediately
                  prior to the Notice of Termination. The cost of providing such
                  benefits shall be in addition to (and shall not reduce) the
                  Severance Payment. Benefits otherwise receivable by the
                  Executive pursuant to this paragraph (iii) shall be reduced to
                  the extent comparable benefits are actually received by the
                  Executive during such period, and any such benefits actually
                  received by the Executive shall be reported to the Company.

                           (iv) Up to $10,000 for individual outplacement
                  counseling to the Executive.

                           (v) The Company shall also pay to the Executive all
                  legal fees and expenses incurred by the Executive as a result
                  of such termination (including all such fees and expenses, if
                  any, incurred in contesting or disputing any such termination
                  or in seeking to obtain or enforce any right or benefit
                  provided by this Agreement).

                  (e) The Executive shall not be required to mitigate the amount
         of any payment provided for in this Section 4 by seeking other
         employment or otherwise, nor shall the amount of any payment or benefit
         provided for in this Section 4 be reduced by any

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         compensation earned by the Executive as the result of employment by
         another employer or by retirement benefits after the Date of
         Termination, or otherwise.

                  (f) The Executive shall be entitled to receive all benefits
         payable to the Executive under Company pension and welfare benefit
         plans or any successor of such plan and any other plan or agreement
         relating to retirement benefits which shall be in addition to, and not
         reduced by, any other amounts payable to the Executive under this
         Section 4.

                  (g) The Executive shall be entitled to exercise all rights and
         to receive all benefits accruing to the Executive under any and all
         Company stock purchase and stock option plans or programs, or any
         successor to any such plans or programs, which shall be in addition to,
         and not reduced by, any other amounts payable to the Executive under
         this Section 4.

         Notwithstanding anything herein to the contrary, if the Executive's
employment is governed by a separate written employment agreement that provides
benefits upon a termination of employment, the aggregate of any payments or
benefits payable under such employment agreement shall offset and reduce the
aggregate of payments and benefits under this Agreement.

         5. Limitation on Parachute Payments. If, in the opinion of tax counsel
selected by the Company and acceptable to the Executive, the Severance Payment
(in its full amount or as partially reduced, as the case may be) plus all other
payments or benefits which constitute "parachute payments" within the meaning of
section 280G(b)(2) of the Code exceeds the amount that is deductible by the
Company by reason of section 280G, and in the opinion or such tax counsel, the
Severance Payment (in its full amount or as partially reduced, as the case may
be) plus all other payments or benefits which constitute "parachute payments"
within the meaning of section 280G(b)(2) of the Code are not reasonable
compensation for services actually rendered or to be rendered, within the
meaning of section 280G(b)(4) of the Code, the Severance Payment shall be
reduced by the excess of the aggregate "parachute payments" that would be paid
to or for the Executive without any portion of such "parachute payments" not
being deductible by reason of section 280G of the Code. The value of any
non-cash benefit or any deferred cash payments shall be determined by the
Company in accordance with the principles of sections 280G(d)(3) and (4) of the
Code.

         If it is established pursuant to a final determination of a court or an
Internal Revenue Service proceeding that, notwithstanding the good faith of the
Executive and the Company in applying the terms of this subsection, the
aggregate "parachute payments" paid to or for the Executive's benefit are in an
amount that would result in any portion of such "parachute payments" not being
deductible by the Company or its Affiliates by reason of section 280G of the
Code, then the Executive shall have an obligation to pay the Company upon demand
an amount equal to the sum of (A) the excess of the aggregate "parachute
payments" paid to or for the Executive's benefit over the aggregate "parachute
payments" that would have been paid to or for the Executive's's benefit without
any portion of such "parachute payments" not being deductible by reason of
section 280G of the Code;

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and (B) interest on the amount set forth in clause (A) of this sentence at the
applicable Federal rate (as defined in section 1274(d) of the Code) from the
date of the Executive's receipt of such excess until the date of such payment.

         6. Funding of Payments. In order to assure the performance of the
Company or its successor of its obligations under this Agreement, the Company
may deposit in trust an amount equal to the maximum payment that will be due the
Executive under the terms hereof. Under a written trust instrument, the Trustee
shall be instructed to pay to the Executive (or the Executive's legal
representative, as the case may be) the amount to which the Executive shall be
entitled under the terms hereof, and the balance, if any, of the trust not so
paid or reserved for payment shall be repaid to the Company. If the Company
deposits funds in trust, payment shall be made no later than the occurrence of a
Change in Control. If and to the extent there are not amounts in trust
sufficient to pay the Executive under this Agreement, the Company shall remain
liable for any and all payments due to the Executive. In accordance with the
terms of such trust, at all times during the term of this Agreement, the
Executive shall have no rights, other than as an unsecured general creditor of
the Company, to any amounts held in trust and all trust assets shall be general
assets of the Company and subject to the claims of creditors of the Company.
Failure of the Company to establish or fully fund such trust shall not be deemed
a revocation or termination of this Agreement by the Company.

