Document:

MANAGEMENT AGREEMENT

     THIS MANAGEMENT AGREEMENT ("Agreement"), is executed as of the 1st day of
October, 2003, by and between GEARCAP LLC, a Delaware limited liability
company ("Gearcap"), and GFSI HOLDINGS, INC., a Delaware corporation, on
behalf of itself and its subsidiaries (the "Company").

                             W I T N E S S E T H:

     WHEREAS, Gearcap has and/or has access to personnel who are highly
skilled in operating business concerns such as the Company; and

     WHEREAS, the Company desires to retain Gearcap to provide business,
management and financial advice to the Company;

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants and agreements herein set forth, the parties hereto agree as
follows:

1.   The Company hereby retains Gearcap, through Gearcap's own personnel or
through personnel available to Gearcap, to render day-to-day Management
Services (as defined below) to the Company and its subsidiaries (whether now
existing or hereafter acquired), including GFSI, Inc. The term of this
Agreement shall commence on the date hereof and continue until the tenth
anniversary of the date hereof unless extended, or sooner terminated, as
provided in Section 6 below. Gearcap's personnel shall be reasonably available
to the Company's auditors and other personnel for consultation and advice. In
consideration for rendering Management Services, the Company shall make
payments to Gearcap in amounts determined in accordance with this Agreement.
"Management Services" shall consist of accounting, professional and
administrative services relating to the business, operations and finances of
the Company and its subsidiaries, including GFSI, Inc. The Company and Gearcap
acknowledge and agree that the Management Services to be provided by Gearcap
to GFSI, Inc. and its subsidiaries are substantially similar to those
currently provided internally by the employees of GFSI, Inc.

2.   During the term of this Agreement, the Company shall pay to Gearcap an
annual fee of $2,300,000. The fee shall be payable monthly. Subject to the
provisions of Section 2.4(b) of the Company's Stockholders Agreement, the
amount of this fee shall be adjusted on September 1 of each calendar year
during the term of this Agreement based on the agreement of the Company and
Gearcap which determination shall be based upon the planned services that
Gearcap shall provide to the Company for the upcoming twelve (12) month
period. If, after a reasonable period of negotiation, the parties are unable
to agree on an adjustment to the annual fee, then the parties shall refer such
dispute to an independent third party evaluator (i.e. either an accounting
firm, investment bank, arbitrator or any other third party experienced in
evaluating the services performed by Gearcap under this Agreement) mutually
agreeable to the parties to resolve such dispute. During the interim period
Gearcap shall be entitled to receive the annual fee on the terms in effect for
the prior year. The effect of a resolution of such dispute shall be
retroactive to September 1 and any increase or decrease in the annual fee

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shall be reflected in the remaining installment payments of the annual fee
payable through the remainder of the current year in which such dispute was
resolved. The fees and expenses of the third party evaluator shall be split
equally by the parties. The amount of this annual fee shall be pro rated for
any partial year during the term of this Agreement.

3.   Reasonable out-of-pocket expenses incurred by Gearcap and its personnel in
performing services hereunder to the Company and its subsidiaries shall be
promptly reimbursed to it by the Company upon presentation of such supporting
data as the Company shall reasonably require.

4.   During the term of this Agreement each executive officer of Gearcap will be
entitled to participate in any and all benefit plans maintained by the Company
on the same basis as executive officers of the Company.

5.   During the term of this Agreement Holdings shall supply to Gearcap, free of
charge, all office space and office services requested by Gearcap.

6.   Gearcap may terminate this Agreement at any time by notifying the Company
in writing of such termination. Upon the termination, cancellation or
expiration of this Agreement, the Company shall pay to Gearcap all accrued and
unpaid amounts owing to Gearcap hereunder.

7.   Gearcap shall have no liability to the Company on account of (i) any advice
which it renders to the Company, provided Gearcap believed in good faith that
such advice was useful or beneficial to the Company at the time it was
rendered, (ii) Gearcap's inability to obtain financing or achieve other
results desired by the Company, or (iii) the failure of any acquisition to
meet the financial, operating or other expectations of the Company.

8.   The Company will, to the fullest extent permitted by applicable law,
indemnify and hold harmless Gearcap, its affiliates and associates, and each
of the respective owners, employees, members, managers and affiliates of each
of the foregoing, from and against any loss, liability, damage, claim or
expenses (including the fees and expenses of counsel) (collectively "Damages")
arising as a result of or in connection with this Agreement, Gearcap's
services hereunder or other activities on behalf of the Company and its
subsidiaries, unless such Damages resulted from Gearcap's lack of good faith
at the time it rendered any services or advice to the Company.

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9.   Miscellaneous
     -------------

     9.1    This Agreement sets forth the entire understanding of the parties
            with respect to Gearcap's rendering of services to the Company. This
            Agreement may not be modified, waived, terminated or amended
            except expressly by an instrument in writing signed by Gearcap
            and the Company.

