Document:

<PAGE>
                                                                  Exhibit 10.69

April 5, 2001

Mr. Robert Dale
25 Partrick Lane
Wilton, Conn. 06897

Dear Bob:

Thanks for meeting with Holcombe and I yesterday. Holcombe felt very comfortable
that you would be a valuable member of the WestPoint Stevens management team. In
view of that discussion, this letter is a confirmation of your acceptance of the
position Senior Vice President Sales and Marketing for WestPoint Stevens. I have
attached a general job description that provides more specifics. Your annual
base compensation will be $250,000. In addition, you will be a participant in
our Management Incentive Program (MIP) at level one which can generate a maximum
payout of 100% of your base pay. The MIP plan has entry levels that begin at a
25% payout. The Plan is base on achieving budgeted annual earnings per share.

In addition to the cash consideration above, the Company will grant you options
to purchase 100,000 shares of WestPoint Stevens common stock at the current
market value. Such options would vest over the next five years with 20,000
shares vesting immediately. The plan allows you the right to exercise vested
options over a 10-year period. Additional options can be awarded each year at
the discretion of the Board of Directors. You will also be eligible to
participate in an additional program referred to as the "Stock Bonus Plan". If
certain predetermined annual earnings per share are achieved, as a participant
you can receive a stock bonus equivalent up to 80% of your base compensation.
The Board of Directors approves this annual earnings target.

To allow you a certain comfort level associated with this type of career change,
we will provide you with an interim severance plan. If WestPoint Stevens
releases you during the first two years of employment, you will be paid a
severance of twelve months salary. In year three and thereafter the amount
becomes six months. If you choose to leave, the Company will not be responsible
for any severance.

Your official start date will be Monday April 16, 2001. Accompanying this letter
is an organizational chart illustrating the direct reports to this position. We
can discuss this further once you review the chart and job description. I wanted
to put something in your
<PAGE>

hands that would act as an aid for questions. Under the right leadership,
WestPoint Stevens will have a very bright future. I am confident that you will
contribute greatly to this process. If you have any immediate questions, I can
be reached at 212-930-3428 (office), 212-842-2758 (N.Y. apt.) or 704-846-7191
(Charlotte). Please feel free to call.

Sincerely,

/s/ M. L. Fontenot
------------------------------------
M. L. Fontenot

Copies:
Holcombe Green<PAGE>
                                                                  Exhibit 10.70

April 9, 2001

Mr. Arthur Birkins
252 Seventh Avenue
Apt. 14 J
New York, N. Y. 10001

Dear Art:

Holcombe and I are looking forward to you becoming a valuable member of the
WestPoint Stevens management team. I personally know that you can add
incremental value to our overall business. Please accept this letter as
confirmation of your acceptance of the position Senior Vice President, Basic
Bedding for WestPoint Stevens. Your annual base compensation will be $225,000.
In addition, you will be a participant in our Management Incentive Program (MIP)
at level one which can generate a maximum payout of 100% of your base pay. The
MIP plan has entry levels that begin at a 25% payout. The Plan is base on
achieving budgeted annual earnings per share. As an added incentive to accept
our position WestPoint Stevens has guaranteed a minimum MIP payout of 30% of
your base compensation or $67,500 payable in the normal MIP pay cycle for the
year 2001.

In addition to the cash consideration above, the Company will grant you options
to purchase 50,000 shares of WestPoint Stevens common stock at the current
market value. Such options would vest over the next five years with 10,000
shares vesting immediately. The plan allows you the right to exercise vested
options over a 10-year period. Additional options can be awarded each year at
the discretion of the Board of Directors. You will also be eligible to
participate in an additional program referred to as the "Stock Bonus Plan". If
certain predetermined annual earnings per share are achieved, as a participant
you can receive a stock bonus equivalent up to 80% of your base compensation.
The Board of Directors approves this annual earnings target.

To allow you a certain comfort level associated with this type of career change,
we will provide you with an interim severance plan. If WestPoint Stevens
releases you during the first two years of employment, you will be paid a
severance of twelve months salary. In year three and thereafter the amount
becomes six months. If you choose to leave, the Company will not be responsible
for any severance. In addition to the severance plan, you will be entitled to
paid vacation in accordance with the policies of the Company as in
<PAGE>

effect with respect to other senior executives, but in no event shall such
vacation time be less than four weeks per calendar year.

Under the right leadership, WestPoint Stevens will have a very bright future. I
am confident that you will contribute greatly to this process. If you have any
immediate questions, I can be reached at 212-930-3428 (office), 212-842-2758
(N.Y. apt.) or 704-846-7191 (Charlotte). Please feel free to call.

Sincerely,

/s/ M. L. Fontenot
------------------------------------
M. L. Fontenot

Copies:
Holcombe Green<PAGE>

                                                                  Exhibit 10.71

                           FIRST AMENDED AND RESTATED
                         RECEIVABLES PURCHASE AGREEMENT

                          dated as of October 31, 2001

                                 by and between

                             WESTPOINT STEVENS INC.,

                            as Seller and as Servicer

                                       and

                          WPS RECEIVABLES CORPORATION,
                                  as Purchaser

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                              Page
                                                                                              ----
<S>                                                                                           <C>
ARTICLE I AGREEMENT TO PURCHASE AND SELL........................................................2
     SECTION 1.1  Agreement to Purchase and Sell................................................2
     SECTION 1.2  Timing of Purchases...........................................................3
     SECTION 1.3  Consideration for Purchases...................................................3
     SECTION 1.4  No Recourse...................................................................3
     SECTION 1.5  No Assumption of Obligations Relating to Receivables,
                        Related Assets or Contracts.............................................4
     SECTION 1.6  True Sales....................................................................4
     SECTION 1.7  Savings Clause................................................................4
     SECTION 1.8  Addition of Sellers...........................................................5
     SECTION 1.9  Termination of Status as a Seller.............................................5

ARTICLE II CALCULATION OF PURCHASE PRICE........................................................6
     SECTION 2.1  Calculation of Purchase Price.................................................6
     SECTION 2.2  Definitions and Calculations Related to Purchase Price Percentage.............7

ARTICLE III  PAYMENT OF PURCHASE PRICE; SERVICING, ETC..........................................8
     SECTION 3.1  Purchase Price Payments.......................................................8
     SECTION 3.2  The WPS Finco Note...........................................................10
     SECTION 3.3  Application of Collections and Other Funds...................................11
     SECTION 3.4  Servicing of Receivables and Related Assets..................................11
     SECTION 3.5  Payments and Computations, Etc...............................................11

ARTICLE IV  CONDITIONS TO PURCHASES............................................................12
     SECTION 4.1  Conditions Precedent to Initial Purchase.....................................12
     SECTION 4.2  Certification as to Representations and Warranties...........................13
     SECTION 4.3  Effect of Payment of Purchase Price..........................................13

ARTICLE V  REPRESENTATIONS AND WARRANTIES......................................................13
     SECTION 5.1  Representations and Warranties of Seller.....................................13
     SECTION 5.2  Representations and Warranties of WPS Finco..................................21

ARTICLE VI  GENERAL COVENANTS OF SELLER........................................................21
     SECTION 6.1  Affirmative Covenants........................................................21
</TABLE>

                                       i
<PAGE>

<TABLE>
<CAPTION>
                                                                                              Page
                                                                                              ----
<S>                                                                                           <C>
     SECTION 6.2  Reporting Requirements.......................................................25
     SECTION 6.3  Negative Covenants...........................................................28

ARTICLE VII ADDITIONAL RIGHTS AND OBLIGATIONS IN RESPECT
            OF THE TRANSFERRED ASSETS..........................................................31
     SECTION 7.1  Rights of WPS Finco..........................................................31
     SECTION 7.2  Responsibilities of Seller...................................................32
     SECTION 7.3  Further Action Evidencing Purchases..........................................32
     SECTION 7.4  Collection of Receivables; Rights of WPS Finco and Its
                         Assignees.............................................................34

ARTICLE VIII TERMINATION.......................................................................35
     SECTION 8.1  Termination by Seller........................................................35
     SECTION 8.2  Automatic Termination........................................................35

ARTICLE IX INDEMNIFICATION.....................................................................35
     SECTION 9.1  Indemnities by Seller........................................................35
     SECTION 9.2.  Contribution................................................................38

ARTICLE X MISCELLANEOUS........................................................................38
     SECTION 10.1  Amendments; Waivers, Etc....................................................38
     SECTION 10.2  Notices, Etc................................................................39
     SECTION 10.3  Cumulative Remedies.........................................................39
     SECTION 10.4  Binding Effect; Assignability; Survival of Provisions.......................39
     SECTION 10.5  Governing Law...............................................................40
     SECTION 10.6  Costs, Expenses and Taxes...................................................40
     SECTION 10.7  Consent to Jurisdiction; Waiver of Immunities...............................40
     SECTION 10.8  Waiver of Jury Trial........................................................41
     SECTION 10.9  Integration.................................................................42
     SECTION 10.10  Execution in Counterparts..................................................42
     SECTION 10.11  Acknowledgment and Consent.................................................42
     SECTION 10.12  No Partnership or Joint Venture............................................43
     SECTION 10.13  No Proceedings.............................................................43
     SECTION 10.14  Severability of Provisions.................................................43
     SECTION 10.15  Recourse to WPS Finco......................................................44
     SECTION 10.16  Confirmation and Ratification of Terms.....................................44
</TABLE>

                                       ii
<PAGE>

                                   ATTACHMENTS

EXHIBIT 3.2                Form of WPS Finco Note

SCHEDULE 5.1(f)            Litigation and Other Proceedings
SCHEDULE 5.1(n)            Offices of the Sellers where Records are Maintained
SCHEDULE 5.1(o)            Lock-Box Banks and Accounts
SCHEDULE 5.1(q)            Legal Names

APPENDIX A                 Definitions

                                      iii

<PAGE>

                  THIS FIRST AMENDED AND RESTATED RECEIVABLES PURCHASE
AGREEMENT (this "Purchase Agreement"), dated as of October 31, 2001, is made by
and between WestPoint Stevens Inc., a Delaware corporation ("WestPoint Stevens"
or "Seller"), WestPoint Stevens, as Servicer and WPS Receivables Corporation, a
Delaware corporation ("WPS Finco"). Except as otherwise specifically provided
herein, capitalized terms used in this Purchase Agreement have the meanings
ascribed to such terms in Appendix A hereto, and this Purchase Agreement shall
be interpreted in accordance with the conventions set forth in Parts B, C and D
of Appendix A.

                               W I T N E S S E T H

                  WHEREAS, Seller and WPS Finco entered into a Receivables
Purchase Agreement, dated as of December 18, 1998 (as amended, the "Original
Purchase Agreement"), pursuant to which Seller agreed to sell Receivables that
it owned on December 18, 1998 and from time to time thereafter owned, to WPS
Finco, and WPS Finco agreed to purchase such Receivables from Seller from time
to time;

                  WHEREAS, WPS Finco continues to own all Receivables
outstanding as of the close of business on October 31, 2001 and conveyed
pursuant to the Original Purchase Agreement (such Receivables, the "Previously
Transferred Receivables");

                  WHEREAS, the parties hereto have agreed to amend and restate
the Original Purchase Agreement in its entirety, subject to the terms and
conditions hereof;

                  WHEREAS, WPS Finco, as Transferor, Seller, as initial
Servicer, Blue Ridge Asset Funding Corporation, as Transferee ("Blue Ridge"),
and Wachovia Bank, N.A., as Administrator (the "Administrator"), entered into an
Asset Interest Transfer Agreement, dated as of December 18, 1998 (as amended,
the "Original AITA"), pursuant to which WPS Finco agreed to sell Receivables
that it owned on December 18, 1998 and from time to time thereafter owned, to
Blue Ridge, and Blue Ridge agreed to purchase such Receivables from WPS Finco
from time to time; and

                  WHEREAS, concurrent with the execution of this Purchase
Agreement, WPS Finco, as Transferor, Seller, as initial Servicer, Blue Ridge,
North American Capacity Insurance Company, as Insurer (the "Insurer"), and the
Adminis-

                                       1
<PAGE>

trator, are entering into a First Amended and Restated Asset Interest Transfer
Agreement (the "Amended and Restated AITA"), pursuant to which the parties
thereto agree to amend and restate the Original AITA, in its entirety, subject
to the terms and conditions thereof.