         7. Successors; Binding Agreement.

         (a) The Company will require any successor (whether direct or indirect,
by purchase, merger, consolidation or otherwise) to 51% or more of the business
and/or assets of the Company to expressly assume and agree to perform this
Agreement in the same manner and to the same extent that the Company would be
required to perform it if no such succession had taken place. Failure of the
Company to obtain such assumption and agreement prior to the effectiveness of
any such succession shall be a breach of this Agreement and shall entitle the
Executive to the compensation and benefits from the Company in the same amount
and on the same terms as he would be entitled hereunder if he terminated his
employment for Good Reason following a Change in Control, except that for
purposes of implementing the foregoing, the date on which any such succession
becomes effective shall be deemed the Date of Termination.

         (b) This Agreement shall inure to the benefit of and be enforceable by
the Executive's personal or legal representatives, successors, heirs, and
designated beneficiaries. If the Executive should die while any amount would
still be payable to the Executive hereunder if the Executive had continued to
live, all such amounts, unless otherwise provided herein, shall be paid in
accordance with the terms of this Agreement to the Executive's designated
beneficiaries, or, if there is no such designated beneficiary, to the
Executive's estate.

         8. Notice. For the purpose of this Agreement, notices and all other
communications provided for in the Agreement shall be in writing and shall be
deemed to have been duly given when delivered or mailed by United States
registered or certified mail, return receipt requested, postage

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prepaid, addressed to the last known residence address of the Executive or in
the case of the Company, to its principal office to the attention of each of the
then directors of the Company with a copy to its Secretary, or to such other
address as either party may have furnished to the other in writing in accordance
herewith, except that notice of change of address shall be effective only upon
receipt.

         9. Miscellaneous. No provision of this Agreement may be modified,
waived or discharged unless such waiver, modification or discharge is agreed to
in writing and signed by the parties. No waiver by either party hereto at any
time of any breach by the other party to this Agreement of, or compliance with,
any condition or provision of this Agreement to be performed by such other-party
shall be deemed a waiver of similar or dissimilar provisions or conditions at
the same or at any prior or similar time. No agreements or representations, oral
or otherwise, express or implied, with respect to the subject matter hereof have
been made by either party which are not expressly set forth in this Agreement.
The validity, interpretation, construction and performance of this Agreement
shall be governed by the laws of the State of Minnesota.

         10. Validity. The invalidity or unenforceability or any provision of
this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement, which shall remain in full force and effect.

         IN WITNESS WHEREOF, the undersigned officer, on behalf of PremiumWear,
Inc., and the Executive have hereunto set their hands as of the date first above
written.

                                 PREMIUMWEAR, INC.

                                 By
                                 -------------------------------------

                                   Its
                                   -----------------------------------

                                 EXECUTIVE:

                                 -------------------------------------

                                    10EXHIBIT 10(I)

                               THIRD AMENDMENT TO
                          CREDIT AND SECURITY AGREEMENT

         THIS THIRD AMENDMENT, dated as of July 31st, 1999, amends and modifies
a certain Credit and Security Agreement, dated as of February 4, 1997 as amended
by a First Amendment to Credit and Security Agreement dated as of July 21, 1997
and by a Second Amendment to Credit and Security Agreement dated as of November
1, 1998 (as amended, the "Credit Agreement"), between U.S. BANK NATIONAL
ASSOCIATION, as assignee of FBS BUSINESS FINANCE CORPORATION, (the "Lender"),
PREMIUMWEAR, INC., a Delaware corporation (the "Borrower"). Terms not otherwise
expressly defined herein shall have the meanings set forth in the Credit
Agreement.

                              PRELIMINARY STATEMENT

         WHEREAS, the Borrower and the Lender desire to amend the Credit
Agreement as hereinafter set forth;

         NOW, THEREFORE, for value received, the Borrower and the Lender agree
as follows:

                             ARTICLE I - AMENDMENTS

         1.1 Supplement A. Supplement A to the Credit Agreement is deleted and
Supplement A attached hereto is substituted in its place.

         1.2 Year 2000. A new Section 4.26 is hereby added following Section
4.25 of the Credit Agreement to read as follows:

                  4.26 Year 2000. Borrower has reviewed and assessed its
         business operations and computer systems and applications to address
         the "year 2000 problem" (that is, that computer applications and
         equipment used by Borrower, directly or indirectly through third
         parties, may be unable to properly perform date-sensitive functions
         before, during and after January 1, 2000). Borrower reasonably believes
         that the year 2000 problem will not result in a material adverse change
         in the Borrower's business condition (financial or otherwise)
         operations, properties or prospects or ability to repay Lender.
         Borrower agrees that this representation will be true and correct on
         and shall be deemed made by Borrower on each date Borrower requests any
         advance under this Agreement or Note or delivers any information to
         Lender. Borrower will promptly deliver to Lender such information
         relating to this representation as Lender requests from time to time.

