Document:

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                                                                   EXHIBIT 4.1
===============================================================================

                                  $325,000,000

                          LOAN AND SECURITY AGREEMENT

                           Dated as of April 18, 2002

                              RUSSELL CORPORATION
                          CERTAIN OF ITS SUBSIDIARIES
                                (the Borrowers)

                                      and

                        THE FINANCIAL INSTITUTIONS PARTY
                            HERETO FROM TIME TO TIME
                                 (the Lenders)

                                      and

                              JPMORGAN CHASE BANK
                                 SUNTRUST BANK
                          (the Co-Syndication Agents)

                      THE CIT GROUP/BUSINESS CREDIT, INC.
                             BANK OF AMERICA, N.A.
                         (the Co-Documentation Agents)

                      WACHOVIA BANK, NATIONAL ASSOCIATION
                      GENERAL ELECTRIC CAPITAL CORPORATION
                                (the Co-Agents)

                                      and

                           FLEET CAPITAL CORPORATION
                           (the Administrative Agent)

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

                                  Arranged by:

                             FLEET SECURITIES, INC.

===============================================================================

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                             TABLE OF CONTENTS(1)

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                                                     ARTICLE 1
                                                    DEFINITIONS

Section 1.1           Definitions.................................................................................1
Section 1.2           General Interpretive Rules.................................................................36
Section 1.3           Exhibits, Annexes and Schedules............................................................37

                                                     ARTICLE 2
                                             REVOLVING CREDIT FACILITY

Section 2.1           Revolving Credit Loans.....................................................................38
Section 2.2           Manner of Borrowing........................................................................38
Section 2.3           Repayment; Prepayment......................................................................40
Section 2.4           Revolving Credit Note......................................................................41

                                                     ARTICLE 2A

Section 2A.1          Swingline Loans............................................................................42
Section 2A.2          Making Swingline Loans.....................................................................42
Section 2A.3          Repayment of Swingline Loans...............................................................42
Section 2A.4          Prepayment.................................................................................42
Section 2A.5          Swingline Note.............................................................................43
Section 2A.6          Settlement with Other Lenders..............................................................43

                                                     ARTICLE 3
                                             LETTER OF CREDIT GUARANTEES

Section 3.1           Agreement to Issue.........................................................................44
Section 3.2           Amounts....................................................................................44
Section 3.3           Conditions.................................................................................44
Section 3.4           Issuance of Letter of Credit Guarantees....................................................44
Section 3.5           Duties of FCC..............................................................................45
Section 3.6           Payment of Reimbursement Obligations.......................................................46
Section 3.7           Participations.............................................................................46
Section 3.8           Indemnification; Exoneration...............................................................48
Section 3.9           Supporting Letter of Credit; Cash Collateral Account.......................................49

                                                     ARTICLE 4
                                                 TERM LOAN FACILITY

Section 4.1           Term Loans.................................................................................51
Section 4.2           Manner of Borrowing Term Loan..............................................................51
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(1)      This Table of Contents is included for reference purposes only and
         does not constitute part of the Loan and Security Agreement.

                                       i
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Section 4.3           Repayment of Term Loan.....................................................................51
Section 4.4           Term Notes.................................................................................51

                                                     ARTICLE 5
                                              GENERAL LOAN PROVISIONS

Section 5.1           Interest...................................................................................52
Section 5.2           Certain Fees; Agent Fee....................................................................53
Section 5.3           Conversion or Continuation of Loans........................................................54
Section 5.4           Conversion or Continuation.................................................................55
Section 5.5           Manner of Payment..........................................................................55
Section 5.6           General....................................................................................55
Section 5.7           Loan Accounts; Statements of Account.......................................................55
Section 5.8           Reduction of Revolving Credit Facility; Termination of Agreement...........................56
Section 5.9           Making of Loans............................................................................57
Section 5.10          Settlement Among Lenders...................................................................59
Section 5.11          Payments Not at End of Interest Period; Failure to Borrow..................................63
Section 5.12          Assumptions Concerning Funding of LIBOR Loans..............................................64
Section 5.13          Duration of Interest Periods; Maximum Number of LIBOR Loans; Minimum Increments;
                      Option to Forgo Notes......................................................................64
Section 5.14          Changed Circumstances......................................................................64
Section 5.15          Net Payments...............................................................................66
Section 5.16          Cash Collateral Account; Investment Accounts...............................................69
Section 5.17          Borrowers' Representative..................................................................70
Section 5.18          Joint and Several Liability; No Modification or Release of Obligations.....................71
Section 5.19          Obligations Absolute.......................................................................71
Section 5.20          Waiver of Suretyship Defenses..............................................................72
Section 5.21          Defaulting Lender's Status.................................................................72

                                                     ARTICLE 6
                                               CONDITIONS PRECEDENT

Section 6.1           Conditions Precedent to Initial Loans......................................................74
Section 6.2           All Loans and Letters of Credit............................................................77
Section 6.3           Conditions as Covenants....................................................................78

                                                     ARTICLE 7
                                    REPRESENTATIONS AND WARRANTIES OF BORROWERS

Section 7.1           Representations and Warranties.............................................................79
Section 7.2           Survival of Representations and Warranties, Etc............................................89

                                                    ARTICLE 8
                                               SECURITY INTEREST

Section 8.1           Security Interest..........................................................................90
Section 8.2           Continued Priority of Security Interest....................................................90
Section 8.3           Releases...................................................................................91
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                                                     ARTICLE 9
                                               COLLATERAL COVENANTS

Section 9.1           Collection of Accounts.....................................................................93
Section 9.2           Verification and Notification..............................................................94
Section 9.3           Disputes, Returns and Adjustments..........................................................94
Section 9.4           Invoices...................................................................................95
Section 9.5           Delivery of Instruments....................................................................95
Section 9.6           Sales of Inventory.........................................................................95
Section 9.7           Ownership and Defense of Title.............................................................95
Section 9.8           Insurance..................................................................................96
Section 9.9           Location of Offices and Collateral.........................................................96
Section 9.10          Records Relating to Collateral.............................................................97
Section 9.11          Inspection.................................................................................97
Section 9.12          Information and Reports....................................................................98
Section 9.13          Power of Attorney..........................................................................99
Section 9.14          Additional Real Estate and Leases..........................................................99
Section 9.15          Assignment of Claims Act..................................................................100

                                                     ARTICLE 10
                                               AFFIRMATIVE COVENANTS

Section 10.1          Preservation of Corporate Existence and Similar Matters...................................101
Section 10.2          Compliance with Applicable Law............................................................101
Section 10.3          Maintenance of Property...................................................................101
Section 10.4          Conduct of Business.......................................................................101
Section 10.5          Insurance.................................................................................101
Section 10.6          Payment of Taxes and Claims...............................................................102
Section 10.7          Accounting Methods and Financial Records..................................................102
Section 10.8          Use of Proceeds...........................................................................102
Section 10.9          Hazardous Waste and Substances; Environmental Requirements................................102
Section 10.10         Execution of Subsidiary Guaranties; Additional Borrowers..................................103

                                                     ARTICLE 11
                                                    INFORMATION

Section 11.1          Financial Statements......................................................................104
Section 11.2          Accountants' Certificate..................................................................105
Section 11.3          Officer's Certificate.....................................................................105
Section 11.4          Copies of Other Reports...................................................................105
Section 11.5          Notice of Litigation and Other Matters....................................................106
Section 11.6          ERISA.....................................................................................106
Section 11.7          Revisions or Updates to Schedules.........................................................107

                                                     ARTICLE 12
                                                 NEGATIVE COVENANTS

Section 12.1          Financial Ratios..........................................................................108
Section 12.2          Debt......................................................................................108
Section 12.3          Guaranties................................................................................109
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Section 12.4          Investments...............................................................................109
Section 12.5          Capital Expenditures......................................................................112
Section 12.6          Restricted Distributions and Payments, Etc................................................112
Section 12.7          Merger, Consolidation and Sale of Assets..................................................112
Section 12.8          Transactions with Affiliates..............................................................113
Section 12.9          Liens.....................................................................................113
Section 12.10         Amendments of Other Agreements............................................................113

                                                                ARTICLE 13
                                                                 DEFAULT

Section 13.1          Events of Default.........................................................................114
Section 13.2          Remedies..................................................................................116
Section 13.3          Application of Proceeds...................................................................119
Section 13.4          Power of Attorney.........................................................................119
Section 13.5          Miscellaneous Provisions Concerning Remedies..............................................120
Section 13.6          Trademark License.........................................................................120

                                                               ARTICLE 14
                                                               ASSIGNMENTS

Section 14.1          Successors and Assigns; Participations....................................................122
Section 14.2          Representation of Lenders.................................................................125

                                                               ARTICLE 15
                                                          ADMINISTRATIVE AGENT

Section 15.1          Appointment of Administrative Agent.......................................................126
Section 15.2          Delegation of Duties......................................................................126
Section 15.3          Exculpatory Provisions....................................................................126
Section 15.4          Reliance by Administrative Agent..........................................................126
Section 15.5          Notice of Default.........................................................................127
Section 15.6          Non-Reliance on Administrative Agent, Other Agents and Other Lenders......................127
Section 15.7          Indemnification...........................................................................128
Section 15.8          Administrative Agent in Its Individual Capacity...........................................128
Section 15.9          Successor Administrative Agent............................................................128
Section 15.10         Other Agents..............................................................................129

                                                               ARTICLE 16
                                                              MISCELLANEOUS

Section 16.1          Notices...................................................................................131
Section 16.2          Expenses..................................................................................132
Section 16.3          Stamp and Other Taxes.....................................................................133
Section 16.4          Setoff....................................................................................133
Section 16.5          Litigation................................................................................134
Section 16.6          Waiver of Rights..........................................................................135
Section 16.7          Consent to Advertising and Publicity......................................................135
Section 16.8          Reversal of Payments......................................................................135
Section 16.9          Injunctive Relief.........................................................................136
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Section 16.10         Accounting Matters........................................................................136
Section 16.11         Amendments................................................................................136
Section 16.12         Assignment................................................................................138
Section 16.13         Performance of Borrowers' Duties..........................................................138
Section 16.14         Indemnification...........................................................................138
Section 16.15         All Powers Coupled with Interest..........................................................138
Section 16.16         Survival..................................................................................139
Section 16.17         Titles and Captions.......................................................................139
Section 16.18         Severability of Provisions................................................................139
Section 16.19         Governing Law.............................................................................139
Section 16.20         Counterparts..............................................................................139
Section 16.21         Reproduction of Documents.................................................................139
Section 16.22         Term of Agreement.........................................................................140
Section 16.23         Pro-Rata Participation....................................................................140
Section 16.24         Confidentiality...........................................................................140
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                                       v
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ANNEXES, EXHIBITS AND SCHEDULES

<TABLE>
<S>                         <C>
ANNEX A                     COMMITMENTS
ANNEX B                     PRICING MATRIX
ANNEX C                     BORROWERS AND SUBSIDIARY GUARANTORS
ANNEX D                     EFFECTIVE DATE LETTERS OF CREDIT

EXHIBIT A-1                 FORM OF REVOLVING CREDIT NOTE
EXHIBIT A-2                 FORM OF SWINGLINE NOTE
EXHIBIT B                   FORM OF TERM NOTE
EXHIBIT C                   FORM OF BORROWING BASE CERTIFICATE
EXHIBIT D                   FORM OF ASSIGNMENT AND ACCEPTANCE
EXHIBIT E-1                 FORM OF CONFIRMATION OF NOTICE OF BORROWING (REVOLVING CREDIT LOAN)
EXHIBIT E-2                 FORM OF CONFIRMATION OF NOTICE OF BORROWING (SWINGLINE LOAN)
EXHIBIT F                   FORM OF NOTICE OF CONVERSION OR CONTINUATION
EXHIBIT G                   FORM OF COVENANT COMPLIANCE CERTIFICATE
EXHIBIT H                   FORM OF SUBSIDIARY GUARANTY
EXHIBIT I                   FORM OF GUARANTOR SECURITY AGREEMENT

Schedule 1.1A               Assets Held For Sale
Schedule 1.1B               Permitted Investments
Schedule 1.1C               Permitted Liens
Schedule 1.1D               Designated Account Debtors
Schedule 6.1(c)(11)         Environmental Reports
Schedule 7.1(a)             Organization
Schedule 7.1(b)             Capitalization
Schedule 7.1(c)             Subsidiaries; Ownership of Stock
Schedule 7.1(e)             Compliance with Laws
Schedule 7.1(g)             Governmental Approvals
Schedule 7.1(h)             Title to Properties
Schedule 7.1(i)             Liens
Schedule 7.1(j)             Indebtedness and Guaranties
Schedule 7.1(k)             Litigation
Schedule 7.1(l)             Tax Matters
Schedule 7.1(p)             ERISA
Schedule 7.1(t)             Location of Offices and Records
Schedule 7.1(u)             Location of Inventory
Schedule 7.1(v)             Equipment
Schedule 7.1(w)             Bank Accounts
Schedule 7.1(x)             Intellectual Property
Schedule 7.1(y)             Real Estate
Schedule 7.1(z)             Corporate and Fictitious Names
Schedule 7.1(cc)            Employee Relations
Schedule 7.1(dd)            Trade Names
Schedule 10.8               Use of Proceeds
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                                      vi
<PAGE>

                          LOAN AND SECURITY AGREEMENT

                           Dated as of April 18, 2002

         RUSSELL CORPORATION, an Alabama corporation, its subsidiaries named as
"Borrowers" on ANNEX C hereto, the financial institutions party to this
Agreement from time to time (the "Lenders"), JPMORGAN CHASE BANK and SUNTRUST
BANK (each, a Syndication Agent), THE CIT GROUP/BUSINESS CREDIT, INC. and BANK
OF AMERICA, N.A. (each, a Documentation Agent), WACHOVIA BANK, NATIONAL
ASSOCIATION and GENERAL ELECTRIC CAPITAL CORPORATION (each, a Co-Agent), and
FLEET CAPITAL CORPORATION, a Rhode Island corporation, as administrative agent
for the Lenders, agree as follows:

                                   ARTICLE 1

                                  DEFINITIONS

         Section 1.1       Definitions. For the purposes of this Agreement:

         "Account Debtor" means a Person who is obligated on a Account.

         "Accounts" has the meaning set forth in the definition "Collateral".

         "ACH Transfer" means and refers to the transfer of funds within or
between financial institutions using electronic credits and debits in
accordance with procedures promulgated by the National Automated Clearing House
Association or any related regional association.

         "Acquire" or "Acquisition" means the acquisition of (i) a Business
Unit or (ii) the majority of the Equity Interests in another Person, by
purchase, exchange, issuance of stock or other securities, or by merger,
reorganization or any other method.

         "Acquisition Target" means a Person or Business Unit proposed to be
Acquired by a Borrower for consideration that includes proceeds of a Borrowing.

         "Administrative Agent" means FCC and any successor agent appointed
pursuant to SECTION 15.9 hereof.

         "Affected Lender" has the meaning set forth in SECTION 5.9(d).

         "Affiliate" means, with respect to a Person, (a) any partner, officer,
shareholder or member (if holding more than 10% of the outstanding Equity
Interests of such Person), director, manager, employee or managing agent of
such Person, (b) any spouse, parents, siblings, children or grandchildren of
such Person, (c) any corporation, limited liability company, association,
partnership, trust, entity or enterprise in which such Person is a director,
executive officer, manager or general partner, and (d) any other Person (other
than a Subsidiary) that, (i) directly or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control with,
such given Person, (ii) directly or indirectly beneficially owns or holds 10%
or more of any class of voting stock or partnership or membership or other
voting interest of such

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Person or any Subsidiary of such Person, or (iii) 10% or more of the voting
stock or partnership or membership or other voting interest of which is
directly or indirectly beneficially owned or held by such Person or a
Subsidiary of such Person. The term "control" means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and
policies of a Person, whether through ownership of voting securities or
partnership or other voting interest, by contract or otherwise. Notwithstanding
any provision of the foregoing to the contrary, each Subsidiary of a Lender
shall be deemed an Affiliate of such Lender.

         "Agent's Office" means the office of the Administrative Agent
specified in or determined in accordance with the provisions of SECTION 16.1.

         "Agreement" means and includes this Agreement, including all
Schedules, Exhibits and other attachments hereto, and all amendments,
modifications and supplements hereto and thereto.

         "Agreement Date" means the date as of which this Agreement is dated.

         "Aircraft Security Agreement" means the Aircraft Security Agreement
and Assignment of Rents dated on or about the Effective Date between Russell
and the Administrative Agent, pursuant to which Russell assigns, mortgages and
pledges to the Administrative Agent all of its right, title and interest in and
to the aircraft and engines therein described as security for its obligations
under this Agreement and the other Loan Documents.

         "Anniversary" means each anniversary of the Effective Date.

         "Applicable Law" means all applicable provisions of constitutions,
statutes, rules, regulations and orders of all governmental bodies and of all
orders and decrees of all courts and arbitrators, including, without
limitation, Environmental Laws.

         "Applicable Margin" means as to each Type of Loan under each Facility,
the Tier II rate per annum set forth under the appropriate caption on the
pricing matrix attached hereto as ANNEX B, subject to quarterly adjustment as
follows: From and after the delivery of the consolidated quarterly financial
statements of Russell and its Consolidated Subsidiaries for each Fiscal Quarter
and the related officer's certificate in accordance with the respective
provisions of SECTIONS 11.1(b) and 11.3, the foregoing percentages will be
adjusted effective December 29, 2002 and as of the first day of each succeeding
Fiscal Quarter thereafter, that begins at least 10 days after delivery of
quarterly financial statements and the related officer's certificate for the
previous Fiscal Quarter (each, a "Margin Adjustment Date"), to the percentages
set forth in ANNEX B that correspond to the Fixed Charge Coverage Ratio
covenant calculation reflected in such financial statements and the related
certificate; PROVIDED, that if and for so long as a Default or Event of Default
exists, no downward adjustment in the Applicable Margin otherwise indicated
shall be effected.

         "Appraised Value" means (i) as applied to Inventory, the orderly
liquidation value of such Inventory, net of liquidation expenses, as determined
and reported on not less frequently than semi-annually by a qualified
independent appraiser or, at the Administrative Agent's election, by
professional appraisers employed by FCC or another Lender, including the
"recovery percentages" set forth in each report of Appraised Value as to
Inventory consisting of raw materials, work-in-process and finished goods,
which recovery percentages will be applied

                                       2
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making the calculations provided for in CLAUSE (b)(ii) of the definition
"Borrowing Base" and (ii) as applied to Equipment and Real Estate, the orderly
liquidation value (net of liquidation expenses) or fair market value thereof,
as specified, as determined by a qualified appraiser prior to the Effective
Date and reflected in the reports referred to in SECTION 6.1(c)(23) or
thereafter at the Administrative Agent's election.

         "Arranger" means FSI.

         "Asset Disposition" means the disposition (including by a
sale/leaseback transaction) of any asset of a Borrower or any of its
Subsidiaries having a value (at the higher of net book value and fair market
value) greater than $10,000, other than sales of Inventory in the ordinary
course of business, dispositions of worn-out and obsolete Equipment no longer
useful in the Borrowers' business, consistent with past practices of Russell,
and dispositions of assets to any Loan Party.

         "Assets Held For Sale" means the capital assets described on SCHEDULE
1.1A - ASSETS HELD FOR SALE.

         "Assignment and Acceptance" means an assignment and acceptance in the
form attached hereto as EXHIBIT D assigning all or a portion of a Lender's
interests, rights and obligations under this Agreement pursuant to SECTION
14.1.

         "Availability" means at any time (a) the Borrowing Base at such time
minus (b) the aggregate outstanding principal amount of Revolving Credit Loans
and Swingline Loans at such time.

         "Bank" means Fleet National Bank, a national banking association.

         "Base Rate" means the rate of interest announced or quoted by Bank
from time to time as its prime rate for commercial loans, whether or not such
rate is the lowest rate charged by Bank to its most preferred borrowers, and,
if such prime rate for commercial loans is discontinued by Bank as a standard,
a comparable reference rate designated by Bank as a substitute therefor shall
be the Base Rate.

         "Base Rate Loan" means a Loan bearing interest determined with
reference to the Base Rate.

         "Base Rate Revolving Credit Loan" means each Base Rate Loan
outstanding under the Revolving Credit Facility.

         "Base Rate Term Loan" means each Base Rate Loan outstanding under the
Term Loan Facility.

         "Benefit Plan" means an "employee benefit plan" as defined in Section
3(3) of ERISA (other than a Multiemployer Plan) in respect of which a Borrower
or any Related Company is, or within the immediately preceding six years was,
an "employer" as defined in Section 3(5) of ERISA, including such plans as may
be established after the Agreement Date.

                                       3
<PAGE>

         "Borrower" means each of Russell, each Subsidiary listed as a
"Borrower" on ANNEX C hereto, and each other Person that becomes a party to
this Agreement as a "Borrower" after the Effective Date pursuant to SECTION
10.10.

         "Borrowers' Representative" means Russell and each successor in such
capacity appointed pursuant to SECTION 5.17.

         "Borrowing" means Loans under a single Facility and of a single Type,
made by all Lenders Ratably on the same date and, in the case of LIBOR Loans,
for the same Interest Period.

         "Borrowing Base" means at any time an amount equal to the lesser of:

         (a)      the Revolving Credit Facility, minus the Letter of Credit
Reserve, and

         (b)      an amount equal to

                  (i)      85% of the face value of Eligible Accounts and
         Eligible Amounts Due from Factor due and owing at such time, plus

                  (ii)     the lesser of: (A) the sum of 50% as to raw
         materials and work in process and 60% as to finished goods, in each
         case of the value of Eligible Inventory consisting of such items,
         determined on the basis of the lesser of FIFO cost and market value
         and (B) 85% of the Appraised Value of Eligible Inventory, plus

                  (iii)    the L/C Inventory Amount, plus

                  (iv)     during the period April 15 through August 31 of each
         Fiscal Year, the Seasonal Increase, minus

                  (v)      the Letter of Credit Reserve, minus

                  (vi)     the Dilution Reserve, minus

                  (vii)    the Environmental Compliance Reserve (which on the
         Effective Date is zero), minus

                  (viii)   the Royalty Reserve;

where "Seasonal Increase" means 10% of the value of Eligible Inventory,
determined on the basis of the lesser of FIFO cost and market value.

         "Borrowing Base Certificate" means a certificate in the form attached
hereto as EXHIBIT C or in such other form as Russell and the Administrative
Agent may agree.

         "Business Day" means any day other than a Saturday, Sunday or other
day on which banks in Atlanta, Georgia, Hartford, Connecticut or New York, New
York are authorized to close and, when used with respect to LIBOR Loans, means
any such day on which dealings in Dollar deposits are also carried on in the
London interbank market.

                                       4
<PAGE>

         "Business Unit" means the assets constituting the business or a
division or operating unit thereof of any Person.

         "Capital Expenditures" means, with respect to any Person, all
expenditures made and liabilities incurred for the acquisition of assets (other
than Inventory or assets which constitute a Business Unit) which are not, in
accordance with GAAP, treated as expense items for such Person in the year made
or incurred or as a prepaid expense applicable to a future year or years.

         "Capitalized Lease" means a lease that is required to be capitalized
for financial reporting purposes in accordance with GAAP.

         "Capitalized Lease Obligation" means Indebtedness represented by
obligations under a Capitalized Lease, and the amount of such Indebtedness
shall be the capitalized amount of such obligations determined in accordance
with GAAP.

         "Cash Collateral" means collateral consisting of cash or Cash
Equivalents on which the Administrative Agent, for the benefit of itself as
Administrative Agent and the Lenders, has a first priority Lien.

         "Cash Collateral Account" means a special interest-bearing Deposit
Account consisting of cash maintained at the principal office of the
Administrative Agent and under the sole dominion and control of the
Administrative Agent, for its benefit and for the benefit of the Lenders,
established pursuant to the provisions of SECTION 5.16(a) for purposes set
forth therein.

         "Cash Equivalents" means

         (a)      Dollars;

         (b)      securities issued or directly and fully guaranteed or insured
by the United States government or any agency or instrumentality thereof or any
state having maturities of not more than one year after the date of
acquisition;

         (c)      certificates of deposit and Eurodollar time deposits with
maturities of one year or less from the date of acquisition, bankers'
acceptances with maturities not exceeding one year and overnight bank deposits,
in each case with any Lender or any domestic commercial bank or U.S. branch of
a foreign commercial bank having capital and surplus in excess of $250 million
and a Thompson Bank Watch Rating of "B" or better;

         (d)      repurchase obligations with a term of not more than seven
days for underlying securities of the types described in CLAUSES (b) and (c)
above entered into with any financial institution meeting the qualifications
specified in said CLAUSE (c); and

         (e)      commercial paper having the highest rating obtainable from
Moody's or S&P and in each case maturing within 270 days after the date of
acquisition.

         "Class" as applied to any Loans, means all Loans outstanding at the
time under the same Facility.

                                       5
<PAGE>

         "Clearing Bank" means Bank, Wachovia Bank, National Association,
SunTrust Bank and AmSouth Bank and any other banking institution with which a
Controlled Account has been established pursuant to a Control Agreement.

         "Code" means the Internal Revenue Code of 1986, as amended.

         "Collateral" means and includes all of each Loan Party's right, title
and interest in and to each of the following, wherever located and whether now
or hereafter existing or now owned or hereafter acquired or arising:

         (a)      (i) all rights to the payment of money or other forms of
consideration of any kind (whether classified under the UCC as accounts,
chattel paper, general intangibles or otherwise) including, but not limited to,
accounts receivable, letter of credit rights, chattel paper, tax refunds,
insurance proceeds, any rights under contracts not yet earned by performance
and not evidenced by an instrument or chattel paper, notes, drafts,
instruments, documents, acceptances and all other debts, obligations and
liabilities in whatever form from any Person, (ii) all guaranties, security,
other supporting obligations and Liens securing payment thereof, (iii) all
goods, whether now owned or hereafter acquired, and whether sold, delivered,
undelivered, in transit or returned, which may be represented by, or the sale
or lease of which may have given rise to, any such right to payment or other
debt, obligation or liability, and (iv) all proceeds of any of the foregoing
(the foregoing, collectively, "Accounts"),

         (b)      (i) all inventory, (ii) all goods intended for sale or lease
or for display or demonstration, (iii) all work-in-process, (iv) all raw
materials and other materials and supplies of every nature and description used
or which might be used in connection with the manufacture, packing, shipping,
advertising, selling, leasing or furnishing of goods or services or otherwise
used or consumed in the conduct of business, and (v) all documents evidencing
and general intangibles relating to any of the foregoing (the foregoing,
collectively, "Inventory"),

         (c)      (i) all machinery, apparatus, equipment, motor vehicles,
tractors, trailers, rolling stock, fittings, fixtures and other tangible
personal property (other than Inventory) of every kind and description, (ii)
all tangible personal property (other than Inventory) and fixtures used in such
Loan Party's business operations or owned by such Loan Party or in which such
Loan Party has an interest, and (iii) all parts, accessories and special tools
and all increases and accessions thereto and substitutions and replacements
therefor, excluding, however, any such property that is subject to a lease or
Lien permitted to exist by this Agreement, the terms of which prohibit the
creation of the Security Interest therein, for so long as such prohibition
remains in effect (the foregoing, collectively, "Equipment"),

         (d)      all general intangibles, choses in action and causes of
action and all other intangible personal property of every kind and nature
(other than Accounts), including, without limitation, commercial tort claims,
Intellectual Property, Equity Interests, corporate or other business records,
inventions, designs, blueprints, plans, specifications, trade secrets,
goodwill, computer software, customer lists, registrations, licenses,
franchises, tax refund claims, reversions or any rights thereto and any other
amounts payable to such Person from any Benefit Plan, Multiemployer Plan or
other employee benefit plan, rights and claims against carriers and shippers,
rights to indemnification, business interruption insurance and proceeds
thereof,

                                       6
<PAGE>

property, casualty or any similar type of insurance and any proceeds thereof,
the beneficiary's interest in proceeds of insurance covering the lives of key
employees and any letter of credit, guarantee, claims, security interest,
supporting obligation or other security for the payment by an Account Debtor of
any of the Accounts (the foregoing, collectively, "General Intangibles"),

         (e)      any demand, time, savings, passbook, money market or like
depository account, and all certificates of deposit, maintained with a bank,
savings and loan association, credit union or like organization, other than an
account evidenced by a certificate of deposit that is an instrument under the
UCC (the foregoing, collectively, "Deposit Accounts"),

         (f)      all certificated and uncertificated securities, all security
entitlements, all securities accounts, all commodity contracts, all commodity
accounts and all other investment property (the foregoing, collectively,
"Investment Property"),

         (g)      (i) any investment account maintained by or on behalf of such
Loan Party with the Administrative Agent or any Lender or any Affiliate of the
Administrative Agent or any Lender, (ii) any agreement governing such account,
(iii) all cash, money, notes, securities, instruments, goods, accounts,
documents, chattel paper, general intangibles and other property now or
hereafter held by the Administrative Agent or any Lender or any Affiliate of
the Administrative Agent or any Lender on behalf of such Loan Party in
connection with such investment account or deposited by such Loan Party or on
such Loan Party's behalf to such investment account or otherwise credited
thereto for such Loan Party's benefit, or distributable to such Loan Party from
such investment account, together with all contracts for the sale or purchase
of the foregoing, (iv) all of such Loan Party's right, title and interest with
respect to the deposit, investment, allocation, disposition, distribution or
withdrawal of the foregoing, (v) all of such Loan Party's right, title and
interest with respect to the making of amendments, modifications or additions
of or to the terms and conditions under which the investment account or
investments maintained therein is to be maintained by such Loan Party, the
Administrative Agent, any Lender or any Affiliate of the Administrative Agent
or any Lender on such Loan Party's behalf, and (vi) all of such Loan Party's
books, records and receipts pertaining to or confirming any of the foregoing
(the foregoing, collectively, "Investment Accounts"),

         (h)      all cash or other property deposited with the Administrative
Agent or any Lender or any Affiliate of the Administrative Agent or any Lender
or which the Administrative Agent, for its benefit and for the benefit of the
Lenders, or any Lender or such Affiliate is entitled to retain or otherwise
possess as collateral pursuant to the provisions of this Agreement or any of
the Loan Documents or any agreement relating to any Letter of Credit,
including, without limitation, amounts on deposit in the Cash Collateral
Account,

         (i)      all goods and other property, whether or not delivered, (i)
the sale or lease of which gives or purports to give rise to any Account,
including, but not limited to, all merchandise returned or rejected by or
repossessed from customers, or (ii) securing any Account, including, without
limitation, all rights as an unpaid vendor or lienor (including, without
limitation, stoppage in transit, replevin and reclamation) with respect to such
goods and other properties,

                                       7
<PAGE>

         (j)      all mortgages, deeds to secure debt and deeds of trust on
real or personal property, guaranties, leases, security agreements, supporting
obligations and other agreements and property which secure or relate to any
Account or other Collateral or are acquired for the purpose of securing and
enforcing any item thereof,

         (k)      all documents of title, including bills of lading and
warehouse receipts, policies and certificates of insurance, securities, chattel
paper and other documents and instruments,

         (l)      all files, correspondence, computer programs, tapes, disks
and related data processing software which contain information identifying or
pertaining to any of the Collateral or any Account Debtor or showing the
amounts thereof or payments thereon or otherwise necessary or helpful in the
realization thereon or the collection thereof, and

         (m)      any and all products and cash and non-cash proceeds of the
foregoing (including, but not limited to, any claims to any items referred to
in this definition and any claims against third parties for loss of, damage to
or destruction of any or all of the Collateral or for proceeds payable under or
unearned premiums with respect to policies of insurance) in whatever form,
including, but not limited to, cash, negotiable instruments and other
instruments for the payment of money, chattel paper, security agreements and
other documents.

Notwithstanding anything herein to the contrary, except as specified in SECTION
6.1(c) or SECTION 9.12(e), the Collateral shall not include (i) any agreement
with a third party existing on the Effective Date (or executed after the date
hereof but that is permitted by the proviso below) that prohibits the grant of
a Lien on (but not merely the assignment of or of any interest in) such
agreement or any Loan Party's rights thereunder without the consent of such
third party or under which a consent to such grant is otherwise required, which
consent has not been obtained, except to the extent provided by Sections 9-406
through 9-409 of the UCC, or (ii) any license, permit or other Governmental
Approval that, under the terms and conditions of such Governmental Approval (or
any Collateral subject thereto) or under Applicable Law, cannot be subjected to
a Lien in favor of the Administrative Agent without consent which consent has
not been obtained; PROVIDED, HOWEVER, that the Collateral shall include all
items excluded pursuant to CLAUSE (i) OR (ii) from and after the date on which
the requisite consent is obtained; and, PROVIDED FURTHER, that the Loan Parties
may, after the Effective Date, enter into agreements containing the prohibition
described in CLAUSE (i) if the value of the property subject thereto and which
would otherwise constitute Collateral, when added to the value of all other
property subject to agreements entered into after the Effective Date and
including such prohibition, would not exceed $10,000,000.

         "Commitment" means, as to each Lender, the amount set forth opposite
such Lender's name on ANNEX A hereto, representing such Lender's aggregate
obligation, upon and subject to the terms and conditions of this Agreement
(including the applicable provisions of SECTION 14.1), to make its Ratable
Share of Loans under the Revolving Credit Facility (including to repay
Swingline Loans) and the Term Loan Facility and to purchase participations in
Letters of Credit or, from and after the date hereof, as set forth in the
Register representing such Lender's obligation to make its Ratable Share of
Loans under the Revolving Credit Facility (including to repay Swingline Loans)
and to purchase participations in Letters of Credit Guarantees, and its
interest in the Term Loans outstanding.

                                       8
<PAGE>

         "Commitment Percentage" means, as to any Lender at the time of
determination, the percentage obtained by dividing such Lender's Commitment at
such time by the aggregate Commitments at such time.

         "Consolidated Subsidiaries" means, each Borrower (other than Russell)
and any other Subsidiary of Russell whose accounts are at the time in question,
in accordance with GAAP, consolidated with those of Russell.

         "Contaminant" means any waste, pollutant, hazardous substance, toxic
substance, hazardous waste, special waste, petroleum or petroleum-derived
substance or waste, or any constituent of any such substance or waste.

         "Control Agreement" means an agreement among a Loan Party, the
Administrative Agent and a Clearing Bank, in form and substance satisfactory to
the Administrative Agent, concerning the collection and transfer of payments
which represent the proceeds of Accounts or of any other Collateral.

         "Controlled Account" means a Deposit Account of a Loan Party
maintained by it with a Clearing Bank subject to a Control Agreement.

         "Copyrights" means and includes, in each case whether now existing or
hereafter arising or acquired, all of each Borrower's right, title and interest
in and to

         (a)      all copyrights, rights and interests in copyrights, works
protectable by copyright, copyright registrations and copyright applications;

         (b)      all renewals of any of the foregoing;

         (c)      all income, royalties, damages and payments now or hereafter
due and/or payable under any of the foregoing, including, without limitation,
damages or payments for past or future infringements of any of the foregoing;

         (d)      the right to sue for past, present and future infringements
of any of the foregoing; and

         (e)      all rights corresponding to any of the foregoing throughout
the world.

         "Cross Creek Pledge Agreement" means the Stock Pledge Agreement dated
on or about the Effective Date made by Cross Creek Holdings, Inc. in favor the
Administrative Agent, with respect to the pledge to the Administrative Agent of
the Equity Interests of Cross Creek Apparel, LLC.

         "Cross Creek Apparel Pledge Agreement" means the Stock Pledge
Agreement dated on or about the Effective Date made by Cross Creek Apparel, LLC
in favor the Administrative Agent, with respect to the pledge to the
Administrative Agent of all of the Equity Interests of Russell Asset
Management, Inc. and 65% of the Equity Interests of Cross Creek de Jimenes,
S.A. de C.V.

                                       9
<PAGE>

         "Debt" means, as to any Person at any time, the aggregate outstanding
principal amount for which such Person is liable, of the following:

         (a)      Indebtedness for money borrowed,

         (b)      Indebtedness, whether or not in any such case the same was
for money borrowed,

                  (i)      represented by notes payable, drafts accepted, and
         other similar instruments that represent extensions of credit,

                  (ii)     constituting obligations evidenced by bonds,
         debentures, notes or similar instruments, or

                  (iii)    upon which interest charges are customarily paid or
         that was issued or assumed as full or partial payment for property
         (other than trade credit that is incurred in the ordinary course of
         business),

         (c)      amounts available to be drawn (assuming all conditions to
drawing have been met) under any outstanding letters of credit and any
unsatisfied reimbursement obligation in respect of any drawing under any letter
of credit and net obligations of such Person in respect of Interest Rate
Agreements (the amount of any such obligations to be equal at any time to the
termination value of such Interest Rate Agreement giving rise to such
obligation that would be payable by such Person at such time),

         (d)      any amount (other than any wholly contingent liability, such
as an earn-out) required to be included in the purchase price of any Permitted
Acquisition and not paid in cash or by delivery of shares or other (non-cash)
property at the closing of such Acquisition,

         (e)      Capitalized Lease Obligations and Indebtedness attributed to
such Person arising out of any sale/leaseback transaction,

         (f)      obligations in respect of any mandatorily redeemable
preferred capital stock issued by such Person, and

         (g)      Guarantees of Debt.

         "Default" means any of the events specified in SECTION 13.1 which with
the passage of time or giving of notice or both would constitute an Event of
Default.

         "Default Margin" means 2.0% per annum.

         "Deposit Accounts" has the meaning set forth in the definition
"Collateral".

         "Designated Account Debtor" means each Account Debtor listed from time
to time with the consent of the Administrative Agent on SCHEDULE 1.1D -
DESIGNATED ACCOUNT DEBTORS.

                                      10
<PAGE>

         "DeSoto Mills Pledge Agreement" means the Stock Pledge Agreement dated
on or about the Effective Date made by DeSoto Mills, Inc. in favor the
Administrative Agent, with respect to the pledge to the Administrative Agent of
Equity Interests of Russell Asset Management, Inc.

         "Dilution Reserve" means an amount equal to the EXCESS of (i) non-cash
reductions to the Borrowers' accounts receivable (on a combined basis) during
the 12-month period prior to the date of determination as established by the
Borrowers' records or by a field examination conducted by the Administrative
Agent's employees or representatives, expressed as a percentage of gross
reductions (cash and non-cash) to the Borrowers' accounts receivable (on a
combined basis) for the same period OVER (ii) 6%, MULTIPLIED by an amount equal
to Eligible Accounts as of the date of determination, as the same may be
adjusted by the Administrative Agent in accordance with SECTION 5.9(c)(ii).

         "Disbursement Account" means one or more accounts maintained by and in
the name of the Borrowers (or any of them) for the purposes of disbursing Loan
proceeds.

         "Disbursing Bank" means any commercial bank with which a Disbursement
Account is maintained after the Effective Date.

         "Dollar" and "$" means freely transferable United States dollars.

         "EBITDA" for any Person for a specified accounting period means Net
Income of such Person and, if applicable, its consolidated Subsidiaries on a
consolidated basis for such period, plus interest expense, income tax expense,
depreciation expense, amortization expense, charges in respect of impairment of
goodwill, and up to $25,000,000 per year of other non-cash restructuring
charges (on a cumulative basis commencing January 1, 2002 to the date of
determination), each to the extent deducted in computing Net Income for such
specified period, after giving effect to any Permitted Pro Forma Adjustments.

         "ERISA" means the Employee Retirement Income Security Act of 1974, as
in effect from time to time.

         "ERISA Event" means (a) a "reportable event" as defined in Section
4043(c) of ERISA, but excluding any such event as to which the provision for 30
days' notice to the PBGC is waived under applicable regulations or that could
not reasonably be expected to result in the imposition of a Lien in favor of
the PBGC, (b) the filing of a notice of intent to terminate a Benefit Plan
subject to Title IV of ERISA under a distress termination under Section 4041(c)
of ERISA or the treatment of an amendment to such a Benefit Plan as a
termination under Section 4041(c) of ERISA, (c) the institution of proceedings
by the PBGC to terminate a Benefit Plan subject to Title IV of ERISA or the
appointment of a trustee to administer any such Benefit Plan or an event or
condition that might reasonably be expected to constitute grounds under Section
4042 of ERISA for the termination of, or the appointment of a trustee to
administer, any Benefit Plan subject to Section 4042, (d) the imposition of any
material liability under Title IV of ERISA other than for PBGC premiums due but
not yet payable, (e) the filing of an application for a minimum funding waiver
under Section 412 of the Code, (f) a withdrawal by the Borrower or any Related
Company from a Benefit Plan subject to Section 4063 of ERISA during a plan year
in which it was a "substantial employer" as defined in Section 4001(a)(2) of
ERISA, (g) a

                                      11
<PAGE>

Benefit Plan intending to qualify under Section 401(a) of the Code losing such
qualified status (other than because of a Remediable Defect), (h) the failure
to make a material required contribution to a Benefit Plan, (i) the Borrower or
any Related Company being in "default" (as defined in Section 4219(c)(5) of
ERISA) with respect to payments to a Multiemployer Plan because of its complete
or partial withdrawal (as described in Section 4203 or 4205 of ERISA) from such
Multiemployer Plan, or (j) the occurrence of a non-exempt prohibited
transaction within the meaning of Section 4975 of the Code or Section 406 of
ERISA with respect to any Benefit Plan.

         "Effective Date" means the later of:

         (a)      the Agreement Date, and

         (b)      the first date on which all of the conditions set forth in
ARTICLE 6 shall have been fulfilled.

         "Effective Interest Rate" means each rate of interest per annum on the
Revolving Credit Loans, the Swingline Loans and the Term Loans in effect from
time to time pursuant to the provisions of SECTIONS 5.1(a), (b) or (c).

         "Eligible Account" means an Account of a Borrower that consists of the
unpaid portion of the obligation stated on the invoice issued to an Account
Debtor with respect to Inventory sold and shipped to or services performed for
such Account Debtor in the ordinary course of business, net of any credits or
rebates owed by such Borrower to the Account Debtor and that meets all of the
following requirements:

         (a)      such Account is owned by a Borrower and represents a complete
bona fide transaction which requires no further act under any circumstances on
the part of such Borrower to make such Account payable by the Account Debtor;

         (b)      such Account (i) is not unpaid more than 90 days after its
invoice date or more than 60 days after due date or (ii) is not unpaid more
than 210 days after invoice date or more than 30 days after due date and when
added to all other Accounts determined to be Eligible Accounts by reason of
this CLAUSE (b)(ii) does not exceed $65,000,000 in the aggregate;

         (c)      such Account does not arise out of any transaction with any
Subsidiary, Affiliate, director, officer, agent, stockholder or employee of
such Subsidiary or Affiliate of a Borrower or with any creditor, lessor or
supplier of a Borrower;

         (d)      such Account is not owing by an Account Debtor more than 50%
of whose then-existing accounts owing to the Borrowers do not meet the
requirements set forth in CLAUSE (b) above;

         (e)      if the Account Debtor with respect thereto is located outside
of the United States of America, Canada or Puerto Rico, the goods which gave
rise to such Account were shipped after receipt by a Borrower from the Account
Debtor of an irrevocable letter of credit that has been confirmed by a
financial institution that meets the requirements set forth in SUBSECTION (c)
of the definition "Cash Equivalents" or is otherwise acceptable to the
Administrative Agent in its

                                      12
<PAGE>

reasonable credit judgment and is in form and substance acceptable to the
Administrative Agent, payable in the full amount of the face value of the
Account in Dollars at a place of payment located within the United States;

         (f)      the Account Debtor with respect to such Account is not
located in a state which imposes conditions on the enforceability of Accounts,
with which such Borrower has not complied;

         (g)      such Account is not subject to the Assignment of Claims Act
of 1940, as amended from time to time, or any Applicable Law now or hereafter
existing similar in effect thereto, as determined in the reasonable discretion
of the Administrative Agent, or to any provision prohibiting its assignment or
requiring notice of or consent to such assignment, unless all such required
notices have been given and such consents received such that such Account has
been validly assigned to the Administrative Agent;

         (h)      a Borrower is not in breach of any express or implied
representation or warranty with respect to the goods the sale of which gave
rise to such Account;

         (i)      the Account Debtor with respect to such Account (other than
any Designated Account Debtor) is not insolvent or the subject of any
bankruptcy or insolvency proceedings of any kind or of any other proceeding or
action, threatened or pending, which might, in the Administrative Agent's
reasonable judgment, have a materially adverse effect on such Account Debtor;

         (j)      the goods, the sale of which gave rise to such Account, were
shipped or delivered to the Account Debtor on an absolute sale basis and not on
a bill-and-hold sale basis, a consignment sale basis, a guaranteed sale basis,
a sale or return basis or on the basis of any other similar understanding, and
such goods have not been returned or rejected;

         (k)      such Account is not owing by an Account Debtor or a group of
Account Debtors who are Affiliates whose then-existing accounts owing to the
Borrowers exceed in face amount 10% (or, as to any Designated Account Debtor,
the percentage set forth on SCHEDULE 1.1D - DESIGNATED ACCOUNT DEBTORS) of the
Borrowers' total Eligible Accounts;

         (l)      such Account is evidenced by an invoice or other
documentation issued in the name of the applicable Borrower and containing
payment instructions consistent with the terms of this Agreement;

         (m)      such Account is a valid, legally enforceable obligation of
the Account Debtor with respect thereto and is not subject to any present, or
contingent (and no facts exist which are the basis for any future), offset,
deduction or counterclaim, dispute or other defense on the part of such Account
Debtor, provided only an amount equal to the amount of such offset, deduction,
counterclaim dispute or other defense shall be ineligible by reason thereof;

         (n)      such Account is not evidenced by chattel paper or an
instrument of any kind unless such chattel paper or instrument is in the
possession of the Administrative Agent;

                                      13
<PAGE>

         (o)      such Account does not arise from the performance of warranty
services or out of account service charges by a Borrower or other fees for the
time value of money;

         (p)      such Account is subject to the Security Interest, which is
perfected as to such Account, and is subject to no other Lien whatsoever other
than Permitted Liens arising by operation of law and the goods giving rise to
such Account were not, at the time of the sale thereof, subject to any Lien
other than the Security Interest or other Permitted Liens arising by operation
of law; and

         (q)      such Account is not determined by the Administrative Agent in
the exercise of its reasonable credit judgment to be ineligible for any other
reason.

         "Eligible Amounts Due From Factor" means the net amount payable from
time to time to the Borrowers by factors to which accounts receivable which
would be Eligible Accounts but for the fact that they remain unpaid beyond the
limits specified in the definition "Eligible Accounts," have been sold or
transferred in accordance with the provisions of SECTION 12.7(e), to the extent
that such factors (x) have assumed the risk of loss resulting from an Account
Debtor's failure to pay such accounts receivable at maturity because of its
financial inability and (y) otherwise have no rights of offset against
collections not approved by the Administrative Agent.

         "Eligible Assignee" means any Lender and any financial institution,
fund, insurance company, trust or other Person that has as one of its
businesses, making or investing in commercial loans.

         "Eligible Inventory" means items of Inventory of a Borrower held for
sale in the ordinary course of business of such Borrower which meet all of the
following requirements:

         (a)      such Inventory is owned by a Borrower, is subject to the
Security Interest, which is perfected as to such Inventory, and is subject to
no other Lien whatsoever other than Permitted Liens arising by operation of
law;

         (b)      such Inventory consists of raw materials, finished goods or
work-in-process;

         (c)      such Inventory is in good condition and meets, in all
material respects, all standards applicable to such goods, their use or sale
imposed by any governmental agency, or department or division thereof, having
regulatory authority over such matters;

         (d)      such Inventory is currently either usable or saleable, at
prices approximating at least cost, in the normal course of the relevant
Borrower's business;

         (e)      such Inventory is not obsolete or repossessed or used goods
taken in trade or returned goods;

         (f)      such Inventory is located within the United States and is at
one of the locations listed in SCHEDULE 7.1(u) - PART A or is in transit in the
United States to such a location (PROVIDED that the value of such in transit
Inventory, when added to the value of all Inventory in transit in the United
States to such a location at such time, does not exceed $15,000,000 in the
aggregate) or is located in Puerto Rico at one of the locations listed in
SCHEDULE 7.1(u) - PART B;

                                      14
<PAGE>

         (g)      such Inventory was not produced in violation of the Fair
Labor Standards Act and subject to the so called "hot goods" provisions
contained in Title 29, Chapter 8, U.S.C. ss. 215(a);

         (h)      such Inventory is in the possession and control of a Borrower
or is held by a third party bailee or processor and not any other third party
and (A) if located in a warehouse or other facility leased by a Borrower, or
(B) so held by a third party bailee or processor, the warehouseman, lessor,
bailee or processor has delivered to the Administrative Agent a lien waiver or
subordination in such form as may be reasonably requested by the Administrative
Agent;

         (i)      such Inventory is not subject to any license agreement with
any third party prohibiting or restricting in a manner materially adverse to
the interests of the Administrative Agent and the Lenders, its sale, transfer
or disposition by the Administrative Agent or any Lender upon default by the
Borrowers hereunder or, if such Inventory is subject to such an agreement, a
Licensor Agreement has been executed and delivered by the applicable licensor;
and.

         (j)      such Inventory is not determined by the Administrative Agent
in its reasonable credit judgment to be ineligible for any other reason.

         "Environmental Compliance Reserve" means any reserve for the cost of
Remedial Action by a Borrower determined by the Administrative Agent from time
to time in its reasonable discretion based upon the reports delivered pursuant
to SECTION 10.9(b) and such other advice, analysis and engineering studies as
it deems appropriate.

         "Environmental Laws" means all federal, state, local and foreign laws
from time to time in effect relating to pollution or protection of the
environment, including laws relating to emissions, discharges, Releases or
threatened Releases of pollutants, Contaminants, chemicals, or industrial,
toxic or hazardous substances or wastes into the environment (including,
without limitation, ambient air, surface water, ground water, or land), or
otherwise relating to the manufacture, processing, distribution, use,
treatment, storage, disposal, removal, transport, or handling of pollutants,
Contaminants, chemicals, or industrial, toxic or hazardous substances or
wastes, and any and all regulations, notices or demand letters issued, entered,
promulgated or approved thereunder; such laws and regulations include but are
not limited to the Resource Conservation and Recovery Act, 42 U.S.C.ss. 6901 et
seq., as amended; the Comprehensive Environmental Response, Compensation and
Liability Act, 42 U.S.C.ss. 9601 et seq., as amended; the Toxic Substances
Control Act, 15 U.S.C.ss. 2601 et seq., as amended; the Clean Air Act, 46
U.S.C.ss. 7401 et seq., as amended; and state and federal lien and
environmental cleanup programs.

         "Environmental Lien" means a Lien in favor of any governmental entity
for (a) any liability under Environmental Laws or (b) damages arising from, or
costs incurred by such governmental entity in response to, a Release or
threatened Release of Contaminant into the environment.

         "Equipment" has the meaning set forth in the definition "Collateral".

                                      15
<PAGE>

         "Equity Interests" means capital stock, member interests, limited
partnership interests or any other right to participate in the governance and
profits of a Person that is not Debt or subject to redemption at the option of
the holder.

         "Event of Default" means any of the events specified in SECTION 13.1,
PROVIDED that any requirement for notice or lapse of time or any other
condition has been satisfied.

         "Excess Cash Flow" means, for any specified accounting period, EBITDA
for such period, less the sum of (i) cash income taxes paid, (ii) Restricted
Distributions, (iii) Capital Expenditures (other than Financed Capex), (iv)
cash interest payments, (v) scheduled repayments of principal of outstanding
Debt actually paid and (vi) Previously Reserved Cash Payments made during the
same period, in each case determined in accordance with GAAP on a consolidated
basis for Russell and its Consolidated Subsidiaries,

where "Previously Reserved Cash Payment" means any payment made in cash during
any Fiscal Quarter in respect of any charge, expense, loss or similar item as
to which a reserve was established in the same or a prior Fiscal Quarter, to
the extent that the amount of such reserve was not deducted in computing Net
Income or Net Loss for such Fiscal Quarter (or any accounting period including
such Fiscal Quarter).

         "FCC" means Fleet Capital Corporation, a Rhode Island corporation.

         "FSI" means Fleet Securities, Inc., a New York corporation.

         "Facility" means each of the Revolving Credit Facility, the Swingline
Facility, and the Term Loan Facility.

         "Facility Percentage" means as to any Lender at the time of
determination, the percentage obtained by dividing such Lender's Commitment
with respect to a specified Facility or, if the Commitments under such Facility
have terminated, such Lender's Loans outstanding under a specified Facility, by
the aggregate Commitments or Loans under the same Facility at such time.

         "Federal Funds Rate" means, for any period, a fluctuating interest
rate per annum equal for each day during such period to the weighted average of
the rates on overnight federal funds transactions with members of the Federal
Reserve system arranged by federal funds brokers, as published for such day
(or, if such day is not a Business Day, for the next preceding Business Day) by
the Federal Reserve Bank of New York, or, if such rate is not so published for
any day which is a Business Day, the average of the quotations for such day on
such transactions received by Bank from three federal funds brokers of
recognized standing selected by Bank.

         "Financed Capex" means Capital Expenditures funded with the proceeds
of permitted Debt (other than Loans) or up to $10,000,000 of insurance proceeds
in respect of any casualty applied to replace damaged or destroyed property in
respect of which such proceeds were paid.

         "Financial Officer" means the Chief Financial Officer, Treasurer or
Controller of Russell.

         "Financing Statements" means any and all UCC financing statements that
the Administrative Agent is authorized to file, in form and substance
satisfactory to the

                                      16
<PAGE>

Administrative Agent, naming the Administrative Agent, for the benefit of the
Lenders, as secured party or assignee and a Loan Party as debtor, in connection
with this Agreement or any Security Document.

         "Fiscal Quarter" means each of four consecutive periods of 13 (or 14)
consecutive weeks, beginning on the first day of each Fiscal Year.

         "Fiscal Year" means each period of 52 (or 53) consecutive weeks of
Russell beginning on the day after the last day of the preceding Fiscal Year
and ending on the Saturday closest to December 31 and when preceded or followed
by the designation of a calendar year means the fiscal year of Russell ending
on the Saturday closest to December 31 of such designated calendar year.

         "Fixed Charge Coverage Ratio" means, for any specified accounting
period, the ratio of EBITDA of Russell and its Consolidated Subsidiaries for
such period, less the sum of cash income taxes paid, Restricted Payments,
Restricted Distributions, Capital Expenditures (other than Financed Capex) and
Previously Reserved Cash Payments made, on a consolidated basis by Russell and
its Consolidated Subsidiaries during such period, to the sum of (i) interest
expense for such period plus (ii) current maturities of long-term Debt as of
the date of determination, in each case determined in accordance with GAAP on a
consolidated basis for Russell and its Consolidated Subsidiaries; PROVIDED,
that for any specified accounting period of less than four consecutive Fiscal
Quarters, current maturities of long-term Debt as of the date of determination
shall be multiplied by a fraction, the numerator of which is the number of
Fiscal Quarters included in such specified accounting period and the
denominator of which is four.

         "Foreign Lender" means any Lender that is not a "U.S. Person" as
defined in Section 7701(a)(3) of the Code.

         "Foreign Subsidiary" means any Subsidiary organized under the laws of
a jurisdiction outside of the United States of America.

         "Foreign Subsidiary Debt Limit" means as of the date of determination,
an amount equal to the sum, without duplication, of (1) 75% of the net book
value of the accounts receivable of Foreign Subsidiaries of Russell at such
date and (2) 40% of the net book value of the inventories of Foreign
Subsidiaries of Russell at such date. Net book value shall be determined in
accordance with GAAP and as reflected on the most recent available balance
sheet (it being understood that accounts receivable and inventories of an
acquired business may be included if such acquisition has been completed on or
prior to the date of determination).

         "Funded Debt" means, at any time, the aggregate outstanding principal
amount of all Debt of Russell and its Consolidated Subsidiaries, on a
consolidated basis, at such time.

         "GAAP" means generally accepted accounting principles consistently
applied and maintained throughout the period indicated and, when used with
reference to Russell, the Borrowers or any Subsidiary, consistent with the
prior financial practice of Russell, as reflected in the financial statements
referred to in SECTION 7.1(n); PROVIDED, HOWEVER, that, in the event that
changes shall be mandated by the Financial Accounting Standards Board or any
similar accounting authority of comparable standing, or shall be recommended by
the Borrowers'

                                      17
<PAGE>

independent public accountants, such changes shall be included in GAAP as
applicable to the Borrowers only from and after such date as the Borrowers, the
Required Lenders and the Administrative Agent shall have amended this Agreement
to the extent necessary to reflect any such changes to the financial covenants
set forth in ARTICLE 12 necessary to maintain comparability after going effect
to such change.

         "General Intangibles" has the meaning set forth in the definition
"Collateral".

         "Government Acts" has the meaning set forth in SECTION 3.8(a)(ii).

         "Governmental Approvals" means all authorizations, consents,
approvals, licenses and exemptions of, registrations and filings with, and
reports to, all governmental bodies, whether federal, state, local or foreign
national or provincial and all agencies thereof.

         "Guarantor" means each Subsidiary listed as such on ANNEX C and any
other Person that guarantees the Secured Obligations, including any Subsidiary
that becomes a Guarantor in accordance with SECTION 10.10.

         "Guarantor Security Agreement" means a security agreement in
substantially the form of EXHIBIT I hereto or in such other form as may be
satisfactory to the Administrative Agent, executed by a Guarantor in favor of
the Administrative Agent.

         "Guaranty", "Guaranteed" or to "Guarantee" as applied to any
obligation of another Person shall mean and include

         (a)      a guaranty (other than by endorsement of negotiable
instruments for collection in the ordinary course of business), directly or
indirectly, in any manner, of any part or all of such obligation of such other
Person, and

         (b)      an agreement, direct or indirect, contingent or otherwise,
and whether or not constituting a guaranty, the practical effect of which is to
assure the payment or performance (or payment of damages in the event of
nonperformance) of any part or all of such obligation of such other Person
whether by

                  (i)      the purchase of securities or obligations,

                  (ii)     the purchase, sale or lease (as lessee or lessor) of
         property or the purchase or sale of services primarily for the purpose
         of enabling the obligor with respect to such obligation to make any
         payment or performance (or payment of damages in the event of
         nonperformance) of or on account of any part or all of such
         obligation, or to assure the owner of such obligation against loss,

                  (iii)    the supplying of funds to or in any other manner
         investing in the obligor with respect to such obligation,

                  (iv)     repayment of amounts drawn down by beneficiaries of
         letters of credit, or

                                      18
<PAGE>

                  (v)      the supplying of funds to or investing in a Person
         on account of all or any part of such Person's obligation under a
         Guaranty of any obligation or indemnifying or holding harmless, in any
         way, such Person against any part or all of such obligation.

         "Guaranty Agreement" means an agreement of Guaranty, substantially in
the form of EXHIBIT H hereto or in such other form as may be satisfactory to
the Administrative Agent, executed by a Guarantor in favor of the
Administrative Agent.

         "Indebtedness" of any Person means, without duplication, all items
(except for items of capital stock, additional paid-in capital or retained
earnings, or of general contingency or deferred tax reserves) which in
accordance with GAAP would be included in determining total liabilities as
shown on the liability side of a balance sheet of such Person as at the date as
of which liabilities are to be determined and to the extent not otherwise
included in the foregoing, the following:

         (a)      all obligations for money borrowed or for the deferred
purchase price of property or services or in respect of drafts accepted or
similar instruments or reimbursement obligations under letters of credit,

         (b)      all obligations (including, during the noncancellable term of
any lease in the nature of a title retention agreement, all future payment
obligations under such lease discounted to their present value in accordance
with GAAP) secured by any Lien to which any property or asset owned or held by
such Person is subject, whether or not the obligation secured thereby shall
have been assumed by such Person,

         (c)      all obligations of other Persons which such Person has
Guaranteed, including, but not limited to, all obligations of such Person
consisting of recourse liability with respect to accounts receivable sold or
otherwise disposed of by such Person, and

         (d)      in the case of the Loan Parties (without duplication) all
Secured Obligations and all obligations in respect of the Senior Notes.

         "Initial Loans" means the Revolving Credit Loans and the Term Loans
made to the Borrowers on the Effective Date pursuant to the Initial Notice of
Borrowing.

         "Initial Notice of Borrowing" means the Notice of Borrowing given by
the Borrowers pursuant to SECTION 6.1(c)(18), which shall also specify the
method of disbursement.

         "Installment Payment Date" means as applied to the Term Loan, each
September 30 and December 31, commencing September 30, 2002.

         "Intellectual Property" means all of the Loan Parties' now owned and
hereafter arising or acquired: Patents, Copyrights and Trademarks, including,
without limitation, the Intellectual Property set forth on SCHEDULE 7.1(x)
hereto.

         "Interest Period" means with respect to each LIBOR Loan, the period
commencing on the date of the making or continuation of or conversion to such
LIBOR Loan and ending one, two,

                                      19
<PAGE>

three or six months thereafter, as the Borrowers may elect in the applicable
Notice of Borrowing or Notice of Conversion or Continuation; PROVIDED, that:

                  (i)      any Interest Period that would otherwise end on a
         day that is not a Business Day shall, subject to the provisions of
         CLAUSE (iii) below, be extended to the next succeeding Business Day
         unless such Business Day falls in the next calendar month, in which
         case such Interest Period shall end on the immediately preceding
         Business Day;

                  (ii)     any Interest Period that begins on the last Business
         Day of a calendar month (or on a day for which there is no numerically
         corresponding day in the calendar month at the end of such Interest
         Period) shall, subject to CLAUSE (iii) below, end on the last Business
         Day of a calendar month;

                  (iii)    any Interest Period that would otherwise end after
         the Termination Date shall end on the Termination Date;

                  (iv)     no Interest Period applicable to a LIBOR Term Loan
         may end after the next applicable Installment Payment Date, unless the
         aggregate principal amount of Base Rate Term Loans and LIBOR Term
         Loans having Interest Periods ending prior to such applicable
         Installment Payment Date is at least equal to the amount of the
         principal repayment due hereunder on such Installment Payment Date;
         and

                  (v)      notwithstanding CLAUSE (iii) above, no Interest
         Period shall have a duration of less than one month and if any
         applicable Interest Period would be for a shorter period, such
         Interest Period shall not be available hereunder.

         "Interest Rate Agreement" means any interest rate agreement, interest
rate future agreement, interest rate option agreement, interest rate swap
agreement, interest rate cap agreement, interest rate collar agreement,
interest rate hedge agreement or other similar agreement or arrangement between
any Borrower and a Lender or an Affiliate of a Lender.

         "Inventory" has the meaning set forth in the definition "Collateral".

         "Investment" means, with respect to any Person:

         (a)      the acquisition or ownership by such Person of any share of
capital stock, membership interest, partnership interest, evidence of
Indebtedness or other security or equity interest issued by any other Person,

         (b)      any loan, advance or extension of credit to, or contribution
to the capital of, any other Person, excluding advances to employees in the
ordinary course of business for business expenses,

         (c)      any Guaranty of the obligations of any other Person,

         (d)      any other investment (other than the Acquisition of a
Business Unit) in any other Person, and

                                      20
<PAGE>

         (e)      any commitment or option to make any of the investments
listed in CLAUSES (a) through (d) above if, in the case of an option, the
consideration therefor exceeds $100.

         "Investment Account" has the meaning set forth in the definition
"Collateral".

         "Investment Property" has the meaning set forth in the definition
"Collateral".

         "IRS" means the Internal Revenue Service.

         "Issuing Bank" means Bank or another Lender acceptable to the
Administrative Agent in its reasonable judgment.

         "L/C Inventory Amount" means at any time, the lesser of (a) the sum of
50% as to raw materials and 60% as to finished goods and (b) 85% of the
Appraised Value of raw materials and finished goods, as applicable, of the
Letter of Credit Amounts of outstanding documentary Letters of Credit opened
for the benefit of vendors to the Loan Parties of goods which, when delivered
to a Loan Party, will constitute Inventory of such type of such Loan Party.

         "Lender" means at any time any Person party to this Agreement at such
time as a "Lender", including any such Person becoming a party hereto pursuant
to the provisions of ARTICLE 14.

         "Letter of Credit" means (i) any letter of credit issued by Wachovia
Bank, National Association for the account of a Borrower, outstanding on the
Effective Date, Guaranteed by FCC pursuant to ARTICLE 3 and listed on ANNEX D
and (ii) any Letter of Credit issued by the Issuing Bank for the account of a
Loan Party and Guaranteed by FCC pursuant to ARTICLE 3.

         "Letter of Credit Amount" with respect to any Letter of Credit
Guarantee, means the aggregate maximum amount at any time available for drawing
under the Guaranteed Letter of Credit at such time (assuming all conditions to
drawing are satisfied).

         "Letter of Credit Availability" means, as of the date of
determination, the aggregate face amount of Letter of Credit Obligations
available to be incurred hereunder at the time of determination in accordance
with SECTION 3.2, which shall be an amount equal to the lesser of (i) the
Letter of Credit Guarantee Facility minus the Letter of Credit Obligations and
(ii) Availability, on such date.

         "Letter of Credit Guarantee" means any Guarantee pursuant to which FCC
or any of its Affiliates Guarantees to the Issuing Bank, the payment or
performance by a Borrower of its Reimbursement Obligations under any Letter of
Credit, including by FCC's (or such Affiliate's) joining in the Reimbursement
Agreement for such Letter of Credit as a co-applicant or otherwise as
acceptable to the Issuing Bank.

         "Letter of Credit Guarantee Facility" means a subfacility of the
Revolving Credit Facility providing for the issuance of Letters of Credit and
Letter of Credit Guarantees as described in ARTICLE 3 up to an aggregate amount
of Letter of Credit Obligations at any one time outstanding not to exceed the
amount of $50,000,000.

                                      21
<PAGE>

         "Letter of Credit Obligations" means, at any time, the sum of (a) the
Reimbursement Obligations of the Borrowers at such time, plus (b) the aggregate
Letter of Credit Amount of Letter of Credit Guarantees outstanding at such
time, plus (c) the aggregate Letter of Credit Amount of Letter of Credit
Guarantees the issuance of which has been authorized by the Administrative
Agent, FCC and the Issuing Bank pursuant to SECTION 3.4(b) but that have not
yet been issued, in each case as determined by the Administrative Agent.

         "Letter of Credit Reserve" means, at any time, the aggregate Letter of
Credit Obligations at such time, other than Letter of Credit Obligations that
are fully secured by Cash Collateral.

         "Leverage Ratio" as of any specified date, means the ratio of (i)
Funded Debt as of such date to (ii) the sum of EBITDA of Russell and its
Consolidated Subsidiaries for the specified accounting period ending on such
date, PLUS, $53,769,000 and $61,024,000 in respect of the third and fourth
Fiscal Quarters, respectively, of Fiscal Year 2001.

         "LIBOR" means for any LIBOR Loan, the rate per annum (rounded upward,
if necessary to the nearest 1/32 of one percent) as determined on the basis of
the offered rates for deposits in Dollars, for a period comparable to the
Interest Period for such LIBOR Loan which appears on the Telerate page 3750 as
of 11:00 a.m. (London time) on the day that is three Business Days preceding
the first day of the Interest Period for such LIBOR Loan divided by an amount
equal to one minus the Reserve Percentage; PROVIDED, HOWEVER, if the rate
described above does not appear on the Telerate System on any applicable
interest determination date, LIBOR shall be the rate (rounded upwards as
described above, if necessary) for deposits in Dollars for a period
substantially equal to the Interest Period for such LIBOR Loan appearing on the
Reuters Page "LIBO" (or such other page as may replace the LIBO Page on that
service for the purpose of displaying such rates), as of 11:00 a.m. (London
time), on the day that is three Business Days prior to the beginning of such
Interest Period divided by an amount equal to one minus the Reserve Percentage.
If both the Telerate and Reuters systems are unavailable, then the rate for
that date will be determined on the basis of the offered rates for deposits in
Dollars for a period comparable to the Interest Period for such LIBOR Loan
which are offered by four major banks in the London interbank market at
approximately 11:00 a.m. (London time), on the day that is three Business Days
preceding the first day of the Interest Period for such LIBOR Loan, as selected
by the Administrative Agent. The principal London office of each of the major
London Banks so selected will be requested to provide a quotation of its Dollar
deposit offered rate. If at least two such quotations are provided, the rate
for that date will be the arithmetic mean of the quotations divided by an
amount equal to one minus the Reserve Percentage. If fewer than two quotations
are provided as requested, the rate for that date will be determined on the
basis of the rates quoted for loans in Dollars to leading European banks for a
period comparable to the Interest Period for such LIBOR Loan offered by major
banks in New York City at approximately 11:00 a.m. (New York City time), on the
day that is two Business Days preceding the first day of the Interest Period
for such LIBOR Loan divided by an amount equal to one minus the Reserve
Percentage. In the event that Lender is unable to obtain any such quotation as
provided above, it will be determined that LIBOR for such LIBOR Loan cannot be
determined.

         "LIBOR Loan" means any Loan (other than a Swingline Loan) bearing
interest at a rate determined with reference to LIBOR, including any such Loans
continued as or converted into a LIBOR Loan on the same day by the Lenders for
the same Interest Period.

                                      22
<PAGE>

         "LIBOR Revolving Credit Loan" means a LIBOR Loan outstanding under the
Revolving Credit Facility.

         "LIBOR Term Loan" means a LIBOR Loan outstanding under the Term Loan
Facility.

         "Licensor Agreement" means an agreement of a licensor with respect to
the inclusion in Collateral and the disposition of Inventory of any Borrower
incorporating copyrighted designs, bearing a trademark or otherwise utilizing
Intellectual Property licensed by such licensor to such Borrower, in form and
substance satisfactory to the Administrative Agent in its sole discretion.

         "Lien" as applied to the property of any Person means:

         (a)      any mortgage, deed to secure debt, deed of trust, lien,
pledge, charge, or lease constituting a Capitalized Lease Obligation other than
a lease resulting from a sale/leaseback transaction to which a Loan Party or
any Subsidiary is a party as seller/lessee,

         (b)      any arrangement, express or implied, under which any property
of such Person is transferred, sequestered or otherwise identified for the
purpose of subjecting the same to the payment of Indebtedness or performance of
any other obligation in priority to the payment of the general, unsecured
creditors of such Person,

         (c)      any Indebtedness which is unpaid more than 30 days after the
same shall have become due and payable and which if unpaid might by law
(including, but not limited to, bankruptcy and insolvency laws), or otherwise,
be given any priority whatsoever over the claims of general unsecured creditors
of such Person,

         (d)      the filing of, or any agreement to give, any financing
statement under the UCC or its equivalent in any jurisdiction, excluding
informational financing statements relating to property leased by Russell or
any Subsidiary, and

         (e)      in the case of Real Estate, reservations, exceptions,
encroachments, easements, rights-of-way, covenants, conditions, restrictions,
leases and other title exceptions and encumbrances.

         "Loan" means any Revolving Credit Loan, Swingline Loan or Term Loan,
as well as all such loans collectively, as the context requires.

         "Loan Account" and "Loan Accounts" have the meanings set forth in
SECTION 5.5.

         "Loan Documents" means collectively this Agreement, the Notes, the
Security Documents and each other instrument, agreement or document executed by
a Borrower, a Guarantor or any Affiliate or Subsidiary of a Borrower or a
Guarantor in connection with this Agreement whether prior to, on or after the
Effective Date and each other instrument, certificate, agreement or document
referred to herein or contemplated hereby.

         "Loan Party" means each of the Borrowers and each Guarantor.

         "Lockbox" means each U. S. Post Office Box specified in a Lockbox
Agreement.

                                      23
<PAGE>

         "Lockbox Agreement" means each agreement between a Borrower and a
Clearing Bank concerning the establishment of a Lockbox for the collection of
Accounts.

         "Margin Adjustment Date" has the meaning set forth in the definition
"Applicable Margin."

         "Materially Adverse Effect" means any act, omission, situation,
circumstance, event or undertaking which could reasonably be expected to have,
singly or in any combination with one or more other acts, omissions,
situations, circumstances, events or undertakings, a materially adverse effect
upon (a) the business, assets, properties, liabilities, condition (financial or
otherwise), results of operations or business prospects of Russell and its
Subsidiaries taken as a whole, (b) the value of the whole or any material part
of the Collateral, or the enforceability or priority of the Security Interest,
(c) the respective abilities of the Borrowers to perform all material
obligations under this Agreement or any other Loan Document to which they are
parties, or (d) the legality, validity, binding effect, enforceability or
admissibility into evidence of any Loan Document or the rights or remedies of
the Administrative Agent or the Lenders under or in connection with any Loan
Document.

         "Maximum Rate" has the meaning set forth in SECTION 5.1(f).

         "Moody's" means Moody's Investors Service, Inc.

         "Mortgage" means each mortgage, deed of trust, deed to secure debt or
other instrument creating or purporting to create a Lien on Real Estate as
security for the Secured Obligations or any part thereof.

         "Multiemployer Plan" means a "multiemployer plan" as defined in
Section 4001(a)(3) of ERISA to which a Borrower or a Related Company is
required to contribute or has contributed within the immediately preceding six
years.

         "Net Amount" means, with respect to any Investments made by any
Person, the gross amount of all such Investments minus the aggregate amount of
all cash received and the fair value, at the time of receipt by such Person, of
all property received as payments of principal or premiums, returns of capital,
liquidating dividends or distributions, proceeds of sale or other dispositions
with respect to such Investments.

         "Net Income" or "Net Loss" means, as applied to any Person (not on a
consolidated basis) for any accounting period, the net income or net loss, as
the case may be, of such Person for the period in question determined in
accordance with GAAP, provided that there shall be excluded:

         (a)      the net income or net loss of any Person accrued prior to the
date it becomes a Subsidiary of, or is merged into or consolidated with, the
Person whose Net Income is being determined or a Subsidiary of such Person,
except to the extent it constitutes Permitted Pro Forma Adjustments,

         (b)      the net income or net loss of any Person in which the Person
whose Net Income is being determined or any Subsidiary of such Person has an
ownership interest, except, in the case

                                      24
<PAGE>

of net income, to the extent that any such income has actually been received by
such Person or such Subsidiary in the form of cash dividends or similar
distributions,

         (c)      any restoration of any contingency reserve, except to the
extent that provision for such reserve was made out of income during any prior
period,

         (d)      any net gains or losses on the sale or other disposition, not
in the ordinary course of business, of Investments, Business Units and other
capital assets, provided that there shall also be excluded any related charges
for taxes thereon,

         (e)      any net gain arising from the collection of the proceeds of
any insurance policy,

         (f)      any write-up of any asset, and

         (g)      any other extraordinary item.

         "Net Proceeds" means proceeds received by a Borrower or any of its
Subsidiaries in cash from any Asset Disposition (including, without limitation,
payments received under notes or other debt securities accepted by such
Borrower or Subsidiary in connection with such Asset Disposition), net of: (a)
the transaction costs of such sale, lease, transfer or other disposition; (b)
any tax liability arising from such transaction; and (c) amounts applied to
repayment of Indebtedness (other than the Secured Obligations) secured by a
Lien on the asset or property disposed of.

         "Note" means any of the Revolving Credit Notes, the Swingline Note and
the Term Notes and "Notes" means more than one such Note.

         "Notice of Borrowing" means a written notice (including by electronic
mail, but subject to any Bank requirements applicable from time to time of
which Russell has received notice), or telephonic notice followed by a
confirming same-day written notice, requesting a Borrowing of (i) Base Rate
Revolving Credit Loans or LIBOR Revolving Credit Loans or (ii) a Swingline
Loan, which is given by telex or facsimile transmission in accordance with the
applicable provisions of SECTION 2.2 or SECTION 2A.2, as the case may be, and
which specifies (i) the amount of the requested Borrowing, (ii) the date of the
requested Borrowing, and (iii) if the requested Borrowing is of LIBOR Loans,
the duration of the applicable Interest Period.

         "Notice of Conversion or Continuation" has the meaning specified in
SECTION 5.3.

         "Overadvance" means at any time the amount by which the principal
amount of Revolving Credit Loans and Swingline Loans outstanding at such time
exceeds the Borrowing Base.

         "Overadvance Condition" means and is deemed to exist any time the
principal amount of Revolving Credit Loans and Swingline Loans outstanding
exceeds the Borrowing Base.

         "Overadvance Loan" means a Revolving Credit Loan made at a time an
Overadvance Condition exists or which results in an Overadvance Condition.

                                      25
<PAGE>

         "PBGC" means the Pension Benefit Guaranty Corporation and any
successor agency.

         "Patent Security Agreement" means each Security Agreement (Patents)
made by a Loan Party to the Administrative Agent.

         "Patents" means and includes, in each case whether now existing or
hereafter arising or acquired, all of the Loan Parties' right, title and
interest in and to

                  (i)      any and all patents and patent applications,

                  (ii)     any improvements described and claimed therein,

                  (iii)    reissues, divisions, continuations, renewals,
         extensions and continuations-in-part thereof,

                  (iv)     income, royalties, damages, claims and payments now
         or hereafter due and/or payable under and with respect thereto,
         including, without limitation, damages and payments for past and
         future infringements thereof,

                  (v)      rights to sue for past, present and future
         infringements thereof, and

                  (vi)     all rights corresponding to any of the foregoing
         throughout the world.

         "Pending Loan" has the meaning specified in SECTION 5.15(b).

         "Permitted Acquisition" means an Acquisition by a Loan Party of Equity
Interests in or the assets of another Person, in an arm's length transaction
and in accordance with the provisions of SECTION 12.4(b).

         "Permitted Investments" means Investments of any Loan Party or
Subsidiary in:

         (a)      Cash Equivalents in an aggregate amount not to exceed
$7,500,000,

         (b)      sales of inventory on credit in the ordinary course of
business,

         (c)      in any Loan Party (including any Permitted Acquisition that
involves an Investment in Equity Interests of a Person that thereby becomes a
Loan Party),

         (d)      any Subsidiary that is not a Loan Party to the extent that
such Investment is outstanding on the Effective Date,

         (e)      shares of capital stock, evidence of Indebtedness or other
security acquired in consideration for or as evidence of past-due or
restructured Accounts,

         (f)      non-cash consideration received in connection with any Asset
Disposition otherwise permitted hereby,

         (g)      Guaranties permitted pursuant to SECTION 12.3,

                                      26
<PAGE>

         (h)      those items described on SCHEDULE 1.1B - PERMITTED
INVESTMENTS, and

         (i)      loans and advances (i) to officers, directors and employees
of any Loan Party or its Subsidiaries in the ordinary course of business or
(ii) to officers, directors and employees and to independent sales
representatives of any Loan Party or its Subsidiaries secured by the pledge of
shares of Russell capital stock made to finance the purchase by such officers,
directors, officers, directors, employees or representatives of such stock or
made to finance tax liabilities of any such Person resulting from the exercise
of stock options or the sale of capital stock of Russell by such Person, in
each case consistent with past practices of such Loan Party or Subsidiary and
consistent with Applicable Law.

         "Permitted Liens" means:

         (a)      Liens securing taxes, assessments and other governmental
charges or levies (excluding any Lien imposed pursuant to any of the provisions
of ERISA) or the claims of materialmen, repairmen, mechanics, carriers,
warehousemen or landlords for labor, materials, supplies or rentals incurred in
the ordinary course of business, but in all cases only if payment shall not at
the time be required to be made in accordance with SECTION 10.6,

         (b)      Liens consisting of deposits or pledges made in the ordinary
course of business in connection with, or to secure payment of, obligations
under workers' compensation, unemployment insurance or similar legislation or
under payment or performance bonds,

         (c)      Liens to which the priority of any Mortgage is subject as
evidenced by the related mortgagee title insurance policy accepted by the
Administrative Agent or constituting encumbrances in the nature of zoning
restrictions, condemnations, easements, and rights or restrictions of record on
the use of real property, which do not materially detract from the value of
such property or materially impair the use thereof in the business of a
Borrower,

         (d)      Liens of or resulting from any judgment or award that would
not result in an Event of Default under SECTION 13.1(k), the time for appeal or
petition for rehearing of which shall not have expired, or in respect of which
a Borrower or the affected Subsidiary shall at any time in good faith be
prosecuting an appeal or proceeding for review and in respect of which a stay
of execution pending such appeal or proceeding for review is in effect,

         (e)      Purchase Money Liens securing Permitted Purchase Money Debt
and Liens securing Debt permitted pursuant to SECTION 12.2(k),

         (f)      short term leases of Real Estate to third parties that (i)
are subordinate to the Mortgage (if any) encumbering such Real Estate and (ii)
do not interfere with the lessor's conduct of business on such Real Estate,

         (g)      Liens shown on SCHEDULE 1.1C - PERMITTED LIENS and Liens
created in connection with any Qualifying Refinancing of Debt,

         (h)      Liens of the Administrative Agent, for the benefit of itself,
the Lenders and Affiliates of the Lenders, arising under this Agreement and the
other Loan Documents,

                                      27
<PAGE>

         (i)      Liens in existence immediately prior to the Effective Date
that are satisfied in full and released (or assigned to and accepted by the
Administrative Agent) on the Effective Date or promptly thereafter as a result
of the application of the proceeds of the Initial Loans or cash on hand,

         (j)      Liens in favor of a Loan Party securing Debt owing to such
Loan Party by Russell or a Subsidiary to the extent such Liens are subordinated
to the Security Interest on terms acceptable to the Administrative Agent in its
reasonable credit judgment, and

         (k)      Liens on assets of Foreign Subsidiaries securing Debt
permitted by SECTION 12.2(j).

         "Permitted Pro Forma Adjustments" as applied to any Person or Business
Unit Acquired after the Effective Date means, as of any date of determination,
the actual results of operations of such Person or Business Unit for the period
of 12 months ended nearest to the date of determination, as if such Person or
Business Unit had been Acquired (and any related Debt had been incurred) on the
first day of such 12-month period, as adjusted with the approval of the
Administrative Agent to reflect verifiable, adequately documented severance
payments and reductions in officer and employee compensation, insurance
expenses, interest expense and rental and other overhead expense that will be
or were realized effective upon completion of such Acquisition.

         "Permitted Purchase Money Debt" means Purchase Money Debt of a
Borrower or a Subsidiary incurred after the Agreement Date

         (a)      which is secured by a Purchase Money Lien, and

         (b)      the aggregate principal amount of which does not exceed an
amount equal to 100% of the lesser of

                  (i)      the cost (including the principal amount of such
         Debt, whether or not assumed) of the tangible personal property (other
         than Inventory) subject to such Lien, and

                  (ii)     the fair value of such tangible personal property
         (other than Inventory) at the time of its acquisition.

         "Person" means an individual, corporation, limited liability company,
partnership, association, trust or unincorporated organization, or a government
or any agency or political subdivision thereof.

         "Pledge Agreement" means each of the Cross Creek Pledge Agreement, the
Cross Creek Apparel Pledge Agreement, the DeSoto Mills Pledge Agreement and the
Russell Pledge Agreement.

         "Previously Reserved Cash Payment" has the meaning specified in the
definition "Excess Cash Flow."

                                      28
<PAGE>

         "Projections" means the forecasted (a) consolidated balance sheets,
(b) consolidated income statements and (c) consolidated cash flow statements of
Russell and its Consolidated Subsidiaries for the Fiscal Years 2002 through
2006, prepared on a monthly basis for Fiscal Years 2002 and 2003, on a
quarterly basis for Fiscal Year 2004, and on an annual basis for each Fiscal
Year thereafter, delivered to the Administrative Agent and dated March 26,
2002, together with appropriate supporting detail and a statement of underlying
assumptions.

         "Purchase Money Debt" means Debt created to finance the payment of all
or any part of the purchase price of any tangible personal property (other than
Inventory) or real property and incurred at the time of or within 60 days prior
to or after the acquisition of such tangible asset.

         "Purchase Money Lien" means any Lien securing Purchase Money Debt, but
only if such Lien shall at all times be confined solely to the property (other
than Inventory) the purchase price of which was financed through the incurrence
of the Purchase Money Debt secured by such Lien.

         "Qualifying Refinancing" means any extension, refinancing, renewal,
replacement or refunding (each a "refinancing") of any Debt incurred and
outstanding in compliance with subsections (a), (b), (c), (f), (j) or (k) of
SECTION 12.2; PROVIDED that as a result thereof, (i) the principal amount of
such Debt is not increased, (ii) no additional security is granted, (iii) the
interest rate payable on such Debt does not exceed the lesser of the rate
applicable immediately prior to such extension, refinancing, renewal,
replacement or refunding, and the market interest rate for Debt of such type
issued by an entity similar to Russell, (iv) the weighted average life to
maturity of such Debt is not shortened and (v) neither Russell nor any
Subsidiaries become subject to financial covenants or other requirements that
are more restrictive or more onerous than the (analogous) provisions of the
agreement governing the Debt to be refinanced (or if no such agreement exists,
of this Agreement).

         "Ratable Share" or "Ratable" (and with corollary meaning, "Ratably")
means, as to a Lender, such Lender's share of an amount in Dollars or other
property at the time of determination equal to (i) such Lender's Facility
Percentage in respect of a specified Facility, or (ii) if no Facility is
specified (x) the percentage obtained by dividing such Lender's Revolving
Credit Commitment by the total Revolving Credit Commitments of all Lenders, (y)
if the Commitments are terminated, the percentage of the total principal amount
of Loans outstanding at such time obtained by dividing the principal amount of
the Loans then owing to such Lender by the total principal amount of all Loans
then owing to all Lenders, or (z) if the Commitments are terminated and no
Loans are outstanding, the percentage of the total Letter of Credit Obligations
then outstanding obtained by dividing such Lender's participation, if any, in
such Letter of Credit Obligations by the total Letter of Credit Obligations
then outstanding.

         "Real Estate" means all of the Loan Parties' now or hereafter owned or
leased estates in real property, including, without limitation, all fees,
leaseholds and future interests, together with all of the Loan Parties' now or
hereafter owned or leased interests in the improvements and emblements thereon,
the fixtures attached thereto and the easements appurtenant thereto, including,
without limitation the real property described on SCHEDULE 7.1(y).

         "Register" has the meaning specified in SECTION 14.1(d).

                                      29
<PAGE>

         "Reimbursement Agreement" means, with respect to a Letter of Credit,
such form of application therefor and form of reimbursement agreement therefor
(whether in a single document or several documents) as the Issuing Bank may
employ in the ordinary course of business for its own account, with such
modifications thereto as may be agreed upon by the Issuing Bank, FCC and the
relevant Borrower, provided that such application and agreement and any
modifications thereto are not inconsistent with the terms of this Agreement.

         "Reimbursement Obligations" means the unsatisfied reimbursement or
repayment obligations of the relevant Borrower to FCC pursuant to SECTION 3.6
or (but without duplication) to the Issuing Bank pursuant to a Reimbursement
Agreement with respect to amounts that have been drawn under Letters of Credit
Guaranteed by FCC.

         "Related Company" means any (i) corporation which is a member of the
same controlled group of corporations (within the meaning of Section 414(b) of
the Code) as any Borrower; (ii) partnership or other trade or business (whether
or not incorporated) under common control (within the meaning of Section 414(c)
of the Code) with any Borrower; or (iii) member of the same affiliated service
group (within the meaning of Section 414(m) of the Code) as any Borrower, any
corporation described in CLAUSE (i) above or any partnership, trade or business
described in CLAUSE (ii) above.

         "Release" means release, spill, emission, leaking, pumping, injection,
deposit, disposal, discharge, dispersal, leaching or migration into the indoor
or outdoor environment or into or out of any property, including the movement
of Contaminants through or in the air, soil, surface water or groundwater.

         "Remediable Defect" means an operational defect or violation that
could disqualify a Benefit Plan intended to qualify under Section 401(a) (and,
if applicable, Section 401(k)) of the Code and that can be remedied under the
IRS's Closing Agreement Program, Voluntary Compliance Resolution Program, or
Administrative Policy Regarding Self-Correction, without in any case a payment
to any governmental authority with respect to such Benefit Plan and any other
Benefit Plan of more than $500,000 in any calendar year.

         "Remedial Action" means actions required to (i) clean up, remove,
treat or in any other way address Contaminants in the indoor or outdoor
environment; (ii) prevent the Release or threat of Release or minimize the
further Release of Contaminants so they do not migrate or endanger or threaten
to endanger public health or welfare or the indoor or outdoor environment; or
(iii) perform pre-remedial studies and investigations and post-remedial
monitoring and care.

         "Required Lenders" means, at any time, any combination of two or more
Lenders whose combined Commitment Percentages at such time are greater than
51%.

         "Reserve Percentage" applicable to any Interest Period means the rate
(expressed as a decimal) applicable to United States commercial banks during
such Interest Period under regulations issued from time to time by the Board of
Governors of the Federal Reserve System for determining the maximum reserve
requirement (including, without limitation, any basic, supplemental, emergency
or marginal reserve requirement) of such banks with respect to "Eurocurrency
liabilities" as that term is defined under such regulations. Without limiting
the

                                      30
<PAGE>

effect of the foregoing, the Reserve Percentage shall include any other
reserves required to be maintained by such banks by reason of any regulatory
change with respect to (i) any category of liabilities that includes deposits
by reference to which LIBOR is to be determined as provided in the definition
or (ii) any category of extensions of credit or other assets that includes
LIBOR Loans.

         "Restricted Distribution" by any Person means (i) the retirement,
redemption, purchase, or other acquisition or retirement for value of any
capital stock or other Equity Interests (except interests acquired on the
conversion thereof into other Equity Interests of such Person) issued by such
Person, (ii) the declaration or payment of any dividend or distribution in cash
or property on or with respect to any such Equity Interests (other than
dividends payable solely in shares of its capital stock or other Equity
Interests), EXCLUDING, HOWEVER, any such dividend, distribution or payment to
any Loan Party by any Subsidiary of such Loan Party, and (iii) any other
payment by such Person in respect of such Equity Interests.

         "Restricted Payment" means (i) any redemption or prepayment or other
retirement (other than out of the proceeds of a Qualifying Refinancing), prior
to the stated maturity thereof or prior to the due date of any regularly
scheduled installment or amortization payment with respect thereto, of any Debt
(other than the Loans) or any payment of any Subordinated Debt other than in
accordance with the terms thereof and hereof, (ii) the payment by any Person of
the principal amount of or interest on any Indebtedness (other than trade debt)
owing to an Affiliate of such Person or to any Affiliate of any such Affiliate
(other than a Subsidiary) or to any Subsidiary that is not a Loan Party, (iii)
the repayment prior to the Termination Date of unsecured Debt in excess of
$2,000,000 incurred after the Agreement Date, and (iv) the payment of any
management, consulting or similar fee by any Person to any Affiliate of such
Person.

         "Revolving Credit Facility" means the credit facility providing for
Revolving Credit Loans based upon the Borrowing Base and described in SECTION
2.1 up to an aggregate principal amount at any one time outstanding not to
exceed $300,000,000 or such lesser amount as shall be specified by Russell in
accordance with SECTION 5.8.

         "Revolving Credit Lender" means each Lender having a Commitment under
the Revolving Credit Facility or, if the Commitments are terminated, having
outstanding Revolving Credit Loans.

         "Revolving Credit Loans" means Loans made to the Borrowers pursuant to
SECTION 2.1.

         "Revolving Credit Note" means each Revolving Credit Note made by the
Borrowers payable to the order of a Lender evidencing the joint and several
obligation of the Borrowers to pay the aggregate unpaid principal amount of the
Loans made to them by such Lender under the Revolving Credit Facility (and any
promissory note or notes that may be issued from time to time in substitution,
renewal, extension, replacement or exchange therefor whether payable to such
Lender or to a different Lender in connection with a Person becoming a Lender
after the Effective Date or otherwise) substantially in the form of EXHIBIT A-1
hereto, with all blanks properly completed, either as originally executed or as
the same may from time to time be supplemented, modified, amended, renewed,
extended or refinanced.

                                      31
<PAGE>

         "Royalty Reserve" means, at any time, an amount equal to (i) 5% of the
Appraised Value of Eligible Inventory of Mossy Oak Apparel Company, plus (ii)
the aggregate amount of all accrued and unpaid royalties owing by the Loan
Parties at such time in respect of Intellectual Property licensed to them and
incorporated in the Eligible Inventory of one or more Loan Parties, as the same
may be adjusted by the Administrative Agent in accordance with SECTION
5.9(C)(II).

         "Russell" means Russell Corporation, an Alabama corporation.

         "Russell Pledge Agreement" means the Stock Pledge Agreement dated on
or about the Effective Date between Russell and the Administrative Agent,
pursuant to which Russell pledges to the Administrative Agent all of the issued
and outstanding Equity Interests held by it of each Subsidiary (or as to
Foreign Subsidiaries, 65% of such Equity Interests) as security for its
obligations under this Agreement and the other Loan Documents.

         "S&P" means Standard & Poor's Ratings Services, a division of The
McGraw-Hill Companies.

         "Schedule of Accounts" means a schedule delivered by the Borrowers to
the Administrative Agent pursuant to the provisions of SECTION 9.11a.

         "Schedule of Inventory" means a schedule delivered by the Borrowers to
the Administrative Agent pursuant to the provisions of SECTION 9.11b.

         "Seasonal Increase" has the meaning specified in the definition
"Borrowing Base."

         "Section 12.4 Investment" means an Investment permitted pursuant to
the provisions of SECTION 12.4(a)(ii).

         "Secured Obligations" means, in each case whether now in existence or
hereafter arising,

         (a)      the principal of, and interest and premium, if any, on, the
Loans,

         (b)      the Letter of Credit Obligations and all other obligations of
the Borrowers to FCC, the Administrative Agent, any Lender or any Affiliate of
a Lender arising in connection with the issuance of Letters of Credit or Letter
of Credit Guarantees,

         (c)      all obligations of the Borrowers (or any of them) to any
Lender or any Affiliate of a Lender under any Interest Rate Agreement or
foreign exchange contract or option,

         (d)      all obligations of the Loan Parties to any Lender or Lender's
Affiliate in connection with the maintenance of accounts, funds transfer,
account analysis, cash management fees, and related items, and

         (e)      all Indebtedness, liabilities, obligations, covenants and
duties of the Borrowers (or any of them) or any Subsidiary to the
Administrative Agent, or the Lenders (or any of them) or to any Affiliate of
the Administrative Agent or any Lender of every kind, nature and description
arising under or in respect of this Agreement, the Notes or any of the other
Loan Documents, whether direct or indirect, absolute or contingent, due or not
due, contractual or tortious,

                                      32
<PAGE>

liquidated or unliquidated, and whether or not evidenced by any note, and
whether or not for the payment of money, including without limitation, fees
required to be paid pursuant to ARTICLE 5 and expenses required to be paid or
reimbursed pursuant to SECTION 16.2.

         "Security Documents" means each of this Agreement and the following:

         (a)      the Mortgages,

         (b)      the Financing Statements,

         (c)      the Pledge Agreements,

         (d)      the Guarantor Security Agreements,

         (e)      the Aircraft Security Agreement,

         (f)      the Control Agreements,

         (g)      the Licensor Agreements,

         (h)      the Trademark Security Agreement,

         (i)      the Patent Security Agreement,

         (j)      each Guaranty Agreement, and

         (k)      each other writing executed and delivered by a Loan Party or
any other Person securing the Secured Obligations.

         "Security Interest" means the Liens of the Administrative Agent, for
the benefit of itself as Administrative Agent and the Lenders and Affiliates of
the Lenders, on and in the Collateral and the Real Estate effected hereby or by
any of the Security Documents or pursuant to the terms hereof or thereof.

         "Senior Notes" means up to $250,000,000 aggregate principal amount at
maturity of 9-1/4% per annum unsecured Senior Notes due 2010 outstanding under
the Senior Note Indenture (including any "Exchange Notes" issued in respect of
the "Initial Notes" as each such term is defined in the Senior Note Indenture).

         "Senior Note Documents" means the Senior Notes, the Senior Note
Indenture and the Registration Rights Agreement, as defined in the Senior Note
Indenture.

         "Senior Note Indenture " means the Indenture dated as of April 18,
2002 entered into by Russell, certain Subsidiaries as guarantors, and Wachovia
Bank, National Association, as Trustee.

         "Subordinated Debt" means any Debt of a Borrower in an amount, and
that is subordinated to the Secured Obligations on terms and conditions,
acceptable to the Required Lenders.

                                      33
<PAGE>

         "Subsidiary" when used to determine the relationship of a Person to
another Person, means a Person of which more than 50% of any class or classes
of stock or more than 50% of other Equity Interests is owned of record or
beneficially by such other Person, or by one or more Subsidiaries of such other
Person, or by such other Person and one or more Subsidiaries of such Person,
(i) if the holders of such stock, or other Equity Interests, (A) are
ordinarily, in the absence of contingencies, entitled to vote for the election
of a majority of the directors (or other individuals performing similar
functions) of such Person, even though the right so to vote has been suspended
by the happening of such a contingency, or (B) are entitled, as such holders,
to vote for the election of a majority of the directors (or individuals
performing similar functions) of such Person, whether or not the right so to
vote exists by reason of the happening of a contingency, or (ii) in the case of
such other Equity Interests, if such Equity Interests constitute a majority
voting interest. When used without other designation of ownership, "Subsidiary"
means a Subsidiary of Russell.

         "Supporting Letter of Credit" has the meaning set forth in SECTION
3.9.

         "Swingline Facility" means an amount equal to $20,000,000.

         "Swingline Lender" means FCC and each Lender that succeeds to such
capacity with the consent of the Administrative Agent.

         "Swingline Loan" means each advance by the Swingline Lender to the
Borrowers pursuant to SECTION 2A.1.

         "Swingline Loan Request" has the meaning set forth in SECTION 2A.2.

         "Swingline Note" means the Swingline Note made by the Borrowers
payable to the order of the Swingline Lender evidencing the joint and several
obligation of the Borrowers to pay the aggregate unpaid principal amount of the
Swingline Loans made to them by the Swingline Lender under the Swingline
Facility (and any promissory note that may be issued from time to time in
substitution, renewal, extension, replacement or exchange therefor)
substantially in the form of EXHIBIT A-2 hereto, with all blanks properly
completed, either as originally executed or as the same may from time to time
be supplemented, modified, amended, renewed, extended or refinanced.

         "Term Loan" means the aggregate Loans outstanding under the Term Loan
Facility and refers to both LIBOR Term Loans and Base Rate Term Loans.

         "Term Loan Facility" means the credit facility described in SECTION
4.1(a) providing for Term Loans in the principal amount of up to the lesser of
(a) $25,000,000 and (b) the sum of 60% of the Appraised Value, on a net orderly
liquidation basis, of the Borrowers' Equipment, plus 50% of the Appraised
Value, on a fair market basis, of the Borrowers' Real Estate subject to
Mortgages.

         "Term Loan Lender" means each Lender holding any portion of the
outstanding Term Loan.

                                      34
<PAGE>

         "Term Note" means each Term Note made by the Borrowers payable to the
order of a Lender evidencing the joint and several obligation of the Borrowers
to pay the aggregate unpaid principal amount of the Loans made to them by such
Lender under the Term Loan Facility (and any promissory note or notes that may
be issued from time to time in substitution, renewal, extension, replacement or
exchange therefor whether payable to such Lender or to a different Lender in
connection with a Person becoming a Lender after the Effective Date or
otherwise) substantially in the form of EXHIBIT B hereto, with all blanks
properly completed, either as originally executed or as the same may from time
to time be supplemented, modified, amended, renewed, extended or refinanced.

         "Termination Date" means April 18, 2007 or such earlier date as all
Secured Obligations shall have been irrevocably paid in full and the Revolving
Credit Facility terminated.

         "Trademark Security Agreement" means each Security Agreement
(Trademarks), dated on or about the Effective Date, made by a Loan Party to the
Administrative Agent.

         "Trademarks" means and includes in each case whether now existing or
hereafter arising or acquired, all of the Borrowers' right, title and interest
in and to

         (a)      trademarks (including service marks), trade names and trade
styles and the registrations and applications for registration thereof and the
goodwill of the business symbolized by the trademarks,

         (b)      licenses of the foregoing, whether as licensee or licensor,

         (c)      renewals thereof,

         (d)      income, royalties, damages and payments now or hereafter due
and/or payable with respect thereto, including, without limitation, damages,
claims and payments for past and future infringements thereof,

         (e)      rights to sue for past, present and future infringements
thereof, including the right to settle suits involving claims and demands for
royalties owing, and

         (f)      all rights corresponding to any of the foregoing throughout
the world.

         "Type" when used in respect of any Loan or Borrowing, shall refer to
the rate by reference to which interest on such Loan or on the Loans comprising
such Borrowing is determined.

         "UCC" means the Uniform Commercial Code as in effect from time to time
in the relevant jurisdiction.

         "Unfunded Vested Accrued Benefits" means at any time, with respect to
any Benefit Plan that is a pension plan within the meaning of Section 3(2) of
ERISA (other than any such plan that is not intended to be a "qualified plan"
under Code Section 401(a)), the amount (if any) by which (a) the present value
of all vested nonforfeitable benefits under such Benefit Plan exceeds (b) the
fair market value of all such Benefit Plan assets allocable to such benefits,
as determined using

                                      35
<PAGE>

the valuation date and such reasonable actuarial methods and valuation
liability interest rate and other assumptions as are specified in the Schedule
B (Actuarial Information) to the most recent Annual Report (Form 5500) filed
with respect to such Benefit Plan.

         "Unused Commitments" has the meaning specified in SECTION 5.2(b).

         "Wholly Owned Subsidiary" when used to determine the relationship of a
Subsidiary to a Person means a Subsidiary all of the issued and outstanding
shares (other than directors' qualifying shares) of the capital stock or other
Equity Interests of which shall at the time be owned by such Person or one or
more of such Person's Wholly Owned Subsidiaries or by such Person and one or
more of such Person's Wholly Owned Subsidiaries.

         Section 1.2       General Interpretive Rules.

         (a)      All terms of an accounting nature not specifically defined
herein shall have the meanings ascribed thereto by GAAP.

         (b)      The terms accounts, chattel paper, contract rights,
documents, equipment, instruments, general intangibles, payment intangibles,
promissory note, supporting obligation, deposit account, and inventory, as and
when used in this Agreement or the Security Documents (without being
capitalized), shall have the meanings given those terms in the UCC.

         (c)      Unless otherwise specified, the words "hereof," "herein,"
"hereunder" and words of similar import, when used in this Agreement, refer to
this Agreement as a whole and not to any particular provision, section or
subsection of this Agreement.

         (d)      Wherever from the context it appears appropriate, each term
stated in either the singular or plural shall include the singular and plural,
and pronouns stated in the masculine, feminine or neuter gender shall include
the masculine, the feminine and the neuter. Words denoting individuals include
corporations and vice versa.

         (e)      References to any legislation or statute or code, or to any
provisions of any legislation or statute or code, shall include any
modification or reenactment of, or any legislative, statutory or code provision
substituted for, such legislation, statute or code or provision thereof.

         (f)      References to any document or agreement (including this
Agreement) shall include references to such document or agreement as amended,
novated, supplemented, modified or replaced from time to time, so long as and
to the extent that such amendment, novation, supplement, modification or
replacement is not prohibited by the terms of this Agreement or is consented,
if such consent is required, in accordance with the applicable provisions of
this Agreement.

         (g)      Except where specifically restricted in a Loan Document,
references to any Person include its successors and substitutes and assigns
permitted or not prohibited under such Loan Document.

         (h)      References to the time of day are to the time of day in the
city in which the Agent's Office is located.

                                      36
<PAGE>

         (i)      The terms "payment", "prepayment", "distribution" and similar
terms used in the definitions "Restricted Distribution" and "Restricted
Payment" and in SECTION 12.6, shall include payment by means of the transfer of
funds or of property and, in the event of a transfer of property, the payment
shall be deemed to be in an amount equal to the greater of the fair market
value and the book value of the property at the time of the transfer.

         (j)      Titles of Articles and Sections in this Agreement are for
convenience only, do not constitute part of this Agreement and neither limit
nor amplify the provisions of this Agreement, and all references in this
Agreement to Articles, Sections, subsections, paragraphs, clauses, subclauses,
Schedules, Annexes or Exhibits shall refer to the corresponding Article,
Section, subsection, paragraph, clause or subclause of, or Schedule, Annex or
Exhibit attached to, this Agreement, unless specific reference is made to the
articles, sections or other subdivisions or divisions of, or to schedules or
exhibits to, another document or instrument.

         (k)      Whenever from the context it appears appropriate, the term
"Loan", including such term as used as part of a defined term including the
term "Loan", shall mean and include a Loan made by all Lenders to the Borrowers
as well as a Lender's Ratable Share of any Loan.

         (l)      Whenever the phrase "to the knowledge of the Borrower(s)" or
words of similar import relating to the knowledge of a Borrower are used
herein, such phrase shall mean and refer to the actual knowledge of the
President, Chief Executive Officer or Financial Officer of Russell.

         (m)      Unless otherwise specified herein, any Lien created or
purported to be created hereby or by or pursuant to any Loan Documents in favor
of the Administrative Agent and each payment made to the Administrative Agent,
is and shall be deemed to have been created in favor of the Administrative
Agent, for its benefit as the Administrative Agent and for the Ratable benefit
of the Lenders, or made to and received by the Administrative Agent for the
Ratable benefit of the Lenders, as the case may be.

         Section 1.3       Exhibits, Annexes and Schedules. All Exhibits,
Annexes and Schedules attached hereto are by this reference made a part hereof.

                                      37
<PAGE>
                                   ARTICLE 2

                           REVOLVING CREDIT FACILITY

         Section 2.1       Revolving Credit Loans. Upon the terms and subject to
the conditions of, and in reliance upon the representations and warranties made
under, this Agreement, each Revolving Credit Lender agrees, severally, but not
jointly, to make Revolving Credit Loans under the Revolving Credit Facility to
the Borrowers from time to time from the Effective Date to but not including
the Termination Date, as requested or deemed requested by the Borrowers'
Representative in accordance with the terms of SECTION 2.2, in amounts equal to
such Lender's Ratable Share of each Revolving Credit Loan requested or deemed
requested hereunder up to an aggregate amount at any one time outstanding equal
to such Lender's Ratable Share of the Borrowing Base; PROVIDED, HOWEVER, that
the aggregate principal amount of all outstanding Revolving Credit Loans (after
giving effect to the Loans requested) shall not exceed the Revolving Credit
Facility minus the Letter of Credit Reserve minus the aggregate outstanding
principal amount of any Swingline Loans. It is expressly understood and agreed
that the Lenders may and at present intend to use the Borrowing Base as a
maximum ceiling on Loans made to the Borrowers under the Revolving Credit
Facility; PROVIDED, HOWEVER, that it is agreed that should the aggregate
outstanding amount of such Loans exceed the ceiling so determined or any other
limitation set forth in this Agreement, such Loans shall nevertheless
constitute Secured Obligations and, as such, shall be entitled to all benefits
thereof and security therefor. The principal amount of any Loans made under the
Revolving Credit Facility which is repaid may be reborrowed by the Borrowers,
subject to the terms and conditions of this Agreement, in accordance with the
terms of this SECTION 2.1. The Administrative Agent's and each Revolving Credit
Lender's books and records reflecting the date and the amount of each Loan made
under the Revolving Credit Facility and each repayment of principal thereof
shall constitute prima facie evidence of the accuracy of the information
contained therein, subject to the provisions of SECTION 5.7.

         Section 2.2       Manner of Borrowing. Borrowings shall be made as
follows:

         (a)      Requests for Borrowing.

                  (i)      Base Rate Revolving Credit Loans. A request for the
         Borrowing of Base Rate Revolving Credit Loans shall be made, or shall
         be deemed to be made, in the following manner:

                           (A)      with respect to any Loans to be made on the
                  Effective Date, which shall be Base Rate Loans, the
                  Borrowers' Representative shall give the Administrative Agent
                  the Initial Notice of Borrowing at least two Business Days
                  prior to the proposed date of the Borrowing, and, with
                  respect to each subsequent Borrowing, the Borrowers may
                  request a Base Rate Revolving Credit Loan by giving the
                  Administrative Agent a Notice of Borrowing, before 12:00 noon
                  on the proposed date of the Borrowing, PROVIDED that if such
                  notice is received after 12:00 noon on the proposed date of
                  Borrowing, the proposed Borrowing may be postponed by the
                  Administrative Agent to the next Business Day;

                                      38
<PAGE>

                           (B)      whenever a check or other item is presented
                  to a Disbursing Bank for payment against a Disbursement
                  Account in an amount greater than the then available balance
                  in such account, such Disbursing Bank shall, and is hereby
                  irrevocably authorized by the Borrowers to, give the
                  Administrative Agent notice thereof, which notice shall be
                  deemed to be a request for a Base Rate Revolving Credit Loan
                  on the date of such notice in an amount equal to the excess
                  of such check or other item over such available balance, and
                  such request shall be irrevocable;

                           (C)      unless payment is otherwise made by the
                  Borrowers, the becoming due of any amount required to be paid
                  under this Agreement or any of the Notes as interest shall be
                  deemed to be a request for a Base Rate Revolving Credit Loan
                  on the due date in the amount required to pay such interest,
                  and such request shall be irrevocable;

                           (D)      unless payment is otherwise made by the
                  Borrowers, the becoming due of any other Secured Obligation
                  shall be deemed to be a request for a Base Rate Revolving
                  Credit Loan on the due date in the amount then so due, and
                  such request shall be irrevocable; and

                           (E)      the receipt by the Administrative Agent of
                  notification from FCC to the effect that a payment has been
                  made under a Letter of Credit Guarantee and that the
                  Borrowers have failed to reimburse FCC therefor in accordance
                  with the terms of ARTICLE 3, shall be deemed to be a request
                  for a Base Rate Revolving Credit Loan on the date such
                  notification is received in the amount of such payment which
                  is so unreimbursed.

                  (ii)     LIBOR Loans. At any time after the Effective Date,
         and so long as no Default or Event of Default has occurred and is
         continuing, the Borrowers may request a LIBOR Loan by giving the
         Administrative Agent a Notice of Borrowing (which notice shall be
         irrevocable) not later than 12:00 noon on the date three Business Days
         before the day on which the requested LIBOR Loan is to be made. The
         Borrowers may direct the Administrative Agent to apply the proceeds of
         a LIBOR Loan to Secured Obligations as described in SECTIONS
         2.2(a)(i)(B), (C), (D) and (E) and the Administrative Agent shall
         comply with such direction to the extent that proceeds of a Borrowing
         of LIBOR Loans are available to be so applied and in such case, no
         duplicative Borrowing of Base Rate Revolving Credit Loans will be
         deemed to have been requested.

                  (iii)    Notification of Lenders. In the case of each LIBOR
         Loan and, unless the Administrative Agent and FCC have elected to make
         a Swingline Loan to the Borrowers pursuant to SECTION 2A.2, in the
         case of each Base Rate Loan, the Administrative Agent shall promptly
         notify the Lenders of any Notice of Borrowing given or deemed given
         pursuant to this SECTION 2.2(a) by 12:00 noon on the proposed
         Borrowing date (in the case of Base Rate Loans) or by 3:00 p.m. three
         Business Days before the proposed Borrowing date (in the case of LIBOR
         Loans). If the Administrative Agent does so notify the Lenders, then
         not later than 1:30 p.m. on the proposed Borrowing date, each Lender
         will make available to the Administrative Agent, for the account of
         the

                                      39
<PAGE>

         Borrowers, at the Agent's Office in funds immediately available to the
         Administrative Agent, such Lender's Ratable Share of the Base Rate
         Loan or LIBOR Loan, as the case may be.

         (b)      Disbursement of Loans. The Borrowers hereby irrevocably
authorize the Administrative Agent to disburse the proceeds of each Borrowing
requested, or deemed to be requested, pursuant to SECTION 2.2(a) as follows:

                  (i)      the proceeds of each Borrowing requested under
         SECTIONS 2.2(a)(i)(A) (other than the Borrowing of any Loans made on
         the Effective Date) or (B) or 2.2(a)(ii) shall be disbursed by the
         Administrative Agent in Dollars in immediately available funds by wire
         transfer to a Disbursement Account or, in the absence of a
         Disbursement Account, by wire transfer to such other deposit account
         of a Borrower as may be agreed upon by the Borrowers and the
         Administrative Agent from time to time, and the proceeds of the Loans
         to be made on the Effective Date under SECTION 2.2(a)(i)(A) shall be
         disbursed in accordance with the Initial Notice of Borrowing,

                  (ii)     the proceeds of each Borrowing deemed requested
         under SECTION 2.2(a)(i)(C) or (D) shall be disbursed by the
         Administrative Agent by way of direct payment of the relevant Secured
         Obligation, and

                  (iii)    the proceeds of each Borrowing deemed requested
         under SECTION 2.2(a)(i)(E) shall be disbursed by the Administrative
         Agent directly to FCC on behalf of the Borrowers for application to
         the Reimbursement Obligations.

         Section 2.3       Repayment; Prepayment. The Revolving Credit Loans
will be repaid as follows:

         (a)      The outstanding principal amount of all Revolving Credit
Loans is due and payable, and shall be repaid by the Borrowers, as their joint
and several obligation, in full, not later than the Termination Date and the
outstanding principal amount of any Revolving Credit Loan may be repaid by the
Borrowers at any time and from time to time prior to the Termination Date;

         (b)      If at any time the aggregate outstanding unpaid principal
amount of the Revolving Credit Loans and Swingline Loans exceeds the Borrowing
Base in effect at such time, but subject to the provisions of SECTION 5.9(e),
the Borrowers shall repay the Revolving Credit Loans in an amount sufficient to
reduce the aggregate unpaid principal amount of the Revolving Credit Loans by
an amount equal to such excess, together with accrued and unpaid interest on
the amount so repaid to the date of repayment; and

         (c)      The Revolving Credit Loans may be prepaid in whole or in
part, at any time and from time to time, on one Business Day's notice, without
premium or penalty. The Borrowers hereby instruct the Administrative Agent to
repay the Revolving Credit Loans outstanding on any day in an amount equal to
the amount received by the Administrative Agent on such day pursuant to SECTION
9.1(c); PROVIDED that payments received in excess of outstanding Revolving
Credit Loans or payments received (when no Default or Event of Default exists)
on account of LIBOR Loans which would otherwise result in prepayment of such
LIBOR Loans prior to the

                                      40
<PAGE>

end of the Interest Period applicable thereto may, upon the instruction of the
Borrowers to the Administrative Agent not later than 2:00 p.m. on any Business
Day, be applied to the Cash Collateral Account or any Investment Account.

Repayments pursuant to SECTION 2.3(b) or (c) shall be applied first to the Base
Rate Revolving Credit Loans and then to LIBOR Revolving Credit Loans.

         Section 2.4       Revolving Credit Note. Subject to the provisions of
SECTION 5.13(f), each Revolving Credit Lender's Revolving Credit Loans and the
joint and several obligation of the Borrowers to repay such Revolving Credit
Loans shall also be evidenced by a Revolving Credit Note payable to the order
of such Lender. Each Revolving Credit Note shall be dated the Effective Date
(or later "effective date" under any Assignment and Acceptance) and be duly and
validly executed and delivered by the Borrowers.

                                      41
<PAGE>

                                  ARTICLE 2A

                               SWINGLINE FACILITY

         Section 2A.1      Swingline Loans. Upon the terms and subject to the
conditions of, and in reliance upon the representations and warranties made
under, this Agreement, the Swingline Lender shall make Swingline Loans to the
Borrowers from time to time, from and after the Effective Date until the
Termination Date, as requested by the Borrowers in accordance with the terms of
SECTION 2A.2, up to an aggregate principal amount of Swingline Loans at any
time outstanding not to exceed the lesser of (i) the Swingline Facility and
(ii) the Borrowing Base MINUS the aggregate principal amount of outstanding
Revolving Credit Loans. The Swingline Loans will be deemed to be usage of the
Revolving Credit Facility for the purpose of calculating availability pursuant
to SECTION 2.1, but will not reduce the Swingline Lender's obligation to lend
its Ratable Share of the remaining unused Revolving Credit Facility.

         Section 2A.2      Making Swingline Loans. Requests for Swingline Loans
(which shall be Base Rate Loans and shall not be entitled to be converted to
LIBOR Loans) shall be made not later than 12:00 noon on the Business Day of the
proposed Swingline Loan by delivery by telex, telegraph, telecopy or telephone
of a request therefor by Borrowers' Representative to the Administrative Agent
and the Swingline Lender. Each such notice (a "Swingline Loan Request") shall
specify (i) the proposed borrowing date and (ii) the amount of Swingline Loan
requested (which, in the case of deemed Settlement Date requests shall be,
respectively, the Settlement Date and the excess, if any, of the principal
amount of Swingline Loans available to be borrowed on the Settlement Date over
the outstanding principal amount of Swingline Loans on the Settlement Date).
Not later than 3:00 p.m. on the date specified for any Swingline Loan, the
Swingline Lender shall make available such Swingline Loan in immediately
available funds to the Administrative Agent at the Agent's Office. After the
Administrative Agent's receipt of such funds and upon fulfillment of the
applicable conditions set forth in ARTICLE 6, the Administrative Agent will,
and the Borrowers hereby irrevocably authorize the Administrative Agent to,
disburse the proceeds of each Swingline Loan by making such funds available to
the Borrowers by wire transfer to such deposit account of a Borrower as the
Borrowers and the Administrative Agent may agree from time to time.

         Section 2A.3      Repayment of Swingline Loans. The principal amount of
each Swingline Loan is due and payable, and shall be repaid by the Borrowers as
their joint and several obligation, in full on the Termination Date, together
with accrued and unpaid interest thereto such date.

         Section 2A.4      Prepayment. If at any time the aggregate unpaid
principal amount of Swingline Loans outstanding to the Borrowers from the
Swingline Lender exceeds the amount set forth in SECTION 2A.1, the Borrowers
shall pay to the Administrative Agent for the account of the Swingline Lender
on demand by the Administrative Agent, an amount equal to such excess, together
with accrued and unpaid interest on the principal amount prepaid to the date of
prepayment. Notwithstanding the foregoing, no such prepayment shall be required
if the Borrowers shall have made an appropriate prepayment in accordance with
the provisions of SECTION 2.3(b).

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<PAGE>

         Section 2A.5      Swingline Note. The Swingline Loans made by the
Swingline Lender and the obligation of the Borrowers to repay such Loans shall
be evidenced by, and be repayable in accordance with the terms of, a single
Swingline Note, made by the Borrowers payable to the order of the Swingline
Lender. The Swingline Note shall be dated the Effective Date and be duly and
validly executed and delivered by the Borrowers.