                  NOW, THEREFORE, for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto,
intending to be legally bound, agree as follows:

                                    ARTICLE I
                         AGREEMENT TO PURCHASE AND SELL

                  SECTION 1.1 Agreement to Purchase and Sell. On the terms and
subject to the conditions set forth in this Purchase Agreement (including the
conditions to purchases set forth in Article IV), Seller agrees to sell,
transfer, assign, set over and otherwise convey, and does hereby sell, to WPS
Finco, and WPS Finco agrees to purchase, and does hereby purchase, from Seller,
at the times set forth in Section 1.2, all of Seller's right, title and interest
in, to and under:

                  (a)      each Receivable of Seller that exists and is owing to
                           Seller as at the closing of Seller's business on the
                           Effective Date (other than the Previously Transferred
                           Receivables),

                  (b)      each Receivable created by Seller that arises during
                           the period from and including the closing of Seller's
                           business on the Effective Date but excluding the
                           Purchase Termination Date,

                  (c)      all Related Security with respect to all Receivables
                           described above,

                  (d)      all proceeds of the foregoing, including all funds
                           received by any Person in payment of any amounts owed
                           (including invoice prices, finance charges, interest
                           and all other charges, if any) in respect of any
                           Receivable described above or Related Security with
                           respect to any such Receivable, or otherwise applied
                           to repay or discharge any such Receivable (including
                           insurance payments that Seller or the Servicer
                           applies in the ordinary course of its business to
                           amounts owed in respect of

                                       2
<PAGE>

                           any such Receivable (it being understood that
                           property insurance covering inventory is not so
                           applied and is not included in this grant) and net
                           proceeds of sale or other disposition of repossessed
                           goods that were the subject of any such Receivable)
                           or other collateral or property of any Obligor or any
                           other party directly or indirectly liable for payment
                           of such Receivables), and

                  (e)      all Records relating to any of the foregoing;
                           provided that the Seller shall be entitled to retain
                           duplicates of such Records.

                  As used herein, (i) "Purchased Receivables" means the items
listed above in clauses (a) and (b) and the Previously Transferred Receivables;
(ii) "Related Assets" means the items listed above in clauses (c), (d) and (e);
and (iii) "Transferred Assets" means the Purchased Receivables and the Related
Assets.

                  SECTION 1.2 Timing of Purchases.

                  (a)      Effective Date Purchases. All of the Transferred
Assets of Seller, other than the Previously Transferred Receivables (which have
been previously transferred to WPS Finco) existing at the closing of its
business on the Effective Date automatically (and without further action by any
Person) shall be sold to WPS Finco on the Effective Date.

                  (b)      Regular Purchases. Except to the extent otherwise
provided in Section 8.2, after the closing of Seller's business on the Effective
Date until the closing of Seller's business on the Business Day immediately
preceding the Purchase Termination Date, each Receivable and the Related Assets
of Seller shall be deemed to have been sold to WPS Finco pursuant hereto
immediately (and without further action by any Person) upon the creation of such
Receivable.

                  SECTION 1.3 Consideration for Purchases. On the terms and
subject to the conditions set forth in this Purchase Agreement, WPS Finco agrees
to make Purchase Price payments to Seller in accordance with Article III.

                  SECTION 1.4 No Recourse. Except as specifically provided in
this Purchase Agreement, the sale and purchase of Transferred Assets under this
Purchase Agreement shall be without recourse to Seller; it being understood that
Seller shall be liable to WPS Finco for all representations, warranties,
covenants and indemnities

                                       3
<PAGE>

made by Seller pursuant to the terms of this Purchase Agreement, all of which
obligations are limited so as not to constitute recourse to Seller for the
credit risk of the Obligors.

                  SECTION 1.5 No Assumption of Obligations Relating to
 Receivables, Related Assets or Contracts. Neither WPS Finco, nor the Servicer,
nor any of their respective assigns, shall have any obligation or liability to
any Obligor or other customer or client of Seller (including any obligation to
perform any of the obligations of Seller under any Receivable, related Contracts
or any other related purchase orders or other agreements). No such obligation or
liability is intended to be assumed hereunder by WPS Finco, the Servicer, or any
of their respective assigns, and any such assumption is expressly disclaimed.

                  SECTION 1.6 True Sales. Seller and WPS Finco intend the
 transfers of Receivables hereunder to be true sales by Seller to WPS Finco that
are absolute and irrevocable and that provide WPS Finco with the full benefits
of ownership of the Receivables, and neither Seller nor WPS Finco intends the
transactions contemplated hereunder to be, or for any purpose to be
characterized as, loans from WPS Finco to Seller.

                  SECTION 1.7 Savings Clause.

                  If, notwithstanding the intention of the parties expressed in
 Section 1.6 above, the conveyance by Seller to WPS Finco of Receivables
hereunder shall be characterized as a secured loan and not a sale, this Purchase
Agreement shall constitute a security agreement under the UCC and other
applicable law. For this purpose, Seller hereby grants WPS Finco a duly
perfected, first priority security interest in all of Seller's right, title and
interest in, to and under the Receivables and the Related Security with respect
thereto, this Purchase Agreement and all proceeds of any thereof, to secure the
timely payment and performance by Seller of all amounts owing to WPS Finco
hereunder and any other obligations owing to WPS Finco hereunder. In the event
this Purchase Agreement shall be characterized as a security agreement and upon
a default by Seller hereunder, WPS Finco and its assignees shall have, in
addition to the rights and remedies which they may have under this Purchase
Agreement, all other rights and remedies provided to a secured creditor after
default under the UCC and other applicable law, which rights and remedies shall
be cumulative.

                                       4
<PAGE>

                  SECTION 1.8 Addition of Sellers. Any Subsidiary of WestPoint
Stevens may become an additional Seller hereunder and sell its accounts
receivable and property of the types that constitute Receivables and Related
Assets hereunder to WPS Finco if the Administrator (on behalf of the Secured
Parties) consents to such addition. WestPoint Stevens and its Subsidiary that is
proposed to be added as a Seller shall give to WPS Finco and the Administrator
no less than forty-five days' prior written notice of the effective date of the
addition of such Subsidiary as a Seller, and such Subsidiary shall provide the
Administrator (on behalf of the Secured Parties) with reasonable access to its
officers and to its books, records and accounting systems to enable the
Administrator to conduct a due diligence review of the accounts receivable and
accounting systems of such Subsidiary. Upon the Administrator granting its
consent to the proposed addition, such addition shall become effective on the
first Business Day following the date on which the Subsidiary and the parties
hereto shall have executed and delivered such agreements, instruments and other
documents and such amendments or other modifications to the Transaction
Documents, in form and substance reasonably satisfactory to WPS Finco, the
Insurer and the Administrator, that WPS Finco, the Insurer or the Administrator
reasonably determines are necessary or appropriate to effect such addition.

                  SECTION 1.9 Termination of Status as a Seller. (a) At any time
when more than one Person is a Seller, a Seller (other than WestPoint Stevens)
may terminate its obligation to sell its Receivables and Related Assets to WPS
Finco if:

                  (i)      such Seller (a "Terminating Seller") shall have given
                           WPS Finco no less than thirty days' prior written
                           notice of such Seller's intention to terminate such
                           obligations;

                  (ii)     an Authorized Officer of the Terminating Seller shall
                           have certified that the termination by the
                           Terminating Seller of its status as a Seller will not
                           have a Material Adverse Effect; and

                  (iii)    both immediately before and after giving effect to
                           such termination by the Terminating Seller, no
                           Liquidation Event or Unmatured Liquidation Event
                           shall have occurred and be continuing or shall
                           reasonably be expected to occur.

                                       5
<PAGE>

                  Any termination by a Seller pursuant to this Section 1.9(a)
shall become effective on the first Business Day that follows the day on which
the requirements of foregoing clauses (a)(i) through (iii) shall have been
satisfied (or such later date specified in the notice or certificate referred to
in such clauses). Any termination by a Seller pursuant to this Section 1.9(a)
shall terminate such Seller's right and obligation to sell Receivables and
Related Assets hereunder to WPS Finco and WPS Finco's agreement, with respect to
such Seller, to purchase such Receivables and Related Assets; provided, however,
that such termination shall not relieve such Seller of any of its other
Obligations, to the extent such Obligations relate to Receivables (and Related
Assets with respect thereto) originated by such Seller prior to the effective
date of such termination.

                  (b)      The right and obligation of a Seller (other than
WestPoint Stevens) to sell its Receivables and Related Assets to WPS Finco shall
terminate immediately if such Seller ceases to be a Subsidiary of WestPoint
Stevens; provided, however, that such termination shall not relieve such Seller
of any of its other Obligations, to the extent such Obligations relate to
Receivables (and Related Assets with respect thereto) originated by such Seller
prior to the effective date of such termination.

                                   ARTICLE II
                          CALCULATION OF PURCHASE PRICE

                  SECTION 2.1 Calculation of Purchase Price. On the Effective
Date, and thereafter on each Reporting Date, the Servicer shall deliver to WPS
Finco, the Administrator and Seller, a Monthly Report with respect to WPS
Finco's purchases of Receivables from Seller

                           (i)      that are to be made on the Effective Date
         (in the case of the Monthly Report to be delivered on the Effective
         Date) or

                           (ii)     that were made in the immediately preceding
         Reporting Period (in the case of each subsequent Monthly Report).

                  In addition, upon 30 days prior notice, the Administrator may
require the Servicer to deliver Interim Reports with respect to WPS Finco's
purchase of Receivables from Seller since the date of the most recent Monthly
Report or Interim Report, provided that Servicer shall not be required to
deliver Interim Reports more

                                       6
<PAGE>

frequently than weekly. On each day when Receivables are purchased by WPS Finco
from Seller pursuant to Article I hereof, the "Purchase Price" to be paid to
Seller on such day (in the case of the Effective Date), or on the next Business
Day for the Receivables and Related Assets that are to be sold by Seller on such
day, shall be determined in accordance with the following formula:

         PP       =        AUB x PPP

         where:

         PP       =        the aggregate Purchase Price for the Receivables and
                           Related Assets purchased from Seller on such day,

         AUB      =        the "Aggregate Unpaid Balance" of the Receivables
                           that are to be purchased from Seller on such day. For
                           purposes of this calculation, "Aggregate Unpaid
                           Balance" shall mean (i) for purposes of calculating
                           the Purchase Price to be paid to Seller on the
                           Effective Date, the sum of the Unpaid Balances of
                           each Receivable generated by Seller, as measured as
                           at the closing of Seller's business on the Effective
                           Date, and (ii) for purposes of calculating the
                           Purchase Price to be paid to Seller on each Business
                           Day thereafter, the sum of the Unpaid Balances of
                           each Receivable to be purchased from Seller on such
                           day, calculated at the time of such Receivable's
                           generation and sale to WPS Finco,

         PPP      =        the Purchase Price Percentage applicable to the
                           Receivables purchased from Seller on such day, as
                           determined pursuant to Section 2.2.

                  SECTION 2.2 Definitions and Calculations Related to Purchase
Price Percentage.

                  (a)      "Purchase Price Percentage" for the Receivables to be
sold by Seller on any day shall mean the percentage determined in accordance
with the following formula:

                                       7
<PAGE>

         PPP      =        100% - PD

         where:

         PPP      =        the Purchase Price Percentage in effect on such day

         PD       =        the Purchase Discount (expressed as a percentage)
                           shall mean for any day, an amount, calculated in good
                           faith by the Purchaser, equal to the product of (A)
                           the sum of (x) the A1-P1 asset backed commercial
                           paper rate for a maturity most closely corresponding
                           to the estimated maturity period of the Receivables,
                           and (y) the greater of (1) 0.25% or (2) the Loss
                           Reserve, and (B) a fraction the numerator of which is
                           the estimated maturity period of the Receivables and
                           the denominator of which is 360, determined pursuant
                           to paragraph (b) below.

                  (b)      The Purchase Price Percentage and the Purchase
Discount shall be recomputed by the Servicer on each Reporting Date, in each
case for the then most recent ended Reporting Period, and such recomputed
amounts shall be used for purposes of calculating the Purchase Price payable to
Seller for Receivables sold to WPS Finco through the next Reporting Date.

                                   ARTICLE III
                   PAYMENT OF PURCHASE PRICE; SERVICING, ETC.

                  SECTION 3.1 Purchase Price Payments.

                  (a)      On the Effective Date and on the Business Day
following each day on which any Receivables are purchased from Seller by WPS
Finco pursuant to Article I hereof, on the terms and subject to the conditions
of this Purchase Agreement, WPS Finco shall pay to Seller the Purchase Price for
the Receivables and Related Assets purchased on such day, by WPS Finco from
Seller by (i) making a cash payment to Seller to the extent that WPS Finco has
cash available to make such payment pursuant to Section 3.3 and (ii)
automatically increasing the principal amount outstanding under Seller's WPS
Finco Note by the amount of the excess of the Purchase Price to be paid to
Seller for such Receivables and Related Assets over the amount of any cash
payment made on such day to Seller.

                                       8
<PAGE>

                  (b)      Non-Complying Receivables and Dilution Adjustment. If
on any day

                           (i)      the Unpaid Balance of any Receivable sold to
WPS Finco by Seller is:

                           (A)      reduced as a result of any defective,
                                    rejected or returned merchandise or
                                    services, any cash discount, incorrect
                                    billings, price rollbacks, freight charge
                                    discrepancies or any other adjustment by
                                    Seller or any Affiliate thereof, or as a
                                    result of any tariff or other governmental
                                    or regulatory action, or

                           (B)      reduced or canceled as a result of a setoff
                                    in respect of any claim by the Obligor
                                    thereof (whether such claim arises out of
                                    the same or a related or an unrelated
                                    transaction), or

                           (C)      reduced on account of the obligation of
                                    Seller or any Affiliate thereof to pay to
                                    the related Obligor any rebate or refund, or

                           (D)      less than the amount reported in the
                                    applicable Monthly Report (for any reason
                                    other than such Receivable being paid by the
                                    Obligor thereof or becoming a Defaulted
                                    Receivable), or

                           (ii)     the representations and warranties made by
Seller in Section 5.1(k) with respect to such Receivable were not true when
made,

then, the Purchase Price payable to Seller on the next Business Day or Days
shall be reduced as follows (such reduction, a "Non-Complying Receivables and
Dilution Adjustment"):

                           (A)      in the case of clause (i) above, in the
                                    amount of such reduction or cancellation or
                                    the difference between the actual Unpaid
                                    Balance and the amount reported in the
                                    applicable Monthly Report, as applicable;
                                    and

                                       9
<PAGE>

                           (B)      in the case of clause (ii) above, in the
                                    amount of the Unpaid Balance of such
                                    Receivable.