         1.3 Construction. All references in the Credit Agreement to "this
Agreement," "herein" and similar references shall be deemed to refer to the
Credit Agreement as amended by this Amendment.

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                   ARTICLE II - REPRESENTATIONS AND WARRANTIES

         2.1 Authorization; Validity and Binding Effect. To induce the Lender to
enter into this Amendment and to make and maintain the Loans under the Credit
Agreement as amended hereby, the Borrower hereby warrants and represents to the
Lender that it is duly authorized to execute and deliver this Amendment and each
other document delivered in connection herewith, and to perform its obligations
under the Credit Agreement as amended hereby and each other document delivered
in connection herewith, that this Amendment and the other documents delivered in
connection herewith constitute the legal, valid and binding obligations of the
Borrower, enforceable in accordance with their respective terms, and that the
Borrower has taken all action necessary under its Articles of Incorporation,
Bylaws and applicable law regarding the transactions contemplated herein.

         2.2 Affirmation of Representations and Warranties. The Borrower hereby
restates all the representations and warranties in Article V of the Credit
Agreement and affirms to the Lender that such representations and warranties are
true and correct as though made on the date hereof the same as if made on the
date hereof and fully set forth herein, except for changes that are permitted by
the terms of the Credit Agreement.

                       ARTICLE III - CONDITIONS PRECEDENT

         This Amendment shall become effective on the date first set forth
above; provided, however, that the effectiveness of this Amendment is subject to
the satisfaction of each of the following conditions precedent:

         3.1 Warranties. Before and after giving effect to this Amendment, the
representations and warranties in Article V of the Credit Agreement shall be
true and correct as though made on the date hereof, except for changes that are
permitted by the terms of the Credit Agreement.

         3.2 Defaults. Before and after giving effect to this Amendment, no
Event of Default and no Unmatured Event of Default shall have occurred and be
continuing under the Credit Agreement except as waived herein. The execution by
the Borrower of this Amendment shall be deemed a representation that the
Borrower has complied with the foregoing condition.

         3.3 Documents. The following shall have been delivered to the Lender,
each duly executed and dated, or certified, as of the date hereof, as the case
may be:

                  (a) Secretary's Certificate. The certificate of the Secretary
                  or an Assistant Secretary of the Borrower certifying that the
                  resolutions authorizing any Designated Person to, among other
                  things, execute amendments to the Credit Agreement are still
                  in full force and effect and that the list of Designated
                  Persons set forth in that Secretary's Certificate of February
                  4, 1997 has not changed.

                                      - 2 -

<PAGE>

                  (b) Confirmation of Security Agreement. A confirmation of the
                  Third Party Security Agreement in the form of Exhibit A
                  attached to this Amendment, duly executed by Klouda-Lenz.

                              ARTICLE IV - GENERAL

         4.1 Expenses. The Borrower agrees to reimburse the Lender upon demand
for all reasonable expenses (including reasonable attorneys' fees and legal
expenses of Dorsey & Whitney LLP, counsel for the Lender) incurred by the Lender
in connection with the preparation of this Amendment and in enforcing the
obligations of the Borrower hereunder, and to pay and save the Lender harmless
from all liability for any stamp or other taxes which may be payable with
respect to the execution or delivery of this Amendment, which obligations of the
Borrower shall survive any termination of the Credit Agreement.

         4.2 Counterparts. This Amendment may be executed in as many
counterparts as may be deemed necessary or convenient, and by the different
parties hereto on separate counterparts, each of which, when so executed, shall
be deemed an original but all such counterparts shall constitute but one and the
same instrument.

         4.3 Severability. Any provision of this Amendment 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 portions hereof or affecting the validity or
enforceability of such provisions in any other jurisdiction.

         4.4 Law. This Amendment shall be a contract made under the laws of the
State of Minnesota, which laws shall govern all the rights and duties hereunder.

         4.5 Successors; Enforceability. This Amendment shall be binding upon
the Borrower and the Lender and their respective successors and assigns, and
shall inure to the benefit of the Borrower and the Lender and the successors and
assigns of the Lender. Except as hereby amended, the Credit Agreement shall
remain in full force and effect and is hereby ratified and confirmed in all
respects.

              [THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                      - 3 -

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by their respective officers thereunto duly authorized as of the date
first written above.

                               U.S. BANK NATIONAL ASSOCIATION

                               By /s/ Leonard H. Ramotar
                                  -------------------------------------
                                  Leonard H. Ramotar
                                  Its VP

                               PREMIUMWEAR, INC.