         Section 2A.6      Settlement with Other Lenders. All payments of
principal, interest and any other amount with respect to each Swingline Loan
shall be payable to and received by the Administrative Agent for the account of
the Swingline Lender. Upon demand by the Swingline Lender, with notice thereof
to the Administrative Agent, and notwithstanding the occurrence and
continuation at the time of such demand of any Default or Event of Default, but
in any event not less frequently than every ten days, each Revolving Credit
Lender shall make a Base Rate Revolving Credit Loan in the amount of its
Ratable Share of the outstanding Swingline Loans for the account of the
Borrowers or purchase a participation in such amount in each outstanding
Swingline Loan, the proceeds of which shall be paid over to the Swingline
Lender and applied to the repayment of such Swingline Loans. Any payments
received by the Administrative Agent prior to such repayment by the Revolving
Credit Lenders which in accordance with the terms of this Agreement are to be
applied to the reduction of the outstanding principal balance of Swingline
Loans shall be paid over to the Swingline Lender and so applied.

                                      43
<PAGE>

                                   ARTICLE 3

                          LETTER OF CREDIT GUARANTEES

         Section 3.1       Agreement to Issue. Upon the terms and subject to the
conditions of, and in reliance upon the representations and warranties made
under, this Agreement, FCC will issue or cause the issuance of, including by
issuance of Letter of Credit Guarantees, for the account of any Borrower or
Subsidiary one or more Letters of Credit in accordance with this ARTICLE 3,
from time to time during the period commencing on the Effective Date and ending
on the Termination Date.

         Section 3.2       Amounts.  FCC  shall not have any  obligation  to
issue or cause the issuance of any Letter of Credit at any time:

         (a)      if, after giving effect to the issuance of the requested
Letter of Credit, (i) the aggregate Letter of Credit Obligations of the
Borrowers would exceed the Letter of Credit Guarantee Facility then in effect
or (ii) the aggregate principal amount of Loans outstanding would exceed the
Borrowing Base (after reduction for the Letter of Credit Reserve in respect of
such Letter of Credit) or (iii) if no Loans are outstanding, the aggregate
Letter of Credit Obligations would exceed the Borrowing Base; or

         (b)      which has an expiration date after the last Business Day that
is later than five days prior to the Termination Date.

         Section 3.3       Conditions. The obligation of FCC to issue any Letter
of Credit Guarantee is subject to the satisfaction of (a) the applicable
conditions precedent contained in ARTICLE 6 and (b) the following additional
conditions precedent in a manner satisfactory to the Administrative Agent and
FCC:

                  (i)      the Borrowers shall have delivered to FCC and the
         Administrative Agent at such times and in such manner as FCC or the
         Administrative Agent may prescribe, a Reimbursement Agreement and such
         other documents as may be required pursuant to the terms thereof, and
         the form of the proposed Letter of Credit, all of which shall be
         satisfactory in form and substance, as completed, to the Issuing Bank,
         FCC and the Administrative Agent; and

                  (ii)     as of the date of issuance, no law, rule or
         regulation, or order of any court, arbitrator or governmental
         authority having jurisdiction or authority over FCC shall purport by
         its terms to enjoin or restrain FCC or commercial financing entities,
         generally, from issuing guarantees, including guarantees of letter of
         credit obligations, of the type and in the amount of the proposed
         Letter of Credit Guarantee or the proposed Letter of Credit Guarantee
         specifically.

         Section 3.4       Issuance of Letter of Credit Guarantees.

         (a)      Request for Issuance. A Borrower shall give the Issuing Bank,
FCC and the Administrative Agent written notice of such Borrower's request for
the issuance of a Letter of Credit no later than three Business Days prior to
the proposed date of issuance. Such notice shall

                                      44
<PAGE>

be irrevocable and shall be accompanied by a completed form of letter of credit
application in a form acceptable to the Issuing Bank specifying at least the
name of the Subsidiary (if other than such Borrower) which will appear as the
account party on the face of such Letter of Credit, the original face amount of
the Letter of Credit requested, the effective date (which date shall be a
Business Day) of issuance of such requested Letter of Credit, whether the
Letter of Credit may be drawn in a single or in multiple draws, the date on
which such requested Letter of Credit is to expire (which date shall be a
Business Day earlier than the fifth day prior to the Termination Date), the
purpose for which the Letter of Credit is to be issued and the beneficiary of
the Letter of Credit. The Borrower shall attach to such notice the form of the
Letter of Credit that the Borrower requests be issued.

         (b)      Responsibilities of the Administrative Agent; Issuance. The
Administrative Agent shall determine, as of the Business Day immediately
preceding the requested effective date of issuance of a Letter of Credit set
forth in the notice from the Borrowers pursuant to SECTION 3.4(a), the amount
of Letter of Credit Availability. If (i) the form of requested Letter of Credit
delivered by the Borrowers to the Administrative Agent is acceptable to FCC and
the Administrative Agent in their sole, reasonable discretion, (ii) the amount
of the Letter of Credit Guarantee necessary to procure the issuance by the
Issuing Bank of such Letter of Credit is less than or equal to the Letter of
Credit Availability and (iii) the Administrative Agent has received a
certificate from the Borrowers stating that the applicable conditions set forth
in ARTICLE 6 have been satisfied, then FCC will join in the application for
such Letter of Credit or otherwise cause the Issuing Bank to issue the
requested Letter of Credit.

         (c)      Notice of Issuance. Promptly after the issuance of any Letter
of Credit supported by a Letter of Credit Guarantee, FCC or the Issuing Bank
shall give the Administrative Agent written or facsimile notice, or telephonic
notice confirmed promptly thereafter in writing, of the issuance of such Letter
of Credit, and the Administrative Agent shall give each Lender a periodic
written report, not less frequently than monthly, of each such Letter of Credit
outstanding as of the date thereof, the amount available to be drawn thereunder
and the expiration date thereof.

         (d)      No Extension or Amendment. FCC shall not cause any Letter of
Credit to be extended or amended unless the requirements of this SECTION 3.4
are met as though a new Letter of Credit were being requested and issued.

         Section 3.5       Duties of FCC. The rights and obligations of the
Issuing Bank in connection with any Letter of Credit shall be governed by the
Reimbursement Agreement for such Letter of Credit and in no event shall the
Administrative Agent or any Lender have any liability or obligation to any Loan
Party or its Subsidiaries for any failure or refusal or delay by the Issuing
Bank to issue, or error in issuing, any Letter of Credit. Any action taken or
omitted to be taken by FCC under or in connection with any Letter of Credit
Guarantee, if taken or omitted in the absence of gross negligence or willful
misconduct, shall not result in any liability of FCC to any Lender or relieve
any Lender of its obligations hereunder to FCC. In determining whether to pay
under any Letter of Credit Guarantee, FCC shall have no obligation to confirm
that the Issuing Bank acted properly in honoring any drawing under the related
Letter of Credit and shall be entitled to rely on the Issuing Bank's demand for
payment as sufficient evidence of the Issuing Bank's entitlement thereto.

                                      45
<PAGE>

         Section 3.6       Payment of Reimbursement Obligations.

         (a)      Payment to Issuing Bank, FCC. Notwithstanding any provisions
to the contrary in any Reimbursement Agreement, the Borrowers agree, jointly
and severally, for the benefit of FCC and the other Lenders, to reimburse the
Issuing Bank for any drawings (whether partial or full) under each Letter of
Credit on demand and agree to pay to the Issuing Bank the amount of all other
Reimbursement Obligations and other amounts payable to the Issuing Bank under
or in connection with such Letter of Credit in accordance with the
Reimbursement Agreement. If FCC shall pay any amount under any Letter of Credit
Guarantee, the Borrowers shall, jointly and severally, unless the Borrowers
shall have already paid the amount in respect of which payment was made under
such Letter of Credit Guarantee to the Issuing Bank in accordance with a
Reimbursement Agreement, pay to FCC on the first Business Day following such
payment, an amount equal to the amount of the payment made by FCC under such
Letter of Credit Guarantee, together with interest on such amount for the
period from FCC's payment under the applicable Letter of Credit Guarantee,
until repayment in full of such amount, at the interest rate then applicable to
Base Rate Revolving Credit Loans. So long as FCC remains unpaid, it shall be
subrogated to all rights and remedies of (i) the Issuing Bank under the related
Reimbursement Agreement and (ii) any beneficiary of such Letter of Credit whose
claims against the account party on such Letter of Credit have been satisfied
with proceeds of a drawing under such Letter of Credit.

         (b)      Recovery or Avoidance of Payments. In the event any payment
by or on behalf of the Borrowers with respect to any Letter of Credit (or any
Reimbursement Obligation relating thereto) or any Letter of Credit Guarantee
received by FCC, the Issuing Bank or by the Administrative Agent and
distributed by the Administrative Agent to the Lenders on account of their
respective participations therein, is thereafter set aside, avoided or
recovered from FCC, the Issuing Bank or the Administrative Agent in connection
with any receivership, liquidation or bankruptcy proceeding, the Lenders shall,
upon demand by the Administrative Agent, pay to the Administrative Agent, for
the account of the Administrative Agent, FCC or the Issuing Bank, as the case
may be, their respective Ratable Shares of such amount set aside, avoided or
recovered together with interest at the rate required to be paid by the
Administrative Agent, FCC or the Issuing Bank upon the amount required to be
repaid by it.

         Section 3.7       Participations.

         (a)      Purchase of Participations. Immediately upon the Effective
Date as to Letters of Credit outstanding on the Effective Date and immediately
upon issuance by the Issuing Bank of any other Letter of Credit, each Lender
shall be deemed to have irrevocably and unconditionally purchased and received
without recourse or warranty, an undivided interest and participation in the
Letter of Credit Obligations thereunder, equal to such Lender's Ratable Share
thereof (including, without limitation, all obligations of the Borrowers with
respect thereto, other than amounts owing to FCC or for the account of the
Issuing Bank under SECTION 5.2(c)), and any security therefor or guaranty or
other supporting obligation pertaining thereto.

         (b)      Sharing of Letter of Credit Payments. In the event that FCC
makes a payment under any Letter of Credit Guarantee and shall not have been
repaid such amount pursuant to SECTION 3.6, then the Borrowers shall be deemed
to have requested a Base Rate Revolving Credit

                                      46
<PAGE>

Loan in the amount of such payment and, notwithstanding the occurrence or
continuance of a Default or Event of Default at the time of such payment, each
Lender shall be absolutely obligated to make its Ratable Share of such Loan
available to the Administrative Agent for disbursement as provided by SECTION
2.2(b) or to purchase a participation in the payment made by FCC under any such
Letter of Credit Guarantee.

         (c)      Sharing of Reimbursement Obligation Payments. Whenever FCC
receives a payment from or on behalf of the Borrowers or the Issuing Bank on
account of a Reimbursement Obligation as to which the Administrative Agent has
previously received for the account of FCC payment from a Lender pursuant to
this SECTION 3.7, FCC shall promptly pay to the Administrative Agent, for the
benefit of such Lender, such Lender's Ratable Share of the amount of such
payment from the Borrowers or the Issuing Bank in Dollars. Each such payment
shall be made by FCC on the Business Day on which FCC receives immediately
available funds from the Borrowers or the Issuing Bank pursuant to the
immediately preceding sentence, if received prior to 11:00 a.m. on such
Business Day, and otherwise on the next succeeding Business Day.

         (d)      Documentation. Upon the request of any Lender, the
Administrative Agent shall furnish to such Lender copies of any Letter of
Credit, Reimbursement Agreement, Letter of Credit Guarantee or application for
any Letter of Credit and such other documentation as to Letters of Credit as
may reasonably be requested by such Lender.

         (e)      Obligations Irrevocable. The obligations of each Lender to
make payments to the Administrative Agent with respect to any Letter of Credit
or Letter of Credit Guarantee in respect thereof and its participation therein
pursuant to the provisions of this SECTION 3.7 or otherwise and the obligations
of the Borrowers to make payments to FCC, the Issuing Bank or to the
Administrative Agent, for the account of Lenders, shall be irrevocable, shall
not be subject to any qualification or exception whatsoever and shall be made
in accordance with the terms and conditions of this Agreement (assuming, in the
case of the obligations of the Lenders to make such payments, that the Letter
of Credit has been issued in accordance with SECTION 3.4), including, without
limitation, any of the following circumstances:

                  (i)      Any lack of validity or enforceability of this
         Agreement or any of the other Loan Documents;

                  (ii)     The existence of any claim, set-off, defense or
         other right which the Borrowers (or any of them) may have at any time
         against a beneficiary named in a Letter of Credit or any transferee of
         any Letter of Credit (or any Person for whom any such transferee may
         be acting), any Lender, FCC, the Issuing Bank or any other Person,
         whether in connection with this Agreement, any Letter of Credit, the
         transactions contemplated herein or any unrelated transactions
         (including any underlying transactions between the Borrowers or any
         other Person and the beneficiary named in any Letter of Credit);

                  (iii)    Any draft, certificate or any other document
         presented under the Letter of Credit upon which payment has been made
         in good faith and according to its terms proving to be forged,
         fraudulent, invalid or insufficient in any respect or any statement
         therein being untrue or inaccurate in any respect;

                                      47
<PAGE>

                  (iv)     The surrender or impairment of any Collateral or any
         other security for the Secured Obligations or the performance or
         observance of any of the terms of any of the Loan Documents;

                  (v)      The occurrence of any Default or Event of Default;
                           or

                  (vi)     FCC's, the Issuing Bank's or the Administrative
         Agent's failure to deliver the notice provided for in SECTION 3.4(c).

         Section 3.8       Indemnification; Exoneration.

         (a)      Indemnification. In addition to amounts payable as elsewhere
provided in this ARTICLE 3, the Borrowers, jointly and severally, agree to
protect, indemnify, pay and save harmless the Lenders, FCC, the Issuing Bank
and the Administrative Agent from and against any and all claims, demands,
liabilities, damages, losses, costs, charges and expenses (including reasonable
attorneys' fees) which any Lender, FCC, the Issuing Bank or the Administrative
Agent may incur or be subject to as a consequence, directly or indirectly, of

                  (i)      the issuance of any Letter of Credit, other than as
         a result of its gross negligence or willful misconduct, as determined
         by a court of competent jurisdiction, or

                  (ii)     the failure of the Issuing Bank to honor a drawing
         under any Letter of Credit as a result of any act or omission, whether
         rightful or wrongful, of any present or future de jure or de facto
         governmental authority (all such acts or omissions being hereinafter
         referred to collectively as "Government Acts").

         (b)      Assumption of Risk by the Borrowers. As among the Borrowers,
the Lenders, FCC, the Issuing Bank and the Administrative Agent, the Borrowers
assume all risks of the acts and omissions of, or misuse of any of the Letters
of Credit by, the respective beneficiaries of such Letters of Credit. In
furtherance and not in limitation of the foregoing, subject to the provisions
of the applications for the issuance of Letters of Credit, the Lenders, FCC,
the Issuing Bank and the Administrative Agent shall not be responsible for:

                  (i)      the form, validity, sufficiency, accuracy,
         genuineness or legal effect of any document submitted by any Person in
         connection with the application for and issuance of and presentation
         of drafts with respect to any of the Letters of Credit, even if it
         should prove to be in any or all respects invalid, insufficient,
         inaccurate, fraudulent or forged;

                  (ii)     the validity or sufficiency of any instrument
         transferring or assigning or purporting to transfer or assign any
         Letter of Credit or the rights or benefits thereunder or proceeds
         thereof, in whole or in part, which may prove to be invalid or
         ineffective for any reason;

                  (iii)    the failure of the beneficiary of any Letter of
         Credit to comply duly with conditions required in order to draw upon
         such Letter of Credit;

                                      48
<PAGE>

                  (iv)     errors, omissions, interruptions or delays in
         transmission or delivery of any messages, by mail, cable, telegraph,
         telex or otherwise, whether or not they be in cipher;

                  (v)      errors in interpretation of technical terms;

                  (vi)     any loss or delay in the transmission or otherwise
         of any document required in order to make a drawing under any Letter
         of Credit or of the proceeds thereof;

                  (vii)    the misapplication by the beneficiary of any Letter
         of Credit of the proceeds of any drawing under such Letter of Credit;
         or

                  (viii)   any consequences arising from causes beyond the
         control of the Lenders, FCC, the Issuing Bank or the Administrative
         Agent, including, without limitation, any Government Acts.

None of the foregoing shall affect, impair or prevent the vesting of any of the
Administrative Agent's rights or powers under this SECTION 3.8.

         (c)      Exoneration. In furtherance and extension, and not in
limitation, of the specific provisions set forth above, any action taken or
omitted by the Administrative Agent, FCC, the Issuing Bank or any Lender under
or in connection with any of the Letters of Credit or any related certificates,
if taken or omitted in good faith, shall not result in any liability of any
Lender, FCC, the Issuing Bank or the Administrative Agent to the Borrowers or
relieve any Borrower of any of its obligations hereunder to any such Person.

         Section 3.9       Supporting Letter of Credit; Cash Collateral Account.
Upon the occurrence of an Event of Default or if, notwithstanding the
provisions of SECTION 3.2(b), any Letter of Credit is outstanding on the
Termination Date, then on or prior to the Termination Date, the Borrowers
shall, as their joint and several obligation, promptly on demand by the
Administrative Agent, deposit with the Administrative Agent, for the Ratable
benefit of the Lenders, with respect to each Letter of Credit then outstanding,
as the Administrative Agent shall specify, either (a) a standby letter of
credit (a "Supporting Letter of Credit") in form and substance satisfactory to
the Administrative Agent, issued by an issuer satisfactory to the
Administrative Agent in its sole and absolute judgment in an amount equal to
105% of the greatest amount for which such Letter of Credit may be drawn, under
which Supporting Letter of Credit the Administrative Agent shall be entitled to
draw amounts necessary to reimburse the Administrative Agent, FCC and the
Lenders for payments made by the Administrative Agent, FCC or the Lenders under
the related Letter of Credit Guarantee or under any reimbursement or guaranty
agreement with respect thereto, or (b) Cash Collateral in an amount necessary
to reimburse the Administrative Agent, FCC and the Lenders for payments made by
the Administrative Agent, FCC and the Lenders under the related Letter of
Credit Guarantee or under any reimbursement or guaranty agreement with respect
thereto. Such Supporting Letter of Credit or Cash Collateral shall be held by
the Administrative Agent for the benefit of FCC and the Lenders, as security
for, and to provide for the payment of, the Reimbursement Obligations. In
addition, the Administrative Agent may at any time after such Event of Default
or the Termination Date apply any or all of such Cash Collateral to the payment
of any or all of the

                                      49
<PAGE>

Secured Obligations then due and payable. The Cash Collateral shall be
deposited in the Cash Collateral Account or an Investment Account and shall be
administered in accordance with the provisions of SECTION 5.16.

                                      50
<PAGE>

                                   ARTICLE 4

                               TERM LOAN FACILITY

         Section 4.1       Term Loans. Upon the terms and subject to the
conditions of, and in reliance upon the representations and warranties made
under, this Agreement, each Term Loan Lender agrees severally, but not jointly,
to make a Base Rate Loan to the Borrowers on the Effective Date, in a principal
amount equal to such Lender's Ratable Share of the Term Loan Facility (subject
to conversion thereafter in accordance with the provisions of SECTION 5.4).

         Section 4.2       Manner of Borrowing Term Loan. The Borrowers, through
the Borrowers' Representative, shall give the Administrative Agent an Initial
Notice of Borrowing at least two Business Days' prior to the occurrence of the
Effective Date. Upon receipt of such notice from the Borrowers' Representative,
the Administrative Agent shall promptly notify each Term Loan Lender thereof.
Each Term Loan Lender will make a Base Rate Loan in an amount equal to its
Ratable Share of the aggregate principal amount of the Term Loans properly
requested in the Initial Notice of Borrowing available to the Administrative
Agent, for the account of the Borrowers, at the Agent's Office, prior to 12:00
noon on the Effective Date (assuming satisfaction of the applicable conditions
set forth in ARTICLE 6) in funds immediately available to the Administrative
Agent. On the Effective Date, upon satisfaction of the applicable conditions
set forth in ARTICLE 6, the Administrative Agent will disburse the Term Loan on
the Effective Date, in same day funds in accordance with the terms of the
Initial Notice of Borrowing.

         Section 4.3       Repayment of Term Loan. The principal amount of the
Term Loan is due and payable, and shall be repaid in full by the Borrowers, as
their joint and several obligation, (a) in 10 consecutive equal installments of
$2,500,000 each on successive Installment Payment Dates, beginning September
30, 2002, PROVIDED that the payment due on December 31, 2006 shall be in the
full amount of the then outstanding and unpaid principal balance of the Term
Loan or (b) if sooner, on the date of termination of the Revolving Credit
Facility. The Borrower may prepay the Term Loan in accordance with the
provisions of SECTION 5.10(g).

         Section 4.4       Term Notes. Subject to the provisions of SECTION 5.13
(f), the Loans made by each Term Loan Lender as part of the Term Loan and the
joint and several obligation of the Borrowers to repay such Loans shall also be
evidenced by a Term Note payable to the order of such Lender. Each Term Note
shall be dated the Effective Date (or the later "effective date" under any
Assignment and Acceptance) and be duly and validly executed and delivered by
the Borrowers.

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                                   ARTICLE 5

                            GENERAL LOAN PROVISIONS

         Section 5.1       Interest.

         (a)      (i) Base Rate Loans. Subject to the provisions of SECTION
5.1(d), the Borrowers will pay interest on the unpaid principal amount of each
Base Rate Loan, for each day from the day such Loan is made until such Loan is
paid (whether at maturity, by reason of acceleration, or otherwise) or is
converted to a Loan of a different Type, at a rate per annum equal to the sum
of (i) the Applicable Margin and (ii) the Base Rate, payable monthly in arrears
as it accrues on the first day of each month, and upon any prepayment thereof
on the amount prepaid.

                  (ii)     LIBOR Loans. Subject to the provisions of SECTION
         5.1(d), the Borrowers will pay interest on the unpaid principal amount
         of each LIBOR Loan for the applicable Interest Period at a rate per
         annum equal to the sum of (i) the Applicable Margin and (ii) LIBOR
         payable monthly in arrears as it accrues on the first day of each
         month, on the last day of any Interest Period, and upon any prepayment
         thereof on the amount prepaid.

         (b)      Swingline Loans. Subject to the provisions of SECTION 5.1(d),
the Borrowers will pay interest on the unpaid principal amount of each
Swingline Loan for each day from the day such Loan is made, until such Loan is
paid (whether at maturity, by reason of acceleration, or otherwise), at a rate
per annum equal to the sum of (i) the Applicable Margin and (ii) the Base Rate,
payable monthly in arrears as it accrues on the first day of each month.

         (c)      Other Secured Obligations. The Borrowers will, to the extent
permitted by Applicable Law, pay interest on the unpaid principal amount of any
Secured Obligation that is due and payable (other than the Loans in accordance
with SECTION 5.1(a) or (b), as applicable), on demand, as if such Secured
Obligation were a Base Rate Revolving Credit Loan; PROVIDED that interest shall
not accrue on any Secured Obligation arising under SECTION 16.2 or 16.3 until
the fifth day after the Administrative Agent's demand on the Borrowers for
payment or reimbursement thereof. Interest that is due and payable shall be
deemed to be a liquidated amount and obligation of the Borrowers and shall, to
the extent permitted by Applicable Law, bear interest in accordance with this
SECTION 5.1(c).

         (d)      Default Rate. If an Event of Default shall occur and be
continuing, the unpaid principal amount of the Loans and other Secured
Obligations shall, at the election of the Administrative Agent or the Required
Lenders, no longer bear interest in accordance with the terms of SECTION
5.1(a), (b) or (c), but shall bear interest for each day from the date of such
Event of Default until such Event of Default shall have been cured or waived at
a rate per annum equal to the sum of (i) the Default Margin and (ii) the rate
otherwise applicable to such Loan or other Secured Obligation, payable on
demand. The interest rate provided for in the preceding sentence shall, to the
extent permitted by Applicable Law, apply to and accrue on the amount of any
judgment entered with respect to any Secured Obligation and shall continue to
accrue at such rate during any proceeding described in SECTION 13.1(g) or (h).

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<PAGE>

         (e)      Calculation of Interest. The interest rates provided for in
SECTIONS 5.1(a), (b), (c) and (d) shall be computed on the basis of a year of
360 days and the actual number of days elapsed. Each interest rate determined
with reference to the Base Rate shall be adjusted automatically as of the
opening of business on the effective date of each change in the Base Rate.

         (f)      Maximum Rate. It is not intended by the Lenders, and nothing
contained in this Agreement or the Notes shall be deemed, to establish or
require the payment of a rate of interest in excess of the maximum rate
permitted by Applicable Law (the "Maximum Rate"). If, in any month, the
Effective Interest Rate, absent such limitation, would have exceeded the
Maximum Rate, then the Effective Interest Rate for that month shall be the
Maximum Rate, and, if in future months, the Effective Interest Rate would
otherwise be less than the Maximum Rate, then the Effective Interest Rate shall
remain at the Maximum Rate until such time as the amount of interest paid
hereunder equals the amount of interest which would have been paid if the same
had not been limited by the Maximum Rate. In the event that, upon payment in
full of the Secured Obligations, the total amount of interest paid or accrued
under the terms of this Agreement is less than the total amount of interest
which would have been paid or accrued if the Effective Interest Rate had at all
times been in effect, then the Borrowers shall, to the extent permitted by
Applicable Law, pay to the Lenders an amount equal to the excess, if any, of
(i) the lesser of (A) the amount of interest which would have been charged if
the Maximum Rate had, at all times, been in effect and (B) the amount of
interest which would have accrued had the Effective Interest Rate, at all
times, been in effect and (ii) the amount of interest actually paid or accrued
under this Agreement. In the event the Lenders receive, collect or apply as
interest any sum in excess of the Maximum Rate, such excess amount shall be
applied to the reduction of the principal balance of the Secured Obligations,
and if no such principal is then outstanding, such excess or part thereof
remaining, shall be paid to the Borrowers. For the purposes of computing the
Maximum Rate, to the extent permitted by Applicable Law, all interest and
charges, discounts, amounts, premiums or fees deemed to constitute interest
under Applicable Law, shall be amortized, prorated, allocated and spread in
substantially equal parts throughout the full term of this Agreement. The
provisions of this SECTION 5.1(f) shall be deemed to be incorporated into every
Loan Document (whether or not any provision of this SECTION 5.1(f) is
specifically referred to therein).

         Section 5.2       Certain Fees; Agent Fee.

         (a)      Other Fees. (i) On the Effective Date, Russell shall pay to
FCC, for its account and for the account of FSI, certain fees and (ii) on the
Effective Date and each Anniversary, Russell shall pay to the Administrative
Agent, agent's fees, in each case in accordance with the provisions of the
separate letter agreement between Russell, FCC and FSI.

         (b)      Unused Fee. In connection with and as consideration for the
holding available for the use of the Borrowers hereunder the full amount of the
Revolving Credit Facility, the Borrowers, jointly and severally, will pay to
the Administrative Agent, for the Ratable benefit of the Revolving Credit
Lenders, for each day from the Effective Date until the Termination Date, a fee
at a rate equal to 1/2 of 1% per annum of the Unused Commitments, SUBJECT,
HOWEVER, to quarterly adjustment on each Margin Adjustment Date in accordance
with the pricing matrix attached hereto as ANNEX B. "Unused Commitments" means
an amount equal to the Revolving Credit Facility, less the principal amount of
outstanding Revolving Credit Loans, less the total

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<PAGE>

amount of Letter of Credit Obligations, in each case on the date of
determination. Such fees shall be payable quarterly in arrears the first day of
each January, April, July and October, beginning July 1, 2002, and on the date
of any permanent reduction in the Revolving Credit Facility.

         (c)      Letter of Credit and Letter of Credit Guarantee Fees. The
Borrowers, jointly and severally, agree to pay to the Administrative Agent
through its Treasury and International Services Group:

                  (i)      for the Ratable benefit of the Lenders, fees on each
         Letter of Credit or Letter of Credit Guarantee, at a rate per annum
         equal to the Applicable Margin for LIBOR Revolving Credit Loans from
         time to time, payable as to each Letter of Credit (or amendment
         increasing the Letter of Credit Amount of an outstanding Letter of
         Credit) or Letter of Credit Guarantee on the date of issuance for the
         period from such date to the first day of the succeeding calendar
         month, and thereafter monthly in advance on the first day of each
         month, based on the Letter of Credit Amount of such Letters of Credit
         and Letter of Credit Guarantees outstanding on each such date;

                  (ii)     for the account of the Issuing Bank, the standard
         fees and charges of the Issuing Bank of issuing, administering,
         amending, renewing, paying, canceling, transferring, and otherwise
         administering letters of credit, as and when assessed as to any
         Letters of Credit; and

                  (iii)    for the account of the Issuing Bank (or FCC, if the
         Bank is the Issuing Bank), an additional fronting fee at a rate of
         0.125% per annum of the Letter of Credit Amount of each standby Letter
         of Credit, payable in advance on the date of issuance of each Letter
         of Credit.

         (d)      General. All fees provided for in this SECTION 5.2 or
elsewhere in the Loan Documents shall be computed on the basis of a year of 360
days and the actual number of days elapsed, and shall be fully earned by the
Administrative Agent, FCC, FSI, the Issuing Bank or the Lenders, as applicable,
when due and payable and, except as otherwise set forth herein or required by
Applicable Law, shall not be subject to refund or rebate. All such fees are
compensation for services and are not, and shall not be deemed to be, interest
or a charge for the use of money.

         Section 5.3       Conversion or Continuation of Loans.

         Whenever the Borrowers desire, subject to the provisions of SECTION
5.4, to convert an outstanding Loan into a Loan of a different Type provided
for in this Agreement or to continue an outstanding Loan for a subsequent
Interest Period, the Borrowers' Representative shall notify the Administrative
Agent (which notice shall be irrevocable) by telex, telegraph, telecopy or
telephone not later than 12:00 noon on the date one Business Day before the day
on which a proposed conversion of a Loan into, or a continuation of a Loan as a
Base Rate Loan, and three Business Days before the day on which a proposed
conversion of a Loan into, or continuation of a Loan as a LIBOR Loan is to be
effective (and if the Loan to be converted or continued is a LIBOR Loan such
effective date shall be the last day of the Interest Period therefor). Each
such

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<PAGE>

notice (a "Notice of Conversion or Continuation") shall (i) identify the Loan
to be converted or continued, including the Type of such Loan, the aggregate
outstanding principal balance thereof and, in the case of a LIBOR Loan, the
last day of the Interest Period therefor, (ii) specify the effective date of
such conversion or continuation, (iii) specify the principal amount of such
Loan to be converted or continued and, if converted, the Type or Types of Loan
into which conversion of such principal amount is to be made, and (iv) in the
case of any conversion into or continuation as a LIBOR Loan, the Interest
Period to be applicable to such converted or continued Loan, and shall be
immediately followed by a written confirmation thereof by the Borrowers'
Representative in substantially the from of Exhibit F hereto, PROVIDED that if
such written confirmation differs in any material respect from the action taken
by the Administrative Agent, the record of the Administrative Agent shall
control absent manifest error.

         Section 5.4       Conversion or Continuation. Provided that no Default
or Event of Default shall have occurred and be continuing (but subject to the
provisions of SECTIONS 5.3 and 5.15), the Borrowers may request that all or any
part of any outstanding Loan be converted into a Loan or Loans of a different
Type or be continued as a Loan or Loans of the same Type, in the same aggregate
principal amount, on any Business Day (which, in the case of continuation of a
LIBOR Loan, shall be the last day of the Interest Period applicable to such
Loan), upon notice (which notice shall be irrevocable) given in accordance with
SECTION 5.3, PROVIDED that nothing in this ARTICLE 5 shall be construed to
permit the conversion of a Loan under one Facility into a Loan outstanding
under another Facility.

         Section 5.5       Manner of Payment.

         (a)      Except as otherwise expressly provided in SECTION 9.1(c),
each payment (including prepayments) by the Borrowers on account of the
principal of or interest on the Loans or of any other amounts payable to the
Lenders under this Agreement or any Note shall be made not later than 1:00 p.m.
on the date specified for payment under this Agreement to the Administrative
Agent, for the account of the Lenders, at the Agent's Office, in Dollars, in
immediately available funds and shall be made without any setoff, counterclaim
or deduction whatsoever.

         (b)      The Borrowers hereby irrevocably authorize each Lender and
each Affiliate of such Lender and each participant herein to charge any account
of the Borrowers maintained with such Lender or such Affiliate or participant
with such amounts as may be necessary from time to time to pay any Secured
Obligations (whether or not owed to such Lender, Affiliate or participant)
which are not paid when due.

         Section 5.6       General. If any payment under this Agreement or any
Note shall be specified to be made on a day which is not a Business Day, it
shall be made on the next succeeding day which is a Business Day and such
extension of time shall in such case be included in computing interest, if any,
in connection with such payment.

         Section 5.7       Loan Accounts; Statements of Account.

         (a)      Each Lender shall open and maintain on its books a loan
account in Russell's name (each, a "Loan Account" and collectively, the "Loan
Accounts"). Each such Loan

                                      55
<PAGE>

Account shall show as debits thereto each Loan made under this Agreement by
such Lender to the Borrowers and as credits thereto all payments received by
such Lender and applied to principal of such Loans, so that the balance of the
Loan Account at all times reflects the principal amount due such Lender from
the Borrowers.

         (b)      The Administrative Agent shall maintain on its books a
control account for the Borrowers in which shall be recorded (i) the amount of
each disbursement made hereunder, (ii) the amount of any principal or interest
due or to become due from the Borrowers hereunder, and (iii) the amount of any
sum received by the Administrative Agent hereunder from the Borrowers and each
Lender's share therein.

         (c)      The entries made in the accounts pursuant to SUBSECTIONS (a)
and (b) shall be prima facie evidence, in the absence of manifest error, of the
existence and amounts of the obligations of the Borrowers therein recorded and
in case of discrepancy between such accounts, in the absence of manifest error,
the accounts maintained pursuant to SUBSECTION (b) shall be controlling.

         (d)      The Administrative Agent will account separately to the
Borrowers monthly with a statement of Loans, charges and payments made to and
by the Borrowers pursuant to this Agreement, and such accounts rendered by the
Administrative Agent shall be deemed final, binding and conclusive, save for
manifest error, unless the Administrative Agent is notified by the Borrowers in
writing to the contrary within 30 days after the date the account to the
Borrowers was so rendered. Such notice by the Borrowers shall be deemed an
objection to only those items specifically objected to therein. Failure of the
Administrative Agent to render such account shall in no way affect the rights
of the Administrative Agent or of the Lenders hereunder.

         Section 5.8       Reduction of Revolving Credit Facility; Termination
of Agreement.

         (a)      Reduction of Revolving Credit Facility.

                  (i)      The Borrowers shall have the right, at any time and
         from time to time, upon at least five Business Days' prior
         irrevocable, written notice to the Administrative Agent, to terminate
         or reduce permanently all or a portion of the Revolving Credit
         Facility, without premium or penalty; PROVIDED, HOWEVER, that any such
         partial reduction of such facility shall be not less than $1,000,000
         or a larger integral multiple thereof and shall not reduce the
         Revolving Credit Facility below the amount of the aggregate Letter of
         Credit Obligations. As of the date of termination or reduction set
         forth in such notice, the Revolving Credit Facility shall be
         permanently reduced to the amount stated in the Borrowers' notice for
         all purposes herein, and the Borrowers shall pay the amount necessary
         to reduce the amount of the aggregate outstanding Revolving Credit
         Loans, Swingline Loans and Letter of Credit Obligations to an amount
         not greater than the Revolving Credit Facility as so reduced, together
         with accrued interest on the amounts so prepaid and any amount payable
         pursuant to SECTION 5.11.

                  (ii)     The amount of the Revolving Credit Facility shall be
         automatically reduced to zero on the Termination Date.

                                      56
<PAGE>

                  (iii)    The Revolving Credit Facility or any portion thereof
         terminated or reduced pursuant to this SECTION 5.8 may not be
         reinstated.

         (b)      Termination of Agreement. The Borrowers shall have the right,
at any time, to terminate this Agreement upon not less than 15 Business Days'
prior written notice, which notice shall specify the effective date of such
termination. Upon receipt of such notice, the Administrative Agent shall
promptly notify each Lender thereof. On the date specified in such notice, such
termination shall be effected, PROVIDED, that the Borrowers shall, on or prior
to such date, pay to the Administrative Agent, for its account and the Ratable
account of the Lenders, in same day funds, an amount equal to all Secured
Obligations (other than with respect to Letter of Credit Obligations)
outstanding on such date, including, without limitation, all (i) accrued
interest thereon, (ii) all accrued fees provided for hereunder, (iii) any
amounts payable to the Lenders pursuant to SECTIONS 5.12, 5.15, 16.2, 16.3,
16.14 and 16.23, and (iv) if such termination occurs prior to the first
Anniversary a termination fee equal to 1% of the sum of the Revolving Credit
Facility plus the outstanding principal amount of the Term Loan on the
Termination Date, and, in addition thereto, shall deliver to the Administrative
Agent, in respect of each outstanding Letter of Credit, either a Supporting
Letter of Credit or Cash Collateral as provided in SECTION 3.9. Additionally,
the Borrowers shall provide the Administrative Agent and the Lenders with
indemnification in form and substance satisfactory to the Administrative Agent
with respect to such customary matters as the Administrative Agent and the
Lenders shall require. Following a notice of termination as provided for in
this SECTION 5.8(b) and upon payment in full of the amounts specified in this
SECTION 5.8(b), provision for each Letter of Credit, and execution and delivery
of any required indemnification, this Agreement shall be terminated and the
Administrative Agent, the Lenders and the Borrowers shall have no further
obligations to any other party hereto, except for the obligations to the
Administrative Agent and the Lenders pursuant to SECTION 16.14 hereof, which
shall survive any termination of this Agreement, and all rights to the
Collateral shall revert to the applicable Loan Party. At the request and sole
expense of the Borrowers following any such termination, the Administrative
Agent shall deliver to the applicable Loan Party any Collateral held by the
Administrative Agent hereunder, and execute and deliver to such Loan Party, and
authorize the Loan Parties to file, such documents as they may reasonably
request to evidence such termination.

         Section 5.9       Making of Loans.

         (a)      Nature of Obligations of Lenders to Make Loans. The
obligations of the Lenders under this Agreement to make the Loans are several
and are not joint or joint and several.

         (b)      Assumption by Administrative Agent. Notwithstanding the
occurrence or continuance of a Default or Event of Default or other failure of
any condition to the making of Loans under the Revolving Credit Facility
hereunder after the Effective Date, unless the Administrative Agent shall have
received notice from a Lender prior to a proposed Borrowing date that such
Lender will not make available to the Administrative Agent such Lender's
Ratable Share of the Loan to be borrowed on such date, the Administrative Agent
may assume that such Lender will make such Ratable Share available to the
Administrative Agent in accordance with SECTION 2.2(a), and the Administrative
Agent may, in reliance upon such assumption, make available to the Borrowers on
such date a corresponding amount. If and to the extent such Lender shall not
make such Ratable Share available to the Administrative Agent, such Lender

                                      57
<PAGE>

and the Borrowers severally agree to repay to the Administrative Agent
forthwith on demand such corresponding amount, together with interest thereon
for each day from the date such amount is made available to the Borrowers until
the date such amount is repaid to the Administrative Agent at the Effective
Interest Rate or, if lower, subject to SECTION 5.1(f), the Maximum Rate (or as
to the Lenders, at the Federal Funds Rate for the first three days after the
date such amount is made available to the Borrowers and thereafter at the
Effective Interest Rate or, if lower, subject to SECTION 5.1(f), the Maximum
Rate). If such Lender shall repay to the Administrative Agent such
corresponding amount, the amount so repaid shall constitute such Lender's
Ratable Share of the Loan made on such Borrowing date for purposes of this
Agreement. The Administrative Agent shall not be required to make any Loan as
to which it shall have received notice from a Lender of such Lender's intention
not to make its Ratable Share of such Loan available to the Administrative
Agent. The failure of any Lender to make its Ratable Share of any Loan
available shall not (without regard to whether a Borrower shall have returned
the amount thereof to the Administrative Agent in accordance with this SECTION
5.9) relieve it or any other Lender of its obligation, if any, hereunder to
make its Ratable Share of the Loan available on such Borrowing date, but no
Lender shall be responsible for the failure of any other Lender to make its
Ratable Share of a Loan available on the Borrowing date.

         (c)      Delegation of Authority to Administrative Agent. Without
limiting the generality of SECTION 15.1, each Lender expressly authorizes the
Administrative Agent to determine on behalf of such Lender (i) any reduction or
increase of advance rates applicable to the Borrowing Base, so long as such
advance rates do not at any time exceed the rates set forth in the Borrowing
Base definition as in effect on the Agreement Date, (ii) any adjustment of the
Dilution Reserve or the Royalty Reserve desirable in the Administrative Agent's
reasonable credit judgment, (iii) the creation or elimination of any other
reserves (other than the Letter of Credit Reserve) against the Revolving Credit
Facility and the Borrowing Base and (iv) whether or not Inventory or Accounts
shall be deemed to constitute Eligible Inventory or Eligible Accounts. The
Administrative Agent is further authorized subject to the applicable provisions
of SECTION 16.11 to subordinate the Security Interest in specific items of
Equipment to the interest of the owner/lessor thereof or to the Lien of the
holder of a Permitted Purchase Money Lien with respect thereto. Any withdrawal
of authorization under this SECTION 5.9(c) shall not affect the validity of any
Loans made prior to the effectiveness thereof.

         (d)      Replacement of Certain Lenders. If a Lender (i) shall have
failed to fund its Ratable Share of any Loan requested by the Borrowers which
such Lender is obligated to fund under the terms of this Agreement and which
failure has not been cured or (ii) shall have failed or refused to approve any
action described in SECTION 16.11(b)(1) which has been approved by Lenders
whose Facility Percentages equal at least 75%, then, in any such case and in
addition to any other rights and remedies that the Administrative Agent, any
other Lender or the Borrowers may have against such Affected Lender, the
Borrowers or the Administrative Agent may make written demand on such Affected
Lender (with a copy to the Administrative Agent in the case of a demand by the
Borrowers and a copy to the Borrowers in the case of a demand by the
Administrative Agent) for the Affected Lender to assign, and such Affected
Lender shall assign pursuant to one or more duly executed Assignments and
Acceptances within five Business Days after the date of such demand, to one or
more Lenders willing to accept such assignment or assignments, or to one or
more Eligible Assignees designated by the Administrative Agent, and reasonably
acceptable to the Borrowers, all of such Affected Lender's rights and
obligations

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<PAGE>

under this Agreement (including its Commitments and all Loans owing to it) in
accordance with the provisions of SECTION 5.15(c) (other than clauses (i), (vi)
and (vii) thereof and any other provisions relating solely to increased costs)
and ARTICLE 14, PROVIDED that all Lenders that have withheld approval (as
described in CLAUSE (II) above) have such demand made upon them. The
Administrative Agent is hereby irrevocably authorized to execute one or more
Assignments and Acceptances as attorney-in-fact for any Affected Lender which
fails or refuses to execute and deliver the same within five Business Days
after the date of such demand. The Affected Lender shall be entitled to
receive, in cash and concurrently with execution and delivery of each such
Assignment and Acceptance, all amounts owed to the Affected Lender hereunder or
under any other Loan Document that are the subject of such Assignment and
Acceptance, including the aggregate outstanding principal amount of the Loans
owed to such Lender, together with accrued interest thereon through the date of
such assignment. Upon the replacement of any Affected Lender pursuant to this
SECTION 5.9(d), such Affected Lender shall cease to have any participation in,
entitlement to, or other right to share in the Security Interest or any other
Lien of the Administrative Agent in any Collateral or Real Estate and such
Affected Lender shall have no further liability to the Administrative Agent,
any Lender or any other Person under any of the Loan Documents (except as
provided in SECTION 15.7 and elsewhere in this Agreement as to events or
transactions which occur prior to the replacement of such Affected Lender).

         (e)      Overadvances. Notwithstanding anything to the contrary
contained elsewhere in this SECTION 5.9 or this Agreement or the other Loan
Documents and whether or not a Default or Event of Default exists at the time,
the Administrative Agent may in its discretion require all Lenders to honor
requests or deemed requests by the Borrowers for Revolving Credit Loans at a
time that an Overadvance Condition exists or which would result in an
Overadvance Condition and each Lender shall be obligated to continue to make
its Ratable Share of Revolving Credit Loans up to a maximum amount outstanding
equal to (but not exceeding) its Commitment, so long as the total amount of
such Overadvance is not known by the Administrative Agent to exceed $10,000,000
and an Overadvance Condition has not existed for more than 10 consecutive days
or more than 30 Business Days in any Fiscal Year.

         Section 5.10      Settlement Among Lenders.

         (a)      Term Loans. The Administrative Agent shall pay to each Lender
on each date on which a payment of interest on or principal of the Term Loans
is received by the Administrative Agent, such Lender's Ratable Share (or, if
different, a proportionate amount based on the principal amount of the Term
Loans owing to such Lender), of all payments received by the Administrative
Agent hereunder in funds of the same type received, net of any amounts payable
by such Lender to the Administrative Agent, by wire transfer.

         (b)      Revolving Credit Loans. The Administrative Agent shall pay to
each Lender on each date on which a payment of interest on or principal of the
Revolving Credit Loans is received by the Administrative Agent, such Lender's
Ratable Share (or, if different, a proportionate amount based on the principal
amount of Revolving Credit Loans owing to such Lender), of all payments
received by the Administrative Agent hereunder in funds of the same type
received, net of any amounts payable by such Lender to the Administrative
Agent, by wire transfer.

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<PAGE>

         (c)      Return of Payments. If any amounts received by FCC in respect
of the Secured Obligations are later required to be returned or repaid by FCC
to the Borrowers or any other obligor or their respective representatives or
successors in interest, whether by court order, settlement or otherwise, in
excess of the FCC's Ratable Share of all such amounts required to be returned
by all Lenders, each other Lender shall, upon demand by FCC with notice to the
Administrative Agent, pay to the Administrative Agent for the account of FCC,
an amount equal to the excess of such Lender's Ratable Share of all such
amounts required to be returned by all Lenders over the amount, if any,
returned directly by such Lender.

         (d)      Payments to Administrative Agent, Lenders.

                  (i)      Payment by any Lender to the Administrative Agent
         shall be made not later than 12:00 noon on the Business Day such
         payment is due, PROVIDED that if such payment is due on demand by the
         Swingline Lender, such demand is made on the paying Lender not later
         than 10:30 a.m. on such Business Day. Payment by the Administrative
         Agent to any Lender shall be made by wire transfer, promptly following
         the Administrative Agent's receipt of funds for the account of such
         Lender and in the type of funds received by the Administrative Agent,
         PROVIDED that if the Administrative Agent receives such funds (A) at
         or prior to 12:00 noon, the Administrative Agent shall pay such funds
         to such Lender by 2:00 p.m. on such Business Day or (B) after 12:00
         noon, the Administrative Agent shall pay such funds to such Lender
         prior to 2:00 p.m. on the following Business Day. If a demand for
         payment is made after the applicable time set forth above, the payment
         due may be made by 2:00 p.m. on the first Business Day following the
         date of such demand.

                  (ii)     If a Lender shall at any time fail to make any
         payment to the Administrative Agent required hereunder, the
         Administrative Agent may, but shall not be required to, retain
         payments that would otherwise be made to such Lender hereunder and
         apply such payments to such Lender's defaulted obligations hereunder,
         at such time, and in such order, as the Administrative Agent may elect
         in its sole discretion.

                  (iii)    With respect to the payment of any funds under this
         SECTION 5.10(d), whether from the Administrative Agent to a Lender or
         from a Lender to the Administrative Agent, the party failing to make
         full payment when due pursuant to the terms hereof shall, upon demand
         by the other party, pay such amount together with interest on such
         amount at the Federal Funds Rate for the period of such default.

         (e)      Settlement of Other Secured Obligations. All other amounts
received by the Administrative Agent on account of, or applied by the
Administrative Agent to the payment of, any Secured Obligation owed to the
Lenders (including, without limitation, fees payable to the Lenders pursuant to
SECTIONS 5.2(b) and (c) and proceeds from the sale of, or other realization
upon, all or any part of the Collateral following an Event of Default) that are
received by the Administrative Agent on or prior to 12:00 noon on a Business
Day will be paid by the Administrative Agent to each Lender on the same
Business Day, and any such amounts that are received by the Administrative
Agent after 12:00 noon will be paid by the Administrative Agent to each Lender
on the following Business Day. Unless otherwise stated herein, the
Administrative Agent shall distribute to each Lender such Lender's Ratable
Share of fees

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payable to the Lenders pursuant to SECTIONS 5.2(B) and (C) and shall distribute
to each Lender such Lender's Ratable Share (or if different, such Lender's
proportionate share based upon the amount of the Secured Obligations then owing
to each Lender) of the proceeds from the sale of, or other realization upon,
all or any part of the Collateral following an Event of Default.

         (f)      Allocation of Payments from Borrowers. All monies to be
applied to the Secured Obligations, whether such monies represent voluntary
payments by the Borrowers or are received pursuant to demand for payment or
realized from any disposition of Collateral, shall be allocated among the
Administrative Agent and such of the Lenders and other holders of the Secured
Obligations as are entitled thereto (and, with respect to monies allocated to
the Lenders, on a Ratable basis unless otherwise provided in this SECTION
5.10(f)): (i) first, to the Administrative Agent to pay the amount of expenses
that have not been reimbursed to the Administrative Agent by the Borrowers or
the Lenders, together with interest accrued thereon; (ii) second, to the
Administrative Agent to pay any indemnified amount that has not been paid to
the Administrative Agent by the Borrowers or the Lenders, together with
interest accrued thereon; (iii) third, to the Administrative Agent to pay any
fees due and payable to the Administrative Agent under this Agreement; (iv)
fourth, to the Lenders for any indemnified amount that they have paid to the
Administrative Agent and for any expenses that they have reimbursed to the
Administrative Agent; (v) fifth, to the Swingline Lender to pay any outstanding
Swingline Loans together with accrued interest thereon; (vi) sixth, to the
Lenders to pay any fees due and payable to all Lenders under this Agreement;
(vii) seventh, to the Lenders in payment of (x) the Letter of Credit
Obligations, (including by depositing Cash Collateral with the Administrative
Agent pursuant to SECTION 3.9, and (y) the unpaid principal and accrued
interest in respect of the Loans to be shared among Lenders on the basis of
their respective Facility Percentages, (viii) eighth, to the Lenders and their
respective Affiliates in payment of any other Secured Obligations then
outstanding and held by any Lender or an Affiliate of any Lender to be shared
among the Lenders and their respective Affiliates on a pro rata basis according
to the outstanding Secured Obligations then owing to each Lender and each
Affiliate of a Lender expressed as a percentage of the outstanding Secured
Obligations then owing to all Lenders and their respective Affiliates, or on
such other basis as may be agreed upon in writing by all of the Lenders (which
agreement or agreements may be entered into without notice to or the consent or
approval of the Borrowers); and (ix) ninth, to the holders of the other Secured
Obligations who are not Lenders or Affiliates of Lenders on a pro rata basis.
The allocations set forth in this SECTION 5.10(f) are solely to determine the
rights and priorities of the Administrative Agent and the Lenders as among
themselves and may be changed by the Administrative Agent and the Lenders
without notice or the consent or approval of the Borrowers or any other Person.

         (g)      Voluntary Prepayment of Term Loan. The Borrowers shall have
the right at any time and from time to time, upon at least two Business Days'
prior written notice by the Borrowers to the Administrative Agent, to prepay,
without premium or penalty, the Term Loan in whole or in part on any Business
Day. Each partial prepayment shall be in a principal amount of not less than
$500,000 or in a integral multiple of $100,000 in excess thereof. On the
prepayment date, the Borrowers shall pay interest on the amount prepaid,
accrued to the prepayment date. Any notice of prepayment given by the
Borrowers' Representative hereunder shall be irrevocable, and the amount to be
prepaid (including accrued interest and any amount payable pursuant to SECTION
5.12) shall be due and payable on the date designated in the notice.

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Each prepayment of the Term Loan pursuant to this SECTION 5.10(G) shall be
applied to the outstanding principal amount of the Term Loan ratably as to the
remaining installments thereof.

         (h)      Mandatory Prepayments.

                  (i)      Disposition Proceeds; Debt Issues. The Borrowers
         shall prepay the Loans from time to time as follows:

                           (A)      Asset Dispositions. Upon receipt by the
                  Borrowers or any Subsidiary of the Net Proceeds of any Asset
                  Dispositions in excess of $500,000 in the aggregate in any
                  Fiscal Year the Borrowers shall apply such Net Proceeds to
                  prepay the Loans as provided in SECTION 5.10(i).

                           (B)      Debt Offerings. In the event that at any
                  time after the Effective Date, a Borrower or any U.S.
                  Subsidiary issues Debt securities (other than Senior Notes)
                  in a public offering or private placement pursuant to Rule
                  144A of the SEC or otherwise pursuant to a private placement
                  of notes (in each case other than Debt incurred pursuant to a
                  Qualifying Refinancing), then no later than the third
                  Business Day following the date of receipt of such proceeds,
                  100% of such proceeds, net of underwriting discounts and
                  commissions and other reasonable costs associated therewith
                  shall be applied to prepay the Loans as provided in SECTION
                  5.10(i).

                           (C)      Equity Interests. Except as provided in
                  SECTION 12.4, in the event that any time after the Effective
                  Date, a Loan Party issues Equity Interests or receives any
                  additional capital contribution (other than to or from
                  another Loan Party) in respect of existing Equity Interests,
                  then no later than the third Business Day following the date
                  of receipt of such proceeds, 100% of such proceeds, net of
                  underwriting discounts and commissions and other reasonable
                  costs associated therewith, shall be applied as provided in
                  SECTION 5.10(i).

                  (ii)     Other Prepayments. The Borrowers shall prepay the
         Loans (and permanently reduce the Facilities) as provided in SECTION
         5.10(i) in an amount equal to any amount (A) that would otherwise be
         required to be applied to the purchase, redemption, repayment or
         prepayment of any Debt other than the Loans, including, without being
         limited to, pursuant to Section 3.7(b) of the Senior Note Indenture or
         (B) as may be necessary after giving effect to any fixed assets
         dispositions, to maintain the outstanding Term Loan at an amount not
         greater than the formula set forth in the definition "Term Loan
         Facility" (after taking into account the value of any additional
         Equipment or Real Estate Collateral provided).

         (i)      Application of Prepayments.

                           (A)      Net Proceeds of Assets Held for Sale. Any
                  Net Proceeds of dispositions of Assets Held for Sale or any
                  sales or factoring of Accounts contemplated by SECTION
                  12.7(f) shall be applied to repay outstanding Swingline Loans
                  and then to outstanding Revolving Credit Loans, but without
                  any reduction in Commitments.

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<PAGE>

                           (B)      Net Proceeds of Assets other than Assets
                  Held For Sale. At least 50% of the Net Proceeds of Asset
                  Dispositions other than of Assets Held For Sale shall be
                  applied (1) first to the outstanding principal amount of the
                  Term Loans ratably as to the remaining installments thereof
                  to the extent of such Loans and (2) any balance of such Net
                  Proceeds shall be applied to repay outstanding Swingline
                  Loans and then Revolving Credit Loans, without any reduction
                  in Commitments.

                           (C)      Other Amounts. Any prepayment amounts
                  (other than those described in the foregoing SECTIONS
                  5.10(i)(a) and (b) shall be applied first to the outstanding
                  principal amount of the Term Loans ratably as to the
                  remaining installments thereof to the extent of such Loans.
                  After all Term Loans have been repaid, any such other
                  amounts, and any amounts under SECTION 5.10(h)(i)(c), shall
                  be applied to repay outstanding Swingline Loans and then to
                  outstanding Revolving Credit Loans, but without any reduction
                  in Commitments.

Any payments received which would otherwise result in prepayment of LIBOR Loans
prior to the end of the Interest Period applicable thereto may, upon the
request of the Borrowers, in the absence of an Event of Default, be deposited
to the Cash Collateral Account or any Investment Account, with any excess after
prepayment in full of the Loans to be deposited with the Administrative Agent
to be held as Cash Collateral for the Secured Obligations and after the
Termination Date, to be applied to any of the Secured Obligations in such
manner as the Administrative Agent shall determine in its sole discretion.
Notwithstanding any provision of this SECTION 5.10(i) to the contrary, any
prepayment pursuant to SECTION 5.10(h)(ii) shall result in a permanent
reduction in Loans (and Commitments therefor).

         (j)      Certificate. Together with each prepayment pursuant to
SECTION 5.10(h), the Borrowers shall deliver to the Administrative Agent a
certificate of a Financial Officer setting forth the amount of such prepayment
and certifying that such amount was computed in accordance with the provisions
of this Agreement, and having attached thereto the supporting calculations, in
reasonable detail.

         Section 5.11      Payments Not at End of Interest Period; Failure to
Borrow. If for any reason any payment of principal with respect to any LIBOR
Loan is made on any day prior to the last day of the Interest Period applicable
to such LIBOR Loan or, after having given a Notice of Borrowing with respect to
any LIBOR Revolving Credit Loan or a Notice of Conversion or Continuation with
respect to any Loan to be continued as or converted into a LIBOR Loan, such
Loan is not made or is not continued as or converted into a LIBOR Loan due to
the Borrowers' failure to borrow or to fulfill the applicable conditions set
forth in ARTICLE 6, the Borrowers shall pay to each Lender an amount equal to
such Lender's costs and expenses incurred as a result of such failure,
including in connection with obtaining deposits to fund its Ratable Share of
such new (or continued or converted) Loan and redeploying such deposits. The
Borrowers shall pay such amount upon presentation by the Administrative Agent
of a statement setting forth the amount and the applicable Lender's calculation
thereof in reasonable detail, which statement shall be deemed true and correct
absent manifest error.

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<PAGE>

         Section 5.12      Assumptions Concerning Funding of LIBOR Loans.
Calculation of all amounts payable to the Lenders under this ARTICLE 5 shall be
made as though each Lender had actually funded or committed to fund its LIBOR
Loans through the purchase of an underlying deposit in an amount equal to the
amount of such Ratable share and having a maturity comparable to the relevant
Interest Period for such LIBOR Loan; PROVIDED, HOWEVER, each Lender may fund
its LIBOR Loans in any manner it deems fit and the foregoing assumption shall
be utilized only for the calculation of amounts payable under this ARTICLE 5.

         Section 5.13      Duration of Interest Periods; Maximum Number of LIBOR
Loans; Minimum Increments; Option to Forgo Notes.

         (a)      Subject to the provisions of the definition "Interest
Period", the duration of each Interest Period applicable to a LIBOR Loan shall
be as specified in the applicable Notice of Borrowing or Notice of Conversion
or Continuation. The Borrowers may elect a subsequent Interest Period to be
applicable to any LIBOR Loan by giving a Notice of Conversion or Continuation
with respect to such Loan in accordance with SECTION 5.4.

         (b)      If the Administrative Agent does not receive a notice of
election in accordance with SECTION 5.4 with respect to the continuation of a
LIBOR Loan within the applicable time limits specified in said SECTION 5.4, or
if, when such notice must be given, an Event of Default exists or LIBOR Loans
are not available, the Borrowers shall be deemed to have elected to convert
such LIBOR Loan in whole into a Base Rate Loan on the last day of the Interest
Period therefor.

         (c)      Notwithstanding the foregoing, the Borrowers may not select
an Interest Period that would end, but for the provisions of the definition
"Interest Period," after the Termination Date.

         (d)      In no event shall there be more than seven LIBOR Loans
outstanding hereunder at any time. For the purpose of this SUBSECTION (d), each
LIBOR Loan having a distinct Interest Period shall be deemed to be a separate
Loan hereunder.

         (e)      Each LIBOR Loan shall be in an amount of $1,000,000 or an
integral multiple of $100,000 in excess thereof.

         (f)      Any Lender may elect, by notice to the Administrative Agent
prior to the Effective Date or as provided in any Assignment and Acceptance
Agreement, not to receive Notes evidencing its Loans and to rely exclusively on
the provisions of SECTION 5.7, PROVIDED that upon any such Lender's request,
and subject to such reasonable notice and other requirements as the
Administrative Agent may impose, the Borrowers shall execute and deliver Notes
in conformity with the provisions of SECTIONS 2.4 and 4.4.

         Section 5.14      Changed Circumstances.

         (a)      If the introduction of or any change in or in the
interpretation of (in each case, after the date hereof) any law or regulation
makes it unlawful, or any Governmental Authority asserts, after the date
hereof, that it is unlawful, for any Lender to perform its obligations
hereunder to make LIBOR Loans or to fund or maintain LIBOR Loans hereunder,
such Lender

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shall notify the Administrative Agent of such event and the Administrative
Agent shall notify the Borrowers of such event, and the right of the Borrowers
to select a LIBOR Loan for any subsequent Interest Period or in connection with
any subsequent conversion of any Loan shall be suspended until the
Administrative Agent shall notify the Borrowers that the circumstances causing
such suspension no longer exist, and the Borrowers shall forthwith prepay in
full all LIBOR Revolving Credit Loans and shall convert each LIBOR Term Loan
into a Base Rate Term Loan, and shall pay all interest accrued thereon through
the date of such prepayment or conversion, unless the Borrowers, within three
Business Days after such notice from the Administrative Agent, request the
conversion of all LIBOR Loans then outstanding into Base Rate Loans; PROVIDED,
that if the date of such repayment or proposed conversion is not the last day
of the Interest Period applicable to any such LIBOR Loan, the Borrowers shall
also pay any amount due pursuant to SECTION 5.11.

         (b)      If the Administrative Agent shall, at least one Business Day
before the date of any requested Loan or the effective date of any conversion
or continuation of an existing Loan to be made or continued as or converted
into a LIBOR Loan (each such requested Loan and Loan to be converted or
continued, a "Pending Loan"), notify the Borrowers that LIBOR will not
adequately reflect the cost to the Lenders of making or funding such Pending
Loan as a LIBOR Loan or that LIBOR is not determinable from any interest rate
reporting service of recognized standing, then the right of the Borrowers to
select a LIBOR Loan for such Pending Loan, any subsequent requested Loan or in
connection with any subsequent conversion or continuation of any Loan shall be
suspended until the Administrative Agent shall notify the Borrowers that the
circumstances causing such suspension no longer exist, and each Pending Loan
and each such subsequent Loan requested to be made, continued or converted
shall be made or continued as or converted into a Base Rate Loan.

         (c)      If, due to either (i) the introduction of or any change
(other than any change by way of imposition or increase of reserve requirements
included in the LIBOR Reserve Percentage) in or in the interpretation of, in
each case after the date hereof, any law or regulation (except to the extent
such introduction, change or interpretation affects taxes measured by net
income), or (ii) the compliance with any guideline or request (except to the
extent such guideline or request affects taxes measured by net income) from any
central bank or other governmental authority (whether or not having the force
of law) made after the date hereof, there shall be any increase in the cost to
any Lender of agreeing to make or making, funding or maintaining LIBOR Loans
(other than as separately provided for in SECTION 5.14(d)), then the Borrowers
shall from time to time, within 30 days after demand by such Lender (with a
copy of such demand to the Administrative Agent), pay to the Administrative
Agent for the account of such Lender additional amounts sufficient to
compensate such Lender for such increased cost or convert the Borrowing of
which such LIBOR Loan is a part to Base Rate Loans and pay to the
Administrative Agent, for the account of such Lender, the amount due pursuant
to SECTION 5.11.

         (d)      If (i) the adoption of or change in, after the date hereof,
any law, rule, regulation or guideline regarding capital requirements for banks
or bank holding companies, or any change, after the date hereof, in the
interpretation or application thereof by any governmental authority charged
with the interpretation or administration thereof, or (ii) compliance by such
Lender with any guideline, request or directive, made or promulgated after the
date hereof, of any such entity regarding capital adequacy (whether or not
having the force of law), has the effect of reducing

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the return on a Lender's capital as a consequence of its maintaining its Loans
or commitment to make Revolving Credit Loans hereunder to a level below that
which such Lender could have achieved but for such adoption, change or
compliance (taking into consideration such Lender's policies with respect to
capital adequacy immediately before such adoption, change or compliance and
assuming the full utilization of such Lender's capital immediately before such
adoption, change or compliance) or if any change in law, regulation, treaty or
official directive or the interpretation or application thereof by any court or
by any governmental authority charged with the administration thereof or the
compliance with any guideline or request of any central bank or other
governmental authority (whether or not having the force of law) subjects a
Lender to any tax with respect to payments of principal or interest or any
other amounts payable hereunder by the Borrowers or otherwise with respect to
the transactions contemplated hereby (except for taxes on the overall net
income of such Lender imposed by the United States of America or any political
subdivision thereof), in each case by any amount deemed by such Lender to be
material, then such Lender shall promptly after its determination of such
occurrence notify the Borrowers and the Administrative Agent thereof. The
Borrowers agree to pay to the Administrative Agent, for the account of such
Lender, as an additional fee from time to time, within 30 days after demand by
such Lender, such amount as such Lender certifies to be the amount that will
compensate it for such reduction.

         (e)      Before giving any notice pursuant to SECTION 5.14(a) or
making any demand pursuant to SECTION 5.14(c) or (d), each Lender agrees to use
its best efforts (consistent with its internal policy and legal and regulatory
restrictions) to designate a different lending office if the making of such a
designation would avoid the need for such notice or demand, or reduce the
amount of such increased cost or reduction in return and would not, in the
reasonable judgment of such Lender, be otherwise disadvantageous to such
Lender.

         (f)      A certificate of the Lender claiming compensation and
accompanying or constituting the "demand" contemplated by SECTION 5.14(c) or
(d) shall be conclusive in the absence of manifest error. Each such certificate
shall set forth the nature of the occurrence giving rise to such claim for
compensation, the additional amount or amounts to be paid to the Lender
hereunder and the method by which such amounts were determined. In determining
such amounts, a Lender may use any reasonable averaging and attribution
methods.

         (g)      In no event shall a Lender claim or the Borrowers be liable
to pay any amounts pursuant to SECTION 5.14(c) or (d) attributable to periods
more than 90 days prior to the date of the first demand for such amount,
delivered in accordance with the provisions hereof.

         Section 5.15      Net Payments.

         (a)      No Reduction for Taxes. All payments by the Borrowers
hereunder to or for the benefit of any Lender or the Administrative Agent shall
be made without setoff, counterclaim or other defense. Except as required by
law or as provided in SECTION 5.15(b), all such payments will be made free and
clear of, and without deduction or withholding for, any present or future
taxes, levies, imposts, duties, fees, assessments, or other charges of whatever
nature now or hereafter imposed by any jurisdiction or by any political
subdivision or taxing authority thereof or therein with respect to such
payments (excluding any tax imposed on or measured by the net income or profits
of such Lender or the Administrative Agent, as the case may be together with

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all interest, penalties or similar liabilities with respect thereto
(collectively, "Covered Taxes"). Except as provided in SECTION 5.15(b), if the
Borrowers shall be required by law to deduct or withhold any Covered Taxes from
any sum payable hereunder to any Lender or the Administrative Agent, (A) the
sum payable shall be increased as may be necessary so that after making all
required deductions or withholdings of Covered Taxes (including deductions or
withholdings of Covered Taxes applicable to additional sums payable under this
SECTION 5.15(a)) such Lender or the Administrative Agent, as the case may be,
receives an amount equal to the sum it would have received had such deductions
or withholdings not been made, (B) the Borrowers shall make such deductions or
withholdings, and (C) the Borrowers shall pay the full amount so deducted or
withheld to the relevant taxing authority or other authority in accordance with
Applicable Law. The Borrowers shall furnish to the Administrative Agent within
45 days after the date on which the payment of any Covered Taxes is due
certified copies of tax receipts evidencing such payment by the Borrowers.
Except as provided in SECTION 5.15(b), the Borrowers agree to indemnify and
hold harmless the Lenders and the Administrative Agent and reimburse each of
them, as the case may be, for the amount of any Covered Taxes that are levied
against or imposed on the Lenders or the Administrative Agent and that are paid
by the Lenders or the Administrative Agent, as the case may be.

         (b)      Foreign Lenders.

                  (i)      Each Foreign Lender shall deliver to the
         Administrative Agent and the Borrowers (A) two valid, duly completed
         copies of IRS Form W-8BEN or Form W-8ECI or applicable successor form,
         as the case may be, and any other required form, certifying in each
         case that such Foreign Lender is entitled to receive payments under
         this Agreement or the Note(s) payable to it without deduction or
         withholding of any United States federal income taxes or, in the case
         of a Foreign Lender claiming exemption from withholding under Section
         871(b) or 881(c) of the Code, a certificate to such effect and a
         valid, duly completed IRS Form W-8BEN or applicable successor form, to
         establish an exemption from United States backup withholding tax. Each
         such Foreign Lender shall also deliver to the Administrative Agent and
         the Borrowers such forms, or other manner of required certification,
         on or before the date that any such form expires or becomes obsolete
         or otherwise is required to be resubmitted as a condition to obtaining
         an exemption from a required withholding of United States federal
         income tax or after the occurrence of any event requiring a change in
         the most recent form previously delivered by it to the Borrowers and
         the Administrative Agent, and such extensions or renewals thereof as
         may reasonably be requested by the Borrowers and the Administrative
         Agent.

                  (ii)     If the forms provided by a Foreign Lender under
         SECTION 5.15(b)(i) at the time such Foreign Lender first becomes a
         party to this Agreement indicate that such Foreign Lender is subject
         to a rate of United States withholding tax in excess of zero, then
         withholding tax at such rate shall be considered excluded from Covered
         Taxes unless and until such Foreign Lender provides the appropriate
         forms certifying that a lesser rate of withholding applies, whereupon
         withholding tax at such lesser rate only shall be excluded from
         Covered Taxes for period governed by such forms.

                  (iii)    For any period with respect to which a Foreign
         Lender has failed to provide the Borrowers with the appropriate forms
         described in SECTION 5.15(b)(i), such

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         Foreign Lender shall not be entitled to indemnification under SECTION
         5.15(a) with respect to Covered Taxes imposed by the United States by
         reason of such failure.

         (c)      Affected Lenders. If the Borrowers are obligated to pay to
any Lender any amount under SECTION 5.14 or this SECTION 5.15, the Borrowers
may, if no Default or Event of Default then exists, replace such Lender with
another lender acceptable to the Administrative Agent, and such Lender hereby
agrees to be so replaced subject to the following:

                  (i)      The obligations of the Borrowers hereunder to the
         Lender to be replaced (including such increased or additional costs
         incurred from the date of notice to the Borrowers of such increase or
         additional costs through the date such Lender is replaced hereunder)
         shall be paid in full to such Lender concurrently with such
         replacement;

                  (ii)     The replacement Lender shall be a bank or other
         financial institution that is not subject to the increased costs which
         caused the Borrowers' election to replace any Lender hereunder, and
         each such replacement Lender shall execute and deliver to the
         Administrative Agent such documentation satisfactory to the
         Administrative Agent pursuant to which such replacement Lender is to
         become a party hereto, conforming to the provisions of SECTION 14.1
         hereof, with a Commitment equal to that of the Lender being replaced
         and shall make Revolving Credit Loans in the aggregate principal
         amount equal to the aggregate outstanding principal amount of the
         Revolving Credit Loans of the Lender being replaced;

                  (iii)    Upon such execution of such documents referred to in
         CLAUSE (ii) and repayment of the amounts referred to in CLAUSE (i),
         the replacement Lender shall be a "Lender" with a Commitment as
         specified hereinabove and the Lender being replaced shall cease to be
         a "Lender" hereunder, except with respect to indemnification
         provisions under this Agreement, which shall survive as to such
         replaced Lender;

                  (iv)     The Administrative Agent shall reasonably cooperate
         in effectuating the replacement of any Lender under this SECTION 5.15,
         but at no time shall the Administrative Agent be obligated to initiate
         any such replacement;

                  (v)      Any Lender replaced under this SECTION 5.15 shall be
         replaced at the Borrowers' sole cost and expense and at no cost or
         expense to the Administrative Agent or any of the Lenders; and

                  (vi)     If the Borrowers propose to replace any Lender
         pursuant to this SECTION 5.15 because the Lender seeks reimbursement
         hereunder, then the Borrowers must also replace any other Lender who
         seeks similar levels of reimbursement (as a percentage of such
         Lender's Commitment) under such Sections.

                  (vii)    Each Lender agrees that to the extent requested by
         Russell and not inconsistent with such Lender's internal policies,
         such Lender shall use reasonable efforts and take such actions as are
         reasonably appropriate if as a result thereof the additional fees or
         amounts which would otherwise be required to be paid to such Lender
         pursuant to SECTION 5.14 or 5.15 would be materially reduced, or the
         illegality or other adverse circumstances which would otherwise
         require a conversion of such Loans would cease to

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         exist, and in each case, if as determined by such Lender in its
         discretion, the taking of such actions would not adversely affect such
         Lender or the Loans or otherwise be disadvantageous to such Lender. To
         the extent practicable and applicable, each Lender shall allocate such
         cost increases among its customers in good faith and on an equitable
         basis.

         Section 5.16      Cash Collateral Account; Investment Accounts.

         (a)      Cash Collateral Account. The Borrowers shall establish a Cash
Collateral Account in which to deposit Collateral consisting of cash or Cash
Equivalents from time to time:

                  (i)      representing payments received pursuant to SECTION
         2.3(b), 5.11 or 9.1 in excess of then outstanding Revolving Credit
         Loans or on account of LIBOR Loans which would otherwise result in
         repayment of such Loans prior to the end of the Interest Period
         applicable thereto,

                  (ii)     with respect to Letter of Credit Obligations (x) at
         the request of the Administrative Agent upon the occurrence of an
         Event of Default, or (y) for the purposes set forth in SECTION 5.8 in
         the event of termination of this Agreement, or

                  (iii)    for any other purpose appropriate under this
         Agreement to provide security for the Secured Obligations.

On the last day of the applicable Interest Period as to any amounts deposited
to the Cash Collateral Account pursuant to CLAUSE (i) above or if a drawing
under a Letter of Credit occurs with respect to any amounts deposited to the
Cash Collateral Account pursuant to CLAUSE (ii) above, the Borrowers hereby
authorize the Administrative Agent to use the monies deposited in the Cash
Collateral Account to make payment to the payee(s) with respect to such Loan or
drawing. The Cash Collateral Account shall be in the name of the Administrative
Agent and the Administrative Agent shall have sole dominion and control over,
and sole access to, the Cash Collateral Account. Neither the Borrowers nor any
Person claiming on behalf of or through the Borrowers shall have any right to
withdraw any of the funds held in the Cash Collateral Account. The Borrowers
agree that they will not at any time (x) sell or otherwise dispose of any
interest in the Cash Collateral Account or any funds held therein or (y) create
or permit to exist any Lien upon or with respect to the Cash Collateral Account
or any funds held therein, except as provided in or contemplated by this
Agreement. The Administrative Agent shall exercise reasonable care in the
custody and preservation of any funds held in the Cash Collateral Account and
shall be deemed to have exercised such care if such funds are accorded
treatment substantially equivalent to that which the Administrative Agent
accords other funds deposited with the Administrative Agent, it being
understood that the Administrative Agent shall not have any responsibility for
taking any necessary steps to preserve rights against any parties with respect
to any funds held in the Cash Collateral Account. Subject to the right of the
Administrative Agent to withdraw funds from the Cash Collateral Account as
provided herein, the Administrative Agent will, so long as no Event of Default
shall have occurred and be continuing, from time to time invest funds on
deposit in the Cash Collateral Account, reinvest proceeds of any such
investments which may mature or be sold, and invest interest or other income
received from any such investments, in each case, in Cash Equivalents, as the
Borrowers

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may direct prior to the occurrence of an Event of Default and as the
Administrative Agent may select after the occurrence and during the continuance
of any Event of Default. Such proceeds, interest and income which are not so
invested or reinvested in Cash Equivalents shall be deposited and held by the
Administrative Agent in the Cash Collateral Account. The Administrative Agent
makes no representation or warranty as to, and shall not be responsible for,
the rate of return, if any, earned on any Cash Collateral. Any earnings on Cash
Collateral shall be held as additional Cash Collateral on the terms set forth
in this SECTION 5.16.

         (b)      Investment Accounts. The Borrowers may from time to time
establish one or more Investment Accounts with the Administrative Agent, any
Lender or any Affiliate of a Lender, for the purpose of investing solely in
cash or Cash Equivalents any Cash Collateral representing payments received
pursuant to SECTION 2.3(b), 5.11 or 9.1 in excess of then outstanding Revolving
Credit Loans or on account of LIBOR Loans which would otherwise result in
repayment of such Loans prior to the end of the Interest Period applicable
thereto. The Borrowers hereby acknowledge and agree that each such Investment
Account shall constitute Collateral hereunder and shall be maintained with the
Administrative Agent, a Lender or an Affiliate of a Lender as security for the
Secured Obligations. Notwithstanding the foregoing, until such time as the
Administrative Agent shall otherwise instruct the Lender or Affiliate of a
Lender maintaining such account, the Borrowers shall be entitled to direct the
investment of the funds deposited therein. The Borrowers shall be liable for
and shall pay any and all income taxes, transaction expenses, capital gains
taxes, and other amounts payable in respect of the maintenance of such accounts
or on investment returns therein. The Borrowers agree that they will not at any
time (x) sell or otherwise dispose of any interest in any Investment Account or
any funds held therein other than by application thereof to any Secured
Obligation, or (y) create or permit to exist any Lien upon or with respect to
any Investment Account or any funds held therein, except as provided in or
contemplated by this Agreement. The Borrowers agree that at any time, and from
time to time, at the expense of the Borrowers, the Borrowers will promptly
execute and deliver all further instruments and documents, and take all further
action, that may be necessary or desirable, or that the Administrative Agent or
any Lender may request, in order to perfect and protect any security interest
in any Investment Account granted or purported to be granted hereby or to
enable the Administrative Agent, for its benefit and the benefit of the
Lenders, to exercise and enforce its rights and remedies hereunder with respect
to such Investment Account.

         Section 5.17      Borrowers' Representative. Each other Borrower hereby
irrevocably appoints Russell as its representative, and Russell shall act under
this Agreement as the representative of each Borrower for all purposes,
including, without being limited to, requesting borrowings and receiving
account statements and other notices and communications to the Borrowers (or
any of them) from the Administrative Agent or any Lender. The Administrative
Agent and the Lenders may rely, and shall be fully protected in relying, on any
request for borrowing, disbursement instruction, report, information or any
other notice or communication made or given by Russell, whether in its own
name, on behalf of any other Borrower or on behalf of "the Borrowers," and
neither the Administrative Agent nor any Lender shall have any obligation to
make any inquiry or request any confirmation from or on behalf of any other
Borrower as to the binding effect on it of any such request, instruction,
report, information, notice or communication, nor shall the joint and several
character of the Borrowers' liability for the Secured Obligations be affected.
The Administrative Agent and each Lender intend to

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maintain a single Loan Account in the name of "Russell Corporation" hereunder
and each Borrower expressly agrees to such arrangement and confirms that such
arrangement shall have no effect on the joint and several character of its
liability for the Secured Obligations.

         Section 5.18      Joint and Several Liability; No Modification or
Release of Obligations.

         (a)      Joint and Several Liability. The Secured Obligations shall
constitute one joint and several direct and general obligation of all of the
Borrowers. Notwithstanding anything to the contrary contained herein, each of
the Borrowers shall be jointly and severally, with each other Borrower,
directly and unconditionally liable to the Administrative Agent and the Lenders
for all Secured Obligations and shall have the obligations of co-maker with
respect to the Revolving Credit Loans, the Revolving Credit Notes, the Term
Loans, the Term Notes, the Swingline Loans, the Swingline Note and all Secured
Obligations, it being agreed that the advances to each Borrower inure to the
benefit of all Borrowers, and that the Administrative Agent and the Lenders are
relying on the joint and several liability of the Borrowers as co-makers in
extending the Loans hereunder. Each Borrower hereby unconditionally and
irrevocably agrees that upon default in the payment when due (whether at stated
maturity, by acceleration or otherwise) of any principal of, or interest on,
any Revolving Credit Loan, Term Loan, Swingline Loan or other Secured
Obligation payable to the Administrative Agent or any Lender, it will forthwith
pay the same, without notice or demand.

         (b)      No Modification or Release of Obligations. No payment or
payments made by any of the Borrowers or any other Person or received or
collected by the Administrative Agent or any Lender from any of the Borrowers
or any other Person by virtue of any action or proceeding or any set-off or
appropriation or application at any time or from time to time in reduction of
or in payment of the Secured Obligations shall be deemed to modify, release or
otherwise affect the liability of each Borrower under this Agreement, which
shall remain liable for the Secured Obligations until the Secured Obligations
are paid in full and the Revolving Credit Facility is terminated.

         Section 5.19      Obligations Absolute. Each Borrower agrees that the
Secured Obligations will be paid strictly in accordance with the terms of the
Loan Documents, regardless of any law, regulation or order now or hereafter in
effect in any jurisdiction affecting any of such terms or the rights of the
Administrative Agent or any Lender with respect thereto. All Secured
Obligations shall be conclusively presumed to have been created in reliance
hereon. The liabilities under this Agreement shall be absolute and
unconditional irrespective of:

         (a)      any lack of validity or enforceability of any provisions of
any Loan Document or any other agreement or instrument relating thereto;

         (b)      any change in the time, manner or place of payments of, or in
any other term of, all or any part of the Secured Obligations, or any other
amendment or waiver thereof or any consent to departure therefrom, including,
but not limited to, any increase in the Secured Obligations resulting from the
extension of additional credit to any Borrower or otherwise;

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         (c)      any taking, exchange, release or non-perfection of any
collateral, or any release or amendment or waiver of or consent to departure
from any guaranty for all or any of the Secured Obligations;

         (d)      any change, restructuring or termination of the corporate
structure or existence of any Borrower; or

         (e)      any other circumstance (other than payment) which might
otherwise constitute a defense available to, or a discharge of, any Borrower or
a guarantor.

This Agreement shall continue to be effective or be reinstated, as the case may
be, if at any time any payment of any of the Secured Obligations is rescinded
or must otherwise be returned by the Administrative Agent or any Lender upon
the insolvency, bankruptcy or reorganization of any Borrower or otherwise, all
as though such payment had not been made.

         Section 5.20      Waiver of Suretyship Defenses. Each Borrower agrees
that the joint and several liability of the Borrowers provided for in SECTION
5.19 shall not be impaired or affected by any modification, supplement,
extension or amendment or any contract or agreement to which the other
Borrowers may hereafter agree (other than an agreement signed by the
Administrative Agent and the Lenders specifically releasing such liability),
nor by any delay, extension of time, renewal, compromise or other indulgence
granted by the Administrative Agent or any Lender with respect to any of the
Secured Obligations, nor by any other agreements or arrangements whatever with
the other Borrowers or with anyone else, each Borrower hereby waiving all
notice of such delay, extension, release, substitution, renewal, compromise or
other indulgence, and hereby consenting to be bound thereby as fully and
effectually as if it had expressly agreed thereto in advance. The liability of
each Borrower is direct and unconditional as to all of the Secured Obligations,
and may be enforced without requiring the Administrative Agent or any Lender
first to resort to any other right, remedy or security. Each Borrower hereby
expressly waives promptness, diligence, notice of acceptance and any other
notice with respect to any of the Secured Obligations, the Revolving Credit
Notes, the Term Notes, the Swingline Note, this Agreement or any other Loan
Document (other than as expressly required in this Agreement or by any of the
Loan Documents) and any requirement that the Administrative Agent or any Lender
protect, secure, perfect or insure any Lien or any property subject thereto or
exhaust any right or take any action against any Borrower or any other Person
or any collateral, including any rights any Borrower may otherwise have under
O.C.G.A. ss. 10-7-24.

         Section 5.21      Defaulting Lender's Status. Notwithstanding anything
contained herein to the contrary, but in addition to provisions regarding the
failure of a Lender to perform its obligations hereunder set forth elsewhere in
this Agreement, so long as any Lender shall be in default of its obligation to
fund its Ratable Share of any Borrowing or shall have rejected its Commitment
or shall have failed to perform its reimbursement obligations in favor of the
Administrative Agent as set forth in ARTICLE 5 hereof, then such Lender shall
not be entitled to receive any payments of principal of, or interest on, the
Loans or its share of any Unused Commitments, Letter of Credit or other fees
payable hereunder, and for purposes of voting or consenting to matters with
respect to the Loan Documents, such Lender shall be deemed not to be a "Lender"
hereunder and such Lender's Commitment shall be deemed to be zero ($0), unless
and until the earlier to occur of (a) all other Secured Obligations have been
paid in full, (b) such

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failure to fulfill its obligation to fund is cured and such Lender shall have
paid, as and to the extent provided in this Agreement, to the applicable
Person, such amount then owing together with interest on the amount that such
Lender failed to timely fund or (c) the Secured Obligations under this
Agreement shall have been declared or shall have become immediately due and
payable and/or the Revolving Credit Facility have been terminated. No
Commitment of any Lender shall be increased or otherwise affected by any such
failure or rejection by any other Lender. Unless such defaulting Lender cures
any such default prior to the making of any payment by the Borrowers of any
principal or interest hereunder, any such payment which would, but for this
subsection, be paid to such defaulting Lender, shall (to the fullest extent
permitted by Applicable Law) be paid to the Lenders who shall not be in default
under their respective Commitments and who shall not have rejected any
Commitment, for application to the Loans or to provide cash collateral in such
manner and order as shall be determined by the Administrative Agent; PROVIDED,
HOWEVER, that the Administrative Agent may, but shall not be obligated to,
effect a cure of the defaulting Lender's failure to pay money by retaining
payments that would otherwise be made to such defaulting Lender hereunder and
applying such payments to such defaulting Lender's obligations hereunder, at
such time, and in such order as the Administrative Agent may elect in its sole
discretion.

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                                   ARTICLE 6

                              CONDITIONS PRECEDENT

         Section 6.1       Conditions Precedent to Initial Loans.
Notwithstanding any other provision of this Agreement, the respective
obligations of the Lenders to make the Initial Loans are subject to the
conditions precedent that (a) no action, proceeding, investigation, regulation
or legislation, shall have been instituted, threatened or proposed before any
court, governmental agency or legislative body to enjoin, restrain or prohibit,
or to obtain substantial damages in respect of, or which are related to or
arise out of, this Agreement, or the consummation of the transactions
contemplated hereby, (b) there shall not have occurred or exists any event or
series of events or circumstances which individually or in the aggregate, in
the sole judgment of the Administrative Agent or the Arranger, would have a
Materially Adverse Effect, and (c) the Administrative Agent shall have received
on or before the Effective Date the following, each dated as of such day, in
form and substance satisfactory to the Administrative Agent, its special
counsel and the Arranger and (except for the Notes) in sufficient copies for
each Lender:

                  (1)      Agreement. This Agreement, duly executed and
         delivered by the Borrowers.

                  (2)      Notes. The Notes, each dated the Effective Date and
         duly executed and delivered by the Borrowers.

                  (3)      Articles, Bylaws and Resolutions. Certified copies
         of the articles or certificate of incorporation and by-laws or other
         constituent documents of each Loan Party as in effect on the Effective
         Date and all action, including shareholder approval, if necessary,
         taken by each Loan Party and/or their respective shareholders or other
         interest holders to authorize the execution, delivery and performance
         of this Agreement and the other Loan Documents to which each is a
         party and the Borrowings under this Agreement and the execution,
         delivery and performance of the Senior Note Documents.

                  (4)      Incumbency Certificates. Certificates of incumbency
         and specimen signatures with respect to each of the officers of each
         Loan Party who is authorized to execute and deliver this Agreement or
         any other Loan Document on behalf of such Loan Party or any document,
         certificate or instrument to be delivered in connection with this
         Agreement or the other Loan Documents and to request Borrowings under
         this Agreement.

                  (5)      Good Standing Certificates. A certificate evidencing
         the good standing of each Loan Party in the jurisdiction of its
         organization and in each other jurisdiction in which it is qualified
         to transact business.

                  (6)      Control over Deposit Accounts. Such control
         agreements with respect to Deposit Accounts as shall be required by
         the Administrative Agent, duly executed by the applicable Borrower and
         the depositary institution where each such Deposit Account is
         maintained.

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<PAGE>

                  (7)      Landlord's and Warehouseman's Waivers. Waiver and
         consent agreements duly executed on behalf of each landlord of real
         property on which Collateral is located and each warehouseman having
         possession of Collateral.

                  (8)      Mortgages. The Mortgages duly executed and delivered
         by the applicable Borrower, in proper form for recording in each
         appropriate jurisdiction.

                  (9)      Title Insurance. One or more unconditional
         commitments for the issuance of mortgagee title insurance policies
         with all requirements and conditions to the issuance of the final
         policy deleted or marked satisfied, issued by a title insurance
         company satisfactory to the Administrative Agent, each in an amount
         equal to not less than the fair market value of the Real Estate
         subject to the Mortgage insured thereby, insuring that such Mortgage
         creates a valid first lien on, and security title to, all Real Estate
         described therein, with no survey or other exceptions which the
         Administrative Agent shall not have approved in writing.

                  (10)     Real Estate Surveys. Such materials and information
         concerning the Real Estate subject to a Mortgage as the Administrative
         Agent may require, including, without limitation, (i) true and
         accurate surveys satisfactory to the Administrative Agent of all of
         the Real Estate, certified to the Administrative Agent and showing the
         location of any special flood hazard areas thereon in compliance with
         FEMA requirements, (ii) certificates of occupancy covering all of the
         Real Estate, and (iii) owner's affidavits or indemnities acceptable to
         the title insurance company as to such matters relating to the Real
         Estate as the Administrative Agent or title insurance company may
         request.

                  (11)     Environmental Reports. A copy of each report listed
         on SCHEDULE 6.1(c)(11).

                  (12)     Pledge Agreements. Each Pledge Agreement duly
         executed and delivered by the Borrower party thereto, together with
         all certificates and stock powers, undated and in blank, constituting
         Pledged Shares (as defined therein) required to be delivered by the
         pledgor thereunder to the Administrative Agent in connection with the
         execution and delivery of the Pledge Agreements.

                  (13)     Trademark Agreement. A Trademark Security Agreement
         duly executed and delivered by each of Russell, Cross Creek Apparel,
         LLC, DeSoto Mills, Inc. and Russell Asset Management.

                  (14)     Patent Agreement. A Patent Security Agreement duly
         executed and delivered by Russell.

                  (15)     Schedule of Inventory/Accounts. A Schedule of
         Inventory and a Schedule of Accounts, each prepared as of March 31,
         2002 or a later date.

                  (16)     Evidence of Insurance. Certificates or binders of
         insurance relating to (i) each of the policies of insurance covering
         any of the Collateral together with loss payable clauses which comply
         with the terms of SECTION 9.8(b) and SECTION 10.5, (ii) each of the
         policies of insurance required by the Mortgages, together with
         mortgagee

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<PAGE>

         clauses satisfactory to the Administrative Agent and (iii) flood
         insurance with respect to any improvements to Real Estate located in
         designated special flood hazard areas.

                  (17)     Borrowing Base Certificate. A Borrowing Base
         Certificate prepared as of March 31, 2002 or a later date duly
         executed and delivered by the Financial Officer, demonstrating
         Availability of not less than $65,000,000 after giving effect to the
         Loans to be made on the Effective Date and any transactions
         contemplated to occur or before the Effective Date.

                  (18)     Notice of Borrowing. An Initial Notice of Borrowing
         from the Borrowers' Representative to the Administrative Agent
         requesting the Initial Loans and specifying the method of
         disbursement.

                  (19)     Financial Statements. Copies of all the financial
         statements referred to in SECTION 7.1(n) and meeting the requirements
         thereof.

                  (20)     Officer's Certificate. A certificate of the
         President of Russell or a Financial Officer, stating that, to the best
         of his knowledge and based on an examination sufficient to enable him
         to make an informed statement, (a) all of the representations and
         warranties made or deemed to be made under this Agreement are true and
         correct as of the Effective Date, both with and without giving effect
         to the Loans to be made at such time and the application of the
         proceeds thereof, and (b) no Default or Event of Default exists.

                  (21)     Release of Liens. Evidence (including any payoff
         letter requested by the Administrative Agent) satisfactory to the
         Administrative Agent of the release and termination of (or agreement
         to release and terminate) all Liens other than Permitted Liens and
         Liens permitted by SECTION 12.9(ii).

                  (22)     Legal Opinion. A signed opinion of Alston & Bird,
         counsel for the Borrowers, and such local counsel as the
         Administrative Agent shall deem necessary or desirable, opining as to
         such matters in connection with the transactions contemplated by this
         Agreement as any Lender or its counsel may reasonably request.

                  (23)     Appraisals. Written appraisal reports prepared by
         appraisers satisfactory to the Administrative Agent, reflecting asset
         values adequate to support the Loans.

                  (24)     Licensor Agreement. The Licensor Agreement duly
         executed and delivered by Haas Outdoors, Inc.

                  (25)     Solvency Certificate. The Borrowers shall have
         delivered to the Administrative Agent a certificate executed by the
         Financial Officer, in form and substance satisfactory to the
         Administrative Agent, certifying that after giving effect to the
         Indebtedness represented by the Loans to be incurred and the
         transactions contemplated by this Agreement and the Senior Note
         Indenture, each Borrower and each of its Subsidiaries is solvent,
         having assets of a fair salable value which exceeds the amount
         required to pay its debts as they become absolute and matured
         (including contingent, subordinated, unmatured and unliquidated
         liabilities), and such Borrower and

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<PAGE>

         each of its Subsidiaries is able to and anticipates that it will be
         able to meet its debts as they mature and has adequate capital to
         conduct the business in which it is or proposes to be engaged.

                  (26)     Aircraft Security Agreement. The Aircraft Chattel
         Mortgages duly executed and delivered by Russell and recorded in the
         records of the Federal Aviation Administration (or provision therefor
         satisfactory to the Administrative Agent having been made).

                  (27)     Other Loan Documents. Copies of each of the other
         Loan Documents duly executed by the parties thereto with evidence
         satisfactory to the Administrative Agent and its counsel of the due
         authorization, binding effect and enforceability of each such Loan
         Document on each such party and such other documents and instruments
         as the Administrative Agent may reasonably request.

                  (28)     Fees. The Borrowers shall have paid all of the fees
         payable on the Effective Date provided for or referred to herein.

                  (29)     Security Interests. The Administrative Agent shall
         have received satisfactory evidence that the Administrative Agent (for
         the benefit of Lenders) has a valid and perfected first priority
         security interest as of such date in all of the Collateral, subject
         only to Permitted Liens and Liens permitted by SECTION 12.9(ii).

                  (30)     Senior Note Transaction. On the Effective Date, the
         Administrative Agent shall have received a fully executed copy of each
         of the Senior Note Documents, certified by the Financial Officer as
         being in the same form as the final drafts thereof furnished to the
         Administrative Agent and approved by it prior to the Effective Date,
         together with a written authorization of Skadden, Arps, Slate, Meagher
         & Flom LLP, counsel for the Borrowers, stating that the Administrative
         Agent and the Lenders may rely on certain portions of their legal
         opinion delivered in connection with the transactions contemplated by
         the Senior Note Indenture as though it were addressed to them. The
         Administrative Agent shall also have received evidence satisfactory to
         it that not less than $250,000,000 original principal amount of Senior
         Notes have been issued and paid for and that the other transactions
         contemplated by the Senior Note Documents to be consummated on or
         prior to the Effective Date have been consummated in accordance with
         the terms thereof without any waiver of any condition precedent to any
         party's obligations thereunder or waiver of any material provisions
         thereof other than such waivers to which the Administrative Agent has
         consented.

         Section 6.2       All Loans and Letters of Credit. At the time of
making of each Loan, including the Initial Loans and all subsequent Loans, and
the issuance of each Letter of Credit:

         (a)      all of the representations and warranties made or deemed to
be made under this Agreement shall be true and correct in all material respects
at such time both with and without giving effect to the Loans to be made at
such time and the application of the proceeds thereof (except to the extent any
such representation or warranty is made exclusively with reference to an
earlier date or is untrue solely by reason of the occurrence, since the next
prior quarterly

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compliance certificate delivery date, of a change in facts or circumstances
which, if reflected accurately in the Schedules, would not constitute a Default
or Event of Default;

         (b)      the organizational actions of the Borrowers referred to in
SECTION 6.1(c)(3) shall remain in full force and effect and the incumbency of
officers shall be as stated in the certificates of incumbency delivered
pursuant to SECTION 6.1(c)(4) or as subsequently modified and reflected in a
certificate of incumbency delivered to the Administrative Agent; and

         (c)      no Default or Event of Default shall have occurred and is
continuing.

Each request or deemed request for any Borrowing hereunder shall be deemed to
be a certification by the Borrowers to the Administrative Agent and the Lenders
as to the matters set forth in SECTION 6.2(a) and (b) and the Administrative
Agent may, without waiving either condition, consider the conditions specified
in SECTIONS 6.2(a) and (b) fulfilled and a representation by the Borrowers to
such effect made, if no written notice to the contrary is received by the
Administrative Agent prior to the making of the Loan then to be made.

         Section 6.3       Conditions as Covenants. In the event that the
Lenders permit this Agreement to become effective and make any Loans on the
Effective Date or permit FCC to issue a Letter of Credit Guarantee prior to the
satisfaction of all conditions precedent set forth in SECTION 5.1, and such
conditions are not waived in writing by the Administrative Agent, the Borrowers
shall nevertheless cause such condition or conditions to be satisfied within 30
days after the making of such Loans or the issuance of such Letter of Credit
Guarantee.

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                                   ARTICLE 7

                  REPRESENTATIONS AND WARRANTIES OF BORROWERS

         Section 7.1       Representations  and  Warranties. Russell and each
other Borrower represent and warrant to the Administrative Agent and to the
Lenders as follows:

         (a)      Organization; Power; Qualification. Such Borrower and each of
its Subsidiaries is a corporation or limited liability company, duly organized,
validly existing and in good standing under the laws of its jurisdiction of
organization, having the power and authority to own its properties and to carry
on its business as now being and hereafter proposed to be conducted and is duly
qualified and authorized to do business in each jurisdiction in which the
character of its properties or the nature of its business requires such
qualification or authorization except to the extent its failure to be so
qualified could not reasonably be expected to have a Materially Adverse Effect.
The jurisdictions in which each Borrower and each of its Subsidiaries is
qualified to do business as a foreign entity are listed on SCHEDULE 7.1(a).

         (b)      Capitalization; Shareholder Agreements. The outstanding
Equity Interests of such Borrower have been duly and validly issued and are
fully paid and nonassessable, and the number and owners of Equity Interests of
such Borrower (other than Russell) are set forth on SCHEDULE 7.1(b). The
issuance and sale of such Borrower's Equity Interests have been registered or
qualified under applicable federal and state securities laws or are exempt
therefrom. Except as set forth on SCHEDULE 7.1(b), there are no shareholders
agreements, options, subscription agreements or other agreements or
understandings to which such Borrower is a party in effect with respect to the
Equity Interests of such Borrower, including, without limitation, agreements
providing for special voting requirements or arrangements for approval of
corporate actions or other matters relating to organizational governance or
restrictions on transfer or providing for the issuance of any securities
convertible into Equity Interests of such Borrower, any warrants or other
rights to acquire any shares or securities convertible into such Equity
Interests, or any agreement that obligates such Borrower, either by its terms
or at the election of any other Person, to repurchase such Equity Interests
under any circumstances. No Person or group (within the meaning of Section
13(d) of the Securities Exchange Act of 1934, as amended, or regulations
promulgated thereunder) owns or holds options which if exercised would result
of ownership of more than 5% of the issued and outstanding common stock of
Russell except as listed on SCHEDULE 7.1(b).

         (c)      Subsidiaries. SCHEDULE 7.1(c) correctly sets forth as of the
Agreement Date the name of each Subsidiary of each Borrower, its jurisdiction
of organization, the name of its immediate parent or parents, and the
percentage of its issued and outstanding Equity Interests owned by such
Borrower or any other Subsidiary of such Borrower and indicating whether such
Subsidiary is a Consolidated Subsidiary. Except as set forth on SCHEDULE
7.1(c),

                  (i)      no Subsidiary of such Borrower has issued any
         securities convertible into Equity Interests of such Subsidiary or any
         options, warrants or other rights to acquire any Equity Interests or
         securities convertible into such Equity Interests,

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                  (ii)     the outstanding Equity Interests of each Subsidiary
         of such Borrower are owned by such Borrower or a Wholly Owned
         Subsidiary of such Borrower, or by such Borrower and one or more of
         its Wholly Owned Subsidiaries, free and clear of all Liens, warrants,
         options and rights of others of any kind whatsoever, and

                  (iii)    such Borrower has no Subsidiaries.

The outstanding Equity Interests of each Subsidiary of such Borrower has been
duly and validly issued and is fully paid and nonassessable by the issuer, and
the number and owners of Equity Interests are set forth on SCHEDULE 7.1(c).

         (d)      Authorization of Agreement, Notes, Loan Documents and
Borrowing. Such Borrower has the right and power, and has taken all necessary
action to authorize it, to execute, deliver and perform this Agreement and each
of the Loan Documents, to which it is a party, in accordance with their
respective terms. This Agreement and each of the Loan Documents, to which it is
a party, have been duly executed and delivered by the duly authorized officers
of such Borrower and each is, or each when executed and delivered in accordance
with this Agreement will be, a legal, valid and binding obligation of such
Borrower, enforceable in accordance with its terms.

         (e)      Compliance of Agreement, Notes, Loan Documents and Borrowing
with Laws, Etc. Except as set forth on SCHEDULE 7.1(e), the execution, delivery
and performance of this Agreement and each of the Loan Documents in accordance
with their respective terms and the borrowings hereunder do not and will not,
by the passage of time, the giving of notice or otherwise,

                  (i)      require any Governmental Approval or violate any
         Applicable Law relating to such Borrower or any of its Subsidiaries,

                  (ii)     conflict with, result in a breach of or constitute a
         default under the articles or certificate of incorporation, articles
         of organization, by-laws, operating agreement or any shareholders'
         agreement or other constituent documents of such Borrower or any of
         its Subsidiaries,

                  (iii)    conflict with, result in a breach of or constitute a
         default under any material provisions of any indenture, agreement or
         other instrument to which such Borrower or any of its Subsidiaries is
         a party or by which such Borrower, any of its Subsidiaries or any of
         such Borrower's or such Subsidiaries' property may be bound or any
         material Governmental Approval relating to such Borrower or any of its
         Subsidiaries, or

                  (iv)     result in or require the creation or imposition of
         any Lien upon or with respect to any property now owned or hereafter
         acquired by such Borrower other than the Security Interest.

         (f)      Business. The Borrowers are engaged principally in the
business of designing, manufacturing, marketing and distributing athletic and
other apparel and sports uniforms.

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         (g)      Compliance with Law; Governmental Approvals.

                  (i)      Except as set forth in SCHEDULE 7.1(g), each
         Borrower and each Subsidiary

                           (A)      has all Governmental Approvals, including
                  permits relating to federal, state and local Environmental
                  Laws, ordinances and regulations, required by any Applicable
                  Law for it to conduct its business, each of which is in full
                  force and effect, is final and not subject to review on
                  appeal and is not the subject of any pending or, to the
                  knowledge of the Borrowers, threatened attack by direct or
                  collateral proceeding, and

                           (B)      is in compliance with each Governmental
                  Approval applicable to it and in compliance with all other
                  Applicable Laws relating to it, including, without being
                  limited to, all Environmental Laws and all occupational
                  health and safety laws applicable to any Borrower, any
                  Subsidiary or their respective properties,

except for instances of noncompliance which would not, singly or in the
aggregate, cause a Default or Event of Default or have a Materially Adverse
Effect and in respect of which reserves in respect of any Borrower's or
Subsidiary's reasonably anticipated liability have been established on the
books of such Borrower or such Subsidiary, as applicable.

                  (ii)     Without limiting the generality of the above, except
         as disclosed on a report delivered pursuant to SECTION 6.1(c)(11) or
         with respect to matters which could not reasonably be expected to
         have, singly or in the aggregate, a Materially Adverse Effect:

                           (A)      the operations of each Borrower and each
                  Subsidiary comply in all material respects with all
                  applicable environmental, health and safety requirements of
                  Applicable Law;

                           (B)      each Borrower and each Subsidiary has
                  obtained all environmental, health and safety permits
                  necessary for its operation, and all such permits are in good
                  standing and each Borrower and Subsidiary is in compliance in
                  all material respects with all terms and conditions of such
                  permits;

                           (C)      neither such Borrower nor any of its
                  Subsidiaries nor any of their respective present or past
                  property or operations are subject to any order from or
                  agreement with any public authority or private party
                  respecting (x) any environmental, health or safety
                  requirements of Applicable Law, (y) any Remedial Action, or
                  (z) any liabilities and costs arising from the Release or
                  threatened Release of a Contaminant into the environment;

                           (D)      except as set forth in SCHEDULE 7.1(g),
                  none of the operations of such Borrower or of any of its
                  Subsidiaries is subject to any judicial or administrative
                  proceeding alleging a violation of any environmental, health
                  or safety requirement of Applicable Law;

                           (E)      none of the present or past operations of
                  such Borrower or any of its Subsidiaries is the subject of
                  any investigation by any public authority

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                  evaluating whether any Remedial Action is needed to respond
                  to a Release or threatened Release of a Contaminant into the
                  environment;

                           (F)      neither such Borrower nor any of its
                  Subsidiaries has filed any notice under any requirement of
                  Applicable Law indicating past or present treatment, storage
                  or disposal of a hazardous waste, as that term is defined
                  under 40 CFR Part 261 or any state equivalent;

                           (G)      neither such Borrower nor any of its
                  Subsidiaries has filed any notice under any requirement of
                  Applicable Law reporting a Release of a Contaminant into the
                  environment;

                           (H)      except in compliance in all material
                  respects with applicable Environmental Laws, during the
                  course of such Borrower's or any of its Subsidiaries'
                  ownership of or operations on the Real Estate, there has been
                  no (1) generation, treatment, recycling, storage or disposal
                  of hazardous waste, as that term is defined under 40 CFR Part
                  261 or any state equivalent, (2) use of underground storage
                  tanks or surface impoundments, (3) use of asbestos-containing
                  materials, or (4) use of polychlorinated biphenyls (PCBs)
                  used in hydraulic oils, electrical transformers or other
                  equipment;

                           (I)      neither such Borrower nor any of its
                  Subsidiaries has entered into any negotiations or agreements
                  with any Person (including, without limitation, any prior
                  owner of any of the Real Estate or other property of such
                  Borrower or any of its Subsidiaries) relating to any Remedial
                  Action or environment-related claim;

                           (J)      neither such Borrower nor any of its
                  Subsidiaries has received any notice or claim to the effect
                  that it is or may be liable to any Person as a result of the
                  Release or threatened Release of a Contaminant into the
                  environment;

                           (K)      neither such Borrower nor any of its
                  Subsidiaries has any material contingent liability in
                  connection with any Release or threatened Release of any
                  Contaminant into the environment;

                           (L)      no Environmental Lien has attached to any
                  of the Real Estate or other property of the Borrowers or of
                  any of the Subsidiaries;

                           (M)      the presence and condition of all
                  asbestos-containing material which is on or part of the Real
                  Estate (excluding any raw materials used in the manufacture
                  of products or products themselves) do not violate in any
                  material respect any currently applicable requirement of
                  Applicable Law; and

                           (N)      no Borrower nor any Subsidiary
                  manufactures, distributes or sells, and has never
                  manufactured, distributed or sold, products which contain
                  asbestos-containing material.

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                  (iii)    The Borrowers have notified the Lenders and the
         Administrative Agent of the receipt by any Borrower or Subsidiary of
         any written notice of a material violation of any Environmental Laws
         and occupational health and safety laws applicable to a Borrower, any
         of its Subsidiaries or any of their respective properties.

         (h)      Title to Properties. Except as set forth in SCHEDULE 7.1(h),
each Borrower and each Subsidiary has valid and legal title to or leasehold
interest in all material personal property, Real Estate and other assets used
in its business, including, but not limited to, those reflected on the most
recent balance sheet of the Borrowers delivered pursuant to SECTION 7.1(n).

         (i)      Liens. Except as set forth in SCHEDULE 7.1(i), none of the
properties and assets of any Borrower or any Subsidiary is subject to any Lien,
except Permitted Liens. Other than the Financing Statements, to the best
knowledge of each Borrower (after due investigation) no financing statement
under the UCC of any State or other instrument evidencing a Lien which names
such Borrower or any Subsidiary of such Borrower as debtor has been filed (and
has not been terminated or will not be terminated as a result of the
transactions to occur on the Effective Date) in any state or other
jurisdiction, and neither any Borrower nor any Subsidiary has authorized the
filing of any such financing statement or other instrument or executed any
security agreement authorizing any secured party thereunder to file any such
financing statement or instrument, except to perfect those Liens listed on
SCHEDULE 7.1(i).

         (j)      Debt and Guaranties. SCHEDULE 7.1(j) is a complete and
correct listing as of the Agreement Date of all (i) Debt in excess of $250,000
and (ii) Guaranties of each Borrower and each of its Subsidiaries. Each
Borrower and its Subsidiaries has performed and is in compliance with all of
the terms of such Debt and Guaranties and all instruments and agreements
relating thereto, and no default or event of default, or event or condition
which with notice or lapse of time, or both, would constitute such a default or
event of default, exists with respect to any such Indebtedness or Guaranty.

         (k)      Litigation. Except as set forth on SCHEDULE 7.1(k), as of the
Agreement Date there are no actions, suits or proceedings pending (nor, to the
knowledge of any Borrower, are there any actions, suits or proceedings
threatened, or any reasonable basis therefor) against or in any other way
relating to or affecting any Borrower or its Subsidiaries or any Borrower's or
any of its Subsidiaries' properties in any court or before any arbitrator of
any kind or before or by any governmental body, except actions, suits or
proceedings of the character normally incident to the kind of business
conducted by such Borrower or any of its Subsidiaries which, if adversely
determined, would not singly or in the aggregate have a Materially Adverse
Effect, and there are no strikes or walkouts in progress, pending or to the
Borrowers' knowledge contemplated relating to any labor contracts to which any
Borrower or its Subsidiaries is a party, relating to any labor contracts being
negotiated, or otherwise.

         (l)      Tax Returns and Payments. Except as set forth on SCHEDULE
7.1(l), as of the Agreement Date all federal, state and local as well as
foreign national, provincial and local and other tax returns of each Borrower
and Subsidiary required by Applicable Law to be filed have been duly filed, or
extensions have been secured therefor, and all federal, state and local and
foreign national, provincial and local and other taxes, assessments and other
governmental charges or levies upon the Borrowers and Subsidiaries and such
Borrower's and any of its

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Subsidiaries' property, income, profits and assets which are due and payable
have been paid, except any such nonpayment which is at the time permitted under
SECTION 10.6. The charges, accruals and reserves on the books of Borrowers and
Subsidiaries in respect of federal, state and local and foreign national,
provincial and local taxes for all Fiscal Years and portions thereof since the
organization of each such Borrower are in the judgment of the Borrowers
adequate, and the Borrowers know of no reason to anticipate any additional
assessments for any of such years which, singly or in the aggregate, might have
a Materially Adverse Effect.

         (m)      Burdensome Provisions. No Borrower nor any Subsidiary is a
party to any indenture, agreement, lease or other instrument, or subject to any
charter or corporate restriction, Governmental Approval or Applicable Law
compliance with the terms of which could reasonably be expected to have a
Materially Adverse Effect.

         (n)      Financial Statements.

                  (i)      Russell has furnished to the Administrative Agent
         and the Lenders copies of (A) the unaudited consolidated financial
         statements of Russell and its Consolidated Subsidiaries for the months
         of January and February 2002 and (B) the audited consolidated and
         unaudited consolidating financial statements of Russell and its
         Consolidated Subsidiaries as of December 29, 2001, which financial
         statements present fairly in all material respects in accordance with
         GAAP consistently applied (except, in the case of the interim
         statements, for the absence of notes and subject to year end audit
         adjustments), the financial position of the Borrowers as at their
         respective dates, and the results of operations of the Borrowers for
         the periods then ended.

                  (ii)     Russell has furnished to the Administrative Agent
         and the Lenders copies of the Projections. The Projections have been
         prepared by Russell in light of the past operations of the business of
         Russell and its Consolidated Subsidiaries and represent as of the
         respective dates thereof the good faith opinion of Russell and its
         senior management concerning the most probable course of business of
         Russell and its Consolidated Subsidiaries; PROVIDED, HOWEVER, such
         projections are subject to risks and uncertainties which could cause
         the Borrowers' actual results, performance and achievements to differ
         materially from those expressed in, or implied by, the Projections.

                  (iii)    Except as disclosed or reflected in the financial
         statements described in CLAUSES (i) and (ii) above or in any notes
         thereto or otherwise in writing to the Lenders prior to the Agreement
         Date, neither Russell nor any of its Subsidiaries has or will have, as
         of the Effective Date, any material liabilities, contingent or
         otherwise, and there are and will be no material unrealized or
         anticipated losses of Russell and its Subsidiaries.

         (o)      Adverse Change. After giving effect to the transactions
contemplated to occur on the Effective Date since December 29, 2001, no event
has occurred or failed to occur, as of the Agreement Date, which has had, or
may have, singly or in the aggregate, a Materially Adverse Effect.

         (p)      ERISA. Except in each case for instances of non-compliance
which individually or in the aggregate could not reasonably be expected to have
a Materially Adverse Effect,

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                  (i)      Neither any Borrower nor any Related Company
         maintains or contributes to any Benefit Plan other than those listed
         on SCHEDULE 7.1(p);

                  (ii)     Except as set forth on SCHEDULE 7.1(p) (assuming any
         Remediable Defects had been corrected), each Benefit Plan is in
         substantial compliance with ERISA, the Code and other applicable laws,
         including but not limited to those provisions thereof relating to
         reporting and disclosure, and neither any Borrower nor any Related
         Company has received any notice asserting that a Benefit Plan is not
         in compliance with ERISA;

                  (iii)    No material liability to the PBGC or to a
         Multiemployer Plan has been, or is expected to be, incurred by any
         Borrower or any Related Company (exclusive of required premium
         payments to the PBGC);

                  (iv)     Except as set forth on SCHEDULE 7.1(p) (assuming any
         Remediable Defects had been corrected), each Benefit Plan intended to
         qualify under Section 401(a) of the Code so qualifies and any related
         trust is exempt from federal income tax under Section 501(a) of the
         Code;

                  (v)      A favorable determination letter from the IRS (if
         required) has been issued or applied for with respect to each such
         plan and trust and nothing that is not a Remediable Defect has
         occurred since the date of such determination letter that would
         adversely affect such qualification or tax-exempt status;

                  (vi)     No Benefit Plan subject to the minimum funding
         standards of the Code has failed to meet such standards;

                  (vii)    Neither any Borrower nor any Related Company has
         transferred any pension plan liability in a transaction that could be
         subject to Sections 4069 or 4212(c) of ERISA;

                  (viii)   Except as set forth on SCHEDULE 7.1(p), neither any
         Borrower nor any Related Company has any liability, actual or
         contingent, with respect to any Benefit Plan other than to make
         payments to the Benefit Plan in accordance with its terms, and there
         are no pending or overtly threatened or known claims against a Benefit
         Plan other than claims for benefits filed in the normal course of such
         Benefit Plan's operations;

                  (ix)     Except as set forth on SCHEDULE 7.1(p), no
         non-exempt prohibited transaction with the meaning of Section 4975 of
         the Code or Section 406 of ERISA has occurred with respect to a
         Benefit Plan; and

                  (x)      Except as set forth on SCHEDULE 7.1(p) or as
         required by the provisions of the Consolidated Omnibus Reconciliation
         Act of 1986, as amended, or similar state mandated-benefit laws, none
         of the Benefit Plans provides welfare benefits to covered employees or
         their dependents extending beyond termination of the covered
         employees' service with Borrower or a Related Company.

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<PAGE>

         (q)      Absence of Defaults. Neither Russell nor any of its
Subsidiaries is in default under its articles or certificate of incorporation
or by-laws or other constituent document and no event has occurred, which has
not been remedied, cured or waived,

                  (i)      which constitutes a Default or an Event of Default,

         or

                  (ii)     which constitutes, or which with the passage of time
         or giving of notice, or both, would constitute, a default or event of
         default by a Borrower or any of its Subsidiaries under any material
         agreement (other than this Agreement) or judgment, decree or order to
         which a Borrower or any of its Subsidiaries is a party or by which a
         Borrower, any of its Subsidiaries or any of such Borrower's or any of
         its Subsidiaries' properties may be bound or which would require such
         Borrower or any of its Subsidiaries to pay any Debt under any such
         material agreement or judgment, decree or order prior to the scheduled
         maturity date therefor, except, in the case only of any such
         agreement, for alleged defaults which are being contested in good
         faith by appropriate proceedings and with respect to which reserves in
         respect of any Borrower's or Subsidiary's reasonably anticipated
         liability have been established on the books of such Borrower or such
         Subsidiary.

         (r)      Accuracy and Completeness of Information.

                  (i)      All written information, reports and other papers
         and data produced by or on behalf of a Borrower and furnished to the
         Administrative Agent or any Lender were, at the time the same were so
         furnished, complete and correct in all material respects, to the
         extent necessary to give the recipient a true and accurate knowledge
         of the subject matter. No fact is known to any Borrower which has had,
         or in the future reasonably could be expected to have (so far as such
         Borrower can foresee), a Materially Adverse Effect, which has not been
         set forth in the financial statements or disclosure delivered prior to
         the Effective Date, in each case referred to in SECTION 7.1(n), or in
         such written information, reports or other papers or data or otherwise
         disclosed in writing to the Administrative Agent and the Lenders prior
         to the Agreement Date.

                  (ii)     No Borrower has any actual knowledge that any
         document furnished or written statement made to the Administrative
         Agent or any Lender by any Person other than a Borrower (a copy of
         which has been furnished to Russell) in connection with the
         negotiation, preparation or execution of this Agreement or any of the
         Loan Documents contained any incorrect statement of a material fact or
         omitted to state a material fact necessary in order to make the
         statements made, in light of the circumstances under which they were
         made, not misleading.

         (s)      Solvency. In each case after giving effect to the Debt
represented by the Loans outstanding and to be incurred, the transactions
contemplated by this Agreement and the Senior Note Indenture, each Borrower and
each Subsidiary is solvent, having assets of a fair salable value which exceeds
the amount required to pay its debts as they become absolute and matured
(including contingent, subordinated, unmatured and unliquidated liabilities),
and each Borrower and each Subsidiary is able to and anticipates that it will
be able to meet its debts as they mature and has adequate capital to conduct
the business in which it is or proposes to be engaged.

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<PAGE>

         (t)      Accounts.

                  (i)      Status.