                  (c)      If, on any day on or after the Purchase Termination
Date, there is a positive Noncomplying Receivables and Dilution Adjustment and
the principal amount of the WPS Finco Note has been reduced to zero (or Seller
no longer holds the WPS Finco Note), Seller shall pay to WPS Finco in cash the
amount of such Noncomplying Receivables and Dilution Adjustment on the next
succeeding Business Day.

                  SECTION 3.2 The WPS Finco Note.

                  (a)      Pursuant to the Original Purchase Agreement, WPS
Finco delivered to Seller a promissory note, substantially in the form of
Exhibit 3.2, payable to the order of Seller (such promissory note, as the same
may be amended, supplemented, endorsed or otherwise modified from time to time,
together with any promissory note issued from time to time in substitution
therefor or renewal thereof in accordance with the Transaction Documents, the
"WPS Finco Note"), which WPS Finco Note is subordinated to all payments arising
under or in connection with the Original AITA or the Amended and Restated AITA.
The WPS Finco Note is payable in full on the date that is eighteen months after
the Final Payout Date under the Original AITA. The WPS Finco Note bears interest
at a rate per annum equal to the Prime Rate in effect on the most recent
Reporting Date. WPS Finco may prepay all or part of the outstanding balance of
the WPS Finco Note from time to time without any premium or penalty, unless such
prepayment would result in a default in WPS Finco's payment of any other amount
required to be paid by it under any Transaction Document. Notwithstanding the
restatement of the Original Purchase Agreement and the Original AITA, the WPS
Note continues in full force and effect and continues to be subject to the
provisions of this Purchase Agreement and the Amended and Restated AITA.

                  (b)      The Servicer shall hold the WPS Finco Note for the
benefit of Seller, and shall make all appropriate recordkeeping entries with
respect to the WPS Finco Note or otherwise to reflect the payments on and
adjustments thereto. The Servicer's books and records shall constitute
rebuttable presumptive evidence of the principal amount of and accrued interest
on the WPS Finco Note at any time. Seller hereby irrevocably authorizes the
Servicer to mark the WPS Finco Note "CANCELLED" and to return the WPS Finco Note
to WPS Finco upon the final payment thereof.

                                       10
<PAGE>

                  SECTION 3.3 Application of Collections and Other Funds. If, on
any day, WPS Finco receives (a) Collections that it is not required to hold in
trust for, or remit to, the Servicer or the Administrator pursuant to the
Amended and Restated AITA or (b) proceeds or transfers pursuant to the Amended
and Restated AITA, WPS Finco shall apply such funds as follows:

                           (i)      first, to pay its existing expenses and to
         set aside funds for the payment of expenses that are then accrued;

                           (ii)     second, to pay the Purchase Price pursuant
         to Section 3.1 for Receivables and Related Assets purchased by WPS
         Finco from Seller on the Effective Date or in the applicable Reporting
         Period, as the case may be;

                           (iii)    third, to repay amounts owed by WPS Finco to
         Seller under the WPS Finco Note; and

                           (iv)     fourth, to declare and pay dividends to
         Seller to the extent permitted by law.

                  SECTION 3.4 Servicing of Receivables and Related Assets.
Consistent with WPS Finco's ownership, as between the parties to this Purchase
Agreement, of the Receivables and the Related Assets, WPS Finco shall have the
sole right to service, administer and collect the Receivables, to assign such
right and to delegate such right to others. Without limiting the generality of
Section 10.11, Seller hereby acknowledges and agrees that WPS Finco shall assign
to the Administrator (for the benefit of the Secured Parties) the rights and
interests granted by Seller to WPS Finco hereunder and agrees to cooperate fully
with the Servicer and the Administrator in the exercise of such rights. As more
fully described in Section 7.4(b) hereof and in the Amended and Restated AITA,
the Administrator may only exercise such rights in the place of WPS Finco (as
assignee or otherwise) following the designation of a Servicer other than
WestPoint Stevens pursuant to Section 8.01 of the Amended or Restated AITA or
upon the occurrence and during the continuance of a Liquidation Event.

                  SECTION 3.5 Payments and Computations, Etc. All amounts to be
paid by Seller to WPS Finco hereunder shall be paid in accordance with the terms
hereof no later than 2:00 p.m. (New York time) on the day when due in Dollars in
immediately available funds to an account that WPS Finco shall from time to time
specify in writing. Payments received by WPS Finco after such time shall be
deemed to have been received on the next Business Day. In the event that any
payment becomes due on a day which is

                                       11
<PAGE>

not a Business Day, then such payment shall be made on the next succeeding
Business Day. Seller shall, to the extent permitted by law, pay to WPS Finco, on
demand, interest on all amounts not paid when due hereunder at 1.0% per annum
above the interest rate on the WPS Finco Note in effect on the date such payment
was due; provided, however, that such interest rate shall not at any time exceed
the maximum rate permitted by applicable law. All computations of interest
payable hereunder shall be made on the basis of a year of 360 days for the
actual number of days (including the first but excluding the last day) elapsed.

                                   ARTICLE IV
                             CONDITIONS TO PURCHASES

                  SECTION 4.1 Conditions Precedent to Initial Purchase. The
effectiveness of this Purchase Agreement is subject to the conditions precedent
that (i) each of the conditions precedent to the execution, delivery and
effectiveness of the Amended and Restated AITA, the Insurance Policy, and each
other Transaction Document to be executed on the Effective Date (other than a
condition precedent in any such other Transaction Document relating to the
effectiveness of this Purchase Agreement) shall have been fulfilled to the
satisfaction of WPS Finco, and (ii) WPS Finco shall have received (or in the
case of subsection (i) below, shall have delivered) each of the following, on or
before the Effective Date, each (unless otherwise indicated) dated the Effective
Date and each in form and substance satisfactory to WPS Finco:

                           (a)      Resolutions. A copy of the resolutions of
         the Board of Directors of Seller approving this Purchase Agreement and
         the other Transaction Documents to be delivered by Seller hereunder and
         the transactions contemplated hereby and thereby and addressing such
         other matters as may be required by WPS Finco, certified by its
         Secretary or Assistant Secretary, each as of a recent date acceptable
         to WPS Finco;

                           (b)      Good Standing Certificate of Seller;
         Certificates as to Foreign Qualification of Seller. A good standing
         certificate for Seller, issued by the Secretary of State of Delaware
         and of each state in which Seller transacts business, is required to be
         in good standing and where the failure to be in good standing could
         materially and adversely affect the condition (financial or otherwise),
         properties, business or results of operations of Seller, each dated as
         of a recent date;

                                       12
<PAGE>

                           (c)      Incumbency Certificate. A certificate of the
         Secretary or Assistant Secretary of Seller certifying, as of the date
         of this Purchase Agreement, the names and true signatures of the
         officers authorized on Seller's behalf to sign this Purchase Agreement
         and the other Transaction Documents to be delivered by Seller
         hereunder;

                           (d)      Other Transaction Documents. Original
         copies, executed by each of the parties thereto in such reasonable
         number as shall be specified by WPS Finco, of each of the other
         Transaction Documents to be executed and delivered in connection
         herewith; and

                           (e)      Opinions of Counsel. The following opinions
         of counsel each in form and substance satisfactory to WPS Finco:
         opinions of Sutherland, Asbill & Brennan, special New York counsel to
         Seller as to enforceability and UCC validity matters and true sale and
         non-consolidation.

                  SECTION 4.2 Certification as to Representations and
Warranties. Seller, by accepting the Purchase Price paid for each purchase of
Receivables generated by Seller and the Related Assets of Seller, shall be
deemed to have certified, with respect to the Receivables and Related Assets to
be sold by it on such day, that its representations and warranties contained in
Article V (excluding, with respect to any day after the Effective Date, Section
5.1(i)) are true and correct on and as of such day, with the same effect as
though made on and as of such day.

                  SECTION 4.3 Effect of Payment of Purchase Price. Upon the
payment of the Purchase Price (whether in cash or by an increase in the WPS
Finco Note pursuant to Section 3.1) for any Purchase, title to the Receivables
and the Related Assets included in such Purchase shall rest in WPS Finco,
whether or not the conditions precedent to such Purchase were in fact satisfied;
provided, however, that WPS Finco shall not be deemed to have waived any claim
it may have under this Purchase Agreement for the failure by Seller in fact to
satisfy any such condition precedent.

                                    ARTICLE V
                         REPRESENTATIONS AND WARRANTIES

                  SECTION 5.1 Representations and Warranties of Seller. In order
to induce WPS Finco to enter into this Purchase Agreement and to make purchases
hereun-

                                       13
<PAGE>

der, Seller hereby makes the representations and warranties set forth in this
Section 5.1 at the times and to the extent set forth in Section 4.2.

                           (a)      Organization and Good Standing. Seller is a
         corporation duly organized and validly existing in good standing under
         the laws of the State of Delaware and has full power and authority to
         own its properties and to conduct its business as such properties are
         presently owned and such business is presently conducted. Seller had at
         all relevant times, and now has, all necessary power, authority, and
         legal right to own and sell the Receivables and the Related Assets.

                           (b)      Due Qualification. Seller is duly qualified
         to do business and is in good standing as a foreign corporation (or is
         exempt from such requirement), and has obtained all necessary licenses
         and approvals, in all jurisdictions in which the ownership or lease of
         property or the conduct of its business requires such qualification,
         licenses or approvals and where the failure so to qualify, to obtain
         such licenses and approvals or to preserve and maintain such
         qualification, licenses or approvals could reasonably be expected to
         have a Material Adverse Effect.

                           (c)      Power and Authority; Due Authorization.
         Seller has (i) all necessary corporate power and authority to (A)
         execute and deliver this Purchase Agreement and the other Transaction
         Documents to which it is a party, (B) perform its obligations under
         this Purchase Agreement and the other Transaction Documents to which it
         is a party, and (C) sell and assign Receivables and the Related Assets
         on the terms and subject to the conditions herein and therein provided,
         (ii) duly authorized by all necessary corporate action such sale and
         assignment and the execution, delivery, and performance of this
         Purchase Agreement and the other Transaction Documents to which it is a
         party and the consummation of the transactions provided for in this
         Purchase Agreement and the other Transaction Documents to which it is a
         party and (iii) duly executed and delivered this Purchase Agreement and
         each other Transaction Document to which it is a party.

                           (d)      Valid Sale; Binding Obligations. Each sale
         made by Seller pursuant to this Purchase Agreement constitutes a valid
         sale, transfer, and assignment of all of Seller's right, title and
         interest in, to and under the Receivables and the Related Assets of
         Seller to WPS Finco which is perfected and of first priority under the
         UCC and otherwise, enforceable against creditors of, and purchasers
         from, Seller and free and clear of any Adverse Claim (other than any
         Adverse

                                       14
<PAGE>

         Claim arising solely as a result of any action taken by WPS Finco
         hereunder (or by the Administrator on behalf of the Secured Parties
         under the Amended and Restated AITA); and this Purchase Agreement
         constitutes, and each other Transaction Document to which Seller is a
         party constitutes, a legal, valid and binding obligation of Seller,
         enforceable against Seller in accordance with its terms, except as such
         enforceability may be limited by bankruptcy, insolvency, reorganization
         or other similar laws affecting the enforcement of creditors' rights
         generally and by general principles of equity, regardless of whether
         such enforceability is considered in a proceeding in equity or at law.

                           (e)      No Conflict or Violation. The execution,
         delivery and performance of, and the consummation of the transactions
         contemplated by, this Purchase Agreement and the other Transaction
         Documents to be signed by Seller and the fulfillment of the terms
         hereof and thereof will not (i) conflict with, violate, result in any
         breach of any of the terms and provisions of, or constitute (with or
         without notice or lapse of time or both) a default under, (A) the
         Certificate of Incorporation or the Bylaws of Seller or (B) any
         indenture, loan agreement, receivables purchase agreement, mortgage,
         deed of trust, or other material agreement or instrument to which
         Seller is a party or by which it or any of its properties is bound,
         (ii) result in the creation or imposition of any Adverse Claim upon any
         of the Receivables or Related Assets other than pursuant to this
         Purchase Agreement and the other Transaction Documents, or (iii)
         conflict with or violate any federal, state, local or foreign law or
         any decision, decree, order, rule, or regulation applicable to Seller
         or any of its properties of any court or of any federal, state, local
         or foreign regulatory body, administrative agency, or other
         governmental instrumentality having jurisdiction over Seller or any of
         its properties, which conflict, violation, breach or default,
         individually or in the aggregate, could reasonably be expected to have
         a Material Adverse Effect.