                               By /s/ James S. Bury
                                  -------------------------------------
                                  James S. Bury
                                  Its VP of Finance

                        Signature Page to Third Amendment

<PAGE>

                                  SUPPLEMENT A
                            (AMENDED JULY 31ST, 1999)
                                       TO
                          CREDIT AND SECURITY AGREEMENT
                      DATED AS OF FEBRUARY 4, 1997 BETWEEN
                 U.S. BANK NATIONAL ASSOCIATION, AS ASSIGNEE OF
                 FBS BUSINESS FINANCE CORPORATION (THE "LENDER")
                                       AND
                       PREMIUMWEAR, INC. (THE "BORROWER")

         1. CREDIT AGREEMENT REFERENCE. This Supplement A, as it may be amended
or modified from time to time, is a part of the Credit and Security Agreement,
dated as of February 4, 1997, between the Borrower and the Lender (together with
all amendments, modifications and supplements thereto, the "Credit Agreement").
Capitalized terms used herein which are defined in the Credit Agreement shall
have the meanings given such terms in the Credit Agreement unless the context
otherwise requires.

         2. DEFINITIONS.

                  2.1 CREDIT AMOUNT. The term "Credit Amount" shall mean the
         maximum amount of Loans which the Lender will make available to the
         Borrower which amount shall not exceed Six Million Dollars
         ($6,000,000); provided, however, that the aggregate outstanding
         principal balance of the Loans plus the Letter of Credit Obligations
         shall not exceed the Credit Amount.

                  2.2 BORROWING BASE.

                           (a) DEFINITION. The term "Borrowing Base" shall mean:

                                    (i) an amount (the "Accounts Receivable
                           Availability") of up to 80% of the net amount (as
                           determined by the Lender after deduction of such
                           reserves and allowances as the Lender deems proper
                           and necessary) of the Borrower's Eligible Accounts
                           Receivable; plus

                                    (ii) an amount (the "Inventory
                           Availability") of up to 50% of the net value (the
                           lower of the cost, determined on a first in first out
                           basis, or market value of such Inventory, as
                           determined by the Lender after deduction of such
                           reserves and allowances as the Lender deems proper
                           and necessary) of the Borrower's Eligible Inventory.

                  2.3 LETTER OF CREDIT SUBLIMIT. The term "Letter of Credit
         Sublimit" shall mean $2,000,000.

                  2.4 TERMINATION DATE. The term "Termination Date" shall mean
         February 3, 2002.

                  2.5 ADDITIONAL DEFINITIONS. As used herein, the following
         terms shall have the following respective meanings:

<PAGE>

                           "Adjusted Eurodollar Rate": With respect to each
                  Interest Period applicable to a Eurodollar Rate Advance, the
                  rate (rounded upward, if necessary, to the next one hundredth
                  of one percent) determined by dividing the Eurodollar Rate for
                  such Interest Period by 1.00 minus the Eurodollar Reserve
                  Percentage.

                           "Advance": Any portion of the outstanding principal
                  balance under the Credit Agreement as to which the Borrower
                  elected one of the available interest rate options and, if
                  applicable, an Interest Period. An Advance may be a Eurodollar
                  Rate Advance or a Reference Rate Advance.

                           "Applicable Margin":  With respect to:

                                    (a) Reference Rate Advances -- 0%.

                                    (b) Eurodollar Rate Advances -- 2.25%.

                           "Board": The Board of Governors of the Federal
                  Reserve System or any successor thereto.

                           "Eurodollar Business Day": A Business Day which is
                  also a day for trading by and between Lenders in United States
                  dollar deposits in the interbank Eurodollar market and a day
                  on which banks are open for business in New York City.

                           "Eurodollar Rate": With respect to each Interest
                  Period applicable to a Eurodollar Rate Advance, the interest
                  rate per annum (rounded upward, if necessary, to the next
                  one-sixteenth of one percent) at which United States dollar
                  deposits are offered to the Lender in the interbank Eurodollar
                  market two Eurodollar Business Days prior to the first day of
                  such Interest Period for delivery in Immediately Available
                  Funds on the first day of such Interest Period and in an
                  amount approximately equal to the Advance to which such
                  Interest Period is to apply as determined by the Lender and
                  for a maturity comparable to the Interest Period; provided,
                  that in lieu of determining the rate in the foregoing manner,
                  the Lender may substitute the per annum Eurodollar interest
                  rate (LIBOR) for United States dollars displayed on the
                  Reuters Screen LIBO Page two Eurodollar Business Days prior to
                  the first day of the Interest Period. "Reuters Screen LIBO
                  Page" means the display designated as page "LIBO" on the
                  Reuter Monitor Money Rates Screen (or such other page as may
                  replace the LIBO page on that service) for the purpose of
                  displaying London Interbank offered rates of major Lenders for
                  United States dollar deposits.

                           "Eurodollar Rate Advance": An Advance with respect to
                  which the interest rate is determined by reference to the
                  Adjusted Eurodollar Rate.