     9.2.   This Agreement may not be assigned by either party without
            the consent of the other party, but shall be binding upon
            and inure to the benefit of the parties and their respective
            successors and assigns upon such permitted assignment.

     9.3.   In the event that any provision of this Agreement shall be
            held to be void or unenforceable in whole or in part, the
            remaining provisions of this Agreement and the remaining
            portion of any provision held void or unenforceable in part
            shall continue in full force and effect.

    9.4.    Except as otherwise specifically provided herein, notice
            given hereunder shall be deemed sufficient if delivered
            personally or sent by registered or certified mail to the
            address of the party for whom intended at the principal
            executive offices of such party, or at such other address as
            such party may hereinafter specify by written notice to the
            other party.

    9.5.    No waiver by either party of any breach of any provision of
            this Agreement shall be deemed a continuing waiver or a
            waiver of any preceding or succeeding breach of such
            provision or of any other provision herein contained.

    9.6.    Gearcap and its personnel shall, for purposes of this
            Agreement, be independent contractors with respect to the
            Company.

    9.7.    This Agreement shall be governed by the internal laws (and
            not the law of conflicts) of the state of Kansas.

                           (Signatures on next page)

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     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year first above written.

                                  CONSULTANT:

                                  GEARCAP LLC, a Delaware limited liability
                                  company

                                  By: /s/ Larry D. Graveel
                                      -----------------------------------
                                  Name:  Larry D. Graveel
                                      -----------------------------------
                                  Title: President
                                      -----------------------------------

                                  COMPANY:

                                  GFSI HOLDINGS, INC., a Delaware corporation

                                  By: /s/ Larry D. Graveel
                                      -----------------------------------
                                  Name:  Larry D. Graveel
                                      -----------------------------------
                                  Title: President
                                      -----------------------------------

                                      4FIRST AMENDMENT TO THIRD CONSENT AND AMENDMENT

         This First Amendment to Third Consent and Amendment (the "First
Amendment") is dated as of September 30, 2003, among GFSI, Inc., a Delaware
corporation ("Borrower"), GFSI Holdings, Inc., a Delaware corporation
("Holdings"), each of the financial institutions a party to hereto (such
financial institutions, together with their successors and assigns, are
referred to in this First Amendment each individually as a "Lender" and
collectively as the "Lenders"), and Bank of America, N.A., as agent for the
Lenders (in its capacity as agent, the "Agent"). Capitalized terms that are
used in this Consent and Amendment but are not otherwise defined in this
Consent and Amendment have the meanings ascribed to them in the Credit
Agreement and the Third Consent and Amendment (as each are defined below).

                                   Recitals

         1. Borrower, Holdings, the Lenders and the Agent entered into the
Credit Agreement dated as of March 28, 2002 (as it has been or may hereafter
be amended, restated, supplemented, extended or otherwise modified, the
"Credit Agreement")

         2. Borrower, Holdings, the Lenders and the Agent entered into the
Third Consent and Amendment dated as of September 8, 2003 (the "Third Consent
and Amendment") in connection with the 2003 Recapitalization Transactions.

         3. In connection with the 2003 Recapitalization Transactions,
Borrower and Holdings have further requested that the Lenders and Agent
execute and deliver this First Amendment.

                                   Agreement

         Therefore, in consideration of the mutual execution of this First
Amendment and other good and valuable consideration, the parties to this First
Amendment agree as follows:

         1. Paragraph 3 of the Recitals to the Third Consent and Amendment
is hereby deleted in its entirety and replaced with the following:

                  3. Borrower is borrowing up to $12.5 million from the
         Lenders under the Credit Agreement. Borrower is using the proceeds of
         this loan to purchase Notes from Jefferies (as described in paragraph
         1 above) and pay the 2003 Transaction Expenses (as described in
         paragraph 9 below). Borrower will hold these Notes as an investment
         and pledge them as additional Collateral under the Credit Agreement.

         2. Section 2 of the Third Consent and Amendment is hereby deleted
in its entirety and replaced with the following:

                  2. Amendment Fee. Borrower will pay to Agent, for the
         ratable benefit of Lenders, an amendment fee in an amount equal to
         $180,000 (the "Amendment Fee"), which fee will be fully earned on the

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         date of this Consent and Amendment and payable on the date on which
         Borrower purchases any portion of the Notes. The Agent and the
         Lenders agree that Borrower's obligation to pay this Amendment Fee
         will be waived if Borrower fails to purchase any Notes on or before
         December 31, 2003.

                  Notwithstanding the foregoing, if the Stated Termination
         Date is extended to January 15, 2006, and Borrower has not otherwise
         paid the Amendment Fee because Borrower has not purchased any Notes,
         Borrower acknowledges and agrees:

                  (a) that it will immediately pay an extension fee in an
         amount that is mutually acceptable to Borrower, Agent and Lenders,
         and

                  (b) that the extension will not become effective until
         Borrower pays this fee.