                           (f)      Litigation and Other Proceedings. Except as
         described in Schedule 5.1(f) (as Schedule 5.1(f) may be amended or
         supplemented from time to time pursuant to Section 6.2(e)), (i) there
         is no action, suit, proceeding or investigation pending or, to the best
         knowledge of Seller, threatened against Seller before any court,
         regulatory body, arbitrator, administrative agency, or other tribunal
         or governmental instrumentality and (ii) Seller is not subject to any
         order, judgment, decree, injunction, stipulation or consent order of or
         with any court or other government authority, that, in the case of each
         of the foregoing clauses (i) and (ii), (A) asserts the invalidity of
         this Purchase Agreement or any other Transaction Document, (B) seeks to
         prevent the sale of any Receivables or

                                       15
<PAGE>

         Related Assets by Seller to WPS Finco, or the consummation of any of
         the transactions contemplated by this Purchase Agreement or any other
         Transaction Document (C) seeks any determination or ruling that would
         materially and adversely affect the performance by Seller of its
         obligations under this Purchase Agreement or any other Transaction
         Document or the validity or enforceability of this Purchase Agreement
         or any other Transaction Document, (D) seeks to affect adversely the
         income tax attributes of the purchases hereunder or the Seller
         Assignment Certificate, in the case of each of the foregoing whether
         under the United States federal income tax system or any state income
         tax system, or (E) individually or in the aggregate for all such
         actions, suits, proceedings and investigations, could reasonably be
         expected to have a Material Adverse Effect.

                           (g)      Bulk Sales Act. No transaction contemplated
         by this Purchase Agreement or any other Transaction Document requires
         compliance with, or will be subject to avoidance under, any bulk sales
         act or similar law.

                           (h)      Government Approvals. All authorizations,
         consents, orders and approvals of, or other action by, any Governmental
         Authority that are required to be obtained by Seller, and all notices
         to and filings with any Governmental Authority that are required to be
         made by Seller, in the case of each of the foregoing in connection with
         the conveyance of Receivables and Related Assets or the due execution,
         delivery and performance by Seller of this Purchase Agreement or any
         other Transaction Document to which it is a party, and the consummation
         of the transactions contemplated by this Purchase Agreement, have been
         obtained or made and are in full force and effect, except where the
         failure to obtain or to make any such authorization, consent, order,
         approval, notice or filing, individually or in the aggregate for all
         such failures, could not reasonably be expected to have a Material
         Adverse Effect.

                           (i)      Financial Condition. WestPoint Stevens Inc.
         hereby represents that its consolidated balance sheets as at December
         31, 1997, and the related statements of income and shareholders' equity
         of WestPoint Stevens Inc. and its Consolidated Subsidiaries for the
         fiscal year then ended certified by, Ernst & Young, LLP, independent
         certified public accountants, copies of which have been furnished to
         WPS Finco, fairly present the consolidated financial condition and
         business of WestPoint Stevens Inc. and its Consolidated Subsidiaries as
         at such date and the consolidated results of the operations of
         WestPoint Stevens and its Consolidated Subsidiaries for the period
         ended on such date, all in accordance with GAAP consistently applied
         throughout the periods reflected therein, and

                                       16
<PAGE>

         since December 31, 1997 through the date of this Purchase Agreement
         there has been no material adverse change in the condition (financial
         or otherwise), business or operations of Seller;

                           (j)      Margin Regulations. No funds obtained by
         Seller under this Purchase Agreement will be used (i) for a purpose
         that violates or will conflict with or contravene any of Regulations T,
         U and X promulgated by the Board of Governors of the Federal Reserve
         System from time to time or (ii) to acquire any security in any
         transaction that is subject to Section 13 or 14 of the Securities
         Exchange Act of 1934, as amended.

                           (k)      Quality of Title.

                                    (i)      Immediately before each purchase to
                  be made by WPS Finco hereunder, each Receivable and Related
                  Asset of Seller which is then to be transferred to WPS Finco
                  hereunder or thereunder, and the related Contracts, shall be
                  owned by Seller free and clear of any Adverse Claim (other
                  than any Adverse Claim arising solely as the result of any
                  action taken by WPS Finco hereunder or by the Administrator on
                  behalf of the Secured Parties under the Amended and Restated
                  AITA); and Seller shall have made all filings and shall have
                  taken all other action under applicable law in each relevant
                  jurisdiction in order to protect and perfect the ownership
                  interest of WPS Finco and its successors in such Receivables
                  and Related Assets against all creditors of, and purchasers
                  from, Seller.

                                    (ii)     Whenever WPS Finco makes a purchase
                  hereunder, it shall have acquired and shall at all times
                  thereafter continuously maintain a valid and perfected first
                  priority ownership interest in each Transferred Asset, free
                  and clear of any Adverse Claim (other than any Adverse Claim
                  arising solely as the result of any action taken by WPS Finco
                  hereunder or by the Administrator on behalf of the Secured
                  Parties under the Amended and Restated AITA).

                                    (iii)    No currently effective financing
                  statement or other instrument similar in effect that covers
                  all or part of any Receivable, any interest therein or any
                  Related Asset with respect thereto is on file in any recording
                  office except such as may be filed (A) in favor of Seller in
                  accordance with the Contracts, (B) in favor of WPS Finco
                  pursuant to this

                                       17
<PAGE>

                  Purchase Agreement and, (C) in favor of the Administrator for
                  the benefit of the Secured Parties, in accordance with the
                  Amended and Restated AITA.

                                    (iv)     No purchase of an interest in any
                  Receivable or Related Asset of Seller by WPS Finco from Seller
                  constitutes a fraudulent transfer or fraudulent conveyance
                  under the United States Bankruptcy Code or applicable state
                  bankruptcy or insolvency laws or is otherwise void or voidable
                  or subject to subordination under similar laws or principles
                  or for any other reason.

                                    (v)      The purchase of Receivables and
                  Related Assets by WPS Finco from Seller constitutes a true and
                  valid sale of such Receivables and Related Assets under
                  applicable state law and true and valid assignments and
                  transfers for consideration (and not merely a pledge of such
                  Receivables and Related Assets for security purposes),
                  enforceable against the creditors of Seller, and no
                  Receivables or Related Assets transferred to WPS Finco
                  hereunder shall constitute property of Seller.

                           (l)      Eligible Receivables. On the date of each
         Monthly Report or Interim Report which identifies a Receivable as an
         Eligible Receivable, such Receivable is an Eligible Receivable.

                           (m)      Accuracy of Information. All written
         information furnished prior to, on and after the Effective Date by
         Seller or any other WPS Person to WPS Finco, the Servicer or the
         Administrator pursuant to or in connection with any Transaction
         Document or any transaction contemplated herein or therein shall not
         contain any untrue statement of a material fact or omit to state
         material facts necessary to make the statements made not misleading, in
         each case on the date such statement was made and in light of the
         circumstances under which such statements were made or such information
         was furnished.

                           (n)      Offices; Jurisdiction of Organization. The
         principal place of business and chief executive office of Seller is
         located at the address set forth under Seller's signature hereto, the
         offices where Seller keeps all Records and all Contracts, purchase
         orders and agreements related to the Receivables and the Related Assets
         (and all original documents relating thereto) are located at the
         addresses specified in Schedule 5.1(n) and the jurisdiction of
         organization of the Seller is the State of Delaware (or at such other
         locations or jurisdictions, notified

                                       18
<PAGE>

         to the Servicer and the Administrator in accordance with Section 6.1(f)
         or 6.1(o), as applicable, in jurisdictions where all action required
         pursuant to Section 7.3 has been taken and completed).

                           (o)      Lock-Box Banks and Payment Instructions. The
         names and addresses of all Lock-Box Banks and the Concentration Bank,
         together with the account numbers of the Lock-Box Accounts and the
         Concentration Account at such Lock-Box Banks or Concentration Bank (as
         applicable) are accurately identified on Schedule 5.1(o) hereto and
         will be specified in such notices as shall have been delivered
         thereafter pursuant to Section 6.3(c). Each lock-box identified on
         Schedule 5.1(o) is maintained in the name of WPS Finco and is subject
         to a Lock-Box/Collection Account Agreement that is in full force and
         effect and exclusive dominion and control of each such lock-box has
         been transferred to WPS Finco. Seller has not granted any Person, other
         than WPS Finco as contemplated by this Purchase Agreement, any
         currently effective right of dominion and control of any such lock-box
         or Lock-Box Account or the Concentration Account, or the right to take
         dominion and control of any such lock-box or Lock-Box Account or the
         Concentration Account at a future time or upon the occurrence of a
         future event. Seller has instructed all Obligors to submit all payments
         on the Receivables and Related Assets directly to one of the Lock-Box
         Accounts. Seller has and maintains accounting, administrative and
         operating procedures that permit identification of the Collections.

                           (p)      Compliance with Applicable Laws. Seller is
         in compliance in all respects with the requirements of all applicable
         laws, rules, regulations, and orders of all Governmental Authorities
         (federal, state, local or foreign, and including environmental laws), a
         violation of any of which, individually or in the aggregate for all
         such violations, could reasonably be expected to have a Material
         Adverse Effect.

                           (q)      Legal Names. During the past five years (i)
         Seller has not been known by or used any legal name other than its
         corporate name as of the date hereof, and (ii) Seller has not been the
         subject of any merger or other corporate reorganization that resulted
         in a change of name, identity or corporate structure. Seller uses no
         trade names or assumed names other than its actual corporate name and
         the trade names and assumed names set forth in Schedule 5.1(q).

                                       19
<PAGE>

                           (r)      Investment Company Act. Seller is not, and
         is not controlled by, an "investment company" registered or required to
         be registered under the Investment Company Act of 1940, as amended.

                           (s)      Taxes. Seller has filed or caused to be
         filed all material tax returns and reports required by law to have been
         filed by it and has paid all taxes, assessments and governmental
         charges thereby shown to be owing, except any such taxes, assessments
         or charges (i) which are being diligently contested in good faith by
         appropriate proceedings, (ii) for which adequate reserves in accordance
         with GAAP shall have been set aside on its books and (iii) with respect
         to which no Lien has been imposed upon any Receivables or Related
         Assets.

                           (t)      [Intentionally Omitted].

                           (u)      Compliance with Credit and Collection
         Policy. With respect to each Receivable, the Seller has complied in all
         material respects with the Credit and Collection Policy.

                           (v)      Payments to Seller. With respect to each
         Receivable transferred to WPS Finco by Seller pursuant to this Purchase
         Agreement, Seller represents that the Purchase Price paid to it
         constitutes reasonably equivalent value in consideration for the
         Receivables originated by it and the Related Assets with respect
         thereto and such transfer was not made for or on account of antecedent
         debt.

                           (w)      Ownership of WPS Finco. Seller owns,
         directly or indirectly, 100% of the issued and outstanding capital
         stock of WPS Finco, free and clear of any Adverse Claim (other than the
         lien created under (i) that certain Third Amended and Restated Stock
         Pledge Agreement, dated as of March 26, 2001, by and between Seller and
         Bank of America, N.A., as Trustee and (ii) that certain Collateral
         Security Agreement, dated as of June 29, 2001, among Seller, certain
         subsidiaries of Seller and Bankers Trust Company, as Administrative
         Agent). Such capital stock is validly issued, fully paid and
         nonassessable, and there are no options, warrants or other rights to
         acquire securities of WPS Finco.

                           (x)      Material Agreements. The Agreements listed
         on Schedule B to the opinion of Sutherland, Asbill & Brennan of even
         date herewith are all of the agreements relating to the financing of
         the Seller.

                                       20
<PAGE>

                  SECTION 5.2 Representations and Warranties of WPS Finco. From
the date hereof until the Purchase Termination Date, WPS Finco hereby represents
and warrants that (a) (i) this Purchase Agreement has been duly executed and
delivered by WPS Finco and (ii) constitutes WPS Finco's valid, binding and
legally enforceable obligation, except as enforceability may be limited by
bankruptcy, insolvency, reorganization, or other similar laws affecting the
enforcement of creditors' rights generally and by general principles of equity,
regardless of whether such enforceability is considered in a proceeding in
equity or at law, and (b) the execution, delivery and performance of this
Purchase Agreement does not violate any applicable law or any agreement to which
WPS Finco is a party or by which its properties are bound.

                                   ARTICLE VI
                           GENERAL COVENANTS OF SELLER

                  SECTION 6.1 Affirmative Covenants. From the Effective Date
until the first day following the Purchase Termination Date on which all
Obligations of Seller shall have been finally and fully paid and performed and
the Transferee's Total Investment shall have been reduced to zero, unless WPS
Finco, the Administrator and the Insurer shall otherwise give its prior written
consent, Seller hereby agrees that it will perform the covenants and agreements
set forth in this Section 6.1.

                           (a)      Compliance with Laws, Etc. Seller will
         comply with all applicable laws, rules, regulations, judgments, decrees
         and orders (including those relating to the Receivables, the Related
         Assets, the related Contracts and any other agreements related
         thereto), where the failure so to comply, individually or in the
         aggregate for all such failures, could reasonably be expected to have a
         Material Adverse Effect.

                           (b)      Preservation of Corporate Existence. Seller
         will preserve and maintain its corporate existence, rights, franchises
         and privileges in the jurisdiction of its incorporation, and qualify
         and remain qualified in good standing as a foreign corporation in each
         jurisdiction where the failure to preserve and maintain such existence,
         rights, franchises, privileges and qualifications could reasonably be
         expected to have a Material Adverse Effect.