                           "Eurodollar Reserve Percentage": As of any day, that
                  percentage (expressed as a decimal) which is in effect on such
                  day, as prescribed by the Board for determining the maximum
                  reserve requirement (including any basic, supplemental or
                  emergency reserves) for a member Lender of the Federal Reserve

                                        2

<PAGE>

                  System, with deposits comparable in amount to those held by
                  the Lender, in respect of "Eurocurrency Liabilities" as such
                  term is defined in Regulation D of the Board. The rate of
                  interest applicable to any outstanding Eurodollar Rate
                  Advances shall be adjusted automatically on and as of the
                  effective date of any change in the Eurodollar Reserve
                  Percentage.

                           "Interest Period": With respect to each Eurodollar
                  Rate Advance, the period commencing on the date of such
                  Advance or on the last day of the immediately preceding
                  Interest Period, if any, applicable to an outstanding Advance
                  and ending one, two or three months thereafter, as the
                  Borrower may elect in the applicable notice of borrowing,
                  continuation or conversion; provided that:

                                    (1) Any Interest Period that would otherwise
                           end on a day which is not a Eurodollar Business Day
                           shall be extended to the next succeeding Eurodollar
                           Business Day unless such Eurodollar Business Day
                           falls in another calendar month, in which case such
                           Interest Period shall end on the next preceding
                           Eurodollar Business Day;

                                    (2) Any Interest Period that begins on the
                           last Eurodollar Business Day of a calendar month (or
                           a day for which there is no numerically corresponding
                           day in the calendar month at the end of such Interest
                           Period) shall end on the last Eurodollar Business Day
                           of a calendar month; and

                                    (3) Any Interest Period that would otherwise
                           end after the Termination Date shall end on the
                           Termination Date.

                           "Reference Rate": The rate of interest from time to
                  time publicly announced by Lender as its "reference rate." The
                  Lender may lend to its customers at rates that are at, above
                  or below the Reference Rate. For purposes of determining any
                  interest rate hereunder or under any Note which is based on
                  the Reference Rate, such interest rate shall change as and
                  when the Reference Rate shall change.

                           "Reference Rate Advance": An Advance with respect to
                  which the interest rate is determined by reference to the
                  Reference Rate.

                           "Regulatory Change": Any change after the date of the
                  Credit Agreement in federal, state or foreign laws or
                  regulations or the adoption or making after such date of any
                  interpretations, directives or requests applying to a class of
                  Lenders including the Lender under any federal, state or
                  foreign laws or regulations (whether or not having the force
                  of law) by any court or governmental or monetary authority
                  charged with the interpretation or administration thereof.

         3.       INTEREST; FEES.

                  3.1 PROCEDURE FOR ADVANCES. Any request for an Advance must be
         given so as to be received by the Lender not later than 1:00 p.m.
         (Minneapolis time) two Eurodollar

                                        3

<PAGE>

         Business Days prior to the date of the requested Advance if the Advance
         is requested as a Eurodollar Rate Advance and not later than 1:00 p.m.
         on the date of the requested Advance if the Advance is requested as a
         Reference Rate Advance. Each request for an Advance shall specify (i)
         the date of the Advance, (ii) the amount of the Advance to be made on
         such date which shall be in a minimum amount of $1,000 for Reference
         Rate Advances, or $500,000 for Eurodollar Rate Advances or, if more in
         either case, an integral multiple thereof, (iii) whether such Advance
         is to be funded as a Reference Rate Advance or a Eurodollar Rate
         Advance, and (iv) in the case of a Eurodollar Rate Advance, the
         duration of the initial Interest Period applicable thereto.

                  3.2 CONVERSIONS AND CONTINUATIONS. On the terms and subject to
         the limitations hereof, the Borrower shall have the option at any time
         and from time to time to convert all or any portion of the Advances
         into Reference Rate Advances or Eurodollar Rate Advances, or to
         continue a Eurodollar Rate Advance as such; provided, however that a
         Eurodollar Rate Advance may be converted or continued only on the last
         day of the Interest Period applicable thereto and no Advance may be
         converted or continued as a Eurodollar Rate Advance if a Default or
         Event of Default has occurred and is continuing on the proposed date of
         continuation or conversion. Advances may be converted to, or continued
         as, Eurodollar Rate Advances only in amounts of $500,000 or an integral
         multiple thereof. The Borrower shall give the Lender written notice of
         any continuation or conversion of any Advance and such notice must be
         given so as to be received by the Lender not later than 3:00 p.m.
         (Minneapolis time) two Eurodollar Business Days prior to requested date
         of conversion or continuation in the case of the continuation of, or
         conversion to, a Eurodollar Rate Advance. Each such notice shall
         specify (a) the amount to be continued or converted, (b) the date for
         the continuation or conversion (which must be (i) the last day of the
         preceding Interest Period for any continuation or conversion of
         Eurodollar Rate Advances, and (ii) a Eurodollar Business Day), and (c)
         in the case of conversions to or continuations as Eurodollar Rate
         Advances, the Interest Period applicable thereto. Any notice given by
         the Borrower under this Section shall be irrevocable. If the Borrower
         shall fail to notify the Lender of the continuation of any Eurodollar
         Rate Advance within the time required by this Section, such Advance
         shall, on the last day of the Interest Period applicable thereto,
         automatically be converted into a Reference Rate Advance of the same
         principal amount.