                           (A)      Each Account reflected in the computations
                  included in any Borrowing Base Certificate meets the criteria
                  enumerated in CLAUSES (a) through (p) of the definition of
                  Eligible Account, except as disclosed in such Borrowing Base
                  Certificate or as disclosed in a timely manner in a
                  subsequent Borrowing Base Certificate or otherwise in writing
                  to the Administrative Agent.

                           (B)      No Borrower has knowledge of any fact or
                  circumstance not disclosed to the Administrative Agent in a
                  Borrowing Base Certificate or otherwise in writing which
                  would impair the validity or collectibility of any Eligible
                  Account of $1,000,000 or more or of Eligible Accounts which
                  (regardless of the individual amount thereof) aggregate
                  $2,000,000 or more.

                  (ii)     Chief Executive Office. The chief executive offices
         of the Borrowers and the books and records relating to the Accounts
         are located at the address or addresses set forth on SCHEDULE 7.1(t);
         no Borrower has maintained its chief executive office or books and
         records relating to any Accounts at any other address at any time
         during the five years immediately preceding the Agreement Date except
         as disclosed on SCHEDULE 7.1(t).

         (u)      Inventory.

                  (i)      Schedule of Inventory. All Inventory included in any
         Schedule of Inventory or Borrowing Base Certificate delivered to the
         Administrative Agent pursuant to SECTION 9.11 meets the criteria
         enumerated in CLAUSES (a) through (h) of the definition of Eligible
         Inventory, except as disclosed in such Schedule of Inventory or
         Borrowing Base Certificate or in a timely manner in a subsequent
         Schedule of Inventory or Borrowing Base Certificate, or as otherwise
         specifically disclosed in writing to the Administrative Agent.

                  (ii)     Condition. All Inventory is in good condition, meets
         in all material respects the standards imposed by any governmental
         agency, or department or division thereof, having regulatory authority
         over such goods, their use or sale, and is currently either usable or
         salable in the normal course of the Borrowers' business, except to the
         extent reserved against in the financial statements referred to in
         SECTION 7.1(n) or delivered pursuant to ARTICLE 11 or as disclosed on
         a Schedule of Inventory delivered to the Administrative Agent pursuant
         to SECTION 9.11(b).

                  (iii)    Location. All Inventory is located on the premises
         set forth on SCHEDULE 7.1(u) or is Inventory in transit to one of such
         locations, except as otherwise disclosed in writing to the
         Administrative Agent, and no Borrower has, in the last year, located
         such Inventory at premises other than those set forth on SCHEDULE
         7.1(u).

         (v)      Equipment. All Equipment is in good order and repair in all
material respects, subject to ordinary wear and tear, and is located on the
premises set forth on SCHEDULE 7.1(v) and has been so located at all times
during the last year.

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         (w)      Bank Accounts. SCHEDULE 7.1(w) is a complete and correct
listing as of the Agreement Date of all lockbox, demand deposit and other bank
accounts maintained by the Borrowers and the Subsidiaries, specifying the
depositary, type and number of each such account.

         (x)      Intellectual Property. SCHEDULE 7.1(x) sets forth a correct
and complete list of all of the Intellectual Property. None of the Intellectual
Property is subject to any licensing agreement or similar arrangement except as
set forth on SCHEDULE 7.1(x) or as entered into in the sale or distribution of
the Borrowers' Inventory in the ordinary course of business. To the best of the
Borrowers' knowledge, none of the Intellectual Property infringes on or
conflicts with any other Person's property, and no other Person's property
infringes on or conflicts with the Intellectual Property. The Intellectual
Property described on SCHEDULE 7.1(x) constitutes all of the property of such
type necessary to the current and anticipated future conduct of the Borrowers'
business.

         (y)      Real Property. No Borrower owns any Real Estate or leases
(for a term longer than three years) any Real Estate other than that described
on SCHEDULE 7.1(y) and other than Real Estate acquired or leased after the
Effective Date for which the applicable Borrower has complied with the
requirements of SECTION 9.14.

         (z)      Corporate and Fictitious Names. Except as otherwise disclosed
on SCHEDULE 7.1(z), during the five-year period preceding the Agreement Date,
neither such Borrower nor any predecessor thereof has been known as or used any
corporate or fictitious name other than the corporate name of such Borrower on
the Effective Date.

         (aa)     Federal Reserve Regulations. Neither any Borrower nor any
Subsidiary is engaged and none will engage, principally or as one of its
important activities, in the business of extending credit for the purpose of
"purchasing" or "carrying" any "margin stock" (as each of the quoted terms is
defined or used in Regulation U of the Board of Governors of the Federal
Reserve System). No part of the proceeds of any of the Loans will be used for
so purchasing or carrying margin stock or, in any event, for any purpose which
violates, or which would be inconsistent with, the provisions of Regulation T,
U or X of such Board of Governors. If requested by the Administrative Agent or
any Lender, a Borrower will furnish to the Administrative Agent and the Lenders
a statement or statements in conformity with the requirements of said
Regulation T, U or X to the foregoing effect.

         (bb)     Investment Company Act. No Borrower is an "investment
company" or a company "controlled" by an "investment company" (as each of the
quoted terms is defined or used in the Investment Company Act of 1940, as
amended).

         (cc)     Employee Relations. Each Borrower and each Subsidiary has an
adequate work force in place and is not, except as set forth on SCHEDULE
7.1(cc), party to any collective bargaining agreement nor has any labor union
been recognized as the representative of such Borrower's or any of its
Subsidiaries' employees, and no Borrower knows of any pending, threatened or
contemplated strikes, work stoppage or other labor disputes involving such
Borrower's or any of its Subsidiaries' employees.

                                      88
<PAGE>

         (dd)     Trade Names. All trade names or styles under which any
Borrower sells Inventory or Equipment or creates Accounts, or to which
instruments in payment of Accounts are made payable, are listed on SCHEDULE
7.1(dd).

         (ee)     Senior Notes. Russell has the corporate power and authority
to issue the Senior Notes. The issuance and sale of the Senior Notes have been
registered or qualified under applicable federal and state securities laws or
are exempt therefrom. The Senior Notes are the legal valid and binding
obligations of Russell enforceable against Russell in accordance with their
terms (including those pertaining to subordination). Russell has delivered to
the Administrative Agent a complete and correct copy of all documents
evidencing or relating to the Senior Notes including the Senior Note Documents,
and each of the representations and warranties made by Russell therein is true
and correct in all material respects as of the date of such Documents.

         Section 7.2       Survival of Representations and Warranties, Etc. All
representations and warranties set forth in this ARTICLE 7 and all statements
contained in any certificate, financial statement, or other instrument,
delivered by or on behalf of the Borrowers pursuant to or in connection with
this Agreement or any of the Loan Documents (including, but not limited to, any
such representation, warranty or statement made in or in connection with any
amendment thereto) shall constitute representations and warranties made under
this Agreement. Unless limited to a specific date, all representations and
warranties made under this Agreement shall be made or deemed to be made at and
as of the Agreement Date, at and as of the Effective Date and at and in
accordance with SECTION 6.2(a), as of the date of each Loan. All
representations and warranties made or deemed to be made under this Agreement
shall survive and not be waived by the execution and delivery of this
Agreement, any investigation made by or on behalf of the Lender or any
borrowing hereunder.

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                                   ARTICLE 8

                               SECURITY INTEREST

         Section 8.1       Security Interest.

         (a)      To secure the payment, observance and performance of the
Secured Obligations, each Borrower hereby mortgages, pledges and assigns all of
the Collateral to the Administrative Agent, for the benefit of itself as
Administrative Agent and the Lenders and Affiliates of the Lenders, and grants
to the Administrative Agent, for the benefit of itself as Administrative Agent
and the Lenders and Affiliates of the Lenders, a continuing security interest
in, and a continuing Lien upon, all of the Collateral.

         (b)      As additional security for all of the Secured Obligations,
each Borrower grants to the Administrative Agent, for the benefit of itself as
Administrative Agent and the Lenders and Affiliates of the Lenders, a security
interest in, and assigns to the Administrative Agent, for the benefit of itself
as Administrative Agent and the Lenders and Affiliates of the Lenders, all of
such Borrower's right, title and interest in and to, any deposits or other sums
at any time credited by or due from each Lender and each Affiliate of a Lender
to such Borrower, or credited by or due from any participant of any Lender to
the Borrower, with the same rights therein as if the deposits or other sums
were credited by or due from such Lender. Each Borrower hereby authorizes each
Lender and each Affiliate of such Lender and each participant to pay or deliver
to the Administrative Agent, for the account of the Lenders, without any
necessity on the Administrative Agent's or any Lender's part to resort to other
security or sources of reimbursement for the Secured Obligations or the
requirement of any further consent or direction by any Borrower, at any time
during the continuation of any Event of Default of the aforesaid deposits
(general or special, time or demand, provisional or final) or other sums for
application to any Secured Obligation, irrespective of whether any demand has
been made or whether such Secured Obligation is mature, and the rights given
the Administrative Agent, the Lenders, their Affiliates and participants
hereunder are intended to constitute control in respect of such deposits and
are cumulative with such Person's other rights and remedies, including other
rights of set-off. The Administrative Agent will promptly notify a Borrower of
its receipt of any such funds for application to the Secured Obligations, but
failure to do so will not affect the validity or enforceability thereof. The
Administrative Agent may give notice of the above grant of a security interest
in and assignment of the aforesaid deposits and other sums, and authorization,
to, and make any suitable arrangements with, any Lender, any such Affiliate of
any Lender or participant for effectuation thereof upon the occurrence and
during the continuance of an Event of Default, and each Borrower hereby
irrevocably appoints the Administrative Agent as its attorney to collect any
and all such deposits or other sums to the extent any such payment is not made
to the Administrative Agent or any Lender by such Lender, Affiliate or
participant.

         Section 8.2       Continued Priority of Security Interest.

         (a)      The Security Interest granted by each Borrower shall at all
times be valid, perfected and enforceable against such Borrower and all third
parties in accordance with the terms of this Agreement, as security for the
Secured Obligations, and neither the Collateral nor the Real Estate shall at
any time be subject to any Liens that are prior to the Security Interest or,

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other than Permitted Liens and Liens permitted by SECTIONS 12.9(ii) AND (iii),
on a parity with or junior to the Security Interest.

         (b)      Each Borrower shall, at its sole cost and expense, take all
action that may be necessary, or that the Administrative Agent may reasonably
request, so as at all times to maintain the validity, perfection,
enforceability and rank of the Security Interest in the Collateral and the Real
Estate in conformity with the requirements of SECTION 8.2(a), or to enable the
Administrative Agent and the Lenders to exercise or enforce their rights
hereunder (subject to Permitted Liens and Liens permitted by SECTIONS 12.9(ii)
AND (iii)), including, but not limited to:

                  (i)      paying all taxes, assessments and other claims
         lawfully levied or assessed on any of the Collateral, except to the
         extent that such taxes, assessments and other claims constitute
         Permitted Liens,

                  (ii)     using all reasonable efforts to obtain, after the
         Agreement Date, landlords', mortgagees', bailees', warehousemen's or
         processors' and mechanics' releases, subordinations or waivers.

                  (iii)    delivering to the Administrative Agent, for the
         benefit of the Lenders, endorsed or accompanied by such instruments of
         assignment as the Administrative Agent may reasonably specify, and
         stamping or marking, in such manner as the Administrative Agent may
         reasonably specify, any and all chattel paper, instruments, letters
         and advices of guaranty and documents evidencing or forming a part of
         the Collateral,

                  (iv)     delivering to the Administrative Agent, for the
         benefit of the Lenders, a description of the facts forming the basis
         for any commercial tort claim of any Loan Party, promptly upon the
         occurrence thereof, together with such confirmation of the Security
         Interest therein as the Administrative Agent may reasonably request,
         and

                  (v)      executing and delivering financing statements,
         pledges, designations, hypothecations, notices and assignments in each
         case in form and substance satisfactory to the Administrative Agent in
         its reasonable judgment relating to the creation, validity,
         perfection, maintenance or continuation of the Security Interest under
         the UCC or other Applicable Law.

         (c)      The Administrative Agent is hereby authorized to file one or
more financing or continuation statements or amendments thereto in the name of
a Borrower for any purpose described in SECTION 8.2(b). The Administrative
Agent will endeavor to give the relevant Borrower notice of the filing of any
such statements or amendments, which may be given by delivery of a copy of such
filing, but shall not be liable for its failure to deliver any such notice or
copy.

         (d)      Each Borrower shall mark its books and records as directed by
the Administrative Agent and as may be necessary or appropriate to evidence,
protect and perfect the Security Interest and shall cause its financial
statements to reflect the Security Interest.

         Section 8.3       Releases. If any of the Collateral or Real Estate
shall be sold, transferred or otherwise disposed of by any Loan Party in a
transaction permitted by the terms of this

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Agreement or any Security Document, then the Administrative Agent, at the
request and sole expense of the Borrowers, shall execute and deliver to such
Loan Party all releases or other documents reasonably necessary or desirable
for the release of the Liens created hereby or by the terms of any Security
Document. The separate consent or approval of the Lenders to the delivery of
such releases shall not be required.

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                                   ARTICLE 9

                              COLLATERAL COVENANTS

         Each Borrower covenants and agrees that such Borrower will duly and
punctually pay the principal of, and interest on, and all other amounts payable
with respect to, the Loans and all other Secured Obligations, and until the
Revolving Credit Facility has been terminated and all the Secured Obligations
have been paid in full, unless the Required Lenders shall otherwise consent in
the manner provided in SECTION 16.11:

         Section 9.1       Collection of Accounts.

         (a)      The Borrowers will and will cause each other Loan Party to
cause all monies, checks, notes, drafts and other payments relating to or
constituting proceeds of trade accounts receivable, other Accounts and other
Collateral to be deposited in a Controlled Account in accordance with the
procedures set out in the corresponding Control Agreement. In particular, each
Borrower will and will cause each other Loan Party to advise each Account
Debtor that makes payment to such Borrower or other Loan Party by wire
transfer, ACH Transfer or similar means to make payment directly to a
Controlled Account.

         (b)      Without limiting the ability of the Administrative Agent and
the Lenders to exercise other rights and remedies hereunder, all of the Loan
Parties shall have established with a Clearing Bank, Lockboxes to which monies,
checks, notes, drafts and other payments relating to or constituting proceeds
of Collateral shall be sent and each Borrower will and will cause each other
Loan Party to:

                  (i)      advise each Account Debtor on trade accounts
         receivable that does not make payments directly to a Controlled
         Account to address all remittances with respect to amounts payable on
         account thereof to a specified Lockbox, and

                  (ii)     stamp all invoices relating to trade accounts
         receivable with a legend satisfactory to the Administrative Agent
         indicating that payment is to be made to such Borrower or other Loan
         Party via a specified Lockbox.

         (c)      The Borrowers and the Administrative Agent shall cause all
collected balances in each Controlled Account to be transmitted daily by wire
transfer, ACH Transfer, depository transfer check or other means in accordance
with the procedures set forth in the corresponding Control Agreement or such
instructions, to the Administrative Agent in accordance with the instructions
set forth in ANNEX E:

                  (i)      for application, on account of the Secured
         Obligations, as provided in SECTIONS 2.3(c), 5.10(f), 5.10(i), 13.2
         AND 13.3, such credits to be entered as of the Business Day they are
         received if they are received prior to 12:00 noon and to be
         conditioned upon final payment in cash or solvent credits of the items
         giving rise to them (PROVIDED that a collection fee shall be payable
         by the Borrowers with respect to any such credit received in other
         than immediately available funds, equal to one day's interest, at the
         rate applicable to Base Rate Loans, on such amount), and

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                  (ii)     with respect to the balance, so long as no Default
         or Event of Default has occurred and is continuing, for transfer by
         wire transfer, ACH Transfer or depository transfer check to a
         Disbursement Account or other account as agreed between the
         Administrative Agent and the Borrowers.

         (d)      Any monies, checks, notes, drafts or other payments referred
to in SUBSECTION (a) or (b) of this SECTION 9.1 which, notwithstanding the
terms of such subsection, are received by or on behalf of the applicable
Borrower will be held in trust for the Administrative Agent and will be
delivered to the Administrative Agent or a Clearing Bank as promptly as
possible, in the exact form received, together with any necessary endorsements
for application by the Administrative Agent directly to the Secured Obligations
or, as applicable, for deposit in the Controlled Account maintained with such
Clearing Bank and processing in accordance with the terms of the corresponding
Control Agreement.

         Section 9.2       Verification and Notification.

         (a)      The Administrative Agent shall have the right at any time,
with or without notice, (i) in the name of the Administrative Agent, the
Lenders or in the name of a Borrower, to verify the validity, amount or any
other matter relating to any Accounts by mail, telephone, telegraph or
otherwise (PROVIDED that the Administrative Agent shall endeavor to give notice
of any such action to the Borrowers, but shall not be liable for failure to
give any such notice) and (ii) during customary business hours, to review,
audit and make extracts from all records and files related to any of the
Accounts.

         (b)      At any time when an Event of Default exists, the
Administrative Agent shall have the right from time to time with or without
notice to the Borrowers to notify the Account Debtors or other obligors under
any Accounts of the assignment of such Accounts to the Administrative Agent,
for the benefit of the Lenders, and to direct such Account Debtor or obligor to
make payment of all amounts due or to become due thereunder directly to the
Administrative Agent, and, upon such notification and at the expense of the
Borrowers, to enforce collection of any such Accounts and to adjust, settle or
compromise the amount or payment thereof, in the same manner and to the same
extent as the relevant Borrower might have done.

         Section 9.3       Disputes, Returns and Adjustments.

         (a)      In the event any amounts due and owing under any Account for
an amount in excess of $2,000,000 are in dispute between the Account Debtor and
a Borrower, such Borrower shall provide the Administrative Agent with prompt
written notice thereof.

         (b)      Each Borrower shall notify the Administrative Agent promptly
of all returns and credits in excess of $2,000,000 in respect of any Account
(except Accounts temporarily credited in the ordinary course of business and
reissued in a corrected amount), which notice shall specify the Account
affected.

         (c)      Each Borrower may, in the ordinary course of business unless
a Default or an Event of Default has occurred and is continuing, grant any
extension of time for payment of any Account or compromise, compound or settle
the same for less than the full amount thereof, or release wholly or partly any
Person liable for the payment thereof, or allow any credit or

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discount whatsoever therein; PROVIDED that (i) no such action results in the
reduction of more than $2,000,000 in the amount payable with respect to any
Account or of more than $5,000,000 with respect to all Accounts in any Fiscal
Year (in each case, excluding the allowance of credits or discounts in the
ordinary course of the relevant Borrower's business), and (ii) the
Administrative Agent is promptly notified of the amount of such adjustments and
the Account(s) affected thereby.

         Section 9.4       Invoices.

         (a)      No Borrower will use any invoices other than invoices in the
names of the Borrowers or names used by the Borrowers and listed on SCHEDULE
7.1(dd) and reflecting payment instructions to a Bank Lockbox without giving
the Administrative Agent 30 days prior notice of the intended use of a
different form of invoice together with a copy of such different form.

         (b)      Upon the request of the Administrative Agent made at any time
when a Default or Event of Default exists, each Borrower shall deliver to the
Administrative Agent, at the Borrowers' expense, copies of customers' invoices
or the equivalent, original shipping and delivery receipts or other proof of
delivery, customers' statements, customer address lists, the original copy of
all documents, including, without limitation, repayment histories and present
status reports, relating to Accounts and such other documents and information
relating to the Accounts as the Administrative Agent shall specify.

         Section 9.5       Delivery of Instruments. In the event any Account
is at any time evidenced by a promissory note, trade acceptance or any other
instrument for the payment of money, the relevant Borrower will promptly upon
request of the Administrative Agent deliver such instrument to the
Administrative Agent.

         Section 9.6       Sales of Inventory.  All sales of Inventory  will
be made in compliance in all material respects with all requirements of
Applicable Law.

         Section 9.7       Ownership and Defense of Title.

         (a)      Except for Permitted Liens and Liens permitted by
SECTIONS 12.9(ii) AND (iii), a Borrower shall at all times be the sole
owner or lessee of each and every item of Collateral and shall not create any
lien on, or sell, lease, exchange, assign, transfer, pledge, hypothecate, grant
a security interest or security title in or to or otherwise dispose of, any of
the Collateral or any interest therein, except for sales of Inventory in the
ordinary course of business, for cash or on open account or on terms of payment
ordinarily extended to its customers, sales of property that is obsolete, worn
out or no longer useful in the Borrowers' businesses, and except for
dispositions contemplated pursuant to SECTION 12.7 or that are otherwise
expressly permitted under this Agreement. The inclusion of "proceeds" of the
Collateral under the Security Interest shall not be deemed a consent by the
Administrative Agent or the Lenders to any other sale or other disposition of
any Collateral.

         (b)      Each Borrower shall defend its title or leasehold interest in
and to, and the Security Interest in, the Collateral against the claims and
demands of all Persons.

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         Section 9.8       Insurance.

         (a)      The Borrowers shall at all times maintain insurance on the
Inventory and Equipment against loss or damage by fire, theft (excluding theft
by employees), burglary, pilferage, loss in transit and such other hazards as a
prudent Person similarly situated would maintain coverage against, in amounts
not to exceed those obtainable at commercially reasonable rates and under
policies issued by insurers acceptable to the Administrative Agent in the
exercise of its reasonable judgment. The insurance policies and amounts in
effect as of the Agreement Date are acceptable. All premiums on such insurance
shall be paid by the Borrowers and copies of the policies delivered to the
Administrative Agent at its request. The Borrowers will not use or permit the
Inventory or Equipment to be used in any manner which might render inapplicable
any insurance coverage.

         (b)      All insurance policies required under SECTION 9.8(a) shall
name the Administrative Agent, for the benefit of the Lenders, as an additional
insured and shall contain loss payable clauses in the form submitted to the
Borrowers by the Administrative Agent, or otherwise in form and substance
satisfactory to the Administrative Agent, naming the Administrative Agent, for
the benefit of the Lenders, as loss payee, as its interests may appear, and
providing that

                  (i)      all proceeds thereunder shall be payable to the
         Administrative Agent, for the benefit of the Lenders,

                  (ii)     no such insurance shall be affected by any act or
         neglect of the insured or owner of the property described in such
         policy, and

                  (iii)    such policy and loss payable clauses may be
         cancelled, amended or terminated only upon at least 10 days' prior
         written notice given to the Administrative Agent.

         (c)      Any proceeds of insurance referred to in this SECTION 9.8
which are paid to the Administrative Agent, for the account of the Lenders,
shall be, at the option of the Required Lenders in their sole discretion,
either (i) applied to replace the damaged or destroyed property, or (ii)
applied to the payment or prepayment of the Secured Obligations, PROVIDED that
if no Default or Event of Default exists, insurance proceeds in respect of any
loss having a value, as adjusted, not greater than $10,000,000 (or such greater
amount as the Required Lenders may approve) shall be released to the applicable
Borrower to be applied to the repair, restoration or replacement of the damaged
property, subject to such reasonable conditions or controls as the
Administrative Agent may specify.

         Section 9.9       Location of Offices and Collateral.

         (a)      No Borrower will change its name, its identity or corporate
structure, or its jurisdiction of organization without giving the
Administrative Agent 30 days' prior written notice thereof.

         (b)      All Inventory, other than Inventory in transit to any such
location, will at all times be kept by a Borrower at the locations set forth
in SCHEDULE 7.1(u), and shall not, without the

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prior written consent of the Administrative Agent, be removed therefrom except
pursuant to sales of Inventory permitted under SECTION 9.7(a).

         (c)      If any Inventory is in the possession or control of any of a
Borrower's agents or processors, such Borrower shall notify such agents or
processors of the Security Interest (and shall promptly provide copies of any
such notice to the Administrative Agent and the Lenders) and, upon the
occurrence of an Event of Default, shall instruct them (and cause them to
acknowledge such instruction) to hold all such Inventory for the account of the
account of the Lenders, subject to the instructions of the Administrative
Agent.

         Section 9.10      Records Relating to Collateral.

         (a)      Each Borrower will at all times

                  (i)      keep complete and accurate records of Inventory on a
         basis consistent with past practices of such Borrower so as to permit
         comparison of Inventory records relating to different time periods,
         itemizing and describing the kind, type and quantity of Inventory and
         the Borrower's cost thereof and a current price list for such
         Inventory, and

                  (ii)     keep complete and accurate records of all other
         Collateral.

         (b)      Each Borrower will prepare a physical listing of all
Inventory, wherever located, at least annually.

         Section 9.11      Inspection. The Administrative Agent and each
Lender (by any of their officers, employees or agents) shall have the right,
to the extent that the exercise of such right shall be within the control of a
Borrower, at any time or times to:

         (a)      (i) Visit the properties of any Borrower or Subsidiary,
inspect the Collateral and the other assets of each Borrower and its
Subsidiaries and inspect and make extracts from the books and records of each
Borrower and its Subsidiaries, and (ii) verify the amount, quantity, value and
condition of, or any other matter relating to, any of the Collateral and in
this connection to review, audit and make extracts from all records and files
related to any of the Collateral, including but not limited to management
letters prepared by independent accountants, all during customary business
hours at such premises and, so long as no Default or Event of Default has
occurred and is continuing, after reasonable efforts to notify the Borrowers'
Representative in advance of such visit. The Lenders shall to the extent
reasonably practicable coordinate their visits and inspections with those of
the Administrative Agent so as to minimize the number of separate visits to
Borrowers' premises.

         (b)      Discuss each Borrower's and its Subsidiaries' business,
assets, liabilities, financial condition, results of operations and business
prospects, insofar as the same are related to the rights of the Administrative
Agent or the Lenders hereunder or under any of the Loan Documents, with each
Borrower's and its Subsidiaries' principal officers and independent
accountants, and with any other Person.

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Each Borrower will deliver to the Administrative Agent, for the benefit of the
Lenders, any instrument necessary for it to obtain records from any service
bureau maintaining records on behalf of such Borrower.

         Section 9.12      Information and Reports.

         (a)      Schedule of Accounts. The Borrowers shall deliver to the
Administrative Agent on or before the Effective Date and as soon as available
but in any event not later than the 20th day of each month thereafter a
Schedule of Accounts which

                  (i)      shall be as of the last Business Day of the
         immediately preceding accounting month,

                  (ii)     shall be reconciled to the Borrowing Base
         Certificate as of such last Business Day, and

                  (iii)    shall set forth a detailed aged trial balance of all
         its then existing Accounts, specifying the names, addresses and
         balance due for each Account Debtor obligated on an Account so listed.

         (b)      Schedule of Inventory. The Borrowers shall deliver to the
Administrative Agent on or before the Effective Date and as soon as available
but in any event not later than the 20th day of each month thereafter a
Schedule of Inventory which

                  (i)      shall be as of the last Business Day of the
         immediately preceding accounting month,

                  (ii)     shall be reconciled to the Borrowing Base
         Certificate as of such last Business Day, and

                  (iii)    shall set forth an itemization and description of
         the kind, type and quantity of Inventory, the Borrowers' cost thereof
         and the location thereof.

         (c)      Borrowing Base Certificate. The Borrowers shall deliver to
the Administrative Agent as soon as available but in any event not later than
the 20th day of each calendar month a Borrowing Base Certificate prepared as of
the close of the last Business Day of the immediately preceding accounting
month (or other specified date).

The Borrowers may, at their option at any time, submit a Borrowing Base
Certificate supported by a Schedule of Inventory and a Schedule of Accounts,
which shall, for purposes of calculating Availability hereunder, supersede the
next preceding Schedule of Accounts, Schedule of Inventory and Borrowing Base
Certificate delivered hereunder.

         (d)      Notice of Diminution of Value. Each Borrower shall give
prompt notice to the Administrative Agent of any matter or event which has
resulted in, or may result in, the diminution in excess of $5,000,000 in the
value of any of its Collateral, except for any such diminution in the value of
any Accounts or Inventory in the ordinary course of business which

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has been appropriately reserved against, as reflected in financial statements
previously delivered to the Administrative Agent and the Lenders pursuant to
ARTICLE 11.

         (e)      Additional Information. The Administrative Agent may in its
reasonable discretion from time to time request that the Borrowers deliver the
schedules and certificates described in SECTIONS 9.12(a), (b), and (c) more or
less often and on different schedules and in greater or less detail than
specified in such Sections and the Borrowers will comply with such requests.
The Borrowers will notify the Administrative Agent promptly, and in any event
within five Business Days after any such account is opened, of the existence,
location, number and title of any bank account of Borrower or Subsidiary not
listed on SCHEDULE 7.1(W). The Borrowers will also furnish to the
Administrative Agent and each Lender such other information with respect to the
Collateral as the Administrative Agent or any Lender may from time to time
reasonably request.

         Section 9.13      Power of Attorney. Each Borrower hereby appoints the
Administrative Agent as its attorney in fact, with the power if and when an
Event of Default exists, to endorse the name of such Borrower on any checks,
notes, acceptances, money orders, drafts or other forms of payment or security
that may come into the Administrative Agent's or any Lender's possession, and
if and when an Event of Default exists, to sign the name of such Borrower on
any invoice or bill of lading relating to any Account, Inventory or other
Collateral, on any drafts against customers related to letters of credit, on
schedules and assignments of Accounts furnished to the Administrative Agent or
any Lender by the Borrower, on notices of assignment, financing statements and
other public records relating to the perfection or priority of the Security
Interest, verifications of account and notices to or from customers.

         Section 9.14      Additional Real Estate and Leases.

         (a)      Promptly upon a Borrower's acquisition after the Effective
Date (including by reason of an Acquisition after the Effective Date of a
Person that becomes a Borrower) of any fee interest or leasehold interest
(having a duration longer than three years) in any Real Estate having a fair
market value in excess of $1,000,000, such Borrower shall deliver to the
Administrative Agent, at the Administrative Agent's request, for the benefit of
itself as Administrative Agent and the Lenders, an executed Mortgage in form
and substance satisfactory to the Administrative Agent, conveying to the
Administrative Agent, for the benefit of itself and the Lenders, a first
priority Lien on such Real Estate, subject only to Permitted Liens or such
other prior Liens as the Administrative Agent shall consent to in writing. If
requested by the Administrative Agent, such Borrower shall also deliver to the
Administrative Agent at the Borrowers' expense a mortgagee title insurance
policy in favor of the Administrative Agent and the Lenders insuring such
Mortgage to create and convey such Lien, subject only to such exceptions as are
consented to by the Administrative Agent (such consent not be unreasonably
withheld) and shall deliver to the Administrative Agent, at the Administrative
Agent's request, the other items set forth in SECTION 6.1(c) (8) through (11)
with respect to such Real Estate, all in form and substance satisfactory to the
Administrative Agent.

         (b)      In addition to the Borrowers' obligations pursuant to
SECTION 8.2, promptly upon a Borrower's entry into any lease of Real Estate
(other than a material lease conveying an interest in Real Estate, which shall
be subject to the provisions of SUBSECTION (a) above), such

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Borrower shall, at the request of the Administrative Agent, collaterally assign
to the Administrative Agent, for the benefit of itself and the Lenders, such
Borrower's interest in such lease, in form and substance satisfactory to the
Administrative Agent in its reasonable judgment.

         Section 9.15      Assignment of Claims Act. Upon the request of the
Administrative Agent made at any time when government contracts are material to
a Borrower's business, such Borrower shall execute any documents or instruments
and shall take such steps or actions reasonably required by the Administrative
Agent so that all monies due or to become due under any contract with the
United States of America, the District of Columbia or any state, county,
municipality or other domestic or foreign governmental entity, or any
department, agency or instrumentality thereof, will be assigned to the
Administrative Agent, for the benefit of itself and the Lenders, and notice
given thereof in accordance with the requirements of the Assignment of Claims
Act of 1940, as amended, or any other laws, rules or regulations relating to
the assignment of any such contract and monies due to or to become due.

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                                  ARTICLE 10

                             AFFIRMATIVE COVENANTS

         Each Borrower covenants and agrees that the Borrowers will jointly and
severally, duly and punctually pay the principal of, and interest on, and all
other amounts payable with respect to, the Loans and all other Secured
Obligations in accordance with the terms of the Loan Documents and that until
the Revolving Credit Facility has been terminated and all the Secured
Obligations have been paid in full, unless the Required Lenders shall otherwise
consent in the manner provided for in SECTION 16.11, each Borrower will, and
will cause each of its Subsidiaries to:

         Section 10.1      Preservation of Corporate Existence and Similar
Matters. Preserve and maintain its corporate or other legal existence, rights,
franchises, licenses and privileges in the jurisdiction of its incorporation or
organization and qualify and, except to the extent its failure to do so could
not reasonably be expected to have a Materially Adverse Effect, remain
qualified as a foreign corporation or other entity and authorized to do
business in each jurisdiction in which the character of its properties or the
nature of its business requires such qualification or authorization, PROVIDED,
that each of Russell Athletic, Inc. and Russell Athletic West, Inc. may be
dissolved, liquidated, wound up or merged into Russell or another Loan Party
pursuant to the applicable provisions of the laws of such Loan Party's state of
incorporation. At the time of such dissolution, liquidation, winding up or
merger, all of the assets of such Loan Party will be distributed to Russell or
another Loan Party.

         Section 10.2      Compliance with Applicable Law. Comply in all
material respects with Applicable Law relating to such Borrower or such
Subsidiary, except to the extent being contested in good faith by appropriate
proceedings and for which reserves in respect of such Borrower's or such
Subsidiary's reasonably anticipated liability have been appropriately
established in accordance with GAAP.

         Section 10.3      Maintenance of Property.  In addition to, and not in
derogation of, the requirements of SECTION 9.7 and of the Security Documents,

         (a)      protect and preserve, consistent with the Borrowers' past
practices, all properties material to its business, including Copyrights,
Patents, and Trademarks, and maintain in good repair, working order and
condition in all material respects, with reasonable allowance for wear and
tear, all tangible properties, and

         (b)      from time to time make or cause to be made all needed and
appropriate repairs, renewals, replacements and additions to such properties
necessary for the conduct of its business, so that the business carried on in
connection therewith may be properly and advantageously conducted at all times.

         Section 10.4      Conduct of Business. At all times carry on its
business in an appropriate manner and engage only in the business(es) described
in SECTION 7.1(f).

         Section 10.5      Insurance. Maintain, in addition to the coverage
required by SECTION 9.8 and the Security Documents, insurance with responsible
insurance companies against such risks

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and in such amounts as is customarily maintained by similar businesses or
as may be required by Applicable Law, and from time to time deliver to the
Administrative Agent or any Lender upon its request a detailed list of the
insurance then in effect, stating the names of the insurance companies, the
amounts and rates of the insurance, the dates of the expiration thereof and
the properties and risks covered thereby.

         Section 10.6      Payment of Taxes and Claims.  Pay or discharge
when due

         (a)      all taxes, assessments and governmental charges or levies
imposed upon it or upon its income or profits or upon any properties belonging
to it, except that real property ad valorem taxes shall be deemed to have been
so paid or discharged if the same are paid before they become delinquent, and

         (b)      all lawful claims of materialmen, mechanics, carriers,
warehousemen and landlords for labor, materials, supplies and rentals which, if
unpaid, might become a Lien on any properties of such Borrower;

except that this SECTION 10.6 shall not require the payment or discharge of any
such tax, assessment, charge, levy or claim which is being contested in good
faith by appropriate proceedings and for which reserves in respect of
reasonably anticipated liability have been appropriately established in
accordance with GAAP.

         Section 10.7      Accounting Methods and Financial Records. Maintain
a system of accounting, and keep such books, records and accounts (which shall
be true and complete), as may be required or as may be necessary to permit the
preparation of financial statements in accordance with GAAP.

         Section 10.8      Use of Proceeds.

         (a)      Use the proceeds of

                  (i)      the initial Revolving Credit Loan and the Term Loan
         to repay Debt as indicated on SCHEDULE 10.8 to the Persons indicated
         thereon, and

                  (ii)     all Swingline Loans and all Revolving Credit Loans
         made after the Effective Date only for working capital and general
         business purposes; and

         (b)      not use any part of such proceeds to purchase or, to carry or
reduce or retire or refinance any credit incurred to purchase or carry, any
margin stock (within the meaning of Regulation U of the Board of Governors of
the Federal Reserve System) or, in any event, for any purpose which would
involve a violation of such Regulation U or of Regulation T or X of such Board
of Governors, or for any purpose prohibited by law or by the terms and
conditions of this Agreement.

         Section 10.9      Hazardous Waste and Substances; Environmental
Requirements.

         (a)      In addition to, and not in derogation of, the requirements of
SECTION 10.2 and of the Security Documents, comply in all material respects
with Environmental Laws and

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Applicable Laws relating to occupational health and safety (except for
instances of noncompliance that are being contested in good faith by
appropriate proceedings if reserves in respect of such Borrower's or such
Subsidiary's reasonably anticipated liability therefor have been appropriately
established), promptly notify the Administrative Agent of its receipt of any
written notice of a violation of any such Environmental Laws or other such
Applicable Laws and indemnify and hold the Administrative Agent and the Lenders
harmless from all loss, cost, damage, liability, claim and expense incurred by
or imposed upon the Administrative Agent or any Lender on account of such
Borrower's failure to perform its obligations under this SECTION 10.9.

         (b)      Whenever a Borrower gives notice to the Administrative Agent
pursuant to this SECTION 10.9 or otherwise with respect to a matter that
reasonably could be expected to result in material liability to such Borrower
or any Subsidiary under any Environmental Law, the Borrowers shall, at the
Administrative Agent's request and the Borrowers' expense (i) cause an
independent environmental engineer acceptable to the Administrative Agent in
its reasonable judgment to conduct an assessment, including tests where
necessary, of the site where the noncompliance or alleged noncompliance with
Environmental Laws has occurred and prepare and deliver to the Administrative
Agent a report setting forth the results of such assessment, a proposed plan,
if feasible, to bring such Borrower (or such Subsidiary) into compliance with
such Environmental Laws (if such assessment indicates noncompliance) and an
estimate of the costs thereof, and (ii) provide to the Administrative Agent a
supplemental report of such engineer whenever the scope of the noncompliance,
or the response thereto or the estimated costs thereof, shall materially
adversely change.

         Section 10.10     Execution of Subsidiary Guaranties; Additional
Borrowers. Upon the request of the Administrative Agent or the Required
Lenders, cause any domestic (United States) Subsidiary which owns assets having
an aggregate value (at the higher of net book value and fair market value)
equal to $1,000,000 or more but is not a Borrower and has not entered into a
Guaranty and a Guarantor Security Agreement to execute and deliver to the
Administrative Agent such joinder agreement with respect to this Agreement
(thereby becoming a Borrower) or such a Guaranty and a Guarantor Security
Agreement and, in either case, authorizing the filing of appropriate Financing
Statements, all in form and substance satisfactory to the Administrative Agent
and the Required Lenders in their reasonable judgment.

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                                  ARTICLE 11

                                  INFORMATION

         Until the Revolving Credit Facility has been terminated and all the
Secured Obligations have been paid in full, unless the Required Lenders shall
otherwise consent in the manner set forth in SECTION 16.11, the Borrowers will
furnish to the Administrative Agent and to each Lender at its offices then
designated for notices pursuant to SECTION 16.1, the statements, reports,
certificates, and other information provided for in this ARTICLE 11. All
written information, reports, statements and other papers and data furnished to
the Administrative Agent or any Lender by or at the request of a Borrower,
whether pursuant to this ARTICLE 11 or any other provision of this Agreement or
of any other Loan Document, shall be, at the time the same is so furnished,
complete and correct in all material respects to the extent necessary to give
the Administrative Agent and the Lenders true and accurate knowledge of the
subject matter. Specifically, the Borrowers will so furnish:

         Section 11.1      Financial Statements.

         (a)      Audited Year-End Statements. As soon as available, but in any
event within 90 days after the end of each Fiscal Year, copies of the
consolidating (which may be by strategic business unit, rather than each
individual Subsidiary) and consolidated balance sheets of Russell and its
Consolidated Subsidiaries as at the end of such Fiscal Year and the related
consolidating and consolidated statements of income, shareholders' equity and
cash flows for such Fiscal Year, in each case setting forth in comparative form
the figures for the previous Fiscal Year, reported on, as to such consolidated
statements, without qualification or a going concern statement, by independent
certified public accountants of nationally recognized standing selected by
Russell; PROVIDED that delivery by Russell of its annual report on Form 10-K
filed with the SEC shall satisfy such requirement as to the consolidated
financial statements;

         (b)      Monthly Financial Statements. As soon as available after the
end of each month, but in any event within 30 days after the end of each
accounting month (or within 45 days after the end of each accounting month that
is the last month in a Fiscal Quarter), copies of the unaudited consolidating
and consolidated balance sheets of Russell and its Consolidated Subsidiaries as
at the end of such month and the related unaudited consolidating and
consolidated statements of income and cash flows for Russell and its
Consolidated Subsidiaries for such month, for the Fiscal Quarter then ended (if
such month is the last month of a Fiscal Quarter) and for the portion of the
Fiscal Year through such month, certified by the Financial Officer as
presenting fairly the financial condition and results of operations of Russell
and its Consolidated Subsidiaries (subject to normal year-end audit
adjustments) for the applicable period(s);

all such financial statements to be complete and correct in all material
respects and prepared in accordance with GAAP (except, with respect to interim
financial statements, for the omission of notes) applied consistently
throughout the periods reflected therein; and

         (c)      Forecast. As soon as available, but in any event not later
than 30 days after the first day of each Fiscal Year beginning after the
Effective Date, forecasted income statement and

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statement of cash flow and beginning and ending balance sheets for Russell and
its Consolidated Subsidiaries (on a consolidated and consolidating basis) for
such Fiscal Year.

         Section 11.2      Accountants' Certificate. Together with the
financial statements referred to in SECTION 11.1(a), a copy of the certificate
of such accountants addressed to Russell, stating that in making the
examination necessary for the certification of such financial statements,
nothing has come to their attention to lead them to believe that any Default or
Event of Default exists or, if such is not the case, specifying such Default or
Event of Default and its nature.

         Section 11.3      Officer's Certificate. At the time that the
Borrowers furnish the financial statements pursuant to SECTION 11.1(b) for any
accounting month that is the last month of a Fiscal Quarter, a certificate of
the Financial Officer in the form attached hereto as EXHIBIT G,

         (a)      setting forth as at the end of such Fiscal Quarter or Fiscal
Year, as the case may be, the calculations required to establish whether or not
the Borrowers were in compliance with the requirements of SECTIONS 12.1, 12.2,
12.4, 12.5 and 12.6, as at the end of each respective period and the
calculations necessary to determine the Applicable Margin,

         (b)      stating that the information on the schedules to this
Agreement (other than those that refer specifically to a single date on or
prior to the Effective Date) is complete and accurate as of the date of such
certificate or, if such is not the case, attaching to such certificate updated
schedules in accordance with the provisions of SECTION 11.7, and

         (c)      stating that, based on a reasonably diligent examination, no
Default or Event of Default exists, or, if such is not the case, specifying
such Default or Event of Default and its nature, when it occurred, whether it
is continuing and the steps being taken by the Borrowers with respect to such
Default or Event of Default.

         Section 11.4      Copies of Other Reports.

         (a)      Promptly upon receipt thereof, copies of all reports, if any,
submitted to a Borrower or its Board of Directors by its independent public
accountants, including, without limitation, any management report.

         (b)      As soon as practicable and, in any event, when made available
to the holders of the Senior Notes, copies of all financial statements and
reports that a Borrower shall send to its shareholders generally and of all
registration statements and all regular or periodic reports which a Borrower
shall file with the Securities and Exchange Commission or any successor
commission.

         (c)      From time to time and as soon as reasonably practicable
following each request, such forecasts, data, certificates, reports,
statements, opinions of counsel, documents or further information regarding the
business, assets, liabilities, financial condition, results of operations or
business prospects of any Borrower or Subsidiary as the Administrative Agent
may reasonably request and that a Borrower has or (except in the case of legal
opinions relating to the perfection or priority of the Security Interest)
without unreasonable expense can obtain and without waiver of the
attorney-client or other recognized privilege may disclose, PROVIDED that if
any requested information is not disclosed to the Lenders in order to avoid
waiver or risk of waiver of any such

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privilege, the Borrowers shall notify the Administrative Agent and the Lenders
of such fact. The rights of the Administrative Agent and the Lenders under this
SECTION 11.4 are in addition to and not in derogation of their rights under any
other provision of this Agreement or of any other Loan Document.

         (d)      If requested by the Administrative Agent or any Lender, the
Borrowers will furnish to the Administrative Agent and the Lenders statements
in conformity with the requirements of Federal Reserve Form U-1 or G-3 referred
to in Regulation U of the Board of Governors of the Federal Reserve System.

         Section 11.5      Notice of Litigation and Other Matters.  Prompt
notice of:

         (a)      the commencement, to the extent a Borrower is aware of the
same, of all proceedings and investigations by or before any governmental or
nongovernmental body and all actions and proceedings in any court or before any
arbitrator against or in any other way relating to or affecting the Borrowers,
any of their respective Subsidiaries or any of the Borrowers' or any of their
respective Subsidiaries' properties, assets or businesses, which could
reasonably be expected, singly or in the aggregate, to result in the occurrence
of a Default or an Event of Default, or have a Materially Adverse Effect,

         (b)      any amendment of the articles of incorporation or by-laws or
other constituent documents of a Borrower or any of its Subsidiaries and any
change in the executive officers of Russell,

         (c)      any change in the business, assets, liabilities, financial
condition, results of operations or business prospects of a Borrower or any of
its Subsidiaries which has had or could reasonably be expected to have, singly
or in the aggregate, a Materially Adverse Effect,

         (d)      the receipt of any notice from or the giving of notice to the
trustee under the Senior Note Indenture, together with a copy of such notice,
and

         (e)      any Default or Event of Default or any event which
constitutes or which with the passage of time or giving of notice or both would
constitute a default or event of default by a Borrower or any of its
Subsidiaries under any material agreement (other than this Agreement) to which
such Borrower or any of its Subsidiaries is a party or by which such Borrower,
any of its Subsidiaries or any of such Borrower's or any of its Subsidiaries'
properties may be bound.

         Section 11.6      ERISA. As soon as possible and in any event within
30 days after a Borrower knows, or has reason to know, that:

         (a)      any ERISA Event with respect to a Benefit Plan has occurred
or will occur, or

         (b)      the aggregate present value of the Unfunded Vested Accrued
Benefits under all Benefit Plans is equal to an amount in excess of $5,000,000,
or

         (c)      a Borrower or any Subsidiary is in "default" (as defined in
Section 4219(c)(5) of ERISA) with respect to payments to a Multiemployer
Benefit Plan required by reason of the Borrower's or such Subsidiary's complete
or partial withdrawal (as described in Section 4203 or

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4205 of ERISA) from such Multiemployer Plan, a certificate of the Financial
Officer setting forth the details of such event and the action which is
proposed to be taken with respect thereto, together with any notice or filing
which may be required by the PBGC or other agency of the United States
government with respect to such event.

         Section 11.7      Revisions or Updates to Schedules. As part of the
quarterly officer's certificate required pursuant to SECTION 11.3(b), such
revisions or updates to such Schedule(s) as may be necessary or appropriate to
update or correct such Schedule(s), PROVIDED that no such revisions or updates
to any Schedule(s) shall be deemed to have amended, modified or superseded such
Schedule(s) as attached hereto immediately prior to the submission of such
revised or updated Schedule(s), or to have cured any breach of warranty or
representation resulting from the inaccuracy or incompleteness of any such
Schedule(s), unless and until the Required Lenders, in their sole and absolute
discretion, shall have accepted in writing such revisions or updates to such
Schedule(s).

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                                  ARTICLE 12

                               NEGATIVE COVENANTS

         Until the Revolving Credit Facility has been terminated and all the
Secured Obligations have been paid in full, unless the Required Lenders shall
otherwise consent in the manner set forth in SECTION 16.11, the Borrowers will
not directly or indirectly and, in the case of SECTIONS 12.2 through 12.10,
will not permit Subsidiaries to:

         Section 12.1      Financial Ratios.

         (a)      Minimum Fixed Charge Coverage. Permit the Fixed Charge
Coverage Ratio for (i) the period consisting of the first and second Fiscal
Quarters of Fiscal Year 2002, to be less than 0.50 to 1; (ii) the period
consisting of the first, second and third Fiscal Quarters of Fiscal Year 2002,
to be less than 1.0 to 1; (iii) the period of four consecutive Fiscal Quarters
ending on or after the last day of Fiscal Year 2002 and before the last day of
Fiscal Year 2003, to be less than 1.15 to 1; (iv) the period of four
consecutive Fiscal Quarters ending on or after the last day of Fiscal Year 2003
and before the last day of Fiscal Year 2004, to be less than 1.20 to 1; or (v)
the period of four consecutive Fiscal Quarters ending on or after the last day
of Fiscal Year 2004, to be less than 1.25 to 1.

         (b)      Maximum Leverage Ratio. So long as the Term Loan is
outstanding, permit the Leverage Ratio at any time during any Fiscal Quarter to
be greater than the maximum permitted level as of the last day of the most
recent Fiscal Quarter, determined for each period of four consecutive Fiscal
Quarters ending (i) before the last day of Fiscal Year 2002 to be greater than
4.00 to 1; (ii) on or after the last day of Fiscal Year 2002 and before the
last day of Fiscal Year 2003, to be greater than 3.75 to 1; or (iii) on or
after the last day of Fiscal Year 2003 to be greater than 3.50 to 1.

         Section 12.2      Debt. Create, assume, or otherwise become or remain
obligated in respect of, or permit or suffer to exist or to be created, assumed
or incurred or to be outstanding any Debt, except that this SECTION 12.2 shall
not apply to:

         (a)      Debt of the Loan Parties represented by the Loans and (if
issued) the Notes,

         (b)      Debt reflected on SCHEDULE 7.1(j) (excluding any such Debt
that is to be paid in full on the Effective Date),

         (c)      Permitted Purchase Money Debt incurred in an aggregate
principal amount not greater than $15,000,000 in any Fiscal Year,

         (d)      Debt represented by the Senior Notes and Guarantees thereof
by the Loan Parties (other than Russell),

         (e)      Subordinated Debt incurred on commercially reasonable terms,

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         (f)      Interest Rate Agreements, and foreign exchange contracts
entered into in connection with transactions to which Russell or a Subsidiary
is party and not for speculative purposes,

         (g)      Unsecured Debt of any Loan Party owing to Russell or any
Subsidiary, PROVIDED the repayment thereof is subordinated to the prior payment
in full of the Secured Obligations and such Debt is evidenced by a promissory
note that is delivered to the Administrative Agent, at its request, as
Collateral,

         (h)      Permitted Investments,

         (i)      Other unsecured Debt incurred on commercially reasonable
terms,

         (j)      Secured Debt of Foreign Subsidiaries in an aggregate
principal amount at any time outstanding not to exceed the Foreign Subsidiary
Debt Limit,

         (k)      Secured Debt assumed in connection with and existing on the
date of any Acquisition permitted by SECTION 12.4 and not created in
contemplation thereof, on commercially reasonable terms, in an aggregate
principal amount outstanding at any time not to exceed $15,000,000, and

         (l)      Debt incurred pursuant to a Qualifying Refinancing,

in each case of incurrence, to the extent that incurrence of such Debt is also
permitted at the time pursuant to the Senior Note Indenture.

         Section 12.3      Guaranties. Become or remain liable with respect
to any Guaranty of any obligation of any other Person, except that this
SECTION 12.3 shall not apply to any Loan Party's Guaranty of obligations
permitted hereunder of another Loan Party (including Guarantees of the Senior
Notes by the Loan Parties (other than Russell)) or to Borrower's or
Subsidiary's obligation to indemnify its officers and directors to the fullest
extent permitted by the corporation or other Applicable Law of the jurisdiction
of such Person's organization.

         Section 12.4      Investments. After the Agreement Date, make any
Investment, maintain any Investment, or Acquire any Business Unit, EXCEPT that
this SECTION 12.4 shall not apply to:

         (a)      (i) Permitted Investments or (ii) Investments as to which
each of the following conditions is satisfied:

                           (A)      at least 14 days prior to the closing date
                  for a proposed Investment, the Borrowers shall provide to the
                  Administrative Agent and the Lenders notice of such proposed
                  Investment, together with an information package sufficient
                  to permit confirmation that the other conditions set forth in
                  this SECTION 12.4(a)(ii) have been or will be satisfied on
                  the closing date for such proposed Investment;

                           (B)      the cash portion of the purchase price for
                  the Investment, when added to the cash portions of the
                  purchase prices of any other Section 12.4 Investments and the
                  cash portions of the purchase prices of any Permitted

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                  Acquisitions closed in the same Fiscal Year, does not exceed
                  $50,000,000 and Availability, immediately after giving effect
                  to such Investment, will be not less than $50,000,000;

                           (C)      at least 14 days prior to the closing of
                  the proposed Investment, the Borrowers shall have
                  demonstrated, in a manner satisfactory to the Administrative
                  Agent in its reasonable judgment, compliance by Russell and
                  its Consolidated Subsidiaries with the terms and provisions
                  of this Agreement on a pro forma basis after giving effect to
                  the proposed Investment as if it had been closed on the first
                  day of the most recently ended period of 12 consecutive
                  accounting months of Russell; and

                           (D)      at the time of and after giving effect to
                  the proposed Investment, no Default or Event of Default shall
                  exist.

         (b)      Acquisitions as to which each of the following conditions is
satisfied:

                  (i)      at least 14 days prior to the closing date for the
         proposed Acquisition, the Borrowers shall provide to the
         Administrative Agent and the Lenders notice of such proposed
         Acquisition together with an information package containing the
         following documents and confirmation that the other conditions set
         forth in this SECTION 12.4(b) have been or will be satisfied on the
         closing date for such proposed Acquisition:

                           (A)      the purchase agreement and all other
                  material documents and agreements relating to such proposed
                  Acquisition in substantially final form,

                           (B)      all such information as may be necessary to
                  enable the Administrative Agent, for the benefit of the
                  Lenders, to obtain a first priority, perfected security
                  interest (subject only to Permitted Liens) in substantially
                  all of the assets to be acquired from or owned by the
                  Acquisition Target immediately upon consummation of the
                  proposed Acquisition (unless such Acquisition Target will be
                  a Foreign Subsidiary), and

                           (C)      copies of lien search results for each
                  jurisdiction in which the Acquisition Target is located, in
                  which the chief executive office of the Acquisition Target is
                  located, or in which the Acquisition Target has assets;

                  (ii)     the cash portion of the purchase price for the
         Acquisition Target, when added to the cash portions of the purchase
         prices of any other Permitted Acquisitions closed in the same Fiscal
         Year and the total amount invested in Section 12.4 Investments in such
         Fiscal Year does not exceed the sum of (A) $50,000,000 plus (B) up to
         100% of the net proceeds of any issuance of Equity Interests of
         Russell after the date hereof, if such issuance was intended by
         Russell to finance, in part, such purchase price as disclosed in
         advance by Russell to the Lenders, and Availability, immediately after
         giving effect to such Acquisition, will be not less than $50,000,000;

                  (iii)    the proposed Acquisition is an arm's length
         transaction whereby a Borrower will (A) own directly or indirectly at
         least 51% of the Equity Interests in such

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         Acquisition Target and will control the governance of such Acquisition
         Target or (B) acquire a Business Unit;

                  (iv)     at the time of the proposed Acquisition, the
         Acquisition Target shall be engaged in a business which is the same as
         or related, ancillary or complementary to any of the businesses of the
         Borrowers that are being conducted on the Agreement Date, and a
         majority of the board of directors or managers or comparable governing
         body of the Acquisition Target shall have approved the transaction;

                  (v)      at least 14 days prior to the consummation of the
         proposed Acquisition, the Borrowers shall have demonstrated, in a
         manner satisfactory to the Administrative Agent in its reasonable
         judgment, (A) positive trailing 12-month pro forma net income before
         provision for income taxes, interest expense, depreciation, or
         amortization of the Acquisition Target ("Target EBITDA") and (B)
         compliance by Russell and its Consolidated Subsidiaries with the terms
         and provisions of this Agreement on a pro forma basis after giving
         effect to Permitted Pro Forma Adjustments for the Acquisition Target;

                  (vi)     at least 14 days prior to the consummation of such
         Acquisition, the Administrative Agent shall have received such
         appraisals of Accounts and Inventory to be acquired and included in
         the Borrowing Base as the Administrative Agent in the exercise of its
         reasonable credit judgment deems material and environmental site
         assessments, in form and substance satisfactory to the Administrative
         Agent and the Lenders, with respect to any real property owned by the
         Acquisition Target or operated by the Acquisition Target;

                  (vii)    no Debt shall be incurred or assumed by any Borrower
         or the Acquisition Target in connection with or as a result of such
         proposed Acquisition other than in compliance with the provisions of
         SECTION 12.2;

                  (viii)   the Administrative Agent shall have received such
         additional instruments, certificates and other documents, including
         opinions of counsel, as may be usual or customary in connection with
         similar acquisitions and as the Administrative Agent may reasonably
         request;

                  (ix)     in the case of an Acquisition of Equity Interests,
         the Acquisition Target shall be merged with and into a Borrower or the
         Acquisition Target (other than any Acquisition Target that becomes a
         Foreign Subsidiary) shall have executed and delivered the Subsidiary
         Guaranty (or an effective joinder agreement with respect thereto) and
         a Guarantor Security Agreement unless the Borrowers and the
         Administrative Agent have agreed that the Acquisition Target is to
         become an additional Borrower, in which case the Acquisition Target
         and the other Borrowers shall have duly executed and delivered such
         acknowledgment or amendment to this Agreement and such additions to or
         replacements of outstanding Notes as the Administrative Agent may
         require evidencing the Acquisition Target's joint and several
         liability for the Secured Obligations as a Borrower under this
         Agreement;

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                  (x)      the Administrative Agent, for itself and on behalf
         of the Lenders, shall have a first priority Lien (subject only to
         Permitted Liens) on the assets of the Acquisition Target (other than
         any Acquisition Target that becomes a Foreign Subsidiary) or otherwise
         acquired in connection with such Acquisition (other than any such Lien
         as to which the Administrative Agent determines in writing that the
         benefit thereof is not sufficient to justify the cost of obtaining and
         perfecting such Lien); and

                  (xi)     at the time of and after giving effect to the
         proposed Acquisition, no Default or Event of Default shall exist.

         Section 12.5      Capital Expenditures. Make or incur any Capital
Expenditures (other than Financed Capex) in any Fiscal Year in an amount
greater than $50,000,000, PROVIDED that any unused portion of such allowance up
to $30,000,000 may be carried over but only to the succeeding Fiscal Year. All
Capital Expenditures shall be applied first to reduce the annual $50,000,000
allowance.

         Section 12.6      Restricted Distributions and Payments, Etc. Declare
or make any Restricted Distribution or Restricted Payment, except that this
SECTION 12.6 shall not apply to any Permitted Investment or to cash dividends
on its capital stock declared and paid by Russell in respect of any Fiscal Year
in an amount not to exceed the sum of (a) $5,750,000, and (b) an amount equal
to the lesser of (i) 25% of Excess Cash Flow for such Fiscal Year and (ii)
$19,250,000, PROVIDED that, after giving effect on a pro forma basis to any
such payment, no Default or Event of Default shall exist.

         Section 12.7      Merger, Consolidation and Sale of Assets. Merge or
consolidate with any other Person or sell, lease or transfer or otherwise
dispose of any material assets to any Person other than (i) sales of Accounts
to Russell Financial Services, Inc. or other finance Subsidiary that is a Loan
Party, (ii) sales of Inventory in the ordinary course of business, or
dispositions as permitted pursuant to SECTION 9.7, except that this SECTION
12.7 shall not apply to (a) the merger of any Loan Party or Subsidiary into a
Loan Party, PROVIDED that, Russell shall be the surviving corporation of any
merger to which it is a party and a Loan Party shall be the surviving entity of
any merger with a Subsidiary that is not a Loan Party, (b) any transfer of
assets to a Loan Party, (c) so long as no Event of Default exists at the time,
the sale, lease, transfer or other disposition by a Borrower of any Assets Held
For Sale, (d) the sale, lease, transfer or other disposition of any Equipment
or Real Estate for at least the fair market value thereof at the time of such
sale, lease, transfer or other disposition and for consideration at least 75%
of which is paid in cash at closing, (e) as to accounts receivable in an
aggregate amount not exceeding $10,000,000 in any Fiscal Year, (1) the sale on
a non-recourse basis as to all Loan Parties, of any account receivable that is
not, immediately prior to such sale, an "Eligible Account" or (2) the sale,
transfer or other disposition of any account receivable that is not,
immediately prior to such sale, an "Eligible Account," pursuant to a factoring
agreement on market terms for "no advance, no ledger debt" arrangements or
otherwise on terms and conditions satisfactory to the Administrative Agent, and
an agreement between the factor a party to such factoring agreement and the
Administrative Agent, in form and substance satisfactory to the Administrative
Agent in the exercise of its reasonable credit judgment, providing for, among
other things, direct remittance by such factor to an account specified by the
Administrative Agent of amounts due from such factor from time to time,
subordination of any claim such factor may otherwise have against the
applicable Loan

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Party arising out of obligations of such Loan Party to other customers of such
factor ("ledger debt"), and the agreement of such factor to make no loans or
advances to such Loan Party, or (f) transfers of assets in connection with any
Investment permitted hereunder.

         Section 12.8      Transactions with Affiliates. Effect any transaction
with any Affiliate other than on arms-length terms or otherwise on a basis less
favorable to the Borrowers than would be the case if such transaction had been
effected with a Person not an Affiliate except for (i) Restricted
Distributions, Restricted Payments, Investments and other transactions
expressly permitted hereunder, (ii) compensation arrangements with officers,
employees and directors approved by the compensation or other appropriate
committee of the board of directors of Russell, and (iii) customary directors'
fees and indemnity arrangements.

         Section 12.9      Liens. Create, assume or permit or suffer to exist
or to be created or assumed any Lien on any of the Collateral or its other
assets, other than (i) Permitted Liens, (ii) Liens affecting exclusively raw
materials Inventory with an aggregate value at any time not to exceed
$2,000,000 in favor of the suppliers of such Inventory and (iii) Liens securing
Debt permitted by SECTION 12.2(k), which Liens affect solely capital or fixed
assets (and not Accounts or Inventory or proceeds thereof) of the Business Unit
or Person Acquired, existing on the date of the related Acquisition and not
created in contemplation thereof.

         Section 12.10     Amendments of Other Agreements. Amend in any way
(a) the Senior Note Indenture (other than to reduce the interest rate or extend
the schedule of payments with respect thereto or to make the covenants less
onerous or restrictive to the Borrowers (or any Subsidiary)) or (b) any
documents governing Subordinated Debt (other than to reduce the interest rate
or extend the schedule of payments or to make the covenants less onerous or
restrictive to the Borrowers (or any Subsidiary)).

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                                  ARTICLE 13

                                    DEFAULT

         Section 13.1      Events of Default. Each of the following shall
constitute an Event of Default, whatever the reason for such event and whether
it shall be voluntary or involuntary or be effected by operation of law or
pursuant to any judgment or order of any court or any order, rule or regulation
of any governmental or nongovernmental body:

         (a)      Default in Payment. The Borrowers shall default in any
payment of principal of or interest on any Loan or any Note when and as due
(whether at maturity, by reason of acceleration or otherwise).

         (b)      Other Payment Default. The Borrowers shall default in the
payment, as and when due of any Secured Obligation (other than as provided in
CLAUSE (a) above), and such default shall continue for a period of 10 days
after written notice thereof has been given to the Borrower by the
Administrative Agent.

         (c)      Misrepresentation. Any representation or warranty made or
deemed to be made by a Borrower under this Agreement or any Loan Document, or
any amendment hereto or thereto, shall at any time prove to have been incorrect
or misleading in any material respect when made.

         (d)      Default in Performance. The Borrowers shall default in the
performance or observance of any term, covenant, condition or agreement to be
performed by any Borrower, contained in

                  (i)      ARTICLES 11 or 12, or SECTION 9.7, 9.8, 9.10, 9.11,
         9.12, 10.1 (insofar as it requires the preservation of the existence
         of the Loan Parties), or 10.8, and the Administrative Agent shall have
         delivered to the Borrowers written notice of such default, or

                  (ii)     this Agreement (other than as specifically provided
         for otherwise in this SECTION 13.1) and such default shall continue
         for a period of 15 days after written notice thereof has been given to
         the Borrower by the Administrative Agent.

         (e)      Debt Cross-Default. (i) Failure of a Borrower or any of its
Subsidiaries to pay when due or within any applicable grace period any
principal of or interest on any Debt (other than the Loans), or (ii) breach or
default of a Borrower or any of its Subsidiaries with respect to any Debt
(other than the Loans), if the effect of such failure to pay, default or breach
is to cause or to permit the holder or holders then to cause any Debt having an
individual or an aggregate principal amount in excess of $5,000,000 to become
or be declared due prior to its stated maturity, whether or not such failure to
pay, default or breach is waived by such holder or holders.

         (f)      Other Cross-Defaults. A Borrower or any of its Subsidiaries
shall default in the payment when due, or in the performance or observance, of
any obligation or condition of any agreement, contract or lease (other than
this Agreement, the other Loan Documents or any such

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agreement, contract or lease relating to Indebtedness for money borrowed) if
the existence of any such defaults, singly or in the aggregate, could
reasonably be expected to have a Materially Adverse Effect.

         (g)      Voluntary Bankruptcy Proceeding. Any Loan Party shall

                  (i)      commence a voluntary case under the federal
         bankruptcy laws (as now or hereafter in effect),

                  (ii)     file a petition seeking to take advantage of any
         other laws, domestic or foreign, relating to bankruptcy, insolvency,
         reorganization, winding up or composition for adjustment of debts,

                  (iii)    consent to or fail to contest in a timely and
         appropriate manner any petition filed against it in an involuntary
         case under such bankruptcy laws or other laws,

                  (iv)     apply for or consent to, or fail to contest in a
         timely and appropriate manner, the appointment of, or the taking of
         possession by, a receiver, custodian, trustee, or liquidator of itself
         or of a substantial part of its property, domestic or foreign,

                  (v)      admit in writing its inability to pay its debts as
         they become due,

                  (vi)     make a general assignment for the benefit of
         creditors, or

                  (vii)    take any corporate action for the purpose of
         authorizing any of the foregoing.

         (h)      Involuntary Bankruptcy Proceeding. A case or other proceeding
shall be commenced against any Loan Party in any court of competent
jurisdiction seeking

                  (i)      relief under the federal bankruptcy laws (as now or
         hereafter in effect) or under any other laws, domestic or foreign,
         relating to bankruptcy, insolvency, reorganization, winding up or
         adjustment of debts,

                  (ii)     the appointment of a trustee, receiver, custodian,
         liquidator or the like of a Loan Party or of all or any substantial
         part of the assets, domestic or foreign, of a Loan Party,

and such case or proceeding shall continue undismissed or unstayed for a period
of 60 consecutive calendar days, or an order granting the relief requested in
such case or proceeding against a Loan Party (including, but not limited to, an
order for relief under such federal bankruptcy laws) shall be entered.

         (i)      Loan Documents. Any event of default or "Event of Default"
under any other Loan Document shall occur.

         (j)      Failure of Agreements. Any Loan Party shall challenge the
validity and binding effect of any provision of any Loan Document after
delivery thereof hereunder or shall state in

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writing its intention to make such a challenge, or this Agreement or any
Security Document after delivery thereof hereunder, shall for any reason
(except to the extent permitted by the terms hereof or thereof) cease to create
a valid and perfected first priority Lien on, or security interest in, any of
the Collateral purported to be covered thereby in favor of the Administrative
Agent.

         (k)      Judgment. A final, unappealable judgment or order for the
payment of money in an amount that exceeds the uncontested insurance available
therefor by $5,000,000 or more shall be entered against a Borrower by any court
and such judgment or order shall continue undischarged, unbonded, or unstayed
for 30 days.

         (l)      Attachment. A warrant or writ of attachment or execution or
similar process which exceeds $5,000,000 in value shall be issued against any
property of a Borrower and such warrant or process shall continue undischarged
or unstayed for 30 days.

         (m)      ERISA. Any ERISA Event (other than as set forth on
SCHEDULE 7.1(p)) shall occur and be continuing that could reasonably be
expected to result in liability to Russell or any Related Company of $5,000,000
or more.

         (n)      Qualified Audits. The independent certified public
accountants retained by the Borrowers shall refuse to deliver an opinion in
accordance with SECTION 11.1(a) with respect to the annual financial statements
of the Borrowers.

         (o)      Change of Control. Russell shall cease to own, beneficially
and of record, directly or indirectly, 100% of the outstanding Equity Interests
of each of the other Loan Parties, or such ownership shall cease to vest in it
voting control of each such Loan Party, or a "Change of Control" under and as
defined in the Senior Note Indenture shall occur.

         Section 13.2      Remedies.

         (a)      Automatic Acceleration and Termination of Facilities. Upon
the occurrence of an Event of Default specified in SECTION 13.1(g) or (h), (i)
the principal of and the interest on the Loans and any Note at the time
outstanding, and all other amounts owed to the Administrative Agent or the
Lenders under this Agreement or any of the other Loan Documents and all other
Secured Obligations, shall thereupon become due and payable without
presentment, demand, protest, or other notice of any kind, all of which are
expressly waived, anything in this Agreement or any of the Loan Documents to
the contrary notwithstanding, and (ii) each Facility and the right of the
Borrowers to request Borrowings under this Agreement shall immediately
terminate.

         (b)      Other Remedies. If any Event of Default shall have occurred,
and during the continuance of any Event of Default, the Administrative Agent
may, and at the direction of the Required Lenders in their sole and absolute
discretion shall, do any of the following:

                  (i)      declare the principal of and interest on the Loans
         and any Note at the time outstanding, and all other amounts owed to
         the Administrative Agent or the Lenders under this Agreement or any of
         the other Loan Documents and all other Secured Obligations, to be
         forthwith due and payable, whereupon the same shall immediately become
         due and payable without presentment, demand, protest or other notice
         of any

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         kind, all of which are expressly waived, anything in this Agreement or
         the Loan Documents to the contrary notwithstanding;

                  (ii)     terminate any Facility and any other right of the
         Borrowers to request Borrowings hereunder;

                  (iii)    subject to the provisions of SECTION 9.2, notify, or
         request the relevant Borrower to notify, in writing or otherwise, any
         Account Debtor or obligor with respect to any one or more of the
         Accounts to make payment to the Administrative Agent, for the benefit
         of the Lenders, or any agent or designee of the Administrative Agent,
         at such address as may be specified by the Administrative Agent and
         if, notwithstanding the giving of any notice, any Account Debtor or
         other such obligor shall make payments to a Borrower, such Borrower
         shall hold all such payments it receives in trust for the
         Administrative Agent, for the account of the Lenders, without
         commingling the same with other funds or property of, or held by, such
         Borrower, and shall deliver the same to the Administrative Agent or
         any such agent or designee of the Administrative Agent immediately
         upon receipt by such Borrower in the identical form received, together
         with any necessary endorsements;

                  (iv)     settle or adjust disputes and claims directly with
         Account Debtors and other obligors on Accounts for amounts and on
         terms which the Administrative Agent considers advisable and in all
         such cases only the net amounts received by the Administrative Agent,
         for the account of the Lenders, in payment of such amounts, after
         deductions of costs and attorneys' fees, shall constitute Collateral
         and no Borrower shall have no further right to make any such
         settlements or adjustments or to accept any returns of merchandise;

                  (v)      enter upon any premises in which Inventory or
         Equipment may be located and, without resistance or interference by
         any Borrower, take physical possession of any or all thereof and
         maintain such possession on such premises or move the same or any part
         thereof to such other place or places as the Administrative Agent
         shall choose, without being liable to any Borrower on account of any
         loss, damage or depreciation that may occur as a result thereof, so
         long as the Administrative Agent shall act reasonably and in good
         faith;

                  (vi)     require each Borrower to and each Borrower shall,
         without charge to the Administrative Agent or any Lender, assemble the
         Inventory and Equipment and maintain or deliver it into the possession
         of the Administrative Agent or any agent or representative of the
         Administrative Agent at such place or places as the Administrative
         Agent may designate and as are reasonably convenient to both the
         Administrative Agent and the Borrowers;

                  (vii)    at the expense of the Borrowers, cause any of the
         Inventory and Equipment to be placed in a public or field warehouse,
         and the Administrative Agent shall not be liable to any Borrower on
         account of any loss, damage or depreciation that may occur as a result
         thereof, so long as the Administrative Agent shall act reasonably and
         in good faith;

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                  (viii)   without notice, demand or other process, and without
         payment of any rent or any other charge, enter any premises of any
         Borrower and, without breach of the peace, until the Administrative
         Agent, on behalf of the Lenders, completes the enforcement of its
         rights in the Collateral, take possession of such premises or place
         custodians in exclusive control thereof, remain on such premises and
         use the same and any of such Borrower's Equipment, for the purpose of
         (A) completing any work in process, preparing any Inventory for
         disposition and disposing thereof, and (B) collecting any Account, and
         the Administrative Agent for the benefit of the Lenders is hereby
         granted a license or sublicense and all other rights as may be
         necessary, appropriate or desirable to use the Intellectual Property
         in connection with the foregoing (including, without limitation, the
         right to utilize any logo or other distinctive symbol associated with
         the Borrowers in connection with any advertising, promotion or
         marketing undertaken by the Administrative Agent or any Lender, and
         the rights of such Borrower under all licenses, sublicenses and
         franchise agreements shall inure to the Administrative Agent for the
         benefit of the Lenders (PROVIDED, HOWEVER, that any use of any
         federally registered trademarks as to any goods shall be subject to
         the control as to the quality of such goods of the owner of such
         trademarks and the goodwill of the business symbolized thereby), and
         PROVIDED FURTHER, that such grant of license, sublicense and other
         rights in the Intellectual Property is not prohibited by any
         contractual restrictions other than such as may have been entered into
         for the purpose of evading this provision;

                  (ix)     exercise any and all of its rights under any and all
         of the Security Documents;

                  (x)      apply any Collateral consisting of cash to the
         payment of the Secured Obligations in any order in which the
         Administrative Agent, on behalf of the Lenders, may elect or use such
         cash in connection with the exercise of any of its other rights
         hereunder or under any of the Security Documents; and

                  (xi)     exercise all of the rights and remedies of a secured
         party under the UCC and under any other Applicable Law, including,
         without limitation, the right, without notice except as specified
         below and with or without taking possession thereof, to sell the
         Collateral or any part thereof in one or more parcels at public or
         private sale, at any location chosen by the Administrative Agent, for
         cash, on credit or for future delivery, and at such price or prices
         and upon such other terms as the Administrative Agent may deem
         commercially reasonable. Each Borrower agrees that, to the extent
         notice of sale shall be required by law, at least 10 days' notice to
         the Borrowers of the time and place of any public sale or the time
         after which any private sale is to be made shall constitute reasonable
         notification, but notice given in any other reasonable manner or at
         any other reasonable time shall constitute reasonable notification.
         The Administrative Agent shall not be obligated to make any sale of
         Collateral regardless of notice of sale having been given. The
         Administrative Agent may adjourn any public or private sale from time
         to time by announcement at the time and place fixed therefor, and such
         sale may, without further notice, be made at the time and place to
         which it was so adjourned;

PROVIDED, HOWEVER, that any disposition of Inventory incorporating copyrighted
designs, bearing a trademark or otherwise utilizing Intellectual Property
licensed by (i) Major League Baseball

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Properties, Inc. shall be subject to Section 13.S of Contract ML No. 3918(rv)
between Major Baseball League Properties, Inc. and Russell, and (ii) Haas
Outdoors, Inc. shall be subject to the Master Copyright License Agreement and
the Trademark License Agreement, each dated April 28, 2000, between Haas
Outdoors, Inc. and Russell.

         Section 13.3      Application of Proceeds. All proceeds from each sale
of, or other realization upon, all or any part of the Collateral following an
Event of Default shall be applied or paid over as provided in SECTION 5.10(f).

THE BORROWERS SHALL REMAIN LIABLE JOINTLY AND SEVERALLY AND WILL PAY, ON
DEMAND, ANY DEFICIENCY REMAINING IN RESPECT OF THE SECURED OBLIGATIONS,
TOGETHER WITH INTEREST THEREON AT A RATE PER ANNUM EQUAL TO THE HIGHEST RATE
THEN PAYABLE HEREUNDER ON SUCH SECURED OBLIGATIONS, WHICH INTEREST SHALL
CONSTITUTE PART OF THE SECURED OBLIGATIONS.

         Section 13.4      Power of Attorney. In addition to the authorizations
granted to the Administrative Agent under SECTION 9.13 or under any other
provision of this Agreement or of any other Loan Document, during the
continuance of an Event of Default, each Borrower hereby irrevocably
designates, makes, constitutes and appoints the Administrative Agent (and all
Persons designated by the Administrative Agent from time to time) as such
Borrower's true and lawful attorney, and agent in fact, and the Administrative
Agent, or any agent of the Administrative Agent, may, without notice to any
Borrower, and at such time or times as the Administrative Agent or any such
agent in its sole discretion may determine, in the name of a Borrower, the
Administrative Agent or the Lenders,

         (a)      demand payment of the Accounts,

         (b)      enforce payment of the Accounts by legal proceedings or
otherwise,

         (c)      exercise all of the relevant Borrower's rights and remedies
with respect to the collection of Accounts,

         (d)      settle, adjust, compromise, extend or renew any or all of the
Accounts,

         (e)      settle, adjust or compromise any legal proceedings brought to
collect the Accounts,

         (f)      discharge and release the Accounts or any of them,

         (g)      prepare, file and sign the name of the relevant Borrower on
any proof of claim in bankruptcy or any similar document against any Account
Debtor,

         (h)      prepare, file and sign the name of the relevant Borrower on
any notice of Lien, assignment or satisfaction of Lien, or similar document in
connection with any of the Collateral,

         (i)      endorse the name of the relevant Borrower upon any chattel
paper, document, instrument, notice, freight bill, bill of lading or similar
document or agreement relating to the Accounts, the Inventory or any other
Collateral,

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         (j)      use the stationery of any Borrower and sign the name of the
relevant Borrower to verifications of the Accounts and on any notice to the
Account Debtors,

         (k)      open the Borrowers' mail,

         (l)      notify the post office authorities to change the address for
delivery of the Borrowers' mail to an address designated by the Administrative
Agent, and

         (m)      use the information recorded on or contained in any data
processing equipment and computer hardware and software relating to the
Accounts, Inventory or other Collateral to which any Borrower has access.

         Section 13.5      Miscellaneous Provisions Concerning Remedies.

         (a)      Rights Cumulative. The rights and remedies of the
Administrative Agent and the Lenders under this Agreement, the Notes and each
of the Loan Documents shall be cumulative and not exclusive of any rights or
remedies which it or they would otherwise have. In exercising such rights and
remedies the Administrative Agent and the Lenders may be selective and no
failure or delay by the Administrative Agent or any Lender in exercising any
right shall operate as a waiver of it, nor shall any single or partial exercise
of any power or right preclude its other or further exercise or the exercise of
any other power or right.

         (b)      Waiver of Marshalling. Each Borrower hereby waives any right
to require any marshalling of assets and any similar right.

         (c)      Limitation of Liability. Nothing contained in this ARTICLE 13
or elsewhere in this Agreement or in any of the Loan Documents shall be
construed as requiring or obligating the Administrative Agent, any Lender or
any agent or designee of the Administrative Agent or any Lender to make any
demand, or to make any inquiry as to the nature or sufficiency of any payment
received by it, or to present or file any claim or notice or take any action,
with respect to any Account or any other Collateral or the monies due or to
become due thereunder or in connection therewith, or to take any steps
necessary to preserve any rights against prior parties, and the Administrative
Agent, the Lenders and their agents or designees shall have no liability to any
Borrower for actions taken pursuant to this ARTICLE 13, any other provision of
this Agreement or any of the Loan Documents so long as the Administrative Agent
or such Lender shall act in good faith and in a commercially reasonable manner.

         (d)      Appointment of Receiver. In any action under this ARTICLE 13,
the Administrative Agent shall be entitled during the continuance of an Event
of Default, to the fullest extent permitted by Applicable Law, to the
appointment of a receiver, without notice of any kind whatsoever, to take
possession of all or any portion of the Collateral and to exercise such power
as the court shall confer upon such receiver.

         Section 13.6      Trademark License. Each Borrower hereby grants to
the Administrative Agent for its benefit as Administrative Agent and for the
benefit of the Lenders, the nonexclusive right and license to use the
Trademarks described in the Trademark Security Agreement for the purposes (and
subject to the restrictions) set forth in SECTION 13.2(b)(viii) and for the
purposes of enabling the Administrative Agent to realize on the Collateral and
to permit any purchaser of any

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portion of the Collateral through a foreclosure sale or any other exercise of
the Administrative Agent's rights and remedies under this Agreement and the
other Security Documents to use, sell or otherwise dispose of finished goods
Collateral bearing any such Trademark. Such right and license is granted free
of charge, without the requirement that any monetary payment whatsoever be made
to the relevant Borrower or any other Person by the Lenders or the
Administrative Agent or any purchaser or purchasers of the Collateral. Each
Borrower hereby represents, warrants, covenants and agrees that it presently
has, and shall continue to have, the right, without the approval of consent of
others, to grant the license set forth in this SECTION 13.6.

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                                  ARTICLE 14

                                  ASSIGNMENTS

         Section 14.1      Successors and Assigns; Participations.

         (a)      This Agreement shall be binding upon and inure to the benefit
of the Borrowers, the Lenders, the Administrative Agent, all future holders of
the Notes, and their respective successors and assigns, except that the
Borrowers may not assign or transfer any of their rights or obligations under
this Agreement without the prior written consent of each Lender.

         (b)      Each Lender may assign to one or more Eligible Assignees all
or a portion of its interests, rights and obligations under this Agreement
(including, without limitation, all or a portion of the Loans at the time owing
to it and the Notes held by it); PROVIDED, HOWEVER, that (i) such Lender shall
first obtain the written consent of (x) the Administrative Agent, which consent
shall not be unreasonably withheld or delayed and (y) except in the case of an
assignment to a Lender or an Affiliate of a Lender, provided no Default or
Event of Default has occurred and is continuing, Russell, which consent shall
not be unreasonably withheld or delayed, (ii) the amount of the Commitment of
the assigning Lender that is subject to each such assignment (determined as of
the date the Assignment and Acceptance with respect to such assignment is
delivered to the Administrative Agent) shall in no event be less than
$5,000,000 or less than 100% of the assigning Lender's Commitment if (x) such
assigning Lender's remaining Commitment is less than $5,000,000 or (y) such
assignment is being made at the request of the Borrowers as contemplated
herein, PROVIDED that lesser amounts may be assigned to Lenders and their
Affiliates, (iii) in the case of a partial assignment, the amount of the
Commitment that is retained by the assigning Lender and its Affiliates
(determined as of the date the Assignment and Acceptance with respect to such
assignment is delivered to the Administrative Agent) shall in no event be less
than the $5,000,000, (iv) the parties to each such assignment shall execute and
deliver to the Administrative Agent, for its acceptance and recording in the
Register an Assignment and Acceptance, together with any Note or Notes subject
to such assignment, (v) such assignment shall not, without the consent of the
Borrowers, require the Borrowers to file a registration statement with the
Securities and Exchange Commission or apply to or qualify the Loans or the
Notes under the blue sky laws of any state, (vi) the representation contained
in SECTION 14.2 hereof shall be true with respect to any such proposed
assignee, and (vii) in the event the Eligible Assignee is a new Lender, the
assigning Lender shall, on the "Effective Date" as defined in the Assignment
and Acceptance, pay to the Administrative Agent solely for its own account an
assignment fee in the amount of $3,500. The assignment fee shall be fully
earned on the "Effective Date" as defined in such Assignment and Acceptance and
shall not be subject to refund or rebate. Upon such execution, delivery,
acceptance and recording, from and after the effective date specified in each
Assignment and Acceptance, which effective date, unless otherwise agreed among
all parties to such Assignment and Acceptance, shall be at least five (5)
Business Days after the execution thereof, (A) the assignee thereunder shall be
a party hereto and, to the extent provided in such Assignment and Acceptance,
have the rights and obligations of a Lender hereunder, and (B) the Lender
assignor thereunder shall, to the extent provided in such assignment, be
released from its obligations under this Agreement.

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         (c)      By executing and delivering an Assignment and Acceptance, the
Lender assignor thereunder and the assignee thereunder confirm to and agree
with each other and the other parties hereto as follows: (i) other than the
representation and warranty that it is the legal and beneficial owner of the
interest being assigned thereby free and clear of any adverse claim, such
Lender assignor makes no representation or warranty and assumes no
responsibility with respect to any statements, warranties or representations
made in or in connection with this Agreement or the execution, legality,
validity, enforceability, genuineness, sufficiency or value of this Agreement
or any other instrument or document furnished pursuant hereto; (ii) such Lender
assignor makes no representation or warranty and assumes no responsibility with
respect to the financial condition of any Borrower or the performance or
observance by any Borrower of any of its obligations under this Agreement or
any other instrument or document furnished pursuant hereto; (iii) such assignee
confirms that it has received a copy of this Agreement, together with copies of
the financial statements referred to in SECTION 7.1(n) and such other documents
and information as it has deemed appropriate to make its own credit analysis
and decision to enter into such Assignment and Acceptance; (iv) such assignee
will, independently and without reliance upon the Administrative Agent, such
Lender assignor or any other Lender, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under this Agreement; (v) such
assignee confirms that it is an Eligible Assignee; (vi) such assignee appoints
and authorizes the Administrative Agent to take such action as agent on its
behalf and to exercise such powers under this Agreement and the other Loan
Documents as are delegated to the Administrative Agent by the terms hereof and
thereof, together with such powers as are reasonably incidental thereto; and
(vii) such assignee agrees that it will perform in accordance with their terms
all of the obligations which by the terms of this Agreement are required to be
performed by it as a Lender.

         (d)      The Administrative Agent shall maintain a copy of each
Assignment and Acceptance delivered to it and a register for the recordation of
the names and addresses of the Lenders and the Commitment and Proportionate
Share of, and principal amount of the Loans and owing to, each Lender from time
to time (the "Register"). The entries in the Register shall be conclusive, in
the absence of manifest error, and the Borrowers, the Administrative Agent and
the Lenders may treat each person whose name is recorded in the Register as a
Lender hereunder for all purposes of this Agreement. The Register shall be
available for inspection by the Borrowers or any Lender at any reasonable time
and from time to time upon reasonable prior notice.

         (e)      Upon its receipt of an Assignment and Acceptance executed by
an assigning Lender and an Eligible Assignee together with any Note or Notes
subject to such assignment, the Administrative Agent shall, if such Assignment
and Acceptance complies with this SECTION 14.1 and has been completed and is in
the form of EXHIBIT D, (i) accept such Assignment and Acceptance, (ii) record
the information contained therein in the Register, (iii) give prompt notice
thereof to the Lenders and the Borrowers, and (iv) promptly deliver a copy of
such Acceptance and Assignment to the Borrowers. Within five Business Days
after receipt of notice, the Borrowers shall execute and deliver to the
Administrative Agent in exchange for the surrendered Note or Notes a new Note
or Notes to the order of such Eligible Assignee in amounts equal to the
Commitment assumed by such Eligible Assignee pursuant to such Assignment and
Acceptance and a new Note or Notes to the order of the assigning Lender in an
amount equal to the Commitment retained by it hereunder. Such new Note or Notes
shall be in an aggregate

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principal amount equal to the aggregate principal amount of such surrendered
Note or Notes, shall be dated the effective date of such Assignment and
Acceptance and shall otherwise be in substantially the form of the assigned
Notes. Each surrendered Note or Notes shall be cancelled and returned to the
Borrowers.

         (f)      Each Lender may sell participations to one or more banks or
other entities in all or a portion of its rights and obligations under this
Agreement (including, without limitation, all or a portion of its Commitment
hereunder and the Loans owing to it and the Notes held by it); PROVIDED,
HOWEVER, that (i) such Lender's obligations under this Agreement (including,
without limitation, its Commitment hereunder) shall remain unchanged, (ii) such
Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations, (iii) such Lender shall remain the holder of
the Notes held by it for all purposes of this Agreement, (iv) the Borrowers,
the Administrative Agent and the other Lenders shall continue to deal solely
and directly with such Lender in connection with such Lender's rights and
obligations under this Agreement; PROVIDED, that such Lender may agree with any
participant that such Lender will not, without such participant's consent,
agree to or approve any waivers or amendments which would reduce the principal
of or the interest rate on any Loans, extend the term or increase the amount of
the commitments of such participant, reduce the amount of any fees to which
such participant is entitled, extend any scheduled payment date for principal
or release Collateral securing the Loans (other than Collateral disposed of
pursuant to SECTION 9.7 hereof or otherwise in accordance with the terms of
this Agreement or the Security Documents), and (v) any such disposition shall
not, without the consent of the Borrowers, require any Borrowers to file a
registration statement with the Securities and Exchange Commission to apply to
qualify the Loans or the Notes under the blue sky law of any state. The Lender
selling a participation to any Person that is not a Lender or an Affiliate of a
Lender shall use all reasonable efforts to give notice thereof to the Borrowers
PROVIDED that failure to give such notice shall not result in liability to such
Lender. Any purchaser of a participation in any Commitment or Loan shall be
entitled to compensation pursuant to SECTIONS 5.15(b) and (c) to the same
extent as if it were a "Lender" but not in any amount greater than that to
which the Lender from which it purchased such participation is entitled. As
used in this SECTION 14.1(f), "Affiliates" shall include any trust,
partnership, limited liability company or other entity that (x) is organized
under the laws of the United States or any state thereof, (y) is engaged in
making, purchasing or otherwise investing in commercial loans in the ordinary
course of its business and (z) is organized, managed or sponsored by any
Lender.

         (g)      Any Lender may, in connection with any assignment, proposed
assignment, participation or proposed participation pursuant to this SECTION
14.1, disclose to the assignee, participant, proposed assignee or proposed
participant, any information relating to any Borrower furnished to such Lender
by or on behalf of the Borrowers, PROVIDED that, prior to any such disclosure,
each such assignee, proposed assignee, participant or proposed participant
shall agree with the Borrowers or such Lender (which in the case of an
agreement with only such Lender, the Borrowers shall be recognized as a third
party beneficiary thereof) to preserve the confidentiality of any confidential
information relating to any Borrower received from such Lender.

         (h)      Notwithstanding any provision of the foregoing to the
contrary, any Lender may pledge its interest in any Loan or Note to a Federal
Reserve Bank.

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         Section 14.2      Representation of Lenders. Each Lender hereby
represents that it will make each Loan hereunder as a commercial loan for its
own account in the ordinary course of its business; PROVIDED, HOWEVER, that
subject to SECTION 14.1 hereof, the disposition of the Notes or other evidence
of the Secured Obligations held by any Lender shall at all times be within its
exclusive control.

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                                  ARTICLE 15

                              ADMINISTRATIVE AGENT

         Section 15.1      Appointment of Administrative Agent. Each of the
Lenders hereby irrevocably designates and appoints FCC as the Administrative
Agent of such Lender under this Agreement and the other Loan Documents, and
each Lender irrevocably authorizes the Administrative Agent, as the
Administrative Agent for such Lender, to take such action on its behalf under
the provisions of this Agreement and the other Loan Documents and to exercise
such powers and perform such duties as are expressly delegated to the
Administrative Agent by the terms of this Agreement and such other Loan
Documents, together with such other powers as are reasonably incidental
thereto. Notwithstanding any provision to the contrary elsewhere in this
Agreement or the other Loan Documents, the Administrative Agent shall not have
any duties or responsibilities, except those expressly set forth herein and
therein, or any fiduciary relationship with any Lender, and no implied
covenants, functions, responsibilities, duties, obligations or liabilities
shall be read into this Agreement or the other Loan Documents or otherwise
exist against the Administrative Agent.

         Section 15.2      Delegation of Duties. The Administrative Agent may
execute any of its duties under this Agreement and the other Loan Documents by
or through agents or attorneys-in-fact and shall be entitled to advice of
counsel concerning all matters pertaining to such duties. The Administrative
Agent shall not be responsible for the negligence or misconduct of any agents
or attorneys-in-fact selected by it with reasonable care.

         Section 15.3      Exculpatory Provisions. Neither the Administrative
Agent nor any of its trustees, officers, directors, employees, agents,
attorneys-in-fact or Affiliates shall be (i) liable to any Lender (or any
Lender's participants) for any action lawfully taken or omitted to be taken by
it or such Person under or in connection with this Agreement or the other Loan
Documents (except for its or such Person's own gross negligence or willful
misconduct), or (ii) responsible in any manner to any Lender (or any Lender's
participants) for any recitals, statements, representations or warranties made
by a Borrower or any officer thereof contained in this Agreement or the other
Loan Documents or in any certificate, report, statement or other document
referred to or provided for in, or received by the Administrative Agent under
or in connection with, this Agreement or the other Loan Documents or for the
existence, value, validity, effectiveness, genuineness, enforceability or
sufficiency of this Agreement or the other Loan Documents or any Collateral or
Lien or other interest therein or for any failure of any Borrower to perform
its obligations hereunder or thereunder. The Administrative Agent shall not be
under any obligation to any Lender to ascertain or to inquire as to the
observance or performance of any of the agreements contained in, or conditions
of, this Agreement, or to inspect the properties, books or records of any
Borrower.

         Section 15.4      Reliance by Administrative Agent. The Administrative
Agent shall be entitled to rely, and shall be fully protected in relying, upon
any Note, writing, resolution, notice, consent, certificate, affidavit, letter,
cablegram, telegram, telecopy, telex or teletype message, statement, order or
other document or conversation believed by it to be genuine and correct and to
have been signed, sent or made by the proper Person or Persons and upon advice
and statements of legal counsel (including, without limitation, counsel to the
Borrowers),

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independent accountants and other experts selected by the Administrative Agent.
The Administrative Agent may deem and treat the payee of any Note as the owner
thereof for all purposes unless such Note shall have been transferred in
accordance with SECTION 14.1. The Administrative Agent shall be fully justified
in failing or refusing to take any action under this Agreement and the other
Loan Documents unless it shall first receive such advice or concurrence of the
Required Lenders as it deems appropriate and shall be indemnified to its
satisfaction by the Lenders against any and all liability and expense which may
be incurred by it by reason of taking or continuing to take any such action.
The Administrative Agent shall in all cases be fully protected in acting, or in
refraining from acting, under this Agreement and the Notes in accordance with a
request of the Required Lenders, and such request and any action taken or
failure to act pursuant thereto shall be binding upon all the Lenders and all
future holders of the Notes.

         Section 15.5      Notice of Default. The Administrative Agent shall
not be deemed to have knowledge or notice of the occurrence of any Default or
Event of Default hereunder unless the Administrative Agent has received notice
from a Lender or a Borrower referring to this Agreement, describing such
Default or Event of Default and stating that such notice is a "notice of
default". In the event that the Administrative Agent receives such a notice,
the Administrative Agent shall promptly give notice thereof to the Lenders. The
Administrative Agent shall take such action with respect to such Default or
Event of Default as shall be reasonably directed by the Required Lenders;
PROVIDED that unless and until the Administrative Agent shall have received
such directions, the Administrative Agent may (but shall not be obligated to)
continue making Revolving Credit Loans to the Borrowers on behalf of the
Lenders in reliance on the provisions of SECTION 5.9 and take such other
action, or refrain from taking such action, with respect to such Default or
Event of Default as it shall deem advisable in the best interests of the
Lenders.

         Section 15.6      Non-Reliance on Administrative Agent, Other Agents
and Other Lenders. Each Lender expressly acknowledges that none of the
Administrative Agent, any Syndication Agent, Documentation Agent or Co-Agent
nor any of its officers, directors, counsel, employees, agents,
attorneys-in-fact or Affiliates has made any representations or warranties to
it and that no act by the Administrative Agent, any Syndication Agent,
Documentation Agent or Co-Agent hereafter taken, including any review of the
affairs of any Borrower, shall be deemed to constitute any representation or
warranty by the Administrative Agent, any Syndication Agent, Documentation
Agent or Co-Agent to any Lender. Each Lender represents to the Administrative
Agent any Syndication Agent, Documentation Agent and Co-Agent that it has,
independently and without reliance upon the Administrative Agent, any
Syndication Agent, Documentation Agent or Co-Agent or any other Lender, and
based on such documents and information as it has deemed appropriate, made its
own appraisal of and investigation into the business, operations, property,
financial (and other) condition and creditworthiness of each Borrower and made
its own decision to make its Loans hereunder and enter into this Agreement.
Each Lender also represents that it will, independently and without reliance
upon the Administrative Agent, any Syndication Agent, Documentation Agent or
Co-Agent or any other Lender, and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit analysis,
appraisals and decisions in taking or not taking action under this Agreement
and the other Loan Documents, and to make such investigation as it deems
necessary to inform itself as to the business, operations, property, financial
(and other) condition and creditworthiness of

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each Borrower. Except for notices, reports and other documents expressly
required to be furnished to the Lenders by the Administrative Agent hereunder
or under the other Loan Documents, none of the Administrative Agent, any
Syndication Agent, Documentation Agent or Co-Agent shall not have any duty or
responsibility to provide any Lender with any credit or other information
concerning the business, operations, property, financial (and other) condition
or creditworthiness of any Borrower which may come into the possession of the
Administrative Agent any Syndication Agent, Documentation Agent or Co-Agent or
any of its officers, directors, employees, agents, attorneys-in-fact or
Affiliates.

         Section 15.7      Indemnification. The Lenders agree to indemnify the
Administrative Agent in its capacity as such (to the extent not reimbursed by
the Borrowers and without limiting the obligation of the Borrowers to do so),
Ratably, from and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind whatsoever which may at any time (including, without limitation, at
any time following the payment of the Notes) be imposed on, incurred by or
asserted against the Administrative Agent in any way relating to or arising out
of this Agreement or the other Loan Documents, or any documents contemplated by
or referred to herein or therein or the transactions contemplated hereby or
thereby or any action taken or omitted by the Administrative Agent under or in
connection with any of the foregoing; PROVIDED that no Lender shall be liable
for the payment of any portion of such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
resulting solely from the Administrative Agent's gross negligence or willful
misconduct or resulting solely from transactions or occurrences that occur at a
time after such Lender has assigned all of its interests, rights and
obligations under this Agreement pursuant to SECTION 14.1 or, in the case of a
Lender to which an assignment is made hereunder pursuant to SECTION 14.1, at a
time before such assignment. The agreements in this subsection shall survive
the payment of the Notes, the Secured Obligations and all other amounts payable
hereunder and the termination of this Agreement.

         Section 15.8      Administrative Agent in Its Individual Capacity.
The institution at the time acting as the Administrative Agent and its
Affiliates may make loans to, accept deposits from and generally engage in any
kind of business with the Borrowers and their respective Subsidiaries as if it
were not the Administrative Agent hereunder. With respect to its Commitment,
the Loans made or renewed by it and any Note issued to it and any Letter of
Credit issued by it, such institution shall have and may exercise the same
rights and powers under this Agreement and the other Loan Documents and shall
be subject to the same obligations and liabilities as and to the extent set
forth herein and in the other Loan Documents for any other Lender. The terms
"Lenders" and "Required Lenders" or any other term shall, unless the context
clearly otherwise indicates, include such institution in its individual
capacity as a Lender or one of the Required Lenders.

         Section 15.9      Successor Administrative Agent.

         (a)      The Administrative Agent may resign as Administrative Agent
upon thirty (30) days' notice to the Lenders; PROVIDED, HOWEVER that such
resignation shall not take effect until a successor agent has been appointed.
If the Administrative Agent shall resign as Administrative Agent under this
Agreement, then the Required Lenders shall appoint from among the Lenders a
successor agent for the Lenders which successor agent shall be approved by the
Borrowers, so

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long as no Default or Event of Default has occurred and is continuing (which
approval shall not be unreasonably withheld), whereupon such successor agent
shall succeed to the rights, powers and duties of the Administrative Agent, and
the term "Administrative Agent" shall mean such successor agent effective upon
its appointment, and the former Administrative Agent's rights, powers and
duties as Administrative Agent shall be terminated, without any other or
further act or deed on the part of such former Administrative Agent or any of
the parties to this Agreement or any holders of the Notes. If the Required
Lenders have failed to appoint a successor Administrative Agent within 30 days
of the resignation notice given by the Administrative Agent as provided above,
then the Administrative Agent shall be entitled to appoint a successor agent
from among the Lenders. After any Administrative Agent's resignation hereunder
as Administrative Agent, it shall continue to be responsible for (in accordance
with the terms hereof), and the provisions of SECTION 15.7 shall inure to its
benefit as to, any actions taken or omitted to be taken by it while it was
Administrative Agent under this Agreement.

         (b)      It is intended that there shall be no violation of any
Applicable Law denying or restricting the right of financial institutions to
transact business as agent in any jurisdiction. It is recognized that, in case
of litigation under any of the Loan Documents, or in case the Administrative
Agent deems that by reason of present or future laws of any jurisdiction the
Administrative Agent might be prohibited from or restricted in exercising any
of the powers, rights or remedies granted to the Administrative Agent or the
Lenders hereunder or under any of the Loan Documents or from holding title to
or a Lien upon any Collateral or from taking any other action which may be
necessary or desirable hereunder or under any of the Loan Documents, the
Administrative Agent may appoint an additional individual or institution as a
separate collateral agent or co-collateral agent which is not so prohibited
from or restricted in taking any of such actions or exercising any of such
powers, rights or remedies. If the Administrative Agent shall appoint an
additional individual or institution as a separate collateral agent or
co-collateral agent as provided above, each and every remedy, power, right,
claim, demand or cause of action intended by any of the Loan Documents to be
exercised by or vested in or conveyed to the Administrative Agent with respect
thereto shall be exercisable by and vested in such separate collateral agent or
co-collateral agent, but only to the extent necessary to enable such separate
collateral agent or co-collateral agent to exercise such powers, rights and
remedies, and every covenant and obligation necessary to the exercise thereof
by such separate collateral agent or co-collateral agent shall run to and be
enforceable by either of them. Should any instrument from the Lenders be
required by the separate collateral agent or co-collateral agent so appointed
by Administrative Agent in order more fully and certainly to vest in and
confirm to him or it such rights, powers, duties and obligations, including
without limitation indemnification of such collateral agent or co-collateral
agent, any and all of such instruments shall, on request, be executed,
acknowledged and delivered by the Lenders. In case any separate collateral
agent or co-collateral agent, or a successor to either, shall die, become
incapable of acting, or resign, all the estates, properties, rights, powers,
duties and obligations of such separate collateral agent or co-collateral
agent, so far as permitted by Applicable Law, shall vest in and be exercised by
the Administrative Agent until the appointment of a new collateral agent or
successor to such separate collateral agent or co-collateral agent.

         Section 15.10     Other Agents. For avoidance of doubt, it is
expressly acknowledged and agreed by the Administrative Agent and each Lender
for the benefit of each of the Syndication Agents, Documentation Agents and
Co-Agents that, other than any rights or obligations

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explicitly reserved to or imposed upon any Syndication Agent, Documentation
Agent or Co-Agent hereunder, none of the Syndication Agents, Documentation
Agents or Co-Agents, in such capacities, has any rights or obligations
hereunder nor shall any of the Syndication Agents, Documentation Agents, or
Co-Agents, in such capacities, be responsible or accountable to any other party
hereto for any action or failure to act hereunder, other than in connection
with such explicitly reserved rights or such obligations (if any) and then only
for claims, damages, losses (other than consequential losses) and other
liabilities arising out of such Person's own gross negligence or willful
misconduct.

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                                  ARTICLE 16

                                 MISCELLANEOUS

         Section 16.1      Notices.

         (a) Method of Communication. Except as specifically provided in this
Agreement or in any of the Loan Documents, all notices and the communications
hereunder and thereunder shall be in writing or by telephone, subsequently
confirmed in writing. Notices in writing shall be delivered personally or sent
by certified or registered mail, postage pre-paid, or by overnight courier,
telex or facsimile transmission and shall be deemed received in the case of
personal delivery, when delivered, in the case of mailing, when receipted for,
in the case of overnight delivery, on the next Business Day after delivery to
the courier, and in the case of telex and facsimile transmission, upon
transmittal, PROVIDED that in the case of notices to the Administrative Agent,
notice shall be deemed to have been given only when such notice is actually
received by the Administrative Agent. A telephonic notice to the Administrative
Agent, as understood by the Administrative Agent, will be deemed to be the
controlling and proper notice in the event of a discrepancy with or failure to
receive a confirming written notice.

         (b) Addresses for Notices. Notices to any party shall be sent to it at
the following addresses, or any other address of which all the other parties
are notified in writing by such first party:

         If to the Borrowers:       c/o Russell Corporation
                                    3330 Cumberland Boulevard
                                    Suite 800
                                    Atlanta, Georgia 30339
                                    Attn:  Treasurer
                                    Facsimile No.:  (678) 742-8514

         with a copy to:            Alston & Bird LLP
                                    1201 West Peachtree Street
                                    Atlanta, Georgia 30309-3424
                                    Attn:  Richard W. Grice, Esq.
                                    Facsimile No.:  (404) 881-4777

         If to the                  Fleet Capital Corporation
         Administrative Agent:      300 Galleria Parkway, N.W.
                                    Suite 800
                                    Atlanta, Georgia 30339
                                    Attn:  Loan Administration Manager
                                    Facsimile No.:  (770) 859-2437

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<PAGE>

         with a copy to:            Hunton & Williams
                                    600 Peachtree Street, N.E., Suite 4100
                                    Atlanta, Georgia 30308
                                    Attn:  Jeffrey Handler, Esq.
                                    Facsimile No.:  (404) 888-4190

         If to a Lender:            At the address of such Lender
                                    set forth on the signature pages hereof or
                                    in an Assignment and Acceptance.

         (c) Agent's Office. The Administrative Agent hereby designates its
office located at 300 Galleria Parkway, N.W., Suite 800, Atlanta, Georgia
30339, or any subsequent office which shall have been specified for such
purpose by written notice to the Borrowers, as the office to which payments due
are to be made and at which Loans will be disbursed.

         Section 16.2 Expenses. The Borrowers jointly and severally agree to
pay or reimburse on demand all costs and expenses (1) incurred by the
Administrative Agent or the Arranger in connection with the syndication of the
Revolving Credit Facility and the Term Loan Facility, whether prior to or on or
after the Effective Date and including reasonable fees and disbursements of
counsel, (2) incurred by the Administrative Agent, including, without
limitation, the reasonable fees and disbursements of counsel, in connection
with:

         (a) the negotiation, preparation, execution, delivery, administration,
enforcement and termination of this Agreement and each of the other Loan
Documents, whenever the same shall be executed and delivered, including,
without limitation

                  (i)      reasonable out-of-pocket costs and expenses incurred
         in connection with the administration and interpretation of this
         Agreement and the other Loan Documents;

                  (ii)     the reasonable costs and expenses of appraisals of
         the Collateral;

                  (iii)    the reasonable costs and expenses of lien and title
         searches and title insurance;

                  (iv)     the reasonable costs and expenses of environmental
         reports with respect to the Real Estate; and

                  (v) taxes, fees and other charges for recording the
         Mortgages, filing the Financing Statements and continuations and the
         costs and expenses of taking other actions to perfect, protect, and
         continue the Security Interest;

         (b) filing continuations with respect to Financing Statements and the
costs and expenses of taking other reasonable actions to perfect, protect, and
continue the Security Interest that the Borrowers do not take, after demand by
the Administrative Agent;

         (c)      the preparation, execution and delivery of any waiver,
amendment, supplement or consent by the Administrative Agent and the Lenders
relating to this Agreement or any of the Loan Documents;

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<PAGE>

         (d)      sums paid or incurred to pay any amount or take any action
required of the Borrowers under the Loan Documents that the Borrowers fail to
pay or take;

         (e) costs of inspections and verifications of the Collateral,
including, without limitation, standard per diem fees charged by the
Administrative Agent ($850 per day as of the Agreement Date) and charges for
travel, lodging, and meals for inspections of the Collateral and of the
Borrowers' operations and books and records;

         (f) consulting with one or more Persons, including appraisers,
accountants and lawyers, concerning the value of any Collateral for the Secured
Obligations or related to the nature, scope or value of any right or remedy of
the Administrative Agent or any Lender hereunder or under any of the Loan
Documents, including any review of factual matters in connection therewith,
which expenses shall include the fees and disbursements of such Persons;

         (g)      standard costs and expenses of forwarding loan proceeds and
collecting checks and other items of payment; and

         (h)      costs and expenses of preserving and protecting the
Collateral; or

         (i) incurred by the Administrative Agent or any Lender after an Event
of Default has occurred and is continuing, in connection with costs and
expenses paid or incurred to obtain payment of the Secured Obligations, enforce
the Security Interest, sell or otherwise realize upon the Collateral, and
otherwise enforce the provisions of the Loan Documents, or to prosecute or
defend any claim in any way arising out of, related to or connected with, this
Agreement or any of the Loan Documents, which expenses shall include the
reasonable fees and disbursements of counsel and of experts and other
consultants retained by the Administrative Agent or any Lender.

The foregoing shall not be construed to limit any other provisions of the Loan
Documents regarding costs and expenses to be paid by the Borrowers. Each
Borrower hereby authorizes the Administrative Agent and the Lenders to debit
such Borrower's Loan Account (by increasing the principal amount of the
Revolving Credit Loans) in the amount of any such costs and expenses owed by
such Borrower when due.

         Section 16.3 Stamp and Other Taxes. The Borrowers will pay any and all
stamp, registration, recordation and similar taxes, fees or charges and shall
indemnify the Administrative Agent and the Lenders against any and all
liabilities with respect to or resulting from any delay in the payment or
omission to pay any such taxes, fees or charges, which may be payable or
determined to be payable in connection with the execution, delivery,
performance or enforcement of this Agreement and any of the Loan Documents or
the perfection of any rights or security interest thereunder, including,
without limitation, the Security Interest.

         Section 16.4 Setoff. In addition to any rights now or hereafter
granted under Applicable Law and not by way of limitation of any such rights,
during the continuance of any Event of Default, each Lender, any participant
with such Lender in the Loans and each Affiliate of each Lender are hereby
authorized by each Borrower at any time or from time to time, without notice to
any Borrower or to any other Person, any such notice being hereby expressly
waived, to set off and to appropriate and to apply any and all deposits
(general or special, including, but not limited to, Indebtedness evidenced by
certificates of deposit, whether matured or unmatured) and

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any other Indebtedness at any time held or owing by any Lender or any Affiliate
of any Lender or any participant to or for the credit or the account of any
Borrower against and on account of the Secured Obligations irrespective or
whether or not

         (a)      the Administrative Agent or such Lender shall have made any
demand under this Agreement or any of the Loan Documents, or

         (b)      the Administrative Agent or such Lender shall have declared
any or all of the Secured Obligations to be due and payable as permitted by
SECTION 13.2 and although such Secured Obligations shall be contingent or
unmatured.

         Section 16.5 Litigation. EACH BORROWER, THE ADMINISTRATIVE AGENT AND
EACH LENDER HEREBY KNOWINGLY, INTENTIONALLY AND VOLUNTARILY WAIVE TRIAL BY JURY
IN ANY ACTION OR PROCEEDING OF ANY KIND OR NATURE IN ANY COURT IN WHICH AN
ACTION MAY BE COMMENCED BY OR AGAINST A BORROWER, THE ADMINISTRATIVE AGENT OR
SUCH LENDER ARISING OUT OF THIS AGREEMENT, THE COLLATERAL OR ANY ASSIGNMENT
THEREOF OR BY REASON OF ANY OTHER CAUSE OR DISPUTE WHATSOEVER BETWEEN A
BORROWER AND THE ADMINISTRATIVE AGENT OR ANY LENDER OF ANY KIND OR NATURE. EACH
BORROWER, THE ADMINISTRATIVE AGENT AND EACH LENDER HEREBY AGREES THAT THE
FEDERAL COURT OF THE NORTHERN DISTRICT OF GEORGIA OR, AT THE OPTION OF THE
ADMINISTRATIVE AGENT OR ANY LENDER, ANY COURT IN WHICH THE ADMINISTRATIVE AGENT
OR SUCH LENDER SHALL INITIATE LEGAL OR EQUITABLE PROCEEDINGS AND WHICH HAS
SUBJECT MATTER JURISDICTION OVER THE MATTER IN CONTROVERSY, SHALL HAVE
NONEXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN
ANY BORROWER AND THE ADMINISTRATIVE AGENT OR SUCH LENDER, PERTAINING DIRECTLY
OR INDIRECTLY TO THIS AGREEMENT OR THE LOAN DOCUMENTS OR TO ANY MATTER ARISING
THEREFROM. EACH BORROWER EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH
JURISDICTION IN ANY ACTION OR PROCEEDING COMMENCED IN SUCH COURTS, HEREBY
WAIVING PERSONAL SERVICE OF THE SUMMONS AND COMPLAINT, OR OTHER PROCESS OR
PAPERS ISSUED THEREIN AND AGREEING THAT SERVICE OF SUCH SUMMONS AND COMPLAINT
OR OTHER PROCESS OR PAPERS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL
ADDRESSED TO SUCH BORROWER AT THE ADDRESS OF SUCH BORROWER SET FORTH IN SECTION
16.1. SHOULD SUCH BORROWER FAIL TO APPEAR OR ANSWER ANY SUMMONS, COMPLAINT,
PROCESS OR PAPERS SO SERVED WITHIN THIRTY (30) DAYS AFTER THE MAILING THEREOF,
IT SHALL BE DEEMED IN DEFAULT AND AN ORDER AND/OR JUDGMENT MAY BE ENTERED
AGAINST IT AS DEMANDED OR PRAYED FOR IN SUCH SUMMONS, COMPLAINT, PROCESS OR
PAPERS. THE NONEXCLUSIVE CHOICE OF FORUM SET FORTH IN THIS SECTION SHALL NOT BE
DEEMED TO PRECLUDE THE ENFORCEMENT OF ANY JUDGMENT OBTAINED IN SUCH FORUM OR
THE TAKING OF ANY ACTION UNDER THIS AGREEMENT TO ENFORCE SAME IN ANY
APPROPRIATE JURISDICTION.

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         Section 16.6 Waiver of Rights. EACH BORROWER HEREBY KNOWINGLY,
INTENTIONALLY AND VOLUNTARILY WAIVES ALL RIGHTS WHICH THE BORROWER HAS UNDER
CHAPTER 14 OF TITLE 44 OF THE OFFICIAL CODE OF GEORGIA OR UNDER ANY SIMILAR
PROVISION OF APPLICABLE LAW TO NOTICE AND TO A JUDICIAL HEARING PRIOR TO THE
ISSUANCE OF A WRIT OF POSSESSION ENTITLING THE ADMINISTRATIVE AGENT, OR ANY
LENDER, OR THE SUCCESSORS AND ASSIGNS OF THE ADMINISTRATIVE AGENT, SUCH
CO-AGENT OR SUCH LENDER TO POSSESSION OF THE COLLATERAL UPON EVENT OF DEFAULT.
WITHOUT LIMITING THE GENERALITY OF THE FOREGOING AND WITHOUT LIMITING ANY OTHER
RIGHT WHICH THE ADMINISTRATIVE AGENT, OR THE LENDERS MAY HAVE, EACH BORROWER
CONSENTS THAT IF THE ADMINISTRATIVE AGENT, OR ANY LENDER FILES A PETITION FOR
AN IMMEDIATE WRIT OF POSSESSION IN COMPLIANCE WITH SECTIONS 44-14-261 AND
44-14-262 OF THE OFFICIAL CODE OF GEORGIA OR UNDER ANY SIMILAR PROVISION OF
APPLICABLE LAW, AND THIS WAIVER OR A COPY HEREOF IS ALLEGED IN SUCH PETITION
AND ATTACHED THERETO, THE COURT BEFORE WHICH SUCH PETITION IS FILED MAY
DISPENSE WITH ALL RIGHTS AND PROCEDURES HEREIN WAIVED AND MAY ISSUE FORTHWITH
AN IMMEDIATE WRIT OF POSSESSION IN ACCORDANCE WITH CHAPTER 14 OF TITLE 44 OF
THE OFFICIAL CODE OF GEORGIA OR IN ACCORDANCE WITH ANY SIMILAR PROVISION OF
APPLICABLE LAW, WITHOUT THE NECESSITY OF AN ACCOMPANYING BOND AS OTHERWISE
REQUIRED BY SECTION 44-14-263 OF THE OFFICIAL CODE OF GEORGIA OR BY ANY SIMILAR
PROVISION UNDER APPLICABLE LAW. EACH BORROWER HEREBY ACKNOWLEDGES THAT IT HAS
READ AND FULLY UNDERSTANDS THE TERMS OF THIS WAIVER AND THE EFFECT HEREOF.

         Section 16.7 Consent to Advertising and Publicity. With the prior
written consent of the Borrowers, which consents shall not be unreasonably
withheld, the Administrative Agent, on behalf of the Lenders, may issue and
disseminate to the public information describing the credit accommodation
entered into pursuant to this Agreement, including the name and address of the
Borrowers, the amount, interest rate, maturity, collateral for and a general
description of the credit facilities provided hereunder and of the Borrowers'
business.

         Section 16.8 Reversal of Payments. The Administrative Agent and each
Lender shall have the continuing and exclusive right to apply, reverse and
re-apply any and all payments to any portion of the Secured Obligations in a
manner consistent with the terms of this Agreement. To the extent a Borrower
makes a payment or payments to the Administrative Agent, for the account of the
Lenders, or any Lender receives any payment or proceeds of the Collateral for
the Borrowers' benefit, which payment(s) or proceeds or any part thereof are
subsequently invalidated, declared to be fraudulent or preferential, set aside
and/or required to be repaid to a trustee, receiver or any other party under
any bankruptcy law, state or federal law, common law or equitable cause, then,
to the extent of such payment or proceeds received, the Secured Obligations or
part thereof intended to be satisfied shall be revived and continued in full
force and effect, as if such payment or proceeds had not been received by the
Administrative Agent or such Lender.

                                      135
<PAGE>

         Section 16.9 Injunctive Relief. Each Borrower recognizes that, in the
event the Borrowers fail to perform, observe or discharge any of their
obligations or liabilities under this Agreement, any remedy at law may prove to
be inadequate relief to the Administrative Agent and the Lenders; therefore,
each Borrower agrees that if any Event of Default shall have occurred and be
continuing, the Administrative Agent and the Lenders, if the Administrative
Agent or any Lender so requests, shall be entitled to temporary and permanent
injunctive relief without the necessity of proving actual damages.