                           (c)      Receivables Reviews. Seller shall, during
         regular business hours upon not less than five Business Days' prior
         notice (unless a Liquidation Event has occurred and is continuing (or
         the Insurer or the Administrator reason-

                                       21
<PAGE>

         ably believes in good faith that a Liquidation Event has occurred and
         is continuing), in which case one Business Day notice shall be
         required), permit WPS Finco or the Administrator and their respective
         agents or representatives, (i) to examine and make copies of and
         abstracts from, and to conduct accounting reviews of, all Records in
         the possession or under the control of Seller relating to the
         Receivables or Related Assets generated by Seller, and (ii) to visit
         the offices and properties of Seller for the purpose of examining such
         materials described in clause (i) next above, and to discuss matters
         relating to any Receivables or any Related Assets of Seller or Seller's
         performance hereunder with any of the Authorized Officers of Seller or,
         with the prior consent of an Authorized Officer of Seller, with
         employees of Seller having knowledge of such matters (the examinations
         set forth in the foregoing clauses (i) and (ii) being herein called a
         "Seller Receivables Review"). WPS Finco or the Administrator and its
         agents or representatives shall be entitled to conduct Seller
         Receivables Reviews whenever WPS Finco or the Administrator, in its
         reasonable judgment, deems a Seller Receivables Review appropriate.
         Seller shall pay the costs and expenses for two such Seller Receivables
         Reviews in the calendar year 2001 and the costs and expenses for one
         such Seller Receivables Review in any other calendar year, and the
         costs and expenses of any additional Seller Receivables Review during
         the calendar year 2001 or any other calendar year shall be paid by WPS
         Finco unless a Liquidation Event shall have occurred and be continuing.

                           (d)      Keeping of Records and Books of Account.
         Seller shall maintain and implement administrative and operating
         procedures (including, an ability to recreate records evidencing its
         Receivables and Related Assets in the event of the destruction of the
         originals thereof), and shall keep and maintain, all documents, books,
         records and other information which, in the reasonable determination of
         WPS Finco and the Administrator, are necessary or advisable in
         accordance with prudent industry practice and custom for transactions
         of this type for the collection of all Receivables and the Related
         Assets. Upon the request of WPS Finco or the Administrator made at any
         time after the occurrence and continuance of a Servicer Transfer Event,
         Seller will deliver copies of all books and records maintained pursuant
         to this Section 6.1(d) to the Administrator. Seller shall maintain at
         all times accurate and complete books, records and accounts relating to
         the Receivables, Related Assets and Contracts and all Collections
         thereon in which timely entries shall be made. Such books and records
         shall be marked to indicate the sales of all Receivables and Related
         Assets hereunder and shall include (i) all payments received and all
         credits and extensions granted with respect to such Receivables and
         (ii) the return, rejection, repossession, or

                                       22
<PAGE>

         stoppage in transit of any merchandise, the sale of which has given
         rise to a Receivable that has been purchased by WPS Finco.

                           (e)      Performance and Compliance with Receivables
         and Contracts. Seller will, at its expense, timely and fully perform
         and comply with all provisions, covenants and other promises required
         to be observed by it under the Contracts and all other agreements of
         Seller related to the Receivables and Related Assets, the breach of
         which provisions, covenants or promises could be reasonably expected to
         have a Material Adverse Effect.

                           (f)      Location of Records and Offices. Seller will
         keep its principal place of business and chief executive office, and
         the offices where it keeps all Records related to the Receivables and
         the Related Assets (and all original documents relating thereto), at
         the addresses referred to in Schedule 5.1(n) or, upon not less than 30
         days' prior written notice given by Seller to WPS Finco, and the
         Administrator, at such other locations in jurisdictions where all
         action required by Section 7.3 shall have been taken and completed.

                           (g)      Credit and Collection Policies. Seller will
         comply in all material respects with its Credit and Collection Policy
         in regard to each Receivable of Seller and the Related Assets and the
         Contracts related to each such Receivable, where the failure so to
         comply, individually or in the aggregate for all such failures, could
         reasonably be expected to have a Material Adverse Effect.

                           (h)      Separate Corporate Existence of WPS Finco.
         Seller hereby acknowledges that the Administrator, on behalf of the
         Secured Parties, is entering into the transactions contemplated by the
         Amended and Restated AITA in reliance upon WPS Finco's identity as a
         legal entity separate from Seller and the other WPS Persons. Therefore,
         from and after the date hereof until the first day following the
         Purchase Termination Date on which all Obligations of Seller and WPS
         Finco shall have been fully paid and performed and the Transferee's
         Total Investment shall have been reduced to zero, Seller will, and will
         cause each other WPS Person to, take all reasonable steps to continue
         their respective identities as separate legal entities and to make it
         apparent to third Persons that each is an entity with assets and
         liabilities distinct from those of WPS Finco and that WPS Finco is not
         a division of the Servicer, Seller or any other Person.

                           (i)      Payment Instructions to Obligors. Seller
         will instruct all Obligors to submit all payments on all Receivables
         and Related Assets purchased

                                       23
<PAGE>

         by WPS Finco either (i) directly to one of the Lock-Box Accounts or
         (ii) directly to the Concentration Account. Seller will cause (i) all
         proceeds deposited directly to any Lock-Box Account to be transferred
         daily to the Concentration Account, and (ii) each such lock-box and
         Lock-Box Account and the Concentration Account to be maintained in the
         name of the WPS Finco and to be subject at all times to a
         Lock-Box/Collection Account Agreement that is in full force and effect.
         Seller shall not grant any Person, other than WPS Finco or the
         Administrator, dominion and control of any such lock-box or Lock-Box
         Account or the Concentration Account, or the right to take dominion or
         control of any lock-box or Lock-Box Account or the Concentration
         Account at a future time or upon the occurrence of a future event.
         Seller shall maintain accounting, administrative and operating
         procedures that permit identification of the Collections.

                           (j)      Taxes. Seller will file all tax returns and
         reports required by law to be filed by it, will accrue in accordance
         with GAAP for all taxes payable by it and will pay all taxes and
         governmental charges shown on such tax returns and reports to be owing
         by it, prior to the date on which penalties attach thereto except any
         such taxes or charges which (i) are being diligently contested in good
         faith by appropriate proceedings, (ii) for which adequate reserves in
         accordance with GAAP have been set aside on their respective books and
         (iii) with respect to which no Lien has been imposed upon any
         Receivables or Related Assets.

                           (k)      [Intentionally Omitted].

                           (l)      Identification of Eligible Receivables.
         Seller will establish and maintain such procedures as are necessary for
         determining monthly whether each Receivable qualifies as an Eligible
         Receivable as of the date of Purchase and thereafter as of each
         Reporting Date, and for identifying all Receivables sold or to be sold
         in that month which are not Eligible Receivables.

                           (m)      Accuracy of Information. All written
         information furnished on and after the Effective Date by Seller or any
         other WPS Person to WPS Finco, the Servicer or the Administrator
         pursuant to or in connection with any Transaction Document or any
         transaction contemplated herein or therein shall not contain any untrue
         statement of a material fact or omit to state material facts necessary
         to make the statements made not misleading, in each case on the date
         such statement was made and in light of the circumstances under which
         such statements were made or such information was furnished.

                                       24
<PAGE>

                           (n)      [Intentionally Omitted].

                           (o)      Ownership Interest of WPS Finco. Seller
         shall take all necessary action to establish and maintain, in favor of
         WPS Finco or its assigns, a valid and perfected first priority
         undivided percentage ownership interest in all Receivables and the
         Related Assets to the full extent contemplated herein, free and clear
         of any Adverse Claims other than Adverse Claims in favor of WPS Finco
         or its assigns (including, without limitation, the filing of all
         financing statements or other similar instruments or documents
         necessary under the UCC of all appropriate jurisdictions (or any
         comparable law) to perfect WPS Finco's or its assign's interest in such
         Receivables and Related Assets and such other action to perfect,
         protect or more fully evidence the interest of WPS Finco or its assigns
         as WPS Finco or its assigns may reasonably request).

                  SECTION 6.2 Reporting Requirements. From the Effective Date
until the first day following the Purchase Termination Date on which all
Obligations of Seller shall have been finally and fully paid and performed and
the Transferee's Total Investment shall have been reduced to zero, Seller agrees
that it will, unless WPS Finco, the Insurer and the Administrator, on behalf of
the Secured Parties, shall otherwise give prior written consent, furnish to WPS
Finco and the Administrator:

                           (a)      Quarterly Financial Statements. Within 50
         days after the end of each of the first three fiscal quarters of each
         fiscal year of WestPoint Stevens, copies of the unaudited consolidated
         balance sheets of WestPoint Stevens and its Consolidated Subsidiaries
         as at the end of such fiscal quarter and the related unaudited
         statements of earnings and cash flows and stockholders' equity, in each
         case for such fiscal quarter and for the period from the beginning of
         such fiscal year through the end of such fiscal quarter, prepared in
         accordance with GAAP consistently applied throughout the periods
         reflected therein and certified (subject to year end adjustments) by
         the chief financial officer or chief accounting officer of WestPoint
         Stevens;

                           (b)      Annual Financial Statements. As soon as
         possible and in any event within 95 days after the end of each fiscal
         year of WestPoint Stevens, a copy of the consolidated balance sheet of
         WestPoint Stevens and its Consolidated Subsidiaries as at the end of
         such fiscal year and the related statements of earnings, stockholders'
         equity and cash flows of WestPoint Stevens and its Consolidated
         Subsidiaries for such fiscal year, setting forth in each case in
         comparative form the corresponding figures for the preceding fiscal
         year and prepared in

                                       25
<PAGE>

         accordance with GAAP consistently applied throughout the periods
         reflected therein, accompanied by an opinion of Ernst & Young, LLP, (or
         such other independent certified public accountants of a nationally
         recognized standing in the United States of America as shall be
         selected by Administrator), which opinion shall not be qualified in any
         material respect;

                           (c)      Liquidation Events. As soon as possible, and
         in any event within three Business Days after an Authorized Officer of
         Seller has obtained knowledge of the occurrence of any Liquidation
         Event or any Unmatured Liquidation Event, a written statement of an
         Authorized Officer of Seller describing such event and the action that
         Seller proposes to take with respect thereto, in each case in
         reasonable detail;

                           (d)      Material Adverse Effect. As soon as possible
         and in any event within three Business Days after an Authorized Officer
         of Seller has knowledge thereof, written notice that describes in
         reasonable detail any event or occurrence which, individually or in the
         aggregate for all such events or occurrences, has had, or that could
         reasonably be expected to have a Material Adverse Effect;

                           (e)      Proceedings. As soon as possible and in any
         event within five Business Days after an Authorized Officer of Seller
         has knowledge thereof, written notice of (i) any litigation,
         investigation or proceeding of the type described in Section 5.1(f) not
         previously disclosed to WPS Finco and (ii) any judgment, settlement or
         other final disposition with respect to any such previously disclosed
         litigation, investigation or proceeding;

                           (f)      [Intentionally Omitted].

                           (g)      [Intentionally Omitted].

                           (h)      Reports to Holders and Exchanges. In
         addition to the reports required by subsections (a), and (b) above,
         promptly upon WPS Finco's request, Seller will furnish to WPS Finco
         copies of any reports specified in such request which Seller sends to
         any of its securityholders, and any reports or registration statements
         that Seller files with the Securities and Exchange Commission or any
         national securities exchange other than registration statements
         relating to employee benefit plans and to registrations of securities
         for selling securities,

                                       26
<PAGE>

                           (i)      ERISA. Promptly after the filing or
         receiving thereof, Seller will furnish to WPS Finco copies of all
         reports and notices with respect to any Reportable Event defined in
         Article IV of ERISA which Seller or any of its Subsidiaries files under
         ERISA with the Internal Revenue Service, the Pension Benefit Guaranty
         Corporation or the U.S. Department of Labor or which Seller or any of
         its Subsidiaries receives from the Pension Benefit Guaranty
         Corporation,

                           (j)      Review of Pool Receivables. As soon as
         available, (i) Seller will furnish to WPS Finco, the Administrator and
         the Insurer copies of all reports relating to audits or reviews of the
         Receivables or the credit and collection policies or practices of
         Seller, whether prepared by Seller, WPS Finco or by an independent
         third party and (ii) and in any event by the end of each fiscal year of
         Seller, Seller will furnish to WPS Finco, the Administrator and the
         Insurer a report, prepared by a Person reasonably acceptable to WPS
         Finco as of the end of such fiscal year, substantially in the form of
         the report delivered pursuant to Section 5.01(l) of the Original AITA
         and covering such other matters as WPS Finco, the Administrator and the
         Insurer may reasonably request in order to protect the interests of WPS
         Finco under or as contemplated by this Purchase Agreement;

                           (k)      Change in Business or Credit and Collection
         Policy. At least ten (10) Business Days prior to its effective date,
         Seller will furnish to WPS Finco, the Administrator and the Insurer
         notice of (i) any material change in the character of Seller's
         business, and (ii) any material change in the Credit and Collection
         Policy;

                           (l)      Ratings. Within one Business Day of
         obtaining knowledge thereof, Seller will furnish to WPS Finco, the
         Administrator and the Insurer notice of any downgrading or withdrawal
         of any rating of Seller's senior secured debt by any rating agency; and

                           (m)      Other. Promptly, from time to time, (i) such
         other information, documents, records or reports respecting the
         Receivables or the Related Assets or (ii) such other publicly available
         information respecting the condition or operations, financial or
         otherwise, of Seller, in each case as WPS Finco may from time to time
         reasonably request in order to protect the interests of WPS Finco, the
         Administrator, Blue Ridge and the other Secured Parties under or as
         contemplated by this Purchase Agreement.