                  3.3 INTEREST RATES, INTEREST PAYMENTS AND DEFAULT INTEREST.
         Interest shall accrue and be payable on the Advances as follows:

                           3.3 (a) Each Eurodollar Rate Advance shall bear
                  interest on the unpaid principal amount thereof during the
                  Interest Period applicable thereto at a rate per annum equal
                  to the sum of (i) the Adjusted Eurodollar Rate for such
                  Interest Period, plus (ii) the Applicable Margin.

                           3.3(b) Each Reference Rate Advance shall bear
                  interest on the unpaid principal amount thereof at a varying
                  rate per annum equal to the sum of (i) the Reference Rate,
                  plus (ii) the Applicable Margin.

                           3.3 (c) Any Advance not paid when due, whether at the
                  date scheduled therefor or earlier upon acceleration, shall
                  bear interest until paid in full at the

                                        4

<PAGE>

                  Default Rate, which shall be (i) during the balance of any
                  Interest Period applicable to such Advance, at a rate per
                  annum equal to the sum of the rate applicable to such Advance
                  during such Interest Period plus 2.0%, and (ii) otherwise, at
                  a rate per annum equal to the sum of (A) the Reference Rate,
                  plus (B) the Applicable Margin for Reference Rate Advances,
                  plus (C) 2.0%.

                           3.3 (d) Interest shall be payable (i) with respect to
                  each Eurodollar Rate Advance having an Interest Period of
                  three months or less, on the last day of the Interest Period
                  applicable thereto; (ii) with respect to any Eurodollar Rate
                  Advance having an Interest Period greater than three months,
                  on the last day of the Interest Period applicable thereto and
                  on each day that would have been the last day of the Interest
                  Period for such Advance had successive Interest Periods of
                  three months duration been applicable to such Advance; (iii)
                  with respect to any Reference Rate Advance, on the last day of
                  each month; (iv) with respect to all Advances, upon any
                  permitted prepayment (on the amount prepaid); and (v) with
                  respect to all Advances, on the Termination Date; provided
                  that interest under Section 3.3 (c) shall be payable on
                  demand.

                  3.4 OPTIONAL PREPAYMENTS. The Borrower may prepay Reference
         Rate Advances, in whole or in part, at any time, without premium or
         penalty. Any such prepayment must be accompanied by accrued and unpaid
         interest on the amount prepaid. Each partial prepayment shall be in a
         minimum amount of $10,000 or, if more, an integral multiple thereof.
         Except upon an acceleration following an Event of Default or upon
         termination of the Credit in whole, the Borrower may pay Eurodollar
         Rate Advances only on the last day of the Interest Period applicable
         thereto. Amounts paid (unless following an acceleration or upon
         termination of the Credit in whole) or prepaid on Advances under this
         Section 3.4 may be reborrowed upon the terms and subject to the
         conditions and limitations of the Credit Agreement.

                  3.5 INTEREST RATE NOT ASCERTAINABLE, ETC. If, on or prior to
         the date for determining the Adjusted Eurodollar Rate in respect of the
         Interest Period for any Eurodollar Rate Advance, the Lender determines
         (which determination shall be conclusive and binding, absent error)
         that:

                           (a) deposits in dollars (in the applicable amount)
                  are not being made available to the Lender in the relevant
                  market for such Interest Period, or

                           (b) the Adjusted Eurodollar Rate will not adequately
                  and fairly reflect the cost to the Lender of funding or
                  maintaining Eurodollar Rate Advances for such Interest Period,

         the Lender shall forthwith give notice to the Borrower of such
         determination, whereupon the obligation of the Lender to make or
         continue, or to convert any Advances to, Eurodollar Rate Advances, as
         the case may be, shall be suspended until the Lender notifies the
         Borrower that the circumstances giving rise to such suspension no
         longer exist. While any such suspension continues, all further Advances
         by the Lender shall be made as Reference Rate Advances. No such
         suspension shall affect the interest rate then in effect during the

                                        5

<PAGE>

         applicable Interest Period for any Eurodollar Rate Advance outstanding
         at the time such suspension is imposed.