         Section 16.10 Accounting Matters. All financial and accounting
calculations, measurements and computations made for any purpose relating to
this Agreement, including, without limitation, all computations utilized by the
Borrowers to determine whether it is in compliance with any covenant contained
herein, shall, unless this Agreement otherwise provides or unless Required
Lenders shall otherwise consent in writing, be performed in accordance with
GAAP.

         Section 16.11     Amendments.

         (a) Except as set forth in SUBSECTION (b) below, any term, covenant,
agreement or condition of this Agreement or any of the other Loan Documents may
be amended or waived, and any departure therefrom may be consented to by the
Required Lenders, if, but only if, such amendment, waiver or consent is in
writing signed by the Required Lenders and, in the case of an amendment (other
than an amendment described in SECTION 16.11(d)), by the Borrowers, PROVIDED
that no such amendment, unless consented to by (i) the Administrative Agent,
shall alter or affect the rights or responsibilities of the Administrative
Agent, (ii) each Issuing Bank, shall alter or affect the rights or
responsibilities of such Issuing Bank in respect of outstanding Letters of
Credit, or (iii) the Swingline Lender, shall alter or affect the rights or
responsibilities of the Swingline Lender, and in any such event, the failure to
observe, perform or discharge any such term, covenant, agreement or condition
(whether such amendment is executed or such waiver or consent is given before
or after such failure) shall not be construed as a breach of such term,
covenant, agreement or condition or as a Default or an Event of Default. Unless
otherwise specified in such waiver or consent, a waiver or consent given
hereunder shall be effective only in the specific instance and for the specific
purpose for which given. The Administrative Agent and the Lenders may require
and charge a fee in connection therewith and consideration of any waiver or
amendment in such amount as shall be determined by the Administrative Agent and
the Required Lenders in their discretion.

         (b)      (1) Without the prior unanimous written consent of the
Lenders,

                  (i) no amendment, consent or waiver shall (A) increase the
         amount or extend the time of the obligation of any Lender to make
         Loans or increase any existing Facility or extend or create any
         additional Facility or (B) extend the originally scheduled time or
         times of payment of the principal of any Loan or (C) alter (other than
         to accelerate or make more frequent) the time or times of payment of
         interest on any Loan or of any fees payable for the account of the
         Lenders or (D) decrease the amount of the principal of any Loan or the
         rate of interest thereon or (E) decrease the amount of any commitment
         fee or other fee payable hereunder for the account of the Lenders or
         (F) permit any

                                      136
<PAGE>

         subordination of the principal of or interest on any Loan or (G)
         permit the amendment of SECTION 5.10(f),

                  (ii) neither any Borrower nor any Guarantor shall be released
         from its liability for the Secured Obligations (except any Guarantor
         that is dissolved or liquidated or merged into or consolidated with
         another Person other than in a manner prohibited hereunder) nor shall
         the Security Interest in the Collateral be subordinated (other than to
         Permitted Purchase Money Liens or the interest in Equipment leased by
         any Loan Party of the lessor thereof),

                  (iii) except to the extent expressly provided in SECTION 5.9,
         the definition "Borrowing Base" and the defined terms used therein
         shall not be amended,

                  (iv)     none of the provisions of this SECTION 16.11, the
         definitions "Lenders" or "Required Lenders", or the provisions of
         ARTICLE 13 shall be amended, and

                  (v) neither the Administrative Agent nor any Lender shall
         consent to any amendment to or waiver of the amortization, deferral or
         subordination provisions of any instrument or agreement evidencing or
         relating to obligations of a Borrower that are expressly subordinate
         to any of the Secured Obligations if such amendment or waiver would be
         adverse to the Lenders in their capacities as Lenders hereunder; and

                  (2) Without the prior written consent of the Lenders whose
Commitment Percentages are equal to 75% or more, no Collateral shall be
released or substituted other than as expressly permitted pursuant to SECTIONS
8.3, 9.7 and 12.7;

PROVIDED, HOWEVER, that anything herein to the contrary notwithstanding, the
Required Lenders shall have the right to waive any Default or Event of Default
and the consequences hereunder of such Default or Event of Default provided
only that such Default or Event of Default does not arise under SECTION 13.1(g)
or (h) or out of a breach of or failure to perform or observe any term,
covenant or condition of this Agreement or any other Loan Document (other than
the provisions of ARTICLE 13 of this Agreement) the amendment of which requires
the unanimous or "super majority" consent of the Lenders. The Required Lenders
shall have the right, with respect to any Default or Event of Default that may
be waived by them, to enter into an agreement with the Borrower or the
Guarantor providing for the forbearance from the exercise of any remedies
provided hereunder or under the other Loan Documents without thereby waiving
any such Default or Event of Default.

         (c) The making of Loans hereunder by the Lenders during the existence
of a Default or Event of Default shall not be deemed to constitute a waiver of
such Default or Event of Default.

         (d) Notwithstanding any provision of this Agreement or the other Loan
Documents to the contrary, no consent, written or otherwise, of any Borrower
shall be necessary or required in connection with any amendment to ARTICLE 15
or Section 5.10, and any amendment to such provisions may be effected solely by
and among the Administrative Agent and the Lenders, PROVIDED that no such
amendment shall impose any obligation on the Borrowers.

                                      137
<PAGE>

         Section 16.12     Assignment. All the provisions of this Agreement
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns, except that no Borrower may assign or
transfer any of its rights under this Agreement.

         Section 16.13     Performance of Borrowers' Duties.

         (a) Each Borrower's obligations under this Agreement and each of the
Loan Documents shall be performed by the Borrowers at their sole cost and
expense.

         (b) If a Borrower shall fail to do any act or thing which it has
covenanted to do under this Agreement or any of the Loan Documents, the
Administrative Agent, on behalf of the Lenders, may (but shall not be obligated
to) do the same or cause it to be done either in the name of the Administrative
Agent or the Lenders or in the name and on behalf of the Borrowers, and each
Borrower hereby irrevocably authorizes the Administrative Agent so to act.

         Section 16.14     Indemnification. Each Borrower agrees, jointly and
severally, to reimburse the Administrative Agent and the Lenders for all costs
and expenses, including reasonable counsel fees and disbursements, incurred,
and to indemnify and hold the Administrative Agent and the Lenders harmless
from and against all losses suffered by, the Administrative Agent or any Lender
in connection with

         (a)      the exercise by the Administrative Agent or any Lender of any
right or remedy granted to it under this Agreement or any of the Loan
Documents,

         (b)      any claim, and the prosecution or defense thereof, arising
out of or in any way connected with this Agreement or any of the Loan
Documents, and

         (c)      the collection or enforcement of the Secured Obligations or
any of them,

other than such costs, expenses and liabilities arising out of the indemnified
Person's gross negligence or willful misconduct; PROVIDED that the Borrowers
shall not be liable for the fees and expenses of more than one separate law
firm of counsel (in addition to any local counsel in the jurisdiction in which
any identified matter is brought) representing the Administrative Agent or the
Lenders who are parties to such proceedings as to any indemnified matter unless
such counsel for such indemnified parties determines in good faith that there
is a conflict which requires separate representation for one or more of the
indemnified parties. The Borrower shall be liable under this Agreement for any
settlement made by any indemnified party with the Borrowers' written consent
(which consent shall not be unreasonably withheld), and the Borrowers agree to
indemnify and hold harmless any indemnified party from and against any loss or
liability by reason of the settlement of any claim or action with the consent
of the Borrowers.

         Section 16.15     All Powers Coupled with Interest. All powers of
attorney and other authorizations granted to the Administrative Agent and the
Lenders and any Persons designated by the Administrative Agent or the Lenders
pursuant to any provisions of this Agreement or any of the Loan Documents shall
be deemed coupled with an interest and shall be irrevocable so long as any of
the Secured Obligations remain unpaid or unsatisfied.

                                      138
<PAGE>

         Section 16.16     Survival. Notwithstanding any termination of this
Agreement,

         (a) until all Secured Obligations have been irrevocably paid in full
or otherwise satisfied, the Administrative Agent, for the benefit of the
Lenders, shall retain its Security Interest and shall retain all rights under
this Agreement and each of the Security Documents with respect to such
Collateral as fully as though this Agreement had not been terminated,

         (b) the indemnities to which the Administrative Agent and the Lenders
are entitled under the provisions of this ARTICLE 16 and any other provision of
this Agreement and the Loan Documents shall continue in full force and effect
and shall protect the Administrative Agent and the Lenders against events
arising after such termination as well as before, and

         (c) in connection with the termination of this Agreement and the
release and termination of the Security Interests, the Administrative Agent, on
behalf of itself as agent and the Lenders, may require such assurances and
indemnities as it shall reasonably deem necessary or appropriate to protect the
Administrative Agent and the Lenders against loss on account of such release
and termination, including, without limitation, with respect to credits
previously applied to the Secured Obligations that may subsequently be reversed
or revoked.

         Section 16.17     Titles and Captions. Titles and captions of Articles,
Sections and subsections in this Agreement are for convenience only, and
neither limit nor amplify the provisions of this Agreement.

         Section 16.18     Severability of Provisions. Any provision of this
Agreement or any Loan Document which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective only to the extent
of such prohibition or unenforceability without invalidating the remainder of
such provision or the remaining provisions hereof or thereof or affecting the
validity or enforceability of such provision in any other jurisdiction.

         Section 16.19     Governing Law. This Agreement, the Notes and the
Security Documents (except to the extent otherwise expressly set forth therein)
shall be deemed to have been made in the State of Georgia and the validity,
construction, interpretation and enforcement hereof and thereof and the rights
of the parties hereto and thereto shall be determined under, governed by and
construed in accordance with the internal laws of the State of Georgia, without
regard to principles of conflicts of law, except that the waiver contained in
the first sentence of SECTION 16.5 shall be construed in accordance with and
governed by the internal laws of the jurisdiction in which any such action or
proceeding is commenced.

         Section 16.20     Counterparts. This Agreement may be executed in any
number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and shall be binding upon all parties, their successors and assigns, and all of
which taken together shall constitute one and the same agreement.

         Section 16.21     Reproduction of Documents. This Agreement, each of
the Loan Documents and all documents relating thereto, including, without
limitation, (a) consents, waivers and modifications that may hereafter be
executed, (b) documents received by the Administrative Agent or any Lender, and
(c) financial statements, certificates and other information previously or
hereafter furnished to the Administrative Agent or any Lender, may be

                                      139
<PAGE>

reproduced by the Administrative Agent or such Lender by any photographic,
photostatic, microfilm, microcard, miniature photographic or other similar
process and such Person may destroy any original document so produced. Each
party hereto stipulates that, to the extent permitted by Applicable Law, any
such reproduction shall be as admissible in evidence as the original itself in
any judicial or administrative proceeding (whether or not the original shall be
in existence and whether or not such reproduction was made by the
Administrative Agent or such Lender in the regular course of business), and any
enlargement, facsimile or further reproduction of such reproduction shall
likewise be admissible in evidence.

         Section 16.22     Term of Agreement. This Agreement shall remain in
effect from the Agreement Date through the Termination Date and thereafter until
all Secured Obligations shall have been irrevocably paid and satisfied in full.
No termination of this Agreement shall affect the rights and obligations of the
parties hereto arising prior to such termination.

         Section 16.23     Pro-Rata Participation.

         (a) Each Lender agrees that if, as a result of the exercise of a right
of setoff, banker's lien or counterclaim or other similar right or the receipt
of a secured claim it receives any payment in respect of the Secured
Obligations, it shall promptly notify the Administrative Agent thereof (and the
Administrative Agent shall promptly notify the other Lenders). If, as a result
of such payment, such Lender receives a greater percentage of the Secured
Obligations owed to it under this Agreement than the percentage received by any
other Lender, such Lender shall purchase a participation (which it shall be
deemed to have purchased simultaneously upon the receipt of such payment) in
the Secured Obligations then held by such other Lenders so that all such
recoveries of principal and interest with respect to all Secured Obligations
owed to each Lender shall be pro rata on the basis of its respective amount of
the Secured Obligations owed to all Lenders, PROVIDED that if all or part of
such proportionately greater payment received by such purchasing Lender is
thereafter recovered by or on behalf of any Borrower from such Lender, such
purchase shall be rescinded and the purchase price paid for such participation
shall be returned to such Lender to the extent of such recovery, but without
interest.

         (b) Each Lender which receives such a secured claim shall, to the
extent practicable, exercise its rights in respect of such secured claim in a
manner consistent with the rights of the Lenders entitled under this SECTION
16.23 to share in the benefits of any recovery on such secured claim.

         (c) Each Borrower expressly consents to the foregoing arrangements and
agrees that any holder of a participation in any Secured Obligation so
purchased or otherwise acquired of which a Borrower has received notice may
exercise any and all rights of banker's lien, set-off or counterclaim with
respect to any and all monies owing by the Borrowers to such holder as fully as
if such holder were a holder of such Secured Obligation in the amount of the
participation held by such holder.

         Section 16.24     Confidentiality. Neither the Administrative Agent
nor any Lender shall, except with the prior written consent of Russell,
disclose any Confidential Information to any Person, other than (a) to
the Administrative Agent's or such Lender's Affiliates and their officers,
directors, employees, agents and advisors that are involved in the
administration or

                                      140
<PAGE>

monitoring of this Agreement and the credit facilities extended hereunder, (b)
to actual or prospective Eligible Assignees and participants, and then only on
a confidential basis, (c) as required by any law, rule or regulation or
judicial process, (d) as requested or required by any state, federal or foreign
authority or examiner regulating such Lender and (e) to any rating agency when
required by it, PROVIDED that, prior to any such disclosure the Administrative
Agent shall make all reasonable efforts to notify Russell and such rating
agency shall undertake to preserve the confidentiality of any Confidential
Information relating to Russell and its Subsidiaries received by it from the
Administrative Agent or any Lender. For purposes of this SECTION 16.24,
"Confidential Information" means information that any Loan Party furnishes to
the Administrative Agent or any Lender in a writing designated as
"confidential," but does not include any such information that is or becomes
generally available to the public other than as a result of a breach by the
Administrative Agent or such Lender of its obligations hereunder or that is or
becomes available to the Administrative Agent or such Lender from a source
other than the Loan Parties that is not, to the best of the Administrative
Agent's or such Lender's knowledge, acting in violation of a confidentiality
agreement with a Loan Party.

                                      141
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed by their duly authorized officers in several counterparts all as of
the day and year first written above.

[Corporate Seal]                             BORROWERS:

Attest:                                      RUSSELL CORPORATION

By:                                          By:
   ----------------------------------           -------------------------------
   Steve R. Forehand                            Robert D. Martin
   Assistant Secretary                          Senior Vice President and
                                                Chief Financial Officer

[Corporate Seal]

Attest:                                      CROSS CREEK HOLDINGS, INC.

By:                                          By:
   ----------------------------------           -------------------------------
   Steve R. Forehand                            Christopher M. Champion
   Secretary                                    Vice President

[Corporate Seal]

Attest:                                      CROSS CREEK APPAREL, LLC

By:                                          By:
   ----------------------------------           -------------------------------
   Christopher M. Champion                      Steve R. Forehand
   Secretary                                    Vice President

[Corporate Seal]

Attest:                                      JERZEES APPAREL, LLC

By:                                          By:
   ----------------------------------           -------------------------------
   Christopher M. Champion                      Steve R. Forehand
   Manager                                      Manager

                                      142
<PAGE>

[Corporate Seal]

Attest:                                      MOSSY OAK APPAREL COMPANY

By:                                          By:
   ----------------------------------           -------------------------------
   Christopher M. Champion                      Steve R. Forehand
   Secretary                                    Vice President

[Corporate Seal]

Attest:                                      RUSSELL FINANCIAL SERVICES, INC.

By:                                          By:
   ----------------------------------           -------------------------------
   Christopher M. Champion                      Robert D. Martin
   Secretary                                    Vice President

[Corporate Seal]

Attest:                                      DESOTO MILLS, INC.

By:                                          By:
   ----------------------------------           -------------------------------
   Christopher M. Champion                      Steve R. Forehand
   Secretary                                    Vice President

[Corporate Seal]

Attest:                                      RUSSELL ASSET MANAGEMENT, INC.

By:                                          By:
   ----------------------------------           -------------------------------
   Christopher M. Champion                      Steve R. Forehand
   Assistant Secretary                          President

                                      143
<PAGE>

[Corporate Seal]

Attest:                                      RUSSELL APPAREL LLC

By:                                          By:
   ----------------------------------           -------------------------------
   Christopher M. Champion                      Steve R. Forehand
   Manager                                      Manager

[Corporate Seal]

Attest:                                      RINTEL PROPERTIES, INC.

By:                                          By:
   ----------------------------------           -------------------------------
   Christopher M. Champion                      Floyd G. Hoffman
   Assistant Secretary                          Vice President

[Corporate Seal]

Attest:                                      RUSSELL YARN, LLC

By:                                          By:
   ----------------------------------           -------------------------------
   Christopher M. Champion                      Floyd G. Hoffman
   Secretary                                    Senior Vice President,
                                                Russell Corporation

                                      144
<PAGE>

                                      ADMINISTRATIVE AGENT AND LENDER:

                                      FLEET CAPITAL CORPORATION

                                      By:
                                         --------------------------------------
                                         H. Glenn Little
                                         Senior Vice President

                                      Address:    300 Galleria Parkway, N. W.
                                                  Suite 800
                                                  Atlanta, Georgia  30339
                                         Attn:    H. Glenn Little
                                                  Facsimile No.: (770) 859-2483

                                      145
<PAGE>

                                    ANNEX A

                                  COMMITMENTS

<TABLE>
<CAPTION>
             LENDER                                                COMMITMENT
------------------------------------          -------------------------------------------------
                                              REVOLVING CREDIT                        TERM LOAN
                                              ----------------                        ---------

<S>                                           <C>                                   <C>
    Fleet Capital Corporation                   $ 55,384,500.00                     $ 4,615,375.00
       JPMorgan Chase Bank                      $ 27,692,400.00                     $ 2,307,700.00
          SunTrust Bank                         $ 27,692,400.00                     $ 2,307,700.00
The CIT Group/Business Credit, Inc.             $ 27,692,400.00                     $ 2,307,700.00
       Bank of America, N.A.                    $ 23,076,900.00                     $ 1,923,075.00
Wachovia Bank, National Association             $ 23,076,900.00                     $ 1,923,075.00
General Electric Capital Corporation            $ 23,076,900.00                     $ 1,923,075.00
   Foothill Capital Corporation                 $ 18,461,400.00                     $ 1,538,450.00
     GMAC Business Credit, LLC                  $ 18,461,400.00                     $ 1,538,450.00
 Transamerica Business Capital Corp.            $ 15,692,400.00                     $ 1,307,700.00
          AmSouth Bank                          $ 15,692,400.00                     $ 1,307,700.00
          Comerica Bank                         $ 11,076,900.00                     $   923,075.00
       The Provident Bank                       $  9,230,700.00                     $   769,225.00
           Aliant Bank                          $  3,692,400.00                     $   307,700.00
                                                ---------------                     --------------
               TOTAL                            $300,000,000.00                     $25,000,000.00
                                                ===============                     ==============
</TABLE>

<PAGE>

                                    ANNEX B

                                 PRICING MATRIX

<TABLE>
<CAPTION>
                                          REVOLVING CREDIT LOANS                  TERM LOANS
                                         -------------------------          ----------------------
                                                                                                          UNUSED
               FIXED CHARGE                                                                             COMMITMENT
TIER          COVERAGE RATIO             LIBOR           BASE RATE          LIBOR        BASE RATE         FEE
----          --------------             -----           ---------          -----        ---------      ----------

<S>           <C>                        <C>             <C>                <C>          <C>            <C>
Tier V          >2.50:1                  1.75%             0.25%            2.25%           .75%           .375%
                >2.00:1 AND
Tier IV         <2.50:1                  2.00%             0.50%            2.50%          1.00%           .375%
                -
                >1.50:1 AND
Tier III        <2.00:1                  2.25%             0.75%            2.75%          1.25%           .375%
                -
                >1.25:1 AND
Tier II         <1.50:1                  2.50%             1.00%            3.00%          1.50%           .500%
                -
Tier I          <1.25:1                  2.75%             1.25%            3.25%          1.75%           .500%
                -
</TABLE>

<PAGE>

                                    ANNEX C

                                   BORROWERS

Russell Corporation
Cross Creek Holdings, Inc.
Cross Creek Apparel, LLC
Jerzees Apparel, LLC
Mossy Oak Apparel Company
Russell Financial Services, Inc.
DeSoto Mills, Inc.
Russell Asset Management, Inc.
Russell Apparel LLC
RINTEL Properties, Inc.
Russell Yarn, LLC

                             SUBSIDIARY GUARANTORS

Russell Co-op, LLC
Russell Athletic West, Inc.
Russell Athletic, Inc.

<PAGE>
 4/17/2002         HONG KONG OUTSTANDING IMPORT LETTERS OF CREDIT

<TABLE>
<CAPTION>
ISSUE DTD       GUARANTOR               BENEFICIARY              LC NO.      CCY          CURRENT BALANCE           EXPIRY
                                                                                          USD EQUIVALENT            DATE
<S>             <C>                     <C>                      <C>         <C>          <C>                       <C>
   2/2/2001     RUSSELL CORPORATION          *                   CY415608    USD                 *                  020420
   2/2/2001     RUSSELL CORPORATION          *                   CY415798    USD                 *                  020531
   2/2/2001     RUSSELL CORPORATION          *                   CY415800    USD                 *                  020531
   2/2/2020     RUSSELL CORPORATION          *                   CY416299    USD                 *                  020701
   2/2/2020     RUSSELL CORPORATION          *                   CY416289    USD                 *                  020410
   2/2/2021     RUSSELL CORPORATION          *                   CY416380    USD                 *                  020701
   2/2/2021     RUSSELL CORPORATION          *                   CY416294    USD                 *                  020531
   2/2/2022     RUSSELL CORPORATION          *                   CY416383    USD                 *                  020701
   2/3/2006     RUSSELL CORPORATION          *                   CY416976    USD                 *                  020515
   2/3/2013     RUSSELL CORPORATION          *                   CY417098    USD                 *                  020501
   2/3/2028     RUSSELL CORPORATION          *                   CY417429    USD                 *                  020715
   2/3/2028     RUSSELL CORPORATION          *                   CY417424    USD                 *                  020715
   2/3/2028     RUSSELL CORPORATION          *                   CY417719    USD                 *                  020615
   2/3/2028     RUSSELL CORPORATION          *                   CY417726    USD                 *                  020615
   2/3/2028     RUSSELL CORPORATION          *                   CY417709    USD                 *                  020614
   2/3/2028     RUSSELL CORPORATION          *                   CY417701    USD                 *                  020617
   2/3/2028     RUSSELL CORPORATION          *                   CY417074    USD                 *                  020617
   2/3/2028     RUSSELL CORPORATION          *                   CY417124    USD                 *                  020518
   2/3/2028     RUSSELL CORPORATION          *                   CY417113    USD                 *                  020517
   2/3/2028     RUSSELL CORPORATION          *                   CY417125    USD                 *                  020524
   2/3/2028     RUSSELL CORPORATION          *                   CY417127    USD                 *                  020524
   2/3/2028     RUSSELL CORPORATION          *                   CY417038    USD                 *                  020515
   2/3/2028     RUSSELL CORPORATION          *                   CY417066    USD                 *                  020607
   2/4/2001     RUSSELL CORPORATION          *                   CY418148    USD                 *                  020626
   2/4/2002     RUSSELL CORPORATION          *                   CY418096    USD                 *                  020722
   2/4/2002     RUSSELL CORPORATION          *                   CY418149    USD                 *                  020716
   2/4/2004     RUSSELL CORPORATION          *                   CY418132    USD                 *                  020721
   2/4/2008     RUSSELL CORPORATION          *                   CY417560    USD                 *                  020721
   2/4/2012     RUSSELL CORPORATION          *                   CY418443    USD                 *                  020624
   2/4/2012     RUSSELL CORPORATION          *                   CY418420    USD                 *                  020607
   2/4/2012     RUSSELL CORPORATION          *                   CY418444    USD                 *                  020624
   2/4/2012     RUSSELL CORPORATION          *                   CY418436    USD                 *                  020624
   2/4/2012     RUSSELL CORPORATION          *                   CY418429    USD                 *                  020607
   2/4/2012     RUSSELL CORPORATION          *                   CY418438    USD                 *                  020624
   2/4/2015     RUSSELL CORPORATION          *                   CY418442    USD                 *                  020724
   2/4/2015     RUSSELL CORPORATION          *                   CY418441    USD                 *                  020724
   2/4/2016     RUSSELL CORPORATION          *                   CY418451    USD                 *                  020628
   2/4/2016     RUSSELL CORPORATION          *                   CY418449    USD                 *                  020628
   2/4/2016     RUSSELL CORPORATION          *                   CY418447    USD                 *                  020628
</TABLE>

(*) Material omitted pursuant to a request for confidential treatment filed with
the Securities and Exchange Commission (the "SEC"). The omitted material has
been filed separately with the SEC.
<PAGE>
4/17/02           FIRST UNION OUTSTANDING IMPORT LETTERS OF CREDIT

<TABLE>
<CAPTION>
APPLICANT                      BENEFICIARY              BENEFICIARY             LC NO.            USD BALANCE            EXPIRY
                                                          COUNTRY
<S>                            <C>                      <C>                     <C>                <C>                   <C>
JERZEES APPAREL LLC                 *                       US                  CY410672                 *               020331
JERZEES APPAREL LLC                 *                       US                  CY412990                 *               020430
JERZEES APPAREL LLC                 *                       US                  CY413978                 *               020430
JERZEES APPAREL LLC                 *                       US                  CY414046                 *               020516
JERZEES APPAREL LLC                 *                       US                  CY414047                 *               020531
JERZEES APPAREL LLC                 *                       US                  CY414205                 *               020430
RUSSELL ATHLETIC                    *                       US                  CY414934                 *               020405
JERZEES APPAREL LLC                 *                       US                  CY415099                 *               020506
JERZEES APPAREL LLC                 *                       US                  CY415962                 *               020531
JERZEES APPAREL LLC                 *                       US                  CY415965                 *               020630
JERZEES APPAREL LLC                 *                       US                  CY417155                 *               020731
RUSSELL ATHLETIC                    *                       US                  CY417631                 *               020505
JERZEES APPAREL LLC                 *                       US                  CY418456                 *               020831
JERZEES APPAREL LLC                 *                       US                  CY418458                 *               020831
JERZEES APPAREL LLC                 *                       US                  CY418459                 *               020831
</TABLE>

(*) Material omitted pursuant to a request for confidential treatment filed with
the Securities and Exchange Commission (the "SEC"). The omitted material has
been filed separately with the SEC.
<PAGE>
4/17/02                   FIRST UNION OUTSTANDING STANDBY L/C'S

<TABLE>
<CAPTION>
CUSTOMER                     L/C NO                L/C AMOUNT               ISSUE DATE           EXPIRY DATE          BENEFICIARY
<S>                          <C>                   <C>                      <C>                  <C>                  <C>
RUSSELL CORPORATION          SM419675              *                        1/10/02              6/30/02              *
</TABLE>

(*) Material omitted pursuant to a request for confidential treatment filed with
the Securities and Exchange Commission (the "SEC"). The omitted material has
been filed separately with the SEC.
<PAGE>

                                                                    EXHIBIT A-1

                         FORM OF REVOLVING CREDIT NOTE

$                                                              Atlanta, Georgia
 ------------------                                              April 18, 2002

         FOR VALUE RECEIVED, the undersigned, RUSSELL CORPORATION, an Alabama
corporation, CROSS CREEK HOLDINGS, INC., a Delaware corporation, CROSS CREEK
APPAREL, LLC, a North Carolina limited liability company, JERZEES APPAREL, LLC,
a Georgia limited liability company, MOSSY OAK APPAREL COMPANY, a Delaware
corporation, RUSSELL FINANCIAL SERVICES, INC., a Delaware corporation, DESOTO
MILLS, INC., an Alabama corporation, RUSSELL ASSET MANAGEMENT, INC., a Delaware
corporation, RUSSELL APPAREL LLC, an Alabama limited liability company, RINTEL
PROPERTIES, INC., a Delaware corporation, and RUSSELL YARN, LLC, an Alabama
limited liability company (collectively, the "Borrowers"), hereby jointly and
severally unconditionally promise to pay to the order of ____________________
(the "Lender") at the offices of FLEET CAPITAL CORPORATION, a Rhode Island
corporation, as administrative agent for the Lenders (together with its
successor agents, the "Administrative Agent") located at 300 Galleria Parkway,
Suite 800, Atlanta, Georgia 30339, or at such other place within the United
States as shall be designated from time to time by the Administrative Agent, on
the Termination Date, the principal amount of ________________________, or such
lesser principal amount as may then constitute the aggregate unpaid balance of
all Revolving Credit Loans made by the Lender to the Borrowers pursuant to the
Loan Agreement (as hereinafter defined), in lawful money of the United States
of America in federal or other immediately available funds.

         The Borrowers also jointly and severally unconditionally promise to
pay interest on the unpaid principal amount of this Note outstanding from time
to time for each day from the date hereof until such principal amount is paid
in full (whether upon maturity, by reason of acceleration or otherwise) at the
rates per annum and on the dates specified in the Loan Agreement applicable
from time to time in accordance with the provisions thereof. Nothing contained
in this Note or in the Loan Agreement shall be deemed to establish or require
the payment of a rate of interest in excess of the maximum rate permitted by
any Applicable Law. In the event that any rate of interest required to be paid
hereunder exceeds the maximum rate permitted by Applicable Law, the provisions
of the Loan Agreement relating to the payment of interest under such
circumstances shall control.

         This Revolving Credit Note is one of the Revolving Credit Notes
referred to in the Loan and Security Agreement dated as of April 18, 2002 (as
amended, modified, supplemented or restated from time to time, the "Loan
Agreement"; terms defined in the Loan Agreement being used herein as therein
defined) among the Borrowers, the Lender, the other financial institutions
party thereto from time to time as "Lenders," and the Administrative Agent, is
subject to, and entitled to, all provisions and benefits of the Loan Documents,
is secured by the Collateral and other property as provided in the Loan
Documents, is subject to optional and mandatory

                                     A-1-1
<PAGE>

prepayment in whole or in part and is subject to acceleration prior to maturity
upon the occurrence of one or more Events of Default, all as provided in the
Loan Documents.

         Presentment for payment, demand, protest and notice of demand, notice
of dishonor, notice of non-payment and all other notices are hereby waived by
the Borrowers, except to the extent expressly provided in the Loan Agreement.
No failure to exercise, and no delay in exercising, any rights hereunder on the
part of the holder hereof shall operate as a waiver of such rights.

         The Borrowers hereby jointly and severally agree to pay on demand all
costs and expenses incurred in collecting the Secured Obligations hereunder or
in enforcing or attempting to enforce any of the Lender's rights hereunder,
including, but not limited to, reasonable attorneys' fees and expenses actually
incurred if collected by or through an attorney, whether or not suit is filed.

         THE PROVISIONS OF SECTIONS 16.5 OF THE LOAN AGREEMENT ARE HEREBY
EXPRESSLY INCORPORATED HEREIN.

         THIS REVOLVING CREDIT NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF GEORGIA WITHOUT GIVING EFFECT TO THE
CONFLICT OF LAWS PRINCIPLES THEREOF.

                     [signatures appear on following pages]

                                     A-1-2
<PAGE>

         IN WITNESS WHEREOF, the undersigned have executed this Revolving
Credit Note as of the day and year first above written.

                                    BORROWERS:

                                    RUSSELL CORPORATION

                                    By:
                                       ----------------------------------------
                                       Name:
                                            -----------------------------------
                                       Title:
                                             ----------------------------------

                                    CROSS CREEK HOLDINGS, INC.

                                    By:
                                       ----------------------------------------
                                       Name:
                                            -----------------------------------
                                       Title:
                                             ----------------------------------

                                    CROSS CREEK APPAREL, LLC

                                    By:
                                       ----------------------------------------
                                       Name:
                                            -----------------------------------
                                       Title:
                                             ----------------------------------

                                    DESOTO MILLS, INC.

                                    By:
                                       ----------------------------------------
                                       Name:
                                            -----------------------------------
                                       Title:
                                             ----------------------------------

                                    JERZEES APPAREL, LLC

                                    By:
                                       ----------------------------------------
                                       Name:
                                            -----------------------------------
                                       Title:
                                             ----------------------------------

                                    MOSSY OAK APPAREL COMPANY

                                    By:
                                       ----------------------------------------
                                       Name:
                                            -----------------------------------
                                       Title:
                                             ----------------------------------

                                     A-1-3
<PAGE>

                                    RINTEL PROPERTIES, INC.

                                    By:
                                       ----------------------------------------
                                       Name:
                                            -----------------------------------
                                       Title:
                                             ----------------------------------

                                    RUSSELL APPAREL LLC

                                    By:
                                       ----------------------------------------
                                       Name:
                                            -----------------------------------
                                       Title:
                                             ----------------------------------

                                    RUSSELL ASSET MANAGEMENT, INC.

                                    By:
                                       ----------------------------------------
                                       Name:
                                            -----------------------------------
                                       Title:
                                             ----------------------------------

                                    RUSSELL FINANCIAL SERVICES, INC.

                                    By:
                                       ----------------------------------------
                                       Name:
                                            -----------------------------------
                                       Title:
                                             ----------------------------------

                                    RUSSELL YARN, LLC

                                    By:
                                       ----------------------------------------
                                       Name:
                                            -----------------------------------
                                       Title:
                                             ----------------------------------

                                     A-1-4
<PAGE>

                                                                    EXHIBIT A-2

                             FORM OF SWINGLINE NOTE

$20,000,000.00                                                 Atlanta, Georgia
                                                                 April 18, 2002

         FOR VALUE RECEIVED, the undersigned, RUSSELL CORPORATION, an Alabama
corporation, CROSS CREEK HOLDINGS, INC., a Delaware corporation, CROSS CREEK
APPAREL, LLC, a North Carolina limited liability company, JERZEES APPAREL, LLC,
a Georgia limited liability company, MOSSY OAK APPAREL COMPANY, a Delaware
corporation, RUSSELL FINANCIAL SERVICES, INC., a Delaware corporation, DESOTO
MILLS, INC., an Alabama corporation, RUSSELL ASSET MANAGEMENT, INC., a Delaware
corporation, RUSSELL APPAREL LLC, an Alabama limited liability company, RINTEL
PROPERTIES, INC., a Delaware corporation, and RUSSELL YARN, LLC, an Alabama
limited liability company (collectively, the "Borrowers"), hereby jointly and
severally unconditionally promise to pay to the order of FLEET CAPITAL
CORPORATION (the "Swingline Lender") at the offices of FLEET CAPITAL
CORPORATION, a Rhode Island corporation, as administrative agent for the
Lenders (together with its successor agents, the "Administrative Agent")
located at 300 Galleria Parkway, Suite 800, Atlanta, Georgia 30339, or at such
other place within the United States as shall be designated from time to time
by the Administrative Agent, on the Termination Date, the principal amount of
TWENTY MILLION AND NO/100 DOLLARS ($20,000,000.00), or such lesser principal
amount as may then constitute the aggregate unpaid balance of all Swingline
Loans made by the Swingline Lender to the Borrowers pursuant to the Loan
Agreement (as hereinafter defined), in lawful money of the United States of
America in federal or other immediately available funds.

         The Borrowers also jointly and severally unconditionally promise to
pay interest on the unpaid principal amount of this Note outstanding from time
to time for each day from the date hereof until such principal amount is paid
in full (whether upon maturity, by reason of acceleration or otherwise) at the
rates per annum and on the dates specified in the Loan Agreement applicable
from time to time in accordance with the provisions thereof. Nothing contained
in this Note or in the Loan Agreement shall be deemed to establish or require
the payment of a rate of interest in excess of the maximum rate permitted by
any Applicable Law. In the event that any rate of interest required to be paid
hereunder exceeds the maximum rate permitted by Applicable Law, the provisions
of the Loan Agreement relating to the payment of interest under such
circumstances shall control.

         This Note is the Swingline Note referred to in the Loan and Security
Agreement dated as of April 18, 2002 (as amended, modified, supplemented or
restated from time to time, the "Loan Agreement"; unless otherwise defined
herein, terms defined therein being used in this Note as therein defined), by
and among the Borrowers, the Swingline Lender, the other financial institutions
party thereto from time to time as "Lenders" and the Administrative Agent, is
subject to, and entitled to, all provisions and benefits of the Loan Documents,
is secured by the Collateral and other property as provided in the Loan
Documents, is subject to optional and

                                     A-2-1
<PAGE>

mandatory prepayment in whole or in part and is subject to acceleration prior
to maturity upon the occurrence of one or more Events of Default, all as
provided in the Loan Documents.

         Presentment for payment, demand, protest and notice of demand, notice
of dishonor, notice of non-payment and all other notices are hereby waived by
the Borrowers, except to the extent expressly provided in the Loan Agreement.
No failure to exercise, and no delay in exercising, any rights hereunder on the
part of the holder hereof shall operate as a waiver of such rights.

         The Borrowers hereby jointly and severally agree to pay on demand all
costs and expenses incurred in collecting the Secured Obligations hereunder or
in enforcing or attempting to enforce any of the Swingline Lender's rights
hereunder, including, but not limited to, reasonable attorneys' fees and
expenses actually incurred if collected by or through an attorney, whether or
not suit is filed.

         THE PROVISIONS OF SECTIONS 16.5 OF THE LOAN AGREEMENT ARE HEREBY
EXPRESSLY INCORPORATED HEREIN.

         THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF GEORGIA WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS
PRINCIPLES THEREOF.

                     [signatures appear on following pages]

                                     A-2-2
<PAGE>

         IN WITNESS WHEREOF, the undersigned have executed this Swingline Note
as of the day and year first above written.

                                    BORROWERS:

                                    RUSSELL CORPORATION

                                    By:
                                       ----------------------------------------
                                       Name:
                                            -----------------------------------
                                       Title:
                                             ----------------------------------

                                    CROSS CREEK HOLDINGS, INC.

                                    By:
                                       ----------------------------------------
                                       Name:
                                            -----------------------------------
                                       Title:
                                             ----------------------------------

                                    CROSS CREEK APPAREL, LLC

                                    By:
                                       ----------------------------------------
                                       Name:
                                            -----------------------------------
                                       Title:
                                             ----------------------------------

                                    DESOTO MILLS, INC.

                                    By:
                                       ----------------------------------------
                                       Name:
                                            -----------------------------------
                                       Title:
                                             ----------------------------------

                                    JERZEES APPAREL, LLC

                                    By:
                                       ----------------------------------------
                                       Name:
                                            -----------------------------------
                                       Title:
                                             ----------------------------------

                                    MOSSY OAK APPAREL COMPANY

                                    By:
                                       ----------------------------------------
                                       Name:
                                            -----------------------------------
                                       Title:
                                             ----------------------------------

                                     A-2-3
<PAGE>

                                    RINTEL PROPERTIES, INC.

                                    By:
                                       ----------------------------------------
                                       Name:
                                            -----------------------------------
                                       Title:
                                             ----------------------------------

                                    RUSSELL APPAREL LLC

                                    By:
                                       ----------------------------------------
                                       Name:
                                            -----------------------------------
                                       Title:
                                             ----------------------------------

                                    RUSSELL ASSET MANAGEMENT, INC.

                                    By:
                                       ----------------------------------------
                                       Name:
                                            -----------------------------------
                                       Title:
                                             ----------------------------------

                                    RUSSELL FINANCIAL SERVICES, INC.

                                    By:
                                       ----------------------------------------
                                       Name:
                                            -----------------------------------
                                       Title:
                                             ----------------------------------

                                    RUSSELL YARN, LLC

                                    By:
                                       ----------------------------------------
                                       Name:
                                            -----------------------------------
                                       Title:
                                             ----------------------------------

                                     A-2-4
<PAGE>

                                                                      EXHIBIT B

                               FORM OF TERM NOTE

$                                                              Atlanta, Georgia
 -------------------                                             April 18, 2002

         FOR VALUE RECEIVED, the undersigned, RUSSELL CORPORATION, an Alabama
corporation, CROSS CREEK HOLDINGS, INC., a Delaware corporation, CROSS CREEK
APPAREL, LLC, a North Carolina limited liability company, JERZEES APPAREL, LLC,
a Georgia limited liability company, MOSSY OAK APPAREL COMPANY, a Delaware
corporation, RUSSELL FINANCIAL SERVICES, INC., a Delaware corporation, DESOTO
MILLS, INC., an Alabama corporation, RUSSELL ASSET MANAGEMENT, INC., a Delaware
corporation, RUSSELL APPAREL LLC, an Alabama limited liability company, RINTEL
PROPERTIES, INC., a Delaware corporation, and RUSSELL YARN, LLC, an Alabama
limited liability company (collectively, the "Borrowers"), hereby jointly and
severally unconditionally promise to pay to the order of
_______________________ (the "Lender") at the offices of Fleet Capital
Corporation, as administrative agent for the Lenders (together with its
successor agents, the "Administrative Agent") located at 300 Galleria Parkway,
Suite 800, Atlanta, GA 30339, or at such other place within the United States
as shall be designated from time to time by the Administrative Agent, the
principal amount of _______________________________, constituting the Term Loan
made by the Lender to the Borrowers pursuant to the Loan Agreement (as
hereinafter defined), in lawful money of the United States of America in
federal or other immediately available funds, in such amounts and on the dates
specified in the Loan Agreement applicable from time to time in accordance with
the provisions thereof.

         The Borrowers also jointly and severally unconditionally promise to
pay interest on the unpaid principal amount of this Note for each day from the
date hereof until payment thereof in full (whether upon maturity, by reason of
acceleration or otherwise) at the rates per annum and on the dates specified in
the Loan Agreement applicable from time to time in accordance with the
provisions thereof. Nothing contained in this Note or in the Loan Agreement
shall be deemed to establish or require the payment of a rate of interest in
excess of the maximum rate permitted by any Applicable Law. In the event that
any rate of interest required to be paid hereunder exceeds the maximum rate
permitted by Applicable Law, the provisions of the Loan Agreement relating to
the payment of interest under such circumstances shall control.

         This Note is one of the Term Notes referred to in the Loan and
Security Agreement dated as of April 18, 2002 (as amended, modified,
supplemented or restated from time to time, the "Loan Agreement"; terms defined
in the Loan Agreement being used herein as therein defined) among the
Borrowers, the Lender, the other financial institutions party thereto from time
to time as "Lenders," and the Administrative Agent, is subject to, and entitled
to, all provisions and benefits of the Loan Documents, is secured by the
Collateral and other property as provided in the Loan Documents, is subject to
optional and mandatory prepayment in whole or in part and is subject to
acceleration prior to maturity upon the occurrence of one or more Events of
Default, all as provided in the Loan Documents.

                                      B-1
<PAGE>

         Presentment for payment, demand, protest and notice of demand, notice
of dishonor, notice of non-payment and all other notices are hereby waived by
the Borrowers, except to the extent expressly provided in the Loan Agreement.
No failure to exercise, and no delay in exercising, any rights hereunder on the
part of the holder hereof shall operate as a waiver of such rights.

         The Borrowers hereby jointly and severally agree to pay on demand all
costs and expenses incurred in collecting the Secured Obligations hereunder or
in enforcing or attempting to enforce any of the Term Loan Lender's rights
hereunder, including, but not limited to, reasonable attorneys' fees and
expenses actually incurred if collected by or through an attorney, whether or
not suit is filed.

         THE PROVISIONS OF SECTIONS 16.5 OF THE LOAN AGREEMENT ARE HEREBY
EXPRESSLY INCORPORATED HEREIN.

         THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF GEORGIA WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS
PRINCIPLES THEREOF.

                     [signatures appear on following pages]

                                      B-2
<PAGE>

         IN WITNESS WHEREOF, the undersigned have executed this Term Note as of
the day and year first above written.

                                    BORROWERS:

                                    RUSSELL CORPORATION

                                    By:
                                       ----------------------------------------
                                       Name:
                                            -----------------------------------
                                       Title:
                                             ----------------------------------

                                    CROSS CREEK HOLDINGS, INC.

                                    By:
                                       ----------------------------------------
                                       Name:
                                            -----------------------------------
                                       Title:
                                             ----------------------------------

                                    CROSS CREEK APPAREL, LLC

                                    By:
                                       ----------------------------------------
                                       Name:
                                            -----------------------------------
                                       Title:
                                             ----------------------------------

                                    DESOTO MILLS, INC.

                                    By:
                                       ----------------------------------------
                                       Name:
                                            -----------------------------------
                                       Title:
                                             ----------------------------------

                                    JERZEES APPAREL, LLC

                                    By:
                                       ----------------------------------------
                                       Name:
                                            -----------------------------------
                                       Title:
                                             ----------------------------------

                                    MOSSY OAK APPAREL COMPANY

                                    By:
                                       ----------------------------------------
                                       Name:
                                            -----------------------------------
                                       Title:
                                             ----------------------------------

                                      B-3
<PAGE>

                                    RINTEL PROPERTIES, INC.

                                    By:
                                       ----------------------------------------
                                       Name:
                                            -----------------------------------
                                       Title:
                                             ----------------------------------

                                    RUSSELL APPAREL LLC

                                    By:
                                       ----------------------------------------
                                       Name:
                                            -----------------------------------
                                       Title:
                                             ----------------------------------

                                    RUSSELL ASSET MANAGEMENT, INC.

                                    By:
                                       ----------------------------------------
                                       Name:
                                            -----------------------------------
                                       Title:
                                             ----------------------------------

                                    RUSSELL FINANCIAL SERVICES, INC.

                                    By:
                                       ----------------------------------------
                                       Name:
                                            -----------------------------------
                                       Title:
                                             ----------------------------------

                                    RUSSELL YARN, LLC

                                    By:
                                       ----------------------------------------
                                       Name:
                                            -----------------------------------
                                       Title:
                                             ----------------------------------

                                      B-4
<PAGE>

                                                                      EXHIBIT C

                       FORM OF BORROWING BASE CERTIFICATE

         Reference is made to the Loan and Security Agreement dated as of April
18, 2002 (as the same may be amended, modified, supplemented or restated from
time to time, the "Loan Agreement"), by and among Russell Corporation, an
Alabama corporation, and certain of its Subsidiaries (collectively, the
"Borrowers"), the financial institutions party thereto from time to time (the
"Lenders"), and Fleet Capital Corporation, a Rhode Island corporation, as
administrative agent for the Lenders (together with its successor agents, the
"Administrative Agent"). Terms used herein that are defined in the Loan
Agreement are used with the meanings therein ascribed to them.

         This certificate is furnished to the Administrative Agent by the
Borrowers, in accordance with their obligations under Section 6.1(c)(17) or
Section 9.12(c) of the Loan Agreement. The Borrowers certify that (a) the
computation of the Borrowing Base attached hereto complies with all the
applicable provisions of the Loan Agreement, and (b) the data has been prepared
from the books of account and records of the Borrowers maintained in accordance
with GAAP (or other applicable accounting principles contemplated by the Loan
Agreement) and present fairly and accurately the status of the Borrowers'
accounts as at _____________, 200__.

Dated as of ________ __, 2002

                                    RUSSELL CORPORATION, for itself and on
                                    behalf of the other Borrowers

                                    By:
                                       ----------------------------------------
                                       Name:
                                            -----------------------------------
                                       Title:
                                             ----------------------------------

                                      C-1
<PAGE>

                                                                      EXHIBIT D

                       FORM OF ASSIGNMENT AND ACCEPTANCE

                       _______________________, Assignee

                          Dated ____________ ___, ____

         Reference is made to the Loan and Security Agreement dated as of April
18, 2002 (as amended, modified, supplemented or restated, the "Loan
Agreement"), by and among RUSSELL CORPORATION, an Alabama corporation, CROSS
CREEK HOLDINGS, INC., a Delaware corporation, CROSS CREEK APPAREL, LLC, a North
Carolina limited liability company, JERZEES APPAREL, LLC, a Georgia limited
liability company, MOSSY OAK APPAREL COMPANY, a Delaware corporation, RUSSELL
FINANCIAL SERVICES, INC., a Delaware corporation, DESOTO MILLS, INC., an
Alabama corporation, RUSSELL ASSET MANAGEMENT, INC., a Delaware corporation,
RUSSELL APPAREL LLC, an Alabama limited liability company, RINTEL PROPERTIES,
INC., a Delaware corporation, and RUSSELL YARN, LLC, an Alabama limited
liability company (collectively, the "Borrowers"), the financial institutions
party thereto from time to time (the "Lenders"), and FLEET CAPITAL CORPORATION,
a Rhode Island corporation, as administrative agent for the Lenders (together
with its successor agents, the "Administrative Agent"). Unless otherwise
defined herein, capitalized terms used herein that are defined in the Loan
Agreement are used with the meanings therein ascribed to them.

         _________________________________________________________ ("Assignor")
and ____________________________________ ("Assignee") agree as follows:

         1.       The Assignor hereby sells and assigns to the Assignee without
recourse, and the Assignee hereby purchases and assumes from the Assignor, an
interest in and to such of the Assignor's rights and obligations as a Lender
under the Loan Agreement as of the Effective Date (as hereinafter defined) as
represent the percentage interest in each Commitment and amount of each
outstanding Loan set forth on EXHIBIT A attached hereto and made a part hereof.
The Assignee shall have no interest in any interest that is payable with
respect to a period prior to the Effective Date.

         2.       The Assignor (i) represents that as of the date hereof, its
Commitments with respect to each Facility and the outstanding balance of each
Loan held by it, all or any portion of which is the subject of this Assignment
and Acceptance and the aggregate amount of its interest in Letter of Credit
Obligations (in each case unreduced by any assignments thereof which have not
yet become effective), is set forth on EXHIBIT B, (ii) makes no representation
or warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with the Loan Agreement
or the execution, legality, validity, enforceability, genuineness, sufficiency
or value of the Loan Agreement or any other instrument or document furnished
pursuant thereto, other than that it is the legal and beneficial owner of the
interest being assigned by it hereunder and that such interest is free and
clear of any adverse claim, lien or encumbrance; and (iii) makes no
representation or warranty and assumes no responsibility with respect to the
financial condition of the Borrowers, the performance or observance by the

                                      D-1
<PAGE>

Borrowers of any of their obligations under the Loan Agreement or any other
instrument or document furnished pursuant thereto.

         3.       Assignee (i) represents and warrants that it is legally
authorized to enter into this Assignment and Acceptance; (ii) confirms that it
has received a copy of the Loan Agreement, together with copies of the most
recent financial statements delivered pursuant to SECTION 11.1 thereof and such
other documents and information as it has deemed appropriate to make its own
credit analysis and decision to enter into this Assignment and Acceptance;
(iii) agrees that it will, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under the Loan Agreement; (iv)
confirms that it is an Eligible Assignee; (v) appoints and authorizes the
Administrative Agent to take such action as administrative agent on its behalf
and to exercise such powers under the Loan Agreement as are delegated to the
Administrative Agent by the terms thereof, together with such powers as are
reasonably incidental thereto; (vi) agrees that it will perform in accordance
with their terms all the obligations which by the terms of the Loan Agreement
are required to be performed by it as a Lender; (vii) specifies as its address
for notices the office set forth beneath its name on the signature pages
hereof; (viii) agrees that it will keep confidential all information with
respect to the Borrowers furnished to it by or on behalf of the Borrowers or
Assignor in accordance with the provisions of SECTION 16.24 of the Loan
Agreement; (ix) agrees and covenants that the lesser of (A) $5,000,000 and (B)
the aggregate outstanding principal amount of the Revolving Credit Loans, Term
Loans and Letter of Credit Obligations assigned to Assignee hereby shall not be
assigned, participated or otherwise transferred by Assignee to any other
assignee; and (x) represents and warrants that it is organized under the laws
of a jurisdiction in the United States of America.

         4.       The effective date for this Assignment and Acceptance shall
be ____________ ___, _____ [or such earlier date as the Administrative Agent
gives notice of to Assignor and Assignee(1)] (the "Effective Date"). Following
the execution of this Assignment and Acceptance, it will be delivered to the
Administrative Agent for acceptance and recording by the Administrative Agent.

         5.       Upon such acceptance and recording, from and after the
Effective Date, (i) Assignee shall be a party to the Loan Agreement and, to the
extent provided in this Assignment and Acceptance, shall have the rights and
obligations of a Lender thereunder, and (ii) Assignor shall, to the extent
provided in this Assignment and Acceptance, relinquish its rights and be
released from its obligations under the Loan Agreement.

         6.       Upon such acceptance and recording, from and after the
Effective Date, the Administrative Agent shall make all payments in respect of
the interest assigned hereby (including payments of principal, interest, fees
and other amounts) to Assignee. Assignor and Assignee shall make all
appropriate adjustments in payments for periods prior to the Effective

---------
        (1)       The date five Business Days after the date of delivery of
this Assignment and Acceptance to the Administrative Agent.

                                      D-2
<PAGE>

Date or with respect to the making of this Assignment and Acceptance directly
between themselves.

         7.       This Assignment and Acceptance shall be governed by, and
construed in accordance with, the laws of the State of Georgia, without
reference to any provision which would render such choice of law invalid.

         8.       The Assignee acknowledges that pursuant to SECTION 5.13(F) of
the Loan Agreement, the Assignee may elect, by notice to the Administrative
Agent, not to receive Notes evidencing its Loans and to rely exclusively on the
provisions of SECTION 5.7 thereof, PROVIDED that upon the Assigneee's request,
and subject to such reasonable notice and other requirements as the
Administrative Agent may impose, the Borrowers shall execute and deliver Notes
in conformity with the provisions of SECTIONS 2.4 and 4.4 of the Loan
Agreement.

                                      D-3
<PAGE>

           ASSIGNOR:
                                    -------------------------------------------

                                    By:
                                       ----------------------------------------
                                    Name:
                                         --------------------------------------
                                    Title:
                                          -------------------------------------

           ASSIGNEE:
                                    -------------------------------------------

                                    By:
                                       ----------------------------------------
                                    Name:
                                         --------------------------------------
                                    Title:
                                          -------------------------------------

                                    Address:

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

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

Accepted this ____ day of

              ,         .
-------------  --------

Fleet Capital Corporation, as
Administrative Agent

By:
   ---------------------------
   Name:
        ----------------------
   Title:
         ---------------------

[Provided that no Event of Default exists, and the
assignment is not to a Lender or an Affiliate of a
Lender:

Consented to this ___ day of

              ,         .
-------------  --------

Russell Corporation, as Borrowers' Representative

By:
   ---------------------------
   Name:
        ----------------------
   Title:                      ]
         ---------------------

                                      D-4
<PAGE>

                                   EXHIBIT A

                       PERCENTAGE OF COMMITMENT ASSIGNED

                                      D-5
<PAGE>

                                   EXHIBIT B

                                   COMMITMENT

                                      D-6
<PAGE>

                                                                    EXHIBIT E-1

                  FORM OF CONFIRMATION OF NOTICE OF BORROWING
                            (Revolving Credit Loan)

                                     [Date]

Fleet Capital Corporation, as Administrative Agent
300 Galleria Parkway
Suite 800
Atlanta, Georgia 30339

Ladies and Gentlemen:

         The undersigned Borrowers' Representative, Russell Corporation, an
Alabama corporation, refers to the Loan and Security Agreement dated as of
April 18, 2002 (as amended, modified, supplemented or restated from time to
time, the "Loan Agreement"; capitalized terms defined therein are used herein
as therein defined) between the undersigned, the other Borrowers, the Lenders
and Fleet Capital Corporation, as administrative agent (the "Administrative
Agent") for the Lenders, and hereby gives the Administrative Agent notice,
irrevocably, pursuant to Section 2.2 of the Loan Agreement that the undersigned
hereby requests a Borrowing under the Loan Agreement, and in that connection
sets forth below the information relating to such Borrowing (the "Proposed
Loan") as required by Section 2.2 of the Loan Agreement:

                  (1)      The Business Day on which the Proposed Loan is to be
         made is __________, [200__].

                  (2)      The aggregate amount of the Proposed Loan is
         $___________.

                  (3)      The Proposed Loan is a [Base Rate/LIBOR] Revolving
         Credit Loan.

                  (4)      If the Proposed Loan is a LIBOR Loan, the Interest
         Period applicable thereto is ____ month(s).

         As to such Proposed Loan, the undersigned hereby certifies that the
following statements are true on the date hereof, and will be true on the date
of the Proposed Loan:

                  (A)      the representations and warranties required to be
         made under the Loan Agreement are true and correct in all material
         respects, before and after giving effect to the Proposed Loan and to
         the application of the proceeds therefrom, as though made on and as of
         such dates; and

                                     E-1-1
<PAGE>

                  (B)      no event has occurred and is continuing, or would
         result from such Proposed Loan or from the application of the proceeds
         therefrom, which constitutes a Default or Event of Default.

                                             Very truly yours,

                                             RUSSELL CORPORATION, for itself
                                             and as Borrowers' Representative

                                             By:
                                                -------------------------------
                                                Name:
                                                     --------------------------
                                                Title:
                                                      -------------------------

                                     E-1-2
<PAGE>

                                                                    EXHIBIT E-2

                  FORM OF CONFIRMATION OF NOTICE OF BORROWING
                                (Swingline Loan)

                                     [Date]

Fleet Capital Corporation,
as Administrative Agent
300 Galleria Parkway
Suite 800
Atlanta, Georgia 30339

Ladies and Gentlemen:

         The undersigned Borrowers' Representative, Russell Corporation, an
Alabama corporation, refers to the Loan and Security Agreement dated as of
April 18, 2002 (as amended, modified, supplemented or restated from time to
time, the "Loan Agreement"; capitalized terms defined therein are used herein
as therein defined) between the undersigned, the other Borrowers, the Lenders,
and Fleet Capital Corporation as administrative agent (the "Administrative
Agent") for the Lenders and hereby gives the Administrative Agent notice,
irrevocably, pursuant to Section 2A.2 of the Loan Agreement that the
undersigned hereby requests a Borrowing under the Loan Agreement, and in that
connection sets forth below the information relating to such Borrowing (the
"Proposed Loan") as required by Section 2A.2 of the Loan Agreement:

         (1)      The Business Day on which the Proposed Loan is to be made is
         __________, [200__].

         (2)      The aggregate amount of the Proposed Loan is $___________.

         As to such Proposed Loan, the undersigned hereby certifies that the
following statements are true on the date hereof, and will be true on the date
of the Proposed Loan:

                  (A)      the representations and warranties required to be
         made under the Loan Agreement are true and correct in all material
         respects, before and after giving effect to the Proposed Loan and to
         the application of the proceeds therefrom, as though made on and as of
         such dates; and

                                     E-2-1
<PAGE>

                  (B)      no event has occurred and is continuing, or would
         result from such Proposed Loan or from the application of the proceeds
         therefrom, which constitutes a Default or Event of Default.

                                             Very truly yours,

                                             RUSSELL CORPORATION, for itself
                                             and as Borrowers' Representative

                                             By:
                                                -------------------------------
                                                Name:
                                                     --------------------------
                                                Title:
                                                      -------------------------

                                     E-2-2
<PAGE>

                                                                      EXHIBIT F

                                 FORM OF NOTICE
                         OF CONVERSION OR CONTINUATION

                           _______________ ___, 200_

Fleet Capital Corporation,
as Administrative Agent
300 Galleria Parkway
Suite 800
Atlanta, Georgia 30339

Ladies and Gentlemen:

         The undersigned Borrowers' Representative, Russell Corporation, an
Alabama corporation, refers to the Loan and Security Agreement dated as of
April 18, 2002 (the "Loan Agreement", the terms defined therein being used
herein as therein defined), between the undersigned, the other Borrowers, the
Lenders and Fleet Capital Corporation, as administrative agent for the Lenders,
and hereby gives you notice, irrevocably, pursuant to Section 5.3 of the Loan
Agreement that the undersigned hereby requests [the conversion] [the
continuation] of Loans described below (the "Existing Loan"), and in that
connection sets forth below the information relating to such [conversion]
[continuation] (the "Proposed [Conversion] [Continuation]") as required by
Section 5.3 of the Loan Agreement:

                  (1)      The Existing Loan is a [Revolving Credit Loan] [Term
         Loan] and the Type of the Existing Loan is [a Base Rate] [LIBOR] Loan.

                  (2)      [If the Existing Loan is a LIBOR Loan, the last day
         of the Interest Period applicable to the Existing Loan is __________,
         [200__], which is the date of the Proposed
         [Continuation][Conversion].] [If the Existing Loan is a Base Rate
         Loan, the Business Day of the Proposed Conversion of the Existing Loan
         into a LIBOR Loan is ____________, [200__.]

                  (3)      The aggregate outstanding principal amount of the
         [Revolving Credit Loan] [portion of the Term Loan] comprising the
         Existing Loan is $_____________.

                  (4)      The Loan comprising the Existing Loan is to be
         [converted into] [continued as] [a Base Rate Loan] [a LIBOR Loan] [in
         its entirety] [to the extent of $__________ of the principal amount
         thereof] [and [converted into] [continued as] [a Base Rate Loan] [a
         LIBOR Loan] to the extent of $__________ of the principal amount
         thereof].

                                      F-1

<PAGE>

                  [(5)     The Interest Period for each Loan [converted into]
         [continued as] a LIBOR Loan is [1, 2, 3 or 6] month(s).]

         As to each Proposed [Conversion] [Continuation] of any Loan [into]
[as] a LIBOR Loan, the Borrowers hereby represent and warrant that as of the
date hereof no Default or Event of Default has occurred and is continuing.

                                       Very truly yours,

                                       RUSSELL CORPORATION, for itself
                                       and as Borrowers' Representative

                                       By:
                                          --------------------------------------
                                          Name:
                                               ---------------------------------
                                          Title:
                                                --------------------------------

                                      F-2

<PAGE>

                                                                      EXHIBIT G

                    FORM OF COVENANT COMPLIANCE CERTIFICATE

         The undersigned, ____________________, the ___________________ of
Russell Corporation, an Alabama corporation (the "Corporation"), hereby
certifies to the Administrative Agent under and as defined in the Loan and
Security Agreement dated as of April 18, 2002 (as amended, modified,
supplemented or restated and in effect from time to time, the "Loan
Agreement"), in accordance with the provisions of SECTION 11.3 of the Loan
Agreement, that:

         1.       As of _____________________ [date of last day of Fiscal
Quarter or Fiscal Year] (the "Report Date"), the Borrowers were/were not in
compliance with the covenants set forth in SECTIONS 12.1, 12.2, 12.4, 12.5,
12.6 AND 12.10 of the Loan Agreement, as detailed on the worksheet attached
hereto as EXHIBIT A.

         2.       All Schedules to the Loan Agreement are correct and accurate
as of the date hereof after taking into account the revised and/or supplemental
information reflected on the Schedules attached hereto as EXHIBIT B.

         3.       Based on a reasonably diligent examination sufficient to
enable me to make an informed statement, no Default or Event of Default exists
as of the date hereof [other than:(1)].

         IN WITNESS WHEREOF, the undersigned has executed and delivered this
Certificate as of ___________, 200__.

                                       By:
                                          --------------------------------------
                                          Name:
                                               ---------------------------------
                                          Title:
                                                --------------------------------

---------------
         (1)      Specify such Default or Event of Default and its nature, when
it occurred, whether it is continuing and the steps being taken by the
Borrowers with respect to such Default or Event of Default.

                                      G-1

<PAGE>

                                                                      EXHIBIT H

                          FORM OF SUBSIDIARY GUARANTY

                           Dated as of April 18, 2002

         _______________________________ a _______________ [corporation/limited
liability company] (the "Guarantor"), hereby agrees in favor of FLEET CAPITAL
CORPORATION, a Rhode Island corporation, in its capacity as administrative
agent for the financial institutions party from time to time to the Loan
Agreement (as defined below), as follows:

         Section 1.        Cross References and Definitions.

         (a)      Reference is made to the Loan and Security Agreement, dated
as of April 18, 2002 (the same as it may hereafter be amended, modified,
supplemented or restated from time to time being referred to as the "Loan
Agreement"), by and among Russell Corporation, an Alabama corporation, CROSS
CREEK HOLDINGS, INC., a Delaware corporation, CROSS CREEK APPAREL, LLC, a North
Carolina limited liability company, JERZEES APPAREL, LLC, a Georgia limited
liability company, MOSSY OAK APPAREL COMPANY, a Delaware corporation, RUSSELL
FINANCIAL SERVICES, INC., a Delaware corporation, DESOTO MILLS, INC., an
Alabama corporation, RUSSELL ASSET MANAGEMENT, INC., a Delaware corporation,
RUSSELL APPAREL LLC, an Alabama limited liability company, RINTEL PROPERTIES,
INC., a Delaware corporation, and RUSSELL YARN, LLC, an Alabama limited
liability company (each a "Borrower" and collectively, the "Borrowers"), the
Lenders parties thereto from time to time and the Administrative Agent.

         (b)      For the purposes of this Guaranty:

                  "Administrative Agent" and "Lender" each have the meaning
         ascribed to such term in the Loan Agreement and "Lender" also means
         and includes each subsequent holder of a Note.

                  "Obligor" means any obligor, maker, endorser, acceptor,
         surety or guarantor (other than the Guarantor), from time to time, of
         any Secured Obligation.

         (c)      Unless otherwise defined in this Guaranty, terms used herein
which are defined in the Loan Agreement shall have the same meaning herein as
therein ascribed to them.

         Section 2.        Guaranty.

         (a)      Guaranty. In consideration of the execution and delivery by
the Lenders of the Loan Agreement and as a condition precedent to the making or
continued making of loans and other financial accommodations to the Borrowers
by the Lenders thereunder, the Guarantor, as primary obligor and not as surety
merely, hereby guarantees absolutely and unconditionally to the Administrative
Agent and the Lenders the due and punctual payment, when and as due (whether
upon demand, at maturity, by reason of acceleration or otherwise), and
performance of

                                      H-1

<PAGE>

all Secured Obligations, whether now existing or hereafter arising (hereinafter
referred to as the "Guaranteed Obligations"), and agrees to pay any and all
expenses (including, but not limited to, reasonable legal fees and
disbursements) which may be incurred by the Administrative Agent or any Lender
in enforcing their respective rights under this Guaranty. The liability of the
Guarantor under this Guaranty is primary, unlimited and unconditional, and
shall be enforceable before, concurrently or after any claim or demand is made
or suit is filed against any Borrower or any other Obligor and before,
concurrently or after any proceeding by the Administrative Agent against any
Collateral or other security for the Guaranteed Obligations and shall be
effective regardless of the solvency or insolvency of any Borrower or any other
Obligor at any time, the extension or modification of any of the Guaranteed
Obligations by operation of law or the subsequent reorganization, merger or
consolidation of any Borrower or any change in its composition, nature,
ownership, personnel or location, and this Guaranty shall be a continuing
guaranty of any and all notes given in extension or renewal of the Guaranteed
Obligations. The Guarantor acknowledges, agrees and confirms that this is a
guaranty of payment and not of collection only and that demand for payment may
be made hereunder on any number of occasions in the amount of all or any
portion of the Guaranteed Obligations then due and no single demand shall
exhaust the rights of the Administrative Agent or the Lenders hereunder.
Further, the Guarantor hereby agrees that all proceeds of Collateral owned by
it shall be applied to the Secured Obligations on a daily basis as and when
received by the Administrative Agent as provided in the Loan Agreement as fully
as if such Collateral and proceeds were owned by the Borrowers.

         (b)      Payment by Guarantor. If the Borrowers shall fail to pay,
when due and payable, any Guaranteed Obligation, the Guarantor will, without
demand or notice, immediately pay the same to the Administrative Agent for the
account of the Lenders. If any Guaranteed Obligation would be subject to
acceleration, but such acceleration is enjoined or stayed, the Guarantor will
to the extent permitted by Applicable Law, purchase such Guaranteed Obligation
for a price equal to the outstanding principal amount thereof, plus such
accrued interest and other amounts as would have been payable had such
Guaranteed Obligation been paid or prepaid at the time of such purchase. All
payments by the Guarantor under this Guaranty shall be made without any setoff,
counterclaim or deduction whatsoever, and in the same currency and funds as are
required to be paid by the Borrowers.

         (c)      Waiver. The Guarantor waives without any requirement of any
notice to or further assent by the Guarantor, to the fullest extent permitted
by Applicable Law, (i) diligence, presentment, demand, protest and notice of
any kind whatsoever, (ii) any requirement that the Administrative Agent or any
Lender exhaust any right or take any action against any Obligor or other Person
or any of the Collateral or other security for the Guaranteed Obligations,
including, without being limited to, pursuant to O.C.G.A. ss.ss. 10-7-23 and
10-7-24, (iii) the benefit of all principles or provisions of Applicable Law
which are or might be in conflict with the terms of this Guaranty, (iv) notice
of acceptance hereof, (v) notice of Default or Event of Default, (vi) notice of
any and all favorable and unfavorable information, financial or other, about
the Borrowers, any Obligor or other Person, heretofore, now or hereafter
learned or acquired by the Administrative Agent or any Lender, (vii) all other
notice to which such Guarantor or Obligor might otherwise be entitled, (viii)
all defenses, set-offs and counterclaims of any kind whatsoever (but not the
right to bring an independent action), (ix) notice of the existence or creation
of any Guaranteed Obligations, (x) notice of any alteration, amendment,

                                      H-2

<PAGE>

increase, extension or exchange of any of the Guaranteed Obligations, (xi)
notice of any amendments, modifications or supplements to the Loan Agreement or
any Loan Document (other than this Guaranty), (xii) notice of any release of
Collateral or other security for the Guaranteed Obligations or any compromise
or settlement with respect thereto, (xiii) all diligence in collection or
protection of or realization upon the Collateral or any of the Guaranteed
Obligations, and (xiv) the right to require the Administrative Agent to proceed
against any Obligor.

         (d)      Consents. The Guarantor consents without the requirement of
any notice to or further assent by the Guarantor, to the fullest extent
permitted by Applicable Law, that (i) the time of payment of any Guaranteed
Obligation may be extended, (ii) any provision of the Loan Agreement or any
Loan Document (other than this Guaranty) may be amended, waived or modified,
(iii) any Obligor may be released from its obligations or other Obligors or
Guarantors substituted therefor or added, (iv) any Collateral or other property
now or hereafter securing the Guaranteed Obligations may be released,
exchanged, substituted, compromised or subordinated in whole or in part or any
security may be added, and (v) the Administrative Agent may proceed against the
Guarantor or any Obligor without proceeding against any other Obligor.

         (e)      Guarantor Bound. The Guarantor will remain bound under this
Guaranty notwithstanding any changes, extensions, exchanges, substitutions,
releases, compromises, subordinations, amendments, waivers or modifications or
any other circumstances, whether or not referred to in CLAUSES (C) OR (D)
above, which might otherwise constitute a legal or equitable discharge of a
guaranty.

         (f)      Absolute Obligation. The obligations of the Guarantor
hereunder are irrespective of and shall not be dependent upon or affected by
(i) the validity, legality or enforceability of the Loan Agreement, the Note(s)
or any Loan Document, (ii) the existence, value or condition of any of the
Collateral or other security for the Guaranteed Obligations, (iii) the
validity, perfection or priority of the Security Interest in any of the
Collateral or other security, (iv) any action or failure to take action by the
Administrative Agent or any Lender under, or with respect to, the Loan
Agreement, the Note(s), any Loan Document, any Guaranteed Obligation, any
Obligor or any of the Collateral or other security, (v) any other dealings
among the Administrative Agent, the Lenders, the Borrowers or any Obligor, or
(vi) any present or future law or order of any government or agency thereof
purporting to reduce, amend or otherwise affect any obligations of the
Borrowers or any Guarantor.

         (g)      Recovery of Payments. In the event that any or all of the
amounts guaranteed by the Guarantor are or were paid by the Borrowers or any
other Obligor or are or were paid or reduced by application of the proceeds of
any Collateral, and all or any part of such payment is recovered from the
Administrative Agent or any Lender under any applicable bankruptcy or
insolvency law or otherwise, the liability of the Guarantor under this Guaranty
shall continue and remain in full force and effect to the extent permitted by
Applicable Law.

         (h)      Subordination of Reimbursement, Subrogation. Any and all
rights of subrogation, indemnification, reimbursement, contribution or similar
rights which the Guarantor may have against any Borrower or any other Obligor
or any Collateral or otherwise shall be subordinate to any and all rights which
the Lender may have against such Borrower or such

                                      H-3

<PAGE>

Obligor or any such Collateral pursuant to the Loan Agreement, the Notes or any
of the Loan Documents and the Guarantor will not enforce or attempt to enforce
any such right of subrogation, indemnification, reimbursement, contribution or
any similar right until all amounts guaranteed by it have been indefeasibly
paid in full. The provisions of this SUBSECTION (H) shall survive the
termination of this Guaranty.

         (i)      Binding Nature of Certain Adjudications. Upon written notice
of the institution by the Administrative Agent or any Lender of any action or
proceedings, legal or otherwise, for the adjudication of any controversy with
the Borrowers (or any of them), the Guarantor will be conclusively bound by the
adjudication in any such action or proceedings and by a judgment, award or
decree entered therein. The Guarantor waives the right to assert in any action
or proceeding brought by the Administrative Agent or any Lender, upon the Loan
Agreement, the Note(s) or any Loan Document, any offsets or counterclaims which
such Guarantor may have with respect thereto (other than (subject to SECTION
2(G)) payment of the Secured Obligations).

         (j)      Validity and Enforceability of Guaranty. The Guarantor will
take all action required so that the guaranty contained herein will at all
times be a binding obligation of the Guarantor enforceable in accordance with
its terms.

         Section 3.        Representations and Warranties. The Guarantor
represents and warrants to the Administrative Agent and the Lenders as follows:

         (a)      Organization; Power; Qualification. The Guarantor is a
corporation or limited liability company, duly organized, validly existing and
in good standing under the laws of its jurisdiction of incorporation or
formation, has the power and authority to own its properties and to carry on
its business as now being and hereafter proposed to be conducted and is duly
qualified and authorized to do business in each jurisdiction in which the
character of its properties or the nature of its business requires such
qualification or authorization except to the extent its failure to be so
qualified or authorized could not reasonably be expected to have a Materially
Adverse Effect.

         (b)      Authorization of Guaranty. The Guarantor has the right and
power and has taken all necessary action to authorize it to guarantee the
Guaranteed Obligations hereunder and to execute, deliver and perform this
Guaranty in accordance with its terms. This Guaranty has been duly executed and
delivered by the duly authorized officers of the Guarantor and is a legal,
valid and binding obligation of the Guarantor enforceable in accordance with
its terms.

         (c)      Compliance of Guaranty With Laws, Etc. The execution,
delivery and performance of this Guaranty in accordance with its terms and the
guaranty of the Guaranteed Obligations hereunder do not and will not, by the
passage of time, the giving of notice or otherwise, (i) require any Government
Approval or violate any Applicable Law relating to the Guarantor, (ii) conflict
with, result in a breach of or constitute a default under (A) the articles of
incorporation or by-laws or any other constituent documents of the Guarantor,
(B) any material provisions of any indenture, agreement or other instrument to
which the Guarantor is a party or by which it or any of its properties may be
bound or (C) any Governmental Approval, or (iii) result in or require the
creation or imposition of any Lien upon or with respect to any property

                                      H-4

<PAGE>

now owned or hereafter acquired by the Guarantor, except Liens created pursuant
to the Loan Documents.

         (d)      Financial Interest. The Guarantor is a Wholly Owned
Subsidiary of Russell Corporation and is engaged in a related and mutually
interdependent business with the Borrowers and will derive indirect financial
and business advantages and benefits from the Loans and other financial
accommodations that the Lenders may make to the Borrowers

         Section 4.        Litigation. THE GUARANTOR, THE ADMINISTRATIVE
AGENT AND EACH LENDER HEREBY KNOWINGLY, INTENTIONALLY AND VOLUNTARILY WAIVE
TRIAL BY JURY IN ANY ACTION OR PROCEEDING OF ANY KIND OR NATURE IN ANY COURT
IN WHICH AN ACTION MAY BE COMMENCED BY OR AGAINST THE GUARANTOR ARISING OUT
OF THIS GUARANTY OR OUT OF THE GUARANTOR SECURITY AGREEMENT OR ANY OTHER LOAN
DOCUMENT AMONG OR BETWEEN THE GUARANTOR, ANY LENDER AND THE ADMINISTRATIVE
AGENT, OR BY REASON OF ANY OTHER CAUSE OR DISPUTE WHATSOEVER BETWEEN THE
GUARANTOR AND THE ADMINISTRATIVE AGENT OR ANY LENDER OF ANY KIND OR NATURE. THE
GUARANTOR, THE ADMINISTRATIVE AGENT AND EACH LENDER HEREBY AGREE THAT THE
SUPERIOR COURT OF THE STATE OF GEORGIA SITTING IN FULTON COUNTY AND THE UNITED
STATES DISTRICT COURT OF THE NORTHERN DISTRICT OF GEORGIA, AND ANY APPELLATE
COURT FROM ANY THEREOF, SHALL HAVE NONEXCLUSIVE JURISDICTION TO HEAR AND
DETERMINE ANY CLAIMS OR DISPUTES BETWEEN THE GUARANTOR AND THE ADMINISTRATIVE
AGENT OR SUCH LENDER, PERTAINING DIRECTLY OR INDIRECTLY TO THIS GUARANTY OR THE
LOAN DOCUMENTS OR TO ANY MATTER ARISING THEREFROM. THE GUARANTOR EXPRESSLY
SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR
PROCEEDING COMMENCED IN SUCH COURTS, HEREBY WAIVING PERSONAL SERVICE OF THE
SUMMONS AND COMPLAINT, OR OTHER PROCESS OR PAPERS ISSUED THEREIN AND AGREEING
THAT SERVICE OF SUCH SUMMONS AND COMPLAINT OR OTHER PROCESS OR PAPERS MAY BE
MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO THE GUARANTOR AT THE ADDRESS
OF THE GUARANTOR SET FORTH HEREIN. THE NONEXCLUSIVE CHOICE OF FORUM SET FORTH
IN THIS SECTION SHALL NOT BE DEEMED TO PRECLUDE THE ENFORCEMENT OF ANY JUDGMENT
OBTAINED IN SUCH FORUM OR THE TAKING OF ANY ACTION UNDER THIS AGREEMENT TO
ENFORCE SAME IN ANY APPROPRIATE JURISDICTION.

         Section 5.        Right of Setoff. Upon the occurrence and during
the continuation of any Event of Default, each Lender is hereby authorized at
any time and from time to time, to the fullest extent permitted by law, to set
off and apply any and all deposits (general or special, time or demand,
provisional or final) at any time held and other indebtedness at any time owing
by such Lender to or for the credit or the account of the Guarantor against any
and all of the Guaranteed Obligations now or hereafter existing, whether or not
demand shall have been made under this Guaranty and although such Guaranteed
Obligations may be contingent and unmatured. Each Lender agrees promptly to
notify the Guarantor after any such setoff and application made by such Lender,
provided that the failure to give such notice shall not affect

                                      H-5

<PAGE>

the validity of such setoff and application. The rights of each Lender under
this Section are in addition to any other rights and remedies (including,
without limitation, other rights of setoff) which such Lender may have.

         Section 6.        Titles and Captions. Titles and captions of Sections
and subsections in this Guaranty are for convenience only, and neither limit
nor amplify the provisions of this Guaranty.

         Section 7.        Severability of Provisions. Any provision of this
Guaranty which is prohibited or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective only to the extent of such prohibition or
unenforceability without invalidating the remainder of such provision or the
remaining provisions hereof or affecting the validity or enforceability of such
provision in any other jurisdiction.

         Section 8.        Governing Law. This Guaranty shall be construed in
accordance with and governed by the law of the State of Georgia, without regard
to principles of conflicts of laws.

         Section 9.        Counterparts. This Guaranty may be executed in any
number of counterparts, each of which shall be deemed to be an original and
shall be binding upon all parties, their successors and assigns.

         Section 10.       Miscellaneous. This Guaranty and the other
agreements contemplated by this Guaranty supersede all prior negotiations,
agreements and understandings, and constitute the entire agreement between the
parties with respect to the subject matter thereof. All the provisions of this
Guaranty shall be binding upon the Guarantor and its successors and assigns,
and each Lender may assign or transfer any of its rights under this Guaranty in
connection with the transfer of its interests under the Loan Agreement in
accordance with the terms thereof. Any term, covenant, agreement or condition
of this Guaranty may be amended or waived, and any departure therefrom may be
consented to, if, but only if, such amendment, waiver or consent is in writing
and is signed by the Required Lenders and, in the case of any amendment, also
by the Guarantor. Unless otherwise specified in such waiver or consent, a
waiver or consent given hereunder shall be effective only in the instance and
for the specific purpose for which given and no waiver of any condition, or of
the breach of any term, provision, warranty, representation, agreement or
covenant contained in this Guaranty, whether by conduct or otherwise, in any
one or more instances shall be deemed or construed as a further or continuing
waiver of any such condition or breach or a waiver of any other condition or of
the breach of any other term, provision, warranty, representation, agreement or
covenant contained in this Guaranty. The failure of the Administrative Agent or
any Lender at any time or times to require performance of any provisions of
this Guaranty shall in no manner affect the right to enforce the same. Whenever
the context so requires, the singular number shall include the plural and the
plural shall include the singular, and the gender of any pronoun shall include
the other genders.

         Section 11.       Notices. All notices and other communications
provided for hereunder shall be in writing and given in accordance with the
provisions of SECTION 16.1 of the Loan Agreement and such provisions are hereby
incorporated herein by this reference as if fully

                                      H-6

<PAGE>

set forth herein. The address of the Guarantor for such purposes shall be as
set forth on the signature page hereof, or such other address notice of which
is given in accordance with the provisions hereof, and the address of the
Lenders shall be as provided from time to time pursuant to SECTION 16.1 of the
Loan Agreement. The Guarantor agrees that if any notification of intended
disposition of Collateral or other security for the Guaranteed Obligations or
of any other act by the Administrative Agent or any Lender is required by law
and a specific time period is not stated therein, such notification given in
accordance with the provisions of this SECTION 11, at least ten (10) days prior
to such disposition or act shall be deemed reasonable and properly given.

         Section 12.       Limitation on Guaranteed Obligations. The
obligations of the Guarantor hereunder shall be limited to an aggregate amount
that is equal to the largest amount that would not render the obligations of
the Guarantor hereunder subject to avoidance under Section 548 of the United
States Bankruptcy Code (Title 11 of the United States Code) or any comparable
provision of Applicable Law.

                                      H-7

<PAGE>

         IN WITNESS WHEREOF, the Guarantor has caused this Guaranty to be
executed by its duly authorized officer(s) as of the day and year first written
above.

 [CORPORATE SEAL]                      [GUARANTOR]

                                       By:
                                          --------------------------------------
                                       Name:
                                            ------------------------------------
                                       Title:
                                             -----------------------------------

                                       Address:

Attest:
       ---------------------------     -----------------------------------------
        Name:
             ---------------------     -----------------------------------------
        Title:
              --------------------     -----------------------------------------

                                      H-8

<PAGE>

                                                                      EXHIBIT I

                      FORM OF GUARANTOR SECURITY AGREEMENT

         THIS GUARANTOR SECURITY AGREEMENT, dated as of April 18, 2002
(hereinafter, the "Agreement"), is made by ____________________________, a
______________________ corporation (the "Grantor"), in favor of FLEET CAPITAL
CORPORATION, a Rhode Island corporation, in its capacity as administrative
agent (the "Administrative Agent") for the financial institutions (the
"Lenders") party from time to time to the Loan and Security Agreement dated as
of April 18, 2002 (the same as it may be amended, modified or supplemented or
restated, the "Loan Agreement") by and among Russell Corporation, an Alabama
corporation ("Russell"), and certain of its Subsidiaries (each, a "Borrower"
and collectively, the "Borrowers"), the Lenders, and the Administrative Agent
(the Administrative Agent, together with any successor agent under the Loan
Agreement, also referred to as the "Secured Party" herein). Unless otherwise
defined herein, terms defined in the Loan Agreement are used herein as therein
defined.

                             Preliminary Statement

         As a condition precedent to the Lenders' making loans and other
financial accommodations to the Borrowers under the Loan Agreement, the
obligations of the Borrowers under which have been guaranteed by the Grantor
pursuant to a Guaranty dated as of even date herewith (the principal, interest,
fees, expenses and other indebtedness, obligations and liabilities of Grantor
under said Guaranty, (including, without being limited to, the Guaranteed
Obligations as defined therein) and this Agreement and all other indebtedness,
obligations and liabilities of the Grantor to the Secured Party and the
Lenders, whether direct or indirect, absolute or contingent, due or to become
due, now existing or hereafter arising under the Loan Documents, being
hereinafter referred to collectively as the "Secured Obligations"), the
Administrative Agent and the Lenders have required that Grantor shall have
granted the security interest contemplated by this Agreement.

         NOW, THEREFORE, in consideration of the premises and in order to
induce the Lenders to continue to make loans and other financial accommodations
to the Borrowers, the Grantor hereby agrees as follows:

         SECTION 1.        Grant of Security. As security for payment and
performance of the Secured Obligations, the Grantor hereby conveys, mortgages,
pledges, assigns, transfers, sets over, grants and delivers to the Secured
Party a continuing security interest in all of the Grantor's right, title and
interest in and to the following property, wherever located, whether now owned
or existing or hereafter acquired or arising (hereinafter referred to as the
"Collateral"):

         (a)      (i) all rights to the payment of money or other forms of
consideration of any kind (whether classified under the UCC as accounts,
chattel paper, general intangibles or otherwise) including, but not limited to,
accounts receivable, letter-of-credit rights, chattel paper, tax refunds,
insurance proceeds, any rights under contracts not yet earned by performance
and not evidenced by an instrument or chattel paper, notes, drafts,
instruments, documents,

                                      I-1

<PAGE>

acceptances and all other debts, obligations and liabilities in whatever form
from any Person, (ii) all guaranties, security, other supporting obligations
and Liens securing payment thereof, (iii) all goods, whether now owned or
hereafter acquired, and whether sold, delivered, undelivered, in transit or
returned, which may be represented by, or the sale or lease of which may have
given rise to, any such right to payment or other debt, obligation or
liability, and (iv) all proceeds of any of the foregoing (the foregoing,
collectively, "Accounts"),

         (b)      (i) all inventory, (ii) all goods intended for sale or lease
or for display or demonstration, (iii) all work-in-process, (iv) all raw
materials and other materials and supplies of every nature and description used
or which might be used in connection with the manufacture, packing, shipping,
advertising, selling, leasing or furnishing of goods or services or otherwise
used or consumed in the conduct of business, and (v) all documents evidencing
and general intangibles relating to any of the foregoing (the foregoing,
collectively, "Inventory"),

         (c)      (i) all machinery, apparatus, equipment, motor vehicles,
tractors, trailers, rolling stock, fittings, fixtures and other tangible
personal property (other than Inventory) of every kind and description, (ii)
all tangible personal property (other than Inventory) and fixtures used in the
Grantor's business operations or owned by the Grantor or in which the Grantor
has an interest, and (iii) all parts, accessories and special tools and all
increases and accessions thereto and substitutions and replacements therefor,
excluding, however, any such property that is subject to a lease or Lien
permitted to exist by this Agreement, the terms of which prohibit the creation
of the Security Interest therein, for so long as such prohibition remains in
effect (the foregoing, collectively, "Equipment"),

         (d)      all general intangibles, choses in action and causes of
action and all other intangible personal property of every kind and nature
(other than Accounts), including, without limitation, commercial tort claims,
Intellectual Property, Equity Interests, corporate or other business records,
inventions, designs, blueprints, plans, specifications, trade secrets,
goodwill, computer software, customer lists, registrations, licenses,
franchises, tax refund claims, reversions or any rights thereto and any other
amounts payable to such Person from any Benefit Plan, Multiemployer Plan or
other employee benefit plan, rights and claims against carriers and shippers,
rights to indemnification, business interruption insurance and proceeds
thereof, property, casualty or any similar type of insurance and any proceeds
thereof, the beneficiary's interest in proceeds of insurance covering the lives
of key employees and any letter of credit, guarantee, claims, security
interest, supporting obligation or other security for the payment by an Account
Debtor of any of the Accounts (the foregoing, collectively, "General
Intangibles"),

         (e)      any demand, time, savings, passbook, money market or like
depository account, and all certificates of deposit, maintained with a bank,
savings and loan association, credit union or like organization, other than an
account evidenced by a certificate of deposit that is an instrument under the
UCC (the foregoing, collectively, "Deposit Accounts"),

         (f)      all certificated and uncertificated securities, all security
entitlements, all securities accounts, all commodity contracts, all commodity
accounts and all other investment property (the foregoing, collectively,
"Investment Property"),

                                      I-2

<PAGE>

         (g)      (i) any investment account maintained by or on behalf of the
Grantor with the Administrative Agent or any Lender or any Affiliate of the
Administrative Agent or any Lender, (ii) any agreement governing such account,
(iii) all cash, money, notes, securities, instruments, goods, accounts,
documents, chattel paper, general intangibles and other property now or
hereafter held by the Administrative Agent or any Lender or any Affiliate of
the Administrative Agent or any Lender on behalf of the Grantor in connection
with such investment account or deposited by the Grantor or on the Grantor's
behalf to such investment account or otherwise credited thereto for the
Grantor's benefit, or distributable to the Grantor from such investment
account, together with all contracts for the sale or purchase of the foregoing,
(iv) all of the Grantor's right, title and interest with respect to the
deposit, investment, allocation, disposition, distribution or withdrawal of the
foregoing, (v) all of the Grantor's right, title and interest with respect to
the making of amendments, modifications or additions of or to the terms and
conditions under which the investment account or investments maintained therein
is to be maintained by the Grantor, the Administrative Agent, any Lender or any
Affiliate of the Administrative Agent or any Lender on the Grantor's behalf,
and (vi) all of the Grantor's books, records and receipts pertaining to or
confirming any of the foregoing (the foregoing, collectively, "Investment
Accounts"),

         (h)      all cash or other property deposited with the Administrative
Agent or any Lender or any Affiliate of the Administrative Agent or any Lender
or which the Administrative Agent, for its benefit and for the benefit of the
Lenders, or any Lender or such Affiliate is entitled to retain or otherwise
possess as collateral pursuant to the provisions of this Agreement or any of
the Loan Documents or any agreement relating to any Letter of Credit,
including, without limitation, amounts on deposit in the Cash Collateral
Account,

         (i)      all goods and other property, whether or not delivered, (i)
the sale or lease of which gives or purports to give rise to any Account,
including, but not limited to, all merchandise returned or rejected by or
repossessed from customers, or (ii) securing any Account, including, without
limitation, all rights as an unpaid vendor or lienor (including, without
limitation, stoppage in transit, replevin and reclamation) with respect to such
goods and other properties,

         (j)      all mortgages, deeds to secure debt and deeds of trust on
real or personal property, guaranties, leases, security agreements, supporting
obligations and other agreements and property which secure or relate to any
Account or other Collateral or are acquired for the purpose of securing and
enforcing any item thereof,

         (k)      all documents of title, including bills of lading and
warehouse receipts, policies and certificates of insurance, securities, chattel
paper and other documents and instruments,

         (l)      all files, correspondence, computer programs, tapes, disks
and related data processing software which contain information identifying or
pertaining to any of the Collateral or any Account Debtor or showing the
amounts thereof or payments thereon or otherwise necessary or helpful in the
realization thereon or the collection thereof, and

                                      I-3

<PAGE>

         (m)      any and all products and cash and non-cash proceeds of the
foregoing (including, but not limited to, any claims to any items referred to
in this definition and any claims against third parties for loss of, damage to
or destruction of any or all of the Collateral or for proceeds payable under or
unearned premiums with respect to policies of insurance) in whatever form,
including, but not limited to, cash, negotiable instruments and other
instruments for the payment of money, chattel paper, security agreements and
other documents.

Notwithstanding anything herein to the contrary, except as specified in the
Loan Agreement, the Collateral shall not include (i) any agreement with a third
party existing on the date hereof that prohibits the grant of a Lien (as
defined in the Loan Agreement) on (but not merely the assignment of or of any
interest in) such agreement or any Grantor's rights thereunder without the
consent of such third party or under which a consent to such grant is otherwise
required, which consent has not been obtained, except to the extent provided by
Sections 9-406 through 9-409 of the Uniform Commercial Code, or (ii) any
license, permit or other Governmental Approval that, under the terms and
conditions of such Governmental Approval or under Applicable Law, cannot be
subjected to a Lien in favor of the Administrative Agent without consent which
consent has not been obtained; PROVIDED, HOWEVER, that the Collateral shall
include all items excluded pursuant to CLAUSE (i) OR (ii) from and after the
date on which the requisite consent is obtained; and, PROVIDED FURTHER, that
the Grantor and the other Loan Parties may, after the Effective Date, enter
into agreements containing the prohibition described in CLAUSE (i) if the value
of the property subject thereto and which would otherwise constitute
Collateral, when added to the value of all other property subject to agreements
entered into after the Effective Date and including such prohibition, would not
exceed $10,000,000.

         SECTION 2.        Grantor Remains Liable. Anything contained herein
to the contrary notwithstanding, (a) the Grantor shall remain liable under the
contracts and agreements included in the Collateral to the extent set forth
therein to perform all of its duties and obligations thereunder to the same
extent as if this Agreement had not been executed, (b) the exercise by the
Secured Party of any of the rights hereunder shall not release the Grantor from
any of its duties or obligations under the contracts and agreements included in
the Collateral, and (c) the Secured Party shall not have any obligation or
liability under the contracts and agreements included in the Collateral by
reason of this Agreement, nor shall the Secured Party be obligated to perform
any of the obligations or duties of the Grantor thereunder or to take any
action to collect or enforce any claim for payment assigned hereunder.

         SECTION 3.        Representations and Warranties. The Grantor
represents and warrants as follows:

         (a)      The Grantor is a corporation or a limited liability company,
duly organized, validly existing and in good standing under the laws of its
jurisdiction of incorporation or formation, has the power and authority to own
its properties and to carry on its business as now being and as hereafter
proposed to be conducted and is duly qualified and authorized to do business in
each jurisdiction in which the character of its properties or the nature of its
business requires such qualification or authorization, except to the extent its
failure to be so qualified or authorized could not reasonably be expected to
have a Materially Adverse Effect.

                                      I-4

<PAGE>

         (b)      The Grantor has the right and power, and has taken all
necessary action to authorize it, to execute, deliver and perform this
Agreement in accordance with its terms. This Agreement has been duly executed
and delivered by the duly authorized officers of the Grantor and is a legal,
valid and binding obligation of the Grantor, enforceable in accordance with its
terms.

         (c)      The execution, delivery and performance of this Agreement in
accordance with its terms does not and will not, by the passage of time, the
giving of notice or otherwise,

                           (i)      require any Governmental Approval or
         violate any Applicable Law relating to the Grantor,

                           (ii)     conflict with, result in a breach of or
         constitute a default under the articles of incorporation or bylaws or
         any other constituent document of the Grantor, any material provisions
         of any indenture, agreement or other instrument to which the Grantor
         is a party or by which it or any of its property may be bound or any
         Governmental Approval relating to the Grantor or

                           (iii)    result in or require the creation or
         imposition of any Lien upon or with respect to any property now owned
         or hereafter acquired by the Grantor other than the security interest
         contemplated by this Agreement.

         (d)      Except as set forth on Schedule 7.1(k) to the Loan Agreement,
there are no actions, suits or proceedings pending (nor, to the knowledge of
the Grantor, are there any actions, suits or proceedings threatened, or a
reasonable basis therefor) against or in any way relating to or affecting the
Grantor before any court, governmental agency or arbitrator, which may
materially adversely affect the financial condition or operations of the
Grantor, except actions, suits or proceedings of the character normally
incident to the kind of business conducted by the Grantor which, if adversely
determined, would not singly or in the aggregate have a Materially Adverse
Effect.

         (e)      All of the Equipment and Inventory is located at (or, in the
case of Inventory, is in transit to) one the locations set forth in PART I of
EXHIBIT A hereto except with respect to Inventory, as otherwise disclosed to
Administrative Agent in writing.

         (f)      The address of the chief executive office of the Grantor is
set forth in PART II of EXHIBIT A hereto. The address(es) of such chief
executive office has not been changed during the year preceding the date
hereof.

         (g)      The office(s) where the Grantor keeps its records concerning
the Accounts and originals of chattel paper, if any, which evidences Accounts
is located at the address set forth in PART III of EXHIBIT A hereto and except
as otherwise indicated in said PART III of EXHIBIT A, such office(s) has (have)
been located at such address(es) continuously for the past year. None of the
Accounts is evidenced by a promissory note or other instrument which has not
been delivered to the Secured Party at its request.

         (h)      If the business of the Grantor has been conducted under a
different name or names during the last five years, such name(s) is (are) set
forth in PART IV of EXHIBIT A

                                      I-5

<PAGE>

hereto. Also set forth in PART IV of EXHIBIT A hereto is the exact legal name
of the Grantor, its jurisdiction of incorporation or formation and the
organizational number issued thereby, if any.

         (i)      The Grantor owns the Collateral free and clear of any lien,
security interest, charge or encumbrance except for the security interest
created by this Agreement, Permitted Liens, and except as may be set forth in
EXHIBIT B attached hereto and made a part hereof. Except as may be set forth on
EXHIBIT B, to the knowledge of the Grantor, no effective financing statement or
other instrument similar in effect covering all or any part of the Collateral
is on file in any recording office, except such as may have been filed in favor
of the Secured Party relating to this Agreement.

         (j)      This Agreement creates a valid security interest in the
Collateral, securing the payment of the Secured Obligations.

         (k)      Except for the filing of UCC financing statements in the
appropriate jurisdictions, no authorization, approval or other action by, and
no notice to or filing with, any governmental authority or regulatory body is
required for the grant by the Grantor of the security interest granted hereby
or for the execution, delivery or performance of this Agreement by the Grantor.

         SECTION 4.        Further Assurances. (a) The Grantor agrees that
from time to time, at the expense of the Grantor, the Grantor shall promptly
execute and deliver all further instruments and documents, and take all further
action, that may be necessary or desirable, or that the Secured Party may
reasonably request, in order to perfect and protect any security interest
granted or purported to be granted hereby or to enable the Secured Party to
exercise and enforce its rights and remedies hereunder with respect to any
Collateral. Without limiting the generality of the foregoing, the Grantor shall
take all actions contemplated by SECTION 8.2(b) of the Loan Agreement.

         (b)      The Grantor hereby authorizes the Secured Party to file one
or more financing or continuation statements, and amendments thereto, relative
to all or any part of the Collateral without the signature of the Grantor where
permitted by law. The Administrative Agent will endeavor to give the Grantor
notice of the filing of any such statements or amendments, which may be given
by delivery of a copy of such filing, but shall not be liable for its failure
to deliver any such notice or copy.

         (c)      The Grantor shall furnish to the Secured Party from time to
time statements and schedules further identifying and describing the Collateral
and such other reports in connection with the Collateral as the Secured Party
may reasonably request, all in reasonable detail.

         (d)      The Grantor shall deliver to the Secured Party, for the
benefit of the Lenders, a description of the facts forming the basis for any
commercial tort claim of the Grantor, promptly upon the occurrence thereof,
together with such confirmation of the security interest of the Secured Party
therein as the Secured Party may reasonably request.

                                      I-6

<PAGE>

         SECTION 5.        As to Equipment and Inventory. The Grantor shall:

         (a)      Keep the Equipment and Inventory (other than Inventory in
transit to such location, sold in the ordinary course of business or held by
third party processors or other contractors in accordance with the terms of the
Loan Agreement) at the places therefor specified in Section 3(e) or, with the
prior consent of the Secured Party, at such other places in jurisdictions where
all action required by Section 4 shall have been taken with respect to the
Equipment and Inventory.

         (b)      Cause the Equipment to be maintained in good repair, working
order and condition in all material respects, with reasonable allowance for
wear and tear, and from time to time make or cause to be made all needed and
appropriate repairs, renewals, replacements and additions to the Equipment
necessary for the conduct of its business, so that the business carried on in
connection therewith may be properly and advantageously conducted at all times.
Grantor shall give prompt notice to the Administrative Agent of any matter or
event which has resulted in, or may result in, the diminution of Collateral in
accordance with and subject to the provisions of Section 9.12(d) of the Loan
Agreement.

         (c)      Pay promptly when due all property and other taxes,
assessments and governmental charges or levies imposed upon, and all claims
(including claims for labor, materials and supplies) against, the Equipment and
Inventory, except to the extent the validity thereof is being contested in good
faith by appropriate proceedings.

         SECTION 6.        Insurance. The Grantor shall take all actions
contemplated by SECTION 9.8 of the Loan Agreement.

         SECTION 7.        As to Accounts. (a) The Grantor will not change
the location of its chief executive office or the place where it keeps its
books and records relating to the Collateral from the address set forth for it
on EXHIBIT A or change its name, its identity or corporate structure from that
in effect on the date hereof, complete any transaction that results in a change
of such Borrower's jurisdiction of organization or use any trade name not
listed on EXHIBIT A without giving the Administrative Agent 30 days' prior
written notice thereof accompanied by such evidence as the Administrative Agent
may reasonably require that all actions required to be taken pursuant to
ARTICLE 8 of the Loan Agreement have been taken, provided, that each of Russell
Athletic, Inc. and Russell Athletic West, Inc. may be dissolved, liquidated,
wound up or merged into Russell or another Loan Party pursuant to the
applicable provisions of the laws of such Loan Party's state of incorporation.
At the time of such dissolution, liquidation, winding up or merger, all of the
assets of such Loan Party will be distributed to Russell or another Loan Party.
The Grantor hereby expressly agrees to be bound by SECTION 9.1 of the Loan
Agreement.

         (b)      Except as otherwise provided in this SUBSECTION (b) or
SECTION 9.1 of the Loan Agreement, the Grantor shall continue to collect, at
its own expense, all amounts due or to become due the Grantor under the
Accounts. In connection with such collections, the Grantor may take (and,
during the continuation of an Event of Default, at the Secured Party's
direction, shall take) such action as the Grantor or the Secured Party may deem
necessary or advisable to enforce collection of the Accounts; PROVIDED,
HOWEVER, that the Secured Party shall have the right at any time, upon the
occurrence and during the continuation of an Event of Default, to

                                      I-7

<PAGE>

notify the Account Debtors or obligors under any Accounts of the assignment of
such Accounts to the Secured Party and to direct such Account Debtors or
obligors to make payment of all amounts due or to become due to the Grantor
thereunder directly to the Secured Party and, upon such notification and at the
expense of the Grantor, to enforce collection of any such Accounts, and to
adjust, settle or compromise the amount or payment thereof, in the same manner
and to the same extent as the Grantor might have done. After receipt by the
Grantor of the notice from the Secured Party referred to in the PROVISO to the
preceding sentence and during the continuation of an Event of Default, (i) all
amounts and proceeds (including instruments) received by the Grantor in respect
of the Accounts shall be received in trust for the benefit of the Secured Party
hereunder, shall be segregated from other funds of the Grantor and shall be
forthwith paid over to the Secured Party in the same form as so received (with
any necessary endorsement) to be held as cash collateral and either (A)
released to the Grantor so long as no Event of Default shall have occurred and
be continuing or (B) if any Event of Default shall have occurred and be
continuing, applied as provided by SECTION 13(b), and (ii) the Grantor shall
not adjust, settle or compromise the amount or payment of any Account, or
release wholly or partly any account debtor or obligor thereof, or allow any
credit or discount thereon.

         SECTION 8.        Transfers and Other Liens. The Grantor shall not
without the prior written consent of the Secured Party:

         (a)      Sell, assign (by operation of law or otherwise) or otherwise
dispose of any of the Collateral except as expressly permitted by and subject
to the terms of the Loan Agreement.

         (b)      Create or suffer to exist any Lien upon or with respect to
any of the Collateral to secure Indebtedness of any person or entity, except
for the security interest created by this Agreement and Permitted Liens.

         SECTION 9.        Secured Party Appointed Attorney-in-Fact. The
Grantor hereby irrevocably appoints the Secured Party the Grantor's
attorney-in-fact, with full authority in the place and stead of the Grantor and
in the name of the Grantor, the Secured Party or otherwise, during the
continuation of an Event of Default, to take any action and to execute any
instrument which the Secured Party may deem necessary or advisable to
accomplish the purposes of this Agreement (subject to the rights of the Grantor
under SECTION 7), including, without limitation:

                  (i)      to obtain and adjust insurance required to be paid
         to the Secured Party pursuant to SECTION 6,

                  (ii)     to ask demand, collect, sue for, recover, compound,
         receive and give acquittance and receipts for moneys due and to become
         due under or in respect of any of the Collateral,

                  (iii)    to receive, endorse, and collect any drafts or other
         instruments, documents and chattel paper, in connection with CLAUSE
         (i) or (ii) above, and

                  (iv)     to file any claims or take any action or institute
         any proceedings which the Secured Party may deem necessary or
         desirable for the collection of any of the

                                      I-8

<PAGE>

         Collateral or otherwise to enforce the rights of the Secured Party
         with respect to any of the Collateral.

         SECTION 10.       Secured Party May Perform. If the Grantor fails
to perform any agreement contained herein, the Secured Party may itself
perform, or cause performance of, such agreement, and the expenses of the
Secured Party incurred in connection therewith shall be payable by the Grantor
under SECTION 16.13 of the Loan Agreement.

         SECTION 11.       The Secured Party's Duties. The powers conferred
on the Secured Party hereunder are solely to protect its interest (for the
benefit of the Lenders), in the Collateral and shall not impose any duty upon
it to exercise any such powers. Except for the safe custody of any Collateral
in its possession and the accounting for moneys actually received by it
hereunder, the Secured Party shall have no duty as to any Collateral or as to
the taking of any necessary steps to preserve rights against prior parties or
any other rights pertaining to any Collateral.

         SECTION 12.       Events of Default. The occurrence of any "Event of
Default" as defined in the Loan Agreement shall constitute an Event of Default
hereunder.

         SECTION 13.       Remedies. If any Event of Default shall have
occurred and be continuing:

         (a)      The Secured Party may exercise in respect of the Collateral,
in addition to other rights and remedies provided for herein or otherwise
available to it under Applicable Law or in equity or otherwise, all the rights
and remedies of a secured party on default under the applicable Uniform
Commercial Code (the "Code") (whether or not the Code applies to the affected
Collateral) and also may do any or all of the following:

                  (i)      Declare any or all of the Secured Obligations then
         existing to be immediately due and payable and they shall thereupon
         become forthwith due and payable, without notice of any kind to the
         Grantor and without any other presentment, demand, protest, or notice
         of any kind, all of which are hereby expressly waived;

                  (ii)     Terminate the Lenders' obligations, if any, to make
         or to permit the Borrowers to make further Loans or extensions of
         credit or other financial accommodations to the Grantor;

                  (iii)    In the name of the Secured Party or in the name of
         the Grantor or otherwise, demand, sue for, collect or receive any
         money or property at any time payable or receivable on account of or
         in exchange for, or make any compromise or settlement deemed desirable
         with respect to, any of the Collateral, but the Secured Party shall be
         under no obligation so to do, and the Secured Party may extend the
         time of payment, arrange for payment installments, or otherwise modify
         the terms of, or release, any of the Collateral without thereby
         incurring responsibility to, or discharging or otherwise affecting any
         liability of, the Grantor;

                                      I-9

<PAGE>

                  (iv)     Enter upon the premises, or wherever the Collateral
         may be, and take possession thereof, and demand and receive such
         possession from any Person who has possession thereof;

                  (v)      Require the Grantor to, and the Grantor hereby
         agrees that it will at its expense and upon request of the Secured
         Party forthwith, assemble all or part of the Collateral as directed by
         the Secured Party and make it available to the Secured Party at a
         place to be designated by the Secured Party which is reasonably
         convenient to both parties;

                  (vi)     Without notice except as specified below and with or
         without taking the possession thereof, sell the Collateral or any part
         thereof in one or more parcels at public or private sale, at any
         location chosen by the Secured Party, for cash, on credit or for
         future delivery, and at such price or prices and upon such other terms
         as the Secured Party may deem commercially reasonable. The Grantor
         agrees that, to the extent notice of sale shall be required by law, at
         least ten days' notice to the Grantor of the time and place of any
         public sale or the time after which any private sale is to be made
         shall constitute reasonable notification, but notice given in any
         other reasonable manner or at any other reasonable time shall
         constitute reasonable notification. The Secured Party shall not be
         obligated to make any sale of Collateral regardless of notice of sale
         having been given. The Secured Party may adjourn any public or private
         sale from time to time by announcement at the time and place fixed
         therefor, and such sale may, without further notice, be made at the
         time and place to which it was so adjourned;

                  (vii)    In any action hereunder, the Secured Party shall be
         entitled to the appointment of a receiver, without notice, to take
         possession of all or any portion of the Collateral and to exercise
         such power as the court shall confer upon the receiver; and

                  (viii)   Apply, without notice, any cash or cash items
         constituting Collateral in the Secured Party's possession to payment
         of any of the Secured Obligations.

         The undersigned waives, to the extent permitted by Applicable Law, all
rights it has to prior notice (except as set forth in SECTION 16) and hearing
under the Constitution of the United States and the Uniform Commercial Codes
and constitution of the State of Georgia and under any other applicable statute
or constitution.

         (b)      All cash proceeds received by the Secured Party in respect of
any sale of, collection from, or other realization upon all or any part of the
Collateral may, in the discretion of the Secured Party, be held by the Secured
Party as collateral for, and/or then or at any time thereafter applied (after
payment of any amounts payable to the Secured Party pursuant to SECTION 14) in
whole or in part by the Secured Party against, all or any part of the Secured
Obligations in accordance with the provisions of SECTION 13.3 of the Loan
Agreement. Any surplus of such cash or cash proceeds held by the Secured Party
and remaining after payment in full of all the Secured Obligations shall be
paid over to the Grantor or to whomsoever may be lawfully entitled to receive
such surplus. The Grantor shall remain liable for any deficiency.

                                     I-10

<PAGE>

         SECTION 14.       Indemnity and Expenses. (a) The Grantor agrees to
indemnify the Secured Party from and against any and all claims, losses and
liabilities growing out of or resulting from this Agreement (including, without
limitation, enforcement of this Agreement), except claims, losses or
liabilities resulting from the Secured Party's gross negligence or willful
misconduct.

         (b)      The Grantor will upon demand pay to the Secured Party the
amount of any and all reasonable expenses, including the reasonable fees and
disbursements of its counsel and of any experts and agents, which the Secured
Party may incur in connection with (i) the perfection of any security interest
granted hereunder, (ii) the administration of this Agreement, (iii) the
custody, preservation, use or operation of, or the sale of, collection from, or
other realization upon, any of the Collateral, (iv) the exercise or enforcement
of any of the rights of the Secured Party hereunder, or (v) the failure by the
Grantor to perform or observe any of the provisions hereof.

         SECTION 15.       Amendments; Etc. No amendment or waiver of any
provision of this Agreement, nor consent to any departure by the Grantor
herefrom, shall in any event be effective unless the same shall be in writing
and signed by the Secured Party, and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given.

         SECTION 16.       Notices. All notices and other communications
hereunder shall be given in accordance with the provisions of SECTION 16.1 of
the Loan Agreement, to the Grantor at its address set forth on the signature
pages hereof (with a copy to the Borrowers), to the Secured Party at its
address set forth on the signature pages hereof, or as to either party at such
other address as shall be designated by such party in a written notice to each
other party complying as to delivery with the terms of this Section.

         SECTION 17.       Continuing Security Interest; Transfer of
Obligations. This Agreement shall create a continuing security interest in the
Collateral and shall (i) remain in full force and effect until payment in full
of the Secured Obligations, (ii) be binding upon the Grantor, its successors
and assigns, and (iii) inure to the benefit of the Secured Party and its
successors, transferees and assigns. Without limiting the generality of the
foregoing clause (iii), any Lender may assign or otherwise transfer the Secured
Obligations to another Person in accordance with the provisions of the Loan
Agreement and such Person shall thereupon become vested with all the benefits
in respect thereof granted to the Secured Party herein or otherwise. Upon the
payment in full of the Secured Obligations, the security interest granted
hereby shall terminate and all rights to the Collateral shall revert to the
Grantor. Upon any such termination, the Secured Party will, at the Grantor's
expense, execute and deliver to the Grantor such documents as the Grantor shall
reasonably request to evidence such termination.

         SECTION 18.       Governing Law; Terms. (a) This Agreement shall be
governed by and construed in accordance with the laws of the State of Georgia,
except as required by mandatory provisions of law and except to the extent that
the validity or perfection of the security interest hereunder, or remedies
hereunder, in respect of any particular Collateral are governed by the laws of
a jurisdiction other than the State of Georgia. Unless otherwise defined
herein, terms used in Article 9 of the Uniform Commercial Code of the State of
Georgia are used herein as therein defined.

                                     I-11

<PAGE>

         (b)      The Grantor hereby irrevocably and unconditionally submits,
for itself and its property, to the nonexclusive jurisdiction of the Superior
Court of the State of Georgia sitting in Fulton County and of the United States
District Court for the Northern District of Georgia, and any appellate court
from any thereof, in any action or proceeding arising out of or relating to
this Agreement, or for recognition or enforcement of any judgment and both
parties hereto hereby irrevocably and unconditionally agree that all claims in
respect of any such action or proceeding may be heard and determined in such
Georgia State court or, to the extent permitted by law, in such federal court.
Both parties hereto agree that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by
suit on the judgment or in any other manner provided by law. Nothing in this
Agreement shall affect any right that the Administrative Agent or any Lender
may otherwise have to bring any action or proceeding relating to this Agreement
against the Grantor or its properties in the courts of any jurisdiction.

         SECTION 19.       Conflict with Loan Agreement. To the extent any
provision hereof shall be in conflict with or inconsistent with any provision
of the Loan Agreement, the provision of the Loan Agreement shall control.

         SECTION 20.       Grantor's Representative. Russell shall act under
this Agreement as the representative of the Grantor, and the Grantor hereby
appoints Russell as its representative hereunder for all purposes, including
receiving notices and communications to the Grantor from the Administrative
Agent or any Lender. The Administrative Agent and the Lenders may rely, and
shall be fully protected in relying, on any report, information or any other
notice or communication made or given by Russell, whether in its own name or on
behalf of the Grantor and neither the Administrative Agent nor any Lender shall
have any obligation to make any inquiry or request any confirmation from or on
behalf of the Grantor as to the binding effect on it of any such report,
information, notice or communication.

                                     I-12

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed and delivered by their respective duly authorized officer(s)
as of the date first above written.

                                      GRANTOR:

                                      By:
                                         --------------------------------------
                                         Name:
                                              ---------------------------------
                                         Title:
                                               --------------------------------

                                         Address:

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

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

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

                                      SECURED PARTY:

                                      FLEET CAPITAL CORPORATION, as
                                      Administrative Agent

                                      By:
                                         --------------------------------------
                                         Name:
                                              ---------------------------------
                                         Title:
                                               --------------------------------

                                         Address: 300 Galleria Parkway
                                                  Suite 800
                                                  Atlanta, Georgia 30339
                                                  Attention: Loan Administration
                                                             Manager

                                     I-13

<PAGE>

                                   EXHIBIT A

                        To Guarantor Security Agreement
                         _____________________- Grantor
                   Fleet Capital Corporation - Secured Party

Part I - Present Location of Equipment and Inventory

Part II - Chief Executive Office of Grantor

Part III - Location of Accounts Records

Part IV - Names Used During Last Five Years, Jurisdiction of Organization,
Organizational Number

                                     I-14

<PAGE>

                                   EXHIBIT B
                        To Guarantor Security Agreement
                         _____________________- Grantor
                   Fleet Capital Corporation - Secured Party

                                  Prior Liens

                                     I-15

<PAGE>

                    SCHEDULES TO LOAN AND SECURITY AGREEMENT
     INFORMATION DISCLOSED IN ONE SCHEDULE SHALL BE DEEMED DISCLOSED IN ALL
                          OTHER APPLICABLE SCHEDULES.