                                       27
<PAGE>

                  SECTION 6.3 Negative Covenants. From the Effective Date until
the first day following the Purchase Termination Date on which all Obligations
of Seller shall have been finally and fully paid and performed and the
Transferee's Total Investment shall have been reduced to zero, unless WPS Finco,
the Insurer and the Administrator shall otherwise give their prior written
consent (which consent shall not be unreasonably withheld or delayed), Seller
hereby agrees that it will perform the covenants and agreements set forth in
this Section 6.3.

                           (a)      Sales, Liens, Etc. Except as otherwise
         provided herein or in the Amended and Restated AITA, Seller will not
         (i) (A) sell, assign (by operation of law or otherwise) or otherwise
         transfer to any Person, (B) pledge any interest in, (C) grant, create,
         incur, assume or permit to exist any Adverse Claim to or in favor of
         any Person upon or with respect to, or (D) cause to be filed any
         financing statement or equivalent document relating to perfection that
         covers, any Transferred Asset or any Contract related to any
         Receivable, or upon or with respect to any Lock-Box Account or
         Concentration Account or any interest therein, (ii) assign to any
         Person any right to receive income from or in respect of any of the
         foregoing or (iii) assert any interest in any Transferred Receivable or
         any Contract relating to any Receivable, except as Servicer.

                           In the event that Seller fails to keep any
         Transferred Assets free and clear of any Adverse Claim (other than
         Adverse Claims arising hereunder or under the Amended and Restated
         AITA, and other Adverse Claims permitted by any other Transaction
         Document), WPS Finco may (without limiting its other rights with
         respect to Seller's breach of its obligations hereunder) make
         reasonable expenditures necessary to release such Adverse Claim. WPS
         Finco shall be entitled to indemnification for any such expenditures
         pursuant to the indemnification provisions of Article IX.
         Alternatively, WPS Finco may deduct such expenditures as an offset to
         the Purchase Price owed to Seller hereunder.

                           (b)      Extension or Amendment of Receivables;
         Change in Credit and Collection Policy or Contracts. Seller will not
         extend, amend or otherwise modify the terms of any Receivable or
         Contract in a manner that materially adversely affects the
         collectibility of any Receivable or WPS Finco's or the Administrator's
         rights therein (except in its capacity as Servicer and then only to the
         extent permitted under Section 8.02(c) of the Amended and Restated
         AITA) or (ii) make or permit to be made any change in the character of
         its business or in the Credit and Collection Policy that would, in
         either case, impair the collectibility of any significant portion of
         the Receivables or otherwise adversely affect the

                                       28
<PAGE>

         interests or remedies of WPS Finco's or the Administrator's rights
         therein unless with respect to any material change in accounting
         policies relating to Receivables, such change is made in accordance
         with GAAP.

                           (c)      Change in Payment Instructions to Obligors.
         Seller will not (i) add or terminate any bank as a Lock-Box Bank from
         those listed on Schedule 5.1(o) unless, prior to any such addition,
         termination or change WPS Finco and the Administrator shall have
         received not less than ten Business Days' prior written notice of such
         addition or termination and, not less than ten Business Days prior to
         the effective date of any such proposed addition, change or
         termination, WPS Finco and the Administrator shall have received (A)
         counterparts of the applicable type of Lock- Box/Collection Account
         Agreement with each new Lock-Box Bank, duly executed by such new
         Lock-Box Bank and all other parties thereto and (B) copies of all other
         agreements and documents signed by such Lock-Box Bank and such other
         parties with respect to any new Lock-Box Account, all of which
         agreements and documents shall be reasonably satisfactory in form and
         substance to WPS Finco and the Administrator, or (ii) make any change
         in its instructions to Obligors, given in accordance with Section
         5.1(o), regarding payments to be made to Seller or payments to be made
         to any Lock-Box Bank or the Concentration Account, other than changes
         in such instructions which direct Obligors to make payments to another
         Lock-Box Account or Concentration Account (as applicable) at such
         Lock-Box or Concentration Bank.

                           (d)      Mergers, Consolidations, Sales, etc. Except
         for mergers or consolidations permitted by the Credit Agreement, Seller
         will not be a party to any merger or consolidation or, except as
         permitted by the Credit Agreement, purchase, lease or otherwise acquire
         (in one transaction or in a series of transactions) all or
         substantially all of the assets of any other Person (whether directly
         by purchase, lease or acquisition of all or substantially all of the
         assets of such Person or indirectly by purchase or other acquisition of
         all or substantially all of the capital stock of such other Person).
         Seller will give WPS Finco and the Administrator notice of any such
         permitted merger or consolidation promptly following completion
         thereof. Seller will not, directly or indirectly, transfer, assign,
         convey or lease, whether in one transaction or in a series of
         transactions, all or substantially all of its assets except as
         permitted by the Credit Agreement, or sell or assign, with or without
         recourse, any Receivables or Related Assets, in each case other than
         pursuant to this Purchase Agreement.

                                       29
<PAGE>

                           (e)      Change in Name; Jurisdiction of
         Organization. Seller will not, nor will it permit WPS Finco to (i)
         change its corporate name, any trade name or corporate structure, or
         its jurisdiction of organization or (ii) change the name under or by
         which it does business in any manner which would or may make any
         financing statement filed by Seller in accordance herewith seriously
         misleading within the meaning of Section 9-506 of an applicable
         enactment of the UCC, in each case unless Seller or WPS Finco (as
         applicable) shall have given WPS Finco, the Servicer and the
         Administrator 30 days' prior written notice thereof and unless, prior
         to any such change in name, Seller shall have taken and completed all
         action required by Section 7.3.

                           (f)      Certificate of Incorporation. Seller will
         not cause WPS Finco to amend its Certificate of Incorporation or Bylaws
         without the prior written consent of WPS Finco and the Administrator,
         which consent will not be unreasonably withheld or delayed.

                           (g)      Amendments to Transaction Documents. Seller
         will not amend or otherwise modify or supplement any Transaction
         Document to which it is a party unless WPS Finco and the Administrator
         (and to the extent required by Section 14.01 of the Amended and
         Restated AITA, the Insurer) shall have given its prior written consent
         to each such amendment, modification or supplement, which consent shall
         not be unreasonably withheld or delayed.

                           (h)      Accounting for Purchases. Seller shall
         prepare its financial statements in accordance with GAAP. Seller shall
         not prepare any financial statements which account for the transactions
         contemplated in this Purchase Agreement in any manner other than as a
         sale of the Purchased Assets by Seller to WPS Finco, or in any other
         respect account for or treat the transactions contemplated in this
         Purchase Agreement (including but not limited to accounting and, where
         taxes are not consolidated, for tax reporting purposes) in any manner
         other than as a sale of the Transferred Assets by Seller to WPS Finco.

                           (i)      Receivables Not to be Evidenced by
         Promissory Notes. Seller shall not take any action to cause or permit
         any Receivable to become evidenced by any "instrument" (as defined in
         the applicable UCC), except in connection with the
         collection of any such Receivable which is overdue provided that the
         original of such instrument is delivered to WPS Finco, duly endorsed.

                                       30
<PAGE>

                           (j)      Deposits to Lock-Box Accounts and
         Concentration account. Seller shall not deposit or otherwise credit, or
         cause or permit to be so deposited or credited, to any Lock-Box Account
         or Concentration Account, any cash or cash proceeds other than
         Collections of Receivables. To the extent that any such funds
         nevertheless are deposited into any of such Lock-box Accounts or
         Concentration Account, the Seller shall promptly identify any such
         funds, or shall cause such funds to be so identified, to WPS Finco, the
         Servicer and the Administrator (following which notice, WPS Finco shall
         cause the Servicer to return all such funds to the Seller).

                                   ARTICLE VII
                      ADDITIONAL RIGHTS AND OBLIGATIONS IN
                        RESPECT OF THE TRANSFERRED ASSETS

                  SECTION 7.1 Rights of WPS Finco.

                  (a)      Subject to Section 7.4(b), Seller hereby authorizes
WPS Finco, the Servicer and/or their respective designees to take any and all
steps in Seller's name and on behalf of Seller that WPS Finco, the Servicer
and/or their respective designees determine are reasonably necessary or
appropriate to collect all amounts due under any and all Transferred Assets,
including endorsing the name of Seller on checks and other instruments
representing Collections and enforcing such Receivables and Related Assets.

                  (b)      Except as set forth in Section 3.1(c) with respect to
Noncomplying Receivables and Dilution Adjustments to the Purchase Price, WPS
Finco shall have no obligation to account for, to replace, to substitute or to
return any Transferred Asset to Seller. WPS Finco shall have no obligation to
account for, or to return Collections, or any interest or other finance charge
collected pursuant thereto, to Seller, irrespective of whether such Collections
and charges are in excess of the Purchase Price for such Purchased Assets.

                  (c)      WPS Finco shall have the unrestricted right to
further assign, transfer, deliver, hypothecate, subdivide or otherwise deal with
the Transferred Assets, and all of WPS Finco's right, title and interest in, to
and under this Purchase Agreement, on whatever terms WPS Finco shall determine,
pursuant to the Amended and Restated AITA or otherwise.

                                       31
<PAGE>

                  (d)      WPS Finco shall have the sole right to retain any
gains or profits created by buying, selling or holding the Transferred Assets
and shall have the sole risk of and responsibility for losses or damages created
by such buying, selling or holding.

                  SECTION 7.2 Responsibilities of Seller. Anything herein to the
contrary notwithstanding:

                           (a)      Seller agrees to deliver directly to the
         Servicer (for WPS Finco's account), within one Business Day after
         receipt thereof, any Collections that it receives, in the form so
         received, and agrees that all such Collections shall be deemed to be
         received in trust for WPS Finco and shall be maintained and segregated
         separate and apart from all other funds and moneys of Seller until
         delivery of such Collections to the Servicer.

                           (b)      Seller shall perform all of its obligations
         hereunder and under the Contracts related to the Receivables and
         Related Assets to the same extent as if such Receivables had not been
         sold hereunder, and the exercise by WPS Finco or its designee or
         assignee of WPS Finco's rights hereunder or in connection herewith
         shall not relieve Seller from any of its obligations under the
         Contracts or Related Assets related to the Receivables.

                           (c)      Seller hereby grants to WPS Finco an
         irrevocable power of attorney, with full power of substitution, coupled
         with an interest, to take in the name of Seller all steps necessary or
         advisable to endorse, negotiate or otherwise realize on any writing or
         other right of any kind held or transmitted by Seller or transmitted or
         received by WPS Finco (whether or not from Seller) in connection with
         any Transferred Asset.

                           (d)      To the extent that Seller does not own the
         computer software that Seller uses to account for Receivables, Seller
         shall use reasonable efforts to provide WPS Finco and the Administrator
         with such licenses, sublicenses and/or assignments of contracts as WPS
         Finco or the Administrator shall require with regard to all services
         and computer hardware or software used by Seller that relate to the
         servicing of the Receivables or the Related Assets.

                  SECTION 7.3 Further Action Evidencing Purchases. Seller agrees
that from time to time, at its expense, it will promptly, upon reasonable
request, execute and deliver all further instruments and documents, and take all
further action, in order to perfect, protect or more fully evidence the purchase
by WPS Finco of the Receivables and

                                       32
<PAGE>

the Related Assets under this Purchase Agreement, or to enable WPS Finco to
exercise or enforce any of its rights hereunder or under any other Transaction
Document. Seller further agrees that from time to time, at its expense, it will
promptly, upon request, take all action that WPS Finco, the Servicer or the
Administrator may reasonably request in order to perfect, protect or more fully
evidence such purchase of the Receivables and the Related Assets or to enable
WPS Finco or the Administrator, on behalf of the Secured Parties, to exercise or
enforce any of its rights hereunder or under any other Transaction Document.
Without limiting the generality of the foregoing, upon the request of WPS Finco,
Seller will:

                           (a)      execute and file such financing or
         continuation statements, or amendments thereto or assignments thereof,
         and such other instruments or notices, as WPS Finco or the
         Administrator may reasonably determine to be necessary or appropriate;
         and

                           (b)      place on its computer systems and records
         which store information relating to and evidencing the Receivables the
         following legend:

                  "THE RECEIVABLES DESCRIBED HEREIN HAVE BEEN SOLD TO WPS
                  RECEIVABLES CORPORATION PURSUANT TO A FIRST AMENDED AND
                  RESTATED RECEIVABLES PURCHASE AGREEMENT, DATED AS OF OCTOBER
                  31, 2001, BETWEEN WESTPOINT STEVENS INC. AND WPS RECEIVABLES
                  CORPORATION; AND SUCH RECEIVABLES HAVE BEEN TRANSFERRED TO
                  WACHOVIA BANK, N.A., AS ADMINISTRATOR ON BEHALF OF THE SECURED
                  PARTIES PURSUANT TO THE FIRST AMENDED AND RESTATED ASSET
                  INTEREST TRANSFER AGREEMENT, DATED AS OF OCTOBER 31, 2001,
                  AMONG WPS RECEIVABLES CORPORATION, AS TRANSFEROR, WESTPOINT
                  STEVENS INC., AS INITIAL SERVICER, BLUE RIDGE ASSET FUNDING
                  CORPORATION, AS TRANSFEREE, NORTH AMERICAN CAPACITY INSURANCE
                  COMPANY, AS INSURER AND WACHOVIA BANK, N.A., AS
                  ADMINISTRATOR."