                  3.6 INCREASED COST. If any Regulatory Change:

                           (a) shall subject the Lender to any tax, duty or
                  other charge with respect to its Eurodollar Rate Advances, its
                  obligation to make Eurodollar Rate Advances or shall change
                  the basis of taxation of payment to the Lender of the
                  principal of or interest on Eurodollar Rate Advances or any
                  other amounts due under this Agreement in respect of
                  Eurodollar Rate Advances or its obligation to make Eurodollar
                  Rate Advances (except for changes in the rate of tax on the
                  overall net income of the Lender imposed by the jurisdiction
                  in which the Lender's principal office is located); or

                           (b) shall impose, modify or deem applicable any
                  reserve, special deposit, capital requirement or similar
                  requirement (including, without limitation, any such
                  requirement imposed by the Board, but excluding with respect
                  to any Eurodollar Rate Advance any such requirement to the
                  extent included in calculating the applicable Adjusted
                  Eurodollar Rate) against assets of, deposits with or for the
                  account of, or credit extended by, the Lender or shall impose
                  on the Lender or on the interbank Eurodollar market any other
                  condition affecting its Eurodollar Rate Advances or its
                  obligation to make Eurodollar Rate Advances;

         and the result of any of the foregoing is to increase the cost to the
         Lender of making or maintaining any Eurodollar Rate Advance, or to
         reduce the amount of any sum received or receivable by the Lender under
         this Agreement or under the Note, then, within 30 days after demand by
         the Lender, the Borrower shall pay to the Lender such additional amount
         or amounts as will compensate the Lender for such increased cost or
         reduction. The Lender will promptly notify the Borrower of any event of
         which it has knowledge, occurring after the date hereof, which will
         entitle the Lender to compensation pursuant to this Section. A
         certificate of the Lender claiming compensation under this Section,
         setting forth the additional amount or amounts to be paid to it
         hereunder and stating in reasonable detail the basis for the charge and
         the method of computation, shall be conclusive in the absence of error.
         In determining such amount, the Lender may use any reasonable averaging
         and attribution methods. Failure on the part of the Lender to demand
         compensation for any increased costs or reduction in amounts received
         or receivable with respect to any Interest Period shall not constitute
         a waiver of the Lender's rights to demand compensation for any
         increased costs or reduction in amounts received or receivable in any
         subsequent Interest Period.

                  3.7 ILLEGALITY. If any Regulatory Change shall make it
         unlawful or impossible for the Lender to make, maintain or fund any
         Eurodollar Rate Advances, the Lender shall notify the Borrower,
         whereupon the obligation of the Lender to make or continue, or to
         convert any Advances to, Eurodollar Rate Advances shall be suspended
         until the Lender notifies the Borrower that the circumstances giving
         rise to such suspension no longer exist. If the Lender determines that
         it may not lawfully continue to maintain any Eurodollar Rate Advances
         to the end of the applicable Interest Periods, all of the affected
         Advances shall

                                        6

<PAGE>

         be automatically converted to Reference Rate Advances as of the date of
         the Lender's notice, and upon such conversion the Borrower shall
         indemnify the Lender in accordance with Section 3.8.

                  3.8 FUNDING LOSSES; EURODOLLAR RATE ADVANCES. The Borrower
         shall compensate the Lender, upon its written request, for all losses,
         expenses and liabilities (including any interest paid by the Lender to
         lenders of funds borrowed by it to make or carry Eurodollar Rate
         Advances to the extent not recovered by the Lender in connection with
         the re-employment of such funds and including loss of anticipated
         profits) which the Lender may sustain: (i) if for any reason, other
         than a default by the Lender, a funding of a Eurodollar Rate Advance
         does not occur on the date specified therefor in the Borrower's request
         or notice as to such Advance under Section 3.1 or 3.2, or (ii) if, for
         whatever reason (including, but not limited to, acceleration of the
         maturity of Advances following an Event of Default), any repayment of a
         Eurodollar Rate Advance, or a conversion pursuant to Section 3.7,
         occurs on any day other than the last day of the Interest Period
         applicable thereto. The Lender's request for compensation shall set
         forth the basis for the amount requested and shall be final, conclusive
         and binding, absent error.

                  3.9 DISCRETION OF LENDER AS TO MANNER OF FUNDING. The Lender
         shall be entitled to fund and maintain its funding of Eurodollar Rate
         Advances in any manner it may elect, it being understood, however, that
         for the purposes of this Agreement all determinations hereunder
         (including, but not limited to, determinations under Section 3.8, but
         excluding determinations that the Lender may elect to make from the
         Telerate System, Inc. screen) shall be made as if the Lender had
         actually funded and maintained each Eurodollar Rate Advance during the
         Interest Period for such Advance through the purchase of deposits
         having a maturity corresponding to the last day of the Interest Period
         and bearing an interest rate equal to the Eurodollar Rate for such
         Interest Period.

                  3.10 OVERDRAFT LOANS; OVER ADVANCES. Overdraft Loans and Over
         Advances shall bear interest at the rate(s) determined pursuant to
         Section 2.7 or Section 2.8 of the Credit Agreement, as applicable.