                                 SCHEDULE 1.1A
                              ASSETS HELD FOR SALE

<TABLE>
<CAPTION>
                                                        APPROXIMATE
     LOCATION/DESCRIPTION                            ACREAGE/SQ. FOOTAGE
--------------------------------------------------------------------------------
<S>                                              <C>
MARIANNA DISTRIBUTION CENTER                     259,271 sq. ft./21.5 Acres
MARIANNA, FL

FLOYD, VA FACILITY                               50,904 sq. ft./11.51 Acres

ASHLAND, AL FACILITY                               29,000 sq. ft./4.5 Acres

LAFAYETTE, AL FACILITY                             81,750 sq. ft./9.9 Acres

SYLACAUGA, AL FACILITY                           137,485 sq. ft./12.5 Acres

PERSONNEL BUILDING                                   21,930 sq. ft./5 Acres
ALEXANDER CITY, AL

R&D BUILDING                                         42,464 sq. ft./5 Acres
ALEXANDER CITY, AL

SURPLUS LAND                                                       93 Acres
CARTHAGE, NC

MT. AIRY, NC                                                   74,748 sq ft
FRANKLIN STREET

FT PIERCE MALL                                                151,690 sq ft
FT. PIERCE, FL

FT WALTON MALL                                                 44,125 sq ft
FT. WALTON, FL

ALEXANDER CITY, AL                                             14,060 sq ft
DOWNTOWN OFFICES

COMMANDER HOUSE
ALEXANDER CITY, AL

5 ACRE TRACT - ACROSS FROM RETAIL STORE
ALEXANDER CITY, AL

5.8 ACRE TRACT ON US280
ALEXANDER CITY, AL
</TABLE>

                                       1

<PAGE>

10 ACRE TRACT BETWEEN AIRPORT RD. & US280
ALEXANDER CITY, AL

20 ACRE TRACT ON ELKAHATCHEE STREET
ALEXANDER CITY, AL

64 ACRE TRACT ACROSS FROM CENTRAL ALABAMA
COMMUNITY COLLEGE
ALEXANDER CITY, AL

12 ACRE TRACT AT INTERSECTION OF US280 & AL63
ALEXANDER CITY, AL

1.55 ACRE TRACT BETWEEN TECH CENTER & RADNEY SCHOOL
ALEXANDER CITY, AL

17.5 ACRE TRACT BETWEEN RADNEY SCHOOL & SPORTSPLEX
ALEXANDER CITY, AL

1,700 ACRE RUSSELL POND TRACT
ALEXANDER CITY, AL

                                       2

<PAGE>

                                 SCHEDULE 1.1B
                             PERMITTED INVESTMENTS

1.       Investments as of the Effective Date in American Sportswear S.A.
         (Brazil) pursuant to the Shareholders' Agreement dated September 30,
         1999 between Russell do Brasil Ltda. and Companhia de Tecidos Norte de
         Minas - Coteminas in an amount of less than $2,000,000

2.       Investments as of the Effective Date pursuant to Marmot Mountain Ltd.
         Second Amended and Restated Stockholder Agreement dated August 28,
         2001 in the approximate amount of $4,200,000

3.       Investments as of the Effective Date in Frontier Yarns, LLC in the
         approximate amount of $9,500,000

4.       Intercompany Debt owing by RUServicios, Sociedad Anonima to Russell,
         as evidenced by a promissory note in the principal amount of
         US$5,000,000

                                       3

<PAGE>

                                 SCHEDULE 1.1C
                                PERMITTED LIENS

         1.       UCC Financing Statements and Tax Liens

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------
      Debtor          Secured Party       Jurisdiction       File Number         File Date             Collateral
--------------------------------------------------------------------------------------------------------------------------
<S>                 <C>                  <C>                 <C>                 <C>              <C>
   Cross Creek         Pitney Bowes      North Carolina       001490763           8/11/97         Specified Equipment
  Apparel, Inc.     Credit Corporation    Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
   Cross Creek          Associates       North Carolina      19980038254          6/23/98         Specified Equipment
  Apparel, Inc.       Leasing, Inc.       Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
   Cross Creek       Telimagine, Inc.    North Carolina      20000008199          1/24/00         Specified Equipment
  Apparel, Inc.                           Secretary of
                    Assignee: Conseco        State
                      Finance Vendor
                         Services
                       Corporation

                    Assigned to Wells
                     Fargo Financial
                      Leasing, Inc.
--------------------------------------------------------------------------------------------------------------------------
   Cross Creek         Pitney Bowes      North Carolina      20000035920          4/7/00          Specified Equipment
  Apparel, Inc.     Credit Corporation    Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
   Cross Creek       Western Carolina    North Carolina      20000123088         12/20/00       Specified equipment and
  Apparel, Inc.       Forklift, Inc.      Secretary of                                         all attachments and parts
                        Assignee:            State
                         The CIT
                     Group/Equipment
                     Financing, Inc.
--------------------------------------------------------------------------------------------------------------------------
   Cross Creek      Russell Financial    North Carolina      20010508519L         8/7/01         Receivables, customer
   Apparel, LLC       Services, Inc.      Secretary of                                             agreements, goods,
                                             State                                             security for receivables,
                                                                                                 books and records, and
                                                                                                        proceeds
--------------------------------------------------------------------------------------------------------------------------
   Cross Creek          Associates       Surry County,        98-001171           6/24/98         Specified Equipment
  Apparel, Inc.       Leasing, Inc.      North Carolina
--------------------------------------------------------------------------------------------------------------------------
   Cross Creek       Vanguard Supreme    Surry County,        00-000893           4/12/00         Specified Equipment
  Apparel, Inc.                          North Carolina
--------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       4

<PAGE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------
      Debtor          Secured Party       Jurisdiction       File Number         File Date             Collateral
--------------------------------------------------------------------------------------------------------------------------
<S>                 <C>                  <C>                 <C>                 <C>              <C>

   Cross Creek       Western Carolina    Surry County,        00-002495          12/20/00              Specified
  Apparel, Inc.       Forklift, Inc.     North Carolina                                                 Equipment
                      Assignee: The
                       CIT Group /
                        Equipment
                     Financing, Inc.
--------------------------------------------------------------------------------------------------------------------------
   Cross Creek      Russell Financial       Alabama         B2001-30931FS         8/6/01         Receivables, customer
   Apparel, LLC       Services, Inc.      Secretary of                                             agreements, goods,
                                             State                                             security for receivables,
                                                                                                 books and records, and
                                                                                                        proceeds
--------------------------------------------------------------------------------------------------------------------------
   Cross Creek      Russell Financial     Cobb County,       033200109712         8/6/01         Receivables, customer
   Apparel, LLC       Services, Inc.        Georgia                                                agreements, goods,
                                                                                               security for receivables,
                                                                                                 books and records, and
                                                                                                        proceeds
--------------------------------------------------------------------------------------------------------------------------
DeSoto Mills, Inc.  Russell Financial       Alabama         B2001-30930FS         8/6/01         Receivables, customer
                      Services, Inc.      Secretary of                                             agreements, goods,
                                             State                                             security for receivables,
                                                                                                 books and records, and
                                                                                                        proceeds
--------------------------------------------------------------------------------------------------------------------------
DeSoto Mills, Inc.  Russell Financial     Cobb County,       033200109713         8/6/01         Receivables, customer
                      Services, Inc.        Georgia                                                agreements, goods,
                                                                                               security for receivables,
                                                                                                 books and records, and
                                                                                                        proceeds
--------------------------------------------------------------------------------------------------------------------------
     Russell         Thompson Tractor     Mississippi          01450813           7/17/00         Specified Equipment
  Corporation -         Co., Inc.         Secretary of
Jerzees Mossy Oak                            State
   Apparel Co.
--------------------------------------------------------------------------------------------------------------------------
     Russell          Fleet Leasing       Mississippi          01473623          10/23/00           Leased Equipment
   Corporation         Corporation        Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell         Thompson Tractor     Mississippi,          00-775            7/5/00          Specified Equipment
  Corporation -         Co., Inc.         Clay County
Jerzees Mossy Oak
   Apparel Co.
--------------------------------------------------------------------------------------------------------------------------
     Russell          Fleet Leasing       Mississippi,         00-1289           10/23/00           Leased Equipment
   Corporation         Corporation        Clay County
--------------------------------------------------------------------------------------------------------------------------
  Russell Corp.        Pitney Bowes         Alabama          B96-37418FS          9/9/96            Leased Equipment
                    Credit Corporation    Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       5

<PAGE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------
      Debtor          Secured Party       Jurisdiction       File Number         File Date             Collateral
--------------------------------------------------------------------------------------------------------------------------
<S>                 <C>                  <C>                 <C>                 <C>              <C>
     Russell         Thompson Tractor       Alabama          B96-47316FS         11/12/96         Specified Equipment
 Corporation - DC       Co., Inc.         Secretary of
      Mont.                                  State
--------------------------------------------------------------------------------------------------------------------------
     Russell         Thompson Tractor       Alabama          B96-50308FS          12/2/96         Specified Equipment
 Corporation - DC       Co., Inc.         Secretary of
      Mont.                                  State
--------------------------------------------------------------------------------------------------------------------------
     Russell          SunTrust Bank,        Alabama          B97-24882FS          6/11/97        Fixtures and Equipment
 Corporation and         Atlanta          Secretary of                                           relating to industrial
    Industrial                               State                                                    revenue bond
Development Board
  of the City of
 Ashland, Alabama
--------------------------------------------------------------------------------------------------------------------------
     Russell           Caterpillar          Alabama          B99-09151FS          3/3/99            Leased Equipment
   Corporation          Financial         Secretary of
                         Services            State
                       Corporation
--------------------------------------------------------------------------------------------------------------------------
     Russell          First Alabama         Alabama          B99-12512FS          3/23/99         Fixtures, Rights and
   Corporation      Bank (now Regions     Secretary of                                         Revenues relating to bond
                          Bank)              State
--------------------------------------------------------------------------------------------------------------------------
     Russell           Caterpillar          Alabama         B1999-25870FS         6/17/99           Leased Equipment
   Corporation          Financial         Secretary of
                         Services            State
                       Corporation
--------------------------------------------------------------------------------------------------------------------------
     Russell         Tubular Textile        Alabama         B1999-32512FS         8/4/99          Specified Equipment
   Corporation             LLC            Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell         Tubular Textile        Alabama         B1999-32513FS         8/4/99          Specified Equipment
   Corporation             LLC            Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell         EMC Corporation        Alabama         B1999-41255FS         10/4/99         Specified Equipment
   Corporation        Assignee: MLC       Secretary of
                       Group, Inc.           State
                       Assigned to
                     Wachovia Leasing
                       Corporation
--------------------------------------------------------------------------------------------------------------------------
     Russell            IBM Credit          Alabama         B2000-00677FS         1/5/00            Leased Equipment
   Corporation         Corporation        Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       6

<PAGE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------
      Debtor          Secured Party       Jurisdiction       File Number         File Date             Collateral
--------------------------------------------------------------------------------------------------------------------------
<S>                 <C>                  <C>                 <C>                 <C>              <C>
     Russell          Fleet Leasing         Alabama         B2000-03091FS         1/20/00           Leased Equipment
   Corporation         Corporation        Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell         Schlafhorst Inc.       Alabama         B2000-09605FS         3/7/00          Specified Equipment
   Corporation                            Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell           Pitney Bowes         Alabama         B2000-09862FS         3/8/00            Leased Equipment
   Corporation      Credit Corporation    Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell            IBM Credit          Alabama         B2000-13880FS         4/6/00            Leased Equipment
   Corporation         Corporation        Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell          Computer Sales        Alabama         B2000-14937FS         4/13/00           Leased Equipment
   Corporation        International,      Secretary of
                           Inc.              State
--------------------------------------------------------------------------------------------------------------------------
     Russell          Computer Sales        Alabama         B2000-18412FS         5/8/00            Leased Equipment
   Corporation        International,      Secretary of
                           Inc.              State
--------------------------------------------------------------------------------------------------------------------------
     Russell          Computer Sales        Alabama         B2000-26726FS         6/30/00           Leased Equipment
   Corporation        International,      Secretary of
                           Inc.              State
--------------------------------------------------------------------------------------------------------------------------
     Russell          Computer Sales        Alabama         B2000-28545FS         7/17/00           Leased Equipment
   Corporation        International,      Secretary of
                           Inc.              State
--------------------------------------------------------------------------------------------------------------------------
     Russell         Tubular Textile        Alabama         B2000-33671FS         8/21/00         Specified Equipment
   Corporation             LLC            Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell         Tubular Textile        Alabama         B2000-33672FS         8/21/00         Specified Equipment
   Corporation             LLC            Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell         Tubular Textile        Alabama         B2000-33673FS         8/21/00         Specified Equipment
   Corporation             LLC            Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell         Tubular Textile        Alabama         B2000-33674FS         8/21/00         Specified Equipment
   Corporation             LLC            Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell          Fleet Leasing         Alabama         B2000-41151FS        10/17/00           Leased Equipment
   Corporation         Corporation        Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       7

<PAGE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------
      Debtor          Secured Party       Jurisdiction       File Number         File Date             Collateral
--------------------------------------------------------------------------------------------------------------------------
<S>                 <C>                  <C>                 <C>                 <C>              <C>
     Russell          Fleet Leasing         Alabama         B2000-41152FS        10/17/00           Leased Equipment
   Corporation         Corporation        Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell          Fleet Leasing         Alabama         B2000-46919FS         12/4/00           Leased Equipment
   Corporation         Corporation        Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell          Fleet Leasing         Alabama         B2000-46921FS         12/4/00           Leased Equipment
   Corporation         Corporation        Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell          Fleet Capital         Alabama         B2001-05109FS         2/6/01            Leased Equipment
   Corporation          Leasing -         Secretary of
                    Technology Finance       State
--------------------------------------------------------------------------------------------------------------------------
     Russell          Fleet Capital         Alabama         B2001-05212FS         2/7/01            Leased Equipment
   Corporation          Leasing -         Secretary of
                    Technology Finance       State
--------------------------------------------------------------------------------------------------------------------------
     Russell          Fleet Capital         Alabama         B2001-09815FS         3/13/01           Leased Equipment
   Corporation           Leasing          Secretary of
                    Technology Finance       State
--------------------------------------------------------------------------------------------------------------------------
     Russell         Tubular Textile        Alabama         B2001-29176FS         7/26/01         Specified Equipment
   Corporation             LLC            Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
  Russell Corp.        Caterpillar          Alabama         B2001-29433FS         7/27/01         Specified Equipment
                        Financial         Secretary of
                         Services            State
                       Corporation
--------------------------------------------------------------------------------------------------------------------------
     Russell        Russell Financial       Alabama         B2001-30932FS         8/06/01        Receivables, customer
   Corporation        Services, Inc.      Secretary of                                             agreements, goods,
                                             State                                             security for receivables,
                                                                                                 books and records, and
                                                                                                        proceeds
--------------------------------------------------------------------------------------------------------------------------
     Russell         Business Credit        Florida          970000055629         3/10/97         Specified Equipment
   Corporation           Leasing          Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell        Copy Products Co.       Florida          980000248264         11/6/98         Specified Equipment
   Corporation                            Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       8

<PAGE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------
      Debtor          Secured Party       Jurisdiction       File Number         File Date             Collateral
--------------------------------------------------------------------------------------------------------------------------
<S>                 <C>                  <C>                 <C>                 <C>              <C>
     Russell          SunTrust Bank,        Judge of            175760            4/30/97            Real property,
 Corporation and         Atlanta            Probate,                                            improvements, fixtures,
  The Industrial                        Houston County,                                         equipment and leasehold
Development Board                           Alabama
  of the Town of
Columbia, Alabama
--------------------------------------------------------------------------------------------------------------------------
     Russell         Regions Bank as        Judge of            328642            6/9/98             Buildings and
   Corporation      Trustee, formerly       Probate,       (continuation of      (original       improvements to leased
                    First Alabama Bank     Montgomery       original file     filed 1/31/89,    realty, fixtures, rights
                                        County, Alabama     number 294349)       amendment       under Lease Agreement,
                                                                              filed 4/24/92,        Project Revenues
                                                                                   first
                                                                               continuation
                                                                               filed 9/7/93
--------------------------------------------------------------------------------------------------------------------------
     Russell         Tubular Textile        Judge of            65873             7/26/01         Specified Equipment
   Corporation             LLC           Probate, Pike
                                        County, Alabama
--------------------------------------------------------------------------------------------------------------------------
     Russell          Fleet Capital      Fulton County,     0602001002971         2/13/01         Specified Equipment
   Corporation           Leasing            Georgia
                    Technology Finance
--------------------------------------------------------------------------------------------------------------------------
     Russell          Fleet Capital      Fulton County,     0602001002972         2/13/01         Specified Equipment
   Corporation           Leasing            Georgia
                    Technology Finance
--------------------------------------------------------------------------------------------------------------------------
     Russell          Fleet Capital      Fulton County,     0602001002973         2/13/01         Specified Equipment
   Corporation           Leasing            Georgia
                    Technology Finance
--------------------------------------------------------------------------------------------------------------------------
     Russell          Fleet Leasing      Fulton County,     0602000005134         3/20/00         Specified Equipment
   Corporation         Corporation          Georgia
--------------------------------------------------------------------------------------------------------------------------
     Russell          Fleet Leasing      Fulton County,     0602000005074         3/20/00         Specified Equipment
   Corporation         Corporation          Georgia
--------------------------------------------------------------------------------------------------------------------------
     Russell          Fleet Leasing      Fulton County,     0602000001044         1/14/00         Specified Equipment
   Corporation         Corporation          Georgia
--------------------------------------------------------------------------------------------------------------------------
     Russell          Fleet Leasing      Fulton County,     0601999020368        10/20/99         Specified Equipment
   Corporation         Corporation          Georgia
--------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       9

<PAGE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------
      Debtor          Secured Party       Jurisdiction       File Number         File Date             Collateral
--------------------------------------------------------------------------------------------------------------------------
<S>                 <C>                  <C>                 <C>                 <C>              <C>
     Russell           Crown Credit         Muscogee         10695004422         10/19/95         Specified Equipment
   Corporation           Company        County, Georgia
--------------------------------------------------------------------------------------------------------------------------
     Russell           Crown Credit         Muscogee         10695004423         10/19/95         Specified Equipment
   Corporation           Company        County, Georgia
--------------------------------------------------------------------------------------------------------------------------
  Russell Corp.        Caterpillar       Barrow County,    007-2001-008219        7/27/01           Leased Equipment
                        Financial           Georgia
                         Services
                       Corporation
--------------------------------------------------------------------------------------------------------------------------
     Russell        Russell Financial     Cobb County,       033200109714         8/6/01         Receivables, customer
   Corporation        Services, Inc.        Georgia                                                agreements, goods,
                                                                                               security for receivables,
                                                                                                 books and records, and
                                                                                                        proceeds
--------------------------------------------------------------------------------------------------------------------------
     Russell           Development          Muscogee        106-95-005244        12/22/95          Documents, Goods,
   Corporation         Authority of     County, Georgia                                           Fixtures, Minerals,
                    Columbus, Georgia                                                                   Proceeds

                        (Assignee:                                                               Continued on 12/15/00
                      Synovus Trust                                                                with continuation
                         Company)                                                                    #106-00-003549
--------------------------------------------------------------------------------------------------------------------------
   The Russell        First American       Tennessee          961549999          11/27/96         Specified Equipment
   Corporation        National Bank       Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell          First American       Tennessee          982009178           1/29/98         Specified Equipment
Corporation d/b/a     National Bank       Secretary of
   Hubert Hodge                              State
   Printing Co.
--------------------------------------------------------------------------------------------------------------------------
   The Russell      Imation Financing      Tennessee          972064841           8/19/97           Leased Equipment
   Corporation           Services         Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell          Fleet Capital          Kansas            4572020            3/28/01           Leased Equipment
   Corporation           Leasing          Secretary of
                    Technology Finance       State
--------------------------------------------------------------------------------------------------------------------------
     Russell           Aliant Bank          Alabama       B 02-000005519 FS      01/07/02           Leased Equipment
   Corporation                            Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                      10
<PAGE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------
      Debtor          Secured Party       Jurisdiction       File Number         File Date             Collateral
--------------------------------------------------------------------------------------------------------------------------
<S>                 <C>                  <C>                 <C>                 <C>              <C>
     Russell          Fleet Business        Alabama        B 02-0117108 FS       03/04/02         Specified Equipment
   Corporation         Credit, LLC        Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell            GE Capital          Alabama        B 02 0104327 FS       02/26/02           Leased Equipment
   Corporation       Corporation and      Secretary of
                    Eplus Group, Inc.        State
--------------------------------------------------------------------------------------------------------------------------
     Russell           Citicorp Del         Alabama        B 02-0038001 FS        1/24/02         Specified equipment
   Corporation          Lease Inc.        Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell          Computer Sales        Alabama         2000-18412 FS         5/08/00           Leased equipment
   Corporation        International       Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell         Thompson Tractor       Alabama         2000-26320 FS         6/28/00       Specific equipment plus
Corporation/Jerzees     Co., Inc.         Secretary of                                                  proceeds
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell         Tubular Textile        Alabama        B 2001-36969 FS        9/24/01         Specified equipment
   Corporation             LLC            Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell           Caterpillar          Alabama        B 2001-46249 FS       12/05/01           Leased equipment
   Corporation          Financial         Secretary of
                         Services            State
--------------------------------------------------------------------------------------------------------------------------
     Russell           Caterpillar          Alabama         B 02-016240 FS        3/21/02           Leased equipment
   Corporation      Financial Services    Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell         Tubular Textile       Talledega            173298            7/27/01         Specified equipment
   Corporation             LLC             County, AL
--------------------------------------------------------------------------------------------------------------------------
     Russell         Tubular Textile       Talledega            173300            7/27/01         Specified equipment
   Corporation             LLC             County, AL
--------------------------------------------------------------------------------------------------------------------------
     Russell         Tubular Textile       Talledega            173299            7/27/01         Specified equipment
   Corporation             LLC             County, AL
--------------------------------------------------------------------------------------------------------------------------
     Russell         Tubular Textile       Tallapoosa           11754             7/26/00         Specified equipment
   Corporation             LLC             County, AL
--------------------------------------------------------------------------------------------------------------------------
     Russell         Tubular Textile       Tallapoosa           11755             7/26/00         Specified equipment
   Corporation             LLC             County, AL
--------------------------------------------------------------------------------------------------------------------------
     Russell         Tubular Textile       Tallapoosa           11756             7/26/00         Specified equipment
   Corporation             LLC             County, Al
--------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                      11

<PAGE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------
      Debtor          Secured Party       Jurisdiction       File Number         File Date             Collateral
--------------------------------------------------------------------------------------------------------------------------
<S>                 <C>                  <C>                 <C>                 <C>              <C>
     Russell         Tubular Textile       Tallapoosa           11757             7/26/00         Specified equipment
   Corporation             LLC             County, Al
--------------------------------------------------------------------------------------------------------------------------
     Russell          Fleet Business     Fulton County,        60023177           3/07/02         Specified equipment
   Corporation         Credit, LLC             GA
--------------------------------------------------------------------------------------------------------------------------
     Russell        State of New York       New York                              9/26/01         NY City Tax Warrant
   Corporation                             County, NY
--------------------------------------------------------------------------------------------------------------------------
     Russell        State of New York       New York                             11/20/01         NY City Tax Warrant
   Corporation                             County, NY
--------------------------------------------------------------------------------------------------------------------------
   Cross Creek           The CIT         North Carolina      2000 123086         Illegible         Specific equipment
  Apparel, Inc.        Group/Equip.       Secretary of
                     Financing, Inc.         State
--------------------------------------------------------------------------------------------------------------------------
   Cross Creek         Wells Fargo       North Carolina      2000 008199          5/24/00           Leased equipment
  Apparel, Inc.         Financial         Secretary of
                      Leasing, Inc.          State
--------------------------------------------------------------------------------------------------------------------------
</TABLE>

         2.       Liens created in favor of Wachovia Bank, N.A., as
Collateral Agent, pursuant to the Guarantee and Collateral Agreement dated
as of December 14, 2001 among Russell Corporation, certain of its Subsidiaries
and Wachovia Bank, N.A., as Collateral Agent, and the mortgages executed in
connection therewith (which Liens will be released in accordance with
subsection (i) of the definition of "Permitted Liens").

         3.       Liens created in favor of the Agent, for the benefit of
itself and for the Lenders, pursuant to this Agreement, and the Mortgages,
Pledge Agreements, Trademark Agreement, Patent Agreement, Guarantor Security
Agreement, Aircraft Chattel Mortgages and other Security Documents executed in
connection herewith.

                                      12

<PAGE>

                                 SCHEDULE 1.1D
                           DESIGNATED ACCOUNT DEBTORS

Insolvent Account Debtors (clause (i) of the definition "Eligible Account"):

K-Mart, but only as to post-petition Accounts on which K-Mart is the Account
Debtor

Concentration Percentages (clause (k) of the definition "Eligible Account"):

WalMart - 30%

Broder Bros. - 12.5%

                                      13

<PAGE>
                               SCHEDULE 6.1(c)(11)
                              ENVIRONMENTAL REPORTS

<TABLE>
-------------------------------------------------------------------------------------------------------------------------
<S>                            <C>                    <C>                               <C>                <C>   <C>
ESA1(TM) Environmental
Site Assessment                Cross Creek Apparel    694 Riverside Drive               Mt. Airy           NC    10/25/01
-------------------------------------------------------------------------------------------------------------------------
ESA1(TM)Environmental
Site Assessment                Cross Creek Apparel    510 Holly Springs Road            Mt. Airy           NC    10/29/01
-------------------------------------------------------------------------------------------------------------------------
ESA1(TM)Environmental
Site Assessment                Russell Corporation    1 Retail Drive                    Montgomery         AL    10/19/01
-------------------------------------------------------------------------------------------------------------------------
ESA1(TM)Environmental
Site Assessment                Russell Corporation    555 South Main Street             Brundidge          AL    10/19/01
-------------------------------------------------------------------------------------------------------------------------
ESA1(TM)Environmental                                 3145, 3147, and
Site Assessment                Russell Corporation    3149 Elmore Road                  Wetumpka           AL    10/22/01
-------------------------------------------------------------------------------------------------------------------------
ESA1(TM)Environmental
Site Assessment                Russell Corporation    1493 County Road 609              Ft. Payne          AL    10/24/01
-------------------------------------------------------------------------------------------------------------------------
ESA1(TM)Environmental
Site Assessment                Russell Corporation    755 Lee Street (SA #2)            Alexander City     AL    10/29/01
-------------------------------------------------------------------------------------------------------------------------
ESA1(TM)Environmental
Site Assessment                Russell Corporation    755 Lee Street (SA #3)            Alexander City     AL    10/29/01
-------------------------------------------------------------------------------------------------------------------------
ESA1(TM)Environmental
Site Assessment                Russell Corporation    755 Lee Street (SA #1)            Alexander City     AL    10/29/01
-------------------------------------------------------------------------------------------------------------------------
ESA1(TM)Environmental
Site Assessment                Russell Corporation    755 Lee Street (SA #4)            Alexander City     AL    10/29/01
-------------------------------------------------------------------------------------------------------------------------
ESA1(TM)Environmental                                 Highway 22 West (Cotton
Site Assessment                Russell Corporation    Receiving Facility)               Alexander City     AL    10/31/01
-------------------------------------------------------------------------------------------------------------------------
ESA1(TM)Environmental
Site Assessment                Russell Corporation    Highway 22 West (Coosa #1)        Alexander City     AL    10/31/01
-------------------------------------------------------------------------------------------------------------------------
ESA1(TM)Environmental
Site Assessment                Russell Corporation    6175 Lynch Road                   Midland            GA    10/22/01
-------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       14
<PAGE>

                                 SCHEDULE 7.1(a)
                                  ORGANIZATION

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
                                                     STATES WHERE QUALIFIED TO
                                                       CONDUCT BUSINESS AS A
                   NAME                                   FOREIGN ENTITY
--------------------------------------------------------------------------------
<S>                                                 <C>
Mossy Oak Apparel Company                           Mississippi
--------------------------------------------------------------------------------
Russell Athletic, Inc.                              Ohio, Alabama, Tennessee
--------------------------------------------------------------------------------
Russell Athletic West, Inc.                         California, Kansas
--------------------------------------------------------------------------------
Russell Corporation, an Alabama corporation         Georgia, Florida, New York
--------------------------------------------------------------------------------
Russell Co-Op, LLC                                  New York, New Jersey
--------------------------------------------------------------------------------
</TABLE>

                                       15
<PAGE>

                                 SCHEDULE 7.1(b)
                                 CAPITALIZATION

BORROWER CAPITALIZATION

<TABLE>
<CAPTION>
           Borrower                                 Owner                          Number of Shares
           --------                                 -----                          ----------------
<S>                                   <C>                                          <C>
Cross Creek Apparel, LLC              Cross Creek Holdings, Inc.                          N/A

Cross Creek Holdings, Inc.            Russell Corporation                               1,000

DeSoto Mills, Inc.                    Russell Corporation                                 100

Jerzees Apparel, LLC                  Russell Corporation                                 N/A

Mossy Oak Apparel Company             Russell Corporation                               1,000

RINTEL Properties, Inc.               Russell Corporation                               1,000

Russell Apparel LLC                   Russell Corporation (99%)
                                      Russell Financial Services, Inc. (1%)               N/A

Russell Asset Management, Inc.        Russell Corporation                                 800
                                      Cross Creek Apparel, LLC                            140
                                      DeSoto Mills, Inc.                                  60

Russell Athletic, Inc.                Russell Corporation                                 100

Russell Athletic West, Inc.           Russell Corporation                                 100

Russell Financial Services, Inc.      Russell Corporation                               1,000

Russell Yarn, LLC                     Russell Corporation                                 N/A
</TABLE>

CAPITAL STOCK AGREEMENTS

Rights Agreement dated as of September 15, 1999 between Russell and SunTrust
Bank, Atlanta, Georgia

PERSONS OR GROUPS OWNING MORE THAN FIVE PERCENT (5%) OF RUSSELL STOCK

1.       Roberta A. Baumgardner
2.       Benjamin Russell
3.       Edith L. Russell
4.       Nancy R. Gwaltney
5.       AXA
6.       Helen Allison
7.       John F. Ward
8.       Barclays Global Investors, N.A.

                                       16
<PAGE>

                                 SCHEDULE 7.1(C)
                   SUBSIDIARIES; OWNERSHIP OF EQUITY INTERESTS

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
                                                    Jurisdiction of                Ownership Percentage and names of
                  Name                               Organization                     Immediate Parent or Parents
------------------------------------------------------------------------------------------------------------------------
<S>                                                 <C>                            <C>
Alexander City Flying Service, Inc.                 Alabama                         100% owned by Russell
------------------------------------------------------------------------------------------------------------------------
Cross Creek Apparel, LLC                            North Carolina                  100% owned by Cross Creek Holdings,
                                                                                    Inc.
------------------------------------------------------------------------------------------------------------------------
Cross Creek Holdings, Inc.                          Delaware                        100% owned by Russell
------------------------------------------------------------------------------------------------------------------------
DeSoto Mills, Inc.                                  Alabama                         100% owned by Russell
------------------------------------------------------------------------------------------------------------------------
Jerzees Apparel, LLC                                Georgia                         100% owned by Russell
------------------------------------------------------------------------------------------------------------------------
Mossy Oak Apparel Company                           Delaware                        100% owned by Russell
------------------------------------------------------------------------------------------------------------------------
RINTEL Properties, Inc.                             Delaware                        100% owned by Russell
------------------------------------------------------------------------------------------------------------------------
Russell Apparel LLC                                 Alabama                         99% owned by Russell, 1% owned by
                                                                                    Russell Financial Services, Inc.
------------------------------------------------------------------------------------------------------------------------
Russell Asset Management, Inc.                      Delaware                        80% owned by Russell; 14% owned
                                                                                    by Cross Creek Apparel, LLC; 6%
                                                                                    owned by DeSoto Mills, Inc.
------------------------------------------------------------------------------------------------------------------------
Russell Athletic, Inc.                              Georgia                         100% owned by Russell
------------------------------------------------------------------------------------------------------------------------
Russell Athletic West, Inc.                         Nevada                          100% owned by Russell
------------------------------------------------------------------------------------------------------------------------
Russell Financial Services, Inc.                    Delaware                        100% owned by Russell
------------------------------------------------------------------------------------------------------------------------
Russell Corporation (Delaware)                      Delaware                        100% owned by Russell
------------------------------------------------------------------------------------------------------------------------
Russell Servicing Co., Inc.                         Alabama                         100% owned by Russell
------------------------------------------------------------------------------------------------------------------------
Russell Yarn, LLC                                   Alabama                         100% owned by Russell
------------------------------------------------------------------------------------------------------------------------
Russell Co-Op, LLC                                  Guam                            99% owned by Russell, 1% owned by
                                                                                    Jerzees Apparel, LLC
------------------------------------------------------------------------------------------------------------------------
Russell Mexico, S.A. de C.V.                        Mexico                          100% owned by Russell
------------------------------------------------------------------------------------------------------------------------
JERZEES Yucatan, S.A. de C.V.                       Mexico                          98% owned by Russell, 2% owned by
                                                                                    Russell Financial Services, Inc.
------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       17
<PAGE>

<TABLE>
-----------------------------------------------------------------------------------------------------------------------------
<S>                                                 <C>                             <C>
JERZEES Campeche, S.A. de C.V.                      Mexico                          98% owned by Russell, 2% owned by
                                                                                    Russell Financial Services, Inc.
-----------------------------------------------------------------------------------------------------------------------------
Athletic de Camargo, S.A. de C.V.                   Mexico                          99.998% owned by Russell, 0.002% owned
                                                                                    by Russell Financial Services, Inc.
-----------------------------------------------------------------------------------------------------------------------------
Cross Creek de Jimenez, S.A. de C.V.                Mexico                          99.998% owned by Cross Creek Apparel,
                                                                                    LLC, 0.002% owned by Russell Financial
                                                                                    Services, Inc.
-----------------------------------------------------------------------------------------------------------------------------
Russell Corp. Australia Pty Ltd                     Australia                       99.99% owned by Russell Apparel, LLC,
                                                                                    remainder owned by Russell
-----------------------------------------------------------------------------------------------------------------------------
Russell Europe Limited                              United Kingdom                  99.99% owned by Eagle R Holdings
                                                                                    Limited, remainder owned by Russell
                                                                                    Apparel LLC
-----------------------------------------------------------------------------------------------------------------------------
Russell do Brasil, Ltda.                            Brazil                          99.99% owned by Russell, remainder
                                                                                    owned by Russell Financial Services,
                                                                                    Inc.
-----------------------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------
Russell France S.A.R.L.                             France                          100% owned by Russell
-----------------------------------------------------------------------------------------------------------------------------
Russell CZ s.r.o.                                   Czech Republic                  100% owned by Russell
-----------------------------------------------------------------------------------------------------------------------------
Russell Germany GmbH                                Germany                         100% owned by Russell
-----------------------------------------------------------------------------------------------------------------------------
Russell Spain, S.L.                                 Spain                           99.8% owned by Russell, 0.2% owned by
                                                                                    Russell Apparel, LLC
-----------------------------------------------------------------------------------------------------------------------------
Russell Japan KK                                    Japan                           100% owned by Russell
-----------------------------------------------------------------------------------------------------------------------------
Russell Italy Srl                                   Italy                           100% owned by Russell
-----------------------------------------------------------------------------------------------------------------------------
Cross Creek de Honduras, S.A. de C.V.               Honduras                        84% owned by Russell; 4% owned by
                                                                                    Russell Apparel, LLC; 4% owned by
                                                                                    Russell Financial Services, Inc.; 4%
                                                                                    owned by Cross Creek Apparel, LLC; 4%
                                                                                    owned by DeSoto Mills, Inc.
-----------------------------------------------------------------------------------------------------------------------------
JERZEES Buena Vista, S.A.                           Honduras                        84% owned by Russell; 4% owned by
                                                                                    Russell Apparel, LLC; 4% owned by
                                                                                    Russell Financial Services, Inc.; 4%
                                                                                    owned by Cross Creek Apparel, LLC; 4%
                                                                                    owned by DeSoto Mills, Inc.
-----------------------------------------------------------------------------------------------------------------------------
JERZEES de Honduras, S.A. de C.V.                   Honduras                        84% owned by Russell; 4% owned by
                                                                                    Russell Apparel, LLC; 4% owned by
                                                                                    Russell Financial Services, Inc.; 4%
                                                                                    owned by Cross Creek Apparel, LLC; 4%
                                                                                    owned by DeSoto Mills, Inc.
-----------------------------------------------------------------------------------------------------------------------------
JERZEES Choloma, S.A.                               Honduras                        84% owned by Russell; 4% owned by Russell
                                                                                    Apparel, LLC; 4% owned by Russell
                                                                                    Financial Services, Inc.; 4% owned by
                                                                                    Cross Creek Apparel, LLC; 4% owned by
                                                                                    DeSoto Mills, Inc.
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       18

<PAGE>

<TABLE>
<S>                                                 <C>                             <C>
-----------------------------------------------------------------------------------------------------------------------------
Servicios Russell, S.A. de C.V.                     Mexico                          100% owned by Russell
-----------------------------------------------------------------------------------------------------------------------------
Russell Corp. Far East Limited (inactive)           Hong Kong                       99.99% owned by Russell, 0.01% owned
                                                                                    by Russell Apparel, LLC
-----------------------------------------------------------------------------------------------------------------------------
Russell Foreign Sales, Ltd.                         Barbados                        100% owned by Russell
-----------------------------------------------------------------------------------------------------------------------------
Russell Corp. Bangladesh Limited                    Bangladesh                      99% owned by Russell Europe Limited,
                                                                                    1% owned by Eagle R Holdings Limited
-----------------------------------------------------------------------------------------------------------------------------
Russell Corp. Canada Ltd.                           Canada                          100% owned by Russell
-----------------------------------------------------------------------------------------------------------------------------
Russell Holdings Europe B.V.                        Netherlands                     100% owned by Russell Asset
                                                                                    Management, Inc.
-----------------------------------------------------------------------------------------------------------------------------
Ruservicios, S.A. de C.V.                           Honduras                        84% owned by Russell; 4% owned by
                                                                                    Russell Apparel, LLC; 4% owned by
                                                                                    Russell Financial Services, Inc.; 4%
                                                                                    owned by Cross Creek Apparel, LLC; 4%
                                                                                    owned by DeSoto Mills, Inc.
-----------------------------------------------------------------------------------------------------------------------------
Eagle R. Holdings Limited                           United Kingdom                  99.99% owned by Russell, remainder
                                                                                    owned by Russell Apparel, LLC
-----------------------------------------------------------------------------------------------------------------------------
Citygate Textiles Limited                           United Kingdom                  99.998% owned by Russell Europe
                                                                                    Limited, 0.002% owned by Russell
                                                                                    Apparel, LLC
-----------------------------------------------------------------------------------------------------------------------------
Russell Del Caribe, Inc. (incorporated but still    Puerto Rico                     100% owned by Russell Corporation
in formation)
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>

All of the outstanding stock and securities of each domestic Subsidiary, and 65%
of the outstanding stock and securities of each foreign subsidiary, are pledged
to Wachovia Bank, N.A., as Collateral Agent, pursuant to the Guarantee and
Collateral Agreement dated as of December 14, 2001 among Russell Corporation,
certain of its Subsidiaries and Wachovia Bank, N.A., as Collateral Agent (which
Liens will be released in accordance with subsection (i) of the definition of
"Permitted Liens").

All Subsidiaries are Consolidated Subsidiaries.

                                       19

<PAGE>

                                 SCHEDULE 7.1(e)
                           COMPLIANCE WITH LAWS, ETC.

                                      None.

                                       20

<PAGE>

                                 SCHEDULE 7.1(g)
                             GOVERNMENTAL APPROVALS

ENVIRONMENTAL MATTERS

1.       Bronson v. Alabama Department of Environmental Management, et al.,
         pending before the Alabama Environmental Management Commission (appeal
         of City of Alexander City's discharge permit)

2.       All matters described in or otherwise disclosed in any report on Form
         10-K or Form 10-Q filed by Russell with the United States Securities
         and Exchange Commission after December 31, 2000, including, without
         limitation,

         (a)      Locke, et al. v. Russell Corporation, et al., pending in the
                  Circuit Court of Jefferson County, Alabama (nuisance and
                  trespass claims);

         (b)      Gould v. Russell Corporation, et al., pending in the Circuit
                  Court of Jefferson County, Alabama (nuisance and trespass
                  claims); and

         (c)      Proposed Consent Decree in the matter of United States of
                  America v. Russell Corporation, et al., to be filed in the
                  United States District Court, Middle District of Alabama,
                  relating to alleged violations of the Clean Water Act in
                  connection with the discharge of waste at a water treatment
                  facility operated by the City of Alexander City, Alabama

                                       21
<PAGE>

                                 SCHEDULE 7.1(h)
                               TITLE TO PROPERTIES

With respect to Real Estate, all those matters as shown on Chicago Title
Insurance Company Title Commitment Numbers 2472, WS2002-01152, 2-13521(M), 4435
and that certain title commitment prepared by Watson, Gillis & Carver, P.C.,
insuring Fleet Capital Corporation, for property located in DeKalb County,
Alabama.

                                       22

<PAGE>

                                 SCHEDULE 7.1(i)
                                      LIENS

                  See Schedule 1.1C and the items listed below.

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------
      Debtor          Secured Party       Jurisdiction       File Number         File Date             Collateral
---------------------------------------------------------------------------------------------------------------------------
<S>                 <C>                  <C>                 <C>                 <C>            <C>
   Cross Creek      OMNOVA Solutions,    North Carolina       200105042981          7/26/01      Specified consigned goods
   Apparel, LLC     Inc. as successor     Secretary of
 as successor in      in interest to         State                                  Amended
interest to Cross         GenCorp                                                    9/5/01
  Creek Apparel,       Performance
       Inc.             Chemicals
---------------------------------------------------------------------------------------------------------------------------
     Russell         D & G Dyes, Inc.       Alabama          B2000-33854FS         8/22/00        All inventory sold to
   Corporation                            Secretary of                                          Debtor by Secured Party
                                             State                                                and all proceeds and
                                                                                                    products thereof
---------------------------------------------------------------------------------------------------------------------------
     Russell           Dystar L.P.          Alabama          B 02 0045390 FS       01/28/02          Consigned products
   Corporation                            Secretary of
                                             State
---------------------------------------------------------------------------------------------------------------------------
     Russell         BASF Corporation       Alabama          B 02 0010690 FS        1/10/02       BASF owned dyestuffs and
   Corporation                            Secretary of                                           textile auxiliaries on
                                             State                                                    consignment
---------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       23

<PAGE>

                                 SCHEDULE 7.1(j)
                           INDEBTEDNESS AND GUARANTIES

1.       Debt under any Control Agreement between a Borrower or a Subsidiary, on
         the one hand, and any Clearing Bank providing cash management services
         on the other hand, pursuant to which such Clearing Bank provides cash
         management services.

2.       Debt under the foreign exchange forward rate agreements provided to the
         Borrowers by JPMorgan Chase Bank (formerly The Chase Manhattan Bank)
         pursuant to the ISDA Master Agreement and Schedules dated as of July
         24, 2001.

3.       Debt of Russell Europe Limited in an amount of up to(pound)15.0 million
         owing to the Bank of Scotland, and the guaranty of such Debt by
         Russell.

4.       Debt under certain receivables purchase and sale agreements by and
         between Russell Financial Services, Inc., and certain other Borrowers,
         in each case as originally executed or as such agreements may be from
         time to time supplemented, amended, renewed or extended.

5.       Debt under Letters of Credit issued previously or from time to time by
         First Union National Bank (now Wachovia Bank, N.A.) for the account of
         one or more of the Borrowers or its Subsidiaries and for the benefit of
         a supplier of a Borrower or a Subsidiary.

6.       Intercompany Debt owing by RUServicios, Sociedad Anonima to Russell, as
         evidenced by a promissory note in the principal amount of US$5,000,000.

7.       ISDA Master Agreement and Schedule dated as of June 19, 1995 between
         Trust Company Bank (now SunTrust Bank) and Russell.

8.       All obligations under the Senior Note Documents and any guarantees
         thereof.

9.       Obligations under the Standby Letter of Credit issued by Aliant Bank to
         the State of Alabama relating to workers' compensation coverage for
         certain of the Borrowers in the amount of $350,000

10.      Obligations under the Standby Letter of Credit issued by Fleet National
         Bank to SunTrust Bank ("SunTrust") relating to loans by SunTrust to
         Elasticos Centroamericanos Textiles, S.A. de C.V. ("Elcatex").

11.      Obligations under the Standby Letter of Credit issued by Fleet National
         Bank to SunTrust relating to Elcatex's obligations under the ISDA
         Master Agreement and schedules dated as of July 28, 2000 between
         SunTrust and Elcatex.

12.      All obligations arising from the Loan Documents.

                                       24
<PAGE>

                                 SCHEDULE 7.1(k)
                                   LITIGATION

All matters described in or otherwise disclosed in any report on Form 10-K or
Form 10-Q filed by Russell with the United States Securities and Exchange
Commission after December 31, 2000, including, without limitation,

         (a)      Locke, et al. v. Russell Corporation, et al., pending in the
                  Circuit Court of Jefferson County, Alabama (nuisance and
                  trespass claims);

         (b)      Gould v. Russell Corporation, et al., pending in the Circuit
                  Court of Jefferson County, Alabama (nuisance and trespass
                  claims); and

         (c)      Proposed Consent Decree in the matter of United States of
                  America v. Russell Corporation, et al., to be filed in the
                  United States District Court, Middle District of Alabama,
                  relating to alleged violations of the Clean Water Act in
                  connection with the discharge of waste at a water treatment
                  facility operated by the City of Alexander City, Alabama.

                                       25
<PAGE>

                                 SCHEDULE 7.1(l)
                                   TAX MATTERS

(1)      Russell Corporation appeal of Tallapoosa County, Alabama 2000 ad
         valorem tax assessment pending in Circuit Court of Tallapoosa County,
         Alabama

(2)      Russell Corporation protest of Tallapoosa County, Alabama 2001 ad
         valorem tax assessment pending in Circuit Court of Tallapoosa County,
         Alabama

                                       26
<PAGE>

                                 SCHEDULE 7.1(p)
                                      ERISA

1.       [Russell Corporation Health & Welfare Benefits Plan*

2.       Russell Corporation Premium Payment Plan

3.       Russell Corporation 401(k) Retirement Savings Plan**

4.       Russell Corporation Revised Pension Plan

5.       Russell Corporation Flexible Deferral Plan

6.       Russell Corporation Supplemental Retirement Benefit Plan

7.       Russell Corporation Supplemental Executive Retirement Plan

*The Russell Corporation Health and Welfare Benefits Plan includes (1) a
post-retirement life insurance benefit and (2) hourly and salaried severance
plans.

** Russell Corporation identified and corrected a prohibited transaction that
occurred in September 2001 related to the Russell Corporation 401(k) Retirement
Savings Plan. The prohibited transaction involved slightly late 401(k)
contributions and the minimal excise tax of approximately $1,800 has been paid.]

                                       27
<PAGE>

                                 SCHEDULE 7.1(t)
                         LOCATION OF OFFICES AND RECORDS

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
            BORROWER                  CHIEF EXECUTIVE OFFICE[S]           OTHER OFFICES WITH BOOKS
                                                                          AND RECORDS RELATING TO
                                                                                  ACCOUNTS
-------------------------------------------------------------------------------------------------------
<S>                                   <C>                                 <C>
Russell Corporation                   3330 Cumberland Blvd.
                                      Suite 800
                                      Atlanta, GA 30339

                                      755 Lee Street
                                      Alexander City, AL 35010
-------------------------------------------------------------------------------------------------------
Cross Creek Apparel, LLC              Highway 52 South                    755 Lee Street
                                      Mt. Airy, NC 27030                  Alexander City, AL 35010
-------------------------------------------------------------------------------------------------------
Cross Creek Holdings, Inc.            300 Delaware Avenue                 755 Lee Street
                                      9th Floor-DE 5403                   Alexander City, AL 35010
                                      Wilmington, DE 19801
-------------------------------------------------------------------------------------------------------
DeSoto Mills, Inc.                    1493 County Road 609                755 Lee Street
                                      Fort Payne, AL 35967                Alexander City, AL 35010
-------------------------------------------------------------------------------------------------------
Russell Financial Services, Inc.      300 Delaware Avenue                 755 Lee Street
                                      Suite 1271                          Alexander City, AL 35010
                                      Wilmington, DE 19801
-------------------------------------------------------------------------------------------------------
Russell Asset Management, Inc.        300 Delaware Avenue                 755 Lee Street
                                      Suite 1271                          Alexander City, AL 35010
                                      Wilmington, DE 19801
-------------------------------------------------------------------------------------------------------
RINTEL Properties, Inc.               300 Delaware Avenue                 755 Lee Street
                                      9th Floor - DE 5403                 Alexander City, AL 35010
                                      Wilmington, DE 19801
-------------------------------------------------------------------------------------------------------
Jerzees Apparel, LLC                  3330 Cumberland Blvd.               755 Lee Street
                                      Suite 800                           Alexander City, AL 35010
                                      Atlanta, GA 30339
-------------------------------------------------------------------------------------------------------
Mossy Oak Apparel, LLC                201 Main Street                     755 Lee Street
                                      West Point, MS                      Alexander City, AL 35010
-------------------------------------------------------------------------------------------------------
Russell Apparel LLC                   755 Lee Street
                                      Alexander City, AL 35010
-------------------------------------------------------------------------------------------------------
Russell Yarn, LLC                     755 Lee Street
                                      Alexander City, AL 35010
-------------------------------------------------------------------------------------------------------
Russell Athletic West, Inc.           3330 Cumberland Blvd.               755 Lee Street
                                      Suite 800                           Alexander City, AL 35010
                                      Atlanta, GA 30339
-------------------------------------------------------------------------------------------------------
Russell Athletic, Inc.                3330 Cumberland Blvd.               755 Lee Street
                                      Suite 800                           Alexander City, AL 35010
                                      Atlanta, GA 30339
-------------------------------------------------------------------------------------------------------
</TABLE>

                                       28
<PAGE>

                                 SCHEDULE 7.1(u)
                     LOCATIONS OF INVENTORY AND/OR EQUIPMENT

PART A:  U.S. LOCATIONS

(1)      755 Lee Street
         Alexander City, AL 35010
         (Alexander City Complex)

(2)      555 S. Main Street
         Brundidge, AL
         (Brundidge Plant)

(3)      1 Retail Drive
         Montgomery, AL
         (Montgomery DC)

(4)      6175 Lynch Road
         Midland, GA
         (Columbus DC)

(5)      3145 Elmore Rd.
         Hwy 14
         Wetumpka, AL
         (Coosa River Complex)

(6)      CaliforniaMart
         110 East Ninth Street
         No. C463
         Los Angeles, CA
         (Leased Office)

(7)      Empire State Building
         350 Fifth Avenue
         New York, NY
         (Leased Office)

(8)      201 Main Street
         West Point, MS
         (Leased Office)

(9)      623-C Park Meadow Road
         Westerville, OH
         (Leased Office)

                                       29
<PAGE>

(10)     Dothan Warehouse*
         980 Murray Road
         P.O. Box 2222
         Dothan, AL 36302
         (Leased Warehouse)

(11)     Montgomery Warehouse LLC
         P.O. Box 9099
         Montgomery, AL 36108
         (Leased Warehouse)

(12)     Walker Warehousing
         P.O. Box 39
         Alexander City, AL 35011
         (Leased Warehouse)

(13)     New Site Packaging, LLC*
         P.O. Box 1492
         Alexander City, AL
         (Leased Warehouse)

(14)     Rain Tree Business Center
         900B South Walton Blvd., Suite 8
         Bentonville, AR
         (Leased Office)

(15)     1562 E. Spruce
         Olathe, KS
         (Leased Office)

(16)     3330 Cumberland Blvd., Suite 800
         Atlanta, GA 30339
         (Leased Office)

(17)     Wideworld Sportswear
         14 East 29th Street
         Long Beach, CA 90806
         (Contractor)

(18)     Authentic Brands (DEMCO)
         1088 National Parkway
         Schaumberg, IL 60173
         (Contractor)

* No Inventory or Equipment currently located at this location.

                                       30
<PAGE>

(19)     JMW Sales Co. Inc.
         10 West End Road
         Totowa, NJ 07512
         (Contractor)

(20)     Greensboro Apparel*
         County Road 28
         Greensboro, AL 36744
         (Contractor)

(21)     North River Apparel*
         100 Box Factory Road
         Berry, AL 35546
         (Contractor)

(22)     Heritage Sportswear
         505 Manning Street
         Marion, SC 29571
         (Contractor)

(23)     Iris Apparel*
         4920 Jamestown Road
         Clarkrange, TN 38553
         (Contractor)

(24)     Intex Corporation
         1031 Summit Avenue
         Greensboro, NC 27405
         (Contractor)

(25)     Key Buffalo
         Airport Road
         Buffalo, MO 65622
         (Contractor)

(26)     Embroidery Plus
         P.O. Box 370
         Lena, MS 39094
         (Contractor)

(27)     Quality Apparel*
         1196 Cedar Fork Road
         Tazwell, TN 37879
         (Contractor)

* No Inventory or Equipment currently located at this location.

                                       31
<PAGE>

(28)     Quaker Boy
         20 Russell Road
         Bradford, PA 16701
         (Contractor)

(29)     Royal Park
         14139 Highway 86 South
         Prospect Hill, NC 27314
         (Contractor)

(30)     Royal Park
         11010 NW 30th St., Suite 106
         Miami, FL 33152
         (Contractor)

(31)     Virginia Garment
         P.O. Box 23050
         Richmond, VA 23223
         (Contractor)

(32)     Wrightenberry Mills*
         910 Cleveland Avenue
         Burlington, NC 27217
         (Contractor)

(33)     Triad Packaging & Distribution*
         4965 Indiana Avenue
         Winston-Salem, NC 27103
         (Contractor)

(34)     Quality Embroidery
         61 Biesecker Road
         P.O. Box 575
         Lexington, NC 27293
         (Contractor)

(35)     Factory Screenworks
         #3 Charles Road
         P.O. Box 2424
         King, NC 27021
         (Contractor)

* No Inventory or Equipment currently located at this location.

                                       32
<PAGE>

(36)     The Shirt Factory
         56 Kendall Pond Road
         Derry, New Hampshire 03038
         (Contractor)

(37)     Highway 52 South
         Mt. Airy, NC 27030

(38)     Riverside Drive
         Mt. Airy, NC
         (Cloth Plant/CC Knitting)

(39)     2920 Highway 86 North
         Suite B
         Yanceyville, NC
         (Leased Office)

(40)     Bray Warehouse
         372 Old Highway 52 South
         Mt. Airy, NC
         (Leased Warehouse)

(41)     Gold Leaf Warehouse
         301 Old Highway 52 South
         Mt. Airy, NC
         (Leased Warehouse)

(42)     Big Holly Warehouse
         525 Holly Springs Road
         Mt. Airy, NC
         (Leased Warehouse)

(43)     1493 County Road 609
         Fort Payne, AL 35967

(44)     Sandy Valley Road
         Ft. Payne, AL 35967
         (Dyeing/Finishing/Warehouse)

(45)     Windsocks
         2909 Gault Avenue N.
         Ft. Payne, AL 35968
         (Contractor)

                                       33
<PAGE>

(46)     Cooper Hosiery
         4005 Gault Avenue N.
         Ft. Payne, AL 35968
         (Contractor)

(47)     Southern Footwear
         180-A Airport Road
         Ft. Payne, AL 35968
         (Contractor)

(48)     USA Knit
         Beck Industrial Loop
         Ft. Payne, AL 35968
         (Contractor)

(49)     White Sox
         4314 Williams Avenue NE
         Ft. Payne, AL 35968
         (Contractor)

(50)     Design & Cut
         P.O. Box 2288
         Cartersville, GA 30120
         (Contractor)

(51)     Schott International, Inc.
         Kuttner Plant
         1873 McCarter Hwy.
         Newark, NJ 07104
         (Contractor)

(52)     New South Apparel
         112 Ease Rankin St.
         Brewton, AL 36426
         (Contractor)

(53)     Graphic Arts
         1223 North Eshman Avenue
         West Point, MS 39773
         (Contractor)

(54)     F & E Sportswear
         1231 Newell Parkway
         Montgomery, AL 36110
         (Contractor)

                                       34
<PAGE>

(55)     Liberty Screen Print
         301 Fork Road
         Madison, NC 27025
         (Contractor)

(56)     Seams
         424 South Main St.
         Hamburg, AR 71646
         (Contractor)

(57)     The Stitching Post
         10957 Byrd Doerner Road
         Collinsville, MS 39325
         (Contractor)

(58)     University Screen Printing
         489 South Southbell Center
         Starkville, MS 39759
         (Contractor)

(59)     MS Quality Apparel
         P.O. Box 278
         Sumrall, MS 39482
         (Contractor)

(60)     Sandpiper Knitting
         712 South Gum Street
         Pagland, SC 29728
         (Contractor)

(61)     300 Delaware Avenue
         9th Floor-DE 5403
         Wilmington, DE 19801
         (Leased Office)

(62)     300 Delaware Avenue
         Suite 1271
         Wilmington, DE 19801
         (Leased Office)

(63)     3562 Hwy. 280
         Alexander City, AL 35010
         (Alexander City Retail Store)

(64)     485 Seventh Avenue
         Suite 404
         New York, NY 10018
         (Leased Office - Execution Pending)

                                       35
<PAGE>

(65)     Bric McMann
         P.O. Box 1283
         Clearwater, Fl.  33757
         (Contractor)

(66)     Western Imex
         P.O. Box 150339
         Forth Worth, TX  76108
         (Contractor)

(67)     Vision Hosiery*
         152 12th Street NE
         Ft. Payne, AL 35968
         (Contractor)

(68)     B&S Hosiery*
         P.O. Box 85
         Sylvania, AL 35988
         (Contractor)

(69)     Blue Chip Hosiery*
         4314 Williams Ave., NE
         P.O. Box 980905
         Ft. Payne, AL 35968
         (Contractor)

(70)     Locklear Hosiery*
         2402 W. Airport Road
         Ft. Payne, AL 35968
         (Contractor)

(71)     Robin Lynn Hosiery*
         P.O. Box 680775
         Ft. Payne, AL 35968
         (Contractor)

(72)     Heritage Footwear*
         P.O. Box 680775
         Ft. Payne, AL 35968
         (Contractor)

* No Inventory or Equipment currently located at this location.

                                       36
<PAGE>

(73)     Finish Line*
         180 Airport Road W.
         Ft. Payne, AL 35968
         (Contractor)

(74)     Crossroads*
         4330-A Williams Ave., NE
         Ft. Payne, AL 35968
         (Contractor)

PART B:  PUERTO RICO LOCATIONS

(1)      American Storage
         Road # 869 Km 1.5
         Building C No. 6
         Royal Industrial Park
         Bo. Palmas, Catano, PR 00962
         (leased warehouse)

* No Inventory or Equipment currently located at this location.

                                       37
<PAGE>

                                 SCHEDULE 7.1(v)
                                    EQUIPMENT

                              See Schedule 7.1(u).

                                       38
<PAGE>

                                 SCHEDULE 7.1(w)
                                  BANK ACCOUNTS

<TABLE>
<CAPTION>
      BANK NAME                  ACCT. NAME           ACCT. NUMBER                   ACCT. TYPE
<S>                            <C>                    <C>                     <C>
Aliant Bank, Alex. City        Russell Corporation    2509008                 Checking-Regular Acct.
Aliant Bank, Alex. City        Russell Corporation    791938                  Checking-Investment
Aliant Bank, Alex. City        Russell Corporation    2547449                 Checking-Veba
Aliant Bank, Alex. City        Russell Corporation    2534770                 Checking-Recreation Dept.
Aliant Bank, Alex. City        Russell Corporation    2510944                 Checking-Dividend Fund
Aliant Bank, Alex. City        Jerzees Apparel        55029744                Checking-Three Rivers
                               LLC
Aliant Bank, Alex. City        Cross Creek            2537400                 Checking-Cross Creek
                               Apparel Inc.
Amsouth Bank, Cullman          The Russell            1292919                 [Lockbox]-Desoto Mills
                               Corporation
Compass Bank,                  Russell Corporation    70465376                Checking-Montgomery DC
Montgomery
First of Omaha, Omaha          Russell Corporation    5768004                 Credit Card Clearing
First of Omaha, Omaha          Russell Corporation    5773934                 Credit Card Clearing
First of Omaha, Omaha          Russell Athletic       5924518                 Credit Card Clearing
Suntrust Bank, Alex. City      Russell Mills, Inc.    40004970                Checking-Enstar IDB
Suntrust Bank, Atlanta         Russell Financial      8800415633              Lockbox
                               Serv. Inc.
Suntrust Bank, Atlanta         Russell Financial      8800993241              Lockbox
                               Serv. Inc.
Suntrust Bank, Atlanta         Russell Financial      8801515910              Lockbox
                               Serv. Inc.
Suntrust Bank, Atlanta         Russell Financial      8801125819              Lockbox
                               Serv. Inc.
Suntrust Bank, Atlanta         Russell Corporation    8800187307              Checking
Wachovia, Atlanta              Russell Corporation    16198904                Checking
Aliant Bank, Alex. City        Cross Creek            2537400                 Checking
                               Apparel Inc.
First Union Bank               Cross Creek            2078281000639           Checking
                               Apparel Inc.
First Union Bank               Cross Creek            2078281000749           Checking
                               Apparel Inc.
First Union Bank               Cross Creek            2078281024835           Checking
                               Apparel Inc.
First Union Bank               Russell Asset          2014229047252           Checking
                               Management
First Union Bank               Russell Financial      2000003431276           Checking
                               services
First Union Bank               Cross Creek            2014229047333           Checking
                               Holdings, Inc
First Union Bank               Rintel Properties      2014229047414           Checking
Aliant Bank, Alex. City        Alexander City         2530236                 Checking
                               Flying Service
Suntrust Bank                  Russell Corp Non       11-03-125-1137485       Investment Account
                               Qualified Def Comp
                               Plan
Nationwide Life Insurance      Corporate Flexible     28908900                Investment Account
Company                        Deferred Comp
                               Account
</TABLE>

                                       39

<PAGE>

<TABLE>
<S>                            <C>                    <C>                     <C>
Burham Securities              Russell Corp           85165888029             Investment Account
First Union Bank               Russell Corp L/C       2000010560282           Checking
                               Reimbursement
                               Account
Bank Of America                Russell Corporation    003276019579            Checking
Delaware Trust                 Rintel Properties      6728000180              Investment Account
Delaware Trust                 Cross Creek            672800288               Investment Account
                               Holdings, Inc
Delaware Trust                 Russell Financial      6728008761              Investment Account
                               Services
Delaware Trust                 Russell Asset          6728000279              Investment Account
                               Management
Aliant Bank, Alex. City        Russell Co-op          55031307                Checking
SunTrust                       Russell Financial      6801012144              Checking
                               Services
Wachovia Bank                  Russell Corp (Jack     2002047                 Investment Account
                               Rabbi Trust)
Aliant Bank, Alex City         Russell Co-op          55031315                Checking Payroll
Aliant Bank, Alex City         Russell Corporation    2510936                 Checking Payroll
Aliant Bank, Alex City         Russell Corporation    2510928                 Checking Payroll
Aliant Bank, Alex City         Russell Corporation    2521326                 Checking Payroll
AmSouth                        Desoto Mills           45074747                Checking Payroll
Aliant Bank, Alex City         Russell Corp Salaried  2510286                 Checking Payroll
                               Retirement
Fichosa Bank                                          39-101-262-5            Checking
Fichosa Bank                                          39-121-1217-6           Checking
Fichosa Bank                                          29-102-1092-9           Checking
Fichosa Bank                                          29-121-1352-4           Checking
Fichosa Bank                                          39-101-268-9            Checking
Fichosa Bank                                          42-121-1278-8           Checking
Fichosa Bank                                          39-121-1216-7           Checking
Fichosa Bank                                          39-101-261-6            Checking
Banamex                                               829072114               Checking
Banamex                                               826673338               Checking
Banamex                                               647  175026             Checking
Banamex                                               647  177266             Checking
Banamex                                               647   9001519           Checking
B.G.A. Banco Grupo el                                 215-101-292-8           Checking
Ahorro Hondureno
B.G.A. Banco Grupo el                                 215-101-058-5           Checking
Ahorro Hondureno
Banco Nacional de                                     44379000018             Checking
Mexico
AmSouth                                               45060274                Checking
AmSouth                                               100007520               Checking
AmSouth                                               5990004140              Checking
Aliant Bank                                           2533359
Banco Popular                                         052 444 619             Checking
</TABLE>

                                       40
<PAGE>
                                SCHEDULE 7.1(x)
                             INTELLECTUAL PROPERTY

                         Russell Asset Management, Inc.
                        Federal Trademark Registrations

<TABLE>
<CAPTION>
JURISDICTION                             MARK                           CLASS          REG DATE                REG NO.
-----------------------------------------------------------------------------------------------------------------------
<S>                  <C>                                              <C>             <C>                    <C>
USA                  4C - design                                        25            12/29/1998             2,213,930
-----------------------------------------------------------------------------------------------------------------------
USA                  Athletic Club                                      25            01/07/1997               2028087
-----------------------------------------------------------------------------------------------------------------------
USA                  Bargain Bag                                        25            06/20/1995               1900754
-----------------------------------------------------------------------------------------------------------------------
USA                  Big Foot and Design                                25            07/10/1990               1605660
-----------------------------------------------------------------------------------------------------------------------
USA                  Built to Last                                      25            08/01/1989               1550238
-----------------------------------------------------------------------------------------------------------------------
USA                  Camp Creek                                         25            10/26/1999               2289321
-----------------------------------------------------------------------------------------------------------------------
USA                  Castle Design                                      25            04/19/1994               1831412
-----------------------------------------------------------------------------------------------------------------------
USA                  Concentric Circles and Double Ovals Design         25            03/09/1993               1756943
-----------------------------------------------------------------------------------------------------------------------
USA                  Country Cottons                                    25            09/17/1985               1360689
-----------------------------------------------------------------------------------------------------------------------
USA                  Cross Creek & ('bogey man') design                 24            04/22/1997             2,054,178
-----------------------------------------------------------------------------------------------------------------------
USA                  Cross Creek & ('bogey man') design                 25            04/22/1997             2,054,179
-----------------------------------------------------------------------------------------------------------------------
USA                  Cross Creek                                        25            10/07/1975               1022095
-----------------------------------------------------------------------------------------------------------------------
USA                  DD and design (Four Old Time Football Players      25            08/20/1991               1654384
                     design)
-----------------------------------------------------------------------------------------------------------------------
USA                  DeSoto Outdoors and Design                         25            01/19/1993               1747193
-----------------------------------------------------------------------------------------------------------------------
USA                  Desoto Player's Club                               25            01/02/1990               1575150
-----------------------------------------------------------------------------------------------------------------------
USA                  Desoto Player's Club and design (old time          25            07/30/1996             1,989,417
                     football players w/words)
-----------------------------------------------------------------------------------------------------------------------
USA                  Focus Design                                       25            06/13/1989               1543669
-----------------------------------------------------------------------------------------------------------------------
USA                  Get Tough                                          18 & 25       04/22/1997             2,055,798
-----------------------------------------------------------------------------------------------------------------------
USA                  Get Tough R Russell Athletic                       18 & 25       02/04/1997             2,035,968
-----------------------------------------------------------------------------------------------------------------------
USA                  Golf is War Do Battle in Cross Creek and design    25            09/22/1998             2,190,594
-----------------------------------------------------------------------------------------------------------------------
USA                  High Cotton (stylized)                             25            04/24/1990               1593129
-----------------------------------------------------------------------------------------------------------------------
USA                  Huntley of York                                    25            11/15/1977               1077467
-----------------------------------------------------------------------------------------------------------------------
USA                  Jerzees                                            25            02/22/2000               2322101
-----------------------------------------------------------------------------------------------------------------------
USA                  Jerzees                                            25            04/14/1992               1683032
-----------------------------------------------------------------------------------------------------------------------
USA                  Jerzees Activewear Z and design                    25            07/04/2000               2363671
-----------------------------------------------------------------------------------------------------------------------
USA                  Jerzees logo                                       25            05/29/1984               1280293
-----------------------------------------------------------------------------------------------------------------------
USA                  Jerzees Cotton Sweats                              25            06/23/1992               1696178
-----------------------------------------------------------------------------------------------------------------------
USA                  Jerzees World Class and design                     25            07/02/1996               1983435
-----------------------------------------------------------------------------------------------------------------------
USA                  Lady Player                                        25            03/15/1994               1826428
-----------------------------------------------------------------------------------------------------------------------
USA                  Design - four men in top hats                      25            01/30/1990               1580207
-----------------------------------------------------------------------------------------------------------------------
USA                  Participant                                        25            05/11/1999             2,245,153
-----------------------------------------------------------------------------------------------------------------------
USA                  Performance Cushion                                25            02/28/1995               1880688
-----------------------------------------------------------------------------------------------------------------------
USA                  Performance Club                                   25            06/06/1995               1897592
-----------------------------------------------------------------------------------------------------------------------
USA                  Player's Pride                                     25            01/03/1995               1871967
-----------------------------------------------------------------------------------------------------------------------
USA                  Player's Performance                               25            03/01/1994               1824475
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

                                      42

<PAGE>

<TABLE>
<CAPTION>
JURISDICTION                             MARK                          CLASS           REG DATE                REG NO.
-----------------------------------------------------------------------------------------------------------------------
<S>                  <C>                                             <C>              <C>                     <C>
USA                  Pro Cotton                                         25            05/23/1989               1540603
-----------------------------------------------------------------------------------------------------------------------
USA                  Qualitized                                         25            07/24/1962                734966
-----------------------------------------------------------------------------------------------------------------------
USA                  R logo                                             25            12/02/1997               2118119
-----------------------------------------------------------------------------------------------------------------------
USA                  R logo                                             25            10/29/1974                996847
-----------------------------------------------------------------------------------------------------------------------
USA                  R logo                                             24            12/09/1975               1026794
-----------------------------------------------------------------------------------------------------------------------
USA                  R logo                                             25            11/05/1974                997505
-----------------------------------------------------------------------------------------------------------------------
USA                  R Russell Athletic (and design)                    25            12/09/1997               2120076
-----------------------------------------------------------------------------------------------------------------------
USA                  R Russell Athletic/High Cotton                     25            10/28/1986               1415076
-----------------------------------------------------------------------------------------------------------------------
USA                  R Russell Athletic                                 18 & 25       11/07/1995               1932436
-----------------------------------------------------------------------------------------------------------------------
USA                  Red Eagle Trading Co.                              25            08/14/2001               2477855
-----------------------------------------------------------------------------------------------------------------------
USA                  Red Eagle Trading Co. By Jerzees and design        25            09/04/2001               2484965
-----------------------------------------------------------------------------------------------------------------------
USA                  Russell National & design                          25            08/27/1985               1356767
-----------------------------------------------------------------------------------------------------------------------
USA                  Softwick                                           24            07/10/2001               2467882
-----------------------------------------------------------------------------------------------------------------------
USA                  Super Sweats                                       25            06/23/1981               1158184
-----------------------------------------------------------------------------------------------------------------------
USA                  The Exceptional Shirt                              25            05/01/1984               1276266
-----------------------------------------------------------------------------------------------------------------------
USA                  The Experience Shows                               25            09/08/1992               1713836
-----------------------------------------------------------------------------------------------------------------------
USA                  The Golfer and Design                              25            06/21/1988               1493214
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

                                      43

<PAGE>

<TABLE>
<S>             <C>                                 <C>              <C>                   <C>
USA             The Worker and Design               25               01/26/1993              1748611
-----------------------------------------------------------------------------------------------------------------------
USA             Three Rivers                        25               09/17/1996              2001576
-----------------------------------------------------------------------------------------------------------------------
USA             TOURTECH                            25               08/11/1998            2,180,235
-----------------------------------------------------------------------------------------------------------------------
USA             TRANSFORMX                          25               02/26/2002              2543052
-----------------------------------------------------------------------------------------------------------------------
USA             Tweed Fleece                        25               12/07/1999              2299072
-----------------------------------------------------------------------------------------------------------------------
USA             YorkTown                            25               08/11/1964               775016
-----------------------------------------------------------------------------------------------------------------------
USA             Z CLASS                             25               11/06/2001              2504093
-----------------------------------------------------------------------------------------------------------------------
USA             ZT                                  25               12/05/2000              2411447
-----------------------------------------------------------------------------------------------------------------------
USA             ZT and design                       25               08/07/2001              2475783
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

                                      44

<PAGE>

                         Russell Asset Management, Inc.
                             Trademark Applications

<TABLE>
<CAPTION>
JURISDICTION                   MARKS                 CLASS           REG DATE              REG NO.
---------------------------------------------------------------------------------------------------
<S>                <C>                             <C>              <C>                   <C>
USA                R logo                               25          02/27/2001            76216732
---------------------------------------------------------------------------------------------------
USA                C C design(*)                        25          07/21/2000            76093889
---------------------------------------------------------------------------------------------------
USA                DRI POWER                            25          10/29/2001            76330785
---------------------------------------------------------------------------------------------------
USA                HERCUFIBRE                           24          05/25/2001            76263343
---------------------------------------------------------------------------------------------------
USA                JERZEES rectangle design             25          10/16/2001            76325996
---------------------------------------------------------------------------------------------------
USA                Jerzees Cazuals                      25          11/13/2001            76336768
---------------------------------------------------------------------------------------------------
USA                Jerzees CaZuals and design           25          08/28/2000            76118145
---------------------------------------------------------------------------------------------------
USA                JERZEES CASUAL COMFORT               25          10/29/2001            76331289
---------------------------------------------------------------------------------------------------
USA                JERZEES OUTDOORS                     25          07/21/2000            76093890
---------------------------------------------------------------------------------------------------
USA                Northern Woodsman                    25          10/29/2001            76330787
---------------------------------------------------------------------------------------------------
USA                Performance Pique                    25          06/05/2001            76266784
---------------------------------------------------------------------------------------------------
USA                RUSSELL                              25          08/18/2000            76112386
---------------------------------------------------------------------------------------------------
USA                Russell Athletic                 25, 28          02/27/2001            76216841
---------------------------------------------------------------------------------------------------
USA                Russell Athletic Power               25          10/29/2001            76330768
---------------------------------------------------------------------------------------------------
USA                The Radiator                         25          10/16/2000            76148492
---------------------------------------------------------------------------------------------------
USA                Storm Power                          25          10/29/2001            76330765
---------------------------------------------------------------------------------------------------
USA                Stretch Power                        25          10/29/2001            76330789
---------------------------------------------------------------------------------------------------
USA                THERMA POWER                         25          10/29/2001            76330788
---------------------------------------------------------------------------------------------------
USA                UltraStretch                         25          01/16/2001            76194044
                   In the name of Rhyne Packaging
                   Company
---------------------------------------------------------------------------------------------------
USA                Vintage Varsity                      25          10/29/2001            76330770
---------------------------------------------------------------------------------------------------
USA                Z and Diamond design                 35          02/16/2001            76214510
---------------------------------------------------------------------------------------------------
USA                Z and Diamond design                 25          02/16/2001            76214511
---------------------------------------------------------------------------------------------------
</TABLE>

(*) Sara Lee has filed an opposition action with the PTO to this application
citing certain Champion trademarks.

                                      45

<PAGE>

                            Cross Creek Apparel, LLC
                        Foreign Trademark Registrations

<TABLE>
<CAPTION>
JURISDICTION                       MARKS                      CLASS          REG. DATE              REG. NO.
--------------------------------------------------------------------------------------------------------------
<S>                       <C>                               <C>              <C>                  <C>
Armenia                   Cross Creek                           25           06/01/1997                  1959
--------------------------------------------------------------------------------------------------------------
Australia                 Cross Creek                           25           01/07/1998                752294
--------------------------------------------------------------------------------------------------------------
Australia                 Cross Creek & 4C design               25           08/10/1977               A310099
--------------------------------------------------------------------------------------------------------------
Australia                 Cross Creek                           42           02/07/1996                701938
--------------------------------------------------------------------------------------------------------------
Belize                    Cross Creek & 4C design               25           08/22/1996                  7448
--------------------------------------------------------------------------------------------------------------
Benelux                   Cross Creek & 4C design               25           05/26/1977                345608
--------------------------------------------------------------------------------------------------------------
Canada                    Cross Creek Pro Collection            25           01/30/1998             TMA488777
--------------------------------------------------------------------------------------------------------------
Canada                    Cross Creek                           25           12/27/1996               468,017
--------------------------------------------------------------------------------------------------------------
Canada                    Cross Creek & 4C design                            11/16/1979                237233
--------------------------------------------------------------------------------------------------------------
Costa Rica                Cross Creek                           25           01/20/1997                 98917
--------------------------------------------------------------------------------------------------------------
Costa Rica                Country Cottons                       25           01/20/1997                 98916
--------------------------------------------------------------------------------------------------------------
CTM~~(EU or EC member     4C logo                           18, 25, 28,      04/20/1999                451922
countries are: Austria,                                         35
Belgium, Denmark,
Finland, France,
Germany, Greece,
Ireland, Italy,
Luxembourg,
Netherlands, Portugal,
Spain, Sweden, and UK)
--------------------------------------------------------------------------------------------------------------
Ecuador                   Cross Creek                           25           11/26/1991               2995-91
--------------------------------------------------------------------------------------------------------------
El Salvador               Cross Creek                           25           03/17/1998           148, bk. 72
--------------------------------------------------------------------------------------------------------------
El Salvador               Country Cottons                       25           03/17/1998           149, bk. 72
--------------------------------------------------------------------------------------------------------------
France                    Cross Creek & 4C                      25           06/03/1977               1406792
--------------------------------------------------------------------------------------------------------------
Germany                   Country Cottons                       25           06/14/1994               2092006
--------------------------------------------------------------------------------------------------------------
Germany, West             Cross Creek & 4C design               25           05/28/1977                967036
--------------------------------------------------------------------------------------------------------------
Guatemala                 Cross Creek                           25           09/01/1997                 88630
--------------------------------------------------------------------------------------------------------------
Honduras                  Country Cottons                       25           04/04/1997                 68345
--------------------------------------------------------------------------------------------------------------
Honduras                  Cross Creek                           25           06/30/1997                 69003
--------------------------------------------------------------------------------------------------------------
Hong Kong                 Cross Creek                           25           08/16/1990             B00422/94
--------------------------------------------------------------------------------------------------------------
Indonesia                 Cross Creek                           25           05/04/1995                333159
--------------------------------------------------------------------------------------------------------------
Indonesia                 Cross Creek                           42           08/15/1997                380993
--------------------------------------------------------------------------------------------------------------
Italy                     Cross Creek & 4C design               25           06/10/1977                345940
--------------------------------------------------------------------------------------------------------------
Japan                     4C design                             17           07/29/1985               1788046
--------------------------------------------------------------------------------------------------------------
Korea                     Cross Creek                           27           11/11/1991                225250
--------------------------------------------------------------------------------------------------------------
Korea                     Crosscreek                            45           04/28/1995                312398
--------------------------------------------------------------------------------------------------------------
Kuwait                    Cross Creek                           25           02/15/1997                 28227
--------------------------------------------------------------------------------------------------------------
Nicaragua                 Cross Creek                           25           06/30/1997                 37802
--------------------------------------------------------------------------------------------------------------
Nicaragua                 Country Cottons                       25           06/30/1998                 37803
--------------------------------------------------------------------------------------------------------------
Pakistan                  Cross Creek                           25           08/29/1994                126366
--------------------------------------------------------------------------------------------------------------
Panama                    Country Cottons                       25           06/06/1996                 81227
--------------------------------------------------------------------------------------------------------------
Panama                    Cross Creek                           25           05/27/1992                 61379
--------------------------------------------------------------------------------------------------------------
Singapore                 Cross Creek                           25           08/29/1994            T94/07487C
--------------------------------------------------------------------------------------------------------------
South Africa              Cross Creek                           25           09/15/1994              B94/9993
--------------------------------------------------------------------------------------------------------------
Sri Lanka                 Cross Creek                           25           09/09/1994                 71785
--------------------------------------------------------------------------------------------------------------
Sweden                    Country Cottons                       25           02/16/1996                308664
--------------------------------------------------------------------------------------------------------------
Sweden                    Cross Creek & 4C design               25           10/07/1977                160998
--------------------------------------------------------------------------------------------------------------
Switzerland               Cross Creek & 4C design               25           07/18/1977                289561
--------------------------------------------------------------------------------------------------------------
Thailand                  Cross Creek                           25                                    TM99333
--------------------------------------------------------------------------------------------------------------
</TABLE>

                                      46

<PAGE>

<TABLE>
<CAPTION>
JURISDICTION                       MARKS                 CLASS             REG DATE                   REG NO.
--------------------------------------------------------------------------------------------------------------
<S>                       <C>                            <C>              <C>                       <C>
Thailand (3)              CRISS CROSS                      25             10/21/1999                 tm100502
--------------------------------------------------------------------------------------------------------------
Turkey                    Cross Creek                      25             08/14/1998                98/011226
--------------------------------------------------------------------------------------------------------------
United Kingdom            Cross Creek & 4C design          25              7/13/1977                 B1080966
--------------------------------------------------------------------------------------------------------------
United Kingdom            Country Cottons                  25              3/22/1996                  1572497
--------------------------------------------------------------------------------------------------------------
Vietnam                   Cross Creek                      25              1/06/1996                    22970
--------------------------------------------------------------------------------------------------------------
</TABLE>

                            Cross Creek Apparel, LLC
                             Trademark Applications

<TABLE>
<CAPTION>
JURISDICTION              MARK               CLASS       APP FILED                 SERIAL NO.
-----------------------------------------------------------------------------------------------
<S>                    <C>                   <C>         <C>                       <C>
India                  Cross Creek             25        08/30/1994                    638433
-----------------------------------------------------------------------------------------------
Malaysia               CROSS CREEK             18        03/02/2001                2001-02691*
-----------------------------------------------------------------------------------------------
Malaysia               Cross Creek             24        03/02/2001                2001-02693*
-----------------------------------------------------------------------------------------------
Malaysia               Cross Creek             25        09/05/1994                   9408202
-----------------------------------------------------------------------------------------------
Malaysia               Cross Creek             28        03/02/2001                2001-02692*
-----------------------------------------------------------------------------------------------
Philippines            Cross Creek             25        11/23/1994                     96558
-----------------------------------------------------------------------------------------------
Philippines            Cross Creek             42        02/27/1997                    118358
-----------------------------------------------------------------------------------------------
</TABLE>

                              Russell Corporation
                            Trademark Registrations

<TABLE>
<CAPTION>
JURISDICTION                  MARKS                     CLASS          REG DATE             REG NO.
----------------------------------------------------------------------------------------------------
<S>                 <C>                               <C>             <C>                   <C>

USA                 Discus                               25           01/17/1978            1082718
----------------------------------------------------------------------------------------------------
USA                 Discus and design                    25           06/24/1997            2074559
----------------------------------------------------------------------------------------------------
USA                 Discus Athletic and design           25           09/10/1996            1999602
----------------------------------------------------------------------------------------------------
USA                 Discus Athletic and design           25           05/28/1996            1976957
----------------------------------------------------------------------------------------------------
USA                 Discus Athletic                      25           05/28/1996            1976958
----------------------------------------------------------------------------------------------------
USA                 Discus Athletic and design           25           07/23/1991            1651552
----------------------------------------------------------------------------------------------------
USA                 Sport by Discus Athletic             25           11/18/1997            2114356
                    and design
----------------------------------------------------------------------------------------------------
USA                 Sport by Discus Athletic             25           11/04/1997            2110858
----------------------------------------------------------------------------------------------------
USA                 Discus Classic Athletic              25           03/09/1999            2230217
----------------------------------------------------------------------------------------------------
USA                 Discus Sport and design              25           10/12/1999            2285724
----------------------------------------------------------------------------------------------------
USA                 Discus Sport                         25           12/08/1998            2209372
----------------------------------------------------------------------------------------------------
USA                 Discus Thrower design                25           02/18/1997            2039121
----------------------------------------------------------------------------------------------------
Albania             Cross Creek                          25           10/07/1985               5595
----------------------------------------------------------------------------------------------------
Albania             Jerzees logo                         25           10/04/1990               5596
----------------------------------------------------------------------------------------------------
</TABLE>

                                      47

<PAGE>

<TABLE>
<CAPTION>
JURISDICTION                  MARKS                    CLASS          REG DATE             REG NO.
---------------------------------------------------------------------------------------------------
<S>                 <C>                              <C>             <C>                   <C>

Albania             R Russell Athletic                  25           10/04/1990               5597
---------------------------------------------------------------------------------------------------
Algeria             Jerzees logo                        25           08/31/1993             046803
---------------------------------------------------------------------------------------------------
Andorra             Egale R                                          10/22/2001              17658
---------------------------------------------------------------------------------------------------
Andorra             Russell Athletic                                 10/22/2001              17659
---------------------------------------------------------------------------------------------------
Argentina           Cross Creek                         25           12/30/1993            1492036
---------------------------------------------------------------------------------------------------
Argentina           Discus Athletic                     25           11/30/1993            1485446
---------------------------------------------------------------------------------------------------
Argentina           Jerzees logo                        42           12/30/1994            1493498
---------------------------------------------------------------------------------------------------
Argentina           Jerzees logo                        25           06/06/1997            1634946
---------------------------------------------------------------------------------------------------
Argentina           R logo                              28           05/31/1994            1523690
---------------------------------------------------------------------------------------------------
Argentina           R logo                              18           05/31/1994            1523689
---------------------------------------------------------------------------------------------------
Argentina           R Russell Athletic                  42           12/30/1993            1493496
---------------------------------------------------------------------------------------------------
Argentina           R Russell Athletic                  25           07/30/1993            1453579
---------------------------------------------------------------------------------------------------
Argentina           Russell Athletic                    28           05/31/1994            1523688
---------------------------------------------------------------------------------------------------
Argentina           Russell Athletic                    18           05/31/1994            1523687
---------------------------------------------------------------------------------------------------
Armenia             Cross Creek                         25           06/01/1997               1959
---------------------------------------------------------------------------------------------------
Armenia             Jerzees logo                        25           07/01/1997               1958
---------------------------------------------------------------------------------------------------
Armenia             R Russell Athletic                  25           06/11/1997               1762
---------------------------------------------------------------------------------------------------
Australia           Discus Athletic and design          25           04/18/1995             619956
---------------------------------------------------------------------------------------------------
Australia           Discus Classic Athletic             25           09/09/1997             743478
---------------------------------------------------------------------------------------------------
Australia           Jerzees logo and block              25           02/23/1990            A529374
                    letters
---------------------------------------------------------------------------------------------------
Australia           R Russell Athletic                  25           02/23/1990            A529373
---------------------------------------------------------------------------------------------------
Australia           Red Eagle Trading Co            18, 25, 35       01/02/1997             724995
---------------------------------------------------------------------------------------------------
Austria             Discus Athletic and design          25           08/31/1992             143691
---------------------------------------------------------------------------------------------------
Austria             Jerzees by Russell logo             25           04/22/1987             115838
---------------------------------------------------------------------------------------------------
Austria             R Russell logo                      25           04/22/1987             115839
---------------------------------------------------------------------------------------------------
Azerbaijan          Cross Creek                         25           03/18/1994             960228
---------------------------------------------------------------------------------------------------
Azerbaijan          Jerzees logo                        25           03/18/1994             960230
---------------------------------------------------------------------------------------------------
Azerbaijan          R Russell Athletic                  25           03/18/1994             960229
---------------------------------------------------------------------------------------------------
Bangladesh          Jerzees logo                        25           09/05/1994              41590
---------------------------------------------------------------------------------------------------
Belarus             Cross Creek                         25           12/20/1993               2405
---------------------------------------------------------------------------------------------------
Belarus             Jerzees logo                        25           12/20/1993               2403
---------------------------------------------------------------------------------------------------
Belarus             R Russell Athletic                  25           12/20/1993               2404
---------------------------------------------------------------------------------------------------
Belize              Jerzees logo                        25           09/04/1996               7447
---------------------------------------------------------------------------------------------------
Belize              R logo                              18           08/22/1996               7452
---------------------------------------------------------------------------------------------------
Belize              R Russell logo                      25           08/22/1996               7450
---------------------------------------------------------------------------------------------------
Belize              Russell Athletic                    18           03/05/1997               7651
---------------------------------------------------------------------------------------------------
Belize              Russell Athletic                    25           08/22/1996               7451
---------------------------------------------------------------------------------------------------
</TABLE>

                                      48

<PAGE>

<TABLE>
<CAPTION>
JURISDICTION                  MARKS                    CLASS           REG DATE           REG NO.
--------------------------------------------------------------------------------------------------
<S>                  <C>                          <C>                 <C>                <C>
Benelux              Discus Athletic                     25           08/03/1992            508240
--------------------------------------------------------------------------------------------------
Benelux              Jerzees logo                        25           10/08/1987            437852
--------------------------------------------------------------------------------------------------
Benelux              R Russell logo                      25           09/10/1982            386817
--------------------------------------------------------------------------------------------------
Boliva               Discus Athletic and design          25           03/24/1993            015731
--------------------------------------------------------------------------------------------------
Bolivia              Cross Creek                         25           01/11/1994           55600-C
--------------------------------------------------------------------------------------------------
Bolivia              Jerzees                             42           01/11/1994           55601-C
--------------------------------------------------------------------------------------------------
Bolivia              Jerzees logo                        25           01/11/1994           55597-C
--------------------------------------------------------------------------------------------------
Bolivia              R Russell Athletic                  42           01/11/1994           55598-C
--------------------------------------------------------------------------------------------------
Bolivia              R Russell Athletic                  25           01/11/1994           55599-C
--------------------------------------------------------------------------------------------------
Brazil               Cross Creek                     25.10 & 20       10/29/1996         816072990
--------------------------------------------------------------------------------------------------
Brazil               Discus Athletic                     25           03/13/2001         817399445
--------------------------------------------------------------------------------------------------
Brazil               Discus Athletic and design          25           02/13/2001         816676313
--------------------------------------------------------------------------------------------------
Brazil               Jerzees                      25~(local 25.10;    07/06/1999         819787086
                                                   25.20 & 25.30)
--------------------------------------------------------------------------------------------------
Brazil               R Russell Athletic           35 (local 40.15)    07/14/1998         818892200
--------------------------------------------------------------------------------------------------
Brazil               R Russell Athletic                  18           03/20/2001         818892218
--------------------------------------------------------------------------------------------------
Brazil               R Russell Athletic                  25           08/26/1997         815345160
--------------------------------------------------------------------------------------------------
Brazil               R Russell Athletic               25 (local       11/16/1999         819878588
                                                   classes 25.10,
                                                   25.20 & 25.30)
--------------------------------------------------------------------------------------------------
Bulgaria             Cross Creek                         25           03/13/1991             20056
--------------------------------------------------------------------------------------------------
Bulgaria             Discus Athletic                     25           05/31/1993             20500
--------------------------------------------------------------------------------------------------
Bulgaria             Jerzees logo                        25           08/27/1990             19606
--------------------------------------------------------------------------------------------------
Bulgaria             R Russell Athletic                  25           08/27/1990             19605
--------------------------------------------------------------------------------------------------
Canada               Discus                              25           12/19/1980            254022
--------------------------------------------------------------------------------------------------
Canada               Discus Athletic                     25           09/04/1992            402417
--------------------------------------------------------------------------------------------------
Canada               Discus Classic Athletic             25           02/23/1999            508334
--------------------------------------------------------------------------------------------------
Canada               Get Tough                           25           03/18/1997           472,971
--------------------------------------------------------------------------------------------------
Canada               High Cotton (stylized)              25           08/30/1996           462,769
--------------------------------------------------------------------------------------------------
Canada               Jerzees                             25           12/29/1995           452,293
--------------------------------------------------------------------------------------------------
Canada               Jerzees World Class &               25           11/18/1997            485651
                     Design
--------------------------------------------------------------------------------------------------
Canada               R Logo                           24 and 25       03/14/1980            240946
--------------------------------------------------------------------------------------------------
Canada               R logo                              25           03/05/1997           472,131
--------------------------------------------------------------------------------------------------
Canada               R Russell Athletic                18 & 25        10/20/1998        TMA502,117
--------------------------------------------------------------------------------------------------
Canada               Russell                           24 & 25        03/14/1980            240945
--------------------------------------------------------------------------------------------------
Canada               Russell National & design           25           09/06/1974        TMA201,607
--------------------------------------------------------------------------------------------------
</TABLE>

                                      49

<PAGE>

<TABLE>
<CAPTION>
JURISDICTION                  MARKS                    CLASS           REG DATE           REG NO.
--------------------------------------------------------------------------------------------------
<S>                  <C>                          <C>                 <C>                <C>

Chile                Cross Creek                         25           06/09/1992            387517
--------------------------------------------------------------------------------------------------
Chile                Discus Athletic                     25           05/19/2002           386.997
--------------------------------------------------------------------------------------------------
Chile                Discus Athletic and Design      CE (local)       08/26/1992           409.624
--------------------------------------------------------------------------------------------------
Chile                Discus Athletic University          25           07/22/1993           409.625
                     Shop
--------------------------------------------------------------------------------------------------
Chile                Discus Athletic University      CE (local)       07/22/1993           409.626
                     Shop
--------------------------------------------------------------------------------------------------
Chile                Jerzees                             25           05/24/1996           461.645
--------------------------------------------------------------------------------------------------
Chile                Jerzees                             CE           01/04/1993            399700
--------------------------------------------------------------------------------------------------
Chile                Jerzees logo                        25           01/17/1997           477.234
--------------------------------------------------------------------------------------------------
Chile                R logo                              25           02/13/1998           504.296
--------------------------------------------------------------------------------------------------
Chile                R Russell Athletic                  IE           05/10/1993           406.401
--------------------------------------------------------------------------------------------------
Chile                R Russell Athletic                  25           12/22/1995           454.754
--------------------------------------------------------------------------------------------------
Chile                R Russell Athletic                  18           06/09/1994            427516
--------------------------------------------------------------------------------------------------
Chile                R Russell Athletic (All of          CE           12/28/1993            418945
                     Chile except Santiago)
--------------------------------------------------------------------------------------------------
Chile                R Russell Athletic                  CE           05/10/1993           406.402
                     (Santiago only)
--------------------------------------------------------------------------------------------------
Chile                Russell                             35           06/03/1993            407372
--------------------------------------------------------------------------------------------------
Chile                Russell Athletic                    25           03/09/1995           440.803
--------------------------------------------------------------------------------------------------
China                Cross Creek                         25           04/20/1992            592033
--------------------------------------------------------------------------------------------------
China                Discus Athletic and design          25           01/20/1995            726578
--------------------------------------------------------------------------------------------------
China                Discus Classic Athletic             25           07/14/1999           1283380
--------------------------------------------------------------------------------------------------
China                Jerzees logo                        40           04/19/1992            592032
--------------------------------------------------------------------------------------------------
China                R logo                              25           03/21/2001           1541275
--------------------------------------------------------------------------------------------------
China                R Russell Athletic                  25           03/21/2001           1541274
--------------------------------------------------------------------------------------------------
China                Russell                             25           06/07/2001           1581200
--------------------------------------------------------------------------------------------------
Colombia             Cross Creek                         25           11/30/1993            148740
--------------------------------------------------------------------------------------------------
Colombia             Jerzees logo                        25           05/30/1994            163344
--------------------------------------------------------------------------------------------------
Colombia             R Russell Athletic                  25           06/30/1994            166377
--------------------------------------------------------------------------------------------------
Colombia             R Russell Athletic & design         42           07/21/1997            199291
--------------------------------------------------------------------------------------------------
Costa Rica           Jerzees                             25           05/29/1995             91481
--------------------------------------------------------------------------------------------------
Costa Rica           R Russell Athletic                  25           05/29/1995             91480
--------------------------------------------------------------------------------------------------
Croatia              Cross Creek                         25           02/25/1991           Z921252
--------------------------------------------------------------------------------------------------
Croatia              Jerzees logo                        25           08/13/1990         Z 921251A
--------------------------------------------------------------------------------------------------
Croatia              R Russell Athletic                  25           08/13/1990         Z 921245A
--------------------------------------------------------------------------------------------------
CTM~~EU or EC        Cross Creek                    18, 25, 28, 35    02/19/1999            445841
countries
are:~Austria,
Belgium, Denmark,
Finland, France,
Germany, Greece,
Ireland, Italy,
Luxembourg,
Netherlands,
Portugal, Spain,
Sweden, and UK
--------------------------------------------------------------------------------------------------
</TABLE>

                                      50

<PAGE>

<TABLE>
<CAPTION>
JURISDICTION                  MARKS                     CLASS           REG DATE             REG NO.
--------------------------------------------------------------------------------------------------------
<S>                   <C>                           <C>                <C>                <C>
CTM                   Discus Classic Athletic             25           06/14/1999                657866
--------------------------------------------------------------------------------------------------------
CTM                   Three Rivers                      24, 25         08/09/1999             000712695
--------------------------------------------------------------------------------------------------------
CTM~~EU or EC         Eagle R logo                  18, 25 28, 35      02/12/1999                451765
countries
are:~Austria,
Belgium, Denmark,
Finland, France,
Germany, Greece,
Ireland, Italy,
Luxembourg,
Netherlands,
Portugal, Spain,
Sweden, and UK
--------------------------------------------------------------------------------------------------------
CTM~~EU or EC         Jerzees                       18, 25, 28, 35     06/28/2000                451807
countries
are:~Austria,
Belgium, Denmark,
Finland, France,
Germany, Greece,
Ireland, Italy,
Luxembourg,
Netherlands,
Portugal, Spain,
Sweden, and UK
--------------------------------------------------------------------------------------------------------
Czech Republic        Discus Athletic and Design          25           03/21/1994                175348
--------------------------------------------------------------------------------------------------------
Czech Republic        Jerzees logo                        25           08/09/1990                168812
--------------------------------------------------------------------------------------------------------
Czech Republic        R Russell Athletic                  25           08/09/1990                168811
--------------------------------------------------------------------------------------------------------
Denmark               Cross Creek                         25           10/02/1992               9016/92
--------------------------------------------------------------------------------------------------------
Denmark               Discus Athletic                     25           08/07/1992            07429-1992
--------------------------------------------------------------------------------------------------------
Denmark               Jerzees by Russell logo             25           10/16/1987                347987
--------------------------------------------------------------------------------------------------------
Denmark               R logo                              18           12/18/1992              11615/92
--------------------------------------------------------------------------------------------------------
Denmark               R Russell logo                      25           11/02/1984                380084
--------------------------------------------------------------------------------------------------------
Denmark               Russell Corporation               18 & 25        11/04/1994         VR07.485 1994
--------------------------------------------------------------------------------------------------------
Djibouti              Jerzees logo                        25           11/02/1994         AJVOL101F5N83
--------------------------------------------------------------------------------------------------------
Ecuador               Jerzees                             42           10/01/1992                 39492
--------------------------------------------------------------------------------------------------------
Ecuador               Jerzees logo                        25           09/21/1992                223892
--------------------------------------------------------------------------------------------------------
Ecuador               R Russell Athletic                  25           11/26/1991               2994-91
--------------------------------------------------------------------------------------------------------
</TABLE>

                                      51

<PAGE>

<TABLE>
<CAPTION>
JURISDICTION                  MARKS                    CLASS           REG DATE          REG NO.
--------------------------------------------------------------------------------------------------
<S>                  <C>                               <C>            <C>                <C>
Ecuador              R Russell Athletic                  42           10/01/1992           393-92
--------------------------------------------------------------------------------------------------
Egypt                Jerzees logo                        25           09/27/1994            78079
--------------------------------------------------------------------------------------------------
Egypt                R Russell Athletic                  25           04/19/1994            78080
--------------------------------------------------------------------------------------------------
Eire/Ireland         Jerzees Built To Last logo          25           05/05/1988          B131238
--------------------------------------------------------------------------------------------------
Eire/Ireland         Jerzees logo (old style)            25           10/08/1986          B130956
--------------------------------------------------------------------------------------------------
Eire/Ireland         R Russell logo                      25           10/08/1986          B130955
--------------------------------------------------------------------------------------------------
El Salvador          Jerzees logo                        25           02/17/1998      84, book 69
--------------------------------------------------------------------------------------------------
El Salvador          R Russell Athletic                  25           06/05/1998      188,book 77
--------------------------------------------------------------------------------------------------
Estonia              Cross Creek                         25           03/26/1991            09638
--------------------------------------------------------------------------------------------------
Estonia              Jerzees logo                        25           09/13/1990            09639
--------------------------------------------------------------------------------------------------
Estonia              R Russell Athletic                  25           09/13/1990            09640
--------------------------------------------------------------------------------------------------
Ethiopia             Jerzees logo                        25           04/01/1996            01979
--------------------------------------------------------------------------------------------------
Finland              Cross Creek                         25           12/07/1992           123382
--------------------------------------------------------------------------------------------------
Finland              Discus and design                   25           03/07/1983            84463
--------------------------------------------------------------------------------------------------
Finland              Discus Athletic and design          25           04/20/1994           131675
--------------------------------------------------------------------------------------------------
Finland              Jerzees logo                        25           11/06/1989           105605
--------------------------------------------------------------------------------------------------
Finland              R Russell logo                      25           09/05/1984            90061
--------------------------------------------------------------------------------------------------
Finland              Russell Athletic                    25           12/20/1993           129618
--------------------------------------------------------------------------------------------------
France               Discus                              25           10/10/1989          1554384
--------------------------------------------------------------------------------------------------
France               Discus Athletic and design          25           01/21/1992         92402029
--------------------------------------------------------------------------------------------------
France               JE Jerzees American Active          25           07/31/1992         92429137
                     Wear & design
--------------------------------------------------------------------------------------------------
France               Jerzees logo                        25           08/21/1987          1433213
--------------------------------------------------------------------------------------------------
France               R Russell logo                      25           09/15/1982          1212951
--------------------------------------------------------------------------------------------------
France               Russell Athletic                    18           09/11/1992         92433581
--------------------------------------------------------------------------------------------------
France               Russell Athletic                    25           01/19/1996         95583601
--------------------------------------------------------------------------------------------------
Georgia              Cross Creek                         25           10/28/1997             7321
--------------------------------------------------------------------------------------------------
Georgia              Jerzees logo                        25           10/28/1997             7320
--------------------------------------------------------------------------------------------------
Georgia              R Russell Athletic                  25           09/05/1997             6660
--------------------------------------------------------------------------------------------------
Germany              Discus Athletic and design          25           01/14/1991          1170803
--------------------------------------------------------------------------------------------------
Germany              R logo                              18           09/01/1992         W2050360
--------------------------------------------------------------------------------------------------
Germany              R Russell Athletic                  25           10/04/1990          2003825
--------------------------------------------------------------------------------------------------
Germany              Russell Athletic                    18           09/01/1992          2043777
--------------------------------------------------------------------------------------------------
Germany, West        Jerzees logo                        25           10/20/1987          1122839
--------------------------------------------------------------------------------------------------
Germany, West        R Russell logo                      25           09/15/1982          1048192
--------------------------------------------------------------------------------------------------
</TABLE>

                                      52

<PAGE>

<TABLE>
<CAPTION>
JURISDICTION                  MARKS                    CLASS           REG DATE           REG NO.
--------------------------------------------------------------------------------------------------
<S>                  <C>                               <C>            <C>               <C>
Ghana                Jerzees logo                        25           11/16/1998             25887
--------------------------------------------------------------------------------------------------
Greece               Discus Athletic and design          25           05/12/1992            109015
--------------------------------------------------------------------------------------------------
Greece               Jerzees logo                        25           09/10/1987             86682
--------------------------------------------------------------------------------------------------
Greece               R logo                              18           09/08/1992           110.604
--------------------------------------------------------------------------------------------------
Greece               R Russell Athletic                  25           11/05/1991            106558
--------------------------------------------------------------------------------------------------
Greece               R Russell logo                      25           11/08/1982         73286-GRE
--------------------------------------------------------------------------------------------------
Greece               Russell Athletic                    18           09/08/1992           110.605
--------------------------------------------------------------------------------------------------
Guatemala            Jerzees                             25           02/09/1998             88538
--------------------------------------------------------------------------------------------------
Honduras             Jerzees                             25           02/28/1997             67672
--------------------------------------------------------------------------------------------------
Honduras             R Russell Athletic                  18           02/14/1997             67463
--------------------------------------------------------------------------------------------------
Honduras             R Russell Athletic                  25           06/11/1997             68942
--------------------------------------------------------------------------------------------------
Hong Kong            Discus Athletic and design          25           08/10/1998        B8041/1998
--------------------------------------------------------------------------------------------------
Hong Kong            Jerzees logo                        25           08/16/1990          977/1994
--------------------------------------------------------------------------------------------------
Hong Kong            R Russell logo                      25           04/22/1983             B1360
--------------------------------------------------------------------------------------------------
Hong Kong            Russell Athletic                    42           01/16/1997          05615/98
--------------------------------------------------------------------------------------------------
Hong Kong            Russell Athletic                    25           09/05/1994            B04641
--------------------------------------------------------------------------------------------------
Hungary              Cross Creek                         25           03/11/1991           H133170
--------------------------------------------------------------------------------------------------
Hungary              Discus Athletic and design          25           01/29/1992            135200
--------------------------------------------------------------------------------------------------
Hungary              Jerzees logo                        25           08/24/1990            140062
--------------------------------------------------------------------------------------------------
Hungary              R Russell Athletic                  25           08/24/1990            140063
--------------------------------------------------------------------------------------------------
Iceland              R Russell logo                      25           04/20/1983            651983
--------------------------------------------------------------------------------------------------
India                Jerzees logo                        25           03/13/2001            536823
--------------------------------------------------------------------------------------------------
India                R Russell Athletic                  25           02/15/2000            223753
--------------------------------------------------------------------------------------------------
Indonesia            Jerzees logo                        25           09/30/1996            325562
--------------------------------------------------------------------------------------------------
Indonesia            R logo                              25           01/04/1995            322774
--------------------------------------------------------------------------------------------------
Indonesia            R Russell Athletic                  18           05/03/1995            332980
--------------------------------------------------------------------------------------------------
Indonesia            Russell Athletic                    35           03/26/1999            425321
--------------------------------------------------------------------------------------------------
Indonesia            Russell Athletic                    25           05/23/1995            335309
--------------------------------------------------------------------------------------------------
Ireland              Discus and design                   25           03/22/1979             99339
--------------------------------------------------------------------------------------------------
Israel               Discus Athletic and design          25           04/06/1995             86835
--------------------------------------------------------------------------------------------------
Israel               Jerzees logo                        25           10/19/1994             95058
--------------------------------------------------------------------------------------------------
Israel               R Russell Athletic                  25           08/05/1996             95057
--------------------------------------------------------------------------------------------------
Italy                Discus and design                   25           09/17/1985            368484
--------------------------------------------------------------------------------------------------
Italy                Discus Athletic and design          25           12/21/1994            638591
--------------------------------------------------------------------------------------------------
Italy                Discus Athletic and design        25, 28         04/02/1992            565109
--------------------------------------------------------------------------------------------------
</TABLE>

                                      53

<PAGE>

<TABLE>
<CAPTION>
JURISDICTION                  MARKS                    CLASS           REG DATE           REG NO.
--------------------------------------------------------------------------------------------------
<S>                  <C>                             <C>              <C>                <C>
Italy                Jerzees logo                        25           08/28/1987           508122
--------------------------------------------------------------------------------------------------
Italy                R logo                              18           09/04/1992         00653571
--------------------------------------------------------------------------------------------------
Italy                R Russell logo                      25           09/16/1982           408678
--------------------------------------------------------------------------------------------------
Italy                Russell Athletic                    25           07/29/1992         00649111
--------------------------------------------------------------------------------------------------
Italy                Russell Athletic                    18           09/04/1992         00649791
--------------------------------------------------------------------------------------------------
Japan                Cross Creek                         25           10/31/1996          3206367
--------------------------------------------------------------------------------------------------
Japan                design of a discus thrower          24           09/30/1992          2462049
                                                       (local)
--------------------------------------------------------------------------------------------------
Japan                design of a discus thrower      17 (local)       12/24/1986          1921742
--------------------------------------------------------------------------------------------------
Japan                Discus                          24 (local)       08/31/1993          2567150
--------------------------------------------------------------------------------------------------
Japan                Discus Athletic                 17 (local)       04/23/1990          2222133
--------------------------------------------------------------------------------------------------
Japan                Discus Classic Athletic             25           10/27/2000          4427005
--------------------------------------------------------------------------------------------------
Japan                Jerzees                             18           02/20/1998          4117389
--------------------------------------------------------------------------------------------------
Japan                Jerzees                             25           09/05/1997          4054287
--------------------------------------------------------------------------------------------------
Japan                R logo                              24           10/27/1983          1627110
--------------------------------------------------------------------------------------------------
Japan                R logo                              17           02/23/1984          1657431
--------------------------------------------------------------------------------------------------
Japan                R Russell Athletic                  18           03/12/1997          3272365
--------------------------------------------------------------------------------------------------
Japan                R Russell Athletic                  25           07/31/1996          3179438
--------------------------------------------------------------------------------------------------
Japan                R Russell Athletic                  24           07/31/1996          3179437
--------------------------------------------------------------------------------------------------
Japan                R Russell Athletic                  25           06/20/1997          4016355
--------------------------------------------------------------------------------------------------
Japan                Russell                             17           04/27/1983          1580649
--------------------------------------------------------------------------------------------------
Jordan               Jerzees logo                        25           12/31/1990            26796
--------------------------------------------------------------------------------------------------
Jordan               R Russell Athletic                  25           12/31/1990            26798
--------------------------------------------------------------------------------------------------
Kazakhstan           Cross Creek                         25           07/26/1993             2941
--------------------------------------------------------------------------------------------------
Kazakhstan           Jerzees logo                        25           07/26/1993             2940
--------------------------------------------------------------------------------------------------
Kazakhstan           R Russell Athletic                  25           07/26/1993             2942
--------------------------------------------------------------------------------------------------
Kenya                Jerzees logo                    25 (Part A)      10/27/1993            40856
--------------------------------------------------------------------------------------------------
Korea                design of a discus thrower      45 (local)       11/10/1993           279084
--------------------------------------------------------------------------------------------------
Korea                Discus Athletic and design      45 (local)       07/21/1993           269644
--------------------------------------------------------------------------------------------------
Korea                Jerzees logo                        45           11/25/1991           226609
--------------------------------------------------------------------------------------------------
Korea                Jerzees logo                        27           11/01/1991           225251
--------------------------------------------------------------------------------------------------
Korea                R Russell Athletic                  45           05/25/1992           238969
--------------------------------------------------------------------------------------------------
Korea                R Russell Athletic                  27           11/01/1991           225252
--------------------------------------------------------------------------------------------------
Korea                Russell                             18           10/02/1998           424153
--------------------------------------------------------------------------------------------------
Kuwait               Jerzees                             25           11/05/1996            28054
--------------------------------------------------------------------------------------------------
Kuwait               R Russell Athletic                  25           11/09/1999            30836
--------------------------------------------------------------------------------------------------
Latvia               Cross Creek                         25           06/28/1993           M17563
--------------------------------------------------------------------------------------------------
</TABLE>