         3. Section 3(b) of the Third Consent and Amendment is hereby deleted
in its entirety and replaced with the following:

                  (b) Notwithstanding the provisions of Sections 6.22 and 7.25
         of the Credit Agreement that limit Borrower's use of the proceeds of
         the Loans to certain specified uses, Lenders and Agent consent and
         agree to Borrower's use of proceeds of the Loans in an aggregate
         amount not to exceed $12,500,000 for Borrower's purchase of Notes and
         for the payment of the 2003 Transaction Expenses; provided, that:

                           (i) Borrower's use of the proceeds of the Loans to
                  purchase the Notes occurs no later than December 31, 2003,
                  and

                           (ii) Borrower is responsible for no more than 50%
                  of the total funds that Borrower and Gearcap, in the
                  aggregate, use to purchase Notes and pay 2003 Transaction
                  Expenses in connection with the 2003 Recapitalization
                  Transactions.

         4. Section 3(e)(i)(B) of the Third Consent and Amendment is hereby
deleted in its entirety and replaced with the following:

                                    (B) Borrower uses no more than $12,500,000
                           in the aggregate of the proceeds of the Loans to
                           acquire such Notes and pay 2003 Transaction
                           Expenses, and

         5. Miscellaneous. All references in the Third Consent and Amendment
to the "Consent and Amendment" will be deemed to include this First Amendment
and the terms contained in this First Amendment. Except as amended by this
First Amendment or otherwise inconsistent with the terms of this First
Amendment, all terms and conditions of the Third Consent and Amendment remain
in full force and effect in accordance with its terms. This First Amendment
may be executed in any number of counterparts, all of which taken together
will constitute one and the same amendatory instrument. Any of the parties to

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<PAGE>

this First Amendment may execute this First Amendment by signing any such
counterpart and sending it by telecopier, mail messenger or courier to the
Agent or the Agent's counsel. The parties intend that this First Amendment be
interpreted, and the rights and liabilities of the parties to this First
Amendment be determined, under the internal laws (as opposed to the conflict
of laws provisions) of Illinois; but the Agent and the Lenders retain all
rights arising under federal law.

             [The remainder of this page intentionally left blank]

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<PAGE>

         IN WITNESS WHEREOF, the parties to this First Amendment have caused
it to be duly executed as of the day and year first above written.

                                            "BORROWER"

                                            GFSI, Inc.

                                            By:   /s/ Larry Graveel
                                                 -----------------------------
                                                 Larry Graveel, President

                                            "HOLDINGS"

                                            GFSI Holdings, Inc.

                                            By:   /s/ Larry Graveel
                                                 -----------------------------
                                                 Larry Graveel, President

[This is one of the signature pages to the First Amendment to Third Consent
and Amendment dated as of September 30, 2003.]

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<PAGE>

                                            EVENT 1, INC.

                                            By: /s/ Larry Graveel
                                               -------------------------------
                                               Larry Graveel, President

                                            CC PRODUCTS, INC.

                                            By:  /s/ Larry Graveel
                                               -------------------------------
                                               Larry Graveel, President

[This is one of the signature pages to the First Amendment to Third Consent
and Amendment dated as of September 30, 2003.]

                                     -5-
<PAGE>

                                           "AGENT"

                                           BANK OF AMERICA, N.A., as the Agent

                                           By:  /s/ Dan Jelaca
                                               ------------------------------
                                               Dan Jelaca, Vice President

                                           "LENDERS"

                                           BANK OF AMERICA, N.A., as a Lender

                                           By:  /s/ Dan Jelaca
                                               ------------------------------
                                               Dan Jelaca, Vice President

[This is one of the signature pages to the First Amendment to Third Consent
and Amendment dated as of September 30, 2003.]

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<PAGE>

                                            THE CIT GROUP/COMMERCIAL
                                            SERVICES, INC., as a Lender

                                            By:  /s/ James K. Harris
                                                ------------------------------
                                                James K. Harris, Vice President

[This is one of the signature pages to the First Amendment to Third Consent
and Amendment dated as of September ___, 2003.]

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<PAGE>

                                            U.S. BANK NATIONAL
                                            ASSOCIATION, as a Lender

                                            By: /s/ Thomas Visconti
                                               -------------------------------

                                               Thomas Visconti, Vice President

[This is one of the signature pages to the First Amendment to Third Consent
and Amendment dated as of September 30, 2003.]

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<PAGE>

                           Reaffirmation of Guaranty
                           -------------------------

         The undersigned Guarantor acknowledges receipt of a copy of this
First Amendment to Third Consent and Amendment, and reaffirms the Guaranty
dated March 28, 2002, between GFSI Holdings, Inc. and Agent.

                                            GFSI Holdings, Inc.

                                            By: /s/ Larry Graveel
                                                --------------------------
                                                  Larry Graveel, President

                                     -9-

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