                  3.11 COMMITMENT FEE. The Borrower shall pay to the Lender a
         commitment fee for the period from the date hereof to the date the
         Credit terminates in an amount equal to the sum of .25% per annum on
         the average daily Unused Credit Amount that is between the outstanding
         balance of the Loans and the Borrowing Base plus .25% per annum on the
         average daily Unused Credit Amount that is between the Borrowing Base
         and the Credit Amount.

                  3.12 LETTER OF CREDIT FEES. The Borrower shall pay the Lender,
         or any Affiliate, a commission on the undrawn amount of each standby
         Letter of Credit and on each L/C Draft accepted by the Lender or such
         Affiliate, on any standby Letter of Credit, in an amount equal to 1.75%
         per annum. The Borrower will pay the Lender, or any Affiliate, a
         commission of .75% per annum (subject to a minimum fee of $50) on the
         drawn amount of all trade Letters of Credit, plus the Lender's or such
         Affiliate's standard issuance fee and out of pocket expenses.

                                        7

<PAGE>

                  3.13 CREDIT TERMINATION FEE. Upon termination or cancellation
         of the Credit by the Borrower, the Borrower shall pay to the Lender a
         termination fee in an amount equal to one percent (1%) of the Credit
         Amount in the event that the Credit is terminated or canceled by the
         Borrower during the period from the date hereof through the one year
         anniversary of such date.

                  3.14. AUDIT FEES. In the absence of an Event of Default, fees
         for collateral audits shall be limited to $500 per day plus expenses
         for up to three collateral audits per year.

         4. ELIGIBLE ACCOUNT RECEIVABLE REQUIREMENTS. The Account Receivable
must not be unpaid on the date that is 121 days after the date of the invoice
evidencing such Account Receivable. If invoices representing 10% or more of the
unpaid amount of all Accounts Receivable from any one Account Debtor are unpaid
more than 120 days after the dates of such invoices, then all Accounts
Receivable relating to such Account Debtor shall cease to be Eligible Accounts
Receivable. The Account Receivable must not be for finance charges.

         5. ELIGIBLE INVENTORY REQUIREMENTS. The Inventory must be finished
goods and not raw materials or work in process.

         6. Intentionally Omitted.

         7. ADDITIONAL COVENANTS. From the date of the Credit Agreement and
thereafter until all of the Borrower's Obligations under the Credit Agreement
are paid in full, the Borrower agrees that, unless the Lender shall otherwise
consent in writing, it will not, and will not permit any Subsidiary to, do any
of the following:

                  7.1 NET WORTH. Permit the Borrower's Net Worth to be less than
         twelve million dollars ($12,000,000) at any time.

                  7.2 CAPITAL EXPENDITURES. Make Capital Expenditures in an
         amount exceeding $2,500,000 on a consolidated basis in any fiscal year.

                  7.3 INTEREST COVERAGE RATIO. Permit the ratio, as of the last
         day of any fiscal quarter, of the Borrower's Earnings Before Interest
         and Taxes for the four consecutive fiscal quarters ending on that date
         to its consolidated interest expense (including, without limitation,
         imputed interest expense on Capitalized Leases) for the same period to
         be less than 1.1 to 1.0.

Borrower's Initials  __JSB__
Lender's Initials  __LHR__
Date: July 31, 1999.

                                        8

<PAGE>

                       CONFIRMATION OF SECURITY AGREEMENT

         Reference is made to that certain Third Party Security Agreement dated
as of April 27th, 1999 (the "Security Agreement"), made and given by the
undersigned to secure the Obligations (as defined in the Security Agreement) of
PREMIUMWEAR , INC. (the "Borrower") under that certain Credit and Security
Agreement dated as of February 4, 1997 (as amended, the "Credit Agreement"),
between the Borrower and U.S. BANK NATIONAL ASSOCIATION, as assignee of FBS
BUSINESS FINANCE CORPORATION (the "Lender").

         The undersigned acknowledges that it has received a copy of a proposed
Third Amendment to Credit and Security Agreement to be dated on or about July
31, 1999 (the "Amendment"). The undersigned hereby (a) consents to the terms of
the Amendment, and to the execution and delivery of the Amendment by the
Borrower to the Lender; (b) acknowledges that the obligations of the Borrower to
the Lender under the Credit Agreement constitute "Obligations" of the Borrower
to the Lender within the meaning of the above-referenced Security Agreement; and
(c) reaffirms that the security interests granted pursuant to the Security
Agreement secure, among other things, the Borrower's obligations and duties
under the Credit Agreement and the obligations of the undersigned under the
Security Agreement. The undersigned further reaffirms that all of the terms,
covenants and conditions of the Security Agreement remain in full force and
effect.

Date:    August 16, 1999.

                                           KLOUDA-LENZ

                                           By /s/ James S. Bury
                                              --------------------------------
                                              James S. Bury
                                              Its Secretary

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