                                      54
<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
JURISDICTION                MARKS                      CLASS           REG. DATE           REG. NO.
------------------------------------------------------------------------------------------------------------
<S>                  <C>                            <C>               <C>                 <C>
Latvia               Jerzees logo                        25           06/28/1993            M17312
------------------------------------------------------------------------------------------------------------
Latvia               R Russell Athletic                  25           06/28/1993            M17313
------------------------------------------------------------------------------------------------------------
Lebanon              Jerzees logo                        25           02/11/1991             55138
------------------------------------------------------------------------------------------------------------
Lebanon              R Russell Athletic                  25           02/11/1991             55139
------------------------------------------------------------------------------------------------------------
Lithuania            Cross Creek                         25           07/08/1993             11125
------------------------------------------------------------------------------------------------------------
Lithuania            Jerzees logo                        25           07/08/1993             11124
------------------------------------------------------------------------------------------------------------
Lithuania            R Russell Athletic                  25           07/08/1993             11123
------------------------------------------------------------------------------------------------------------
Macau                Russella and design                 25           02/07/2001          N/007398
------------------------------------------------------------------------------------------------------------
Malaysia             Discus Athletic                     25           03/15/1993          93/01609
------------------------------------------------------------------------------------------------------------
Malaysia             Discus Athletic and                 25           03/15/1993          93001608
                     design
------------------------------------------------------------------------------------------------------------
Malaysia             R Russell logo                      25           03/23/1983           MB99192
------------------------------------------------------------------------------------------------------------
Mauritania           Jerzees logo                   18, 24 & 25       05/22/1995            034008
(See O.A.P.I.)
------------------------------------------------------------------------------------------------------------
Mexico               Cross Creek                         25           11/12/1990            436977
------------------------------------------------------------------------------------------------------------
Mexico               Discus Athletic and                 25           09/24/1996            531701
                     design
------------------------------------------------------------------------------------------------------------
Mexico               Discus Classic Athletic             25           05/06/1998            575403
------------------------------------------------------------------------------------------------------------
Mexico               Jerzees logo                        25           07/26/1993            438193
------------------------------------------------------------------------------------------------------------
Mexico               Jerzees World Class and             25           04/14/1994            457107
                     design
------------------------------------------------------------------------------------------------------------
Mexico               R logo                              25           03/29/1993            438194
------------------------------------------------------------------------------------------------------------
Mexico               R logo                              18           10/11/1993            443918
------------------------------------------------------------------------------------------------------------
Mexico               R Russell Athletic             5, 9, 10, 16,     09/29/1989            380360
                                                     18, 21, 25
------------------------------------------------------------------------------------------------------------
Mexico               Russell Athletic                    25           06/15/1993            435756
------------------------------------------------------------------------------------------------------------
Mexico               Russell Athletic                    18           02/13/1995            483995
------------------------------------------------------------------------------------------------------------
Moldova              Cross Creek                         25           03/21/1994               547
------------------------------------------------------------------------------------------------------------
Moldova              Jerzees logo                        25           03/21/1994               504
------------------------------------------------------------------------------------------------------------
Moldova              R Russell Athletic                  25           03/25/1994               505
------------------------------------------------------------------------------------------------------------
Morocco              Jerzees logo                        25           10/24/1994             55079
------------------------------------------------------------------------------------------------------------
New Zealand          Discus and design                   25           03/22/1979            127410
------------------------------------------------------------------------------------------------------------
New Zealand          Discus Athletic and                 25           03/13/1992            216852
                     design
------------------------------------------------------------------------------------------------------------
New Zealand          Jerzees logo                        25           08/13/1990            204029
------------------------------------------------------------------------------------------------------------
New Zealand          R Russell logo                      25           05/21/1985           B158631
------------------------------------------------------------------------------------------------------------
New Zealand          Russell Athletic                    25           08/04/1994            239620
------------------------------------------------------------------------------------------------------------
Nicaragua            Jerzees                             25           06/30/1998             37804
------------------------------------------------------------------------------------------------------------
Nicaragua            R Russell Athletic                  18           01/11/2002             52239
------------------------------------------------------------------------------------------------------------
Nicaragua            R Russell Athletic                  25           01/11/2002             52241
------------------------------------------------------------------------------------------------------------
Nigeria              Jerzees logo                        25           10/26/1993             58011
------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
JURISDICTION                MARKS                      CLASS           REG. DATE          REG. NO.
------------------------------------------------------------------------------------------------------------
<S>                  <C>                             <C>              <C>                 <C>
Norway               Cross Creek                         25           12/30/1992            154242
------------------------------------------------------------------------------------------------------------
Norway               Discus Athletic                     25           02/25/1993            155322
------------------------------------------------------------------------------------------------------------
Norway               Discus Athletic and                 25           07/15/1993           157.888
                     design
------------------------------------------------------------------------------------------------------------
Norway               Jerzees by Russell logo             25           10/01/1987            130169
------------------------------------------------------------------------------------------------------------
Norway               R logo                              18           10/28/1993           159,811
------------------------------------------------------------------------------------------------------------
Norway               R Russell logo                      25           06/28/1984            117469
------------------------------------------------------------------------------------------------------------
Norway               Russell Athletic                    18           12/02/1993            160445
------------------------------------------------------------------------------------------------------------
O.A.P.I.             Jerzees logo                    18, 24 & 25      05/22/1995            034008
African Union
(Benin, Burkina-
Faso, Cameron,
Central African
Republic, Chad,
Congo, Gabon,
Guina (Conakry),
Ivory Coast,
Mali, Mauritania,
Niger, Senegal,
Togo)
------------------------------------------------------------------------------------------------------------
Oman                 Jerzees logo                        25           02/13/1999              5091
------------------------------------------------------------------------------------------------------------
Oman                 R Russell Athletic                  25           02/13/1999              5090
------------------------------------------------------------------------------------------------------------
Pakistan             Jerzees logo                        25           08/29/1994            126365
------------------------------------------------------------------------------------------------------------
Pakistan             R Russell Athletic                  25           08/29/1994            126364
------------------------------------------------------------------------------------------------------------
Panama               Jerzees logo                        25           02/17/1994             61015
------------------------------------------------------------------------------------------------------------
Panama               R Russell Athletic                  25           10/07/1992             56315
------------------------------------------------------------------------------------------------------------
Panama               R Russell Athletic (old             25           01/08/1991             52605
                     style)
------------------------------------------------------------------------------------------------------------
Paraguay             Cross Creek                         25           10/29/1991            150481
------------------------------------------------------------------------------------------------------------
Paraguay             Jerzees                             42           06/09/1992            154228
------------------------------------------------------------------------------------------------------------
Paraguay             Jerzees logo                        25           09/23/1991            149705
------------------------------------------------------------------------------------------------------------
Paraguay             R logo                              25           03/21/1994            167508
------------------------------------------------------------------------------------------------------------
Paraguay             R Russell Athletic                  42           06/09/1992            154229
------------------------------------------------------------------------------------------------------------
Peru                 Cross Creek                         25           02/28/1996            023591
------------------------------------------------------------------------------------------------------------
Peru                 Jerzees                             42           05/14/1992             09779
------------------------------------------------------------------------------------------------------------
Peru                 Jerzees logo                        25           07/09/1991             92088
------------------------------------------------------------------------------------------------------------
Peru                 R Russell Athletic                  25           06/28/1995           0018905
------------------------------------------------------------------------------------------------------------
Peru                 R Russell Athletic                  42           05/14/1992           0009780
------------------------------------------------------------------------------------------------------------
Philippines          Jerzees logo                        25           05/28/1993             55275
------------------------------------------------------------------------------------------------------------
Philippines          R Russell Athletic                  25           07/23/2001           4-1995-
                                                                                            101119
------------------------------------------------------------------------------------------------------------
Poland               Cross Creek                         25           03/25/1991             72636
------------------------------------------------------------------------------------------------------------
Poland               Discus Athletic and                 25           11/22/1993            R80405
                     design
------------------------------------------------------------------------------------------------------------
Poland               Jerzees logo                        25           09/12/1990             69744
------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
JURISDICTION                MARKS                      CLASS           REG. DATE          REG. NO.
------------------------------------------------------------------------------------------------------------
<S>                  <C>                            <C>               <C>              <C>
Poland               R Russell Athletic                  18           06/30/1999           107310
------------------------------------------------------------------------------------------------------------
Poland               R Russell Athletic                  25           09/12/1990            69745
------------------------------------------------------------------------------------------------------------
Portugal             Discus Athletic and                 25           11/22/1993           208999
                     design
------------------------------------------------------------------------------------------------------------
Portugal             Heavy Sweats                        25           12/28/1992           267736
------------------------------------------------------------------------------------------------------------
Portugal             Jerzees By Russell logo             25           05/31/1991           235073
------------------------------------------------------------------------------------------------------------
Portugal             Jerzees logo                        25           05/28/1991           242810
------------------------------------------------------------------------------------------------------------
Portugal             R logo                              25           09/30/1992           264729
------------------------------------------------------------------------------------------------------------
Portugal             R logo                              18           06/08/1994          285.958
------------------------------------------------------------------------------------------------------------
Portugal             R Russell Logo                      25           09/30/1992           264728
------------------------------------------------------------------------------------------------------------
Portugal             Russell Athletic                    18           06/03/1994          285.959
------------------------------------------------------------------------------------------------------------
Qatar                Jerzees logo                        25           09/01/1997             8282
------------------------------------------------------------------------------------------------------------
Qatar                R Russell Athletic                  25           04/15/1997             8281
------------------------------------------------------------------------------------------------------------
Ras-al-              Jerzees logo                        25           04/23/1992             7991
Khaimah
------------------------------------------------------------------------------------------------------------
Ras-al-Khaimah       R Russell Athletic                  25           04/23/1992             7992
------------------------------------------------------------------------------------------------------------
Romania                                                  25           01/08/1991            17627
                     Jerzees logo
------------------------------------------------------------------------------------------------------------
Romania              Discus Athletic and                 25           03/13/1992            21604
                     design
------------------------------------------------------------------------------------------------------------
Romania              R Russell Athletic                  25           01/08/1991            18175
------------------------------------------------------------------------------------------------------------
Russia               Cross Creek                         25           03/26/1991            99822
------------------------------------------------------------------------------------------------------------
Russia               Discus Athletic                     25           12/07/1993           112370
------------------------------------------------------------------------------------------------------------
Russia               Jerzees logo                        25           09/13/1990            96176
------------------------------------------------------------------------------------------------------------
Russia               R Russell Athletic                  25           09/13/1990            96175
------------------------------------------------------------------------------------------------------------
Russia               Russell Athletic                    25           07/26/1989            88210
------------------------------------------------------------------------------------------------------------
Saudi Arabia         Discus Athletic                     25           04/24/1994           305/67
------------------------------------------------------------------------------------------------------------
Saudi Arabia         Jerzees logo                        25           03/20/1991            24971
------------------------------------------------------------------------------------------------------------
Saudi Arabia         R Russell Athletic                  25           03/20/1991            24972
------------------------------------------------------------------------------------------------------------
Sierra Leone         Jerzees logo                        25           12/11/1995            14274
------------------------------------------------------------------------------------------------------------
Singapore            Discus                              25           03/09/1994          1959/94
------------------------------------------------------------------------------------------------------------
Singapore            Discus Athletic and                 25           03/10/1993       T93/01735C
                     design
------------------------------------------------------------------------------------------------------------
Singapore            Jerzees logo (old style)            25           09/22/1990         B6596/90
------------------------------------------------------------------------------------------------------------
Singapore            R Russell Logo                      25           03/21/1983          B141183
------------------------------------------------------------------------------------------------------------
Singapore            Russell Athletic                    25           08/29/1994       T94/07486E
------------------------------------------------------------------------------------------------------------
Slovak               Discus Athletic and                 25           04/24/1995           174214
Republic             design
------------------------------------------------------------------------------------------------------------
Slovak               R Russell Athletic                  25           08/09/1990           168811
Republic
------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
JURISDICTION                MARKS                      CLASS           REG. DATE            REG. NO.
------------------------------------------------------------------------------------------------------------
<S>                  <C>                            <C>               <C>                   <C>
Slovakia             Jerzees logo                        25           08/09/1990              168812
------------------------------------------------------------------------------------------------------------
Slovenia             Cross Creek                         25           02/25/1991            Z9180395
------------------------------------------------------------------------------------------------------------
Slovenia             Jerzees logo                        25           08/13/1990            Z9081426
------------------------------------------------------------------------------------------------------------
Slovenia             R Russell Athletic                  25           08/13/1990            Z9081425
------------------------------------------------------------------------------------------------------------
South Africa         Discus Athletic and                 25           01/30/1992             92/0733
                     design
------------------------------------------------------------------------------------------------------------
South Africa         Jerzees logo                        25           09/15/1994             94/9992
------------------------------------------------------------------------------------------------------------
South Africa         R logo                              25           09/15/1994            94/09991
------------------------------------------------------------------------------------------------------------
South Africa         Russell Athletic                    25           09/15/1994             94/9990
------------------------------------------------------------------------------------------------------------
Spain                Discus Athletic and                 25           07/16/1995             1689167
                     design
------------------------------------------------------------------------------------------------------------
Spain                Jerzees by Russell logo             25           10/20/1987             1163982
------------------------------------------------------------------------------------------------------------
Spain                Jerzees logo                        25           02/20/1989             1226999
------------------------------------------------------------------------------------------------------------
Spain                R logo                              18           02/05/1996             1764609
------------------------------------------------------------------------------------------------------------
Spain                R logo                              25           02/05/1996             1764610
------------------------------------------------------------------------------------------------------------
Spain                R logo                              28           02/05/1996             1765611
------------------------------------------------------------------------------------------------------------
Spain                R logo                              39           02/05/1996             1764612
------------------------------------------------------------------------------------------------------------
Spain                R logo                              18           10/16/1992             1725271
------------------------------------------------------------------------------------------------------------
Spain                R Russell Athletic                  39           10/20/1998             1686189
                     Espanola SL
------------------------------------------------------------------------------------------------------------
Spain                Russell Athletic                    25           04/18/1995             1960404
------------------------------------------------------------------------------------------------------------
Sri Lanka            Jerzees logo                        25                                    71817
------------------------------------------------------------------------------------------------------------
Sweden               Discus Athletic and                 25           02/12/1993              246508
                     design
------------------------------------------------------------------------------------------------------------
Sweden               Jerzees Built To Last               25           04/29/1994              257591
                     logo
------------------------------------------------------------------------------------------------------------
Sweden               Jerzees By Russell                  25           04/29/1994              257586
                     logo
------------------------------------------------------------------------------------------------------------
Sweden               Jerzees Heavy Sweats                25           10/08/1993              252288
                     logo
------------------------------------------------------------------------------------------------------------
Sweden               Jerzees logo                        25           04/13/1995              300693
------------------------------------------------------------------------------------------------------------
Sweden               R logo                              18           02/19/1993              246893
------------------------------------------------------------------------------------------------------------
Sweden               R logo                              25           04/26/1985              195934
------------------------------------------------------------------------------------------------------------
Sweden               Russell Athletic                    25           03/12/1993              253716
------------------------------------------------------------------------------------------------------------
Sweden               Russell Athletic                    18           08/27/1993              251190
------------------------------------------------------------------------------------------------------------
Switzerland          Discus Athletic and                 25           07/06/1992              400881
                     design
------------------------------------------------------------------------------------------------------------
Switzerland          Jerzees                             25           02/07/2000              469162
------------------------------------------------------------------------------------------------------------
Switzerland          Jerzees Built to Last logo          25           05/31/1988              363636
------------------------------------------------------------------------------------------------------------
Switzerland          Jerzees by Russell logo             25           10/08/1986              350088
------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
JURISDICTION                MARKS                      CLASS           REG. DATE            REG. NO.
------------------------------------------------------------------------------------------------------------
<S>                  <C>                            <C>               <C>                   <C>
Switzerland          Jerzees Heavy Sweats                25           09/17/1990            384.622
                     logo
------------------------------------------------------------------------------------------------------------
Switzerland          R logo                              18           09/01/1992             402465
------------------------------------------------------------------------------------------------------------
Switzerland          R Russell logo                      25           10/08/1986             350089
------------------------------------------------------------------------------------------------------------
Switzerland          Russell Athletic                    18           09/01/1992             402501
------------------------------------------------------------------------------------------------------------
Taiwan               Cross Creek                         28           01/01/2001             923755
------------------------------------------------------------------------------------------------------------
Taiwan               Cross Creek                         40           09/16/1994             651795
------------------------------------------------------------------------------------------------------------
Taiwan               Cross Creek                         41           06/16/1991             526066
------------------------------------------------------------------------------------------------------------
Taiwan               Cross Creek                         28           01/01/2001             923755
------------------------------------------------------------------------------------------------------------
Taiwan               Discus                          40 (local)       03/01/1995             672243
------------------------------------------------------------------------------------------------------------
Taiwan               Discus Athletic and             40 (local)       04/01/1994             638601
                     design
------------------------------------------------------------------------------------------------------------
Taiwan               Jerzees logo                        40           07/01/1991             527281
------------------------------------------------------------------------------------------------------------
Taiwan               Jerzees logo                        41           06/16/1991             526065
------------------------------------------------------------------------------------------------------------
Taiwan               R logo                              28           10/01/1998             820115
------------------------------------------------------------------------------------------------------------
Taiwan               R logo                              18           01/16/1999             835881
------------------------------------------------------------------------------------------------------------
Taiwan               R Russell Athletic                  28           05/16/1999             852503
------------------------------------------------------------------------------------------------------------
Taiwan               R Russell Athletic                  18           01/16/1999             835904
------------------------------------------------------------------------------------------------------------
Taiwan               R Russell Athletic                  25           12/01/1999             877099
------------------------------------------------------------------------------------------------------------
Tanzania             Jerzees logo                        25           11/11/1993              22688
------------------------------------------------------------------------------------------------------------
Thailand             Discus Athletic and                 28           10/18/1994              20160
                     design
------------------------------------------------------------------------------------------------------------
Thailand             Discus Athletic and                 25           01/15/1997              54186
                     design
------------------------------------------------------------------------------------------------------------
Thailand             Jerzees logo                        25           09/18/1990             148677
------------------------------------------------------------------------------------------------------------
Thailand             Russell                             25           03/30/1983            Kor2518
------------------------------------------------------------------------------------------------------------
Tunisia              Jerzees logo                        25           10/10/1994          EE94.1122
------------------------------------------------------------------------------------------------------------
Turkey               Jerzees logo                        25           10/23/1991             132493
------------------------------------------------------------------------------------------------------------
Turkey               R Russell Athletic                  25           10/23/1991             132623
------------------------------------------------------------------------------------------------------------
Turkmenistan         Cross Creek                         25           08/06/1998               3444
------------------------------------------------------------------------------------------------------------
Turkmenistan         Jerzees logo                        25           08/06/1998               3445
------------------------------------------------------------------------------------------------------------
Turkmenistan         R Russell Athletic                  25           08/06/1998               3446
------------------------------------------------------------------------------------------------------------
Ukraine              Cross Creek                         25           03/26/1991               3150
------------------------------------------------------------------------------------------------------------
Ukraine              Jerzees logo                        25           09/13/1990               3149
------------------------------------------------------------------------------------------------------------
Ukraine              R Russell Athletic                  25           09/13/1990               3148
------------------------------------------------------------------------------------------------------------
United Arab          Cross Creek                         25           06/21/1994                202
Emirates
------------------------------------------------------------------------------------------------------------
United Arab          Discus Athletic                     25           04/23/1992              80289
Emirates
------------------------------------------------------------------------------------------------------------
United Arab          Jerzees logo                        25           05/31/1994                196
Emirates
------------------------------------------------------------------------------------------------------------
United Arab          R Russell Athletic                  25           05/31/1994                197
------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
JURISDICTION                MARKS                      CLASS           REG. DATE            REG. NO.
------------------------------------------------------------------------------------------------------------
<S>                  <C>                            <C>               <C>                   <C>
Emirates
------------------------------------------------------------------------------------------------------------
United               Discus                              25           05/10/1979            B1114066
Kingdom
------------------------------------------------------------------------------------------------------------
United               Discus Athletic                     25           01/21/1992             1488562
Kingdom
------------------------------------------------------------------------------------------------------------
United               DISCUS ATHLETIC and Design          25           05/11/1994             1571741
Kingdom
------------------------------------------------------------------------------------------------------------
United               JE Jerzees American                 25           05/29/1992          B1,501,700
Kingdom              Active Wear logo
------------------------------------------------------------------------------------------------------------
United               Jerzees Built to Last logo     25 Schedule 4     05/19/1988            B1345016
Kingdom
------------------------------------------------------------------------------------------------------------
United               Jerzees logo                        25           06/03/1993            A1537597
Kingdom
------------------------------------------------------------------------------------------------------------
United               Jerzees logo (old style)       25 Schedule 4     05/09/1986            B1266725
Kingdom
------------------------------------------------------------------------------------------------------------
United               R logo                              18           09/01/1992            B1511239
Kingdom
------------------------------------------------------------------------------------------------------------
United               R Russell logo                      25           09/02/1982            B1181100
Kingdom
------------------------------------------------------------------------------------------------------------
United               Russell Athletic                    25           02/28/1994             1563730
Kingdom
------------------------------------------------------------------------------------------------------------
United               Russell Athletic                  18, 25         10/11/1996             1571350
Kingdom
------------------------------------------------------------------------------------------------------------
Uruguay              Discus Athletic and                 25           05/24/1994              252110
                     design
------------------------------------------------------------------------------------------------------------
Uruguay              Jerzees                             42           04/24/1992              249601
------------------------------------------------------------------------------------------------------------
Uruguay              Jerzees logo                        25           11/20/1991              242876
------------------------------------------------------------------------------------------------------------
Uruguay              R logo                              25           05/13/1998              285563
------------------------------------------------------------------------------------------------------------
Uruguay              R Russell Athletic                  25           10/29/1997              285562
------------------------------------------------------------------------------------------------------------
Uruguay              R Russell Athletic                  42           04/24/1992              249602
------------------------------------------------------------------------------------------------------------
Uzbekistan           Cross Creek                         25           03/26/1991                 808
------------------------------------------------------------------------------------------------------------
Uzbekistan           Jerzees logo                        25           09/13/1990                 807
------------------------------------------------------------------------------------------------------------
Uzbekistan           R Russell Athletic                  25           09/13/1990                 809
------------------------------------------------------------------------------------------------------------
Venezuela            Cross Creek                         25            9/10/1999             Not yet
                                                                                            assigned
------------------------------------------------------------------------------------------------------------
Venezuela            Discus Athletic                     25           01/05/1996             unknown
------------------------------------------------------------------------------------------------------------
Venezuela            Jerzees logo                        25           11/01/1994              172242
------------------------------------------------------------------------------------------------------------
Venezuela            R Russell logo                      39           06/12/1985             116443F
------------------------------------------------------------------------------------------------------------
Venezuela            R Russell Athletic                  25           10/31/1997             P200832
------------------------------------------------------------------------------------------------------------
Venezuela            R Russell Athletic                  43           10/31/1997             N037117
------------------------------------------------------------------------------------------------------------
Vietnam              Jerzees logo                        25           07/29/1994               12769
------------------------------------------------------------------------------------------------------------
Vietnam              R Russell Athletic                  25           07/29/1994               12770
------------------------------------------------------------------------------------------------------------
Yugoslavia           Cross Creek                         25           02/25/1991               37557
------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
JURISDICTION                MARKS                      CLASS           REG. DATE            REG. NO.
------------------------------------------------------------------------------------------------------------
<S>                  <C>                            <C>               <C>                   <C>
Yugoslavia           Discus Athletic and                 25           11/24/1995                 39192
                     design
------------------------------------------------------------------------------------------------------------
Yugoslavia           Jerzees logo                        25           08/13/1990                 36988
------------------------------------------------------------------------------------------------------------
Yugoslavia           R Russell Athletic                  25           08/13/1990                 36565
------------------------------------------------------------------------------------------------------------
Zimbabwe             Jerzees logo                        25           09/23/1994               1427/94
------------------------------------------------------------------------------------------------------------
</TABLE>

                               DeSoto Mills, Inc.
                             Trademark Registrations

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
JURISDICTION                MARK                       CLASS           REG. DATE              REG. NO.
------------------------------------------------------------------------------------------------------------
<S>                  <C>                            <C>               <C>                    <C>
Canada               Desoto Player's Club and design     25           01/12/1996               452,846
------------------------------------------------------------------------------------------------------------
Canada               The Golfer and design               25           12/02/1996               466,897
------------------------------------------------------------------------------------------------------------
Canada               Performance Club                    25           08/21/1997             TMA481069
------------------------------------------------------------------------------------------------------------
Canada               Desoto Outdoors and design          25           08/13/1997             TMA480416
------------------------------------------------------------------------------------------------------------
Canada               Player's Performance                25           10/27/1995               449,405
------------------------------------------------------------------------------------------------------------
Canada               The Worker and design               25           07/28/1995               445,699
------------------------------------------------------------------------------------------------------------
Canada               Athletic Club                       25           04/28/1995                442287
------------------------------------------------------------------------------------------------------------
Japan                Desoto Player's Club and design     25           07/31/1996               3183278
------------------------------------------------------------------------------------------------------------
Mexico               Player's Performance and design     25           10/05/1994                586895
------------------------------------------------------------------------------------------------------------
Mexico               DeSoto Player's Club and design     25           08/22/1994                649935
------------------------------------------------------------------------------------------------------------
Mexico               Player's Performance                25           08/31/1998                476120
------------------------------------------------------------------------------------------------------------
</TABLE>

                               Russell Corporation
                             Trademark Applications

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
JURISDICTION                            MARK                           CLASS          APP FILED            APP NO.
----------------------------------------------------------------------------------------------------------------------------
<S>                                <C>                              <C>              <C>                  <C>
Brazil                             Discus Athletic                  18               04/26/2001           823210740
----------------------------------------------------------------------------------------------------------------------------
CTM~~EU or EC countries            Russell Athletic                 18, 25, 28,      01/22/1997           000451856
are:~Austria, Belgium, Denmark,                                     35
Finland, France, Germany,
Greece, Ireland, Italy,
Luxembourg, Netherlands,
Portugal, Spain, Sweden, and UK
----------------------------------------------------------------------------------------------------------------------------
El Salvador                        R Russell Athletic               18               08/13/1996           1196-3430
----------------------------------------------------------------------------------------------------------------------------
Guatemala                          R Russell Athletic               25               05/29/1996             3946/96
----------------------------------------------------------------------------------------------------------------------------
Guatemala                          R Russell Athletic               18               05/29/1996             3947/96
----------------------------------------------------------------------------------------------------------------------------
Guatemala                          Russell Athletic                 18               00/00/2002           1504-2002
----------------------------------------------------------------------------------------------------------------------------
Guatemala                          Russell Athletic                 25               00/00/2002           1505-2002
----------------------------------------------------------------------------------------------------------------------------
Guatemala                          R logo                           18               00/00/2002           1507-2002
----------------------------------------------------------------------------------------------------------------------------
Guatemala                          R logo                           25               00/00/2002           1506-2002
----------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
JURISDICTION                           MARK                       CLASS          APP FILED             APP NO.
------------------------------------------------------------------------------------------------------------------------
<S>                            <C>                              <C>              <C>                  <C>
India                          Discus                           25               03/09/1994                621670
------------------------------------------------------------------------------------------------------------------------
India                          Discus Athletic and design       25               02/25/1993                591523
------------------------------------------------------------------------------------------------------------------------
Japan                          DISCUS                           18, 25           04/23/2001            2001-37333
------------------------------------------------------------------------------------------------------------------------
Japan                          Russell Athletic Dri Power       25               11/09/2001           2001-100622
------------------------------------------------------------------------------------------------------------------------
Malaysia                       Jerzees logo                     25               09/05/1994              94/08203
------------------------------------------------------------------------------------------------------------------------
Malaysia                       Russell Athletic (block          25               09/05/1994               9408204
                               letters)
------------------------------------------------------------------------------------------------------------------------
Panama                         Lady Player 3 Pair and                            11/26/2001                118332
                               design
------------------------------------------------------------------------------------------------------------------------
Panama                         DeSoto Player's Club and                          11/26/2001                118331
                               design
------------------------------------------------------------------------------------------------------------------------
Panama                         Lady Player & design                              11/26/2001                118330
------------------------------------------------------------------------------------------------------------------------
Panama                         Player's Performance and                          11/26/2001                118323
                               design
------------------------------------------------------------------------------------------------------------------------
Paraguay                       R Russell Athletic               25               05/10/1991                 05739
------------------------------------------------------------------------------------------------------------------------
Portugal                       Russell Athletic                 25               02/13/1995                307265
------------------------------------------------------------------------------------------------------------------------
South Africa                   Russell Athletic                 35               12/12/1997              97/19376
------------------------------------------------------------------------------------------------------------------------
Spain                          R logo Calzados Russell          25               01/08/1992            M1.677.112
------------------------------------------------------------------------------------------------------------------------
Spain                          Russell Athletic                 18               10/16/1992               1725272
------------------------------------------------------------------------------------------------------------------------
Sri Lanka                      R Russell Athletic               25               09/14/1994                 71815
------------------------------------------------------------------------------------------------------------------------
Uruguay                        Cross Creek                      25               03/18/1991                242875
------------------------------------------------------------------------------------------------------------------------
Venezuela                      R Russell Athletic               43               02/21/1996             96-002083
                                                                (tradename)
------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                   Copyrights

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
DESCRIPTION                              OWNER                     REGISTRATION NO.           ISSUE DATE
------------------------------------------------------------------------------------------------------------
<S>                                      <C>                       <C>                        <C>
Russell Athletic Team Specialist         Russell Corporation       TX-152-984 (USA)           12/5/1978
Catalog/1979
------------------------------------------------------------------------------------------------------------
The Little T Shirt that Made Good        Russell Corporation       TX-1-417-069 (USA)         8/28/1984
------------------------------------------------------------------------------------------------------------
Cross Creek Bogey Man                    Cross Creek Apparel,      VA-639-939 (USA)           5/31/1994
(embroidery design on shirt)             Inc.
------------------------------------------------------------------------------------------------------------
Russell Athletic R Logo                  Russell Corporation       200-F-0154 (China)         9/25/2000
------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

                               RUSSELL CORPORATION
                                     PATENTS

U.S. PATENTS:

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
DESCRIPTION                             REGISTRATION NO.           ISSUE DATE
------------------------------------------------------------------------------------------------------------
<S>                                     <C>                        <C>
Dye Machine Festooner                   6,305,592                  October 23, 2001
------------------------------------------------------------------------------------------------------------
Method for Inspecting, Detecting        4,864,150                  September 5, 1989
and Distinguishing Sides of
Fabrics
------------------------------------------------------------------------------------------------------------
Method and Apparatus for Sensing        4,799,613                  January 24, 1989
the Preferred Side of Garment
Portions
------------------------------------------------------------------------------------------------------------
Automatic Garment Portion               4,693,613                  September 15, 1987
Loader
------------------------------------------------------------------------------------------------------------
Automatic Garment Portion               4,633,604                  January 6, 1987
Loader
------------------------------------------------------------------------------------------------------------
</TABLE>

INTERNATIONAL PATENTS:

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
DESCRIPTION                   REGISTRATION NO.             COUNTRY OF           ISSUE DATE
                                                           REGISTRATION
------------------------------------------------------------------------------------------------------------
<S>                           <C>                          <C>                  <C>
Method and Apparatus          1322130                      Canada               September 14, 1993
for Sensing the Preferred
Side of Garment Portions
------------------------------------------------------------------------------------------------------------
Method and Apparatus          88312072.7                   Sweden               December 20, 1988
for Sensing the Preferred
Side of Garment Portions
------------------------------------------------------------------------------------------------------------
Method and Apparatus          88312072.7                   Spain                December 20, 1988
for Sensing the Preferred
Side of Garment Portions
------------------------------------------------------------------------------------------------------------
Method and Apparatus          374314                       England              December 20, 1988
for Sensing the Preferred
Side of Garment Portions
------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
DESCRIPTION                            REGISTRATION NO.             COUNTRY OF          ISSUE DATE
                                                                    REGISTRATION
--------------------------------------------------------------------------------------------------------------------
<S>                                    <C>                          <C>                 <C>
Method and Apparatus for               374314                       Austria             December 20, 1988
Sensing the Preferred Side of
Garment Portions

--------------------------------------------------------------------------------------------------------------------
Method and Apparatus for               374314                       Luxembourg          December 20, 1988
Sensing the Preferred Side of
Garment Portions
--------------------------------------------------------------------------------------------------------------------
Method and Apparatus for               374314                       Netherlands         December 20, 1988
Sensing the Preferred Side of
Garment Portions
--------------------------------------------------------------------------------------------------------------------
Method and Apparatus for               374314                       Italy               December 20, 1988
Sensing the Preferred Side of
Garment Portions
--------------------------------------------------------------------------------------------------------------------
Method and Apparatus for               374314                       Switzerland         December 20, 1988
Sensing the Preferred Side of
Garment Portions
--------------------------------------------------------------------------------------------------------------------
Method and Apparatus for               374314                       France              December 20, 1988
Sensing the Preferred Side of
Garment Portions
--------------------------------------------------------------------------------------------------------------------
Method and Apparatus for               374314                       Belgium             December 20, 1988
Sensing the Preferred Side of
Garment Portions
--------------------------------------------------------------------------------------------------------------------
Method and Apparatus for               2745139                      Japan               January 10, 1989
Sensing the Preferred Side of
Garment Portions
--------------------------------------------------------------------------------------------------------------------
Method and Apparatus for               3008040                      Greece              December 20, 1988
Sensing the Preferred Side of
Garment Portions
--------------------------------------------------------------------------------------------------------------------
Method and Apparatus for               P3879950.2                   Germany             December 20, 1988
Sensing the Preferred Side of
Garment Portions
--------------------------------------------------------------------------------------------------------------------
Method and Apparatus for               606246                       Australia           December 23, 1988
Sensing the Preferred Side of
Garment Portions
--------------------------------------------------------------------------------------------------------------------
Automatic Garment Portion              2623088                      Japan               April 11, 1997
Loader
--------------------------------------------------------------------------------------------------------------------
Automatic Garment Portion              8639017.1                    Spain               November 18, 1986
Loader
--------------------------------------------------------------------------------------------------------------------
Automatic Garment Portion              8639017.1                    Sweden              November 18, 1986
Loader
--------------------------------------------------------------------------------------------------------------------
Automatic Garment Portion              225751                       Switzerland         November 18, 1986
Loader
--------------------------------------------------------------------------------------------------------------------
Automatic Garment Portion              225751                       England             November 18, 1986
Loader
--------------------------------------------------------------------------------------------------------------------
Automatic Garment Portion              225751                       Italy               November 18, 1986
Loader
--------------------------------------------------------------------------------------------------------------------
Automatic Garment Portion              225751                       Luxembourg          November 18, 1986
Loader
--------------------------------------------------------------------------------------------------------------------
Automatic Garment Portion              225751                       Netherlands         November 18, 1986
Loader
--------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
--------------------------------------------------------------------------------------------------------------------
<S>                                    <C>                          <C>                 <C>
Loader
--------------------------------------------------------------------------------------------------------------------
Automatic Garment Portion              225751                       Austria             November 18, 1986
Loader
--------------------------------------------------------------------------------------------------------------------
Automatic Garment Portion              225751                       Belgium             November 18, 1986
Loader
--------------------------------------------------------------------------------------------------------------------
Automatic Garment Portion              225751                       France              November 18, 1986
Loader
--------------------------------------------------------------------------------------------------------------------
Automatic Garment Portion              3001694                      Greece              November 18, 1986
Loader
--------------------------------------------------------------------------------------------------------------------
Automatic Garment Portion              P3677348.4                   Germany             November 18, 1986
Loader
--------------------------------------------------------------------------------------------------------------------
Automatic Garment Portion              586521                       Australia           November 28, 1986
Loader
--------------------------------------------------------------------------------------------------------------------
Automatic Garment Portion              1272227                      Canada              July 31, 1990
Loader
--------------------------------------------------------------------------------------------------------------------
</TABLE>

                               Russell Corporation
                               Patent Applications

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
OWNER                                  DESCRIPTION                       DATE FILED                APPLICATION NO.
--------------------------------------------------------------------------------------------------------------------
<S>                                    <C>                               <C>                       <C>
Russell Corporation                    Garment Portion Processing        7/20/2000                 09/620,052
                                       Assembly
--------------------------------------------------------------------------------------------------------------------
Russell Corporation                    Bale Processing Assembly          7/21/2000                 09/620,795
--------------------------------------------------------------------------------------------------------------------
Russell Corporation                    Improved Dye Machine              2/9/2000                  09/501,389
                                       Festooner
--------------------------------------------------------------------------------------------------------------------
Russell Corporation                    Pebble Fabric                     4/16/2001                 09/835,902
--------------------------------------------------------------------------------------------------------------------
</TABLE>

                               TRADEMARK LICENSES

                             [REVIEWING FOR UPDATES]

LICENSES WHERE A BORROWER IS LICENSOR:

AB COMPETITION AGREEMENT
BRILLIANCE ELEMENT LICENSE AGREEMENT
D'LIGHT NV AGREEMENT
ESSENCE GMBH AGREEMENT
HIDARY LICENSE AGREEMENT
KEN TRADE SRL AGREEMENT
MINT APPAREL LIMITED AGREEMENT
SIBNERHEGNER LIMITED LICENSE AGREEMENT
TWINS A/S AGREEMENT
UNIVERSAL-EXES OY AGREEMENT
FROS INTERNATIONAL B.V. AGREEMENT

<PAGE>

RINTEL PROPERTIES, INC. AGREEMENT (Russell Asset Management, Inc. licenses to
RINTEL Properties, Inc.)
RINTEL PROPERTIES, INC. AGREEMENTS (RINTEL Properties, Inc. sublicenses to
Russell Corporation, DeSoto Mills, Inc. and Cross Creek Apparel, LLC)

LICENSES WHERE A BORROWER IS LICENSEE:

RINTEL PROPERTIES, INC. AGREEMENTS (RINTEL Properties, Inc. sublicenses to
Russell Corporation, DeSoto Mills, Inc. and Cross Creek Apparel, LLC)
AFL LICENSE AGREEMENT
BASS LICENSE & SPONSORSHIP AGREEMENT
CHARTER FABRICS LICENSE
CROSSBOW PRIVATE LABEL MERCHANDISE AGREEMENT
FAB-CON MACHINERY DEVELOPMENT CORP.
HAAS OUTDOORS, INC. MOSSY OAK LICENSE AGREEMENTS
MAJOR LEAGUE BASEBALL PROPERTIES, INC.
MAJOR LEAGUE BASEBALL PLAYERS ASSOCIATION, INC.
MALDEN MILLS LICENSE AGREEMENT
MINOR LEAGUE BASEBALL ON-FIELD LICENSE AGREEMENT
TUBULAR TEXTILE, LLC
WOODWAY USA, INC. LICENSE AGREEMENT
AIR FORCE UNIVERSITY
AKRON, U/
ALABAMA A&M UNIVERSITY
ALABAMA, U/
ALABAMA - BIRMINGHAM, U/
ALABAMA - HUNTSVILLE, U/
ALABAMA STATE UNIVERSITY
ALASKA - FAIRBANKS, U/
AMERICAN UNIVERSITY
APPALACHIAN STATE
ARIZONA, U/
ARIZONA STATE UNIVERSITY
ARKANSAS, U/
ARKANSAS, U/ - PINE BLUFF
ARKANSAS STATE UNIVERSITY
ASHLAND UNIVERSITY
ARMY - US MILITARY ACADEMY
AUBURN UNIVERSITY
BALL STATE UNIVERSITY
BAYLOR UNIVERSITY
BEMIDJI STATE UNIVERSITY
BOISE STATE UNIVERSITY
BOSTON COLLEGE
BOSTON UNIVERSITY
BOWLING GREEN STATE UNIV.

<PAGE>

BRADLEY UNIVERSITY
BRIGHAM YOUNG
BROWN UNIVERSITY
BUTLER UNIVERSITY
CALIFORNIA - BERKELEY, U/
CALIFORNIA - DAVIS, U/
CALIFORNIA - LOS ANGELES, U/
CALIFORNIA - SANTA BARBARA, U/
CAL STATE CHICAGO
CAL STATE FULLERTON

<PAGE>

CAL STATE NORTHRIDGE
CAL STATE SACRAMENTO
CAL STATE SAN MARCOS
CALIFORNIA U - PENNSYLVANIA
CANISIUS COLLEGE
CENTRAL FLORIDA
CENTRAL MICHIGAN UNIV.
CENTRAL MISSOURI ST UNIV.
CENTRAL WASHINGTON
CINCINNATI, U/
CITADEL UNIVERSITY
CLARION
CLEMSON UNIVERSITY
COLGATE UNIVERSITY
COLLEGE OF CHARLESTON
COLORADO SCHOOL OF MINES
COLORADO STATE
COLORADO, U/
COLUMBIA UNIVERSITY
CONNECTICUT, U/
CORNELL UNIVERSITY
CREIGHTON UNIVERSITY
DAYTON, U/
DENISON UNIVERSITY
DETROIT MERCY, U/
DRAKE UNIVERSITY
DREXEL UNIVERSITY
DUKE UNIVERSITY
EAST CAROLINA UNIVERSITY
EAST TENNESSEE ST UNIV.
EASTERN KENTUCKY UNIV.
EASTERN ILLINOIS UNIVERSITY
EASTERN MICHIGAN UNIVERSITY
EMPORIA STATE UNIVERSITY
EVANSVILLE, U/
FAIRLEIGH DICKINSON UNIV.
FERRIS STATE UNIVERSITY
FLORIDA, U/
FLORIDA A&M
FLORIDA ATLANTIC UNIVERSITY
FLORIDA GULF COAST UNIVERSITY
FLORIDA STATE UNIVERSITY
FORT HAYS STATE UNIVERSITY
FRESNO STATE UNIVERSITY
GEORGE MASON UNIVERSITY

<PAGE>

GEORGE WASHINGTON UNIVERSITY
GEORGIA , U/
GEORGIA COLLEGE AND STATE
GEORGIA STATE UNIVERSITY
GEORGIA SOUTHERN UNIVERSITY
GEORGIA TECH
GEORGETOWN UNIVERSITY
GRAMBLING STATE UNIVERSITY
HARTFORD, U/
HOFSTRA UNIVERSITY
HOUSTON UNIVERSITY
IDAHO, U/
IDAHO STATE UNIVERSITY
ILLINOIS, U/
ILLINOIS STATE UNIVERSITY
INDIANA STATE UNIVERSITY
INDIANA UNIV-PENNSYLVANIA
IOWA STATE UNIVERSITY
IOWA, U/
JACKSON STATE UNIVERSITY
JACKSONVILLE ST UNIV.
JAMES MADISON UNIVERSITY
KANSAS, U/
KANSAS STATE UNIVERSITY
KENTUCKY, U/
KENT STATE
LAMAR UNIVERSITY
LINCOLN UNIVERSITY
LOUISIANA - LAFAYETTE, U/
LOUISIANA ST UNIV.
LOYOLA COLLEGE - MARYLAND
LOYOLA UNIVERSITY CHICAGO
MAINE, U/
MANHATANVILLE COLLEGE
MARSHALL U/ MARSHALL GRAD
MARYLAND, U/
MASSACHUSETTS - AMHERST, U/
MEMPHIS, U/
MERCER UNIVERSITY
MIAMI, U/
MIAMI UNIVERSITY - OHIO
MICHIGAN, U/
MICHIGAN STATE UNIVERSITY
MIDDLE TENNESSEE ST UNIV.
MINNESOTA STATE U - MANKATO
MISSISSIPPI, U/

<PAGE>

MISSISSIPPI STATE UNIVERSITY
MISSOURI, U/
MISSOURI - KANSAS CITY, U/
MONTANA, U/
MONTANA STATE UNIVERSITY
MONTCLAIR STATE
MOREHEAD STATE UNIVERSITY
MORGAN STATE UNIVERSITY
U.S NAVAL ACADEMY
NEBRASKA, U/
NEBRASKA  KEARNEY, U/
NEVADA, U/
NEVADA LAS VEGAS (UNLV)
NEW HAMPSHIRE, U/
NEW MEXICO, U/
NEW MEXICO ST UNIV.
NEW ORLEANS, U/
NEW YORK STATE
NEW YORK UNIV
NIAGRA UNIVERSITY
NORFOLK STATE UNIVERSITY
NORTH CAROLINA A&T
NORTH CAROLINA (UNC) CH. HILL
NO. CAROLINA - GREENSBORO
NORTH CAROLINA CENTRAL
NORTH CAROLINA CHARLOTTE
NO. CAROLINA ST. UNIV.
NO. CAROLINA - WILMINGTON
NORTH DAKOTA, U/
NORTH FLORIDA, U/
NORTH GEORGIA STATE UNIVERSITY
NORTH TEXAS UNIVERSITY
NORTHERN ARIZONA
NORTHERN ILLINOIS UNIV.
NORTHERN IOWA, U/
NORTHWESTERN UNIVERSITY
NOTRE DAME
OHIO UNIVERSITY
OHIO STATE UNIVERSITY
OKLAHOMA, U/
OKLAHOMA STATE UNIVERSITY
OLD DOMINION UNIVERSITY
ORAL ROBERTS UNIVERSITY
U/ OREGON
ORERGON STATE UNIVERSITY
PACIFIC, U/

<PAGE>

PENNSYLVANIA, U/
PENN STATE UNIVERSITY
PEPPERDINE UNIVERSITY
PITTSBURGH, U/
PITTSBURG STATE UNIVERSITY
PORTLAND STATE UNIVERSITY
PRAIRIE VIEW A&M UNIVERSITY
PRINCETON UNIVERSITY
PURDUE UNIVERSITY
RHODE ISLAND, U/
RICE UNIVERSITY
RICHMOND, U/
RUTGERS U/, NEW BRUNSWICK
SAINT LOUIS UNIVERSITY
SAN DIEGO, U/
SAN DIEGO STATE UNIVERSITY
SAN FRANCISCO, U/
SAN FRANCISCO STATE
SAN JOSE STATE UNIVERSITY
SANTA CLARA UNIVERSITY
SETON HALL UNIVERSITY
SHIPPENSBURG UNIVERSITY
SLIPPERY ROCK - PENN, U/
SOUTH ALABAMA, U/
SOUTH CAROLINA, U/
SOUTH FLORIDA, U/
SOUTHEAST MISSOURI ST UNIV
SOUTHEASTERN LOUISIANA UNIVERSITY
SOUTHERN CONNECTICUT STATE
SOUTHERN ILLINOIS UNIV.
SOUTHERN METHODIST UNIV
SOUTHERN MISSISSIPPI, U/
SOUTHERN UTAH
SPELMAN COLLEGE
ST. BOVAVENTURE UNIVERSITY
ST. CLOUD STATE
ST. JOHN'S UNIVERSITY
STANFORD UNIVERSITY
SUNY AT ALBANY
SUNY BUFFALO - BUFFALO MED
SYRACUSE UNIVERSITY
TENNESSEE, U/
TENNESSEE, MARTIN U/
TENNESSEE, CHATTANOOGA U/
TENNESSEE, MEMPHIS U/
TENNESSEE STATE UNIVERSITY

<PAGE>

TENNESSEE TECH UNIVERSITY
TEXAS, U/
TEXAS ARLINGTON UNIVERSITY
TEXAS A&M UNIVERSITY
TEXAS A&M INTERNATIONAL UNIVERSITY
TEXAS CHRISTIAN UNIVERSITY
TEXAS TECH UNIVERSITY
TEXAS SOUTHERN UNIVERSITY
TOLEDO, U/
TRUMAN STATE UNIVERSITY
TULANE UNIVERSITY
TULSA, U/
UTAH STATE UNIVERSITY
UTAH, U/
VALPARAISO UNIVERSITY
VANDERBILT UNIVERSITY
VILLANOVA
VIRGINIA, U/
VIRGINIA COMMONWEALTH UNI.
VIRGINIA STATE UNIVERSITY
WAKE FOREST UNIVERSITY
WASHINGTON, U/
WASHINGTON UNIV. - ST LOUIS
WASHINGTON STATE UNIV.
WAYNE STATE UNIVERSITY
WEBER STATE UNIVERSITY
WEST FLORIDA UNIVERSITY
WEST VIRGINIA STATE
WEST VIRGINIA UNIVERSITY
WESTERN ILLINOIS UNIV.
WESTERN KENTUCKY UNIV.
WESTERN MICHIGAN
WESTERN STATE COLLEGE OF COLORADO
WESTERN WASHINGTON UNIVERSITY
WILLIAM & MARY, COLLEGE OF
WINTHROP UNIVERSITY
WISCONSIN, U/
WISCONSIN, U/ - LACROSSE
WISCONSIN, U/ - MILWAUKEE
WISCONSIN, U/ - PLATTEVILLE
WISCONSIN, U/ - RIVER FALLS
WISCONSIN, U/ - STEVENS POINT
WISCONSIN, U/ - STOUT
WISCONSIN, U/ - WHITEWATER
WOFFORD COLLEGE

<PAGE>

WRIGHT STATE UNIVERSITY
WYOMING, U/
XAVIER UNIVERSITY
YALE UNIVERSITY
YOUNGSTOWN STATE UNIV.

<PAGE>

                                 SCHEDULE 7.1(y)
                                   REAL ESTATE

OWNED REAL ESTATE

(1)      755 Lee Street
         Alexander City, AL 35010
         (Alexander City Complex)

(2)      555 S. Main Street
         Brundidge, AL
         (Brundidge Plant)

(3)      1 Retail Drive
         Montgomery, AL
         (Montgomery DC)

(4)      6175 Lynch Road
         Midland, GA
         (Columbus DC)

(5)      3145 Elmore Rd.
         Hwy 14
         Wetumpka, AL
         (Coosa River Complex)

(6)      Highway 52 South
         Mt. Airy, NC 27030

(7)      Riverside Drive
         Mt. Airy, NC
         (Cloth Plant/CC Knitting)

(8)      1493 County Road 609
         Fort Payne, AL 35967

(9)      Sandy Valley Road
         Ft. Payne, AL 35967
         (Dyeing/Finishing/Warehouse)

(10)     3562 Hwy. 280
         Alexander City, AL 35010

OWNED REAL ESTATE HELD FOR SALE

See Schedule 1.1A.

<PAGE>

LEASED REAL ESTATE FOR TERM LONGER THAN THREE YEARS

(1)      3330 Cumberland Blvd., Suite 800
         Atlanta, GA 30339

(2)      485 Seventh Avenue
         Suite 404
         New York, NY 10018
         (Execution Pending)

<PAGE>

                                 SCHEDULE 7.1(z)
                         CORPORATE AND FICTITIOUS NAMES

Jerzees Apparel, LLC did business as "Three Rivers" in Georgia during the period
      from September 2000 until approximately June 2001.

Cross Creek Apparel, Inc. merged into Cross Creek Apparel, LLC in December 2000.

Russell Corporation has been known as Russell Mills and Russell Fabrics.

<PAGE>

                                SCHEDULE 7.1(cc)
                               EMPLOYEE RELATIONS

COLLECTIVE BARGAINING AGREEMENTS

(1)      Collective Bargaining Agreement expiring December 31, 2002 relating to
         certain employees of Russell Europe Limited

(2)      Collective Bargaining Agreement expiring December 31, 2002 relating to
         certain employees of Russell Mexico, S.A. de C.V.

<PAGE>

                                SCHEDULE 7.1(dd)
                                   TRADE NAMES

                                      None.

<PAGE>

                                  SCHEDULE 10.8
                                 USE OF PROCEEDS

$25,000,000 in Term Loans and $107,258,557.70 in initial Revolving Loans will be
used for the following:

I.       PAYMENT OF A PORTION OF THE OUTSTANDING DEBT INDICATED BELOW (DOLLAR
         AMOUNTS INDICATE THE TOTAL AMOUNT OF SUCH DEBT OWING TO THE RESPECTIVE
         INSTITUTIONS IMMEDIATELY PRIOR TO THE INITIAL BORROWINGS):

<TABLE>
         <S>      <C>                                                                             <C>
         (A)      WACHOVIA REVOLVING CREDIT FACILITY

                  (1)      To Wachovia Bank, N.A. on behalf of Lenders                            $  90,049,513.91(1)
                                                                                                  ----------------

                  (2)      To Fleet for further transfer in euros to                              $   4,486,844.91(2)
                              Wachovia U.K.                                                       ----------------

         (B)      PRUDENTIAL NOTES (EXCLUSIVE OF `92 NOTES HELD BY PRUDENTIAL)

                  (1)      To Prudential                                                          $ 211,218,047.62
                                                                                                  ----------------

         (C)      SUNTRUST TERM LOAN

                  (1)      To SunTrust                                                            $  37,663,561.28
                                                                                                  ----------------

         (E)      `92 NOTES

                  (1)      To Prudential                                                          $     432,554.22
                                                                                                  ----------------

                  (2)      To Allstate                                                            $   4,327,202.10
                                                                                                  ----------------

                  (3)      To Teacher's                                                           $   2,883,142.10
                                                                                                  ----------------

                  (4)      To CIGNA                                                               $   3,171,016.70
                                                                                                  ----------------

         (F)      TRANSACTION COSTS, PREPAYMENT FEES AND OTHER EXPENSES(3)                        $     21,155,262
                                                                                                  ----------------
</TABLE>

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

(1) Does not reflect $12,734,355.89 of Letters of Credit issued by
    Wachovia but assumed under the Fleet Credit Agreement, as assumption is
    not a cash transaction.

(2) Based on 5,031,787.50 (5,000,000 + 31,787.5) euros at an exchange rate
    of $.8917/1 euro. The transfer of funds to Wachovia U.K. will be
    handled by Wachovia internally.

(3) Includes without limitation prepayment premiums and unwind fees, real
    estate title insurance, recording fees and related expenses, lenders'
    fees and legal fees and expenses.<PAGE>

                                                                     EXHIBIT 4.2

================================================================================

                              RUSSELL CORPORATION,

                   THE SUBSIDIARY GUARANTORS PARTIES HERETO,

                                      AND

                      WACHOVIA BANK, NATIONAL ASSOCIATION,
                                   AS TRUSTEE

                          9.25% Senior Notes due 2010

                              ==================

                                   INDENTURE

                           Dated as of April 18, 2002

                              ==================

================================================================================

<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                            PAGE
                                                                                                            ----
<S>                                                                                                         <C>
                                                   ARTICLE I
Definitions and Incorporation by Reference.............................................................       1

SECTION 1.1. Definitions...............................................................................       1
SECTION 1.2. Other Definitions.........................................................................       1
SECTION 1.3. Incorporation by Reference of Trust Indenture Act.........................................      33
SECTION 1.4. Rules of Construction.....................................................................      33

                                                  ARTICLE II
The Securities.........................................................................................      34

SECTION 2.1. Form, Dating and Terms....................................................................      34
SECTION 2.2. Execution and Authentication..............................................................      41
SECTION 2.3. Registrar and Paying Agent................................................................      42
SECTION 2.4. Paying Agent to Hold Money in Trust.......................................................      42
SECTION 2.5. Securityholder Lists......................................................................      42
SECTION 2.6. Transfer and Exchange.....................................................................      43
SECTION 2.7. Form of Certificate to be Delivered in Connection with Transfers to Institutional
                   Accredited Investors................................................................      46
SECTION 2.8. Form of Certificate to be Delivered in Connection with Transfers Pursuant
                   to Regulation S.....................................................................      47
SECTION 2.9. Mutilated, Destroyed, Lost or Stolen Securities...........................................      48
SECTION 2.10. Outstanding Securities...................................................................      49
SECTION 2.11. Temporary Securities.....................................................................      50
SECTION 2.12. Cancellation.............................................................................      50
SECTION 2.13. Payment of Interest; Defaulted Interest..................................................      50
SECTION 2.14. Computation of Interest..................................................................      51
SECTION 2.15. CUSIP Numbers............................................................................      51

                                                  ARTICLE III
Covenants..............................................................................................      52

SECTION 3.1. Payment of Securities.....................................................................      52
SECTION 3.2. SEC Reports...............................................................................      52
SECTION 3.3. Limitation on Indebtedness................................................................      52
SECTION 3.4. Limitation on Restricted Payments.........................................................      57
SECTION 3.5. Limitation on Liens.......................................................................      62
SECTION 3.6. Limitation on Restrictions on Distributions from Restricted Subsidiaries..................      62
SECTION 3.7. Limitation on Sales of Assets and Subsidiary Stock........................................      64
SECTION 3.8. Limitation on Affiliate Transactions......................................................      67
SECTION 3.9. Change of Control.........................................................................      67
SECTION 3.10. Limitation on Sale of Capital Stock of Restricted Subsidiaries...........................      71
</TABLE>

                                      ii

<PAGE>

<TABLE>
<S>                                                                                                          <C>
SECTION 3.11. Limitation on Sale/Leaseback Transactions................................................      71
SECTION 3.12. Future Subsidiary Guarantors.............................................................      72
SECTION 3.13. Limitation on Lines of Business..........................................................      72
SECTION 3.14. Effectiveness of Covenants...............................................................      72
SECTION 3.15. Maintenance of Office or Agency..........................................................      72
SECTION 3.16. Corporate Existence......................................................................      73
SECTION 3.17. Payment of Taxes and Other Claims........................................................      73
SECTION 3.18. Payments for Consent.....................................................................      73
SECTION 3.19. Compliance Certificate...................................................................      73
SECTION 3.20. Further Instruments and Acts.............................................................      74
SECTION 3.21. Statement by Officers as to Default......................................................      74

                                                  ARTICLE IV
Successor Company......................................................................................      74

SECTION 4.1. Merger and Consolidation..................................................................      74

                                                   ARTICLE V
Redemption of Securities...............................................................................      75

SECTION 5.1. Optional Redemption.......................................................................      75
SECTION 5.2. Applicability of Article..................................................................      75
SECTION 5.3. Election to Redeem; Notice to Trustee.....................................................      75
SECTION 5.4. Selection by Trustee of Securities to Be Redeemed.........................................      76
SECTION 5.5. Notice of Redemption......................................................................      76
SECTION 5.6. Deposit of Redemption Price...............................................................      77
SECTION 5.7. Securities Payable on Redemption Date.....................................................      77
SECTION 5.8. Securities Redeemed in Part...............................................................      78

                                                  ARTICLE VI
Defaults and Remedies..................................................................................      78

SECTION 6.1. Events of Default.........................................................................      78
SECTION 6.2. Acceleration..............................................................................      81
SECTION 6.3. Other Remedies............................................................................      81
SECTION 6.4. Waiver of Past Defaults...................................................................      82
SECTION 6.5. Control by Majority.......................................................................      82
SECTION 6.6. Limitation on Suits.......................................................................      82
SECTION 6.7. Rights of Holders to Receive Payment......................................................      82
SECTION 6.8. Collection Suit by Trustee................................................................      83
SECTION 6.9. Trustee May File Proofs of Claim..........................................................      83
SECTION 6.10. Priorities...............................................................................      83
SECTION 6.11. Undertaking for Costs....................................................................      83
SECTION 6.12. Additional Payments......................................................................      84
</TABLE>

                                      iii

<PAGE>

<TABLE>
<S>                                                                                                          <C>
                                                  ARTICLE VII
Trustee................................................................................................      84

SECTION 7.1. Duties of Trustee.........................................................................      84
SECTION 7.2. Rights of Trustee.........................................................................      85
SECTION 7.3. Individual Rights of Trustee..............................................................      86
SECTION 7.4. Trustee's Disclaimer......................................................................      86
SECTION 7.5. Notice of Defaults........................................................................      86
SECTION 7.6. Reports by Trustee to Holders.............................................................      86
SECTION 7.7. Compensation and Indemnity................................................................      86
SECTION 7.8. Replacement of Trustee....................................................................      87
SECTION 7.9. Successor Trustee by Merger...............................................................      88
SECTION 7.10. Eligibility; Disqualification............................................................      88
SECTION 7.11. Preferential Collection of Claims Against Company........................................      89

                                                 ARTICLE VIII
Discharge of Indenture; Defeasance.....................................................................      89

SECTION 8.1. Discharge of Liability on Securities; Defeasance..........................................      89
SECTION 8.2. Conditions to Defeasance..................................................................      90
SECTION 8.3. Application of Trust Money................................................................      91
SECTION 8.4. Repayment to Company......................................................................      92
SECTION 8.5. Indemnity for U.S. Government Obligations.................................................      92
SECTION 8.6. Reinstatement.............................................................................      92

                                                  ARTICLE IX
Amendments.............................................................................................      92

SECTION 9.1. Without Consent of Holders................................................................      92
SECTION 9.2. With Consent of Holders...................................................................      93
SECTION 9.3. Compliance with Trust Indenture Act.......................................................      94
SECTION 9.4. Revocation and Effect of Consents and Waivers.............................................      94
SECTION 9.5. Notation on or Exchange of Securities.....................................................      94
SECTION 9.6. Trustee To Sign Amendments................................................................      95

                                                   ARTICLE X
Subsidiary Guarantee...................................................................................      95

SECTION 10.1. Subsidiary Guarantee.....................................................................      95
SECTION 10.2. Limitation on Liability; Termination, Release and Discharge..............................      96
SECTION 10.3. Right of Contribution....................................................................      98
SECTION 10.4. No Subrogation...........................................................................      98
</TABLE>

                                      iv

<PAGE>

<TABLE>
<S>                                                                                                         <C>
                                                  ARTICLE XI
Miscellaneous.........................................................................................       98

SECTION 11.1. Trust Indenture Act Controls............................................................       98
SECTION 11.2. Notices.................................................................................       99
SECTION 11.3. Communication by Holders with other Holders.............................................       99
SECTION 11.4. Certificate and Opinion as to Conditions Precedent......................................      100
SECTION 11.5. Statements Required in Certificate or Opinion...........................................      100
SECTION 11.6. When Securities Disregarded.............................................................      100
SECTION 11.7. Rules by Trustee, Paying Agent and Registrar............................................      100
SECTION 11.8. Legal Holidays..........................................................................      101
SECTION 11.9. Governing Law...........................................................................      101
SECTION 11.10. No Recourse Against Others.............................................................      101
SECTION 11.11. Successors.............................................................................      101
SECTION 11.12. Multiple Originals.....................................................................      101
SECTION 11.13. Qualification of Indenture.............................................................      101
SECTION 11.14. Table of Contents; Headings............................................................      101

EXHIBIT A         Form of the Series A Note
EXHIBIT B         Form of the Series S Note
EXHIBIT C         Form of Subsidiary Guarantee

Schedule 1.1(a)   Assets held for sale
Schedule 3.8      Existing Affiliate Transactions
</TABLE>

                                       v

<PAGE>

                             CROSS-REFERENCE TABLE

<TABLE>
<CAPTION>
TIA                                                                                           Indenture
Section                                                                                        Section
<S>                                                                                           <C>
310(a)(1)             ......................................................................      7.10
   (a)(2)             ......................................................................      7.10
   (a)(3)             ......................................................................      N.A.
   (a)(4)             ......................................................................      N.A.
   (b)                ......................................................................      7.8; 7.10
   (c)                ......................................................................      N.A.
311(a)                ......................................................................      7.11
   (b)                ......................................................................      7.11
   (c)                ......................................................................      N.A.
312(a)                ......................................................................      2.5
   (b)                ......................................................................     13.3
   (c)                ......................................................................     13.3
313(a)                ......................................................................      7.6
   (b)(1)             ......................................................................      N.A.
   (b)(2)             ......................................................................      7.6
   (c)                ......................................................................      7.6
   (d)                ......................................................................      7.6
314(a)                ......................................................................      3.2; 3.19; 13.2
   (b)                ......................................................................      N.A.
   (c)(1)             ......................................................................     13.4
   (c)(2)             ......................................................................     13.4
   (c)(3)             ......................................................................      N.A.
   (d)                ......................................................................      N.A.
   (e)                ......................................................................     13.5
315(a)                ......................................................................      7.1
   (b)                ......................................................................      7.5; 13.2
   (c)                ......................................................................      7.1
   (d)                ......................................................................      7.1
   (e)                ......................................................................      6.11
316(a)(last sentence) ......................................................................     13.6
   (a)(1)(A)          ......................................................................      6.5
   (a)(1)(B)          ......................................................................      6.4
   (a)(2)             ......................................................................      N.A.
   (b)                ......................................................................      6.7
317(a)(1)             ......................................................................      6.8
   (a)(2)             ......................................................................      6.9
   (b)                ......................................................................      2.4
318(a)                ......................................................................     13.1
</TABLE>

         N.A. means Not Applicable.

Note: This Cross-Reference Table shall not, for any purpose, be deemed to be
part of this Indenture.

<PAGE>

         INDENTURE dated as of April 18, 2002, among RUSSELL CORPORATION, an
Alabama corporation (the "Company"), THE SUBSIDIARY GUARANTORS (as defined) and
Wachovia Bank, National Association, a national banking association (the
"Trustee") as Trustee.

         Each party agrees as follows for the benefit of the other parties and
for the equal and ratable benefit of the Holders of (i) the Company's 9.25%
Senior Notes, Series A, due 2010, issued on the date hereof (the "Initial
Securities"), (ii) if and when issued, an unlimited principal amount of
additional 9.25% Senior Notes, Series A, due 2010 in a non-registered offering
or 9.25% Senior Notes, Series S, due 2010 in a registered offering of the
Company that may be offered from time to time subsequent to the Issue Date (the
"Additional Securities") and (iii) if and when issued, the Company's 9.25%
Senior Notes, Series S, due 2010 that may be issued from time to time in
exchange for Initial Securities or any Additional Securities in an offer
registered under the Securities Act as provided in the Registration Rights
Agreement (as hereinafter defined the "Exchange Securities," and together with
the Initial Securities and Additional Securities, the "Securities").

                                   ARTICLE I

                   Definitions and Incorporation by Reference

         SECTION 1.1.      Definitions.

         "Acquired Indebtedness" means Indebtedness (i) of a Person or any of
its Subsidiaries existing at the time such Person becomes a Restricted
Subsidiary or (ii) assumed in connection with the acquisition of assets from
such Person, in each case whether or not incurred by such Person in connection
with, or in anticipation or contemplation of, such Person becoming a Restricted
Subsidiary of the Company or such acquisition. Acquired Indebtedness shall be
deemed to have been incurred, with respect to clause (i) of the preceding
sentence, on the date such Person becomes a Restricted Subsidiary and, with
respect to clause (ii) of the preceding sentence, on the date of consummation
of such acquisition of assets.

         "Additional Assets" means (1) any property or assets (other than
Indebtedness and Capital Stock) to be used by the Company or a Restricted
Subsidiary in a Related Business; (2) the Capital Stock of a Person that
becomes a Restricted Subsidiary as a result of the acquisition of such Capital
Stock by the Company or a Restricted Subsidiary of the Company; or (3) Capital
Stock constituting a minority interest in any Person that at such time is a
Restricted Subsidiary of the Company; provided, however, that, in the case of
clauses (2) and (3), such Restricted Subsidiary is primarily engaged in a
Related Business.

         "Affiliate" of any specified Person means any other Person, directly
or indirectly, controlling or controlled by or under direct or indirect common
control with such specified Person. For the purposes of this definition,
"control" when used with respect to any Person means the power to direct the
management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the terms
"controlling" and "controlled" have meanings correlative to the foregoing;
provided that

<PAGE>

                                                                              2

beneficial ownership of 10% or more of the Voting Stock of a Person shall be
deemed to be control.

         "Assets Held for Sale" means the properties and assets held for sale
by the Company on the date of this Indenture as set forth on Schedule 1.1(a)
hereto.

         "Asset Disposition" means any direct or indirect sale, lease (other
than an operating lease entered into in the ordinary course of business),
transfer, issuance or other disposition, or a series of related sales, leases,
transfers, issuances or dispositions that are part of a common plan, of shares
of Capital Stock of a Subsidiary (other than directors' qualifying shares),
property or other assets (each referred to for the purposes of this definition
as a "disposition") by the Company or any of its Restricted Subsidiaries,
including any disposition by means of a merger, consolidation or similar
transaction.

         Notwithstanding the preceding, the following items shall not be deemed
to be Asset Dispositions:

         (1)      a disposition by a Restricted Subsidiary to the Company or by
                  the Company or a Restricted Subsidiary to another Restricted
                  Subsidiary (other than a Receivables Entity);

         (2)      the sale of Cash Equivalents in the ordinary course of
                  business;

         (3)      a disposition of inventory in the ordinary course of
                  business;

         (4)      a disposition of obsolete or worn out equipment or equipment
                  that is no longer useful in the conduct of the business of
                  the Company or its Restricted Subsidiaries and that is
                  disposed of in each case in the ordinary course of business;

         (5)      transactions permitted under Sections 4.1;

         (6)      an issuance of Capital Stock by a Restricted Subsidiary of
                  the Company to the Company or to a Wholly-Owned Subsidiary
                  (other than a Receivables Entity);

         (7)      for purposes of Section 3.7 only, the making of a Permitted
                  Investment or the making of a restricted payment pursuant to
                  Section 3.4;

         (8)      sales of accounts receivable and related assets or an
                  interest therein of the type specified in the definition of
                  "Qualified Receivables Transaction" to a Receivables Entity;

         (9)      dispositions of assets in a single transaction or series of
                  related transactions with an aggregate fair market value in
                  any calendar year of less than $1.5 million (with unused
                  amounts in any calendar year being

<PAGE>

                                                                              3

                  carried over to the next succeeding calendar year subject to
                  a maximum of $2.5 million in such next succeeding fiscal
                  year);

         (10)     dispositions in connection with Permitted Liens;

         (11)     the licensing or sublicensing of intellectual property or
                  other general intangibles and licenses, leases or subleases
                  of other property in the ordinary course of business which do
                  not materially interfere with the business of the Company and
                  its Restricted Subsidiaries;

         (12)     the Excluded Sale/Leasebacks;

         (13)     dispositions of Assets Held for Sale to the extent the Net
                  Cash Proceeds of such dispositions do not in the aggregate
                  exceed $25.0 million; and

         (14)     foreclosure on assets.

         "Attributable Indebtedness" in respect of a Sale/Leaseback Transaction
means, as at the time of determination, the present value (discounted at the
interest rate implicit in such transaction determined in accordance with GAAP)
of the total obligations of the lessee for rental payments during the remaining
term of the lease included in such Sale/Leaseback Transaction (including any
period for which such lease has been extended).

         "Average Life" means, as of the date of determination, with respect to
any Indebtedness or Preferred Stock, the quotient obtained by dividing (1) the
sum of the products of the numbers of years from the date of determination to
the dates of each successive scheduled principal payment of such Indebtedness
or redemption or similar payment with respect to such Preferred Stock
multiplied by the amount of such payment by (2) the sum of all such payments.

         "Bankruptcy Law" means Title 11, United States Code or any similar
Federal or state law for the relief of debtors.

         "Board of Directors" means, as to any Person, the board of directors
of such Person or any duly authorized committee thereof.

         "Borrowing Base" means, as of the date of determination, an amount
equal to the sum, without duplication of (1) 85% of the net book value of the
Company's and its Domestic Subsidiaries' accounts receivable at such date, (2)
50% of the net book value of the Company's and its Domestic Subsidiaries'
inventories at such date and (3) $50.0 million. Net book value shall be
determined in accordance with GAAP and shall be that reflected on the most
recent available balance sheet (it being understood that the accounts
receivable and inventories of an acquired business may be included if such
acquisition has been completed on or prior to the date of determination).

         "Capital Stock" of any Person means any and all shares, interests,
rights to purchase, warrants, options, participation or other equivalents of or
interests in (however

<PAGE>

                                                                              4

designated) equity of such Person, including any Preferred Stock, but excluding
any debt securities convertible into such equity.

         "Capitalized Lease Obligations" means an obligation that is required
to be classified and accounted for as a capitalized lease for financial
reporting purposes in accordance with GAAP, and the amount of Indebtedness
represented by such obligation will be the capitalized amount of such
obligation at the time any determination thereof is to be made as determined in
accordance with GAAP, and the Stated Maturity thereof will be the date of the
last payment of rent or any other amount due under such lease prior to the
first date such lease may be terminated without penalty.

         "Cash Equivalents" means:

         (1)      securities issued or directly and fully guaranteed or insured
                  by the United States Government or any agency or
                  instrumentality of the United States (provided that the full
                  faith and credit of the United States is pledged in support
                  thereof), having maturities of not more than one year from
                  the date of acquisition;

         (2)      marketable general obligations issued by any state of the
                  United States of America or any political subdivision of any
                  such state or any public instrumentality thereof maturing
                  within one year from the date of acquisition of the United
                  States (provided that the full faith and credit of the United
                  States is pledged in support thereof) and, at the time of
                  acquisition, having a credit rating of "A" or better from
                  either Standard & Poor's Ratings Services or Moody's
                  Investors Service, Inc.;

         (3)      certificates of deposit, time deposits, eurodollar time
                  deposits, overnight bank deposits or bankers' acceptances
                  having maturities of not more than one year from the date of
                  acquisition thereof or letters of credit issued in favor of
                  the Company or one of its Restricted Subsidiaries with a
                  tenor of no longer than 90 days issued by any commercial bank
                  the long term debt of which is rated at the time of
                  acquisition thereof at least "A" or the equivalent thereof by
                  Standard & Poor's Ratings Services, or "A" or the equivalent
                  thereof by Moody's Investors Service, Inc., and having
                  combined capital and surplus in excess of $250 million;

         (4)      repurchase obligations with a term of not more than seven
                  days for underlying securities of the types described in
                  clauses (1), (2) and (3) entered into with any bank meeting
                  the qualifications specified in clause (3) above;

         (5)      commercial paper rated at the time of acquisition thereof at
                  least "A-2" or the equivalent thereof by Standard & Poor's
                  Ratings Services and "P-2" or the equivalent thereof by
                  Moody's Investors Service, Inc., or carrying an equivalent
                  rating by a nationally recognized rating agency, if both of
                  the

<PAGE>

                                                                              5

                  two named rating agencies cease publishing ratings of
                  investments, and in any case maturing within one year after
                  the date of acquisition thereof; and

         (6)      interests in any investment company or money market fund
                  which invests at least 95% in instruments of the type
                  specified in clauses (1) through (5) above.

         "Change of Control" means:

         (1)      any "person" or "group" of related persons (as such terms are
                  used in Sections 13(d) and 14(d) of the Exchange Act), other
                  than Permitted Holders, is or becomes the beneficial owner
                  (as defined in Rules 13d-3 and 13d-5 under the Exchange Act,
                  except that such person or group shall be deemed to have
                  "beneficial ownership" of all shares that any such person or
                  group has the right to acquire, whether such right is
                  exercisable immediately or only after the passage of time),
                  directly or indirectly, of more than 35% of the total voting
                  power of the Voting Stock of the Company (or its successor by
                  merger, consolidation or purchase of all or substantially all
                  of its assets) (for the purposes of this clause, such person
                  or group shall be deemed to beneficially own any Voting Stock
                  of the Company held by a parent entity, if such person or
                  group "beneficially owns" (as defined above), directly or
                  indirectly, more than 35% of the voting power of the Voting
                  Stock of such parent entity); or

         (2)      the first day on which a majority of the members of the Board
                  of Directors of the Company are not Continuing Directors; or

         (3)      the sale, lease, transfer, conveyance or other disposition
                  (other than by way of merger or consolidation), in one or a
                  series of related transactions, of all or substantially all
                  of the assets of the Company and its Restricted Subsidiaries
                  taken as a whole to any "person" (as such term is used in
                  Sections 13(d) and 14(d) of the Exchange Act), other than a
                  Permitted Holder; or

         (4)      the adoption by the stockholders of the Company of a plan or
                  proposal for the liquidation or dissolution of the Company.

         "Code" means the Internal Revenue Code of 1986, as amended.

         "Consolidated Coverage Ratio" means as of any date of determination,
with respect to any Person, the ratio of (x) the aggregate amount of
Consolidated EBITDA of such Person for the period of the most recent four
consecutive fiscal quarters ending prior to the date of such determination for
which financial statements are in existence to (y) Consolidated Interest
Expense for such four fiscal quarters, provided, however, that:

         (1)      if the Company or any Restricted Subsidiary:

<PAGE>

                                                                              6

                  (a)      has Incurred any Indebtedness since the beginning of
                           such period that remains outstanding on such date of
                           determination or if the transaction giving rise to
                           the need to calculate the Consolidated Coverage
                           Ratio is an Incurrence of Indebtedness, Consolidated
                           EBITDA and Consolidated Interest Expense for such
                           period will be calculated after giving effect on a
                           pro forma basis to such Indebtedness as if such
                           Indebtedness had been Incurred on the first day of
                           such period (except that in making such computation,
                           the amount of Indebtedness under any revolving
                           credit facility outstanding on the date of such
                           calculation will be computed based on (i) the
                           average daily balance of such Indebtedness during
                           such four fiscal quarters or such shorter period for
                           which such facility was outstanding or (ii) if such
                           facility was created after the end of such four
                           fiscal quarters, the average daily balance of such
                           Indebtedness during the period from the date of
                           creation of such facility to the date of such
                           calculation) and the discharge of any other
                           Indebtedness repaid, repurchased, defeased or
                           otherwise discharged with the proceeds of such new
                           Indebtedness as if such discharge had occurred on
                           the first day of such period; or

                  (b)      has repaid, repurchased, defeased or otherwise
                           discharged any Indebtedness since the beginning of
                           the period that is no longer outstanding on such
                           date of determination or if the transaction giving
                           rise to the need to calculate the Consolidated
                           Coverage Ratio involves a discharge of Indebtedness
                           (in each case other than Indebtedness incurred under
                           any revolving credit facility unless such
                           Indebtedness has been permanently repaid and the
                           related commitment terminated), Consolidated EBITDA
                           and Consolidated Interest Expense for such period
                           will be calculated after giving effect on a pro
                           forma basis to such discharge of such Indebtedness,
                           including with the proceeds of such new
                           Indebtedness, as if such discharge had occurred on
                           the first day of such period;

         (2)      if since the beginning of such period the Company or any
                  Restricted Subsidiary will have disposed of any company,
                  division, operating unit, segment, business, group of related
                  assets or line if business or if the transaction giving rise
                  to the need to calculate the Consolidated Coverage Ratio is
                  an Asset Disposition:

                  (a)      the Consolidated EBITDA for such period will be
                           reduced by an amount equal to the Consolidated
                           EBITDA (if positive) directly attributable to the
                           assets which are the subject of such Asset
                           Disposition for such period or increased by an
                           amount equal to the Consolidated EBITDA (if
                           negative) directly attributable thereto for such
                           period; and

<PAGE>

                                                                              7

                  (b)      Consolidated Interest Expense for such period will
                           be reduced by an amount equal to the Consolidated
                           Interest Expense directly attributable to any
                           Indebtedness of the Company or any Restricted
                           Subsidiary repaid, repurchased, defeased or
                           otherwise discharged with respect to the Company and
                           its continuing Restricted Subsidiaries in connection
                           with such Asset Disposition for such period (or, if
                           the Capital Stock of any Restricted Subsidiary is
                           sold, the Consolidated Interest Expense for such
                           period directly attributable to the Indebtedness of
                           such Restricted Subsidiary to the extent the Company
                           and its continuing Restricted Subsidiaries are no
                           longer liable for such Indebtedness after such
                           sale);

         (3)      if since the beginning of such period the Company or any
                  Restricted Subsidiary (by merger or otherwise) will have made
                  an Investment in any Restricted Subsidiary (or any Person
                  which becomes a Restricted Subsidiary or is merged with or
                  into the Company) or an acquisition of assets, including any
                  acquisition of assets occurring in connection with a
                  transaction causing a calculation to be made hereunder, which
                  constitutes all or substantially all of any company,
                  operating unit, division, segment, business, group of related
                  assets or line of business, Consolidated EBITDA and
                  Consolidated Interest Expense for such period will be
                  calculated after giving pro forma effect thereto (including
                  the Incurrence of any Indebtedness) as if such Investment or
                  acquisition occurred on the first day of such period; and

         (4)      if since the beginning of such period any Person (that
                  subsequently became a Restricted Subsidiary or was merged
                  with or into the Company or any Restricted Subsidiary since
                  the beginning of such period) will have Incurred any
                  Indebtedness or discharged any Indebtedness, made any Asset
                  Disposition or any Investment or acquisition of assets that
                  would have required an adjustment pursuant to clause (1), (2)
                  or (3) above if made by the Company or a Restricted
                  Subsidiary during such period, Consolidated EBITDA and
                  Consolidated Interest Expense for such period will be
                  calculated after giving pro forma effect thereto as if such
                  Incurrence or discharge, Asset Disposition or Investment or
                  acquisition of assets occurred on the first day of such
                  period.

         For purposes of this definition, whenever pro forma effect is to be
given to any calculation under this definition, the pro forma calculations will
be determined in good faith by a responsible financial or accounting officer of
the Company (including pro forma expense and cost reductions calculated on a
basis consistent with Regulation S-X under the Securities Act). If any
Indebtedness bears a floating rate of interest and is being given pro forma
effect, the interest expense on such Indebtedness will be calculated as if the
rate in effect on the date of determination had been the applicable rate for
the entire period (taking into account any Interest Rate Agreement applicable
to such Indebtedness if such Interest Rate Agreement has a

<PAGE>

                                                                              8

remaining term in excess of 12 months). If any Indebtedness that is being given
pro forma effect bears an interest rate at the option of the Company, the
interest rate shall be calculated by applying such optional rate chosen by the
Company.

         "Consolidated Current Liabilities" means, as of any date of
determination, the aggregate amount of liabilities of the Company and its
consolidated Restricted Subsidiaries which may properly be classified as
current liabilities (including taxes accrued as estimated), after eliminating:

         (1)      all intercompany items between the Company and any Restricted
                  Subsidiary or between Restricted Subsidiaries, and

         (2)      all current maturities of long-term Indebtedness.

         "Consolidated EBITDA" for any period means, without duplication, the
Consolidated Net Income for such period, plus the following to the extent
deducted in calculating such Consolidated Net Income:

         (1)      Consolidated Interest Expense;

         (2)      Consolidated Income Taxes;

         (3)      consolidated depreciation expense;

         (4)      consolidated amortization (including but not limited to
                  amortization of goodwill and intangibles);

         (5)      other non-cash charges reducing Consolidated Net Income
                  (excluding any such non-cash charge to the extent it
                  represents an accrual of or reserve for cash charges in any
                  future period or amortization of a prepaid cash expense that
                  was paid in a prior period not included in the calculation);
                  and

         (6)      for the relevant period of time, cash charges that reduced
                  Consolidated Net Income during the fiscal year ended December
                  29, 2001 relating to the Company's restructuring and
                  reorganization program.

Notwithstanding the preceding sentence, clauses (2) through (5) relating to
amounts of a Restricted Subsidiary of a Person will be added to Consolidated
Net Income to compute Consolidated EBITDA of such Person only to the extent
(and in the same proportion) that the net income (loss) of such Restricted
Subsidiary was included in calculating the Consolidated Net Income of such
Person and, to the extent the amounts set forth in clauses (2) through (5) are
in excess of those necessary to offset a net loss of such Restricted Subsidiary
or if such Restricted Subsidiary has net income for such period included in
Consolidated Net Income, only if a corresponding amount would be permitted at
the date of determination to be dividended to the Company by such Restricted
Subsidiary without prior approval (that has not been obtained),

<PAGE>

                                                                              9

pursuant to the terms of its charter and all agreements, instruments,
judgments, decrees, orders, statutes, rules and governmental regulations
applicable to that Restricted Subsidiary or its stockholders.

         "Consolidated Income Taxes" means, with respect to any Person for any
period, taxes imposed upon such Person or other payments required to be made by
such Person by any governmental authority which taxes or other payments are
calculated by reference to the income or profits of such Person or such Person
and its Restricted Subsidiaries (to the extent such income or profits were
included in computing Consolidated Net Income for such period), regardless of
whether such taxes or payments have been paid, estimated or accrued.

         "Consolidated Interest Expense" means, for any period, the total
interest expense of the Company and its Restricted Subsidiaries determined on a
consolidated basis, whether paid or accrued, plus, to the extent not included
in such interest expense:

         (1)      interest expense attributable to Capitalized Lease
                  Obligations and the interest portion of rent expense
                  associated with Attributable Indebtedness in respect of the
                  relevant lease giving rise thereto, determined as if such
                  lease were a capitalized lease in accordance with GAAP and
                  the interest component of any deferred payment obligations;

         (2)      amortization of debt discount and debt issuance cost;

         (3)      non-cash interest expense;

         (4)      commissions, discounts and other fees and charges owed with
                  respect to letters of credit and bankers' acceptance
                  financing;

         (5)      the interest expense actually paid with respect to a
                  Guarantee of Indebtedness of another Person or with respect
                  to Indebtedness of another Person that is secured by a Lien
                  on assets of such Person or one of its Restricted
                  Subsidiaries;

         (6)      net costs associated with Hedging Obligations (including
                  amortization of fees);

         (7)      the consolidated interest expense of such Person and its
                  Restricted Subsidiaries that was capitalized during such
                  period;

         (8)      the product of (a) all dividends paid or payable in cash,
                  Cash Equivalents or Indebtedness or accrued during such
                  period on any series of Disqualified Stock of such Person or
                  on Preferred Stock of its Restricted Subsidiaries payable to
                  a party other than the Company or a Wholly-Owned Subsidiary,
                  times (b) a fraction, the numerator of which is one and the
                  denominator of which is one minus the then current combined
                  federal, state, provincial and local statutory tax rate of
                  such Person, expressed as a

<PAGE>

                                                                             10

                  decimal, in each case, on a consolidated basis and in
                  accordance with GAAP; and

         (9)      the cash contributions to any employee stock ownership plan
                  or similar trust to the extent such contributions are used by
                  such plan or trust to pay interest to any Person (other than
                  the Company) in connection with Indebtedness Incurred by such
                  plan or trust; provided, however, that there will be excluded
                  therefrom any such interest expense of any Unrestricted
                  Subsidiary to the extent the related Indebtedness is not
                  Guaranteed or paid by the Company or any Restricted
                  Subsidiary.

For purposes of the foregoing, total interest expense will be determined after
giving effect to any net payments made or received by the Company and its
Subsidiaries with respect to Interest Rate Agreements.

         "Consolidated Net Income" means, for any period, the net income (loss)
of the Company and its Restricted Subsidiaries determined on a consolidated
basis in accordance with GAAP; provided,however, that there will not be
included in such Consolidated Net Income:

         (1)      any net income (loss) of any Person if such Person is not a
                  Restricted Subsidiary, except that:

                  (a)      subject to the limitations contained in clauses (3),
                           (4) and (5) below, the Company's equity in the net
                           income of any such Person for such period will be
                           included in such Consolidated Net Income up to the
                           aggregate amount of cash actually distributed by
                           such Person during such period to the Company or a
                           Restricted Subsidiary as a dividend or other
                           distribution (subject, in the case of a dividend or
                           other distribution to a Restricted Subsidiary, to
                           the limitations contained in clause (2) below); and

                  (b)      the Company's equity in a net loss of any such
                           Person (other than an Unrestricted Subsidiary) for
                           such period will be included in determining such
                           Consolidated Net Income to the extent such loss has
                           been funded with cash from the Company or a
                           Restricted Subsidiary;

         (2)      any net income (but not loss) of any Restricted Subsidiary if
                  such Subsidiary is subject to restrictions, directly or
                  indirectly, on the payment of dividends or the making of
                  distributions by such Restricted Subsidiary, directly or
                  indirectly, to the Company, except that:

                  (a)      subject to the limitations contained in clauses (3),
                           (4) and (5) below, the Company's equity in the net
                           income of any such Restricted Subsidiary for such
                           period will be included in such Consolidated Net
                           Income up to the aggregate amount of cash that

<PAGE>

                                                                             11

                           could have been distributed by such Restricted
                           Subsidiary during such period to the Company or
                           another Restricted Subsidiary as a dividend
                           (subject, in the case of a dividend to another
                           Restricted Subsidiary, to the limitation contained
                           in this clause); and

                  (b)      the Company's equity in a net loss of any such
                           Restricted Subsidiary for such period will be
                           included in determining such Consolidated Net
                           Income;

         (3)      any gain (loss) realized upon the sale or other disposition
                  of any property, plant or equipment of the Company or its
                  consolidated Restricted Subsidiaries (including pursuant to
                  any Sale/Leaseback Transaction) which is not sold or
                  otherwise disposed of in the ordinary course of business
                  consistent with past practice and any gain (loss) realized
                  upon the sale or other disposition of any Capital Stock of
                  any Person;

         (4)      any extraordinary gain or loss; and

         (5)      the cumulative effect of a change in accounting principles.

         "Consolidated Net Tangible Assets" means, as of any date of
determination, the sum of the amounts that would appear on a consolidated
balance sheet of the Company and its consolidated Restricted Subsidiaries as
the total assets (less accumulated depreciation, amortization, allowances for
doubtful receivables, other applicable reserves and other properly deductible
items) of the Company and its Restricted Subsidiaries, after giving effect to
purchase accounting and after deducting therefrom Consolidated Current
Liabilities and, to the extent otherwise included, the amounts of (without
duplication):

         (1)      the excess of cost over fair market value of assets or
                  businesses acquired;

         (2)      any revaluation or other write-up in book value of assets
                  subsequent to the last day of the fiscal quarter of the
                  Company immediately preceding the Issue Date as a result of a
                  change in the method of valuation in accordance with GAAP;

         (3)      unamortized debt discount and expenses and other unamortized
                  deferred charges, goodwill, patents, trademarks, service
                  marks, trade names, copyrights, licenses, organization or
                  developmental expenses and other intangible items;

         (4)      minority interests in consolidated Subsidiaries held by
                  Persons other than the Company or any Restricted Subsidiary;

         (5)      treasury stock;

<PAGE>

                                                                             12

         (6)      cash or securities set aside and held in a sinking or other
                  analogous fund established for the purpose of redemption or
                  other retirement of Capital Stock to the extent such
                  obligation is not reflected in Consolidated Current
                  Liabilities; and

         (7)      Investments in and assets of Unrestricted Subsidiaries.

         "Continuing Directors" means, as of any date of determination, any
member of the Board of Directors of the Company who: (1) was a member of such
Board of Directors on the date of this Indenture; or (2) was nominated for
election or elected to such Board of Directors with the approval of a majority
of the Continuing Directors who were members of such Board at the time of such
nomination or election.

         "Currency Agreement" means in respect of a Person any foreign exchange
contract, currency swap agreement or other similar agreement as to which such
Person is a party or a beneficiary.

         "Custodian" means any receiver, trustee, assignee, liquidator,
custodian or similar official under any Bankruptcy Law.

         "Default" means any event which is, or after notice or passage of time
or both would be, an Event of Default.

         "Definitive Securities" means certificated Securities.

         "Disqualified Stock" means, with respect to any Person, any Capital
Stock of such Person which by its terms (or by the terms of any security into
which it is convertible or for which it is exchangeable) or upon the happening
of any event:

         (1)      matures or is mandatorily redeemable pursuant to a sinking
                  fund obligation or otherwise;

         (2)      is convertible or exchangeable for Indebtedness or
                  Disqualified Stock (excluding Capital Stock which is
                  convertible or exchangeable solely at the option of the
                  Company or a Restricted Subsidiary); or

         (3)      is redeemable at the option of the holder of the Capital
                  Stock thereof, in whole or in part,

in each case on or prior to the date that is 91 days after the date (a) on
which the Securities mature or (b) on which there are no Securities
outstanding, provided that only the portion of Capital Stock which so matures
or is mandatorily redeemable, is so convertible or exchangeable or is so
redeemable at the option of the holder thereof prior to such date will be
deemed to be Disqualified Stock; provided, further, that any Capital Stock that
would constitute Disqualified Stock solely because the holders thereof have the
right to require the Company to repurchase such Capital Stock upon the
occurrence of a change of control or asset sale (each defined in a

<PAGE>

                                                                             13

substantially identical manner to the corresponding definitions in this
Indenture) shall not constitute Disqualified Stock if the terms of such Capital
Stock (and all such securities into which it is convertible or for which it is
ratable or exchangeable) provide that the Company may not repurchase or redeem
any such Capital Stock (and all such securities into which it is convertible or
for which it is ratable or exchangeable) pursuant to such provision prior to
compliance by the Company with the provisions of this Indenture described under
Section 3.9 and Section 3.7 and such repurchase or redemption complies with
Section 3.4.

         "Domestic Subsidiary" means any Restricted Subsidiary that is
organized under the laws of the United States of America or any state thereof
or the District of Columbia.

         "DTC" means The Depository Trust Company, its nominees and their
respective successors and assigns, or such other depository institution
hereinafter appointed by the Company.

         "Exchange Act" means the Securities Exchange Act of 1934, as amended.

         "Exchange Offer" shall have the meaning set forth in the Registration
Rights Agreement.

         "Excluded Sale/Leasebacks" means sale/leaseback transactions involving
the Company's distribution centers in Montgomery, Alabama and Columbus,
Georgia.

         "Equity Offering" means an offering for cash by the Company of its
common stock, or options, warrants or rights with respect to its common stock
whether made pursuant to a registration statement that has been declared
effective by the Securities and Exchange Commission (other than on Form S-4 or
S-8), or otherwise.

         "Fair Market Value" means the price that could be negotiated in an
arm's-length free market transaction, for cash, between a willing seller and a
willing buyer, neither of whom is under undue pressure or compulsion to
complete the transaction.

         "Foreign Borrowing Base" means, as of the date of determination, an
amount equal to the sum, without duplication, of (1) 75% of the net book value
of the accounts receivable of Foreign Subsidiaries of the Company at such date
and (2) 40% of the net book value of the inventories of Foreign Subsidiaries of
the Company at such date. Net book value shall be determined in accordance with
GAAP and shall be that reflected on the most recent available balance sheet (it
being understood that accounts receivable and inventories of an acquired
business may be included if such acquisition has been completed on or prior to
the date of determination).

         "Foreign Subsidiary" means any Restricted Subsidiary that is not
organized under the laws of the United States of America or any state thereof
or the District of Columbia.

         "GAAP" means generally accepted accounting principles in the United
States of America as in effect as of the date of this Indenture, including
those set forth in the opinions and pronouncements of the Accounting Principles
Board of the American Institute of Certified Public

<PAGE>

                                                                             14

Accountants and statements and pronouncements of the Financial Accounting
Standards Board or in such other statements by such other entity as approved by
a significant segment of the accounting profession. All ratios and computations
based on GAAP contained in this Indenture will be computed in conformity with
GAAP.

         "Guarantee" means any obligation, contingent or otherwise, of any
Person directly or indirectly guaranteeing any Indebtedness of any other Person
and any obligation, direct or indirect, contingent or otherwise, of such
Person:

         (1)      to purchase or pay (or advance or supply funds for the
                  purchase or payment of) such Indebtedness of such other
                  Person (whether arising by virtue of partnership
                  arrangements, or by agreement to keep-well, to purchase
                  assets, goods, securities or services, to take-or-pay, or to
                  maintain financial statement conditions or otherwise); or

         (2)      entered into for purposes of assuring in any other manner the
                  obligee of such Indebtedness of the payment thereof or to
                  protect such obligee against loss in respect thereof (in
                  whole or in part);

provided, however, that the term "Guarantee" will not include endorsements for
collection or deposit in the ordinary course of business. The term "Guarantee"
used as a verb has a corresponding meaning.

         "Guarantor Subordinated Obligation" means, with respect to a
Subsidiary Guarantor, any Indebtedness of such Subsidiary Guarantor (whether
outstanding on the Issue Date or thereafter Incurred) which is expressly
subordinate in right of payment to the obligations of such Subsidiary Guarantor
under its Subsidiary Guarantee pursuant to a written agreement.

         "Hedging Obligations" of any Person means the obligations of such
Person pursuant to any Interest Rate Agreement or Currency Agreement.

         "Incur" means issue, create, assume, Guarantee, incur or otherwise
become liable for; provided, however, that any Indebtedness or Capital Stock of
a Person existing at the time such person becomes a Restricted Subsidiary
(whether by merger, consolidation, acquisition or otherwise) will be deemed to
be incurred by such Restricted Subsidiary at the time it becomes a Restricted
Subsidiary; and the terms "Incurred" and "Incurrence" have meanings correlative
to the foregoing.

         "Indebtedness" means, with respect to any Person on any date of
determination (without duplication):

         (1)      the principal of and premium (if any) in respect of
                  indebtedness of such Person for borrowed money;

         (2)      the principal of and premium (if any) in respect of
                  obligations of such Person evidenced by bonds, debentures,
                  notes or other similar instruments;

<PAGE>

                                                                             15

         (3)      the principal component of all obligations of such Person in
                  respect of letters of credit, bankers' acceptances or other
                  similar instruments (including reimbursement obligations with
                  respect thereto except to the extent such reimbursement
                  obligation relates to a trade payable and such obligation is
                  satisfied within 30 days of Incurrence);

         (4)      the principal component of all obligations of such Person to
                  pay the deferred and unpaid purchase price of property
                  (except trade payables and other accrued liabilities incurred
                  in the ordinary course of business), which purchase price is
                  due more than six months after the date of placing such
                  property in service or taking delivery and title thereto;

         (5)      Capitalized Lease Obligations and all Attributable
                  Indebtedness of such Person;

         (6)      the principal component or liquidation preference of all
                  obligations of such Person with respect to the redemption,
                  repayment or other repurchase of any Disqualified Stock or,
                  with respect to any Subsidiary, any Preferred Stock (but
                  excluding, in each case, any accrued dividends);

         (7)      the principal component of all Indebtedness of other Persons
                  secured by a Lien on any asset of such Person, whether or not
                  such Indebtedness is assumed by such Person; provided,
                  however, that the amount of such Indebtedness will be the
                  lesser of (a) the fair market value of such asset at such
                  date of determination and (b) the amount of such Indebtedness
                  of such other Persons;

         (8)      the principal component of Indebtedness of other Persons to
                  the extent Guaranteed by such Person; and

         (9)      to the extent not otherwise included in this definition, net
                  obligations of such Person under Currency Agreements and
                  Interest Rate Agreements (the amount of any such obligations
                  to be equal at any time to the termination value of such
                  agreement or arrangement giving rise to such obligation that
                  would be payable by such Person at such time).

         The amount of Indebtedness of any Person at any date will be the
outstanding balance at such date of all unconditional obligations as described
above and the maximum liability, upon the occurrence of the contingency giving
rise to the obligation, of any contingent obligations at such date.
Notwithstanding the foregoing, money borrowed and set aside at the time of the
Incurrence of any Indebtedness in order to pre-fund the payment of interest on
such Indebtedness shall not be deemed to be "Indebtedness" provided that such
money is held to secure the payment of such interest.

<PAGE>

                                                                             16

         In addition, "Indebtedness" of any Person shall include Indebtedness
described in the preceding paragraph that would not appear as a liability on
the balance sheet of such Person if:

         (1)      such Indebtedness is the obligation of a partnership or joint
                  venture that is not a Restricted Subsidiary (a "Joint
                  Venture");

         (2)      such Person or a Restricted Subsidiary of such Person is a
                  general partner of the Joint Venture (a "General Partner");
                  and

         (3)      there is recourse, by contract or operation of law, with
                  respect to the payment of such Indebtedness to property or
                  assets of such Person or a Restricted Subsidiary of such
                  Person; and then such Indebtedness shall be included in an
                  amount not to exceed:

                  (a)      the lesser of (i) the net assets of the General
                           Partner and (ii) the amount of such obligations to
                           the extent that there is recourse, by contract or
                           operation of law, to the property or assets of such
                           Person or a Restricted Subsidiary of such Person; or

                  (b)      if less than the amount determined pursuant to
                           clause (a) immediately above, the actual amount of
                           such Indebtedness that is recourse to such Person or
                           a Restricted Subsidiary of such Person, if the
                           Indebtedness is evidenced by a writing and is for a
                           determinable amount and the related interest expense
                           shall be included in Consolidated Interest Expense
                           to the extent actually paid by the Company or its
                           Restricted Subsidiaries.

         "Indenture" means this Indenture as amended or supplemented from time
to time.

         "Initial Securities" has the meaning ascribed to it in the second
introductory paragraph of this Indenture.

         "Interest Rate Agreement" means with respect to any Person any
interest rate protection agreement, interest rate future agreement, interest
rate option agreement, interest rate swap agreement, interest rate cap
agreement, interest rate collar agreement, interest rate hedge agreement or
other similar agreement or arrangement as to which such Person is party or a
beneficiary.

         "Investment" means, with respect to any Person, all investments by
such Person in other Persons (including Affiliates) in the form of any direct
or indirect advance, loan (other than advances to customers in the ordinary
course of business) or other extension of credit (including by way of Guarantee
or similar arrangement, but excluding any debt or extension of credit
represented by a bank deposit other than a time deposit) or capital
contribution (excluding commission, travel and similar advances made in the
ordinary course of business) to (by means of any transfer of cash or other
property to others or any payment for property or services for the account or
use of others), or any purchase or acquisition of Capital Stock, Indebtedness
or other

<PAGE>

                                                                             17

similar instruments issued by, such Person and all other items that are or
would be classified as investments on a balance sheet prepared in accordance
with GAAP; provided that none of the following will be deemed to be an
Investment:

         (1)      Hedging Obligations entered into in the ordinary course of
                  business and in compliance with this Indenture;

         (2)      endorsements of negotiable instruments and documents in the
                  ordinary course of business; and

         (3)      an acquisition of assets, Capital Stock or other securities
                  by the Company or a Subsidiary for consideration to the
                  extent such consideration consists of common equity
                  securities of the Company.

         For purposes of Section 3.4:

         (1)      "Investment" will include the portion (proportionate to the
                  Company's equity interest in a Restricted Subsidiary to be
                  designated as an Unrestricted Subsidiary) of the fair market
                  value of the net assets of such Restricted Subsidiary of the
                  Company at the time that such Restricted Subsidiary is
                  designated an Unrestricted Subsidiary; provided, however,
                  that upon a redesignation of such Subsidiary as a Restricted
                  Subsidiary, the Company will be deemed to continue to have a
                  permanent "Investment" in an Unrestricted Subsidiary in an
                  amount (if positive) equal to (a) the Company's "Investment"
                  in such Subsidiary at the time of such redesignation less (b)
                  the portion (proportionate to the Company's equity interest
                  in such Subsidiary) of the fair market value of the net
                  assets (as conclusively determined by the Board of Directors
                  of the Company in good faith) of such Subsidiary at the time
                  that such Subsidiary is so re-designated a Restricted
                  Subsidiary; and

         (2)      any property transferred to or from an Unrestricted
                  Subsidiary will be valued at its fair market value at the
                  time of such transfer, in each case as determined in good
                  faith by the Board of Directors of the Company.

         "Investment Grade Status" shall occur when the Securities receive a
rating of "BBB-" or higher from S&P and a rating of "Baa3" or higher from
Moody's.

         "Issue Date" means the date on which the Initial Securities are
originally issued.

         "Joint Venture" means a partnership or joint venture that is not a
Restricted Subsidiary.

         "Lien" means any mortgage, pledge, security interest, encumbrance,
lien or charge of any kind (including any conditional sale or other title
retention agreement or lease in the nature thereof).

<PAGE>

                                                                             18

         "Moody's" shall mean Moody's Investors Service.

         "Net Available Cash" from an Asset Disposition means cash payments
received (including any cash payments received by way of deferred payment of
principal pursuant to a note or installment receivable or otherwise, but only
as and when received, but excluding any other consideration received in the
form of assumption by the acquiring Person of Indebtedness or other obligations
relating to the properties or assets that are the subject of such Asset
Disposition or received in any other noncash form) therefrom, in each case net
of:

         (1)      all legal, accounting, investment banking, title and
                  recording tax expenses, commissions and other fees and
                  expenses incurred, and all Federal, state, provincial,
                  foreign and local taxes required to be paid or accrued as a
                  liability under GAAP (after taking into account any available
                  tax credits or deductions and any tax sharing agreements), as
                  a consequence of such Asset Disposition;

         (2)      all payments made on any Indebtedness which is secured by any
                  assets subject to such Asset Disposition, in accordance with
                  the terms of any Lien upon such assets, or which must by its
                  terms, or in order to obtain a necessary consent to such
                  Asset Disposition, or by applicable law be repaid out of the
                  proceeds from such Asset Disposition;

         (3)      all distributions and other payments required to be made to
                  minority interest holders in Subsidiaries or joint ventures
                  as a result of such Asset Disposition; and

         (4)      the deduction of appropriate amounts to be provided by the
                  seller as a reserve, in accordance with GAAP, against any
                  liabilities associated with the assets disposed of in such
                  Asset Disposition and retained by the Company or any
                  Restricted Subsidiary after such Asset Disposition.

         "Net Cash Proceeds", with respect to any issuance or sale of Capital
Stock, means the cash proceeds of such issuance or sale net of attorneys' fees,
accountants' fees, underwriters' or placement agents' fees, listing fees,
discounts or commissions and brokerage, consultant and other fees and charges
actually incurred in connection with such issuance or sale and net of taxes
paid or payable as a result of such issuance or sale (after taking into account
any available tax credit or deductions and any tax sharing arrangements).

         "Non-Recourse Debt" means Indebtedness:

         (1)      as to which neither the Company nor any Restricted Subsidiary
                  (a) provides any Guarantee or credit support of any kind
                  (including any undertaking, guarantee, indemnity agreement or
                  instrument that would constitute Indebtedness) or (b) is
                  directly or indirectly liable (as a guarantor or otherwise);

<PAGE>

                                                                             19

         (2)      no default with respect to which (including any rights that
                  the holders thereof may have to take enforcement action
                  against an Unrestricted Subsidiary) would permit (upon
                  notice, lapse of time or both) any holder of any other
                  Indebtedness of the Company or any Restricted Subsidiary to
                  declare a default under such other Indebtedness or cause the
                  payment thereof to be accelerated or payable prior to its
                  stated maturity; and

         (3)      the explicit terms of which provide there is no recourse
                  against any of the assets of the Company or its Restricted
                  Subsidiaries.

         "Non-U.S. Person" means a person who is not a U.S. person, as defined
in Regulation S.

         "Note Register" means the register of Securities, maintained by the
Trustee, pursuant to Section 2.3.

         "Officer" means the Chairman of the Board, the Chief Executive
Officer, the President, the Chief Financial Officer, any Vice President, the
Treasurer or the Secretary of the Company. Officer of any Subsidiary Guarantor
has a correlative meaning.

         "Officers' Certificate" means a certificate signed by two Officers or
by an Officer and either an Assistant Treasurer or an Assistant Secretary of
the Company.

         "Opinion of Counsel" means a written opinion from legal counsel who is
reasonably acceptable to the Trustee. The counsel may be an employee of or
counsel to the Company, a Subsidiary Guarantor or the Trustee.

         "Pari Passu Indebtedness" means Indebtedness that ranks equally in
right of payment to the Securities.

         "Permitted Holders" means (i) Benjamin Russell, Helen K. Alison,
Roberta A. Baumgardner, Edith L. Russell and Nancy R. Gwaltney (or in the event
of the incompetence or death of any Permitted Holder, their respective estate,
heirs, executor, administrator, committee or other personal representative
(collectively "heirs")), (ii) any trust or foundation established for estate or
charitable planning purposes for which one or more of the individuals named in
clause (i) are either a trustee or director or a principal beneficiary or (iii)
any Person the majority of the equity interests of which is owned by one or
more of the individuals or entities named in clause (i) above.

         "Permitted Investment" means an Investment by the Company or any
Restricted Subsidiary in:

         (1)      the Company by a Restricted Subsidiary or a Restricted
                  Subsidiary (other than a Receivables Entity) or a Person
                  which will, upon the making of such Investment, become a
                  Restricted Subsidiary (other than a

<PAGE>

                                                                             20

                  Receivables Entity); provided, however, that the primary
                  business of such Restricted Subsidiary is a Related Business;

         (2)      another Person if as a result of such Investment such other
                  Person is merged or consolidated with or into, or transfers
                  or conveys all or substantially all its assets to, the
                  Company or a Restricted Subsidiary (other than a Receivables
                  Entity); provided, however, that such Person's primary
                  business is a Related Business;

         (3)      cash and Cash Equivalents;

         (4)      receivables owing to the Company or any Restricted Subsidiary
                  created or acquired in the ordinary course of business;

         (5)      payroll, travel and similar advances to cover matters that
                  are expected at the time of such advances ultimately to be
                  treated as expenses for accounting purposes and that are made
                  in the ordinary course of business;

         (6)      loans or advances to officers, directors and employees made
                  in the ordinary course of business of the Company or such
                  Restricted Subsidiary;

         (7)      stock, obligations, indebtedness or securities received in
                  settlement of debts created in the ordinary course of
                  business and owing to the Company or any Restricted
                  Subsidiary or in satisfaction of judgments or pursuant to
                  any plan of reorganization or similar arrangement upon the
                  bankruptcy or insolvency of a debtor;

         (8)      Investments made as a result of the receipt of non-cash
                  consideration from an Asset Sale that was made pursuant to
                  and in compliance with Section 3.7;

         (9)      Investments in existence on the Issue Date;

         (10)     Currency Agreements, Interest Rate Agreements and related
                  Hedging Obligations, which transactions or obligations are
                  Incurred in compliance with Section 3.3;

         (11)     Investments by the Company or any of its Restricted
                  Subsidiaries, together with all other Investments pursuant to
                  this clause (11), in an aggregate amount at the time of such
                  Investment not to exceed $25.0 million outstanding at any one
                  time;

         (12)     Deposits required by government agencies or public utilities
                  (including pertaining to taxes and other similar charges);

         (13)     Guarantees issued in accordance with Section 3.3;

<PAGE>

                                                                             21

         (14)     Investments by the Company or a Restricted Subsidiary in a
                  Receivables Entity or any Investment by a Receivables Entity
                  in any other Person, in each case, in connection with a
                  Qualified Receivables Transaction, provided, however, that
                  any Investment in any such Person is in the form of a
                  Purchase Money Note, or any equity interest or interests in
                  accounts receivable and related assets generated by the
                  Company or a Restricted Subsidiary and transferred to any
                  Person in connection with a Qualified Receivables Transaction
                  or any such Person owning such accounts receivable;

         (15)     Investments by the Company or any Restricted Subsidiary in
                  Joint Ventures the primary business of which is a Related
                  Business, together with all other Investments made pursuant
                  to this clause (15), in an aggregate amount not to exceed
                  7.5% of Consolidated Net Tangible Assets; and

         (16)     Investments in the Securities and Subsidiary Guarantees.

         "Permitted Liens" means, with respect to any Person:

         (1)      Liens securing Indebtedness and other obligations of the
                  Company and the Subsidiary Guarantors under the Senior Credit
                  Agreement and related Interest Rate Agreements and liens on
                  assets of Restricted Subsidiaries securing Guarantees of
                  Indebtedness and other obligations under the Senior Credit
                  Agreement permitted to be incurred under this Indenture in an
                  aggregate principal amount at any one time outstanding not to
                  exceed the difference between (x) the greater of (a) the
                  Borrowing Base and (b)(i) $375.0 million less (ii) the
                  aggregate principal amount of all repayments with the
                  proceeds from Asset Dispositions and (y) the principal
                  component of amounts outstanding under Qualified Receivables
                  Transactions;

         (2)      pledges or deposits by such Person under workmen's
                  compensation laws, unemployment insurance laws or similar
                  legislation, or good faith deposits in connection with bids,
                  tenders, contracts (other than for the payment of
                  Indebtedness) or leases to which such Person is a party, or
                  deposits to secure public or statutory obligations of such
                  Person or deposits or cash or United States government bonds
                  to secure surety or appeal bonds to which such Person is a
                  party, or deposits as security for contested taxes or import
                  or customs duties or for the payment of rent, in each case
                  Incurred in the ordinary course of business;

         (3)      Liens imposed by law, including carriers', warehousemen's,
                  repairman's, landlords' and mechanics' Liens, in each case
                  for sums not yet due or being contested in good faith by
                  appropriate proceedings if a reserve or

<PAGE>

                                                                             22

                  other appropriate provisions, if any, as shall be required by
                  GAAP shall have been made in respect thereof;

         (4)      Liens for taxes, assessments or other governmental charges
                  that are not yet delinquent or which are being contested in
                  good faith by appropriate proceedings provided appropriate
                  reserves required pursuant to GAAP have been made in respect
                  thereof;

         (5)      Liens in favor of issuers of surety or performance bonds or
                  letters of credit or bankers' acceptances issued pursuant to
                  the request of and for the account of such Person in the
                  ordinary course of its business; provided, however, that such
                  letters of credit do not constitute Indebtedness;

         (6)      encumbrances, easements or reservations of, or rights of
                  others for, licenses, rights of way, sewers, electric lines,
                  telegraph and telephone lines and other similar purposes, or
                  zoning or other restrictions as to the use of real properties
                  or liens incidental to the conduct of the business of such
                  Person or to the ownership of its properties which do not
                  materially adversely affect the value of said properties or
                  materially impair their use in the operation of the business
                  of such Person;

         (7)      Liens securing Hedging Obligations so long as the related
                  Indebtedness is, and is permitted to be under this Indenture,
                  secured by a Lien on the same property securing such Hedging
                  Obligation;

         (8)      leases and subleases of real property which do not materially
                  interfere with the ordinary conduct of the business of the
                  Company or any of its Restricted Subsidiaries;

         (9)      judgment Liens not giving rise to an Event of Default so long
                  as such Lien is adequately bonded and any appropriate legal
                  proceedings which may have been duly initiated for the review
                  of such judgment have not been finally terminated or the
                  period within which such proceedings may be initiated has not
                  expired;

         (10)     Liens for the purpose of securing the payment of all or a
                  part of the purchase price of, or Capitalized Lease
                  Obligations with respect to, assets or property acquired or
                  constructed in the ordinary course of business, provided
                  that:

                  (a)      the aggregate principal amount of Indebtedness
                           secured by such Liens is otherwise permitted to be
                           Incurred under this Indenture and does not exceed
                           the cost of the assets or property so acquired or
                           constructed; and

<PAGE>

                                                                             23

                  (b)      such Liens are created within 180 days of
                           construction or acquisition of such assets or
                           property and do not encumber any other assets or
                           property of the Company or any Restricted Subsidiary
                           other than such assets or property and assets
                           affixed or appurtenant thereto;

         (11)     Liens arising by virtue of any statutory or common law
                  provisions relating to banker's Liens, rights of set-off or
                  similar rights and remedies as to deposit accounts or other
                  funds maintained with a depositary institution; provided
                  that:

                  (a)      such deposit account is not a dedicated cash
                           collateral account and is not subject to
                           restrictions against access by the Company in excess
                           of those set forth by regulations promulgated by the
                           Federal Reserve Board; and

                  (b)      such deposit account is not intended by the Company
                           or any Restricted Subsidiary to provide collateral
                           to the depository institution;

         (12)     Liens arising from Uniform Commercial Code financing
                  statement filings regarding operating leases entered into by
                  the Company and its Restricted Subsidiaries in the ordinary
                  course of business;

         (13)     Liens existing on the Issue Date;

         (14)     Liens on property or shares of stock of a Person at the time
                  such Person becomes a Restricted Subsidiary; provided,
                  however, that such Liens are not created, incurred or assumed
                  in connection with, or in contemplation of, such other Person
                  becoming a Restricted Subsidiary; provided further, however,
                  that any such Lien may not extend to any other property owned
                  by the Company or any Restricted Subsidiary;

         (15)     Liens on property at the time the Company or a Restricted
                  Subsidiary acquired the property, including any acquisition
                  by means of a merger or consolidation with or into the
                  Company or any Restricted Subsidiary; provided, however, that
                  such Liens are not created, incurred or assumed in connection
                  with, or in contemplation of, such acquisition; provided
                  further, however, that such Liens may not extend to any other
                  property owned by the Company or any Restricted Subsidiary;

         (16)     Liens securing Indebtedness or other obligations of a
                  Restricted Subsidiary owing to the Company or a Wholly-Owned
                  Subsidiary (other than a Receivables Entity);

         (17)     Liens securing the Securities and Subsidiary Guarantees;

<PAGE>

                                                                             24

         (18)     Liens securing Refinancing Indebtedness incurred to refinance
                  Indebtedness that was previously so secured, provided that
                  any such Lien is limited to all or part of the same property
                  or assets (plus improvements, accessions, proceeds or
                  dividends or distributions in respect thereof) that secured
                  (or, under the written arrangements under which the original
                  Lien arose, could secure) the Indebtedness being refinanced
                  or is in respect of property that is the security for a
                  Permitted Lien hereunder;

         (19)     Liens securing Indebtedness of Foreign Subsidiaries in an
                  aggregate principal amount at any one time outstanding not to
                  exceed the greater of (x) the Foreign Borrowing Base and (y)
                  $25.0 million;

         (20)     Indebtedness Incurred in connection with the Excluded
                  Sale/Leasebacks in an aggregate principal amount at any one
                  time not to exceed $35.0 million;

         (21)     Liens on assets transferred to a Receivables Entity or on
                  assets of a Receivables Entity, in either case incurred in
                  connection with a Qualified Receivables Transaction;

         (22)     Liens incurred or assumed in connection with the issuance of
                  revenue bonds the interest on which is exempt from federal
                  income taxation pursuant to Section 103(b) of the Internal
                  Revenue Code;

         (23)     Liens on assets of the Company or any Restricted Subsidiary
                  arising as a result of a Sale/Leaseback Transaction with
                  respect to such assets; provided that the Net Available Cash
                  from such Sale/Leaseback are applied in accordance with
                  Section 3.7;

         (24)     Liens on cash deposited in a trust or escrow account to
                  defease or discharge Indebtedness (other than Subordinated
                  Obligations, Guarantor Subordinated Obligations or
                  Disqualified Stock, except to the extent the Company or a
                  Restricted Subsidiary would be permitted to repay such
                  Indebtedness under Section 3.4); and

         (25)     Liens not otherwise permitted by clauses (1) through (24)
                  above encumbering assets having an aggregate Fair Market
                  Value not in excess of 5.0% of Consolidated Net Tangible
                  Assets, as determined based on the consolidated balance sheet
                  of the Company as of the end of the most recent fiscal
                  quarter ending at least 45 days prior to the date the Lien
                  shall be Incurred.

         "Person" means any individual, corporation, partnership, joint
venture, association, joint-stock company, trust, unincorporated organization,
limited liability company, government or any agency or political subdivision
hereof or any other entity. "Preferred Stock",

<PAGE>

                                                                              25

as applied to the Capital Stock of any corporation, means Capital Stock of any
class or classes (however designated) which 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 corporation, over shares of
Capital Stock of any other class of such corporation.

         "Purchase Money Note" means a promissory note of a Receivables Entity
evidencing a line of credit, which may be irrevocable, from the Company or any
Restricted Subsidiary of the Company in connection with a Qualified Receivables
Transaction to a Receivables Entity, which note is repayable from cash
available to the Receivables Entity, other than amounts required to be
established as reserves pursuant to agreements, amounts paid to investors in
respect of interest, principal and other amounts owing to such investors and
amounts owing to such investors and amounts paid in connection with the
purchase of newly generated accounts receivable.

         "Qualified Receivables Transaction" means any transaction or series of
transactions that may be entered into by the Company or any of its Restricted
Subsidiaries pursuant to which the Company or any of its Restricted
Subsidiaries may sell, convey or otherwise transfer to (1) a Receivables Entity
(in the case of a transfer by the Company or any of its Restricted
Subsidiaries) and (2) any other Person (in the case of a transfer by a
Receivables Entity), or may grant a security interest in, any accounts
receivable (whether now existing or arising in the future) of the Company or
any of its Restricted Subsidiaries, and any assets related thereto including,
without limitation, all collateral securing such accounts receivable, all
contracts and all guarantees or other obligations in respect of such accounts
receivable, the proceeds of such receivables and other assets which are
customarily transferred, or in respect of which security interests are
customarily granted in connection with an asset securitization involving
accounts receivable.

         "Receivables Entity" means a Wholly-Owned Subsidiary of the Company
(or another Person in which the Company or any Restricted Subsidiary of the
Company makes an Investment and to which the Company or any Restricted
Subsidiary of the Company transfers accounts receivable and related assets)
which engages in no activities other than in connection with the financing of
accounts receivable and which is designated by the Board of Directors of the
Company (as provided below) as a Receivables Entity:

         (1)      no portion of the Indebtedness or any other obligations
                  (contingent or otherwise) of which:

                  (a)      is guaranteed by the Company or any Restricted
                           Subsidiary of the Company (excluding guarantees of
                           Obligations (other than the principal of, and
                           interest on, Indebtedness) pursuant to Standard
                           Securitization Undertakings);

                  (b)      is recourse to or obligates the Company or any
                           Restricted Subsidiary of the Company in any way
                           other than pursuant to Standard Securitization
                           Undertakings; or

<PAGE>

                                                                             26

                  (c)      subjects any property or asset of the Company or any
                           Restricted Subsidiary of the Company, directly or
                           indirectly, contingently or otherwise, to the
                           satisfaction thereof, other than pursuant to
                           Standard Securitization Undertakings;

         (2)      with which neither the Company nor any Restricted Subsidiary
                  of the Company has any material contract, agreement,
                  arrangement or understanding (except in connection with a
                  Purchase Money Note or Qualified Receivables Transaction)
                  other than on terms no less favorable to the Company or such
                  Restricted Subsidiary than those that might be obtained at
                  the time from Persons that are not Affiliates of the Company,
                  other than fees payable in the ordinary course of business in
                  connection with servicing accounts receivable; and

         (3)      to which neither the Company nor any Restricted Subsidiary of
                  the Company has any obligation to maintain or preserve such
                  entity's financial condition or cause such entity to achieve
                  certain levels of operating results.

         Any such designation by the Board of Directors of the Company shall be
evidenced to the Trustee by filing with the Trustee a certified copy of the
resolution of the Board of Directors of the Company giving effect to such
designation and an Officers' Certificate certifying that such designation
complied with the foregoing conditions.

         "Refinancing Indebtedness" means Indebtedness that is Incurred to
refund, refinance, replace, exchange, renew, repay or extend (including
pursuant to any defeasance or discharge mechanism) (collectively, "refinance,"
"refinances," and "refinanced" shall have a correlative meaning) any
Indebtedness existing on the date of this Indenture or Incurred in compliance
with this Indenture (including Indebtedness of the Company that refinances
Indebtedness of any Restricted Subsidiary and Indebtedness of any Restricted
Subsidiary that refinances Indebtedness of another Restricted Subsidiary)
including Indebtedness that refinances Refinancing Indebtedness, provided,
however, that:

         (1)      (a) if the Stated Maturity of the Indebtedness being
                  refinanced is earlier than the Stated Maturity of the
                  Securities, the Refinancing Indebtedness has a Stated
                  Maturity no earlier than the Stated Maturity of the
                  Indebtedness being refinanced or (b) if the Stated Maturity
                  of the Indebtedness being refinanced is later than the Stated
                  Maturity of the Securities, the Refinancing Indebtedness has
                  a Stated Maturity at least 91 days later than the Stated
                  Maturity of the Securities;

         (2)      the Refinancing Indebtedness has an Average Life at the time
                  such Refinancing Indebtedness is Incurred that is equal to or
                  greater than the Average Life of the Indebtedness being
                  refinanced;

<PAGE>

                                                                             27

         (3)      such Refinancing Indebtedness is Incurred in an aggregate
                  principal amount (or if issued with original issue discount,
                  an aggregate issue price) that is equal to or less than the
                  sum of (x) the aggregate principal amount (or if issued with
                  original issue discount, the aggregate accreted value) then
                  outstanding of Indebtedness being refinanced plus (y) without
                  duplication, any additional Indebtedness Incurred to pay
                  interest or premiums required by the instruments governing
                  such existing Indebtedness and fees, underwriting discounts,
                  commissions and other expenses incurred in connection the
                  issuance of the Refinancing Indebtedness and the repayment of
                  the Indebtedness being refinanced); and

         (4)      if the Indebtedness being refinanced is subordinated in right
                  of payment to the Securities or the Subsidiary Guarantee,
                  such Refinancing Indebtedness is subordinated in right of
                  payment to the Securities or the Subsidiary Guarantee on
                  terms at least as favorable to the Holders of Securities as
                  those contained in the documentation governing the
                  Indebtedness being extended, refinanced, renewed, replaced,
                  defeased or refunded.

         "Registration Rights Agreement" means that certain registration rights
agreement dated as of the date of this Indenture by and between the Company,
the Subsidiary Guarantors and the initial purchasers set forth therein and
future registration rights agreements with respect to Additional Securities.

         "Related Business" means any business which is the same as or related,
ancillary or complementary to any of the businesses of the Company and its
Restricted Subsidiaries that is being conducted on the date of this Indenture.

         "Representative" means any trustee, agent or representative (if any)
of an issue of Indebtedness; provided that when used in connection with the
Senior Credit Agreement, the term "Representative" shall refer to the
administrative agent under the Senior Credit Agreement.

         "Restricted Investment" means any Investment other than a Permitted
Investment.

         "Restricted Subsidiary" means any Subsidiary of the Company other than
an Unrestricted Subsidiary.

         "Russell Co-op" means Russell Co-op LLC, a limited liability company
organized under the laws of the territory of Guam.

         "S&P" shall mean Standard & Poor's Ratings Services, a division of The
McGraw-Hill Companies, Inc.

         "Sale/Leaseback Transaction" means an arrangement relating to property
now owned or hereafter acquired whereby the Company or a Restricted Subsidiary
transfers such property to a Person and the Company or a Restricted Subsidiary
leases it from such Person.

<PAGE>

                                                                             28

         "Secured Indebtedness" means Indebtedness that is secured by a lien on
the property or assets of the relevant obligor.

         "Securities Act" means the Securities Act of 1933, as amended.

         "Securities Custodian" means the custodian with respect to the Global
Security (as appointed by DTC), or any successor Person thereto and shall
initially be the Trustee.

         "Securityholder" or "Holder" means the Person in whose name a Security
is registered in the Note Register.

         "Senior Credit Agreement" means, with respect to the Company, one or
more debt facilities (including, without limitation, the Senior Secured Credit
Agreement dated on or about April 18, 2002 entered into among the Company,
Fleet Capital Corporation, as Administrative Agent, Fleet Securities, Inc. as
arranger, and the lenders parties thereto from time to time) together with the
related documents thereto (including, without limitation, any guarantee
agreements and security documents), in each case as such agreement may be
amended (including any amendment and restatement thereof), supplemented or
otherwise modified from time to time, including any agreements extending the
maturity of, refinancing, replacing (whether or not contemporaneously) or
otherwise restructuring (including increasing the amount of available
borrowings thereunder (provided that such increase in borrowings is permitted
by Section 3.3) or adding Restricted Subsidiaries of the Company as additional
borrowers or collateral guarantors thereunder) all or any portion of the
Indebtedness under such agreement or any successor or replacement agreements
and whether by the same or any other agent, lender or group of lenders or
investors and whether such refinancing or replacement is under one or more debt
facilities or commercial paper facilities, indentures or other agreements, in
each case with banks or other institutional lenders or trustees or investors
providing for revolving credit loans, term loans, notes or letters or credit,
together with related documents thereto (including, without limitation, any
guaranty agreements and security documents).

         "Significant Subsidiary" means any Restricted Subsidiary that would be
a "Significant Subsidiary" of the Company within the meaning of Rule 1-02 under
Regulation S-X promulgated by the SEC.

         "Standard Securitization Undertakings" means representations,
warranties, covenants and indemnities entered into by the Company or any
Restricted Subsidiary of the Company which are reasonably customary in
securitization of accounts receivable transactions.

         "Stated Maturity" means, with respect to any security, the date
specified in such security as the fixed date on which the payment of principal
of such security is due and payable, including pursuant to any mandatory
redemption provision, but shall not include any contingent obligations to
repay, redeem or repurchase any such principal prior to the date originally
scheduled for the payment thereof at the option of the holder or otherwise.

<PAGE>

                                                                             29

         "Subordinated Obligation" means any Indebtedness of the Company
(whether outstanding on the Issue Date or thereafter Incurred) which is
subordinate or junior in right of payment to the Securities pursuant to a
written agreement.

         "Subsidiary" of any Person means any corporation, association,
partnership, joint venture, limited liability company or other business entity
of which more than 50% of the total voting power of shares of Capital Stock or
other interests (including partnership and joint venture interests) entitled
(without regard to the occurrence of any contingency) to vote in the election
of directors, managers or trustees thereof is at the time owned or controlled,
directly or indirectly, by (1) such Person, (2) such Person and one or more
Subsidiaries of such Person or (3) one or more Subsidiaries of such Person.
Unless otherwise specified herein, each reference to a Subsidiary will refer to
a Subsidiary of the Company.