                  Seller hereby authorizes WPS Finco or its designee to file a
record or records, including without limitation, one or more financing or
continuation statements, and amendments thereto and assignments thereof,
relative to all or any of the Receivables

                                       33
<PAGE>

and Related Assets of Seller, in each case whether now existing or hereafter
generated by Seller. Except for material performance obligations of Seller to
any Obligor hereunder or under any of the Contracts, if (i) Seller fails to
perform any of its agreements or obligations under this Purchase Agreement and
does not remedy such failure within the applicable cure period, if any, and (ii)
WPS Finco in good faith reasonably believes that the performance of such
agreements and obligations is necessary or appropriate to protect the interests
of WPS Finco under this Purchase Agreement, then WPS Finco or its designee may
(but shall not be required to) perform, or cause performance of, such agreement
or obligation and the reasonable expenses of WPS Finco or its designee or
assignee incurred in connection with such performance shall be payable by Seller
as provided in Section 9.1.

                  SECTION 7.4 Collection of Receivables; Rights of WPS Finco and
Its Assignees.

                  (a)      Seller hereby transfers to WPS Finco ownership of,
and the exclusive dominion and control over, each of the Lock-Box Accounts owned
by Seller, and Seller hereby agrees to take any further action that WPS Finco or
the Administrator (as assignee of WPS Finco) may reasonably request in order to
effect or complete such transfer.

                  (b)      WPS Finco may, at any time, direct the Obligors of
Receivables, or any of them, to pay all amounts payable under any Transferred
Asset directly to the Administrator or its designees. Furthermore, Seller shall,
at the request of WPS Finco and at Seller's expense, promptly give notice of
Blue Ridge's interest in the Receivables of such Obligor and the Related Assets
to each such Obligor and direct that payments be made directly to the
Administrator or its designee, which notice shall be acceptable in form and
substance to WPS Finco. In addition, Seller hereby authorizes WPS Finco to take
any and all steps in Seller's name and on behalf of Seller that are necessary or
desirable, in the reasonable determination of WPS Finco, to collect all amounts
due under any and all Transferred Assets, including endorsing Seller's name on
checks and other instruments representing Collections and enforcing the
Receivables, Related Assets and the Contracts related to such Receivables. The
Administrator, on the Secured Parties behalf, may exercise any of the foregoing
rights in the place of WPS Finco (as assignee or otherwise) at any time
following the designation of a Servicer other than WestPoint Stevens pursuant to
Section 8.01 of the Amended and Restated AITA or the occurrence and continuance
of a Liquidation Event.

                  (c)      At any time when (i) a Liquidation Event shall have
occurred and remain continuing or (ii) a Servicer other than WestPoint Stevens
has been designated

                                       34
<PAGE>

pursuant to Section 8.01 of the Amended and Restated AITA, Seller shall, at WPS
Finco's request, assemble all of the Records which evidence the Receivables and
Related Assets originated by Seller and the Contracts related to such
Receivables, or which are otherwise necessary or desirable to collect such
Receivables or Related Assets, and make the same available to WPS Finco, the
Insurer or the Administrator at a place selected by the Administrator, the
Insurer or its respective designee.

                                  ARTICLE VIII
                                   TERMINATION

                  SECTION 8.1 Termination by Seller. Prior to the Termination
Date, Seller may terminate its agreement to sell Receivables hereunder to WPS
Finco by giving WPS Finco, the Insurer and the Administrator not less than
thirty Business Days' prior written notice of Seller's election not to continue
to sell Receivables to WPS Finco. Upon receipt of a termination notice from
Seller, WPS Finco shall notify the Administrator, the Insurer and Blue Ridge
that it is electing to reduce the Transferee's Total Investment to zero pursuant
to Section 3.02 of the Amended and Restated AITA as early as is practicable. The
sale of Receivables under this Purchase Agreement will not cease until the
Transferee's Total Investment shall have been reduced to zero.

                  SECTION 8.2 Automatic Termination. The agreement of Seller to
sell Receivables hereunder, and the agreement of WPS Finco to purchase
Receivables from Seller hereunder, shall terminate automatically as a result of
a bankruptcy proceeding being filed by or against Seller or WPS Finco.

                                   ARTICLE IX
                                 INDEMNIFICATION

                  SECTION 9.1 Indemnities by Seller. Without limiting any other
rights which any RPA Indemnified Party (as defined below) may have hereunder or
under applicable law, Seller severally agrees to indemnify WPS Finco, each of
its successors, permitted transferees and assigns (including, for this purpose,
the assignment made pursuant to Section 11.03 of the Insurance Policy to the
Insurer), and all officers, directors, shareholders, controlling Persons,
employees and agents of any of the foregoing (each of the foregoing Persons
being individually called a "RPA Indemnified Party"), forthwith on demand, from
and against any and all damages, losses, claims (whether on account of
settlements or otherwise), judgments, liabilities and related reasonable costs

                                       35
<PAGE>

and expenses (including reasonable attorneys' fees and disbursements) awarded
against or incurred by any of them arising out of or as a result of any of the
following (all of the foregoing being collectively called "RPA Indemnified
Losses"):

                           (a)      any representation or warranty made in
         writing by Seller (or any of its Authorized Officers) under or in
         connection with any of the Transaction Documents, any Monthly Report,
         any Interim Report or any other information or report delivered by
         Seller or the Servicer (for so long as the Servicer is a WPS Person)
         shall have been false, incorrect or materially misleading when made or
         deemed made or omitted to state material facts necessary to make the
         statements made not misleading;

                           (b)      the failure by Seller to comply with any
         applicable law, rule or regulation with respect to any Receivable or
         any Related Asset or to comply with any Contract related thereto, or
         the nonconformity of any Receivable, the related Contract or any
         Related Assets with any such applicable law, rule or regulation;

                           (c)      the failure to vest and maintain vested in
         WPS Finco and its assigns a first priority perfected ownership interest
         in the Receivables, the Related Assets, the related Collections and the
         proceeds of each of the foregoing, free and clear of any Adverse Claim
         (other than an Adverse Claim created in favor of WPS Finco pursuant to
         this Purchase Agreement or in favor of the Administrator on behalf of
         the Secured Parties pursuant to the Amended and Restated AITA), whether
         existing at the time of the sale of such Receivable or at any time
         thereafter;

                           (d)      any failure of Seller to perform its duties
         or obligations in accordance with the provisions of the Transaction
         Documents;

                           (e)      any products liability claim, personal
         injury or property damage suit, environmental liability claim or any
         other claim or action by a party other than WPS Finco or a WPS Person
         of whatever sort, whether sounding in tort, contract or any other legal
         theory, arising out of or in connection with the goods or services that
         are the subject of any Receivable or the Related Assets with respect
         thereto or Collections thereof;

                           (f)      the failure to file, or any delay in filing,
         financing statements or other similar instruments or documents under
         the UCC of any applicable jurisdic-

                                       36
<PAGE>

         tion or other applicable laws with respect to any Receivables or the
         Related Assets or Collections, whether at the time of any sale or at
         any subsequent time;

                           (g)      any dispute, claim, offset or defense (other
         than the discharge in bankruptcy) of an Obligor to the payment of any
         Receivable or Related Asset, or Related Asset, including a defense
         based on such Receivable's or the related Contract's not being a legal,
         valid and binding obligation of such Obligor enforceable against it in
         accordance with its terms or any other claim resulting from the sale of
         the merchandise or services related to such Receivable or the
         furnishing or failure to furnish such merchandise or services;

                           (h)      any tax or governmental fee or charge (other
         than franchise taxes and taxes on or measured by the net income of WPS
         Finco or any of its assignees), all interest and penalties thereon or
         with respect thereto, and all reasonable out-of-pocket costs and
         expenses, including the reasonable fees and expenses of counsel in
         defending against the same, which may arise by reason of the purchase
         or ownership of the Receivables or any Related Asset connected with any
         such Receivables or in any goods which secure any such Receivable or
         Related Asset;

                           (i)      any transfer by Seller of any interest in
         any Receivable other than the transfer of Receivables and related
         property by the Seller to WPS Finco pursuant to this Purchase
         Agreement; and

                           (j)      any claim of breach by any Seller of any
         related Contract with respect to any Receivable.

Notwithstanding the foregoing (and with respect to clause (ii) below, without
prejudice to the rights that WPS Finco may have pursuant to the other provisions
of this Purchase Agreement or the provisions of any of the other Transaction
Documents), in no event shall any RPA Indemnified Party be indemnified for any
RPA Indemnified Losses (i) resulting from gross negligence or willful misconduct
on the part of such RPA Indemnified Party, (ii) to the extent the same includes
losses in respect of Receivables and reimbursement therefor that would
constitute credit recourse to Seller for the amount of any Receivable or Related
Asset not paid by the related Obligor, (iii) resulting from the action or
omission of the Servicer (unless the Servicer is a WPS Person), (iv) to the
extent that the same are or result from lost profits (except to the extent any
such lost profits are incurred under Sections 4.02 or 4.03 of the Amended and
Restated AITA), (v) to the

                                       37
<PAGE>

extent the same are or result from taxes on or measured by the net income of
such RPA Indemnified Party and (vi) to the extent the same constitute
consequential, special or punitive damages (except to the extent any such
consequential, special or punitive damages are actually imposed on an RPA
Indemnified Party as a result of a claim brought by a third party).

                  SECTION 9.2. Contribution. If for any reason the
indemnification provided in Section 9.1 is unavailable to a RPA Indemnified
Party or is insufficient to hold a RPA Indemnified Party harmless, then Seller
shall contribute to the maximum amount payable or paid to such RPA Indemnified
Party as a result of such loss, claim, damage or liability in such proportion as
is appropriate to reflect not only the relative benefits received by such RPA
Indemnified Party on the one hand and Seller on the other hand, but also the
relative fault of such RPA Indemnified Party (if any) and Seller and any other
relevant equitable considerations.

                                    ARTICLE X
                                  MISCELLANEOUS

                  SECTION 10.1 Amendments; Waivers, Etc.

                  (a)      The provisions of this Purchase Agreement may from
time to time be amended, modified or waived, if such amendment, modification or
waiver is in writing and signed by WPS Finco and Seller (with respect to an
amendment) or by WPS Finco (with respect to a waiver or consent by it) and
consented to by the Administrator and the Insurer, provided, however, that the
Insurer shall not withhold its consent to any such amendment, waiver or consent
(or in respect of any other provision hereof that requires its consent or
approval) unless it determines, in good faith, that it would be materially and
adversely affected by such amendment, waiver, consent or approval; and provided,
further, that if the Insurer elects not to consent to any proposed amendment,
waiver or other modification, the appropriate parties may nonetheless make such
amendment, waiver or other modification upon further written notice to the
Insurer of their decision to proceed without the consent of the Insurer and, in
such event, the Insurer may terminate the Insurance Policy in accordance with
Article 16 thereof. Any amendment, waiver or consent effected in accordance with
the terms hereof shall be effective only in the specific instance and for the
specific purpose for which given.

                  (b)      No failure or delay on the part of WPS Finco, any RPA
Indemnified Party, or the Administrator or any other third party beneficiary
referred to in Section

                                       38
<PAGE>

10.12(a) in exercising any power or right hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any such power or right
preclude any other or further exercise thereof or the exercise of any other
power or right. No notice to or demand on Seller in any case shall entitle it to
any notice or demand in similar or other circumstances. No waiver or approval by
WPS Finco, the Insurer or the Administrator under this Purchase Agreement shall,
except as may otherwise be stated in such waiver or approval, be applicable to
subsequent transactions. No waiver or approval under this Purchase Agreement
shall require any similar or dissimilar waiver or approval thereafter to be
granted hereunder.

                  SECTION 10.2 Notices, Etc. All notices and other
communications provided for hereunder shall, unless otherwise stated herein, be
in writing (including facsimile communication) and shall be personally delivered
or sent by express mail or courier or by certified mail, postage prepaid, or by
facsimile, to the intended party at the address or facsimile number of such
party set forth under its name on the signature pages hereof or at such other
address or facsimile number as shall be designated by such party in a written
notice to the other parties hereto given in accordance with this Section 10.2.
Copies of all notices and other communications provided for hereunder shall be
delivered to the Administrator and the Insurer at its respective address for
notices set forth in the Amended and Restated AITA. All notices and
communications provided for hereunder shall be effective, (a) if personally
delivered, or sent by express mail or courier or if sent by certified mail, when
received, and (b) if transmitted by facsimile, when sent, receipt confirmed by
telephone or electronic means.