         "Subsidiary Guarantee" means, individually, any Guarantee of payment
of the Securities by a Subsidiary Guarantor pursuant to the terms of this
Indenture and any supplemental indenture hereto, and, collectively, all such
Guarantees. Each such Subsidiary Guarantee will be in the form prescribed by
this Indenture.

         "Subsidiary Guarantor" means each Restricted Subsidiary of the Company
that has issued a Subsidiary Guarantee.

         "TIA" or "Trust Indenture Act" means the Trust Indenture Act of 1939
(15 U.S.C. ss.ss. 77aaa-77bbbb), as in effect on the date of this Indenture.

         "Trustee" means the party named as such in this Indenture until a
successor replaces it and, thereafter, means the successor.

         "Trust Officer" shall mean, when used with respect to the Trustee, any
officer within the corporate trust department of the Trustee, including any
vice president, assistant vice president, assistant secretary, assistant
treasurer, trust officer or any other officer of the Trustee who customarily
performs functions similar to those performed by the Persons who at the time
shall be such officers, respectively, or to whom any corporate trust matter is
referred because of such person's knowledge of and familiarity with the
particular subject and who shall have direct responsibility for the
administration of this Indenture.

         "Unrestricted Subsidiary" means:

         (1)      any Subsidiary of the Company that at the time of
                  determination shall be designated an Unrestricted Subsidiary
                  by the Board of Directors of the Company in the manner
                  provided below; and

         (2)      any Subsidiary of an Unrestricted Subsidiary.

         The Board of Directors of the Company may designate any Subsidiary of
the Company (including any newly acquired or newly formed Subsidiary or a
Person becoming a Subsidiary through merger or consolidation or Investment
therein) to be an Unrestricted Subsidiary only if:

<PAGE>

                                                                             30

         (1)      such Subsidiary or any of its Subsidiaries does not own any
                  Capital Stock or Indebtedness of or have any Investment in,
                  or own or hold any Lien on any property of, any other
                  Subsidiary of the Company which is not a Subsidiary of the
                  Subsidiary to be so designated or otherwise an Unrestricted
                  Subsidiary;

         (2)      all the Indebtedness of such Subsidiary and its Subsidiaries
                  shall, at the date of designation, consist of Non-Recourse
                  Debt;

         (3)      such designation and the Investment of the Company in such
                  Subsidiary complies with Section 3.4;

         (4)      such Subsidiary, either alone or in the aggregate with all
                  other Unrestricted Subsidiaries, does not operate, directly
                  or indirectly, all or substantially all of the business of
                  the Company and its Subsidiaries;

         (5)      such Subsidiary is a Person with respect to which neither the
                  Company nor any of its Restricted Subsidiaries has any direct
                  or indirect obligation: (a) to subscribe for additional
                  Capital Stock of such Person; or (b) to maintain or preserve
                  such Person's financial condition or to cause such Person to
                  achieve any specified levels of operating results; and

         (6)      on the date such Subsidiary is designated an Unrestricted
                  Subsidiary, such Subsidiary is not a party to any agreement,
                  contract, arrangement or understanding with the Company or
                  any Restricted Subsidiary with terms substantially less
                  favorable to the Company, than those that might have been
                  obtained from Persons who are not Affiliates of the Company.

         Any such designation by the Board of Directors of the Company shall be
evidenced to the Trustee by filing with the Trustee a resolution of the Board
of Directors of the Company giving effect to such designation and an Officers'
Certificate certifying that such designation complies with the foregoing
conditions. If, at any time, any Unrestricted Subsidiary would fail to meet the
foregoing requirements as an Unrestricted Subsidiary, it shall thereafter cease
to be an Unrestricted Subsidiary for purposes of this Indenture and any
Indebtedness of such Subsidiary shall be deemed to be Incurred as of such date.

         The Board of Directors of the Company may designate any Unrestricted
Subsidiary to be a Restricted Subsidiary; provided that immediately after
giving effect to such designation, no Default or Event of Default shall have
occurred and be continuing or would occur as a consequence thereof and the
Company could incur at least $1.00 of additional Indebtedness under the first
paragraph of Section 3.3 on a pro forma basis taking into account such
designation.

<PAGE>

                                                                             31

         "Voting Stock" of a corporation means all classes of Capital Stock of
such corporation then outstanding and normally entitled to vote (without regard
to any contingency) in the election of directors.

         "Wholly-Owned Subsidiary" means a Restricted Subsidiary of the
Company, all of the Capital Stock of which (other than directors' qualifying
shares) is owned by the Company or another Wholly-Owned Subsidiary.

         SECTION 1.2.      Other Definitions.

<TABLE>
<CAPTION>
                                                                               Defined in
Term                                                                            Section
----                                                                           ----------
<S>                                                                            <C>
"Additional Restricted Securities" ................................               2.1(b)

"Affiliate Transaction"............................................               3.8

"Agent Member".....................................................               2.1(e)

"Asset Disposition Offer"..........................................               3.7(b)

"Asset Disposition Offer Amount"...................................               3.7(c)(1)

"Asset Disposition Offer Period"...................................               3.7(c)(1)

"Asset Disposition Purchase Date"..................................               3.7(c)(1)

"Authenticating Agent".............................................               2.2

"Change of Control Offer"..........................................               3.9

"Change of Control Payment"........................................               3.9

"Change of Control Payment Date"...................................               3.9

"Company Order"....................................................               2.2

"Corporate Trust Office"...........................................               3.15

"covenant defeasance option".......................................               8.1(b)

"cross acceleration provision".....................................               6.1(6)(b)

"Defaulted Interest"...............................................               2.13

"Event of Default".................................................               6.1
</TABLE>

<PAGE>

                                                                             32

<TABLE>
<S>                                                                             <C>
"Excess Proceeds"..................................................               3.7(b)

"Exchange Global Note".............................................               2.1(b)

"Global Securities"................................................               2.1(b)

"IAI"..............................................................               2.1(b)

"Institutional Accredited Investor Note"...........................               2.1(b)

"Institutional Accredited Investor Global Note"....................               2.1(b)

"judgment default provision".......................................               6.1(8)

"legal defeasance option"..........................................               8.1(b)

"Obligations".....................................................               10.1

"Pari Passu Notes"................................................                3.7(b)

"payment default" ................................................                6.1(6)

"Paying Agent"....................................................                2.3

"Private Placement Legend"........................................                2.1(d)

"QIB".............................................................                2.1(b)

"Registrar".......................................................                2.3

"Regulation S"....................................................                2.1(b)

"Regulation S Global Note"........................................                2.1(b)

"Regulation S Legend".............................................                2.1(d)

"Regulation S Note"...............................................                2.1(b)

"Resale Restriction Termination Date".............................                2.6(a)

"Restricted Payment"..............................................                3.4

"Rule 144A".......................................................                2.1(b)

"Rule 144A Global Note"...........................................                2.1(b)

"Rule 144A Note"..................................................                2.1(b)

"Special Interest Payment Date"...................................                2.13(a)
</TABLE>

<PAGE>

                                                                             33

<TABLE>
<S>                                                                              <C>
"Special Record Date".............................................               2.13(a)
"Successor Company"...............................................               4.1
</TABLE>

         SECTION 1.3.      Incorporation by Reference of Trust Indenture Act.
This Indenture is subject to the mandatory provisions of the TIA which are
incorporated by reference in and made a part of this Indenture. The following
TIA terms have the following meanings:

         "Commission" means the Securities and Exchange Commission.

         "indenture securities" means the Securities.

         "indenture security holder" means a Securityholder.

         "indenture to be qualified" means this Indenture.

         "indenture trustee" or "institutional trustee" means the Trustee.

         "obligor" on this Indenture securities means the Company and any other
obligor on this Indenture securities.

         All other TIA terms used in this Indenture that are defined by the
TIA, defined in the TIA by reference to another statute or defined by SEC rule
have the meanings assigned to them by such definitions.

         SECTION 1.10.     Rules of Construction.  Unless the context otherwise
requires:

         (1)      a term has the meaning assigned to it;

         (2)      an accounting term not otherwise defined has the meaning
assigned to it in accordance with GAAP;

         (3)      "or" is not exclusive;

         (4)      "including" means including without limitation;

         (5)      words in the singular include the plural and words in the
plural include the singular;

         (6)      unsecured Indebtedness shall not be deemed to be subordinate
or junior to Secured Indebtedness merely by virtue of its nature as unsecured
Indebtedness;

         (7)      the principal amount of any noninterest bearing or other
discount security at any date shall be the principal amount thereof that would
be shown on a balance sheet of the issuer dated such date prepared in
accordance with GAAP; and

         (8)      the principal amount of any Preferred Stock shall be (i) the
maximum liquidation value of such Preferred Stock or (ii) the maximum mandatory
redemption or mandatory repurchase price with respect to such Preferred Stock,
whichever is greater.

<PAGE>

                                                                             34

                                  ARTICLE II

                                 The Securities

         SECTION 2.1.      Form, Dating and Terms.

         (a) The aggregate principal amount of Securities that may be
authenticated and delivered under this Indenture is unlimited. The Initial
Securities issued on the date hereof will be in an aggregate principal amount
of $250,000,000. In addition, the Company may issue, from time to time in
accordance with the provisions of this Indenture, including, without
limitation, Section 3.3 hereof, Additional Securities and Exchange Securities.
Furthermore, Securities may be authenticated and delivered upon registration or
transfer, or in lieu of, other Securities pursuant to Section 2.6, 2.9, 2.11 or
9.5 or in connection with an Asset Disposition Offer pursuant to Section 3.7 or
a Change of Control Offer pursuant to Section 3.9.

         The Initial Securities shall be known and designated as "9.25% Senior
Notes, Series A, due 2010" of the Company. Additional Securities issued as
Restricted Securities shall be known and designated as "9.25% Senior Notes,
Series A, due 2010" of the Company. Additional Securities issued other than as
Restricted Securities shall be known and designated as "9.25% Senior Notes,
Series S, due 2010" of the Company, and Exchange Securities shall be known and
designated as "9.25% Senior Notes, Series S, due 2010" of the Company.

         With respect to any Additional Securities, the Company shall set forth
in a Board Resolution and an Officer's Certificate, the following information:

         (1)      the aggregate principal amount of such Additional Securities
to be authenticated and delivered pursuant to this Indenture;

         (2)      the issue price and the issue date of such Additional
Securities, including the date from which interest shall accrue; and

         (3)      whether such Additional Securities shall be Restricted
Securities issued in the form of Exhibit A hereto and/or shall be issued in the
form of Exhibit B hereto.

         The Initial Securities, the Additional Securities and the Exchange
Securities shall be considered collectively as a single class for all purposes
of this Indenture. Holders of the Initial Securities, the Additional Securities
and the Exchange Securities will vote and consent together on all matters to
which such Holders are entitled to vote or consent as one class, and none of
the Holders of the Initial Securities, the Additional Securities or the
Exchange Securities shall have the right to vote or consent as a separate class
on any matter to which such Holders are entitled to vote or consent.

         (b) The Initial Securities are being offered and sold by the Company
pursuant to a Purchase Agreement, dated April 11, 2002, among the Company, the
Subsidiary Guarantors, J.P. Morgan Securities Inc. and the other initial
purchasers named therein. The Initial Securities and any Additional Securities
(if issued as Restricted Securities) (the "Additional Restricted Securities")
will be resold initially only to (A) qualified institutional buyers (as defined
in Rule 144A under the Securities Act ("Rule 144A")) in reliance on Rule 144A
("QIBs") and (B)

<PAGE>

                                                                             35

Persons other than U.S. Persons (as defined in Regulation S under the
Securities Act ("Regulation S")) in reliance on Regulation S. Such Initial
Securities and Additional Restricted Securities may thereafter be transferred
to, among others, QIBs, purchasers in reliance on Regulation S and
institutional "accredited investors" (as defined in Rules 501(a)(1), (2), (3)
and (7) under the Securities Act) who are not QIBs ("IAIs") in accordance with
Rule 501 of the Securities Act in accordance with the procedure described
herein.

         Initial Securities and Additional Restricted Securities offered and
sold to qualified institutional buyers in the United States of America in
reliance on Rule 144A (the "Rule 144A Notes") shall be issued in the form of a
permanent global Security, without interest coupons, substantially in the form
of Exhibit A, which is hereby incorporated by reference and made a part of this
Indenture, including appropriate legends as set forth in Section 2.1(d) (the
"Rule 144A Global Note"), deposited with the Trustee, as custodian for DTC,
duly executed by the Company and authenticated by the Trustee as hereinafter
provided. The Rule 144A Global Note may be represented by more than one
certificate, if so required by DTC's rules regarding the maximum principal
amount to be represented by a single certificate. The aggregate principal
amount of the Rule 144A Global Note may from time to time be increased or
decreased by adjustments made on the records of the Trustee, as custodian for
DTC or its nominee, as hereinafter provided.

         Initial Securities and Additional Securities offered and sold outside
the United States of America (the "Regulation S Notes") in reliance on
Regulation S shall be issued in the form of a permanent global Security,
without interest coupons, substantially in the form of Exhibit A (the
"Regulation S Global Note") deposited with the Trustee, as custodian for DTC,
duly executed by the Company and authenticated by the Trustee as hereinafter
provided. The Regulation S Global Note may be represented by more than one
certificate, if so required by DTC's rules regarding the maximum principal
amount to be represented by a single certificate. The aggregate principal
amount of the Regulation S Global Note may from time to time be increased or
decreased by adjustments made on the records of the Trustee, as custodian for
DTC or its nominee, as hereinafter provided.

         Initial Securities and Additional Securities resold to IAIs (the
"Institutional Accredited Investor Notes") in the United States of America
shall be issued in the form of a permanent global Security, without interest
coupons, substantially in the form of Exhibit A (the "Institutional Accredited
Investor Global Note") deposited with the Trustee, as custodian for DTC, duly
executed by the Company and authenticated by the Trustee as hereinafter
provided. The Institutional Accredited Investor Global Note may be represented
by more than one certificate, if so required by DTC's rules regarding the
maximum principal amount to be represented by a single certificate. The
aggregate principal amount of the Institutional Accredited Investor Global Note
may from time to time be increased or decreased by adjustments made on the
records of the Trustee, as custodian for DTC or its nominee, as hereinafter
provided.

         Exchange Securities exchanged for interests in the Rule 144A Notes,
the Regulation S Notes and the Institutional Accredited Investor Notes will
be issued in the form of a permanent global Security, without interest coupons,
substantially in the form of Exhibit B, which is hereby incorporated by
reference and made a part of this Indenture, deposited with the Trustee as
hereinafter provided, including the appropriate legend set forth in
Section 2.1(d) (the

<PAGE>

                                                                             36

"Exchange Global Note"). The Exchange Global Note may be represented by more
than one certificate, if so required by DTC's rules regarding the maximum
principal amount to be represented by a single certificate.

         The Rule 144A Global Note, the Regulation S Global Note, the
Institutional Accredited Investor Global Note and the Exchange Global Note are
sometimes collectively herein referred to as the "Global Securities."

         The principal of (and premium, if any) and interest on the Securities
shall be payable at the office or agency of the Company maintained for such
purpose in The City of New York, or at such other office or agency of the
Company as may be maintained for such purpose pursuant to Section 2.3;
provided, however, that, at the option of the Company, each installment of
interest may be paid by (i) check mailed to addresses of the Persons entitled
thereto as such addresses shall appear on the Note Register or (ii) wire
transfer to an account located in the United States maintained by the payee.
Payments in respect of Securities represented by a Global Security (including
principal, premium and interest) will be made by wire transfer of immediately
available funds to the accounts specified by DTC.

         The Securities may have notations, legends or endorsements required by
law, stock exchange rule or usage, in addition to those set forth on Exhibit A
and Exhibit B and in Section 2.1(d). The Company and the Trustee shall approve
the forms of the Securities and any notation, endorsement or legend on them.
Each Security shall be dated the date of its authentication. The terms of the
Securities set forth in Exhibit A and Exhibit B are part of the terms of this
Indenture and, to the extent applicable, the Company and the Trustee, by their
execution and delivery of this Indenture, expressly agree to be bound by such
terms.

         (c) Denominations. The Securities shall be issuable only in fully
registered form, without coupons, and only in denominations of $1,000 and any
integral multiple thereof.

         (d) Restrictive Legends. Unless and until (i) an Initial Security is
sold under an effective registration statement or (ii) an Initial Security is
exchanged for an Exchange Security in connection with an effective registration
statement, in each case pursuant to the Registration Rights Agreement or a
similar agreement,

         (A) the Rule 144A Global Note and the Institutional Accredited
Investor Global Note shall bear the following legend (the "Private Placement
Legend") on the face thereof:

         "THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
         1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY
         STATE OR OTHER JURISDICTION. NEITHER THIS SECURITY NOR ANY INTEREST OR
         PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED,
         PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH
         REGISTRATION UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT
         TO, SUCH REGISTRATION.

         THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES ON ITS
         OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR

<PAGE>

                                                                             37

         WHICH IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE
         TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE "RESALE RESTRICTION
         TERMINATION DATE") THAT IS TWO YEARS AFTER THE LATER OF THE ORIGINAL
         ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE ISSUER OR ANY
         AFFILIATE OF THE ISSUER WAS THE OWNER OF THIS SECURITY (OR ANY
         PREDECESSOR OF SUCH SECURITY), ONLY (A) TO THE ISSUER, (B) PURSUANT TO
         A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE
         SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR
         RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, TO A PERSON IT
         REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN
         RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT
         OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE
         IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D)
         PURSUANT TO OFFERS AND SALES THAT OCCUR OUTSIDE THE UNITED STATES
         WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT, (E) TO AN
         INSTITUTIONAL ACCREDITED INVESTOR WITHIN THE MEANING OF RULE
         501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT THAT IS AN
         INSTITUTIONAL ACCREDITED INVESTOR ACQUIRING THE SECURITY FOR ITS OWN
         ACCOUNT OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED
         INVESTOR, IN EACH CASE IN A MINIMUM PRINCIPAL AMOUNT OF THE SECURITIES
         OF $250,000, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO OR FOR
         OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION IN VIOLATION OF THE
         SECURITIES ACT, OR (F) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM
         THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE
         ISSUER'S AND THE TRUSTEE'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR
         TRANSFER PURSUANT TO CLAUSES (D), (E) AND (F) TO REQUIRE THE DELIVERY
         OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION
         SATISFACTORY TO EACH OF THEM. THIS LEGEND WILL BE REMOVED UPON THE
         REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.

         BY ITS ACQUISITION OF THIS SECURITY THE HOLDER THEREOF WILL BE DEEMED
         TO HAVE REPRESENTED AND WARRANTED THAT EITHER (I) NO PORTION OF THE
         ASSETS USED BY SUCH HOLDER TO ACQUIRE AND HOLD THIS SECURITY
         CONSTITUTES THE ASSETS OF AN EMPLOYEE BENEFIT PLAN THAT IS SUBJECT TO
         TITLE I OF THE U.S. EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974,
         AS AMENDED ("ERISA"), OF PLANS, INDIVIDUAL RETIREMENT ACCOUNTS OR
         OTHER ARRANGEMENTS THAT ARE SUBJECT TO SECTION 4975 OF THE U.S.
         INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") OR PROVISIONS
         UNDER ANY FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER LAWS OR
         REGULATIONS THAT ARE SIMILAR TO SUCH PROVISIONS OF ERISA OR THE CODE
         ("SIMILAR LAWS"), OR OF AN ENTITY WHOSE UNDERLYING ASSETS ARE
         CONSIDERED TO INCLUDE "PLAN ASSETS" OF SUCH PLANS, ACCOUNTS OR
         ARRANGEMENTS, OR (II) THE PURCHASE AND HOLDING OF THIS SECURITY

<PAGE>

                                                                             38

         WILL NOT CONSTITUTE A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION
         406 OF ERISA OR SECTION 4975 OF THE CODE OR A SIMILAR VIOLATION UNDER
         ANY APPLICABLE SIMILAR LAWS."

         (B) the Regulation S Global Note shall bear the following legend (the
"Regulation S Legend") on the face thereof:

         "THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT
         OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT
         BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO OR FOR THE ACCOUNT
         OR BENEFIT OF, U.S. PERSONS EXCEPT AS SET FORTH IN THE FOLLOWING
         SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT IT
         IS NOT A U.S. PERSON NOR IS IT PURCHASING FOR THE ACCOUNT OF A U.S.
         PERSON AND IS ACQUIRING THIS SECURITY IN AN OFFSHORE TRANSACTION IN
         ACCORDANCE WITH REGULATION S UNDER THE SECURITIES ACT ("REGULATION
         S"), (2) BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE
         TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE "RESALE RESTRICTION
         TERMINATION DATE") THAT IS TWO YEARS AFTER THE LATER OF THE ORIGINAL
         ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE ISSUER OR ANY
         AFFILIATE OF THE ISSUER WAS THE OWNER OF THIS SECURITY (OR ANY
         PREDECESSOR OF SUCH SECURITY), ONLY (A) TO THE COMPANY, (B) PURSUANT
         TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE
         SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR
         RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, TO A PERSON IT
         REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN
         RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT
         OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE
         IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D)
         PURSUANT TO OFFERS AND SALES THAT OCCUR OUTSIDE THE UNITED STATES
         WITHIN THE MEANING OF REGULATION S, (E) TO AN INSTITUTIONAL ACCREDITED
         INVESTOR WITHIN THE MEANING OF RULE 501(a)(1), (2), (3) OR (7) UNDER
         THE SECURITIES ACT THAT IS AN INSTITUTIONAL ACCREDITED INVESTOR
         ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH
         AN INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN A MINIMUM
         PRINCIPAL AMOUNT OF THE SECURITIES OF $250,000, FOR INVESTMENT
         PURPOSES AND NOT WITH A VIEW TO OR FOR OFFER OR SALE IN CONNECTION
         WITH ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, OR (F)
         PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
         REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE ISSUER'S AND THE
         TRUSTEE'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO
         CLAUSES (D), (E) OR (F) TO REQUIRE THE DELIVERY OF AN OPINION OF
         COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH
         OF THEM AND IN THE CASE OF

<PAGE>

                                                                             39

         THE FOREGOING CLAUSE (E), A CERTIFICATE OF TRANSFER IN THE FORM
         APPEARING ON THE OTHER SIDE OF THIS SECURITY IS COMPLETED AND
         DELIVERED BY THE TRANSFEROR TO THE COMPANY AND THE TRUSTEE. THIS
         LEGEND WILL BE REMOVED AFTER 40 CONSECUTIVE DAYS BEGINNING ON AND
         INCLUDING THE LATER OF (A) THE DAY ON WHICH THE SECURITIES ARE OFFERED
         TO PERSONS OTHER THAN DISTRIBUTORS (AS DEFINED IN REGULATION S) AND
         (B) THE DATE OF THE CLOSING OF THE ORIGINAL OFFERING. AS USED HEREIN,
         THE TERMS "OFFSHORE TRANSACTION," "UNITED STATES" AND "U.S. PERSON"
         HAVE THE MEANINGS GIVEN TO THEM BY REGULATION S UNDER THE SECURITIES
         ACT."

         (C) The Global Securities, whether or not an Initial Security, shall
bear the following legend on the face thereof:

         "UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
         OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), NEW
         YORK, NEW YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF
         TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
         REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
         REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS
         MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
         AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE
         HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH
         AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

         TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN
         WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF
         OR SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL
         SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE
         RESTRICTIONS SET FORTH IN THIS INDENTURE REFERRED TO ON THE REVERSE
         HEREOF."

                  (e) Book-Entry Provisions

                  (i) This Section 2.1(e) shall apply only to Global Securities
deposited with the Trustee, as custodian for DTC.

                  (ii) Each Global Security initially shall (x) be registered
in the name of DTC for such Global Security or the nominee of DTC, (y) be
delivered to the Trustee as custodian for DTC and (z) bear legends as set forth
in Section 2.1(d).

                  (iii) Members of, or participants in, DTC ("Agent Members")
shall have no rights under this Indenture with respect to any Global Security
held on their behalf by DTC or by the Trustee as the custodian of DTC or under
such Global Security, and DTC may be treated by

<PAGE>

                                                                             40

the Company, the Trustee and any agent of the Company or the Trustee as the
absolute owner of such Global Security for all purposes whatsoever.
Notwithstanding the foregoing, nothing herein shall prevent the Company, the
Trustee or any agent of the Company or the Trustee from giving effect to any
written certification, proxy or other authorization furnished by DTC or impair,
as between DTC and its Agent Members, the operation of customary practices of
DTC governing the exercise of the rights of a Holder of a beneficial interest
in any Global Security.

                  (iv) In connection with any transfer of a portion of the
beneficial interest in a Global Security pursuant to subsection (f) of this
Section 2.1 to beneficial owners who are required to hold Definitive
Securities, the Securities Custodian shall reflect on its books and records the
date and a decrease in the principal amount of such Global Security in an
amount equal to the principal amount of the beneficial interest in the Global
Security to be transferred, and the Company shall execute, and the Trustee
shall authenticate and deliver, one or more Definitive Securities of like tenor
and amount.

                  (v) In connection with the transfer of an entire Global
Security to beneficial owners pursuant to subsection (f) of this Section 2.1,
such Global Security shall be deemed to be surrendered to the Trustee for
cancellation, and the Company shall execute, and the Trustee shall authenticate
and deliver, to each beneficial owner identified by DTC in exchange for its
beneficial interest in such Global Security, an equal aggregate principal
amount of Definitive Securities of authorized denominations.

                  (vi) The registered Holder of a Global Security may grant
proxies and otherwise authorize any person, including Agent Members and persons
that may hold interests through Agent Members, to take any action which a
Holder is entitled to take under this Indenture or the Securities.

                  (f) Definitive Securities. (i) Except as provided below,
owners of beneficial interests in Global Securities will not be entitled to
receive Definitive Securities. If required to do so pursuant to any applicable
law or regulation, beneficial owners may obtain Definitive Securities in
exchange for their beneficial interests in a Global Security upon written
request in accordance with DTC's and the Registrar's procedures. In addition,
Definitive Securities shall be transferred to all beneficial owners in exchange
for their beneficial interests in a Global Security if (a) DTC notifies the
Company that it is unwilling or unable to continue as depositary for such
Global Security or DTC ceases to be a clearing agency registered under the
Exchange Act, at a time when DTC is required to be so registered in order to
act as depositary, and in each case a successor depositary is not appointed by
the Company within 90 days of such notice or, (b) the Company executes and
delivers to the Trustee and Registrar an Officers' Certificate stating that
such Global Security shall be so exchangeable or (c) an Event of Default has
occurred and is continuing and the Registrar has received a request from DTC.

                  (ii) Any Definitive Security delivered in exchange for an
interest in a Global Security pursuant to Section 2.1(e)(iv) or (v) shall,
except as otherwise provided by Section 2.6(c), bear the applicable legend
regarding transfer restrictions applicable to the Definitive Security set forth
in Section 2.1(d).

<PAGE>

                                                                             41

                  (iii) In connection with the exchange of a portion of a
Definitive Security for a beneficial interest in a Global Security, the Trustee
shall cancel such Definitive Security, and the Company shall execute, and the
Trustee shall authenticate and deliver, to the transferring Holder a new
Definitive Security representing the principal amount not so transferred.

         SECTION 2.2.      Execution and Authentication. One Officer shall sign
the Securities for the Company by manual or facsimile signature. If an Officer
whose signature is on a Security no longer holds that office at the time the
Trustee authenticates the Security, the Security shall be valid nevertheless,
after giving effect to any exchange of Initial Securities for Exchange
Securities.

         A Security shall not be valid until an authorized signatory of the
Trustee manually authenticates the Security. The signature of the Trustee on a
Security shall be conclusive evidence that such Security has been duly and
validly authenticated and issued under this Indenture. A Security shall be
dated the date of its authentication.

         At any time and from time to time after the execution and delivery of
this Indenture, the Trustee shall authenticate and make available for delivery:
(1) Initial Securities for original issue on the Issue Date in an aggregate
principal amount of $250,000,000, (2) Additional Securities for original issue
and (3) Exchange Securities for issue only in an Exchange Offer pursuant to the
Registration Rights Agreement, and only in exchange for Initial Securities or
Additional Securities of an equal principal amount, in each case upon a written
order of the Company signed by two Officers or by an Officer and either an
Assistant Treasurer or an Assistant Secretary of the Company (the "Company
Order"). Such Company Order shall specify the amount of the Securities to be
authenticated and the date on which the original issue of Securities is to be
authenticated and whether the Securities are to be Initial Securities,
Additional Securities or Exchange Securities.

         The Trustee may appoint an agent (the "Authenticating Agent")
reasonably acceptable to the Company to authenticate the Securities. Unless
limited by the terms of such appointment, any such Authenticating Agent may
authenticate Securities whenever the Trustee may do so. Each reference in this
Indenture to authentication by the Trustee includes authentication by the
Authenticating Agent.

         In case the Company or any Subsidiary Guarantor, pursuant to Article
IV or Section 10.2, shall be consolidated or merged with or into any other
Person or shall convey, transfer, lease or otherwise dispose of its properties
and assets substantially as an entirety to any Person, and the successor Person
resulting from such consolidation, or surviving such merger, or into which the
Company or any Subsidiary Guarantor shall have been merged, or the Person which
shall have received a conveyance, transfer, lease or other disposition as
aforesaid, shall have executed an indenture supplemental hereto with the
Trustee pursuant to Article IV, any of the Securities authenticated or
delivered prior to such consolidation, merger, conveyance, transfer, lease or
other disposition may, from time to time, at the request of the successor
Person, be exchanged for other Securities executed in the name of the successor
Person with such changes in phraseology and form as may be appropriate, but
otherwise in substance of like tenor as the Securities surrendered for such
exchange and of like principal amount; and the Trustee, upon Company Order of
the successor Person, shall authenticate and deliver Securities as

<PAGE>

                                                                             42

specified in such order for the purpose of such exchange. If Securities shall
at any time be authenticated and delivered in any new name of a successor
Person pursuant to this Section 2.2 in exchange or substitution for or upon
registration of transfer of any Securities, such successor Person, at the
option of the Holders but without expense to them, shall provide for the
exchange of all Securities at the time outstanding for Securities authenticated
and delivered in such new name.

         SECTION 2.3.      Registrar and Paying Agent. The Company shall
maintain an office or agency where Securities may be presented for registration
of transfer or for exchange (the "Registrar") and an office or agency where
Securities may be presented for payment (the "Paying Agent"). The Company shall
cause each of the Registrar and the Paying Agent to maintain an office or
agency in the Borough of Manhattan, The City of New York. The Registrar shall
keep a register of the Securities and of their transfer and exchange (the "Note
Register"). The Company may have one or more co-registrars and one or more
additional paying agents. The term "Paying Agent" includes any additional
paying agent.

         The Company shall enter into an appropriate agency agreement with any
Registrar, Paying Agent or co-registrar not a party to this Indenture, which
shall incorporate the terms of the TIA. The agreement shall implement the
provisions of this Indenture that relate to such agent. The Company shall
notify the Trustee of the name and address of each such agent. If the Company
fails to maintain a Registrar or Paying Agent, the Trustee shall act as such
and shall be entitled to appropriate compensation therefor pursuant to Section
7.7. The Company or any of its Restricted Subsidiaries may act as Paying Agent,
Registrar, co-registrar or transfer agent.

         The Company initially appoints the Trustee as Registrar and Paying
Agent for the Securities.

         SECTION 2.4.      Paying Agent to Hold Money in Trust. By no later
than 10:00 a.m. (New York City time) on the date on which any principal of or
interest on any Security is due and payable, the Company shall deposit with the
Paying Agent a sum sufficient in immediately available funds to pay such
principal or interest when due. The Company shall require each Paying Agent
(other than the Trustee) to agree in writing that such Paying Agent shall hold
in trust for the benefit of Securityholders or the Trustee all money held by
such Paying Agent for the payment of principal of or interest on the Securities
and shall notify the Trustee in writing of any default by the Company or any
Subsidiary Guarantor in making any such payment. If the Company or a Subsidiary
acts as Paying Agent, it shall segregate the money held by it as Paying Agent
and hold it as a separate trust fund. The Company at any time may require a
Paying Agent (other than the Trustee) to pay all money held by it to the
Trustee and to account for any funds disbursed by such Paying Agent. Upon
complying with this Section, the Paying Agent (if other than the Company or a
Subsidiary) shall have no further liability for the money delivered to the
Trustee. Upon any bankruptcy, reorganization or similar proceeding with respect
to the Company, the Trustee shall serve as Paying Agent for the Securities.

         SECTION 2.5.      Securityholder Lists. The Trustee shall preserve in
as current a form as is reasonably practicable the most recent list available
to it of the names and addresses of Securityholders. If the Trustee is not the
Registrar, or to the extent otherwise required under the

<PAGE>

                                                                             43

TIA, the Company shall furnish to the Trustee, in writing at least five
Business Days before each interest payment date and at such other times as the
Trustee may request in writing, a list in such form and as of such date as the
Trustee may reasonably require of the names and addresses of Securityholders.

         SECTION 2.6.      Transfer and Exchange.

         (a) The following provisions shall apply with respect to any proposed
transfer of a Rule 144A Note or an Institutional Accredited Investor Note prior
to the date which is two years after the later of the date of its original
issue and the last date on which the Company or any affiliate of the Company
was the owner of such Securities (or any predecessor thereto) (the "Resale
Restriction Termination Date"):

         (i) a transfer of a Rule 144A Note or an Institutional Accredited
Investor Note or a beneficial interest therein to a QIB shall be made upon the
representation of the transferee in the form as set forth on the reverse of the
Security that it is purchasing for its own account or an account with respect
to which it exercises sole investment discretion and that it and any such
account is a "qualified institutional buyer" within the meaning of Rule 144A,
and is aware that the sale to it is being made in reliance on Rule 144A and
acknowledges that it has received such information regarding the Company as the
undersigned has requested pursuant to Rule 144A or has determined not to
request such information and that it is aware that the transferor is relying
upon its foregoing representations in order to claim the exemption from
registration provided by Rule 144A;

         (ii) a transfer of a Rule 144A Note or an Institutional Accredited
Investor Note or a beneficial interest therein to an IAI shall be made upon
receipt by the Trustee or its agent of a certificate substantially in the form
set forth in Section 2.7 from the proposed transferee and, if requested by the
Company or the Trustee, the delivery of an opinion of counsel, certification
and/or other information satisfactory to each of them; and

         (iii) a transfer of a Rule 144A Note or an Institutional Accredited
Investor Note or a beneficial interest therein to a Non-U.S. Person shall be
made upon receipt by the Trustee or its agent of a certificate substantially in
the form set forth in Section 2.8 from the proposed transferee and, if
requested by the Company or the Trustee, the delivery of an opinion of counsel,
certification and/or other information satisfactory to each of them.

         (b) The following provisions shall apply with respect to any proposed
transfer of a Regulation S Note prior to the expiration of the Restricted
Period:

         (i) a transfer of a Regulation S Note or a beneficial interest therein
to a QIB shall be made upon the representation of the transferee, in the form
of assignment on the reverse of the certificate, that it is purchasing the
Security for its own account or an account with respect to which it exercises
sole investment discretion and that it and any such account is a "qualified
institutional buyer" within the meaning of Rule 144A, and is aware that the
sale to it is being made in reliance on Rule 144A and acknowledges that it has
received such information regarding the Company as the undersigned has
requested

<PAGE>

                                                                             44

pursuant to Rule 144A or has determined not to request such information and
that it is aware that the transferor is relying upon its foregoing
representations in order to claim the exemption from registration provided by
Rule 144A;

         (ii) a transfer of a Regulation S Note or a beneficial interest
therein to an IAI shall be made upon receipt by the Trustee or its agent of a
certificate substantially in the form set forth in Section 2.7 from the
proposed transferee and, if requested by the Company or the Trustee, the
delivery of an opinion of counsel, certification and/or other information
satisfactory to each of them; and

         (iii) a transfer of a Regulation S Note or a beneficial interest
therein to a Non-U.S. Person shall be made upon receipt by the Trustee or its
agent of a certificate substantially in the form set forth in Section 2.8
hereof from the proposed transferee and, if requested by the Company or the
Trustee, receipt by the Trustee or its agent of an opinion of counsel,
certification and/or other information satisfactory to each of them.

         After the expiration of the Restricted Period, interests in the
Regulation S Note may be transferred without requiring the certification set
forth in Section 2.7, Section 2.8 or any additional certification.

         (c) Restricted Securities Legend. Upon the transfer, exchange or
replacement of Securities not bearing a Restricted Securities Legend, the
Registrar shall deliver Securities that do not bear a Restricted Securities
Legend. Upon the transfer, exchange or replacement of Securities bearing a
Restricted Securities Legend, the Registrar shall deliver only Securities that
bear a Restricted Securities Legend unless there is delivered to the Registrar
an Opinion of Counsel to the effect that neither such legend nor the related
restrictions on transfer are required in order to maintain compliance with the
provisions of the Securities Act.

         (d) The Registrar shall retain copies of all letters, notices and
other written communications received pursuant to Section 2.1 or this Section
2.6. The Company shall have the right to inspect and make copies of all such
letters, notices or other written communications at any reasonable time upon
the giving of reasonable prior written notice to the Registrar.

         (e) Obligations with Respect to Transfers and Exchanges of Securities.

         (i) To permit registrations of transfers and exchanges, the Company
shall, subject to the other terms and conditions of this Article II, execute
and the Trustee shall authenticate Definitive Securities and Global Securities
at the Registrar's or co-registrar's request.

         (ii) No service charge shall be made to a Holder for any registration
of transfer or exchange, but the Company may require payment of a sum
sufficient to cover any transfer tax, assessments, or similar governmental
charge payable in connection therewith (other than any such transfer taxes,
assessments or similar governmental charges payable upon exchange or transfer
pursuant to Sections 3.7, 3.9 or 9.5).

         (iii) The Registrar or co-registrar shall not be required to register
the transfer of or exchange of any Security for a period beginning (1) 15 days
before the mailing of a

<PAGE>

                                                                             45

notice of an offer to repurchase or redeem Securities and ending at the close
of business on the day of such mailing or (2) 15 days before an interest
payment date and ending on such interest payment date.

         (iv) Prior to the due presentation for registration of transfer of any
Security, the Company, the Trustee, the Paying Agent, the Registrar or any
co-registrar may deem and treat the person in whose name a Security is
registered as the absolute owner of such Security for the purpose of receiving
payment of principal of and interest on such Security and for all other
purposes whatsoever, whether or not such Security is overdue, and none of the
Company, the Trustee, the Paying Agent, the Registrar or any co-registrar shall
be affected by notice to the contrary.

         (v) Any Definitive Security delivered in exchange for an interest in a
Global Security pursuant to Section 2.1(e) shall, except as otherwise provided
by Section 2.6(c), bear the applicable legend regarding transfer restrictions
applicable to the Definitive Security set forth in Section 2.1(d).

         (vi) All Securities issued upon any transfer or exchange pursuant to
the terms of this Indenture shall evidence the same debt and shall be entitled
to the same benefits under this Indenture as the Securities surrendered upon
such transfer or exchange.

         (f) No Obligation of the Trustee

         (i) The Trustee shall have no responsibility or obligation to any
beneficial owner of a Global Security, a member of, or a participant in, DTC or
other Person with respect to the accuracy of the records of DTC or its nominee
or of any participant or member thereof, with respect to any ownership interest
in the Securities or with respect to the delivery to any participant, member,
beneficial owner or other Person (other than DTC) of any notice (including any
notice of redemption) or the payment of any amount or delivery of any
Securities (or other security or property) under or with respect to such
Securities. All notices and communications to be given to the Holders and all
payments to be made to Holders in respect of the Securities shall be given or
made only to or upon the order of the registered Holders (which shall be DTC or
its nominee in the case of a Global Security). The rights of beneficial owners
in any Global Security shall be exercised only through DTC subject to the
applicable rules and procedures of DTC. The Trustee may rely and shall be fully
protected in relying upon information furnished by DTC with respect to its
members, participants and any beneficial owners.

         (ii) The Trustee shall have no obligation or duty to monitor,
determine or inquire as to compliance with any restrictions on transfer imposed
under this Indenture or under applicable law with respect to any transfer of
any interest in any Security (including any transfers between or among DTC
participants, members or beneficial owners in any Global Security) other than
to require delivery of such certificates and other documentation or evidence as
are expressly required by, and to do so if and when expressly required by, the
terms of this Indenture, and to examine the same to determine substantial
compliance as to form with the express requirements hereof.

<PAGE>
                                                                             46

                  SECTION 2.7.      Form of Certificate to be Delivered in
Connection with Transfers to Institutional Accredited Investors.

                                                      [Date]

Russell Corporation
c/o Wachovia Bank, National Association
1100 First Union Plaza
999 Peachtree Street
Atlanta, Georgia 30309-9094

Dear Sirs:

                  This certificate is delivered to request a transfer of
$_________ principal amount of the 9.25% Senior Notes due 2010 (the
"Securities") of Russell Corporation (the "Company").

                  Upon transfer, the Securities would be registered in the name
of the new beneficial owner as follows:

                  Name:
                       ------------------------------------------

                  Address:
                          ---------------------------------------

                  Taxpayer ID Number:
                                     ----------------------------

                  The undersigned represents and warrants to you that:

                  1.       We are an institutional "accredited investor" (as
defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act of 1933, as
amended (the "Securities Act")) purchasing for our own account or for the
account of such an institutional "accredited investor" at least $250,000
principal amount of the Securities, and we are acquiring the Securities not
with a view to, or for offer or sale in connection with, any distribution in
violation of the Securities Act. We have such knowledge and experience in
financial and business matters as to be capable of evaluating the merits and
risk of our investment in the Securities and we invest in or purchase
securities similar to the Securities in the normal course of our business. We
and any accounts for which we are acting are each able to bear the economic
risk of our or its investment.

                  2.       We understand that the Securities have not been
registered under the Securities Act and, unless so registered, may not be sold
except as permitted in the following sentence. We agree on our own behalf and
on behalf of any investor account for which we are purchasing Securities to
offer, sell or otherwise transfer such Securities prior to the date that is two
years after the later of the date of original issue and the last date on which
the Company or any affiliate of the Company was the owner of such Securities
(or any predecessor thereto) (the "Resale Restriction Termination Date") only
(a) to the Company, (b) pursuant to a registration statement which has been
declared effective under the Securities Act, (c) in a transaction complying
with the requirements of Rule 144A under the Securities Act, to a person we
reasonably believe is a qualified institutional buyer under Rule 144A (a "QIB")
that purchases for its own account or for the account of a QIB and to whom
notice is given that the transfer is

<PAGE>
                                                                             47

being made in reliance on Rule 144A, (d) pursuant to offers and sales that
occur outside the United States within the meaning of Regulation S under the
Securities Act, (e) to an institutional "accredited investor" within the
meaning of Rule 501(a)(1), (2), (3) or (7) under the Securities Act that is
purchasing for its own account or for the account of such an institutional
"accredited investor," in each case in a minimum principal amount of Securities
of $250,000 or (f) pursuant to any other available exemption from the
registration requirements of the Securities Act, subject in each of the
foregoing cases to any requirement of law that the disposition of our property
or the property of such investor account or accounts be at all times within our
or their control and in compliance with any applicable state securities laws.
The foregoing restrictions on resale will not apply subsequent to the Resale
Restriction Termination Date. If any resale or other transfer of the Securities
is proposed to be made pursuant to clause (e) above prior to the Resale
Restriction Termination Date, the transferor shall deliver a letter from the
transferee substantially in the form of this letter to the Company and the
Trustee, which shall provide, among other things, that the transferee is an
institutional "accredited investor" (within the meaning of Rule 501(a)(1), (2),
(3) or (7) under the Securities Act) and that it is acquiring such Securities
for investment purposes and not for distribution in violation of the Securities
Act. Each purchaser acknowledges that the Company and the Trustee reserve the
right prior to any offer, sale or other transfer prior to the Resale
Termination Date of the Securities pursuant to clauses (d), (e) or (f) above to
require the delivery of an opinion of counsel, certifications and/or other
information satisfactory to the Company and the Trustee.

                                    TRANSFEREE:
                                               --------------------------------

                                    BY:
                                       ----------------------------------------

                  SECTION 2.8.      Form of Certificate to be Delivered in
Connection with Transfers Pursuant to Regulation S.

                                                      [Date]

Russell Corporation
c/o Wachovia Bank, National Association
1100 First Union Plaza
999 Peachtree Street
Atlanta, Georgia 30309-9094

                  Re:         Russell Corporation
                              9.25% Senior Notes due 2010 (the "Securities")

Ladies and Gentlemen:

                  In connection with our proposed sale of $________ aggregate
principal amount of the Securities, we confirm that such sale has been effected
pursuant to and in accordance with Regulation S under the United States
Securities Act of 1933, as amended (the "Securities Act"), and, accordingly, we
represent that:

                  (a)      the offer of the Securities was not made to a person
         in the United States;

<PAGE>
                                                                             48

                  (b)      either (i) at the time the buy order was originated,

         the transferee was outside the United States or we and any person
         acting on our behalf reasonably believed that the transferee was
         outside the United States or (ii) the transaction was executed in, on
         or through the facilities of a designated off-shore securities market
         and neither we nor any person acting on our behalf knows that the
         transaction has been pre-arranged with a buyer in the United States;

                  (c)      no directed selling efforts have been made in the
         United States in contravention of the requirements of Rule 903(b) or
         Rule 904(b) of Regulation S, as applicable; and

                  (d)      the transaction is not part of a plan or scheme to
         evade the registration requirements of the Securities Act.

                  In addition, if the sale is made during a restricted period
and the provisions of Rule 903(c)(3) or Rule 904(c)(1) of Regulation S are
applicable thereto, we confirm that such sale has been made in accordance with
the applicable provisions of Rule 903(c)(3) or Rule 904(c)(1), as the case may
be.

                  You and the Company are entitled to rely upon this letter and
are irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceedings or official inquiry
with respect to the matters covered hereby. Terms used in this certificate have
the meanings set forth in Regulation S.

                  Very truly yours,

                  [Name of Transferor]

                  By:
                     ------------------------------------------

                  ---------------------------------------------
                              Authorized Signature

                  SECTION 2.9.      Mutilated, Destroyed, Lost or Stolen
Securities. If a mutilated Security is surrendered to the Registrar or if the
Holder of a Security claims that the Security has been lost, destroyed or
wrongfully taken, the Company shall issue and the Trustee shall authenticate a
replacement Security if the requirements of Section 8-405 of the Uniform
Commercial Code are met, such that the Securityholder (a) satisfies the Company
or the Trustee within a reasonable time after such Securityholder has notice of
such loss, destruction or wrongful taking and the Registrar does not register a
transfer prior to receiving such notification, (b) makes such request to the
Company or Trustee prior to the Security being acquired by a protected
purchaser as defined in Section 8-303 of the Uniform Commercial Code (a
"protected purchaser") and (c) satisfies any other reasonable requirements of
the Trustee. If required by the Trustee or the Company, such Holder shall
furnish an indemnity bond sufficient in the judgment of the Company and the
Trustee to protect the Company, the Trustee, the Paying Agent, the Registrar
and any co-registrar from any loss which any of them may suffer if a Security
is replaced, and, in the absence of notice to the Company, any Subsidiary
Guarantor or the Trustee

<PAGE>
                                                                             49

that such Security has been acquired by a bona fide purchaser, the Company
shall execute and upon Company Order the Trustee shall authenticate and make
available for delivery, in exchange for any such mutilated Security or in lieu
of any such destroyed, lost or stolen Security, a new Security of like tenor
and principal amount, bearing a number not contemporaneously outstanding.

                  In case any such mutilated, destroyed, lost or stolen
Security has become or is about to become due and payable, the Company in its
discretion may, instead of issuing a new Security, pay such Security.

                  Upon the issuance of any new Security under this Section, the
Company may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of the Trustee) in connection
therewith.

                  Every new Security issued pursuant to this Section in lieu of
any mutilated, destroyed, lost or stolen Security shall constitute an original
additional contractual obligation of the Company, any Subsidiary Guarantor (if
applicable) and any other obligor upon the Securities, whether or not the
mutilated, destroyed, lost or stolen Security shall be at any time enforceable
by anyone, and shall be entitled to all benefits of this Indenture equally and
proportionately with any and all other Securities duly issued hereunder.

                  The provisions of this Section are exclusive and shall
preclude (to the extent lawful) all other rights and remedies with respect to
the replacement or payment of mutilated, destroyed, lost or stolen Securities.

                  SECTION 2.10. Outstanding Securities. Securities outstanding
at any time are all Securities authenticated by the Trustee except for those
canceled by it, those delivered to it for cancellation and those described in
this Section as not outstanding. A Security ceases to be outstanding in the
event the Company or a Subsidiary of the Company holds the Security, provided,
however, that (i) for purposes of determining which are outstanding for consent
or voting purposes hereunder, the provisions of Section 11.6 shall apply and
(ii) in determining whether the Trustee shall be protected in making a
determination whether the Holders of the requisite principal amount of
outstanding Securities are present at a meeting of Holders of Securities for
quorum purposes or have consented to or voted in favor of any request, demand,
authorization, direction, notice, consent, waiver, amendment or modification
hereunder, or relying upon any such quorum, consent or vote, only Securities
which a Trust Officer of the Trustee actually knows to be held by the Company or
an Affiliate of the Company shall not be considered outstanding.

                  If a Security is replaced pursuant to Section 2.9, it ceases
to be outstanding unless the Trustee and the Company receive proof satisfactory
to them that the replaced Security is held by a bona fide purchaser.

                  If the Paying Agent segregates and holds in trust, in
accordance with this Indenture, on a redemption date or maturity date money
sufficient to pay all principal and interest payable on that date with respect
to the Securities (or portions thereof) to be redeemed or

<PAGE>
                                                                             50

maturing, as the case may be, and the Paying Agent is not prohibited from
paying such money to the Securityholders on that date pursuant to the terms of
this Indenture, then on and after that date such Securities (or portions
thereof) cease to be outstanding and interest on them ceases to accrue.

                  SECTION 2.11.     Temporary Securities. In the event that
Definitive Securities are to be issued under the terms of this Indenture, until
such Definitive Securities are ready for delivery, the Company may prepare and
the Trustee shall authenticate temporary Securities. Temporary Securities shall
be substantially in the form of Definitive Securities but may have variations
that the Company considers appropriate for temporary Securities. Without
unreasonable delay, the Company shall prepare and the Trustee shall
authenticate Definitive Securities. After the preparation of Definitive
Securities, the temporary Securities shall be exchangeable for Definitive
Securities upon surrender of the temporary Securities at any office or agency
maintained by the Company for that purpose and such exchange shall be without
charge to the Holder. Upon surrender for cancellation of any one or more
temporary Securities, the Company shall execute, and the Trustee shall
authenticate and make available for delivery in exchange therefor, one or more
Definitive Securities representing an equal principal amount of Securities.
Until so exchanged, the Holder of temporary Securities shall in all respects be
entitled to the same benefits under this Indenture as a Holder of Definitive
Securities.

                  SECTION 2.12.     Cancellation. The Company at any time may
deliver Securities to the Trustee for cancellation. The Registrar and the
Paying Agent shall forward to the Trustee any Securities surrendered to them
for registration of transfer, exchange or payment. The Trustee and no one else
shall cancel all Securities surrendered for registration of transfer, exchange,
payment or cancellation and destroy such Securities in accordance with its
internal policies including delivery of a certificate (a "Certificate of
Destruction") describing such Securities disposed (subject to the record
retention requirements of the Exchange Act). The Company may not issue new
Securities to replace Securities it has paid or delivered to the Trustee for
cancellation for any reason other than in connection with a transfer or
exchange.

                  SECTION 2.13.     Payment of Interest; Defaulted Interest.
Interest on any Security which is payable, and is punctually paid or duly
provided for, on any interest payment date shall be paid to the Person in whose
name such Security (or one or more predecessor Securities) is registered at the
close of business on the regular record date for such interest at the office or
agency of the Company maintained for such purpose pursuant to Section 2.3.

                  Any interest on any Security which is payable, but is not
paid when the same becomes due and payable and such nonpayment continues for a
period of 30 days shall forthwith cease to be payable to the Holder on the
regular record date by virtue of having been such Holder, and such defaulted
interest and (to the extent lawful) interest on such defaulted interest at the
rate borne by the Securities (such defaulted interest and interest thereon
herein collectively called "Defaulted Interest") shall be paid by the Company,
at its election in each case, as provided in clause (a) or (b) below:

                  (a)      The Company may elect to make payment of any
         Defaulted Interest to the Persons in whose names the Securities (or
         their respective predecessor Securities) are registered at the close
         of business on a Special Record Date (as defined below) for the

<PAGE>
                                                                             51

         payment of such Defaulted Interest, which shall be fixed in the
         following manner. The Company shall notify the Trustee in writing of
         the amount of Defaulted Interest proposed to be paid on each Security
         and the date (not less than 30 days after such notice) of the proposed
         payment (the "Special Interest Payment Date"), and at the same time
         the Company shall deposit with the Trustee an amount of money equal to
         the aggregate amount proposed to be paid in respect of such Defaulted
         Interest or shall make arrangements satisfactory to the Trustee for
         such deposit prior to the date of the proposed payment, such money
         when deposited to be held in trust for the benefit of the Persons
         entitled to such Defaulted Interest as in this clause provided.
         Thereupon the Trustee shall fix a record date (the "Special Record
         Date") for the payment of such Defaulted Interest, which date shall be
         not more than 15 days and not less than 10 days prior to the Special
         Interest Payment Date and not less than 10 days after the receipt by
         the Trustee of the notice of the proposed payment. The Trustee shall
         promptly notify the Company of such Special Record Date, and in the
         name and at the expense of the Company, shall cause notice of the
         proposed payment of such Defaulted Interest and the Special Record
         Date and Special Interest Payment Date therefor to be given in the
         manner provided for in Section 11.2, not less than 10 days prior to
         such Special Record Date. Notice of the proposed payment of such
         Defaulted Interest and the Special Record Date and Special Interest
         Payment Date therefor having been so given, such Defaulted Interest
         shall be paid on the Special Interest Payment Date to the Persons in
         whose names the Securities (or their respective predecessor
         Securities) are registered at the close of business on such Special
         Record Date and shall no longer be payable pursuant to the following
         clause (b).

                  (b)      The Company may make payment of any Defaulted
         Interest in any other lawful manner not inconsistent with the
         requirements of any securities exchange on which the Securities may be
         listed, and upon such notice as may be required by such exchange, if,
         after notice given by the Company to the Trustee of the proposed
         payment pursuant to this clause, such manner of payment shall be
         deemed practicable by the Trustee.

                  Subject to the foregoing provisions of this Section, each
Security delivered under this Indenture upon registration of, transfer of or in
exchange for or in lieu of any other Security shall carry the rights to
interest accrued and unpaid, and to accrue, which were carried by such other
Security.

                  SECTION 2.14.     Computation of Interest. Interest on the
Securities shall be computed on the basis of a 360-day year of twelve 30-day
months.

                  SECTION 2.15.     CUSIP Numbers. The Company in issuing the
Securities may use "CUSIP" numbers (if then generally in use) and, if so, the
Trustee shall use "CUSIP" numbers in notices of redemption as a convenience to
Holders; provided, however, that any such notice may state that no
representation is made as to the correctness of such numbers either as printed
on the Securities or as contained in any notice of a redemption and that
reliance may be placed only on the other identification numbers printed on the
Securities, and any such redemption shall not be affected by any defect in or
omission of such CUSIP numbers. The Company shall promptly notify the Trustee
in writing of any change in the CUSIP numbers.

<PAGE>
                                                                             52

                                  ARTICLE III

                                   Covenants

                  SECTION 3.1.      Payment of Securities. The Company shall
promptly pay the principal of and interest on the Securities on the dates and
in the manner provided in the Securities and in this Indenture. Principal and
interest shall be considered paid on the date due if on such date the Trustee
or the Paying Agent holds in accordance with this Indenture immediately
available funds sufficient to pay all principal and interest then due.

                  The Company shall pay interest on overdue principal at the
rate specified therefor in the Securities, and it shall pay interest on overdue
installments of interest at the same rate to the extent lawful.

                  Notwithstanding anything to the contrary contained in this
Indenture, the Company may, to the extent it is required to do so by law,
deduct or withhold income or other similar taxes imposed by the United States
of America from principal or interest payments hereunder.

                  SECTION 3.2.      SEC Reports. Notwithstanding that the
Company may not be subject to the reporting requirements of Section 13 or 15(d)
of the Exchange Act, to the extent permitted by the Exchange Act, the Company
shall file with the Commission, and make available to the Trustee and the
registered Holders of the Securities, all quarterly and annual financial
information that would be required to be contained in a filing with the
Commission on Forms 10-Q and 10-K, and any successor or substitute forms
thereto, if the Company were required to file reports on such forms, including
a Management's Discussion and Analysis of Financial Condition and Results of
Operations, and all current reports that are required to be filed with the
Commission on Form 8-K, and any successor or substitute form thereto, if the
Company were required to file such reports on such form, and proxy statements
if the Company were required to file proxy statements, and any other reports
required to be filed pursuant to Sections 13 and 15(d) of the Exchange Act, in
each case, within the time periods specified therein. In the event that the
Company is not permitted to file such reports, documents and information with
the Commission pursuant to the Exchange Act, the Company will nevertheless
provide such Exchange Act information to the Trustee and, upon request, to the
Holders of the Securities as if the Company were subject to the reporting
requirements of Section 13 or 15(d) of the Exchange Act within the time periods
specified therein.

                  SECTION 3.3.      Limitation on Indebtedness. The Company
shall not, and shall not permit any of its Restricted Subsidiaries to, Incur
any Indebtedness (including Acquired Indebtedness); provided, however, that the
Company and the Subsidiary Guarantors may Incur Indebtedness if on the date
thereof:

                  (1)      the Consolidated Coverage Ratio for the Company and
                           its Restricted Subsidiaries is at least 2.50 to
                           1.00; and

                  (2)      no Default or Event of Default will have occurred or
                           be continuing or would occur as a consequence of
                           Incurring the Indebtedness.

<PAGE>
                                                                             53

                  The first paragraph of this Section 3.3 will not prohibit the
Incurrence of the following Indebtedness:

                  (1)      Indebtedness of the Company and its Subsidiary
                           Guarantors Incurred pursuant to the Senior Credit
                           Agreement together with the principal component of
                           amounts outstanding under Qualified Receivables
                           Transactions in an aggregate principal amount not to
                           exceed the greater of (a) the Borrowing Base and
                           (b)(x) $375.0 million less (y) the aggregate
                           principal amount of all repayments with the proceeds
                           from Asset Dispositions;

                  (2)      the Subsidiary Guarantees and other Guarantees by
                           the Subsidiary Guarantors of Indebtedness Incurred
                           in accordance with the provisions of this Indenture;
                           provided that in the event such Indebtedness that is
                           being Guaranteed is a Subordinated Obligation or a
                           Guarantor Subordinated Obligation, then the related
                           Guarantee shall be subordinated in right of payment
                           to the Subsidiary Guarantee;

                  (3)      Indebtedness of the Company owing to and held by any
                           Restricted Subsidiary (other than a Receivables
                           Entity) or Indebtedness of a Restricted Subsidiary
                           owing to and held by the Company or any Restricted
                           Subsidiary (other than a Receivables Entity),
                           provided, however;

                           (a)      if the Company is the obligor on such
                                    Indebtedness extended by a Subsidiary that
                                    is not a Subsidiary Guarantor, such
                                    Indebtedness is expressly subordinated to
                                    the prior payment in full in cash of all
                                    obligations with respect to the Securities;
                                    and

                           (b)      (i) any subsequent issuance or transfer of
                                    Capital Stock or any other event which
                                    results in any such Indebtedness being
                                    beneficially held by a Person other than
                                    the Company or a Restricted Subsidiary
                                    (other than a Receivables Entity) of the
                                    Company; and

                                    (ii) any sale or other transfer of any such
                                    Indebtedness to a Person other than the
                                    Company or a Restricted Subsidiary (other
                                    than a Receivables Entity) of the Company,

                  shall be deemed, in each case, to constitute an Incurrence of
                  such Indebtedness by the Company or such Subsidiary, as the
                  case may be;

                  (4)      Indebtedness represented by (a) the Securities
                           issued on the Issue Date, (b) any Indebtedness
                           (other than the Indebtedness described in clauses
                           (1), (2), (3), (6), (8), (9), (10) and (13))
                           outstanding on the Issue Date and (c) any
                           Refinancing Indebtedness Incurred in respect of any
                           Indebtedness

<PAGE>
                                                                             54

                           described in this clause (4) or clause (5) or
                           Incurred pursuant to the first paragraph of this
                           Section 3.3;

                  (5)      Indebtedness of a Subsidiary Guarantor Incurred and
                           outstanding on the date on which such Subsidiary
                           Guarantor was acquired by the Company (other than
                           Indebtedness Incurred (a) to provide all or any
                           portion of the funds utilized to consummate the
                           transaction or series of related transactions
                           pursuant to which such Subsidiary Guarantor became a
                           Subsidiary Guarantor or was otherwise acquired by
                           the Company or (b) otherwise in connection with, or
                           in contemplation of, such acquisition); provided
                           however, that at the time such Subsidiary Guarantor
                           is acquired by the Company, the Company would have
                           been able to Incur $1.00 of additional Indebtedness
                           pursuant to the first paragraph of this Section 3.3
                           after giving effect to the Incurrence of such
                           Indebtedness pursuant to this clause (5);

                  (6)      Indebtedness under Currency Agreements and Interest
                           Rate Agreements; provided that in the case of
                           Currency Agreements, such Currency Agreements are
                           related to business transactions of the Company or
                           its Restricted Subsidiaries entered into in the
                           ordinary course of business or in the case of
                           Currency Agreements and Interest Rate Agreements,
                           such Currency Agreements and Interest Rate
                           Agreements are entered into for bona fide hedging
                           purposes of the Company or its Restricted
                           Subsidiaries (as determined in good faith by the
                           Board of Directors or senior management of the
                           Company) and substantially correspond in terms of
                           notional amount, duration, currencies and interest
                           rates, as applicable, to Indebtedness of the Company
                           or its Restricted Subsidiaries Incurred without
                           violation of this Indenture;

                  (7)      the incurrence by the Company or any of its
                           Restricted Subsidiaries of Indebtedness represented
                           by Capitalized Lease Obligations, mortgage
                           financings or purchase money obligations with
                           respect to assets other than Capital Stock or other
                           Investments, in each case incurred for the purpose
                           of financing all or any part of the purchase price
                           or cost of construction or improvements of property
                           or assets used in the business of the Company or
                           such Restricted Subsidiaries, in an aggregate
                           principal amount not to exceed $15.0 million at any
                           time outstanding;

                  (8)      Indebtedness incurred in respect of workers'
                           compensation claims, self-insurance obligations,
                           performance, surety and similar bonds and completion
                           guarantees provided by the Company or a Restricted
                           Subsidiary in the ordinary course of business;

                  (9)      Indebtedness arising from agreements of the Company
                           or a Restricted Subsidiary providing for
                           indemnification, adjustment of purchase price or
                           similar obligations, in each case, incurred or
                           assumed in connection with

<PAGE>
                                                                             55

                           the disposition of any business, assets or Capital
                           Stock of a Restricted Subsidiary, provided that the
                           maximum aggregate liability in respect of all such
                           Indebtedness shall at no time exceed the gross
                           proceeds actually received by the Company and its
                           Restricted Subsidiaries in connection with such
                           disposition;

                  (10)     Indebtedness arising from the honoring by a bank or
                           other financial institution of a check, draft or
                           similar instrument drawn against insufficient funds
                           in the ordinary course of business, provided,
                           however, that such Indebtedness is extinguished
                           within five business days of Incurrence;

                  (11)     Any Securities or Subsidiary Guarantees issued in
                           exchange for the Securities or Subsidiary Guarantees
                           pursuant to the Registration Rights Agreement;

                  (12)     Indebtedness Incurred in connection with the
                           Excluded Sale/Leasebacks in an aggregate principal
                           amount at any one time not to exceed $35.0 million;

                  (13)     Indebtedness of Foreign Subsidiaries in an aggregate
                           principal amount at any one time outstanding not to
                           exceed the greater of (x) the Foreign Borrowing Base
                           and (y) $25.0 million; and

                  (14)     in addition to the items referred to in clauses (1)
                           through (13) above, Indebtedness of the Company and
                           its Subsidiary Guarantors in an aggregate
                           outstanding principal amount which, when taken
                           together with the principal amount of all other
                           Indebtedness Incurred pursuant to this clause (14)
                           and then outstanding, will not exceed $25.0 million.

                  For purposes of determining compliance with, and the
outstanding principal amount of any particular Indebtedness incurred pursuant
to and in compliance with, this Section 3.3:

                  (1)      in the event that Indebtedness meets the criteria of
                           more than one of the types of Indebtedness described
                           in the first and second paragraphs of this Section
                           3.3, the Company, in its sole discretion, will
                           classify such item of Indebtedness on the date of
                           Incurrence and only be required to include the
                           amount and type of such Indebtedness in one of such
                           clauses, and the Company will be entitled, at the
                           time of such Incurrence, to divide and classify an
                           item of Indebtedness into one or more types of
                           Indebtedness described herein, and the Company may
                           reclassify any such Indebtedness between clauses (1)
                           and (14) of the second paragraph of this Section
                           3.3, between clauses (7) and (14) of the second
                           paragraph of this Section 3.3 and between clauses
                           (13) and (14) of the second paragraph of this
                           Section

<PAGE>
                                                                             56

                           3.3 to the extent such Indebtedness could be
                           Incurred pursuant to such clause at the time of such
                           reclassification;

                  (2)      all Indebtedness outstanding on the date of this
                           Indenture under the Senior Credit Agreement shall be
                           deemed outstanding under clause (1) of the second
                           paragraph of this Section 3.3;

                  (3)      all amounts outstanding under Qualified Receivables
                           Transactions on the date of this Indenture shall be
                           deemed outstanding under clause (1) of the second
                           paragraph of this Section 3.3;

                  (4)      all amounts outstanding under credit arrangements of
                           Foreign Subsidiaries on the date of this Indenture
                           shall be deemed outstanding under clause (13) of the
                           second paragraph of this Section 3.3; and

                  (5)      the amount of Indebtedness issued at a price that is
                           less than the principal amount thereof will be equal
                           to the amount of the liability in respect thereof
                           determined in accordance with GAAP.

                  Accrual of interest, accrual of dividends, the accretion of
accreted value, the payment of interest in the form of additional Indebtedness
and the payment of dividends in the form of additional shares of Preferred
Stock will not be deemed to be an Incurrence of Indebtedness for purposes of
this Section 3.3. The amount of any Indebtedness outstanding as of any date
shall be (i) the accreted value of the Indebtedness in the case of any
Indebtedness issued with original issue discount and (ii) the principal amount
or liquidation preference thereof, together with any interest thereon that is
more than 30 days past due, in the case of any other Indebtedness.

                  In addition, the Company will not permit any of its
Unrestricted Subsidiaries to Incur any Indebtedness or issue any shares of
Disqualified Stock, other than Non-Recourse Debt. If at any time an
Unrestricted Subsidiary becomes a Restricted Subsidiary, any Indebtedness of
such Subsidiary shall be deemed to be Incurred by a Restricted Subsidiary of
the Company as of such date (and, if such Indebtedness is not permitted to be
Incurred as of such date under this Section 3.3, the Company shall be in
Default of this Section 3.3).

                  For purposes of determining compliance with any U.S.
dollar-denominated restriction on the Incurrence of Indebtedness, the U.S.
dollar-equivalent principal amount of Indebtedness denominated in a foreign
currency shall be calculated based on the relevant currency exchange rate in
effect on the date such Indebtedness was Incurred, in the case of term
Indebtedness, or first committed, in the case of revolving credit Indebtedness;
provided that if such Indebtedness is Incurred to refinance other Indebtedness
denominated in a foreign currency, and such refinancing would cause the
applicable U.S. dollar-denominated restriction to be exceeded if calculated at
the relevant currency exchange rate in effect on the date of such refinancing,
such U.S. dollar denominated restriction shall be deemed not to have been
exceeded so long as the principal amount of such refinancing Indebtedness does
not exceed the principal amount of such Indebtedness being refinanced.
Notwithstanding any other provision of this

<PAGE>
                                                                             57

Section 3.3, the maximum amount of Indebtedness that the Company may Incur
pursuant to this Section 3.3 shall not be deemed to be exceeded solely as a
result of fluctuations in the exchange rate of currencies. The principal amount
of any Indebtedness Incurred to refinance other Indebtedness, if Incurred in a
different currency from the Indebtedness being refinanced, shall be calculated
based on the currency exchange rate applicable to the currencies in which such
Refinancing Indebtedness is denominated that is in effect on the date of such
refinancing.

                  SECTION 3.4.      Limitation on Restricted Payments. The
Company will not, and will not permit any of its Restricted Subsidiaries,
directly or indirectly, to:

                  (1)      declare or pay any dividend or make any distribution
                           on or in respect of its Capital Stock (including any
                           payment in connection with any merger or
                           consolidation involving the Company or any of its
                           Restricted Subsidiaries) except:

                           (a)     dividends or distributions payable in
                                   Capital Stock of the Company (other than
                                   Disqualified Stock) or in options, warrants
                                   or other rights to purchase such Capital
                                   Stock; and

                           (b)     dividends or distributions payable to the
                                   Company or a Restricted Subsidiary of the
                                   Company (and if such Restricted Subsidiary
                                   is not a Wholly-Owned Subsidiary, to its
                                   other holders of common Capital Stock on a
                                   pro rata basis);

                  (2)      purchase, redeem, retire or otherwise acquire for
                           value any Capital Stock of the Company or any direct
                           or indirect parent of the Company held by Persons
                           other than the Company or a Restricted Subsidiary of
                           the Company (other than in exchange for Capital
                           Stock of the Company (other than Disqualified
                           Stock));

                  (3)      purchase, repurchase, redeem, defease or otherwise
                           acquire or retire for value, prior to scheduled
                           maturity, scheduled repayment or scheduled sinking
                           fund payment, any Subordinated Obligations or
                           Guarantor Subordinated Obligations (other than the
                           purchase, repurchase, redemption, defeasance or
                           other acquisition of Subordinated Obligations or
                           Guarantor Subordinated Obligations in anticipation
                           of satisfying a sinking fund obligation, principal
                           installment or final maturity, in each case due
                           within one year of the date of purchase, repurchase,
                           redemption, defeasance or acquisition); or

                  (4)      make any Restricted Investment in any Person;

(any such dividend, distribution, purchase, redemption, repurchase, defeasance,
other acquisition, retirement or Restricted Investment referred to in clauses
(1) through (4) shall be referred to herein as a "Restricted Payment"), if at
the time the Company or such Restricted Subsidiary makes such Restricted
Payment:

<PAGE>
                                                                             58

                  (a)      a Default shall have occurred and be continuing (or
                           would result therefrom); or

                  (b)      the Company is not able to Incur an additional $1.00
                           of Indebtedness pursuant to the first paragraph of
                           Section 3.3 after giving effect, on a pro forma
                           basis, to such Restricted Payment; or

                  (c)      the aggregate amount of such Restricted Payment and
                           all other Restricted Payments declared or made
                           subsequent to the Issue Date would exceed the sum
                           of:

                           (i)      50% of Consolidated Net Income for the
                                    period (treated as one accounting period)
                                    from the beginning of the first fiscal
                                    quarter commencing prior to the Issue Date
                                    to the end of the most recent fiscal
                                    quarter ending prior to the date of such
                                    Restricted Payment for which financial
                                    statements are in existence (or, in case
                                    such Consolidated Net Income is a deficit,
                                    minus 100% of such deficit);

                           (ii)     100% of the aggregate Net Cash Proceeds
                                    received by the Company from the issue or
                                    sale of its Capital Stock (other than
                                    Disqualified Stock) or other capital
                                    contributions subsequent to the Issue Date
                                    (other than Net Cash Proceeds received from
                                    an issuance or sale of such Capital Stock
                                    to a Subsidiary of the Company or an
                                    employee stock ownership plan, option plan
                                    or similar trust to the extent such sale to
                                    an employee stock ownership plan option
                                    plan or similar trust is financed by loans
                                    from or guaranteed by the Company or any
                                    Restricted Subsidiary unless such loans
                                    have been repaid on or prior to the date of
                                    determination);

                           (iii)    the amount by which Indebtedness of the
                                    Company is reduced on the Company's balance
                                    sheet upon the conversion or exchange
                                    (other than by a Subsidiary of the Company)
                                    subsequent to the Issue Date of any
                                    Indebtedness of the Company convertible or
                                    exchangeable for Capital Stock (other than
                                    Disqualified Stock) of the Company (less
                                    the amount of any cash, or other property,
                                    distributed by the Company upon such
                                    conversion or exchange, plus the amount of
                                    cash received by the Company upon such
                                    conversion or exchange); and

                           (iv)     the amount equal to the net reduction in
                                    Restricted Investments made by the Company
                                    or any of its Restricted Subsidiaries in
                                    any Person resulting from:

<PAGE>
                                                                             59

                                    (A)     repurchases or redemptions of such
                                            Restricted Investments by such
                                            Person, proceeds realized upon the
                                            sale of such Restricted Investment
                                            to an unaffiliated purchaser,
                                            repayments of loans or advances or
                                            other transfers of assets
                                            (including by way of dividend or
                                            distribution) by such Person to the
                                            Company or any Restricted
                                            Subsidiary of the Company; or

                                    (B)     the redesignation of Unrestricted
                                            Subsidiaries as Restricted
                                            Subsidiaries (valued in each case
                                            as provided in the definition of
                                            "Investment") not to exceed, in the
                                            case of any Unrestricted
                                            Subsidiary, the amount of
                                            Investments previously made by the
                                            Company or any Restricted
                                            Subsidiary in such Unrestricted
                                            Subsidiary,

                           which amount in each case under this clause (iv) was
                           included in the calculation of the amount of
                           Restricted Payments; provided, however, that no
                           amount will be included under this clause (iv) to
                           the extent it is already included in Consolidated
                           Net Income.

                  The provisions of the preceding paragraph will not prohibit:

                  (1)      any purchase, retirement, prepayment, defeasance or
                           redemption of Capital Stock or Subordinated
                           Obligations of the Company or Guarantor Subordinated
                           Obligations made by exchange for, or out of the
                           proceeds of the substantially concurrent sale of,
                           Capital Stock of the Company (other than
                           Disqualified Stock and other than Capital Stock
                           issued or sold to a Subsidiary or an employee stock
                           ownership plan or similar trust to the extent such
                           sale to an employee stock ownership plan or similar
                           trust is financed by loans from or guaranteed by the
                           Company or any Restricted Subsidiary unless such
                           loans have been repaid on or prior to the date of
                           determination); provided, however, that (a) such
                           purchase or redemption will be excluded in
                           subsequent calculations of the amount of Restricted
                           Payments and (b) the Net Cash Proceeds from such
                           sale will be excluded from clause (c)(ii) of the
                           preceding paragraph;

                  (2)      any purchase, retirement, prepayment, defeasance or
                           redemption of Subordinated Obligations of the
                           Company or Guarantor Subordinated Obligations made
                           by exchange for, or out of the proceeds of the
                           substantially concurrent sale of, Subordinated
                           Obligations of the Company or Guarantor Subordinated
                           Obligations, as the case may be, that qualifies as
                           Refinancing Indebtedness; provided, however, that
                           such purchase or redemption will be excluded in
                           subsequent calculations of the amount of Restricted
                           Payments;

<PAGE>
                                                                             60

                  (3)      so long as no Default or Event of Default has
                           occurred and is continuing, any purchase or
                           redemption of Subordinated Obligations or Guarantor
                           Subordinated Obligations from Net Available Cash to
                           the extent permitted under Section 3.7; provided,
                           however, that such purchase or redemption will be
                           excluded in subsequent calculations of the amount of
                           Restricted Payments;

                  (4)      dividends paid within 60 days after the date of
                           declaration if at such date of declaration such
                           dividend would have complied with this provision;
                           provided however, that such dividends will be
                           included in subsequent calculations of the amount of
                           Restricted Payments;

                  (5)      so long as no Default or Event of Default has
                           occurred and is continuing,

                           (a)      the purchase, redemption or other
                                    acquisition, cancellation or retirement for
                                    value of Capital Stock, or options,
                                    warrants, equity appreciation rights or
                                    other rights to purchase or acquire Capital
                                    Stock of the Company or any Restricted
                                    Subsidiary of the Company or any parent of
                                    the Company held by any existing or former
                                    employees or management of the Company or
                                    any Subsidiary of the Company or their
                                    assigns, estates or heirs, in each case in
                                    connection with the repurchase provisions
                                    under employee stock option or stock
                                    purchase agreements or other agreements to
                                    compensate management employees; provided
                                    that such redemptions or repurchases
                                    pursuant to this clause will not exceed
                                    $1.0 million in the aggregate during any
                                    calendar year and $5.0 million in the
                                    aggregate for all such redemptions and
                                    repurchases; provided, however, that the
                                    amount of any such repurchase or redemption
                                    will be included in subsequent calculations
                                    of the amount of Restricted Payments; and

                           (b)      loans or advances to employees or directors
                                    of the Company or any Subsidiary of the
                                    Company, in an aggregate amount not in
                                    excess of $2.0 million at any one time
                                    outstanding; provided, however,that the
                                    amount of such loans and advances will be
                                    included in subsequent calculations of the
                                    amount of Restricted Payments;

                  (6)      so long as no Default or Event of Default has
                           occurred and is continuing, the declaration and
                           payment of dividends to holders of any class or
                           series of Disqualified Stock of the Company issued
                           in accordance with the terms of this Indenture to
                           the extent such dividends are included in the
                           definition of "Consolidated Interest Expense";
                           provided, that the payment of such dividends will be
                           excluded from the calculation of Restricted
                           Payments;

<PAGE>
                                                                             61

                  (7)      repurchases of Capital Stock deemed to occur upon
                           the exercise of stock options if such Capital Stock
                           represents a portion of the exercise price thereof;
                           provided, however, that such repurchases will be
                           excluded from subsequent calculations of the amount
                           of Restricted Payments;

                  (8)      the repurchase, redemption, defeasance, retirement,
                           refinancing or acquisition for value or payment of
                           principal of Subordinated Obligations at a purchase
                           price not greater than 101% of the principal amount
                           of such Subordinated Obligations in the event of a
                           Change of Control pursuant to a provision similar to
                           Section 3.9; provided, however, that prior to any
                           such repurchase, the Company has made a Change of
                           Control Offer as provided in Section 3.9 above with
                           respect to the Securities and has repurchased all
                           Securities validly tendered for payment in
                           connection with such Change of Control Offer;
                           provided, however, that any repurchase, redemption,
                           defeasance, retirement, refinancing or acquisition
                           for value of Subordinated Obligations pursuant to
                           this clause (8) will be excluded in subsequent
                           calculations of the amount of Restricted Payments;

                  (9)      the declaration and payment of dividends on the
                           Company's common stock, par value $0.01 per share
                           (the "Common Stock"), in an amount not to exceed the
                           greater of (a) $0.16 per share in any fiscal year,
                           which amount will be reduced to reflect any
                           subdivision of the Common Stock by means of a stock
                           split, stock dividend or otherwise, or (b) $5.25
                           million in the aggregate in any fiscal year;
                           provided that at the time of declaration of such
                           dividend (x) no Default or Event of Default has
                           occurred and is continuing, and (y) the Company is
                           able to Incur at least an additional $1.00 of
                           Indebtedness pursuant to the first paragraph of
                           Section 3.3; provided further that the payment of
                           such dividends will be included in subsequent
                           calculations of the amount of Restricted Payments;
                           or

                  (10)     Restricted Payments, not otherwise described in
                           clauses (1) through (9) above, in an amount not to
                           exceed $7.5 million; provided that the amount of
                           such Restricted Payments will be included in the
                           calculation of the amount of Restricted Payments.

                  The amount of all Restricted Payments (other than cash) shall
be the fair market value on the date of such Restricted Payment of the asset(s)
or securities proposed to be paid, transferred or issued by the Company or such
Restricted Subsidiary, as the case may be, pursuant to such Restricted Payment.
The fair market value of any cash Restricted Payment shall be its face amount
and any non-cash Restricted Payment shall be determined conclusively by the
Board of Directors acting in good faith, whose resolution with respect thereto
shall be delivered to the Trustee, such determination to be based upon an
opinion or appraisal issued by an accounting, appraisal, financial advisory, or
investment banking firm of national standing if such fair market value is
estimated to exceed $25.0 million. Not later than the date of making any
Restricted Payment, the Company shall deliver to the Trustee an Officers'
Certificate stating that such Restricted Payment is permitted and setting forth
the basis upon which the calculations

<PAGE>
                                                                             62

required by Section 3.4 were computed, together with a copy of any fairness
opinion or appraisal required by this Indenture.

                  SECTION 3.5.      Limitation on Liens. The Company will not,
and will not permit any of its Restricted Subsidiaries to, directly or
indirectly, create, incur or suffer to exist any Lien (other than Permitted
Liens) upon any of its property or assets (including Capital Stock), whether
owned on the date of this Indenture or acquired after that date, securing any
Indebtedness, unless contemporaneously with the Incurrence of the Liens,
effective provision is made to secure the Indebtedness due under this Indenture
and the Securities or, in respect of Liens on any Restricted Subsidiary's
property or assets, any Subsidiary Guarantee of such Restricted Subsidiary,
equally and ratably with (or prior to in the case of Liens with respect to
Subordinated Obligations or Guarantor Subordinated Obligations, as the case may
be) the Indebtedness secured by such Lien for so long as such Indebtedness is
so secured.

                  SECTION 3.6.      Limitation on Restrictions on Distributions
from Restricted Subsidiaries. The Company will not, and will not permit any
Restricted Subsidiary to, create or otherwise cause or permit to exist or
become effective any consensual encumbrance or consensual restriction on the
ability of any Restricted Subsidiary to:

                  (1)      pay dividends or make any other distributions on its
                           Capital Stock or pay any Indebtedness or other
                           obligations owed to the Company or any Restricted
                           Subsidiary;

                  (2)      make any loans or advances to the Company or any
                           Restricted Subsidiary; or

                  (3)      transfer any of its property or assets to the
                           Company or any Restricted Subsidiary.

                  The preceding provisions will not prohibit:

                           (i)      any encumbrance or restriction pursuant to
                                    an agreement in effect at or entered into
                                    on the date of this Indenture, including,
                                    without limitation, this Indenture, the
                                    Securities, the Subsidiary Guarantees and
                                    the Senior Credit Agreement in effect on
                                    such date;

                           (ii)     any encumbrance or restriction with respect
                                    to a Restricted Subsidiary pursuant to an
                                    agreement relating to any Indebtedness
                                    Incurred by a Restricted Subsidiary on or
                                    before the date on which such Restricted
                                    Subsidiary was acquired by the Company
                                    (other than Indebtedness Incurred as
                                    consideration in, or to provide all or any
                                    portion of the funds utilized to
                                    consummate, the transaction or series of
                                    related transactions pursuant to which such
                                    Restricted Subsidiary became a Restricted
                                    Subsidiary or was acquired by the Company
                                    or in contemplation of the transaction) and
                                    outstanding on such date;

<PAGE>
                                                                             63

                           (iii)    any encumbrance or restriction with respect
                                    to a Restricted Subsidiary pursuant to an
                                    agreement effecting a refunding,
                                    replacement or refinancing of Indebtedness
                                    Incurred pursuant to an agreement referred
                                    to in clause (i) or (ii) of this paragraph
                                    or this clause (iii) or contained in any
                                    amendment to an agreement referred to in
                                    clause (i) or (ii) of this paragraph or
                                    this clause (iii); provided, however, that
                                    the encumbrances and restrictions with
                                    respect to such Restricted Subsidiary
                                    contained in any such agreement are not
                                    materially less favorable, taken as a
                                    whole, to the Holders of the Securities
                                    than the encumbrances and restrictions
                                    contained in such agreements referred to in
                                    clauses (i) or (ii) of this paragraph on
                                    the Issue Date or the date such Restricted
                                    Subsidiary became a Restricted Subsidiary,
                                    whichever is applicable;

                           (iv)     in the case of clause (3) of the first
                                    paragraph of this Section 3.6, any
                                    encumbrance or restriction:

                                    (a)     that restricts in a customary
                                            manner the subletting, assignment
                                            or transfer of any property or
                                            asset that is subject to a lease,
                                            license or similar contract, or the
                                            assignment or transfer of any such
                                            lease, license or other contract;

                                    (b)     contained in mortgages, pledges,
                                            security agreements or other Liens
                                            permitted under this Indenture
                                            securing Indebtedness of the
                                            Company or a Restricted Subsidiary
                                            to the extent such encumbrances or
                                            restrictions restrict the transfer
                                            of the property subject to such
                                            mortgages, pledges, security
                                            agreements or other Liens; or

                                    (c)     pursuant to customary provisions
                                            restricting dispositions of real
                                            property interests set forth in any
                                            reciprocal easement agreements of
                                            the Company or any Restricted
                                            Subsidiary;

                           (v)      purchase money obligations for property
                                    acquired in the ordinary course of business
                                    consistent with past practice that impose
                                    encumbrances or restrictions of the nature
                                    described in clause (3) of the first
                                    paragraph of this Section 3.6 on the
                                    property so acquired;

                           (vi)     any Purchase Money Note or other
                                    Indebtedness or contractual requirements
                                    incurred with respect to a Qualified
                                    Receivables Transaction relating
                                    exclusively to a Receivables Entity that,
                                    in the

<PAGE>
                                                                             64

                                    good faith determination of the Board of
                                    Directors, are necessary to effect such
                                    Qualified Receivables Transaction;

                           (vii)    any restriction with respect to a
                                    Restricted Subsidiary (or any of its
                                    property or assets) imposed pursuant to an
                                    agreement entered into for the direct or
                                    indirect sale or disposition of all or
                                    substantially all the Capital Stock or
                                    assets of such Restricted Subsidiary (or
                                    the property or assets that are subject to
                                    such restriction) pending the closing of
                                    such sale or disposition;

                           (viii)   encumbrances or restrictions arising or
                                    existing by reason of applicable law or any
                                    applicable rule, regulation or order;

                           (ix)     provisions with respect to the distribution
                                    of assets or property or joint venture
                                    interests in joint venture agreements and
                                    other similar agreements that are customary
                                    for such agreements; and

                           (x)      restrictions on cash or other deposits of
                                    net worth imposed by customers in contracts
                                    entered into in the ordinary course of
                                    business.

                  SECTION 3.7.      Limitation on Sales of Assets and
Subsidiary Stock. (a) The Company will not, and will not permit any of its
Restricted Subsidiaries to, make any Asset Disposition unless:

                  (1)      the Company or such Restricted Subsidiary, as the
                           case may be, receives consideration at the time of
                           contractually agreeing to such Asset Disposition at
                           least equal to the fair market value, as determined
                           in good faith by the Board of Directors (including
                           as to the value of all non-cash consideration), of
                           the shares and assets subject to such Asset
                           Disposition;

                  (2)      at least 75% of the consideration from such Asset
                           Disposition received by the Company or such
                           Restricted Subsidiary, as the case may be, is in the
                           form of cash or Cash Equivalents; and

                  (3)      an amount equal to 100% of the Net Available Cash
                           from such Asset Disposition is applied by the
                           Company or such Restricted Subsidiary, as the case
                           may be:

                           (a)      first, to the extent the Company or any
                                    Restricted Subsidiary, as the case may be,
                                    elects (or is required by the terms of any
                                    Indebtedness), to prepay, repay or purchase
                                    Secured Indebtedness (other than
                                    Disqualified Stock or Subordinated
                                    Obligations) of the Company or Secured
                                    Indebtedness (other than any Preferred
                                    Stock or Guarantor Subordinated
                                    Obligations) of a Restricted Subsidiary (in
                                    each case other than Indebtedness owed to
                                    the Company or an

<PAGE>
                                                                             65

                                    Affiliate of the Company) or the Senior
                                    Credit Agreement (whether the Senior Credit
                                    Agreement is secured or unsecured) within
                                    365 days from the later of the date of such
                                    Asset Disposition or the receipt of such
                                    Net Available Cash; provided, however,
                                    that, in connection with any prepayment,
                                    repurchase or repayment of Indebtedness
                                    pursuant to this clause (a), the Company or
                                    such Restricted Subsidiary will retire such
                                    Indebtedness, and will cause the related
                                    commitment (if any) to be permanently
                                    reduced in an amount equal to the principal
                                    amount so prepaid, repaid or repurchased;
                                    and

                           (b)      second, to the extent of the balance of
                                    such Net Available Cash after application
                                    in accordance with clause (a), to the
                                    extent the Company or such Restricted
                                    Subsidiary elects, to invest in Additional
                                    Assets within 365 days from the later of
                                    the date of such Asset Disposition or the
                                    receipt of such Net Available Cash;
                                    provided, that, investments in Additional
                                    Assets made within 60 days preceding the
                                    Asset Disposition will be deemed to be an
                                    investment in Additional Assets.

                  Clauses (1) and (2) above shall not be applicable to Assets
Held for Sale.

                  (b)      Any Net Available Cash from Asset Dispositions that
are not applied or invested as provided in the preceding paragraph will be
deemed to constitute "Excess Proceeds." On the 366th day after an Asset
Disposition, if the aggregate amount of Excess Proceeds exceeds $15.0 million,
the Company will be required to make an offer ("Asset Disposition Offer") to
all Holders of Securities and to the extent required by the terms of other Pari
Passu Indebtedness, to all holders of other Pari Passu Indebtedness outstanding
with similar provisions requiring the Company to make an offer to purchase such
Pari Passu Indebtedness with the proceeds from any Asset Disposition ("Pari
Passu Notes"), to purchase the maximum principal amount of Securities and any
such Pari Passu Notes to which the Asset Disposition Offer applies that may be
purchased out of the Excess Proceeds, at an offer price in cash in an amount
equal to 100% of the principal amount of the Securities and Pari Passu Notes
plus accrued and unpaid interest to the date of purchase, in accordance with
the procedures set forth in this Indenture or the agreements governing the Pari
Passu Notes, as applicable, in each case in integral multiples of $1,000. To
the extent that the aggregate amount of Securities and Pari Passu Notes so
validly tendered and not properly withdrawn pursuant to an Asset Disposition
Offer is less than the Excess Proceeds, the Company may use any remaining
Excess Proceeds for any other purpose which is not expressly prohibited by this
Indenture, including, but not limited to the purchase of Subordinated
Obligations and Guarantor Subordinated Obligations. If the aggregate principal
amount of Securities surrendered by Holders thereof and other Pari Passu Notes
surrendered by holders or lenders, collectively, exceeds the amount of Excess
Proceeds, the Trustee shall select the Securities and Pari Passu Notes to be
purchased on a pro rata basis on the basis of the aggregate principal amount of
tendered Securities and Pari Passu Notes. Upon completion of such Asset
Disposition Offer, the amount of Excess Proceeds shall be reset at zero.

<PAGE>
                                                                             66

                  (c)(1)   The Asset Disposition Offer will remain open for a
period of 20 Business Days following its commencement, except to the extent
that a longer period is required by applicable law (the "Asset Disposition
Offer Period"). No later than five Business Days after the termination of the
Asset Disposition Offer Period (the "Asset Disposition Purchase Date"), the
Company will purchase the principal amount of Securities and Pari Passu Notes
required to be purchased pursuant to this Section 3.7 (the "Asset Disposition
Offer Amount") or, if less than the Asset Disposition Offer Amount has been so
validly tendered, all Securities and Pari Passu Notes validly tendered in
response to the Asset Disposition Offer.

                  (2)      If the Asset Disposition Purchase Date is on or
after an interest record date and on or before the related interest payment
date, any accrued and unpaid interest will be paid to the Person in whose name
a Note is registered at the close of business on such record date, and no
additional interest will be payable to Holders of the Securities who tender
Securities pursuant to the Asset Disposition Offer.

                  (3)      On or before the Asset Disposition Purchase Date,
the Company will, to the extent lawful, accept for payment, on a pro rata basis
to the extent necessary, the Asset Disposition Offer Amount of Securities and
Pari Passu Notes or portions of Securities and Pari Passu Notes so validly
tendered and not properly withdrawn pursuant to the Asset Disposition Offer, or
if less than the Asset Disposition Offer Amount has been validly tendered and
not properly withdrawn, all Securities and Pari Passu Notes so validly tendered
and not properly withdrawn, in each case in integral multiples of $1,000. The
Company will deliver to the Trustee an Officers' Certificate stating that such
Securities or portions thereof were accepted for payment by the Company in
accordance with the terms of this Section 3.7 and, in addition, the Company
will deliver all certificates and notes required, if any, by the agreements
governing the Pari Passu Notes. The Company or the Paying Agent, as the case
may be, will promptly (but in any case not later than five Business Days after
termination of the Asset Disposition Offer Period) mail or deliver to each
tendering Holder of Securities or holder or lender of Pari Passu Notes, as the
case may be, an amount equal to the purchase price of the Securities or Pari
Passu Notes so validly tendered and not properly withdrawn by such holder or
lender, as the case may be, and accepted by the Company for purchase, and the
Company will promptly issue a new Security, and the Trustee, upon delivery of
an Officers' Certificate from the Company will authenticate and mail or deliver
such new Security to such Holder, in a principal amount equal to any
unpurchased portion of the Note surrendered; provided that each such new
Security will be in a principal amount of $1,000 or an integral multiple of
$1,000. In addition, the Company will take any and all other actions required
by the agreements governing the Pari Passu Notes. Any Security not so accepted
will be promptly mailed or delivered by the Company to the Holder thereof. The
Company will publicly announce the results of the Asset Disposition Offer on
the Asset Disposition Purchase Date.

                  For the purposes of this Section 3.7, the following will be
deemed to be cash:

                  (1)      the assumption by the transferee of Indebtedness
                           (other than Subordinated Obligations or Disqualified
                           Stock) of the Company or Indebtedness (other than
                           Guarantor Subordinated Obligations or Preferred
                           Stock) of any Restricted Subsidiary of the Company
                           and the release of the Company or

<PAGE>
                                                                             67

                           such Restricted Subsidiary from all liability on
                           such Indebtedness in connection with such Asset
                           Disposition (in which case the Company will, without
                           further action, be deemed to have applied such
                           deemed cash to Indebtedness in accordance with
                           clause (a) above); and

                  (2)      securities, notes or other obligations received by
                           the Company or any Restricted Subsidiary of the
                           Company from the transferee that are converted
                           within 90 days by the Company or such Restricted
                           Subsidiary into cash.

                  (d)      The Company will comply, to the extent applicable,
with the requirements of Section 14(e) of the Exchange Act and any other
securities laws or regulations in connection with the repurchase of Securities
pursuant to this Section 3.7. To the extent that the provisions of any
securities laws or regulations conflict with provisions of this Section 3.7,
the Company will comply with the applicable securities laws and regulations and
will not be deemed to have breached its obligations under this Indenture by
virtue of any conflict.

                  SECTION 3.8.      Limitation on Affiliate Transactions. The
Company will not, and will not permit any of its Restricted Subsidiaries to,
directly or indirectly, enter into or conduct any transaction (including the
purchase, sale, lease or exchange of any property or the rendering of any
service) with any Affiliate of the Company (an "Affiliate Transaction") unless:

                  (1)      the terms of such Affiliate Transaction are no less
                           favorable to the Company or such Restricted
                           Subsidiary, as the case may be, than those that
                           could be obtained by the Company or the relevant
                           Restricted Subsidiary in a comparable transaction at
                           the time of such transaction in arm's-length
                           dealings with a Person who is not such an Affiliate;

                  (2)      in the event such Affiliate Transaction involves
                           aggregate consideration in excess of $10.0 million,
                           the terms of such transaction have been approved by
                           a majority of the members of the Board of Directors
                           having no personal stake in such transaction, if any
                           (and such majority or majorities, as the case may
                           be, determines that such Affiliate Transaction
                           satisfies the criteria in clause (1) above); and

                  (3)      in the event such Affiliate Transaction involves
                           aggregate consideration in excess of $25.0 million,
                           the Company has received a written opinion from an
                           accounting, appraisal, financial advisory or
                           investment banking firm of nationally recognized
                           standing that such Affiliate Transaction is not
                           materially less favorable than those that might
                           reasonably have been obtained in a comparable
                           transaction at such time on an arm's length basis
                           from a Person that is not an Affiliate.

<PAGE>
                                                                             68

                  The preceding paragraph will not apply to:

                  (1)      any Restricted Payment (other than a Restricted
                           Investment) permitted to be made pursuant to this
                           Indenture;

                  (2)      any issuance of securities, or other payments,
                           awards or grants in cash, securities or otherwise
                           pursuant to, or the funding of, employment
                           arrangements, stock options and stock ownership
                           plans and other reasonable fees, compensation,
                           benefits and indemnities paid or entered into by the
                           Company or its Restricted Subsidiaries in the
                           ordinary course of business or approved by a
                           majority of the disinterested members of the Board
                           of Directors of the Company, or indemnification
                           pursuant to the Company's or a Restricted
                           Subsidiary's charter or by-laws or applicable
                           corporate law, to or with officers, directors or
                           employees of the Company and its Restricted
                           Subsidiaries;

                  (3)      loans or advances to employees of the Company or any
                           of its Restricted Subsidiaries in the ordinary
                           course of business or approved by a majority of the
                           disinterested members of the Board of Directors of
                           the Company;

                  (4)      any transaction between the Company and a Restricted
                           Subsidiary (other than a Receivables Entity) or
                           between Restricted Subsidiaries (other than a
                           Receivables Entity);

                  (5)      the payment of reasonable and customary fees paid
                           to, and indemnity provided on behalf of, officers,
                           directors or employees of the Company or any
                           Restricted Subsidiary of the Company, or the payment
                           of any director's and officer's insurance premiums;

                  (6)      the performance of obligations of the Company or any
                           of its Restricted Subsidiaries under the terms of
                           any agreement or arrangement in existence on the
                           Issue Date to which the Company or any of its
                           Restricted Subsidiaries is a party on the Issue Date
                           and identified on Schedule 3.8 hereto on the Issue
                           Date, as these agreements may be amended, modified
                           or supplemented from time to time; provided,
                           however, that any future amendment, modification or
                           supplement entered into after the Issue Date will be
                           permitted to the extent that its terms are not
                           materially less favorable to the Company or its
                           Restricted Subsidiaries than the terms of the
                           agreements or arrangements in effect on the Issue
                           Date;

                  (7)      sales or other transfers or dispositions of accounts
                           receivable and other related assets customarily
                           transferred in an asset securitization transaction
                           involving accounts receivable to a Receivables
                           Entity in a Qualified Receivables Transaction, and
                           acquisitions of Permitted Investments in connection
                           with a Qualified Receivables Transaction;

<PAGE>
                                                                             69

                  (8)      any merger between or among the Company or any of
                           its Restricted Subsidiaries for the purpose of
                           reincorporating the Company or the Restricted
                           Subsidiary;

                  (9)      sales or purchases of products or materials or the
                           rendering of services in the ordinary course of
                           business and on terms at least as favorable as might
                           have reasonably been obtained from an unaffiliated
                           party;

                  (10)     the granting or performance of registration rights
                           under a written agreement and approved by the Board
                           of Directors of the Company, or a Restricted
                           Subsidiary, as the case may be, containing customary
                           terms, taken as a whole; and

                  (11)     any agreement to do any of the foregoing.

                  SECTION 3.9.      Change of Control. If a Change of Control
occurs, each registered Holder of Securities will have the right to require the
Company to repurchase all or any part (equal to $1,000 or an integral multiple
thereof) of such Holder's Securities at a purchase price in cash equal to 101%
of the principal amount of the Securities plus accrued and unpaid interest, if
any, to the date of purchase (subject to the right of Holders of record on the
relevant record date to receive interest due on the relevant interest payment
date); provided, however, that notwithstanding the foregoing, the Company shall
not be obligated to repurchase the Securities pursuant to this Section 3.9 if
the Company has exercised its right to redeem all of the Securities pursuant to
the terms of Section 5.1.

                  Within 30 days following any Change of Control, the Company
will mail a notice (the "Change of Control Offer") to each registered Holder
with a copy to the Trustee stating:

                  (1)      that a Change of Control has occurred and that such
                           Holder has the right to require the Company to
                           purchase such Holder's Securities at a purchase
                           price in cash equal to 101% of the principal amount
                           of such Securities plus accrued and unpaid interest,
                           if any, to the date of purchase (subject to the
                           right of Holders of record on a record date to
                           receive interest on the relevant interest payment
                           date) (the "Change of Control Payment");

                  (2)      the repurchase date (which shall be no earlier than
                           30 days nor later than 60 days from the date such
                           notice is mailed) (the "Change of Control Payment
                           Date"); and

                  (3)      the procedures and instructions determined by the
                           Company, consistent with this Indenture, that a
                           Holder must follow in order to have its Securities
                           repurchased.

<PAGE>
                                                                             70

                  On the Change of Control Payment Date, the Company will, to
the extent lawful:

                  (1)      accept for payment all Securities or portions of
                           Securities (in integral multiples of $1,000)
                           properly tendered pursuant to the Change of Control
                           Offer;

                  (2)      deposit with the Paying Agent an amount equal to the
                           Change of Control Payment in respect of all
                           Securities or portions of Securities so tendered;
                           and

                  (3)      deliver or cause to be delivered to the Trustee the
                           Securities so accepted together with an Officers'
                           Certificate stating the aggregate principal amount
                           of Securities or portions of Securities being
                           purchased by the Company.

                  The Paying Agent will promptly mail to each Holder of
Securities so tendered the Change of Control Payment for such Securities, and
the Trustee will promptly authenticate and mail (or cause to be transferred by
book entry) to each Holder a new Security equal in principal amount to any
unpurchased portion of the Securities surrendered, if any; provided that each
such new Security will be in a principal amount of $1,000 or an integral
multiple of $1,000.

                  If the Change of Control Payment Date is on or after an
interest record date and on or before the related interest payment date, any
accrued and unpaid interest, if any, will be paid to the Person in whose name a
Note is registered at the close of business on such record date, and no
additional interest will be payable to Holders who tender pursuant to the
Change of Control Offer.

                  Prior to mailing a Change of Control Offer, and as a
condition to such mailing, the Company shall (i) obtain the requisite consent
of holders of each issue of Indebtedness issued under an indenture or other
agreement that may be violated by the payment of the Change of Control Offer
and obtain waivers to any event of default, caused by the Change of Control or
(ii) the Company will repay all outstanding Indebtedness issued under an
indenture or other agreement that may be violated by a payment to the Holders
of Securities under a Change of Control Offer or the Company must offer to
repay all such Indebtedness, and make payment to the holders of such
Indebtedness that accept such offer and obtain waivers of any event of default
from the remaining holders of such Indebtedness. The Company covenants to
effect such repayment or obtain such consent and waiver within 30 days
following any Change of Control, it being a Default of this Section 3.9 if the
Company fails to comply with such covenant.

                  The Company will not be required to make a Change of Control
Offer upon a Change of Control if a third party makes the Change of Control
Offer in the manner, at the times and otherwise in compliance with the
requirements set forth in this Indenture applicable to a Change of Control
Offer made by the Company and purchases all Securities validly tendered and not
withdrawn under such Change of Control Offer.

                  The Company will comply, to the extent applicable, with the
requirements of Section 14(e) of the Exchange Act and any other securities laws
or regulations in connection with the repurchase of Securities pursuant to this
Section 3.9. To the extent that the provisions of

<PAGE>
                                                                             71

any securities laws or regulations conflict with provisions of this Indenture,
the Company will comply with the applicable securities laws and regulations and
will not be deemed to have breached its obligations described in this Indenture
by virtue of the conflict.

                  SECTION 3.10.     Limitation on Sale of Capital Stock of
Restricted Subsidiaries. The Company will not, and will not permit any
Restricted Subsidiary of the Company to, transfer, convey, sell, lease or
otherwise dispose of any Voting Stock of any Restricted Subsidiary or to issue
any of the Voting Stock of a Restricted Subsidiary (other than, if necessary,
shares of its Voting Stock constituting directors' qualifying shares) to any
Person except:

                  (1)      to the Company or a Wholly-Owned Subsidiary (other
                           than a Receivables Entity); or

                  (2)      in compliance with Section 3.7 and immediately after
                           giving effect to such issuance or sale, such
                           Restricted Subsidiary would continue to be a
                           Restricted Subsidiary.

                  Notwithstanding the preceding paragraph, the Company may sell
all the Voting Stock of a Restricted Subsidiary as long as the Company complies
with the terms of Section 3.7.

                  SECTION 3.11.     Limitation on Sale/Leaseback Transactions.
The Company will not, and will not permit any of its Restricted Subsidiaries
to, enter into any Sale/Leaseback Transaction unless:

                  (1)      the Company or such Restricted Subsidiary, as the
                           case may be, receives consideration at the time of
                           such Sale/Leaseback Transaction at least equal to
                           the fair market value (as evidenced by a resolution
                           of the Board of Directors of the Company) of the
                           property subject to such transaction;

                  (2)      the Company or such Restricted Subsidiary could have
                           Incurred Indebtedness in an amount equal to the
                           Attributable Indebtedness in respect of such
                           Sale/Leaseback Transaction pursuant to Section 3.3;

                  (3)      the Company or such Restricted Subsidiary would be
                           permitted to create a Lien on the property subject
                           to such Sale/Leaseback Transaction without securing
                           the Securities by Section 3.5; and

                  (4)      the Sale/Leaseback Transaction is treated as an
                           Asset Disposition and all of the conditions of this
                           Indenture described under Section 3.7 (including the
                           provisions concerning the application of Net
                           Available Cash) are satisfied with respect to such
                           Sale/Leaseback Transaction.

                  Notwithstanding the foregoing, the foregoing subparagraphs
(1) - (4) shall not apply to the Excluded Sale/Leasebacks.

<PAGE>
                                                                             72

                  SECTION 3.12.     Future Subsidiary Guarantors. After the
Issue Date, if any Restricted Subsidiary of the Company whether existing on the
Issue Date or thereafter formed or acquired becomes an obligor under or
guarantor of the Senior Credit Agreement and such Restricted Subsidiary is not
at that time a Subsidiary Guarantor, then the Company will cause such
Restricted Subsidiary to execute and deliver to the Trustee a Subsidiary
Guarantee pursuant to which such Subsidiary Guarantor will unconditionally
Guarantee, on a joint and several basis, the full and prompt payment of the
principal of, premium, if any, and interest on the Securities on a senior
unsecured basis, and each Restricted Subsidiary shall comply with the foregoing
notwithstanding any prior release of such Restricted Subsidiary from a
Subsidiary Guarantee in accordance with the terms of this Indenture.

                  SECTION 3.13.     Limitation on Lines of Business. The
Company will not, and will not permit any Restricted Subsidiary to, engage in
any business other than a Related Business.

                  SECTION 3.14.     Effectiveness of Covenants. The covenants
described under Sections 3.2, 3.3, 3.4, 3.6, 3.7, 3.8, 3.10, 3.12 and 3.13 (the
"Suspended Covenants") will no longer be in effect upon the Company attaining
Investment Grade Status. Notwithstanding the foregoing, if at any time the
Company's credit rating is downgraded from Investment Grade Status, the
Suspended Covenants shall be reinstated in full force and effect to the same
extent as though the Company had never attained Investment Grade Status.

                  SECTION 3.15.     Maintenance of Office or Agency. The
Company will maintain in The City of New York, an office or agency where the
Securities may be presented or surrendered for payment, where, if applicable,
the Securities may be surrendered for registration of transfer or exchange and
where notices and demands to or upon the Company in respect of the Securities
and this Indenture may be served. The principal corporate trust office of the
Trustee, or if the Trustee's principal corporate trust office is not located in
The City of New York, any other office or agency maintained by the Trustee in
The City of New York (the "Corporate Trust Office"), shall be such office or
agency of the Company, unless the Company shall designate and maintain some
other office or agency for one or more of such purposes. The Company will give
prompt written notice to the Trustee of any change in the location of any such
office or agency. If at any time the Company shall fail to maintain any such
required office or agency or shall fail to furnish the Trustee with the address
thereof, such presentations, surrenders, notices and demands may be made or
served at the Corporate Trust Office of the Trustee, and the Company hereby
appoints the Trustee as its agent to receive all such presentations,
surrenders, notices and demands.

                  The Company may also from time to time designate one or more
other offices or agencies (in or outside of The City of New York) where the
Securities may be presented or surrendered for any or all such purposes and may
from time to time rescind any such designation; provided, however, that no such
designation or rescission shall in any manner relieve the Company of its
obligation to maintain an office or agency in The City of New York for such
purposes. The Company will give prompt written notice to the Trustee of any
such designation or rescission and any change in the location of any such other
office or agency.

<PAGE>
                                                                             73

                  SECTION 3.16.     Corporate Existence. Subject to Article IV
and Section 10.2, the Company will do or cause to be done all things necessary
to preserve and keep in full force and effect its corporate existence and that
of each Restricted Subsidiary and the corporate rights (charter and statutory)
licenses and franchises of the Company and each Restricted Subsidiary;
provided, however, that the Company shall not be required to preserve any such
existence (except the Company), right, license or franchise if the Board of
Directors of the Company shall determine that the preservation thereof is no
longer desirable in the conduct of the business of the Company and each of its
Restricted Subsidiaries, taken as a whole, and that the loss thereof would not
have a material adverse effect on the ability of the Company to perform its
obligations under the Securities or this Indenture, provided, further, the
Company may merge in accordance with Sections 4.1 and 10.2, and provided,
further, that each of Russell Athletic, Inc., a Georgia corporation, and
Russell Athletic West, Inc., a Nevada corporation, may be dissolved,
liquidated, wound up or merged into the Company or a Guarantor pursuant to the
applicable provisions of the laws of such corporation's state of incorporation,
at which time, all of the assets of such corporation, net of any fees and
expenses associated with such dissolution, liquidation, winding up or merger,
will be distributed to the Company or to a Guarantor.

                  SECTION 3.17.     Payment of Taxes and Other Claims. The
Company will pay or discharge or cause to be paid or discharged, before the
same shall become delinquent, (i) all material taxes, assessments and
governmental charges levied or imposed upon the Company or any Subsidiary or
upon the income, profits or property of the Company or any Subsidiary and (ii)
all lawful claims for labor, materials and supplies, which, if unpaid, might by
law become a material liability or lien upon the property of the Company or any
Restricted Subsidiary, except for any Lien permitted to be incurred pursuant to
subsections (3) and (4) of the definition of "Permitted Liens"; provided,
however, that the Company shall not be required to pay or discharge or cause to
be paid or discharged any such tax, assessment, charge or claim whose amount,
applicability or validity is being contested in good faith by appropriate
proceedings and for which appropriate reserves, if necessary (in the good faith
judgment of management of the Company), are being maintained in accordance with
GAAP or where the failure to pay or discharge the same would not have a
material adverse effect on the ability of the Company to perform its
obligations under the Securities or this Indenture.

                  SECTION 3.18.     Payments for Consent. Neither the Company
nor any of its Restricted Subsidiaries will, directly or indirectly, pay or
cause to be paid any consideration, whether by way of interest, fees or
otherwise, to any Holder of any Securities for or as an inducement to any
consent, waiver or amendment of any of the terms or provisions of this
Indenture or the Securities unless such consideration is offered to be paid or
is paid to all Holders of the Securities that consent, waive or agree to amend
in the time frame set forth in the solicitation documents relating to such
consent, waiver or amendment.

                  SECTION 3.19.     Compliance Certificate. The Company shall
deliver to the Trustee within 120 days after the end of each Fiscal Year of the
Company an Officers' Certificate stating that in the course of the performance
by the signers of their duties as Officers of the Company they would normally
have knowledge of any Default or Event of Default and whether or not the
signers know of any Default or Event of Default that occurred during such
period. If they do, the certificate shall describe the Default or Event of
Default, its status and

<PAGE>
                                                                             74

what action the Company is taking or proposes to take with respect thereto. The
Company also shall comply with TIA ss. 314(a)(4).

                  SECTION 3.20.     Further Instruments and Acts. Upon the
reasonable request of the Trustee, the Company will execute and deliver such
further instruments and do such further acts as may be reasonably necessary or
proper to carry out more effectively the purpose of this Indenture.

                  SECTION 3.21.     Statement by Officers as to Default. The
Company shall deliver to the Trustee, as soon as possible and in any event
within fifteen days after the Company becomes aware of the occurrence of any
Event of Default or an event which, with notice or the lapse of time or both,
would constitute an Event of Default, an Officers' Certificate setting forth
the details of such Event of Default or default and the action which the
Company proposes to take with respect thereto.

                                  ARTICLE IV

                               Successor Company

                  SECTION 4.1.      Merger and Consolidation. The Company will
not consolidate with or merge with or into, or convey, transfer or lease all or
substantially all its assets to, any Person, unless:

                  (1)      the resulting, surviving or transferee Person (the
                           "Successor Company") will be a corporation,
                           partnership, trust or limited liability company
                           organized and existing under the laws of the United
                           States of America, any State of the United States or
                           the District of Columbia and the Successor Company
                           (if not the Company) will expressly assume, by
                           supplemental indenture, executed and delivered to
                           the Trustee, in form reasonably satisfactory to the
                           Trustee, all the obligations of the Company under
                           the Securities and this Indenture;

                  (2)      immediately after giving effect to such transaction
                           (and treating any Indebtedness that becomes an
                           obligation of the Successor Company or any
                           Subsidiary of the Successor Company as a result of
                           such transaction as having been Incurred by the
                           Successor Company or such Subsidiary at the time of
                           such transaction), no Default or Event of Default
                           shall have occurred and be continuing;

                  (3)      immediately after giving effect to such transaction,
                           the Successor Company would be able to Incur at
                           least an additional $1.00 of Indebtedness pursuant
                           to the first paragraph of Section 3.3;

                  (4)      each Subsidiary Guarantor (unless it is the other
                           party to the transactions above, in which case
                           clause (1) shall apply) shall have by supplemental
                           indenture confirmed that its Subsidiary Guarantee
                           shall apply to such

<PAGE>
                                                                             75

                           Person's obligations in respect of this Indenture
                           and the Securities and its obligations under the
                           Registration Rights Agreement shall continue to be
                           in effect; and

                  (5)      the Company shall have delivered to the Trustee an
                           Officers' Certificate and an Opinion of Counsel,
                           each stating that such consolidation, merger or
                           transfer and such supplemental indenture (if any)
                           comply with this Indenture.

                  For purposes of this Section 4.1, the sale, lease,
conveyance, assignment, transfer, or other disposition of all or substantially
all of the properties and assets of one or more Subsidiaries of the Company,
which properties and assets, if held by the Company instead of such
Subsidiaries, would constitute all or substantially all of the properties and
assets of the Company on a consolidated basis, shall be deemed to be the
transfer of all or substantially all of the properties and assets of the
Company.

                  The Successor Company will succeed to, and be substituted
for, and may exercise every right and power of, the Company under this
Indenture, but, in the case of a lease of all or substantially all its assets,
the Company will not be released from the obligation to pay the principal of
and interest on the Securities.

                  Notwithstanding the preceding clause (3), (x) any Restricted
Subsidiary of the Company may consolidate with, merge into or transfer all or
part of its properties and assets to the Company and (y) the Company may merge
with an Affiliate incorporated solely for the purpose of reincorporating the
Company in another jurisdiction to realize tax benefits or to reincorporate in
Delaware.

                                   ARTICLE V

                            Redemption of Securities

                  SECTION 5.1.      Optional Redemption. The Securities may be
redeemed, as a whole or from time to time in part, subject to the conditions
and at the redemption prices specified in the form of Securities set forth in
Exhibits A and B hereto, which are hereby incorporated by reference and made a
part of this Indenture, together with accrued and unpaid interest to the
Redemption Date.

                  SECTION 5.2.      Applicability of Article. Redemption of
Securities at the election of the Company or otherwise, as permitted or
required by any provision of this Indenture, shall be made in accordance with
such provision and this Article.

                  SECTION 5.3.      Election to Redeem; Notice to Trustee. The
election of the Company to redeem any Securities pursuant to Section 5.1 shall
be evidenced by a Board Resolution. In case of any redemption at the election
of the Company, the Company shall, upon not later than the earlier of the date
that is 45 days prior to the Redemption Date fixed by the Company or the date
on which notice is given to the Holders (except as provided in Section 5.5

<PAGE>
                                                                             76

or unless a shorter notice shall be satisfactory to the Trustee), notify the
Trustee of such Redemption Date and of the principal amount of Securities to be
redeemed and shall deliver to the Trustee such documentation and records as
shall enable the Trustee to select the Securities to be redeemed pursuant to
Section 5.4.

                  SECTION 5.4.      Selection by Trustee of Securities to Be
Redeemed. If less than all the Securities are to be redeemed at any time
pursuant to an optional redemption, the particular Securities to be redeemed
shall be selected not more than 60 days prior to the Redemption Date by the
Trustee, from the outstanding Securities not previously called for redemption,
in compliance with the requirements of the principal securities exchange, if
any, on which such Securities are listed, or, if such Securities are not so
listed, on a pro rata basis, by lot or by such other method as the Trustee
shall deem fair and appropriate (and in such manner as complies with applicable
legal requirements) and which may provide for the selection for redemption of
portions of the principal of the Securities; provided, however, that no such
partial redemption shall reduce the portion of the principal amount of a
Security not redeemed to less than $1,000.

                  The Trustee shall promptly notify the Company in writing of
the Securities selected for redemption and, in the case of any Securities
selected for partial redemption, the principal amount thereof to be redeemed.

                  For all purposes of this Indenture, unless the context
otherwise requires, all provisions relating to redemption of Securities shall
relate, in the case of any Security redeemed or to be redeemed only in part, to
the portion of the principal amount of such Security which has been or is to be
redeemed.

                  SECTION 5.5.      Notice of Redemption. Notice of redemption
shall be given in the manner provided for in Section 11.2 not less than 30 nor
more than 60 days prior to the Redemption Date, to each Holder of Securities to
be redeemed. The Trustee shall give notice of redemption in the Company's name
and at the Company's expense; provided, however, that the Company shall deliver
to the Trustee, at least 45 days prior to the Redemption Date, an Officers'
Certificate requesting that the Trustee give such notice at the Company's
expense and setting forth the information to be stated in such notice as
provided in the following items.

                  All notices of redemption shall state:

                  (1)      the Redemption Date,

                  (2)      the redemption price and the amount of accrued
                           interest to the Redemption Date payable as provided
                           in Section 5.7, if any,

                  (3)      if less than all outstanding Securities are to be
                           redeemed, the identification of the particular
                           Securities (or portion thereof) to be redeemed, as
                           well as the aggregate principal amount of Securities
                           to be redeemed and the aggregate principal amount of
                           Securities to be outstanding after such partial
                           redemption,

<PAGE>
                                                                             77

                  (4)      in case any Security is to be redeemed in part only,
                           the notice which relates to such Security shall
                           state that on and after the Redemption Date, upon
                           surrender of such Security, the Holder will receive,
                           without charge, a new Security or Securities of
                           authorized denominations for the principal amount
                           thereof remaining unredeemed,

                  (5)      that on the Redemption Date the redemption price
                           (and accrued interest, if any, to the Redemption
                           Date payable as provided in Section 5.7) will become
                           due and payable upon each such Security, or the
                           portion thereof, to be redeemed, and, unless the
                           Company defaults in making the redemption payment,
                           that interest on Securities called for redemption
                           (or the portion thereof) will cease to accrue on and
                           after said date,

                  (6)      the place or places where such Securities are to be
                           surrendered for payment of the Redemption Price and
                           accrued interest, if any,

                  (7)      the name and address of the Paying Agent,

                  (8)      that Securities called for redemption must be
                           surrendered to the Paying Agent to collect the
                           Redemption Price,

                  (9)      the CUSIP number, and that no representation is made
                           as to the accuracy or correctness of the CUSIP
                           number, if any, listed in such notice or printed on
                           the Securities, and

                  (10)     the paragraph of the Securities pursuant to which
                           the Securities are to be redeemed.

                  SECTION 5.6.      Deposit of Redemption Price. Prior to any
Redemption Date, the Company shall deposit with the Trustee or with a Paying
Agent (or, if the Company is acting as its own Paying Agent, segregate and hold
in trust as provided in Section 2.4) an amount of money sufficient to pay the
redemption price of, and accrued interest on, all the Securities which are to
be redeemed on that date.

                  SECTION 5.7.      Securities Payable on Redemption Date.
Notice of redemption having been given as aforesaid, the Securities so to be
redeemed shall, on the Redemption Date, become due and payable at the
redemption price therein specified (together with accrued interest, if any, to
the Redemption Date), and from and after such date (unless the Company shall
default in the payment of the Redemption Price and accrued interest) such
Securities shall cease to bear interest. Upon surrender of any such Security
for redemption in accordance with said notice, such Security shall be paid by
the Company at the redemption price, together with accrued interest, if any, to
the Redemption Date (subject to the rights of Holders of record on the relevant
record date to receive interest due on the relevant interest payment date).

                  If any Security called for redemption shall not be so paid
upon surrender thereof for redemption, the principal (and premium, if any)
shall, until paid, bear interest from the Redemption Date at the rate borne by
the Securities.

<PAGE>
                                                                             78

                  SECTION 5.8.      Securities Redeemed in Part. Any Security
which is to be redeemed only in part (pursuant to the provisions of this
Article) shall be surrendered at the office or agency of the Company maintained
for such purpose pursuant to Section 3.15 (with, if the Company or the Trustee
so requires, due endorsement by, or a written instrument of transfer in form
satisfactory to the Company and the Trustee duly executed by, the Holder
thereof or such Holder's attorney duly authorized in writing), and the Company
shall execute, and the Trustee shall authenticate and make available for
delivery to the Holder of such Security at the expense of the Company, a new
Security or Securities, of any authorized denomination as requested by such
Holder, in an aggregate principal amount equal to and in exchange for the
unredeemed portion of the principal of the Security so surrendered, provided,
that each such new Security will be in a principal amount of $1,000 or integral
multiple thereof.

                                  ARTICLE VI

                             Defaults and Remedies

                  SECTION 6.1.      Events of Default. Each of the following is
an "Event of Default":

                  (1)      default in any payment of interest or additional
                           interest (as required by the Registration Rights
                           Agreement) on any Security when due, continued for
                           30 days;

                  (2)      default in the payment of principal of or premium,
                           if any, on any Security when due at its Stated
                           Maturity, upon optional redemption, upon required
                           repurchase, upon declaration or otherwise;

                  (3)      failure by the Company or any Subsidiary Guarantor
                           to comply with its obligations under Article IV or
                           Section 10.2;

                  (4)      failure by the Company to comply for 30 days after
                           notice with any of its obligations under Sections
                           3.2, 3.3, 3.4, 3.5, 3.6, 3.7, 3.8, 3.9, 3.10, 3.11,
                           3.12, 3.13, 3.15, 3.16, 3.17 and 3.18 (in each case,
                           other than a failure to purchase Securities, which
                           will constitute an Event of Default under clause (2)
                           above);

                  (5)      failure by the Company to comply for 60 days after
                           notice with its other agreements contained in this
                           Indenture;

                  (6)      default under any mortgage, indenture or instrument
                           under which there may be issued or by which there
                           may be secured or evidenced any Indebtedness for
                           money borrowed by the Company or any of its
                           Restricted Subsidiaries (or the payment of which is
                           guaranteed by the Company or any of its Restricted
                           Subsidiaries), other than Indebtedness owed to the
                           Company or a Restricted Subsidiary, whether such
                           Indebtedness or

<PAGE>
                                                                             79

                           guarantee now exists, or is created after the date
                           of this Indenture, which default:

                           (a)      is caused by a failure to pay principal of,
                                    or interest or premium, if any, on such
                                    Indebtedness prior to the expiration of the
                                    grace period provided in such Indebtedness
                                    ("payment default"); or

                           (b)      results in the acceleration of such
                                    Indebtedness prior to its maturity (the
                                    "cross acceleration provision");

                           and, in each case, the principal amount of any such
                           Indebtedness, together with the principal amount of
                           any other such Indebtedness under which there has
                           been a payment default or the maturity of which has
                           been so accelerated, aggregates $25.0 million or
                           more;

                  (7)      (a) the Company or Significant Subsidiary (other
                           than any Receivables Entity) or a group of
                           Restricted Subsidiaries (other than Receivables
                           Entities) that, taken together (as of the latest
                           audited consolidated financial statements for the
                           Company and its Restricted Subsidiaries), would
                           constitute a Significant Subsidiary pursuant to or
                           within the meaning of any Bankruptcy Law:

                                    (i)      commences a voluntary case or
                                             proceeding;

                                    (ii)     consents to the entry of judgment,
                                             decree or order for relief against
                                             it in an involuntary case or
                                             proceeding;

                                    (iii)    consents to the appointment of a
                                             Custodian of it or for any
                                             substantial part of its property;

                                    (iv)     makes a general assignment for the
                                             benefit of its creditors;

                                    (v)      consents to or acquiesces in the
                                             institution of a bankruptcy or an
                                             insolvency proceeding against it;
                                             or

                                    (vi)     takes any corporate action to
                                             authorize or effect any of the
                                             foregoing;

                           or takes any comparable action under any foreign
                           laws relating to insolvency; or

                           (b) a court of competent jurisdiction enters an order
                           or decree under any Bankruptcy Law that:

<PAGE>
                                                                             80

                                    (i)      is for relief against the Company
                                             or any Significant Subsidiary
                                             (other than any Receivables
                                             Entity) or a group of Restricted
                                             Subsidiaries (other than
                                             Receivables Entities) that, taken
                                             together (as of the latest audited
                                             consolidated financial statements
                                             for the Company and its Restricted
                                             Subsidiaries), would constitute a
                                             Significant Subsidiary in an
                                             involuntary case;

                                    (ii)     appoints a Custodian of the
                                             Company or any Significant
                                             Subsidiary (other than any
                                             Receivables Entity) or a group of
                                             Restricted Subsidiaries (other
                                             than Receivables Entities) that,
                                             taken together (as of the latest
                                             audited consolidated financial
                                             statements for the Company and its
                                             Restricted Subsidiaries), would
                                             constitute a Significant
                                             Subsidiary or for any substantial
                                             part of its property; or

                                    (iii)    orders the winding up or
                                             liquidation of the Company or any
                                             Significant Subsidiary (other than
                                             any Receivables Entity) or a group
                                             of Restricted Subsidiaries (other
                                             than Receivables Entities) that,
                                             taken together (as of the latest
                                             audited consolidated financial
                                             statements for the Company and its
                                             Restricted Subsidiaries) would
                                             constitute a Significant
                                             Subsidiary;

                           or any similar relief is granted under any foreign
                           laws and the order, decree or relief remains
                           unstayed and in effect for 60 days;

                  (8)      failure by the Company or any Significant Subsidiary
                           or group of Restricted Subsidiaries that, taken
                           together (as of the latest audited consolidated
                           financial statements for the Company and its
                           Restricted Subsidiaries), would constitute a
                           Significant Subsidiary to pay final judgments
                           aggregating in excess of $25.0 million (net of any
                           amounts that a reputable and creditworthy insurance
                           company has acknowledged liability for in writing),
                           which judgments are not paid, bonded, discharged or
                           stayed for a period of 60 days (the "judgment
                           default provision"); or

                  (9)      any Subsidiary Guarantee of a Significant Subsidiary
                           or group of Restricted Subsidiaries that taken
                           together as of the latest audited consolidated
                           financial statements for the Company and its
                           Restricted Subsidiaries would constitute a
                           Significant Subsidiary ceases to be in full force
                           and effect (except as contemplated by the terms of
                           this Indenture) or is declared null and void in a
                           judicial proceeding or any Subsidiary Guarantor that
                           is a Significant Subsidiary or group of Subsidiary
                           Guarantors that taken together as of the latest
                           audited consolidated

<PAGE>
                                                                             81

                           financial statements for the Company and its
                           Restricted Subsidiaries would constitute a
                           Significant Subsidiary denies or disaffirms its
                           obligations under this Indenture or its Subsidiary
                           Guarantee.

                  However, a Default under clauses (4) and (5) of this Section
6.1 will not constitute an Event of Default until the Trustee or the Holders of
25% in principal amount of the outstanding Securities notify the Company of the
Default and the Company does not cure such Default within the time specified in
clauses (4) and (5) of this Section 6.1 after receipt of such notice.

                  SECTION 6.2.      Acceleration. If an Event of Default (other
than an Event of Default described in clause (7) of Section 6.1) occurs and is
continuing, the Trustee by notice to the Company, or the Holders of at least
25% in principal amount of the outstanding Securities by notice to the Company
and the Trustee, may, and the Trustee at the request of such Holders shall,
declare the principal of, premium, if any, and accrued and unpaid interest, if
any, on all the Securities to be due and payable. Upon such a declaration, such
principal, premium and accrued and unpaid interest will be due and payable
immediately. In the event of a declaration of acceleration of the Securities
because an Event of Default described in clause (6) of Section 6.1 has occurred
and is continuing, the declaration of acceleration of the Securities shall be
automatically annulled if the event of default or payment default triggering
such Event of Default pursuant to clause (6) of Section 6.1 shall be remedied
or cured by the Company or a Restricted Subsidiary of the Company or waived by
the holders of the relevant Indebtedness within 20 days after the declaration
of acceleration with respect thereto and if (1) the annulment of the
acceleration of the Securities would not conflict with any judgment or decree
of a court of competent jurisdiction and (2) all existing Events of Default,
except nonpayment of principal, premium or interest on the Securities that
became due solely because of the acceleration of the Securities, have been
cured or waived. If an Event of Default described in clause (7) of Section 6.1
above occurs and is continuing, the principal of, premium, if any, and accrued
and unpaid interest on all the Securities will become and be immediately due
and payable without any declaration or other act on the part of the Trustee or
any Holders. The Holders of a majority in principal amount of the outstanding
Securities may waive any or all past defaults (except with respect to
nonpayment of principal, premium or interest) and rescind any such acceleration
with respect to the Securities and its consequences if rescission would not
conflict with any judgment or decree of a court of competent jurisdiction.

                  SECTION 6.3.      Other Remedies. If an Event of Default
occurs and is continuing, the Trustee may pursue any available remedy to
collect the payment of principal of (or premium, if any) or interest on the
Securities or to enforce the performance of any provision of the Securities or
this Indenture.

                  The Trustee may maintain a proceeding even if it does not
possess any of the Securities or does not produce any of them in the
proceeding. A delay or omission by the Trustee or any Securityholder in
exercising any right or remedy accruing upon an Event of Default shall not
impair the right or remedy or constitute a waiver of or acquiescence in the
Event of Default. No remedy is exclusive of any other remedy. All available
remedies are cumulative.

<PAGE>
                                                                             82

                  SECTION 6.4.      Waiver of Past Defaults. The Holders of a
majority in principal amount of the outstanding Securities by notice to the
Trustee may (a) waive, by their consent (including, without limitation consents
obtained in connection with a purchase of, or tender offer or exchange offer
for, Securities), an existing Default or Event of Default and its consequences
except (i) a Default or Event of Default in the payment of the principal of, or
premium, if any, or interest on a Security or (ii) a Default or Event of
Default in respect of a provision that under Section 9.2 cannot be amended
without the consent of each Securityholder affected and (b) rescind any such
acceleration with respect to the Securities and its consequences if rescission
would not conflict with any judgment or decree of a court of competent
jurisdiction. When a Default or Event of Default is waived, it is deemed cured,
but no such waiver shall extend to any subsequent or other Default or Event of
Default or impair any consequent right.

                  SECTION 6.5.      Control by Majority. The Holders of a
majority in principal amount of the outstanding Securities may direct the time,
method and place of conducting any proceeding for any remedy available to the
Trustee or of exercising any trust or power conferred on the Trustee. However,
the Trustee may refuse to follow any direction that conflicts with law or this
Indenture or, subject to Sections 7.1 and 7.2, that the Trustee determines is
unduly prejudicial to the rights of other Securityholders or would involve the
Trustee in personal liability; provided, however, that the Trustee may take any
other action deemed proper by the Trustee that is not inconsistent with such
direction. Prior to taking any action hereunder, the Trustee shall be entitled
to indemnification satisfactory to it in its sole discretion against all losses
and expenses caused by taking or not taking such action.

                  SECTION 6.6.      Limitation on Suits. Subject to Section
6.7, a Securityholder may not pursue any remedy with respect to this Indenture
or the Securities unless:

                  (1)      such Holder has previously given to the Trustee
                           written notice stating that an Event of Default is
                           continuing;

                  (2)      Holders of at least 25% in principal amount of the
                           outstanding Securities make requested in writing
                           that the Trustee pursue the remedy;

                  (3)      such Holders have offered to the Trustee reasonable
                           security or indemnity against any loss, liability or
                           expense;

                  (4)      the Trustee has not complied with such request
                           within 60 days after receipt of the request and the
                           offer of security or indemnity; and

                  (5)      the Holders of a majority in principal amount of the
                           outstanding Securities have not given the Trustee a
                           direction that, in the opinion of the Trustee, is
                           inconsistent with such request within such 60-day
                           period.

                  A Securityholder may not use this Indenture to prejudice the
rights of another Securityholder or to obtain a preference or priority over
another Securityholder.

                  SECTION 6.7.      Rights of Holders to Receive Payment.
Notwithstanding any other provision of this Indenture (including, without
limitation, Section 6.6), the right of any Holder to receive payment of
principal of, premium (if any) or interest on the Securities held by

<PAGE>
                                                                             83

such Holder, on or after the respective due dates expressed in the Securities,
or to bring suit for the enforcement of any such payment on or after such
respective dates, shall not be impaired or affected without the consent of such
Holder.

                  SECTION 6.8.      Collection Suit by Trustee. If an Event of
Default specified in clauses (1) or (2) of Section 6.1 occurs and is
continuing, the Trustee may recover judgment in its own name and as trustee of
an express trust against the Company for the whole amount then due and owing
(together with interest on any unpaid interest to the extent lawful) and the
amounts provided for in Section 7.7.

                  SECTION 6.9.      Trustee May File Proofs of Claim. The
Trustee may file such proofs of claim and other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee and the
Securityholders allowed in any judicial proceedings relative to the Company,
its Subsidiaries or its or their respective creditors or properties and, unless
prohibited by law or applicable regulations, may vote on behalf of the Holders
in any election of a trustee in bankruptcy or other Person performing similar
functions, and any Custodian in any such judicial proceeding is hereby
authorized by each Holder to make payments to the Trustee and, in the event
that the Trustee shall consent to the making of such payments directly to the
Holders, to pay to the Trustee any amount due it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and its counsel, and any other amounts due the Trustee under Section 7.7.

                  SECTION 6.10.     Priorities. If the Trustee collects any
money or property pursuant to this Article VI, it shall pay out the money or
property in the following order:

                  FIRST: to the Trustee for amounts due under Section 7.7;

                  SECOND: to Securityholders for amounts due and unpaid on the
         Securities for principal, premium, if any, and interest, ratably,
         without preference or priority of any kind, according to the amounts
         due and payable on the Securities for principal and interest,
         respectively; and

                  THIRD:  to the Company.

                  The Trustee may fix a record date and payment date for any
payment to Securityholders pursuant to this Section. At least 15 days before
such record date, the Company shall mail to each Securityholder and the Trustee
a notice that states the record date, the payment date and amount to be paid.

                  SECTION 6.11.     Undertaking for Costs. In any suit for the
enforcement of any right or remedy under this Indenture or in any suit against
the Trustee for any action taken or omitted by it as Trustee, a court in its
discretion may require the filing by any party litigant in the suit of an
undertaking to pay the costs of the suit, and the court in its discretion may
assess reasonable costs, including reasonable attorneys' fees, against any
party litigant in the suit, having due regard to the merits and good faith of
the claims or defenses made by the party litigant. This Section does not apply
to a suit by the Trustee, a suit by the Company, a suit by a Holder pursuant to
Section 6.7 or a suit by Holders of more than 10% in outstanding principal
amount of the Securities.

<PAGE>
                                                                             84

                  SECTION 6.12.     Additional Payments. In the case of any
Event of Default occurring by reason of any willful action (or inaction) taken
(or not taken) by or on behalf of the Company with the intention of avoiding
payment of the premium that the Company would have had to pay if the Company
then had elected to redeem the Securities pursuant to the optional redemption
provisions of this Indenture or was required to repurchase the Securities, an
equivalent premium shall also become and be immediately due and payable to the
extent permitted by law upon the acceleration of the Securities. If an Event of
Default occurs prior to

May 1, 2006 by reason of any willful action (or inaction) taken (or not taken)
by or on behalf of the Company with the intention of avoiding the prohibition
on redemption of the Securities prior to May 1, 2006, the premium specified in
this Indenture shall also become immediately due and payable to the extent
permitted by law upon the acceleration of the Securities.

                                  ARTICLE VII

                                    Trustee

                  SECTION 7.1.      Duties of Trustee. (a) If an Event of
Default has occurred and is continuing, the Trustee shall exercise the rights
and powers vested in it by this Indenture and use the same degree of care and
skill in their exercise as a prudent Person would exercise or use under the
circumstances in the conduct of such Person's own affairs; provided that if an
Event of Default occurs and is continuing, the Trustee will be under no
obligation to exercise the rights or powers under this Indenture at the request
or direction of any of the holders unless such holders have offered to the
Trustee reasonable indemnity or security against loss, liability or expense.

                  (b)      Except during the continuance of an Event of
Default:

                  (1)      the Trustee undertakes to perform such duties and
                           only such duties as are specifically set forth in
                           this Indenture and no implied covenants or
                           obligations shall be read into this Indenture
                           against the Trustee; and

                  (2)      in the absence of bad faith on its part, the Trustee
                           may conclusively rely, as to the truth of the
                           statements and the correctness of the opinions
                           expressed therein, upon certificates, opinions or
                           orders furnished to the Trustee and conforming to
                           the requirements of this Indenture. However, in the
                           case of any such certificates or opinions which by
                           any provisions hereof are specifically required to
                           be furnished to the Trustee, the Trustee shall
                           examine such certificates and opinions to determine
                           whether or not they conform on their face to the
                           requirements of this Indenture (but need not confirm
                           or investigate the accuracy of mathematical
                           calculations or other facts stated therein).

                  (c)      The Trustee may not be relieved from liability for
its own negligent action, its own negligent failure to act or its own willful
misconduct, except that:

                  (1)      this paragraph does not limit the effect of
                           paragraph (b) of this Section;

<PAGE>
                                                                             85

                  (2)      the Trustee shall not be liable for any error of
                           judgment made in good faith by a Trust Officer
                           unless it is proved that the Trustee was negligent
                           in ascertaining the pertinent facts; and

                  (3)      the Trustee shall not be liable with respect to any
                           action it takes or omits to take in good faith in
                           accordance with a direction received by it pursuant
                           to Section 6.5.

                  (d)      Every provision of this Indenture that in any way
relates to the Trustee is subject to paragraphs (a), (b) and (c) of this
Section.

                  (e)      The Trustee shall not be liable for interest on any
money received by it except as the Trustee may agree in writing with the
Company.

                  (f)      Money held in trust by the Trustee need not be
segregated from other funds except to the extent required by law.

                  (g)      No provision of this Indenture shall require the
Trustee to expend or risk its own funds or otherwise incur financial liability
in the performance of any of its duties hereunder or in the exercise of any of
its rights or powers, if it shall have reasonable grounds to believe that
repayment of such funds or adequate indemnity against such risk or liability is
not reasonably assured to it.

                  (h)      Every provision of this Indenture relating to the
conduct or affecting the liability of or affording protection to the Trustee
shall be subject to the provisions of this Section and to the provisions of the
TIA.

                  (i)      Unless otherwise specifically provided in this
Indenture, any demand, request, direction or notice from the Company shall be
sufficient if signed by an Officer of the Company.

                  (j)      The Trustee shall be under no obligation to exercise
any of the rights or powers vested in it by this Indenture at the request or
direction of any of the Holders unless such Holders shall have offered to the
Trustee reasonable security or indemnity satisfactory to it against the costs,
expenses (including reasonable attorneys' fees and expenses) and liabilities
that might be incurred by it in compliance with such request or direction.

                  SECTION 7.2.      Rights of Trustee. Subject to Section 7.1:

                  (a)      The Trustee may conclusively rely on any document
(whether in its original or facsimile form) reasonably believed by it to be
genuine and to have been signed or presented by the proper person. The Trustee
need not investigate any fact or matter stated in the document.

                  (b)      Before the Trustee acts or refrains from acting, it
may require an Officers' Certificate and/or an Opinion of Counsel. The Trustee
shall not be liable for any action it takes or omits to take in good faith in
reliance on an Officers' Certificate or Opinion of Counsel.

                  (c)      The Trustee may act through its attorneys and agents
and shall not be responsible for the misconduct or negligence of any agent
appointed with due care.

<PAGE>
                                                                             86

                  (d)      The Trustee shall not be liable for any action it
takes or omits to take in good faith which it believes to be authorized or
within its rights or powers, unless the Trustee's conduct constitutes willful
misconduct or negligence.

                  (e)      The Trustee may consult with counsel of its
selection, and the advice or opinion of counsel with respect to legal matters
relating to this Indenture and the Securities shall be full and complete
authorization and protection from liability in respect of any action taken,
omitted or suffered by it hereunder in good faith and in accordance with the
advice or opinion of such counsel.

                  SECTION 7.3.      Individual Rights of Trustee. The Trustee
in its individual or any other capacity may become the owner or pledgee of
Securities and may otherwise deal with the Company or its Affiliates with the
same rights it would have if it were not Trustee. Any Paying Agent, Registrar,
co-registrar or co-paying agent may do the same with like rights. However, the
Trustee must comply with Sections 7.10 and 7.11.

                  SECTION 7.4.      Trustee's Disclaimer. The Trustee shall not
be responsible for and makes no representation as to the validity or adequacy
of this Indenture or the Securities, it shall not be accountable for the
Company's use of the proceeds from the Securities, and it shall not be
responsible for any statement of the Company in this Indenture or in any
document issued in connection with the sale of the Securities or in the
Securities other than the Trustee's certificate of authentication.

                  SECTION 7.5.      Notice of Defaults. If a Default or Event
of Default occurs and is continuing and if a Trust Officer has actual knowledge
thereof, the Trustee shall mail to each Securityholder notice of the Default or
Event of Default within the earlier of 90 days after it occurs or 30 days after
the Trustee has knowledge of such default. Except in the case of a Default or
Event of Default in payment of principal of, premium (if any), or interest on
any Security (including payments pursuant to the optional redemption or
required repurchase provisions of such Security, if any), the Trustee may
withhold the notice if and so long a committee of its Trust Officers in good
faith determines that withholding the notice is in the interests of
Securityholders.

                  SECTION 7.6.      Reports by Trustee to Holders. As promptly
as practicable after each May 15 beginning with the May 15, following the date
of this Indenture, and in any event prior to July 15 in each year, the Trustee
shall mail to each Securityholder a brief report dated as of such May 15 that
complies with TIA ss. 313(a). The Trustee also shall comply with TIA ss.
313(b). The Trustee shall also transmit by mail all reports required by TIA ss.
313(c).

                  A copy of each report at the time of its mailing to
Securityholders shall be filed with the SEC and each stock exchange (if any) on
which the Securities are listed. The Company agrees to notify promptly the
Trustee whenever the Securities become listed on any stock exchange and of any
delisting thereof.

                  SECTION 7.7.      Compensation and Indemnity. The Company
shall pay to the Trustee from time to time reasonable compensation for its
acceptance of this Indenture and services hereunder as the Company and the
Trustee shall from time to time agree in writing. The

<PAGE>
                                                                             87

Trustee's compensation shall not be limited by any law on compensation of a
trustee of an express trust. The Company shall reimburse the Trustee upon
request for all reasonable out-of-pocket expenses incurred or made by it,
including costs of collection, costs of preparing and reviewing reports,
certificates and other documents, costs of preparation and mailing of notices
to Securityholders, in addition to the compensation for its services. Such
expenses shall include the reasonable compensation and expenses, disbursements
and advances of the Trustee's agents, counsel, accountants and experts. The
Company shall indemnify the Trustee against any and all loss, liability,
damages, claims or expense (including reasonable attorneys' fees and expenses)
incurred by it without negligence or willful misconduct on its part in
connection with the administration of this trust and the performance of its
duties hereunder, including the costs and expenses of enforcing this Indenture
(including this Section 7.7) and of defending itself against any claims
(whether asserted by any Securityholder, the Company or otherwise). The Trustee
shall notify the Company promptly of any claim for which it may seek indemnity.
Failure by the Trustee to so notify the Company shall not relieve the Company
of its obligations hereunder. The Company shall defend the claim and the
Trustee shall provide reasonable cooperation at the Company's expense in the
defense. The Trustee may have separate counsel and the Company shall pay the
fees and expenses of such counsel provided that the Company shall not be
required to pay such fees and expenses if it assumes the Trustee's defense,
and, in the reasonable judgment of outside counsel to the Trustee, there is no
conflict of interest between the Company and the Trustee in connection with
such defense. The Company shall not be under any obligation to pay for any
written settlement without its consent, which consent shall not be unreasonably
delayed, conditioned or withheld. The Company need not reimburse any expense or
indemnify against any loss, liability or expense incurred by the Trustee
through the Trustee's own willful misconduct or negligence.

                  To secure the Company's payment obligations in this Section,
the Trustee shall have a lien prior to the Securities on all money or property
held or collected by the Trustee other than money or property held in trust to
pay principal of and interest on particular Securities.

                  The Company's payment obligations pursuant to this Section
shall survive the discharge of this Indenture. When the Trustee incurs expenses
after the occurrence of a Default specified in clause (7) of Section 6.1 with
respect to the Company, the expenses are intended to constitute expenses of
administration under any Bankruptcy Law.

                  SECTION 7.8.      Replacement of Trustee. The Trustee may
resign at any time by so notifying the Company. The Holders of a majority in
principal amount of the Securities may remove the Trustee by so notifying the
Trustee and may appoint a successor Trustee. The Company shall remove the
Trustee if:

                  (1)      the Trustee fails to comply with Section 7.10;

                  (2)      the Trustee is adjudged bankrupt or insolvent;

                  (3)      a receiver or other public officer takes charge of
                           the Trustee or its property; or

                  (4)      the Trustee otherwise becomes incapable of acting.

<PAGE>
                                                                             88

                  If the Trustee resigns or is removed by the Company or by the
Holders of a majority in principal amount of the Securities and such Holders do
not reasonably promptly appoint a successor Trustee, or if a vacancy exists in
the office of the Trustee for any reason (the Trustee in such event being
referred to herein as the retiring Trustee), the Company shall promptly appoint
a successor Trustee.

                  A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company. Thereupon the
resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee
under this Indenture. The successor Trustee shall mail a notice of its
succession to Securityholders. The retiring Trustee shall promptly transfer all
property held by it as Trustee to the successor Trustee, subject to the lien
provided for in Section 7.7.

                  If a successor Trustee does not take office within 60 days
after the retiring Trustee resigns or is removed, the retiring Trustee or the
Holders of at least 10% in principal amount of the Securities may petition, at
the Company's expense, any court of competent jurisdiction for the appointment
of a successor Trustee.

                  If the Trustee fails to comply with Section 7.10, unless the
Trustee's duty to resign is stayed as provided in Section 310(b) of the TIA,
any Securityholder who has been a bona fide Holder of a Security for at least
six months may petition any court of competent jurisdiction for the removal of
the Trustee and the appointment of a successor Trustee.

                  Notwithstanding the replacement of the Trustee pursuant to
this Section, the Company's obligations under Section 7.7 shall continue for
the benefit of the retiring Trustee.

                  SECTION 7.9.      Successor Trustee by Merger. If the Trustee
consolidates with, merges or converts into, or transfers all or substantially
all its corporate trust business or assets to, another corporation or banking
association, the resulting, surviving or transferee corporation without any
further act shall be the successor Trustee.

                  In case at the time such successor or successors by merger,
conversion or consolidation to the Trustee shall succeed to the trusts created
by this Indenture, any of the Securities shall have been authenticated but not
delivered, any such successor to the Trustee may adopt the certificate of
authentication of any predecessor trustee, and deliver such Securities so
authenticated; and in case at that time any of the Securities shall not have
been authenticated, any successor to the Trustee may authenticate such
Securities either in the name of any predecessor hereunder or in the name of
the successor to the Trustee; and in all such cases such certificates shall
have the full force which it is anywhere in the Securities or in this Indenture
provided that the certificate of the Trustee shall have.

                  SECTION 7.10.     Eligibility; Disqualification. The Trustee
shall at all times satisfy the requirements of TIA ss. 310(a). The Trustee
shall have a combined capital and surplus of at least $100 million as set forth
in its most recent published annual report of condition. The Trustee shall
comply with TIA ss. 310(b); provided, however, that there shall be excluded
from the operation of TIA ss. 310(b)(1) any indenture or indentures under which
other securities or

<PAGE>
                                                                             89

certificates of interest or participation in other securities of the Company
are outstanding if the requirements for such exclusion set forth in TIA ss.
310(b)(1) are met.

                  SECTION 7.11.     Preferential Collection of Claims Against
Company. The Trustee shall comply with TIA ss. 311(a), excluding any creditor
relationship listed in TIA ss. 311(b). A Trustee who has resigned or been
removed shall be subject to TIA ss. 311(a) to the extent indicated.

                                 ARTICLE VIII

                       Discharge of Indenture; Defeasance

                  SECTION 8.1.      Discharge of Liability on Securities;
Defeasance. (a) Subject to Section 8.1(c), when (i)(x) the Company delivers to
the Trustee all outstanding Securities (other than Securities replaced pursuant
to Section 2.9) for cancellation or (y) all outstanding Securities not
theretofore delivered for cancellation have become due and payable, whether at
maturity or upon redemption or will become due and payable within one year or
are to be called for redemption within one year under arrangements satisfactory
to the Trustee for the giving of notice of redemption pursuant to Article V
hereof and the Company or any Subsidiary Guarantor irrevocably deposits or
causes to be deposited with the Trustee as trust funds in trust solely for the
benefit of the Holders money in U.S. dollars, non-callable U.S. Government
Obligations, or a combination thereof, in such amounts as will be sufficient
without consideration of any reinvestment of interest to pay and discharge the
entire indebtedness on such Securities not theretofore delivered to the Trustee
for cancellation for principal, premium, if any, and accrued interest to the
date of maturity or redemption; (ii) no Default or Event of Default shall have
occurred and be continuing on the date of such deposit or shall occur as a
result of such deposit and such deposit will not result in a breach or
violation of, or constitute a default under, any other instrument to which the
Company or any Subsidiary Guarantor is a party or by which the Company or any
Guarantor is bound; (iii) the Company or any Subsidiary Guarantor has paid or
caused to be paid all sums payable under this Indenture and the Securities; and
(iv) the Company has delivered irrevocable instructions to the Trustee under
this Indenture to apply the deposited money toward the payment of such
Securities at maturity or the Redemption Date, as the case may be, then the
Trustee shall acknowledge satisfaction and discharge of this Indenture on
demand of the Company (accompanied by an Officers' Certificate and an Opinion
of Counsel stating that all conditions precedent specified herein relating to
the satisfaction and discharge of this Indenture have been complied with) and
at the cost and expense of the Company.

                  (b)      Subject to Sections 8.1(c) and 8.2, the Company at
any time may terminate (i) all its obligations under the Securities and this
Indenture ("legal defeasance option"), and after giving effect to such legal
defeasance, any omission to comply with such obligations shall no longer
constitute a Default or Event of Default or (ii) its obligations under Sections
3.2, 3.3, 3.4, 3.5, 3.6, 3.7, 3.8, 3.9, 3.10, 3.11, 3.12, 3.13, 3.18 and 4.1(3)
and the Company may omit to comply with and shall have no liability in respect
of any term, condition or limitation set forth in any such covenant, whether
directly or indirectly, by reason of any reference elsewhere herein to any such
covenant or by reason of any reference in any such covenant to any other
provision herein or in any other document and such omission to comply with such
covenants shall no

<PAGE>
                                                                             90

longer constitute a Default or an Event of Default under Section 6.1(3), 6.1(4)
and 6.1(5) and the operation of Sections 6.1(6), 6.1(7) (but only with respect
to a Significant Subsidiary or group of Restricted Subsidiaries that would
constitute a Significant Subsidiary), 6.1(8) and 6.1(9), and the events
specified in such Sections shall no longer constitute an Event of Default
(clause (ii) being referred to as the "covenant defeasance option"), but except
as specified above, the remainder of this Indenture and the Securities shall be
unaffected thereby. The Company may exercise its legal defeasance option
notwithstanding its prior exercise of its covenant defeasance option. If the
Company exercises its covenant defeasance option, the Company may elect to have
any Subsidiary Guarantees in effect at such time terminate.

                  If the Company exercises its legal defeasance option, payment
of the Securities may not be accelerated because of an Event of Default, and
the Subsidiary Guarantees in effect at such time shall terminate. If the
Company exercises its covenant defeasance option, payment of the Securities may
not be accelerated because of an Event of Default specified in Section 6.1(4)
(as such Section relates to 3.2, 3.3, 3.4, 3.5, 3.6, 3.7, 3.8, 3.9, 3.10, 3.11,
3.12, 3.13 and 3.18), 6.1(5), 6.1(6), 6.1(7) (but only with respect to a
Significant Subsidiary or group of Restricted Subsidiaries that would
constitute a Significant Subsidiary), 6.1(8) or 6.1(9) or because of the
failure of the Company to comply with Section 4.1(3).

                  Upon satisfaction of the conditions set forth herein and upon
request of the Company, the Trustee shall acknowledge in writing the discharge
of those obligations that the Company terminates.

                  (c)      Notwithstanding the provisions of Sections 8.1(a)
and (b), the Company's obligations in Sections 2.2, 2.3, 2.4, 2.5, 2.6, 2.9,
2.10, 2.11, 3.1, 3.15, 3.16, 3.17, 3.19, 3.20, 3.21, 6.7, 7.7, 7.8 and in this
Article 8 shall survive until the Securities have been paid in full.
Thereafter, the Company's obligations in Sections 7.7, 8.4 and 8.5 shall
survive.

                  SECTION 8.2.      Conditions to Defeasance. The Company may
exercise its legal defeasance option or its covenant defeasance option only if:

                  (1)      the Company irrevocably deposits in trust with the
         Trustee for the benefit of the Holders money in U.S. dollars or U.S.
         Government Obligations or a combination thereof for the payment of
         principal, premium, if any, and interest on the Securities to maturity
         or redemption, as the case may be;

                  (2)      the Company delivers to the Trustee a certificate
         from a nationally recognized firm of independent accountants
         expressing their opinion that the payments of principal and interest
         when due and without reinvestment on the deposited U.S. Government
         Obligations plus any deposited money without investment will provide
         cash at such times and in such amounts as will be sufficient to pay
         principal and interest when due on all the Securities to maturity;

                  (3)      no Default or Event of Default shall have occurred
         and be continuing on the date of such deposit or, with respect to
         certain bankruptcy or insolvency Events of Default, on the 91st day
         after such date of deposit;

<PAGE>
                                                                             91

                  (4)      such legal defeasance or covenant defeasance shall
         not result in a breach or violation of, or constitute a Default under,
         this Indenture or any other material agreement or instrument to which
         the Company or any of its Subsidiaries is a party or by which the
         Company or any of its Subsidiaries is bound;

                  (5)      the Company shall have delivered to the Trustee an
         Opinion of Counsel (subject to customary assumptions and exclusions)
         to the effect that (A) the Securities and (B) assuming no intervening
         bankruptcy of the Company between the date of deposit and the 91st day
         following the deposit and that no Holder of the Securities is an
         insider of the Company, after the 91st day following the deposit, the
         trust funds will not be subject to the effect of any applicable
         bankruptcy, insolvency, reorganization or similar laws affecting
         creditors' right generally;

                  (6)      the Company delivers to the Trustee an Opinion of
         Counsel (subject to customary assumptions and exclusions) to the
         effect that the trust resulting from the deposit does not constitute,
         or is qualified as, a regulated investment company under the
         Investment Company Act of 1940;

                  (7)      in the case of the legal defeasance option, the
         Company shall have delivered to the Trustee an Opinion of Counsel
         (subject to customary assumptions and exclusions) in the United States
         stating that (i) the Company has received from, or there has been
         published by, the Internal Revenue Service a ruling, or (ii) since the
         date of this Indenture there has been a change in the applicable
         federal income tax law, in either case to the effect that, and based
         thereon such Opinion of Counsel shall confirm that, the
         Securityholders will not recognize income, gain or loss for federal
         income tax purposes as a result of such defeasance and will be subject
         to federal income tax on the same amounts, in the same manner and at
         the same times as would have been the case if such legal defeasance
         had not occurred;

                  (8)      in the case of the covenant defeasance option, the
         Company shall have delivered to the Trustee an Opinion of Counsel
         (subject to customary assumptions and exclusions) in the United States
         to the effect that the Securityholders will not recognize income, gain
         or loss for federal income tax purposes as a result of such deposit
         and covenant defeasance and will be subject to federal income tax on
         the same amount, in the same manner and at the same times as would
         have been the case if such deposit and covenant defeasance had not
         occurred; and

                  (9)      the Company delivers to the Trustee an Officers'
         Certificate and an Opinion of Counsel, each stating that all
         conditions precedent to the defeasance and discharge of the Securities
         and this Indenture as contemplated by this Article VIII have been
         complied with.

                  SECTION 8.3.      Application of Trust Money. The Trustee
shall hold in trust money or U.S. Government Obligations deposited with it
pursuant to this Article VIII. It shall apply the deposited money and the money
from U.S. Government Obligations through the Paying Agent and in accordance
with this Indenture to the payment of principal of and interest on the
Securities.
<PAGE>

                                                                              92

                  SECTION 8.4. Repayment to Company. The Trustee and the Paying
Agent shall promptly turn over to the Company upon request any excess money,
U.S. Government Obligations or securities held by them upon payment of all the
obligations under this Indenture.

                  Subject to any applicable abandoned property law, the Trustee
and the Paying Agent shall pay to the Company upon request any money held by
them for the payment of principal of or interest on the Securities that remains
unclaimed for two years, and, thereafter, Securityholders entitled to the money
must look to the Company for payment as general creditors.

                  SECTION 8.5. Indemnity for U.S. Government Obligations. The
Company shall pay and shall indemnify the Trustee against any tax, fee or other
charge imposed on or assessed against deposited U.S. Government Obligations or
the principal and interest received on such U.S. Government Obligations.

                  SECTION 8.6. Reinstatement. If the Trustee or Paying Agent is
unable to apply any money or U.S. Government Obligations in accordance with this
Article VIII by reason of any legal proceeding or by reason of any order or
judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, the obligations of the Company under
this Indenture and the Securities shall be revived and reinstated as though no
deposit had occurred pursuant to this Article VIII until such time as the
Trustee or Paying Agent is permitted to apply all such money or U.S. Government
Obligations in accordance with this Article VIII; provided, however, that, if
the Company has made any payment of interest on or principal of any Securities
because of the reinstatement of its obligations, the Company shall be subrogated
to the rights of the Holders of such Securities to receive such payment from the
money or U.S. Government Obligations held by the Trustee or Paying Agent.

                                   ARTICLE IX

                                   Amendments

                  SECTION 9.1. Without Consent of Holders. The Company, the
Subsidiary Guarantors and the Trustee may amend this Indenture or the Securities
without notice to or consent of any Securityholder:

                  (1)      to cure any ambiguity, omission, defect or
         inconsistency;

                  (2)      to comply with Article IV in respect of the
         assumption by a Successor Company of an obligation of the Company under
         this Indenture;

                  (3)      to provide for uncertificated Securities in addition
         to or in place of certificated Securities; provided, however, that the
         uncertificated Securities are issued in registered form for purposes of
         Section 163(f) of the Code or in a manner such that the uncertificated
         Securities are described in Section 163(f)(2)(B) of the Code;
<PAGE>

                                                                              93

                  (4)      to add Guarantees with respect to the Securities or
         to release a Subsidiary Guarantor in accordance with this Indenture;
         provided, however, that the designation is in accord with the
         applicable provisions of the Indenture;

                  (5)      to secure the Securities;

                  (6)      to add to the covenants of the Company and the
         Subsidiary Guarantors for the benefit of the Holders or to surrender
         any right or power herein conferred upon the Company;

                  (7)      to make any change that does not materially adversely
         affect the rights of any Securityholder;

                  (8)      to comply with any requirements of the SEC in
         connection with qualifying, or maintaining the qualification of, this
         Indenture under the TIA; or

                  (9)      to provide for the issuance of the Exchange
         Securities, which will have terms substantially identical in all
         material respects to the Initial Securities or the Additional
         Securities, as the case may be (except that the transfer restrictions
         contained in the Initial Securities or the Additional Securities, if
         any, will be modified or eliminated, as appropriate), and which will be
         treated, together with any outstanding Initial Securities or Additional
         Securities, as a single issue of securities.

                  After an amendment under this Section becomes effective, the
Company shall mail to Securityholders a notice briefly describing such
amendment. The failure to give such notice to all Securityholders, or any defect
therein, shall not impair or affect the validity of an amendment under this
Section.

                  SECTION 9.2. With Consent of Holders. The Company, the
Subsidiary Guarantors and the Trustee may amend this Indenture or the Securities
without notice to any Securityholder but with the written consent of the Holders
of at least a majority in principal amount of the Securities then outstanding
(including, without limitation, consents obtained in connection with a purchase
of, or tender offer or exchange offer for, Securities). However, without the
consent of each Securityholder affected, an amendment may not:

                  (1)      reduce the principal amount of Securities whose
         Holders must consent to an amendment;

                  (2)      reduce the rate of or extend the time for payment of
         interest on any Security;

                  (3)      reduce the principal of or extend the Stated Maturity
         of any Security;

                  (4)      reduce the premium payable upon the redemption or
         repurchase of any Security or change the time at which any Security may
         or shall be redeemed or repurchased as described under Article V;
<PAGE>

                                                                              94

                  (5)      make any Security payable in currency other than that
         stated in the Security;

                  (6)      impair the right of any Holder to receive payment of
         principal of, premium, if any, and interest on such Holder's Securities
         on or after the due dates therefor (other than a repurchase required
         under Section 3.7 or Section 3.9) or to institute suit for the
         enforcement of any payment on or with respect to such Holder's
         Securities; or

                  (7)      make any change to the amendment provisions which
         require each Holder's consent or to the waiver provisions.

                  It shall not be necessary for the consent of the Holders under
this Section to approve the particular form of any proposed amendment, but it
shall be sufficient if such consent approves the substance thereof. A consent to
any amendment or waiver under this Indenture by any Holder of the Securities
given in connection with a tender of such Holder's Securities will not be
rendered invalid by such tender.

                  After an amendment under this Section becomes effective, the
Company shall mail to Securityholders a notice briefly describing such
amendment. The failure to give such notice to all Securityholders, or any defect
therein, shall not impair or affect the validity of an amendment under this
Section.

                  SECTION 9.3. Compliance with Trust Indenture Act. Every
amendment to this Indenture or the Securities shall comply with the TIA as then
in effect.

                  SECTION 9.4. Revocation and Effect of Consents and Waivers. A
consent to an amendment or a waiver by a Holder of a Security shall bind the
Holder and every subsequent Holder of that Security or portion of the Security
that evidences the same debt as the consenting Holder's Security, even if
notation of the consent or waiver is not made on the Security. However, any such
Holder or subsequent Holder may revoke the consent or waiver as to such Holder's
Security or portion of the Security if the Trustee receives the notice of
revocation before the date the amendment or waiver becomes effective. After an
amendment or waiver becomes effective, it shall bind every Securityholder. An
amendment or waiver shall become effective upon receipt by the Trustee of the
requisite number of written consents under Section 9.1 or 9.2 as applicable.

                  The Company may, but shall not be obligated to, fix a record
date for the purpose of determining the Securityholders entitled to give their
consent or take any other action described above or required or permitted to be
taken pursuant to this Indenture. If a record date is fixed, then
notwithstanding the immediately preceding paragraph, those Persons who were
Securityholders at such record date (or their duly designated proxies), and only
those Persons, shall be entitled to give such consent or to revoke any consent
previously given or to take any such action, whether or not such Persons
continue to be Holders after such record date. No such consent shall become
valid or effective more than 120 days after such record date.

                  SECTION 9.5. Notation on or Exchange of Securities. If an
amendment changes the terms of a Security, the Trustee may require the Holder of
the Security to deliver it to the Trustee. The Trustee may place an appropriate
notation on the Security regarding the
<PAGE>

                                                                              95

changed terms and return it to the Holder. Alternatively, if the Company or the
Trustee so determines, the Company in exchange for the Security shall issue and
the Trustee shall authenticate a new Security that reflects the changed terms.
Failure to make the appropriate notation or to issue a new Security shall not
affect the validity of such amendment.

                  SECTION 9.6. Trustee To Sign Amendments. The Trustee shall
sign any amendment authorized pursuant to this Article IX if the amendment does
not adversely affect the rights, duties, liabilities or immunities of the
Trustee. If it does, the Trustee may but need not sign it. In signing such
amendment the Trustee shall be entitled to receive indemnity reasonably
satisfactory to it and to receive, and (subject to Sections 7.1 and 7.2) shall
be fully protected in relying upon an Officers' Certificate and an Opinion of
Counsel stating that such amendment is authorized or permitted by this
Indenture.

                                   ARTICLE X

                              Subsidiary Guarantee

                  SECTION 10.1. Subsidiary Guarantee. Each Subsidiary Guarantor
hereby fully, unconditionally and irrevocably guarantees, as primary obligor and
not merely as surety, jointly and severally with each other Subsidiary
Guarantor, to each Holder of the Securities and the Trustee the full and
punctual payment when due, whether at maturity, by acceleration, by redemption
or otherwise, of the principal of, premium, if any, and interest on the
Securities and all other monetary obligations of the Company under this
Indenture (all the foregoing being hereinafter collectively called the
"Obligations"). Each Subsidiary Guarantor further agrees (to the extent
permitted by law) that the Obligations may be extended or renewed, in whole or
in part, without notice or further assent from it, and that it will remain bound
under this Article X notwithstanding any extension or renewal of any Obligation.

                  Each Subsidiary Guarantor waives presentation to, demand of
payment from and protest to the Company of any of the Obligations and also
waives notice of protest for nonpayment. Each Subsidiary Guarantor waives notice
of any default under the Securities or the Obligations. The obligations of each
Subsidiary Guarantor hereunder shall not be affected by (a) the failure of any
Holder to assert any claim or demand or to enforce any right or remedy against
the Company or any other person under this Indenture, the Securities or any
other agreement or otherwise; (b) any extension or renewal of any thereof; (c)
any rescission, waiver, amendment or modification of any of the terms or
provisions of this Indenture, the Securities or any other agreement; (d) the
release of any security held by any Holder or the Trustee for the Obligations or
any of them; (e) the failure of any Holder to exercise any right or remedy
against any other Subsidiary Guarantor; or (f) any change in the ownership of
the Company.

                  Each Subsidiary Guarantor further agrees that its Subsidiary
Guarantee herein constitutes a Guarantee of payment when due (and not a
Guarantee of collection) and waives any right to require that any resort be had
by any Holder to any security held for payment of the Obligations.
<PAGE>

                                                                              96

                  Except as expressly set forth in Sections 8.1(b) and 10.2, the
obligations of each Subsidiary Guarantor hereunder shall not be subject to any
reduction, limitation, impairment or termination for any reason (other than
payment of the Obligations in full), including any claim of waiver, release,
surrender, alteration or compromise, and shall not be subject to any defense of
setoff, counterclaim, recoupment or termination whatsoever or by reason of the
invalidity, illegality or unenforceability of the Obligations or otherwise.
Without limiting the generality of the foregoing, the obligations of each
Subsidiary Guarantor herein shall not be discharged or impaired or otherwise
affected by the failure of any Holder to assert any claim or demand or to
enforce any remedy under this Indenture, the Securities or any other agreement,
by any waiver or modification of any thereof, by any default, failure or delay,
willful or otherwise, in the performance of the Obligations, or by any other act
or thing or omission or delay to do any other act or thing which may or might in
any manner or to any extent vary the risk of any Subsidiary Guarantor or would
otherwise operate as a discharge of such Subsidiary Guarantor as a matter of law
or equity.

                  Each Subsidiary Guarantor further agrees that its Subsidiary
Guarantee herein shall continue to be effective or be reinstated, as the case
may be, if at any time payment, or any part thereof, of principal of or interest
on any of the Obligations is rescinded or must otherwise be restored by any
Holder upon the bankruptcy or reorganization of the Company or otherwise.

                  In furtherance of the foregoing and not in limitation of any
other right which any Holder has at law or in equity against any Subsidiary
Guarantor by virtue hereof, upon the failure of the Company to pay any of the
Obligations when and as the same shall become due, whether at maturity, by
acceleration, by redemption or otherwise, each Subsidiary Guarantor hereby
promises to and will, upon receipt of written demand by the Trustee, forthwith
pay, or cause to be paid, in cash, to the Holders an amount equal to the sum of
(i) the unpaid amount of such Obligations then due and owing and (ii) accrued
and unpaid interest on such Obligations then due and owing (but only to the
extent not prohibited by law).

                  Each Subsidiary Guarantor further agrees that, as between such
Subsidiary Guarantor, on the one hand, and the Holders, on the other hand, (x)
the maturity of the Obligations guaranteed hereby may be accelerated as provided
in this Indenture for the purposes of its Subsidiary Guarantee herein,
notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the Obligations guaranteed hereby and (y) in the
event of any such declaration of acceleration of such Obligations, such
Obligations (whether or not due and payable) shall forthwith become due and
payable by the Subsidiary Guarantor for the purposes of this Subsidiary
Guarantee.

                  Each Subsidiary Guarantor also agrees to pay any and all
reasonable costs and expenses (including reasonable attorneys' fees) incurred by
the Trustee or the Holders in enforcing any rights under this Section.

                  SECTION 10.2. Limitation on Liability; Termination, Release
and Discharge.
<PAGE>

                                                                              97

                  (a)      The obligations of each Subsidiary Guarantor
hereunder will be limited to the maximum amount as will, after giving effect to
all other contingent and fixed liabilities of such Subsidiary Guarantor
(including, without limitation, any guarantees under the Senior Credit
Agreement) and after giving effect to any collections from or payments made by
or on behalf of any other Subsidiary Guarantor in respect of the obligations of
such other Subsidiary Guarantor under its Subsidiary Guarantee or pursuant to
its contribution obligations under this Indenture, result in the obligations of
such Subsidiary Guarantor under its Subsidiary Guarantee not constituting a
fraudulent conveyance or fraudulent transfer under federal or state law.

                  (b)      Each Subsidiary Guarantor may consolidate with or
merge into or sell its assets to the Company or another Subsidiary Guarantor
without limitation. Subject to Article III and Article IV, each Subsidiary
Guarantor may consolidate with or merge into or sell all or substantially all
its assets to a corporation, partnership or trust other than the Company or
another Subsidiary Guarantor (whether or not affiliated with the Subsidiary
Guarantor), except that if the surviving corporation of any such merger or
consolidation is a Subsidiary of the Company, such merger, consolidation or sale
shall not be permitted unless (i) the Person formed by or surviving any such
consolidation or merger assumes all the obligations of such Subsidiary under the
Subsidiary Guarantee pursuant to a supplemental indenture in form and substance
reasonably satisfactory to the Trustee in respect of the Securities, this
Indenture and the Subsidiary Guarantee; (ii) immediately after giving effect to
such transaction, no Default or Event of Default exists; and (iii) the Company
delivers to the Trustee an Officers' Certificate and an Opinion of Counsel
addressed to the Trustee with respect to the foregoing matters. Upon the sale or
disposition of a Subsidiary Guarantor (by merger, consolidation, the sale of its
Capital Stock or the sale of all or substantially all of its assets (other than
by lease)) and whether or not the Subsidiary Guarantor is the surviving
corporation in such transaction to a Person (whether or not an Affiliate of the
Subsidiary Guarantor) which is not the Company or a Restricted Subsidiary of the
Company (other than a Receivables Entity), which sale or disposition is
otherwise in compliance with this Indenture (including, without limitation,
Sections 3.4, 3.7 and 3.10), such Subsidiary Guarantor will be deemed released
from all its obligations under this Indenture and its Subsidiary Guarantee and
such Subsidiary Guarantee will terminate; provided, however, that any such
termination will occur only to the extent that all obligations of such
Subsidiary Guarantor under the Senior Credit Agreement and any other agreements
relating to any other Indebtedness of the Company or its Restricted Subsidiaries
will also terminate upon such release, sale or transfer.

                  (c)      Each Subsidiary Guarantor will be deemed released
from all its obligations under this Indenture, its Subsidiary Guarantee and the
Registration Rights Agreement and such Subsidiary Guarantee will terminate (i)
upon the legal defeasance or covenant defeasance of the Notes pursuant to the
provisions of Article VIII hereof; or (ii) upon the release of such Subsidiary
Guarantor from its Guarantee of the Company's and other Restricted Subsidiaries'
obligations under the Senior Credit Agreement; provided that a Subsidiary
Guarantor shall not be released from its Subsidiary Guarantee if (x) it is a
borrower under the Senior Credit Agreement, (y) it has Incurred in excess of
$2.0 million of Indebtedness that remains outstanding or (z) after giving effect
to the release of such Subsidiary Guarantor from its Subsidiary Guarantee the
aggregate outstanding Indebtedness of Restricted Subsidiaries that have been
released from their respective Subsidiary Guarantees would be in excess of $25.0
million. Notwithstanding the foregoing, a Restricted Subsidiary that previously
was released
<PAGE>

                                                                              98

from its Subsidiary Guarantee that becomes an obligor or issues a Guarantee of
obligations under the Senior Credit Agreement shall reexecute a Subsidiary
Guarantee pursuant to Section 3.12.

                  (d)      A Subsidiary Guarantor will be deemed released and
relieved of its obligations under this Indenture and its Subsidiary Guarantee
without any further action required on the part of the Company or such
Subsidiary Guarantor upon the designation of such Subsidiary Guarantor as an
Unrestricted Subsidiary in accordance with the terms of this Indenture.

                  (e)      Notwithstanding the provisions of Section 10.2(c) and
(d), Russell Co-op shall not be permitted to be discharged from its Subsidiary
Guarantee except in the event all other Subsidiary Guarantors have been released
from their respective Subsidiary Guarantees.

                  SECTION 10.3. Right of Contribution. Each Subsidiary Guarantor
hereby agrees that to the extent that any Subsidiary Guarantor shall have paid
more than its proportionate share of any payment made on the obligations under
the Subsidiary Guarantees, such Subsidiary Guarantor shall be entitled to seek
and receive contribution from and against the Company or any other Subsidiary
Guarantor who has not paid its proportionate share of such payment. Each
Subsidiary Guarantor's right of contribution shall be subject to the terms and
conditions of Section 3.6. The provisions of this Section 10.3 shall in no
respect limit the obligations and liabilities of each Subsidiary Guarantor to
the Trustee and the Holders and each Subsidiary Guarantor shall remain liable to
the Trustee and the Holders for the full amount guaranteed by such Subsidiary
Guarantor hereunder.

                  SECTION 10.4. No Subrogation. Notwithstanding any payment or
payments made by each Subsidiary Guarantor hereunder, no Subsidiary Guarantor
shall be entitled to be subrogated to any of the rights of the Trustee or any
Holder against the Company or any other Subsidiary Guarantor or any collateral
security or guarantee or right of offset held by the Trustee or any Holder for
the payment of the Obligations, nor shall any Subsidiary Guarantor seek or be
entitled to seek any contribution or reimbursement from the Company or any other
Subsidiary Guarantor in respect of payments made by such Subsidiary Guarantor
hereunder, until all amounts owing to the Trustee and the Holders by the Company
on account of the Obligations are paid in full. If any amount shall be paid to
any Subsidiary Guarantor on account of such subrogation rights at any time when
all of the Obligations shall not have been paid in full, such amount shall be
held by such Subsidiary Guarantor in trust for the Trustee and the Holders,
segregated from other funds of such Subsidiary Guarantor, and shall, forthwith
upon receipt by such Subsidiary Guarantor, be turned over to the Trustee in the
exact form received by such Subsidiary Guarantor (duly indorsed by such
Subsidiary Guarantor to the Trustee, if required), to be applied against the
Obligations.

                                   ARTICLE XI

                                  Miscellaneous

                  SECTION 11.1. Trust Indenture Act Controls. If any provision
of this Indenture limits, qualifies or conflicts with another provision which is
required to be included in this
<PAGE>

                                                                              99

Indenture by the TIA, the provision required by the TIA shall control. Each
Subsidiary Guarantor in addition to performing its obligations under its
Subsidiary Guarantee shall perform such other obligations as may be imposed upon
it with respect to this Indenture under the TIA.

                  SECTION 11.2. Notices. Any notice or communication shall be in
writing and delivered in person or mailed by first-class mail addressed as
follows:

                           if to the Company:

                           Russell Corporation
                           3300 Cumberland Boulevard, Suite 800
                           Atlanta, Georgia 30339
                           Attention: Floyd G. Hoffman, General Counsel

                           with a copy to:

                           Skadden, Arps, Slate, Meagher & Flom LLP &
                             Affiliates
                           Four Times Square
                           New York, NY 10036
                           Attention:  Stacy J. Kanter, Esq.

                           if to the Trustee:

                           Wachovia Bank, National Association
                           1100 First Union Plaza
                           999 Peachtree Street
                           Atlanta, Georgia 30309-9094
                           Attention: Corporate Trust Department

                  The Company or the Trustee by notice to the other may
designate additional or different addresses for subsequent notices or
communications.

                  Any notice or communication mailed to a registered
Securityholder shall be mailed to the Securityholder at the Securityholder's
address as it appears on the registration books of the Registrar and shall be
sufficiently given if so mailed within the time prescribed.

                  Failure to mail a notice or communication to a Securityholder
or any defect in it shall not affect its sufficiency with respect to other
Securityholders. If a notice or communication is mailed in the manner provided
above, it is duly given, whether or not the addressee receives it.

                  SECTION 11.3. Communication by Holders with other Holders.
Securityholders may communicate pursuant to TIA ss. 312(b) with other
Securityholders with respect to their rights under this Indenture or the
Securities. The Company, the Trustee, the Registrar and anyone else shall have
the protection of TIA ss. 312(c).
<PAGE>

                                                                             100

                  SECTION 11.4. Certificate and Opinion as to Conditions
Precedent. Upon any request or application by the Company to the Trustee to take
or refrain from taking any action under this Indenture, the Company shall
furnish to the Trustee:

                  (1)      an Officers' Certificate in form and substance
         reasonably satisfactory to the Trustee stating that, in the opinion of
         the signers, all conditions precedent, if any, provided for in this
         Indenture relating to the proposed action have been complied with; and

                  (2)      an Opinion of Counsel in form and substance
         reasonably satisfactory to the Trustee stating that, in the opinion of
         such counsel, all such conditions precedent have been complied with.

                  SECTION 11.5. Statements Required in Certificate or Opinion.
Each certificate or opinion with respect to compliance with a covenant or
condition provided for in this Indenture shall include:

                  (1)      a statement that the individual making such
         certificate or opinion has read such covenant or condition;

                  (2)      a brief statement as to the nature and scope of the
         examination or investigation upon which the statements or opinions
         contained in such certificate or opinion are based;

                  (3)      a statement that, in the opinion of such individual,
         he has made such examination or investigation as is necessary to enable
         him to express an informed opinion as to whether or not such covenant
         or condition has been complied with; and

                  (4)      a statement as to whether or not, in the opinion of
         such individual, such covenant or condition has been complied with.

                  In giving such Opinion of Counsel, counsel may rely as to
factual matters on an Officers' Certificate or on certificates of public
officials.

                  SECTION 11.6. When Securities Disregarded. In determining
whether the Holders of the required principal amount of Securities have
concurred in any direction, waiver or consent, Securities owned by the Company
or by any Person directly or indirectly controlling or controlled by or under
direct or indirect common control with the Company shall be disregarded and
deemed not to be outstanding, except that, for the purpose of determining
whether the Trustee shall be protected in relying on any such direction, waiver
or consent, only Securities which the Trustee knows are so owned shall be so
disregarded. Also, subject to the foregoing, only Securities outstanding at the
time shall be considered in any such determination.

                  SECTION 11.7. Rules by Trustee, Paying Agent and Registrar.
The Trustee may make reasonable rules for action by, or a meeting of,
Securityholders. The Registrar and the Paying Agent may make reasonable rules
for their functions.
<PAGE>

                                                                             101

                  SECTION 11.8. Legal Holidays. A "Legal Holiday" is a Saturday,
a Sunday or other day on which commercial banking institutions are authorized or
required to be closed in New York City. If a payment date is a Legal Holiday,
payment shall be made on the next succeeding day that is not a Legal Holiday,
and no interest shall accrue for the intervening period. If a regular record
date is a Legal Holiday, the record date shall not be affected.

                  SECTION 11.9. GOVERNING LAW. THIS INDENTURE AND THE SECURITIES
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NEW YORK.

                  SECTION 11.10. No Recourse Against Others. An incorporator,
director, officer, employee, stockholder or controlling person, as such, of the
Company or any Subsidiary Guarantor shall not have any liability for any
obligations of the Company under the Securities, this Indenture or the
Subsidiary Guarantees or for any claim based on, in respect of or by reason of
such obligations or their creation. By accepting a Security, each Securityholder
shall waive and release all such liability. The waiver and release shall be part
of the consideration for the issue of the Securities.

                  SECTION 11.11. Successors. All agreements of the Company in
this Indenture and the Securities shall bind their respective successors. All
agreements of the Trustee in this Indenture shall bind its successors.

                  SECTION 11.12. Multiple Originals. The parties may sign any
number of copies of this Indenture. Each signed copy shall be an original, but
all of them together represent the same agreement. One signed copy is enough to
prove this Indenture.

                  SECTION 11.13. Qualification of Indenture. The Company shall
qualify this Indenture under the TIA in accordance with the terms and conditions
of the Registration Rights Agreement and shall pay all reasonable costs and
expenses (including attorneys' fees and expenses for the Company, the Trustee
and the Holders) incurred in connection therewith, including, but not limited
to, costs and expenses of qualification of this Indenture and the Securities and
printing this Indenture and the Securities. The Trustee shall be entitled to
receive from the Company any such Officers' Certificates or other documentation
as it may reasonably request in connection with any such qualification of this
Indenture under the TIA.

                  SECTION 11.14. Table of Contents; Headings. The table of
contents, cross-reference sheet and headings of the Articles and Sections of
this Indenture have been inserted for convenience of reference only, are not
intended to be considered a part hereof and shall not modify or restrict any of
the terms or provisions hereof.
<PAGE>

                                                                             102

                  IN WITNESS WHEREOF, the parties have caused this Indenture to
be duly executed as of the date first written above.

                                           RUSSELL CORPORATION

                                           By:
                                              ----------------------------------
                                               Name:
                                               Title:

                                           CROSS CREEK HOLDINGS, INC.

                                           By
                                             -----------------------------------
                                                Title:

                                           CROSS CREEK APPAREL, LLC

                                           By
                                             -----------------------------------
                                                Title:

                                           DESOTO MILLS, INC.

                                           By
                                             -----------------------------------
                                                Title:

                                           JERZEES APPAREL, LLC

                                           By
                                             -----------------------------------
                                                Title:

                                           MOSSY OAK APPAREL COMPANY

                                           By
                                             -----------------------------------
                                                Title:
<PAGE>

                                                                             103

                                           RINTEL PROPERTIES, INC.

                                           By
                                             -----------------------------------
                                                Title:

                                           RUSSELL CO-OP, LLC

                                           By
                                             -----------------------------------
                                                Title:

                                           RUSSELL APPAREL, LLC

                                           By
                                             -----------------------------------
                                                Title:

                                           RUSSELL ASSET MANAGEMENT, INC.

                                           By
                                             -----------------------------------
                                                Title:

                                           RUSSELL ATHLETIC, INC.

                                           By
                                             -----------------------------------
                                                Title:

                                           RUSSELL ATHLETIC WEST, INC.

                                           By
                                             -----------------------------------
                                                Title:
<PAGE>

                                                                             104

                                           RUSSELL FINANCIAL SERVICES, INC.

                                           By
                                             -----------------------------------
                                                Title:

                                           RUSSELL YARN LLC

                                           By
                                             -----------------------------------
                                                Title:

                                            WACHOVIA BANK, NATIONAL
                                            ASSOCIATION, as Trustee

                                            By:
                                               ---------------------------------
                                               Name:
                                               Title:
<PAGE>

                                                                       EXHIBIT A

                         [FORM OF FACE OF SERIES A NOTE]

                    [Applicable Restricted Securities Legend]
                       [Depository Legend, if applicable]

No. [___]                                Principal Amount $[___________]
                                                     CUSIP NO. ________

                               RUSSELL CORPORATION

                      9.25% Senior Note, Series A, due 2010

                  Russell Corporation, an Alabama corporation, promises to pay
to [__________], or registered assigns, the principal sum of [_______________]
Dollars, on May 1, 2010.

                  Interest Payment Dates:  May 1 and November 1
                  Record Dates:  April 15 and October 15

                  Additional provisions of this Security are set forth on the
other side of this Security.

                                      A-1
<PAGE>

                                          RUSSELL CORPORATION

                                          By:
                                             -----------------------------------

TRUSTEE'S CERTIFICATE OF
  AUTHENTICATION

WACHOVIA BANK, NATIONAL ASSOCIATION
as Trustee, certifies
that this is one of
the Securities referred
to in the Indenture.

By
  ---------------------------------
         Authorized Signatory                       Date:

                                      A-2
<PAGE>

                     [FORM OF REVERSE SIDE OF SERIES A NOTE]

                      9.25% Senior Note, Series A, due 2010

1.       Interest

                  Russell Corporation, an Alabama Corporation (such corporation,
and its successors and assigns under the Indenture hereinafter referred to,
being herein called the "Company"), promises to pay interest on the principal
amount of this Security at the rate per annum shown above.

                  The Company will pay interest semiannually on May 1 and
November 1 of each year commencing November 1, 2002. Interest on the Securities
will accrue from the most recent date to which interest has been paid on the
Securities or, if no interest has been paid, from April 18, 2002. The Company
shall pay interest on overdue principal or premium, if any (plus interest on
such interest to the extent lawful), at the rate borne by the Securities to the
extent lawful. Interest will be computed on the basis of a 360-day year of
twelve 30-day months.

2.       Method of Payment

                  By no later than 10:00 a.m. (New York City time) on the date
on which any principal of or interest on any Security is due and payable, the
Company shall irrevocably deposit with the Trustee or the Paying Agent money
sufficient to pay such principal, premium, if any, and/or interest. The Company
will pay interest (except Defaulted Interest) to the Persons who are registered
Holders of Securities at the close of business on the April 15 or October 15
next preceding the interest payment date even if Securities are cancelled,
repurchased or redeemed after the record date and on or before the interest
payment date. Holders must surrender Securities to a Paying Agent to collect
principal payments. The Company will pay principal and interest in money of the
United States that at the time of payment is legal tender for payment of public
and private debts. Payments in respect of Securities represented by a Global
Security (including principal, premium, if any, and interest) will be made by
the transfer of immediately available funds to the accounts specified by The
Depository Trust Company. The Company will make all payments in respect of a
Definitive Security (including principal, premium, if any, and interest) by
mailing a check to the registered address of each Holder thereof; provided,
however, that payments on the Securities may also be made, in the case of a
Holder of a least $1,000,000 aggregate principal amount of Securities, by wire
transfer to a U.S. dollar account maintained by the payee with a bank in the
United States if such Holder elects payment by wire transfer by giving written
notice to the Trustee or the Paying Agent to such effect designating such
account no later than 15 days immediately preceding the relevant due date for
payment (or such other date as the Trustee may accept in its discretion).

3.       Paying Agent and Registrar

                  Initially, Wachovia Bank, National Association (the
"Trustee"), will act as Trustee, Paying Agent and Registrar. The Company may
appoint and change any Paying Agent, Registrar or co-registrar without notice to
any Securityholder. The Company or any of its Restricted Subsidiaries may act as
Paying Agent, Registrar or co-registrar.

                                      A-3
<PAGE>

4.       Indenture

                  The Company issued the Securities under an Indenture dated as
of April 18, 2002 (as it may be amended or supplemented from time to time in
accordance with the terms thereof, the "Indenture"), among the Company, the
Subsidiary Guarantors and the Trustee. The terms of the Securities include those
stated in the Indenture and those made part of the Indenture by reference to the
Trust Indenture Act of 1939 (15 U.S.C. ss.ss. 77aaa-77bbbb) as in effect on the
date of the Indenture (the "Act"). Capitalized terms used herein and not defined
herein have the meanings ascribed thereto in the Indenture. The Securities are
subject to all such terms, and Securityholders are referred to the Indenture and
the Act for a statement of those terms.

The Securities are general unsecured senior obligations of the Company. The
aggregate principal amount of securities that may be authenticated and delivered
under the Indenture is unlimited. This Security is one of the 9.25% Senior
Notes, Series A, due 2010 referred to in the Indenture. The Securities include
(i) $250,000,000 aggregate principal amount of the Company's 9.25% Senior Notes,
Series A, due 2010 issued under the Indenture on April 18, 2002 (herein called
"Initial Securities"), (ii) if and when issued, additional 9.25% Senior Notes,
Series A, due 2010 or 9.25% Senior Notes, Series S, due 2010 of the Company that
may be issued from time to time under the Indenture subsequent to April 18, 2002
(herein called "Additional Securities") and (iii) if and when issued, the
Company's 9.25% Senior Notes, Series S, due 2010 that may be issued from time to
time under the Indenture in exchange for Initial Securities or Additional
Securities in an offer registered under the Securities Act as provided in the
Registration Rights Agreement. The Initial Securities, Additional Securities and
Exchange Securities are treated as a single class of securities under the
Indenture. This Indenture imposes certain limitations on, among other things,
the Incurrence of Indebtedness by the Company and its Subsidiaries, the payment
of dividends and other distributions on the Capital Stock of the Company and its
Subsidiaries, the purchase or redemption of Capital Stock of the Company and
Capital Stock of such Subsidiaries, certain purchases or redemptions of
Subordinated Indebtedness, the sale or transfer of assets and Capital Stock of
Subsidiaries, certain sale/leaseback transactions involving the Company or any
Restricted Subsidiary, the issuance or sale of Capital Stock of Subsidiaries,
the incurrence of certain liens, certain payment guarantees, the business
activities and investments of the Company and its Subsidiaries and transactions
with Affiliates, provided, however, certain of such limitations will no longer
be in effect if the Securities receive a rating of "BBB-" or higher from
Standard & Poor's Rating Service (or its successors) and "Baa3" or higher from
Moody's Investors Service, Inc. (or its successors). Notwithstanding the
foregoing, if at any time the Company's credit rating is downgraded from
Investment Grade Status, such limitations shall be reinstated in full force and
effect to the same extent as though the Company had never attained Investment
Grade Status. In addition, the Indenture limits the ability of the Company and
its Subsidiaries to enter into agreements that restrict distributions and
dividends from Subsidiaries.

                  To guarantee the due and punctual payment of the principal,
premium, if any, and interest on the Securities and all other amounts payable by
the Company under the Indenture and the Securities when and as the same shall be
due and payable, whether at maturity, by acceleration or otherwise, according to
the terms of the Securities and the Indenture, the Subsidiary Guarantors have
unconditionally guaranteed (and future Subsidiary Guarantors,

                                      A-4
<PAGE>

together with the Subsidiary Guarantors, will unconditionally guarantee),
jointly and severally, such obligations on a senior basis pursuant to the terms
of the Indenture.

5.       Redemption

                  Except as set forth below, the Securities will not be
redeemable at the option of the Company prior to May 1, 2006. On and after such
date, the Securities will be redeemable, at the Company's option, in whole or in
part, at any time upon not less than 30 nor more than 60 days prior notice
mailed by first-class mail to each Holder's registered address, at the following
redemption prices (expressed in percentages of principal amount), plus accrued
and unpaid interest to the redemption date (subject to the right of Holders of
record on the relevant record date to receive interest due on the relevant
interest payment date):

                  If redeemed during the 12-month period commencing on May 1 of
the years set forth below:

<TABLE>
<CAPTION>
                                                      REDEMPTION
     PERIOD                                              PRICE
     ------                                           ----------
     <S>                                              <C>
     2006                                              104.6250%
     2007                                              102.3125%
     2008 and thereafter                               100.0000%
</TABLE>

                  In addition, at any time and from time to time prior to May 1,
2005, the Company may redeem in the aggregate up to 35% of the original
principal amount of the Securities with the Net Cash Proceeds of one or more
Equity Offerings received by the Company at a redemption price (expressed as a
percentage of principal amount) of 109.25% plus accrued and unpaid interest, if
any, to the redemption date (subject to the right of Holders of record on the
relevant record date to receive interest due on the relevant interest payment
date); provided, however, that at least 65% of the original principal amount of
the Securities must remain outstanding after each such redemption; provided
further, that each such redemption occurs within 90 days of the date of closing
of such Equity Offering.

                  If the optional redemption date is on or after an interest
record date and on or before the related interest payment date, the accrued and
unpaid interest, if any, will be paid to the Person in whose name the Security
is registered at the close of business on such record date, and no additional
interest will be payable to Holders whose Securities will be subject to
redemption by the Company.

                  In the case of any partial redemption, selection of the
Securities for redemption will be made by the Trustee in compliance with the
requirements of the principal national securities exchange, if any, on which the
Securities are listed or, if the Securities are not listed, then on a pro rata
basis, by lot or by such other method as the Trustee in its sole discretion
shall deem to be fair and appropriate, although no Securities of $1,000 in
original principal amount or less will be redeemed in part. If any Security is
to be redeemed in part only, the notice of

                                      A-5
<PAGE>

redemption relating to such Security shall state the portion of the principal
amount thereof to be redeemed. A new Security in principal amount equal to the
unredeemed portion thereof will be issued in the name of the Holder thereof upon
cancellation of the original Security. On and after the redemption date,
interest will cease to accrue on Securities or portions thereof called for
redemption as long as the Company has deposited with the Paying Agent funds in
satisfaction of the applicable redemption price pursuant to the Indenture.

6.       Repurchase Provisions

                  (a) Upon a Change of Control any Holder of Securities will
have the right to cause the Company to repurchase all or any part of the
Securities of such Holder at a purchase price in cash equal to 101% of the
principal amount thereof, plus accrued and unpaid interest, if any, to the date
of repurchase (subject to the right of Holders of record on the relevant record
date to receive interest due on the relevant interest payment date) as provided
in, and subject to the terms of, the Indenture.

                  (b) In the event of an Asset Disposition that requires the
purchase of Securities pursuant to Section 3.7 (b) of the Indenture, the Company
will be required to apply such Excess Proceeds to the repayment of the
Securities and any Pari Passu Notes in accordance with the procedures set forth
in Section 3.7 of the Indenture.

7.       Denominations; Transfer; Exchange

                  The Securities are in registered form without coupons in
denominations of principal amount of $1,000 and whole multiples of $1,000. A
Holder may transfer or exchange Securities in accordance with the Indenture. The
Registrar may require a Holder, among other things, to furnish appropriate
endorsements or transfer documents and to pay any taxes and fees required by law
or permitted by the Indenture. The Registrar need not register the transfer of
or exchange (i) any Securities selected for redemption (except, in the case of a
Security to be redeemed in part, the portion of the Security not to be redeemed)
for a period beginning 15 days before the mailing of a notice of Securities to
be redeemed and ending on the date of such mailing or (ii) any Securities for a
period beginning 15 days before an interest payment date and ending on such
interest payment date.

8.       Persons Deemed Owners

                  The registered Holder of this Security may be treated as the
owner of it for all purposes.

9.       Unclaimed Money

                  If money for the payment of principal or interest remains
unclaimed for two years, the Trustee or Paying Agent shall pay the money back to
the Company at its request unless an abandoned property law designates another
Person. After any such payment, Holders entitled to the money must look only to
the Company and not to the Trustee for payment.

                                      A-6
<PAGE>

10.      Defeasance

                  Subject to certain conditions set forth in the Indenture, the
Company at any time may terminate some or all of its obligations under the
Securities and the Indenture if the Company deposits with the Trustee money or
U.S. Government Obligations for the payment of principal and interest on the
Securities to redemption or maturity, as the case may be.

11.      Amendment, Waiver

                  Subject to certain exceptions set forth in the Indenture, (i)
the Indenture or the Securities may be amended with the written consent of the
Holders of at least a majority in principal amount of the then outstanding
Securities and (ii) any default (other than with respect to nonpayment or in
respect of a provision that cannot be amended without the written consent of
each Securityholder affected) or noncompliance with any provision may be waived
with the written consent of the Holders of a majority in principal amount of the
then outstanding Securities. Subject to certain exceptions set forth in the
Indenture, without the consent of any Securityholder, the Company and the
Trustee may amend the Indenture or the Securities to cure any ambiguity,
omission, defect or inconsistency, or to comply with Article IV of the
Indenture, or to provide for uncertificated Securities in addition to or in
place of certificated Securities, or to add guarantees with respect to the
Securities, to release a Subsidiary Guarantor in accordance with the Indenture
or to secure the Securities, or to add additional covenants of the Company and
the Subsidiary Guarantors, or surrender rights and powers conferred on the
Company, or to comply with any request of the SEC in connection with qualifying
the Indenture under the Act, or to make any change that does not materially
adversely affect the rights of any Securityholder, or to provide for the
issuance of Exchange Securities.

12.      Defaults and Remedies

                  Under the Indenture, Events of Default include (i) default for
30 days in payment of interest or additional interest when due on the
Securities; (ii) default in payment of principal or premium, if any, on the
Securities at Stated Maturity, upon required repurchase or upon optional
redemption pursuant to paragraphs 5 and 6 of the Securities, upon declaration or
otherwise; (iii) the failure by the Company or any Subsidiary Guarantor to
comply with its obligations under Article IV or Section 10.2 of the Indenture;
(iv) failure by the Company to comply for 30 days after notice with any of its
obligations under the covenants described under Sections 3.2 through 3.13
inclusive and Sections 3.15 through 3.18 inclusive of the Indenture (in each
case, other than a failure to purchase Securities when required pursuant to
Section 3.7 or 3.9 or Article V, which failure shall constitute an Event of
Default under clause (ii) above); (v) the failure by the Company to comply for
60 days after notice with its other agreements contained in the Indenture or
under the Securities (other than those referred to in (i), (ii), (iii) or (iv)
above); (vi) subject to certain exceptions contained in the Indenture, default
under any mortgage, indenture or instrument under which there may be issued or
by which there may be secured or evidenced any Indebtedness for money borrowed
by the Company or any of its Restricted Subsidiaries (or the payment of which is
guaranteed by the Company or any of its Restricted Subsidiaries), other than
Indebtedness owed to the Company or a Restricted Subsidiary, whether such
Indebtedness or guarantee now exists, or is created after the date of the
Indenture, which default (a) is caused by a failure to pay principal of, or
interest or premium, if any, on such

                                      A-7
<PAGE>

Indebtedness before the expiration of the grace period provided in such
Indebtedness ("Payment Default") or (b) results in the acceleration of such
Indebtedness prior to its maturity (the "cross acceleration provision") and, in
each case, the principal amount of any such Indebtedness, together with the
principal amount of any other such Indebtedness under which there has been a
Payment Default or the maturity of which has been so accelerated, aggregates
$25.0 million or more; (vii) certain events of bankruptcy, insolvency or
reorganization of the Company or a Significant Subsidiary (other than any
Receivables Entity) or group of Restricted Subsidiaries (other than any
Receivables Entity) that, taken together (as of the latest audited consolidated
financial statements for the Company and its Restricted Subsidiaries), would
constitute a Significant Subsidiary (the "bankruptcy provisions"); (viii)
failure by the Company or any Significant Subsidiary (other than any Receivables
Entity) or group of Restricted Subsidiaries (other than any Receivables Entity)
that, taken together (as of the latest audited consolidated financial statements
for the Company and its Restricted Subsidiaries) would constitute a Significant
Subsidiary to pay final judgments aggregating in excess of $25.0 million (net of
any amounts with respect to which a reputable and creditworthy insurance company
has acknowledged liability in writing), which judgments are not paid, bonded,
discharged or stayed for a period of 60 days (the "judgment default provision")
or (ix) any Subsidiary Guarantee of a Significant Subsidiary or group of
Restricted Subsidiaries that taken together as part of the latest consolidated
financial statements for the Company and its Restricted Subsidiaries would
constitute a Significant Subsidiary ceases to be in full force and effect
(except as contemplated by the terms of the Indenture) or is declared null and
void in a judicial proceeding or any Subsidiary Guarantor that is a Significant
Subsidiary or group of Restricted Subsidiaries that taken together as part of
the latest consolidated financial statements for the Company and its Restricted
Subsidiaries would constitute a Significant Subsidiary denies or disaffirms its
obligations under the Indenture or its Subsidiary Guarantee. However, a default
under clauses (iv) and (v) will not constitute an Event of Default until the
Trustee or the Holders of at least 25% in principal amount of the outstanding
Securities notify the Company of the default and the Company does not cure such
default within the time specified in clauses (iv) and (v) hereof after receipt
of such notice.

                  If an Event of Default occurs and is continuing, the Trustee
or the Holders of at least 25% in principal amount of the Securities may declare
all the Securities to be due and payable immediately. Certain events of
bankruptcy or insolvency are Events of Default which will result in the
Securities being due and payable immediately upon the occurrence of such Events
of Default.

                  Securityholders may not enforce the Indenture or the
Securities except as provided in the Indenture. The Trustee may refuse to
enforce the Indenture or the Securities unless it receives reasonable indemnity
or security. Subject to certain limitations, Holders of a majority in principal
amount of the Securities may direct the Trustee in its exercise of any trust or
power. The Trustee may withhold from Securityholders notice of any continuing
Default or Event of Default (except a Default or Event of Default in payment of
principal or interest) if it determines that withholding notice is in their
interest.

                                      A-8
<PAGE>

13.      Trustee Dealings with the Company

                  Subject to certain limitations set forth in the Indenture, the
Trustee under the Indenture, in its individual or any other capacity, may become
the owner or pledgee of Securities and may otherwise deal with and collect
obligations owed to it by the Company or its Affiliates and may otherwise deal
with the Company or its affiliates with the same rights it would have if it were
not Trustee.

14.      No Recourse Against Others

                  An incorporator, director, officer, employee, stockholder or
controlling person, as such, of each of the Company, or any Subsidiary Guarantor
shall not have any liability for any obligations of the Company under the
Securities, the Indenture or any Subsidiary Guarantees or for any claim based
on, in respect of or by reason of such obligations or their creation. By
accepting a Security, each Securityholder waives and releases all such
liability. The waiver and release are part of the consideration for the issue of
the Securities.

15.      Authentication

                  This Security shall not be valid until an authorized signatory
of the Trustee (or an authenticating agent acting on its behalf) manually signs
the certificate of authentication on the other side of this Security.

16.      Abbreviations

                  Customary abbreviations may be used in the name of a
Securityholder or an assignee, such as TEN COM (= tenants in common), TEN ENT (=
tenants by the entirety), JT TEN (= joint tenants with rights of survivorship
and not as tenants in common), CUST (= custodian) and U/G/M/A (= Uniform Gift to
Minors Act).

17.      CUSIP Numbers

                  Pursuant to a recommendation promulgated by the Committee on
Uniform Security Identification Procedures, the Company has caused CUSIP numbers
to be printed on the Securities and has directed the Trustee to use CUSIP
numbers in notices of redemption as a convenience to Securityholders. No
representation is made as to the accuracy of such numbers either as printed on
the Securities or as contained in any notice of redemption and reliance may be
placed only on the other identification numbers placed thereon.

18.      Governing Law

                  This Security shall be governed by, and construed in
accordance with, the laws of the State of New York.

                  The Company will furnish to any Securityholder upon written
request and without charge to the Securityholder a copy of the Indenture, which
has in it the text of this Security in larger type. Requests may be made to:

                                      A-9
<PAGE>

                               Russell Corporation
                      3300 Cumberland Boulevard, Suite 800
                             Atlanta, Georgia 30339
                  Attention: Floyd G. Hoffman, General Counsel

                                      A-10
<PAGE>

                                 ASSIGNMENT FORM

                  To assign this Security, fill in the form below:

                  I or we assign and transfer this Security to

           ----------------------------------------------------------
              (Print or type assignee's name, address and zip code)

                ------------------------------------------------
                  (Insert assignee's soc. sec. or tax I.D. No.)

         and irrevocably appoint ___________ agent to transfer this Security on
         the books of the Company. The agent may substitute another to act for
         him.

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

Date:                                   Your Signature:
     -------------------------                         -------------------------

Signature Guarantee:
                    ------------------------------------------------------------
                                   (Signature must be guaranteed)

--------------------------------------------------------------------------------
Sign exactly as your name appears on the other side of this Security.

The signature(s) should be guaranteed by an eligible guarantor institution
(banks, stockbrokers, savings and loan associations and credit unions with
membership in an approved signature guarantee medallion program), pursuant to
S.E.C. Rule 17Ad-15.

         In connection with any transfer or exchange of any of the Securities
evidenced by this certificate occurring prior to the date that is two years
after the later of the date of original issuance of such Securities and the last
date, if any, on which such Securities were owned by the Company or any
Affiliate of the Company, the undersigned confirms that such Securities are
being:

CHECK ONE BOX BELOW:

         1[ ]     acquired for the undersigned's own account, without transfer;
                  or

         2[ ]     transferred to the Company; or

         3[ ]     transferred pursuant to and in compliance with Rule 144A under
                  the Securities Act of 1933, as amended (the "Securities Act");
                  or

         4[ ]     transferred pursuant to an effective registration statement
                  under the Securities Act; or

         5[ ]     transferred pursuant to and in compliance with Regulation S
                  under the Securities Act; or

                                      A-11
<PAGE>

         6[ ]     transferred to an institutional "accredited investor" (as
                  defined in Rule 501(a)(1), (2), (3) or (7) under the
                  Securities Act), that has furnished to the Trustee a signed
                  letter containing certain representations and agreements (the
                  form of which letter appears as Section 2.7 of the Indenture);
                  or

         7[ ]     transferred pursuant to another available exemption from the
                  registration requirements of the Securities Act of 1933.

Unless one of the boxes is checked, the Trustee will refuse to register any of
the Securities evidenced by this certificate in the name of any person other
than the registered Holder thereof; provided, however, that if box (5), (6) or
(7) is checked, the Trustee or the Company may require, prior to registering any
such transfer of the Securities, in their sole discretion, such legal opinions,
certifications and other information as the Trustee or the Company may
reasonably request to confirm that such transfer is being made pursuant to an
exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act of 1933, such as the exemption provided by
Rule 144 under such Act.

                                                  ------------------------------
                                                  Signature
Signature Guarantee:

------------------------------                    ------------------------------
(Signature must be guaranteed)                    Signature

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

The signature(s) should be guaranteed by an eligible guarantor institution
(banks, stockbrokers, savings and loan associations and credit unions with
membership in an approved signature guarantee medallion program), pursuant to
S.E.C. Rule 17Ad-15.

TO BE COMPLETED BY PURCHASER IF (1) OR (3) ABOVE IS CHECKED.

         The undersigned represents and warrants that it is purchasing this
Security for its own account or an account with respect to which it exercises
sole investment discretion and that it and any such account is a "qualified
institutional buyer" within the meaning of Rule 144A under the Securities Act of
1933, as amended, and is aware that the sale to it is being made in reliance on
Rule 144A and acknowledges that it has received such information regarding the
Company as the undersigned has requested pursuant to Rule 144A or has determined
not to request such information and that it is aware that the transferor is
relying upon the undersigned's foregoing representations in order to claim the
exemption from registration provided by Rule 144A.

-----------------------
Dated:

                                      A-12
<PAGE>

                      [TO BE ATTACHED TO GLOBAL SECURITIES]

              SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY

                  The following increases or decreases in this Global Security
have been made:

<TABLE>
<CAPTION>
                                                                   Principal Amount of      Signature of
                 Amount of decrease in    Amount of increase in    this Global Security     authorized signatory
Date of          Principal Amount of      Principal Amount of      following such           of Trustee or
Exchange         this Global Security     this Global Security     decrease or increase     Securities Custodian
--------         ---------------------    ---------------------    ---------------------    --------------------
<S>              <C>                      <C>                      <C>                      <C>

</TABLE>

                                      A-13
<PAGE>

                       OPTION OF HOLDER TO ELECT PURCHASE

                  If you want to elect to have this Security purchased by the
Company pursuant to Section 3.7 or 3.9 of the Indenture, check either box:

                                   [ ]   [ ]
                                   3.7   3.9

                  If you want to elect to have only part of this Security
purchased by the Company pursuant to Section 3.7 or 3.9 of the Indenture, state
the amount in principal amount (must be integral multiple of $1,000): $

Date:      Your Signature
     ----                -------------------------------------------------------
           (Sign exactly as your name appears on the other side of the Security)

Signature Guarantee:
                    ------------------------------------------------------------
                                   (Signature must be guaranteed)

The signature(s) should be guaranteed by an eligible guarantor institution
(banks, stockbrokers, savings and loan associations and credit unions with
membership in an approved signature guarantee medallion program), pursuant to
S.E.C. Rule 17Ad-15.

                                      A-14
<PAGE>

                                                                       EXHIBIT B

                         [FORM OF FACE OF SERIES S NOTE]

                       [Depository Legend, if applicable]

No. [___]                                   Principal Amount $[___________]
                                                         CUSIP NO. ________

                               RUSSELL CORPORATION

                      9.25% Senior Note, Series S, due 2010

                  Russell Corporation, an Alabama Corporation, promises to pay
to [__________], or registered assigns, the principal sum of [_______________]
Dollars, on May 1, 2010.

                  Interest Payment Dates:  May 1 and November 1

                  Record Dates:  April 15 and October 15

                  Additional provisions of this Security are set forth on the
other side of this Security.

                                      B-1
<PAGE>

                                         RUSSELL CORPORATION

                                         By:
                                            ------------------------------------

TRUSTEE'S CERTIFICATE OF
  AUTHENTICATION

WACHOVIA BANK, NATIONAL ASSOCIATION
as Trustee, certifies
that this is one of
the Securities referred
to in the Indenture.

By
  ----------------------------------
         Authorized Signatory                           Date:

                                      B-2
<PAGE>

                     [FORM OF REVERSE SIDE OF SERIES S NOTE]

                      9.25% Senior Note, Series S, due 2010

1.       Interest

                  Russell Corporation, an Alabama Corporation (such corporation,
and its successors and assigns under the Indenture hereinafter referred to,
being herein called the "Company"), promises to pay interest on the principal
amount of this Security at the rate per annum shown above.

                  The Company will pay interest semiannually on May 1 and
November 1 of each year commencing November 1, 2002. Interest on the Securities
will accrue from the most recent date to which interest has been paid on the
Securities or, if no interest has been paid, from April 18, 2002. The Company
shall pay interest on overdue principal or premium, if any (plus interest on
such interest to the extent lawful), at the rate borne by the Securities to the
extent lawful. Interest will be computed on the basis of a 360-day year of
twelve 30-day months.

2.       Method of Payment

                  By no later than 10:00 a.m. (New York City time) on the date
on which any principal of or interest on any Security is due and payable, the
Company shall irrevocably deposit with the Trustee or the Paying Agent money
sufficient to pay such principal, premium, if any, and/or interest. The Company
will pay interest (except Defaulted Interest) to the Persons who are registered
Holders of Securities at the close of business on the April 15 or October 15
next preceding the interest payment date even if Securities are cancelled,
repurchased or redeemed after the record date and on or before the interest
payment date. Holders must surrender Securities to a Paying Agent to collect
principal payments. The Company will pay principal and interest in money of the
United States that at the time of payment is legal tender for payment of public
and private debts. Payments in respect of Securities represented by a Global
Security (including principal, premium, if any, and interest) will be made by
the transfer of immediately available funds to the accounts specified by The
Depository Trust Company. The Company will make all payments in respect of a
Definitive Security (including principal, premium, if any, and interest) by
mailing a check to the registered address of each Holder thereof; provided,
however, that payments on the Securities may also be made, in the case of a
Holder of a least $1,000,000 aggregate principal amount of Securities, by wire
transfer to a U.S. dollar account maintained by the payee with a bank in the
United States if such Holder elects payment by wire transfer by giving written
notice to the Trustee or the Paying Agent to such effect designating such
account no later than 15 days immediately preceding the relevant due date for
payment (or such other date as the Trustee may accept in its discretion).

3.       Paying Agent and Registrar

                  Initially, Wachovia Bank, National Association (the
"Trustee"), will act as Trustee, Paying Agent and Registrar. The Company may
appoint and change any Paying Agent, Registrar or co-registrar without notice to
any Securityholder. The Company or any of its Restricted Subsidiaries may act as
Paying Agent, Registrar or co-registrar.

                                      B-3
<PAGE>

4.       Indenture

                  The Company issued the Securities under an Indenture dated as
of April 18, 2002 (as it may be amended or supplemented from time to time in
accordance with the terms thereof, the "Indenture"), among the Company, the
Subsidiary Guarantors and the Trustee. The terms of the Securities include those
stated in the Indenture and those made part of the Indenture by reference to the
Trust Indenture Act of 1939 (15 U.S.C. ss.ss. 77aaa-77bbbb) as in effect on the
date of the Indenture (the "Act"). Capitalized terms used herein and not defined
herein have the meanings ascribed thereto in the Indenture. The Securities are
subject to all such terms, and Securityholders are referred to the Indenture and
the Act for a statement of those terms.

                  The Securities are general unsecured senior obligations of the
Company. The aggregate principal amount of securities that may be authenticated
and delivered under the Indenture is unlimited. This Security is one of the
9.25% Senior Notes, Series S, due 2010 referred to in the Indenture. The
Securities include (i) $250,000,000 aggregate principal amount of the Company's
9.25% Senior Notes, Series A, due 2010 issued under the Indenture on April 18,
2002 (herein called "Initial Securities"), (ii) if and when issued, additional
9.25% Senior Notes, Series A, due 2010 or 9.25% Senior Notes, Series S, due 2010
of the Company that may be issued from time to time under the Indenture
subsequent to April 18, 2002 (herein called "Additional Securities") and (iii)
if and when issued, the Company's 9.25% Senior Notes, Series S, due 2010 that
may be issued from time to time under the Indenture in exchange for Initial
Securities or Additional Securities in an offer registered under the Securities
Act as provided in the Registration Rights Agreement. The Initial Securities,
Additional Securities and Exchange Securities are treated as a single class of
securities under the Indenture. This Indenture imposes certain limitations on,
among other things, the Incurrence of Indebtedness by the Company and its
Subsidiaries, the payment of dividends and other distributions on the Capital
Stock of the Company and its Subsidiaries, the purchase or redemption of Capital
Stock of the Company and Capital Stock of such Subsidiaries, certain purchases
or redemptions of Subordinated Indebtedness, the sale or transfer of assets and
Capital Stock of Subsidiaries, certain sale/leaseback transactions involving the
Company or any Restricted Subsidiary, the issuance or sale of Capital Stock of
Subsidiaries, the incurrence of certain liens, certain payment guarantees, the
business activities and investments of the Company and its Subsidiaries and
transactions with Affiliates, provided, however, certain of such limitations
will no longer be in effect if the Securities receive a rating of "BBB-" or
higher from Standard & Poor's Rating Service (or its successors) and "Baa3" or
higher from Moody's Investors Service, Inc. (or its successors). Notwithstanding
the foregoing, if at any time the Company's credit rating is downgraded from
Investment Grade Status, such limitations shall be reinstated in full force and
effect to the same extent as though the Company had never attained Investment
Grade Status. In addition, the Indenture limits the ability of the Company and
its Subsidiaries to enter into agreements that restrict distributions and
dividends from Subsidiaries.

                  To guarantee the due and punctual payment of the principal,
premium, if any, and interest on the Securities and all other amounts payable by
the Company under the Indenture and the Securities when and as the same shall be
due and payable, whether at maturity, by acceleration or otherwise, according to
the terms of the Securities and the Indenture, the Subsidiary Guarantors have
unconditionally guaranteed (and future Subsidiary Guarantors,

                                      B-4
<PAGE>

together with the Subsidiary Guarantors, will unconditionally guarantee),
jointly and severally, such obligations on a senior basis pursuant to the terms
of the Indenture.

5.       Redemption

                  Except as set forth below, the Securities will not be
redeemable at the option of the Company prior to May 1, 2006. On and after such
date, the Securities will be redeemable, at the Company's option, in whole or in
part, at any time upon not less than 30 nor more than 60 days prior notice
mailed by first-class mail to each Holder's registered address, at the following
redemption prices (expressed in percentages of principal amount), plus accrued
and unpaid interest to the redemption date (subject to the right of Holders of
record on the relevant record date to receive interest due on the relevant
interest payment date):

                  If redeemed during the 12-month period commencing on May 1 of
the years set forth below:

<TABLE>
<CAPTION>
                                                       REDEMPTION
     PERIOD                                               PRICE
     ------                                            ----------
     <S>                                               <C>
     2006                                               104.6250%
     2007                                               102.3125%
     2008 and thereafter                                100.0000%
</TABLE>

                  In addition, at any time and from time to time prior to May 1,
2005, the Company may redeem in the aggregate up to 35% of the original
principal amount of the Securities with the Net Cash Proceeds of one or more
Equity Offerings received by the Company at a redemption price (expressed as a
percentage of principal amount) of 109.25% plus accrued and unpaid interest, if
any, to the redemption date (subject to the right of Holders of record on the
relevant record date to receive interest due on the relevant interest payment
date); provided, however, that at least 65% of the original principal amount of
the Securities must remain outstanding after each such redemption; provided
further, that each such redemption occurs within 90 days of the date of closing
of such Equity Offering.

                  If the optional redemption date is on or after an interest
record date and on or before the related interest payment date, the accrued and
unpaid interest, if any, will be paid to the Person in whose name the Security
is registered at the close of business on such record date, and no additional
interest will be payable to Holders whose Securities will be subject to
redemption by the Company.

                  In the case of any partial redemption, selection of the
Securities for redemption will be made by the Trustee in compliance with the
requirements of the principal national securities exchange, if any, on which the
Securities are listed or, if the Securities are not listed, then on a pro rata
basis, by lot or by such other method as the Trustee in its sole discretion
shall deem to be fair and appropriate, although no Securities of $1,000 in
original principal amount or less will be redeemed in part. If any Security is
to be redeemed in part only, the notice of redemption relating to such Security
shall state the portion of the principal amount thereof to be redeemed. A new
Security in principal amount equal to the unredeemed portion thereof will be

                                      B-5
<PAGE>

issued in the name of the Holder thereof upon cancellation of the original
Security. On and after the redemption date, interest will cease to accrue on
Securities or portions thereof called for redemption as long as the Company has
deposited with the Paying Agent funds in satisfaction of the applicable
redemption price pursuant to the Indenture..

6.       Repurchase Provisions

                  (a) Upon a Change of Control any Holder of Securities will
have the right to cause the Company to repurchase all or any part of the
Securities of such Holder at a purchase price in cash equal to 101% of the
principal amount thereof, plus accrued and unpaid interest, if any, to the date
of repurchase (subject to the right of Holders of record on the relevant record
date to receive interest due on the relevant interest payment date) as provided
in, and subject to the terms of, the Indenture.

                  (b) In the event of an Asset Disposition that requires the
purchase of Securities pursuant to Section 3.7 (b) of the Indenture, the Company
will be required to apply such Excess Proceeds to the repayment of the
Securities and any Pari Passu Notes in accordance with the procedures set forth
in Section 3.7 of the Indenture.

7.       Denominations; Transfer; Exchange

                  The Securities are in registered form without coupons in
denominations of principal amount of $1,000 and whole multiples of $1,000. A
Holder may transfer or exchange Securities in accordance with the Indenture. The
Registrar may require a Holder, among other things, to furnish appropriate
endorsements or transfer documents and to pay any taxes and fees required by law
or permitted by the Indenture. The Registrar need not register the transfer of
or exchange (i) any Securities selected for redemption (except, in the case of a
Security to be redeemed in part, the portion of the Security not to be redeemed)
for a period beginning 15 days before the mailing of a notice of Securities to
be redeemed and ending on the date of such mailing or (ii) any Securities for a
period beginning 15 days before an interest payment date and ending on such
interest payment date.

8.       Persons Deemed Owners

                  The registered Holder of this Security may be treated as the
owner of it for all purposes.

9.       Unclaimed Money

                  If money for the payment of principal or interest remains
unclaimed for two years, the Trustee or Paying Agent shall pay the money back to
the Company at its request unless an abandoned property law designates another
Person. After any such payment, Holders entitled to the money must look only to
the Company and not to the Trustee for payment.

10.      Defeasance

                  Subject to certain conditions set forth in the Indenture, the
Company at any time may terminate some or all of its obligations under the
Securities and the Indenture if the

                                      B-6
<PAGE>

Company deposits with the Trustee money or U.S. Government Obligations for the
payment of principal and interest on the Securities to redemption or maturity,
as the case may be.

11.      Amendment, Waiver

                  Subject to certain exceptions set forth in the Indenture, (i)
the Indenture or the Securities may be amended with the written consent of the
Holders of at least a majority in principal amount of the then outstanding
Securities and (ii) any default (other than with respect to nonpayment or in
respect of a provision that cannot be amended without the written consent of
each Securityholder affected) or noncompliance with any provision may be waived
with the written consent of the Holders of a majority in principal amount of the
then outstanding Securities. Subject to certain exceptions set forth in the
Indenture, without the consent of any Securityholder, the Company and the
Trustee may amend the Indenture or the Securities to cure any ambiguity,
omission, defect or inconsistency, or to comply with Article IV of the
Indenture, or to provide for uncertificated Securities in addition to or in
place of certificated Securities, or to add guarantees with respect to the
Securities, to release a Subsidiary Guarantor in accordance with the Indenture
or to secure the Securities, or to add additional covenants of the Company and
the Subsidiary Guarantors, or surrender rights and powers conferred on the
Company, or to comply with any request of the SEC in connection with qualifying
the Indenture under the Act, or to make any change that does not materially
adversely affect the rights of any Securityholder, or to provide for the
issuance of Exchange Securities.

12.      Defaults and Remedies

                  Under the Indenture, Events of Default include (i) default for
30 days in payment of interest when due on the Securities; (ii) default in
payment of principal or premium, if any, on the Securities at Stated Maturity,
upon required repurchase or upon optional redemption pursuant to paragraphs 5
and 6 of the Securities, upon declaration or otherwise; (iii) the failure by the
Company or any Subsidiary Guarantor to comply with its obligations under Article
IV or Section 10.2 of the Indenture; (iv) failure by the Company to comply for
30 days after notice with any of its obligations under the covenants described
under Sections 3.2 through 3.13 inclusive and Sections 3.15 through 3.18
inclusive of the Indenture (in each case, other than a failure to purchase
Securities when required pursuant to Section 3.7 or 3.9 or Article V, which
failure shall constitute an Event of Default under clause (ii) above); (v) the
failure by the Company to comply for 60 days after notice with its other
agreements contained in the Indenture or under the Securities (other than those
referred to in (i), (ii), (iii) or (iv) above); (vi) subject to certain
exceptions contained in the Indenture, default under any mortgage, indenture or
instrument under which there may be issued or by which there may be secured or
evidenced any Indebtedness for money borrowed by the Company or any of its
Restricted Subsidiaries (or the payment of which is guaranteed by the Company or
any of its Restricted Subsidiaries), other than Indebtedness owed to the Company
or a Restricted Subsidiary, whether such Indebtedness or guarantee now exists,
or is created after the date of the Indenture, which default (a) is caused by a
failure to pay principal of, or interest or premium, if any, on such
Indebtedness before the expiration of the grace period provided in such
Indebtedness ("Payment Default") or (b) results in the acceleration of such
Indebtedness prior to its maturity (the "cross acceleration provision") and, in
each case, the principal amount of any such Indebtedness, together with the
principal amount of any other such Indebtedness under which there has been a
Payment Default or the maturity of which has

                                      B-7
<PAGE>

been so accelerated, aggregates $25.0 million or more; (vii) certain events of
bankruptcy, insolvency or reorganization of the Company or a Significant
Subsidiary (other than any Receivables Entity) or group of Restricted
Subsidiaries (other than any Receivables Entity) that, taken together (as of the
latest audited consolidated financial statements for the Company and its
Restricted Subsidiaries), would constitute a Significant Subsidiary (the
"bankruptcy provisions"); (viii) failure by the Company or any Significant
Subsidiary (other than any Receivables Entity) or group of Restricted
Subsidiaries (other than any Receivables Entity) that, taken together (as of the
latest audited consolidated financial statements for the Company and its
Restricted Subsidiaries) would constitute a Significant Subsidiary to pay final
judgments aggregating in excess of $25.0 million (net of any amounts with
respect to which a reputable and creditworthy insurance company has acknowledged
liability in writing), which judgments are not paid, bonded, discharged or
stayed for a period of 60 days (the "judgment default provision") or (ix) any
Subsidiary Guarantee of a Significant Subsidiary or group of Restricted
Subsidiaries that taken together as part of the latest consolidated financial
statements for the Company and its Restricted Subsidiaries would constitute a
Significant Subsidiary ceases to be in full force and effect (except as
contemplated by the terms of the Indenture) or is declared null and void in a
judicial proceeding or any Subsidiary Guarantor that is a Significant Subsidiary
or group of Restricted Subsidiaries that taken together as part of the latest
consolidated financial statements for the Company and its Restricted
Subsidiaries would constitute a Significant Subsidiary denies or disaffirms its
obligations under the Indenture or its Subsidiary Guarantee. However, a default
under clauses (iv) and (v) will not constitute an Event of Default until the
Trustee or the Holders of at least 25% in principal amount of the outstanding
Securities notify the Company of the default and the Company does not cure such
default within the time specified in clauses (iv) and (v) hereof after receipt
of such notice.

                  If an Event of Default occurs and is continuing, the Trustee
or the Holders of at least 25% in principal amount of the Securities may declare
all the Securities to be due and payable immediately. Certain events of
bankruptcy or insolvency are Events of Default which will result in the
Securities being due and payable immediately upon the occurrence of such Events
of Default.

                  Securityholders may not enforce the Indenture or the
Securities except as provided in the Indenture. The Trustee may refuse to
enforce the Indenture or the Securities unless it receives reasonable indemnity
or security. Subject to certain limitations, Holders of a majority in principal
amount of the Securities may direct the Trustee in its exercise of any trust or
power. The Trustee may withhold from Securityholders notice of any continuing
Default or Event of Default (except a Default or Event of Default in payment of
principal or interest) if it determines that withholding notice is in their
interest.

13.      Trustee Dealings with the Company

                  Subject to certain limitations set forth in the Indenture, the
Trustee under the Indenture, in its individual or any other capacity, may become
the owner or pledgee of Securities and may otherwise deal with and collect
obligations owed to it by the Company or its Affiliates and may otherwise deal
with the Company or its affiliates with the same rights it would have if it were
not Trustee.

                                      B-8
<PAGE>

14.      No Recourse Against Others

                  An incorporator, director, officer, employee, stockholder or
controlling person, as such, of each of the Company, or any Subsidiary Guarantor
shall not have any liability for any obligations of the Company under the
Securities, the Indenture or any Subsidiary Guarantees or for any claim based
on, in respect of or by reason of such obligations or their creation. By
accepting a Security, each Securityholder waives and releases all such
liability. The waiver and release are part of the consideration for the issue of
the Securities.

15.      Authentication

                  This Security shall not be valid until an authorized signatory
of the Trustee (or an authenticating agent acting on its behalf) manually signs
the certificate of authentication on the other side of this Security.

16.      Abbreviations

                  Customary abbreviations may be used in the name of a
Securityholder or an assignee, such as TEN COM (= tenants in common), TEN ENT (=
tenants by the entirety), JT TEN (= joint tenants with rights of survivorship
and not as tenants in common), CUST (= custodian) and U/G/M/A (= Uniform Gift to
Minors Act).

17.      CUSIP Numbers

                  Pursuant to a recommendation promulgated by the Committee on
Uniform Security Identification Procedures the Company has caused CUSIP numbers
to be printed on the Securities and has directed the Trustee to use CUSIP
numbers in notices of redemption as a convenience to Securityholders. No
representation is made as to the accuracy of such numbers either as printed on
the Securities or as contained in any notice of redemption and reliance may be
placed only on the other identification numbers placed thereon.

18.      Governing Law

                  This Security shall be governed by, and construed in
accordance with, the laws of the State of New York.

                  The Company will furnish to any Securityholder upon written
request and without charge to the Securityholder a copy of the Indenture which
has in it the text of this Security in larger type. Requests may be made to:

                               Russell Corporation
                      3300 Cumberland Boulevard, Suite 800
                             Atlanta, Georgia 30339
                  Attention: Floyd G. Hoffman, General Counsel

                                      B-9
<PAGE>

                                 ASSIGNMENT FORM

To assign this Security, fill in the form below:

I or we assign and transfer this Security to

          ------------------------------------------------------------
              (Print or type assignee's name, address and zip code)

                 -----------------------------------------------
                  (Insert assignee's soc. sec. or tax I.D. No.)

and irrevocably appoint ____________ agent to transfer this Security on the
books of the Company. The agent may substitute another to act for him.

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

Date:               Your Signature
     -------------                 ---------------------------------------------

Signature Guarantee:
                    ------------------------------------------------------------
                                  (Signature must be guaranteed)

--------------------------------------------------------------------------------
Sign exactly as your name appears on the other side of this Security.

The signature(s) should be guaranteed by an eligible guarantor institution
(banks, stockbrokers, savings and loan associations and credit unions with
membership in an approved signature guarantee medallion program), pursuant to
S.E.C. Rule 17Ad-15.

                                      B-10
<PAGE>

                      [TO BE ATTACHED TO GLOBAL SECURITIES]

              SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY

                  The following increases or decreases in this Global Security
have been made:

<TABLE>
<CAPTION>
                                                                   Principal Amount of      Signature of
                 Amount of decrease in    Amount of increase in    this Global Security     authorized signatory
Date of          Principal Amount of      Principal Amount of      following such           of Trustee or
Exchange         this Global Security     this Global Security     decrease or increase     Securities Custodian
--------         ---------------------    ---------------------    --------------------     --------------------
<S>              <C>                      <C>                      <C>                      <C>

</TABLE>

                                      B-11
<PAGE>

                       OPTION OF HOLDER TO ELECT PURCHASE

                  If you want to elect to have this Security purchased by the
Company pursuant to Section 3.7 or 3.9 of the Indenture, check either box:

                                   [ ]   [ ]
                                   3.7   3.9

                  If you want to elect to have only part of this Security
purchased by the Company pursuant to Section 3.7 or 3.9 of the Indenture, state
the amount in principal amount (must be integral multiple of $1,000): $

Date:                   Your Signature:
     --------------                   ------------------------------------------
      (Sign exactly as your name appears on the other side of the Security)

Signature Guarantee:
                    ------------------------------------------------------------
                                 (Signature must be guaranteed)

The signature(s) should be guaranteed by an eligible guarantor institution
(banks, stockbrokers, savings and loan associations and credit unions with
membership in an approved signature guarantee medallion program), pursuant to
S.E.C. Rule 17Ad-15.

                                      B-12
<PAGE>

                                                                       EXHIBIT C

                          FORM OF SUBSIDIARY GUARANTEE

                  This Supplemental Indenture, dated as of (this "Supplemental
Indenture" or "Guarantee"), among [name of future Subsidiary Guarantor] (the
"Guarantor"), Russell Corporation (together with its successors and assigns, the
"Company"), each other then existing Subsidiary Guarantor under the Indenture
referred to below, and Wachovia Bank, National Association, as Trustee under the
Indenture referred to below.

                              W I T N E S S E T H:

                  WHEREAS, the Company, the Subsidiary Guarantors and the
Trustee have heretofore executed and delivered an Indenture, dated as of April
18, 2002 (as amended, supplemented, waived or otherwise modified, the
"Indenture"), providing for the issuance of an aggregate principal amount of
$250,000,000 of 9.25% Senior Notes due 2010 of the Company (the "Securities");

                  WHEREAS, Section 3.12 of the Indenture provides that unless
such Subsidiary has previously issued a Subsidiary Guarantee which is then in
full force and effect, the Company is required to cause each Subsidiary that
issues a Guarantee in respect of obligations under a Credit Facility to execute
and deliver to the Trustee a Subsidiary Guarantee pursuant to which such
Subsidiary to execute and deliver to the Trustee a Subsidiary Guarantee pursuant
to which such Restricted Subsidiary will unconditionally Guarantee, on a joint
and several basis with the other Subsidiary Guarantors, the full and prompt
payment of the principal of, premium, if any, and interest on the Securities on
a senior basis; and

                  WHEREAS, pursuant to Section 9.1 of the Indenture, the Trustee
and the Company are authorized to execute and deliver this Supplemental
Indenture to amend the Indenture, without the consent of any Securityholder;

                  NOW, THEREFORE, in consideration of the foregoing and for
other good and valuable consideration, the receipt of which is hereby
acknowledged, the Guarantor, the Company, the other Subsidiary Guarantors and
the Trustee mutually covenant and agree for the equal and ratable benefit of the
Holders of the Securities as follows:

                                   ARTICLE I

                                   Definitions

                  SECTION 1.1 Defined Terms. As used in this Subsidiary
Guarantee, terms defined in the Indenture or in the preamble or recital hereto
are used herein as therein defined, except that the term "Holders" in this
Guarantee shall refer to the term "Securityholders" as defined in the Indenture
and the Trustee acting on behalf or for the benefit of such Holders. The words
"herein," "hereof" and "hereby" and other words of similar import used in this

                                      C-1
<PAGE>

Supplemental Indenture refer to this Supplemental Indenture as a whole and not
to any particular section hereof.

                                   ARTICLE II

                        Agreement to be Bound; Guarantee

                  SECTION 2.1 Agreement to be Bound. The Guarantor hereby
becomes a party to the Indenture as a Subsidiary Guarantor and as such will have
all of the rights and be subject to all of the obligations and agreements of a
Subsidiary Guarantor under the Indenture. The Guarantor agrees to be bound by
all of the provisions of the Indenture applicable to a Subsidiary Guarantor and
to perform all of the obligations and agreements of a Subsidiary Guarantor under
the Indenture.

                  SECTION 2.2 Guarantee. The Guarantor hereby fully,
unconditionally and irrevocably guarantees, as primary obligor and not merely as
surety, jointly and severally with each other Subsidiary Guarantor, to each
Holder of the Securities and the Trustee, the full and punctual payment when
due, whether at maturity, by acceleration, by redemption or otherwise, of the
Obligations pursuant to Article X of the Indenture on a senior basis.

                                  ARTICLE III

                                  Miscellaneous

                  SECTION 3.1 Notices. All notices and other communications to
the Guarantor shall be given as provided in the Indenture to the Guarantor, at
its address set forth below, with a copy to the Company as provided in the
Indenture for notices to the Company.

                  SECTION 3.2 Parties. Nothing expressed or mentioned herein is
intended or shall be construed to give any Person, firm or corporation, other
than the Holders and the Trustee, any legal or equitable right, remedy or claim
under or in respect of this Supplemental Indenture or the Indenture or any
provision herein or therein contained.

                  SECTION 3.3 Governing Law. This Supplemental Indenture shall
be governed by, and construed in accordance with, the laws of the State of New
York.

                  SECTION 3.4 Severability Clause. In case any provision in this
Supplemental Indenture shall be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby and such provision shall be ineffective only to the
extent of such invalidity, illegality or unenforceability.

                  SECTION 3.5 Ratification of Indenture; Supplemental Indentures
Part of Indenture. Except as expressly amended hereby, the Indenture is in all
respects ratified and confirmed and all the terms, conditions and provisions
thereof shall remain in full force and effect. This Supplemental Indenture shall
form a part of the Indenture for all purposes, and every Holder of Securities
heretofore or hereafter authenticated and delivered shall be bound hereby.

                                      C-2
<PAGE>

The Trustee makes no representation or warranty as to the validity or
sufficiency of this Supplemental Indenture.

                  SECTION 3.6 Counterparts. The parties hereto may sign one or
more copies of this Supplemental Indenture in counterparts, all of which
together shall constitute one and the same agreement.

                  SECTION 3.7 Headings. The headings of the Articles and the
sections in this Guarantee are for convenience of reference only and shall not
be deemed to alter or affect the meaning or interpretation of any provisions
hereof.

                  IN WITNESS WHEREOF, the parties hereto have caused this
Supplemental Indenture to be duly executed as of the date first above written.

                                             [SUBSIDIARY GUARANTOR],
                                             as a Subsidiary Guarantor

                                             By:
                                                --------------------------------
                                                Name:
                                                Title:

                                             WACHOVIA BANK NATIONAL
                                             ASSOCIATION, as Trustee

                                             By:
                                                --------------------------------
                                                Name:
                                                Title:

                                             RUSSELL CORPORATION

                                             By:
                                                --------------------------------
                                                Name:
                                                Title:

                                            [EXISTING SUBSIDIARY GUARANTORS]

                                             By
                                               ---------------------------------
                                                Title:

                                      C-3

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