                  SECTION 10.3 Cumulative Remedies. The remedies herein provided
are cumulative and not exclusive of any remedies provided by law. Without
limiting the foregoing, Seller hereby authorizes WPS Finco, at any time and from
time to time, to the fullest extent permitted by law, to set-off, against any
Obligations of WPS Finco to Seller that are then due and payable or that are not
then due and payable by WPS Finco to Seller but have then accrued, any and all
indebtedness or other obligations (i) at any time owing to WPS Finco by Seller
or (ii) that are not then due and payable from WPS Finco to Seller but have then
accrued.

                  SECTION 10.4 Binding Effect; Assignability; Survival of
Provisions. This Purchase Agreement shall be binding upon and inure to the
benefit of WPS Finco, Seller and their respective successors and permitted
assigns. Seller may not assign any of its rights hereunder or any interest
herein without the prior written consent of WPS Finco, the Insurer and the
Administrator (on behalf of the Secured Parties). This Purchase Agreement shall
create and constitute the continuing obligations of the parties hereto in

                                       39
<PAGE>

accordance with its terms, and shall remain in full force and effect until the
earlier of (i) the first date following the Purchase Termination Date, (ii) the
date on which the Transferee's Total Investment shall have been reduced to zero
pursuant to Section 3.02 of the Amended and Restated AITA, and all Obligations
of Seller hereunder shall have been finally and fully paid and performed and
(iii) such other later time as the parties hereto shall agree. The rights and
remedies with respect to any breach of any representation and warranty made by
Seller pursuant to Article V and the indemnification and payment provisions of
Article IX and Section 10.6 shall be continuing and shall survive any
termination of this Purchase Agreement.

                  SECTION 10.5 Governing Law. THIS PURCHASE AGREEMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THAT WOULD REQUIRE THE
APPLICATION OF THE LAWS OF A JURISDICTION OTHER THAN SUCH STATE, EXCEPT TO THE
EXTENT THAT THE PERFECTION OF THE INTERESTS OF WPS FINCO IN THE RECEIVABLES AND
THE RELATED ASSETS ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE
STATE OF NEW YORK.

                  SECTION 10.6 Costs, Expenses and Taxes. In addition to the
obligations of Seller under Article IX, Seller, severally with respect to
itself, agrees to pay on demand:

                           (a)      all reasonable out-of-pocket and other costs
         and expenses in connection with the enforcement of this Purchase
         Agreement, the Seller Assignment Certificate or the other Transaction
         Documents by WPS Finco or any successor in interest to WPS Finco; and

                           (b)      all stamp and other taxes and fees payable
         or determined to be payable in connection with the execution and
         delivery by Seller, and the filing and recording, of this Purchase
         Agreement or the other Transaction Documents, and agrees to indemnify
         each RPA Indemnified Party against any liabilities with respect to or
         resulting from any delay in paying or the omission to pay such taxes
         and fees.

                  SECTION 10.7 Consent to Jurisdiction; Waiver of Immunities.
EACH PARTY HERETO HEREBY ACKNOWLEDGES AND AGREES THAT:

                                       40
<PAGE>

                           (A)      IT IRREVOCABLY (I) SUBMITS TO THE
JURISDICTION, FIRST, OR ANY UNITED STATES FEDERAL COURT, AND SECOND, IF FEDERAL
JURISDICTION IS NOT AVAILABLE, OF ANY GEORGIA STATE COURT, IN EITHER CASE,
SITTING IN FULTON COUNTY, GEORGIA, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS PURCHASE AGREEMENT OR ANY OTHER TRANSACTION DOCUMENT, (II)
AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND
DETERMINED ONLY IN SUCH GEORGIA STATE OR FEDERAL COURT AND NOT IN ANY OTHER
COURT, (III) WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO, THE DEFENSE
OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING, (IV)
CONSENTS TO THE SERVICE OF ANY AND ALL PROCESS IN ANY SUCH ACTION OR PROCEEDING
BY THE MAILING OF COPIES OF SUCH PROCESS TO SUCH PERSON AT ITS ADDRESS SPECIFIED
FOR NOTICES HEREUNDER, AND (V) TO THE EXTENT ALLOWED BY LAW, AGREES 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.

                           (B)      TO THE EXTENT THAT IT HAS OR HEREAFTER MAY
ACQUIRE ANY IMMUNITY FROM THE JURISDICTION OF ANY COURT OR FROM ANY LEGAL
PROCESS (WHETHER THROUGH SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT,
ATTACHMENT IN AID TO EXECUTION, EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF
OR ITS PROPERTY, IT HEREBY WAIVES SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS
UNDER OR IN CONNECTION WITH THIS PURCHASE AGREEMENT.

                  SECTION 10.8 Waiver of Jury Trial. EACH PARTY HERETO EXPRESSLY
WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR
DEFEND ANY RIGHTS UNDER OR RELATING TO THIS PURCHASE AGREEMENT, ANY OTHER
TRANSACTION DOCUMENT, OR ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT
DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR
THEREWITH OR ARISING FROM ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS
(WHETHER VERBAL OR WRITTEN), ACTIONS OF EITHER OF THE PARTIES HERETO OR ANY
OTHER RELATIONSHIP EXISTING IN CONNEC-

                                       41
<PAGE>

TION WITH THIS PURCHASE AGREEMENT OR ANY OTHER TRANSACTION DOCUMENT, AND AGREES
THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE
A JURY.

                  SECTION 10.9 Integration. This Purchase Agreement and the
other Transaction Documents contain a final and complete integration of all
prior expressions by the parties hereto with respect to the subject matter
hereof and thereof and shall together constitute the entire agreement between
the parties hereto with respect to the subject matter hereof and thereof,
superseding all prior oral or written understandings.

                  SECTION 10.10 Execution in Counterparts. This Purchase
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 all of which when taken together shall constitute one and
the same agreement.

                  SECTION 10.11 Acknowledgment and Consent.

                  (a)      Seller acknowledges that, contemporaneously herewith,
WPS Finco is selling, transferring, assigning, setting over and otherwise
conveying to the Administrator on behalf of the Secured Parties an Asset
Interest in the outstanding pool of Receivables and Related Assets sold by
Seller to WPS Finco from time to time pursuant to this Purchase Agreement and
that the Administrator may further assign such Asset Interest to the Insurer
pursuant to the Insurance Policy. Seller hereby consents to the sale, transfer,
assignment, set over and conveyance to the Administrator on behalf of the
Secured Parties by WPS Finco, and by the Administrator to the Insurer, of the
Asset Interest, and all of WPS Finco's rights, remedies, powers and privileges,
and all claims of WPS Finco against Seller, under or with respect to this
Purchase Agreement and the other Transaction Documents (whether arising pursuant
to the terms of this Purchase Agreement or otherwise available at law or in
equity), including (i) the right of WPS Finco, at any time, to enforce this
Purchase Agreement against Seller and the obligations of Seller hereunder, and
(ii) the right, at any time, to give or withhold any and all consents, requests,
notices, directions, approvals, demands, extensions or waivers under or with
respect to this Purchase Agreement, any other Transaction Document or the
obligations in respect of Seller thereunder to the same extent as WPS Finco may
do. Each of the parties hereto acknowledges and agrees that the Administrator
(on behalf of the Secured Parties), the Insurer and Blue Ridge are third party
beneficiaries of the rights of WPS Finco arising hereunder and under the other
Transaction Documents to which Seller is a party. Seller hereby acknowledges and
agrees that it has no claim to or interest in any of the Lock-Box Accounts or
the Concentration Account.

                                       42
<PAGE>

                  (b)      Seller hereby agrees to execute all agreements,
instruments and documents, and to take all other action, that WPS Finco, the
Insurer or the Administrator reasonably determines is necessary or appropriate
to evidence its consent described in paragraph (a) above. To the extent that WPS
Finco, individually or through the Servicer, has granted or grants powers of
attorney to the Administrator under the Amended and Restated AITA, Seller hereby
grants a corresponding power of attorney on the same terms to WPS Finco. Seller
hereby acknowledges and agrees that WPS Finco, in all of its capacities, shall
assign to the Administrator for the benefit of the Secured Parties such powers
of attorney and other rights and interests granted by Seller to WPS Finco
hereunder and that the Administrator may further assign such rights and
interests to the Insurer and agrees to cooperate fully with the Administrator
and the Insurer in the exercise of such rights.

                  SECTION 10.12 No Partnership or Joint Venture. Nothing
contained in this Purchase Agreement shall be deemed or construed by the parties
hereto or by any third person to create the relationship of principal and agent
or of partnership or of joint venture.

                  SECTION 10.13 No Proceedings. Seller hereby agrees that it
will not institute against WPS Finco or Blue Ridge, or join any other Person in
instituting against WPS Finco or Blue Ridge, any insolvency or bankruptcy
proceeding (namely, any proceeding of the type referred to in the definition of
"Event of Bankruptcy") so long as Commercial Paper Notes shall be outstanding or
there shall not have elapsed one year plus one day since the last day on which
any such Commercial Paper Notes shall have been outstanding. The foregoing shall
not limit the right of Seller to file any claim in or otherwise take any action
with respect to any insolvency proceeding that was instituted against WPS Finco
or Blue Ridge by any Person other than Seller or any other WPS Person.

                  SECTION 10.14 Severability of Provisions. If any one or more
of the covenants, agreements, provisions or terms of this Purchase Agreement or
any of the other Transaction Documents shall for any reason whatsoever be held
invalid, then such covenants, agreements, provisions or terms shall be deemed
severable from the remaining covenants, agreements, provisions or terms of this
Purchase Agreement or such other Transaction Document (as applicable) and shall
in no way affect the validity or enforceability of the other provisions of this
Purchase Agreement or any of the other Transaction Documents.

                                       43
<PAGE>

                  SECTION 10.15 Recourse to WPS Finco. Except to the extent
expressly provided otherwise in the Transaction Documents, the obligations of
WPS Finco under the Transaction Documents to which it is a party are solely the
obligations of WPS Finco, and no recourse shall be had for payment of any fee
payable by or other obligation of or claim against WPS Finco that arises out of
any Transaction Document to which WPS Finco is a party against any director,
officer or employee of WPS Finco. The provisions of this Section 10.15 shall
survive the termination of this Purchase Agreement.

                  SECTION 10.16 Confirmation and Ratification of Terms.

                           (a)      Upon the effectiveness of this Purchase
Agreement, each reference to the Original Purchase Agreement in any other
Transaction Document, and any document, instrument or agreement executed and/or
delivered in connection with the Original Purchase Agreement and any Transaction
Document, shall mean and be a reference to this Purchase Agreement.

                           (b)      The other Transaction Documents and all
agreements, instruments and documents executed or delivered in connection with
the Original Purchase Agreement and any of the Transaction Documents shall each
be deemed to be amended to the extent necessary, if any, to give effect to the
provisions of this Purchase Agreement, as the same may be amended, modified,
supplemented or restated from time to time.

                           (c)      The effect of this Purchase Agreement is to
amend and restate the Original Purchase Agreement, and to the extent that any
rights, benefits or provisions in favor of any of the parties to the Original
Purchase Agreement existed in the Original Purchase Agreement and continue to
exist in this Purchase Agreement without any written waiver of any such rights,
benefits or provisions prior to the date hereof, then such rights, benefits or
provisions are acknowledged to be and to continue to be effective from and after
the Effective Date. This Purchase Agreement is not a novation.

                           (d)      The parties hereto agree and acknowledge
that any and all rights, remedies and payment provisions under the Original
Purchase Agreement, which are continuing and survive any termination of the
Original Purchase Agreement including, without limitation, any and all rights,
remedies and payment provisions with respect to (A) any representation and
warranty made or deemed to be made pursuant to the Original Purchase Agreement,
or (B) any indemnification provision, shall continue and survive the execution
and delivery of this Purchase Agreement.

                                       44
<PAGE>

                           (e)      The parties hereto agree and acknowledge
that any and all amounts owing as or for fees, expenses or otherwise under or
pursuant to the Original Purchase Agreement, immediately prior to the
effectiveness of this Purchase Agreement shall be owing as or for fees, expenses
or otherwise, respectively, under or pursuant to this Purchase Agreement.

                            (SIGNATURE PAGE FOLLOWS)

                                       45
<PAGE>

                  IN WITNESS WHEREOF, the parties have caused this First Amended
and Restated Receivables Purchase Agreement to be executed by their respective
officers thereunto duly authorized, as of the date first above written.

                                    WESTPOINT STEVENS INC.

                                    By: /s/ Nelson Griffith
                                       ----------------------------------------
                                    Name: J. Nelson Griffith
                                    Title: Senior Vice President and Controller

                                    Address: 507 West 10th Street
                                    Post Office Box 71
                                    West Point, GA 31833

                                    Attention: J. Nelson Griffith
                                    Telephone: (706) 645-4213
                                    Facsimile: (706) 645-4066

                                    WPS RECEIVABLES CORPORATION

                                    By: /s/ Nelson Griffith
                                       ----------------------------------------
                                    Name: J. Nelson Griffith
                                    Title: President

                                    Address: 507 West 10th Street
                                    Post Office Box 71
                                    West Point, GA 31833

                                    Attention: J. Nelson Griffith
                                    Telephone: (706) 645-4213
                                    Facsimile: (706) 645-4066

                                      46

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