Document:

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                                                                   EXHIBIT 10.27

                           THIRD AMENDED AND RESTATED
                         PACIFICARE HEALTH SYSTEMS, INC.
                    NON-QUALIFIED DEFERRED COMPENSATION PLAN

         WHEREAS, PacifiCare Health Systems, Inc., (the "Company") established a
non-qualified deferred compensation plan to provide supplemental retirement
income benefits for a select group of management and highly compensated
employees through deferrals of salary and bonuses, effective as of December 18,
1997;

         WHEREAS, it is believed that providing for deferral of compensation at
the election of each executive is in the best interests of the Company;

         WHEREAS, the Company believes that it is in its best interests to amend
and restate this plan;

         WHEREAS, it is the intent of the Company that this Amended and Restated
Plan supersede any other non-qualified deferred compensation plan, policy or
arrangement which the Company or any of its subsidiaries may have sponsored or
made available in the past; and

         WHEREAS, the Company intends that this plan shall be maintained as a
"top hat" plan described in Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA;

         NOW, THEREFORE, it is hereby declared as follows:

                                    ARTICLE I
                                   DEFINITIONS

         Whenever the following words and phrases are used in this Plan, they
shall have the meanings specified below.

Section 1.1 "Beneficiary" or "Beneficiaries" for purposes of this Plan shall
have the meaning set forth in Section 6.4.

Section 1.2 "Board of Directors" or "Board" means the Board of Directors of the
Company.

Section 1.3 "Bonus" means any management incentive plan bonus, long-term bonus,
sign-on bonus, retention bonus, sales commissions or any other bonuses
determined as eligible for the Plan by the Committee payable to a Participant in
addition to the Participant's Salary, other than moving expenses, prior to any
reduction for deferrals to a plan qualified under Section 125 or Section 401(k)
of the Code.

Section 1.4 "Change of Control" shall have the meaning set forth in Section 6.3.

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Section 1.5 "Common Stock" means the Company's Common Stock, par value $0.01 per
share.

Section 1.6 "Code" means the Internal Revenue Code of 1986, as amended from time
to time.

Section 1.7 "Committee" means the Committee appointed by the Compensation
Committee to administer the Plan in accordance with Article V.

Section 1.8 "Company" means PacifiCare Health Systems, Inc., a Delaware
corporation, or any successor corporation.

Section 1.9 "Compensation Committee" shall mean the Compensation Committee of
the Board of Directors of the Company.

Section 1.10 "Deferral Account" shall mean the amount of Salary and Bonus
deferred under Article III of this Plan, the Interest Rate or Rates credited to
such deferred amounts and the LTPIP Stock Accounts (as defined herein).

Section 1.11 "Disability." An Eligible Employee who is a Participant shall be
incapacitated or disabled for purposes of the Plan only if such Participant's
incapacity or disability prevents him or her from fully performing his duties to
an Employer for a period in excess of 90 days and, after such 90-day period, the
Company and a physician, duly licensed and qualified in the specialty of the
Participant's incapacity or disability, decide in their reasonable judgments,
that such incapacity or disability will be permanent or of such continued
duration as to prevent such Participant from resuming the rendition of services
to the Employer for at least an additional six-month period.

Section 1.12 "Distributable Amount" shall mean having the meaning set forth in
Section 3.8(a).

Section 1.13 "Eligible Employee" shall mean those Employees who satisfy any of
the requirements of Section 2.1.

Section 1.14 "Employee" shall mean any employee (as defined in accordance with
the Treasury Regulations and Revenue Rulings then applicable under Section 3401
(c) of the Code) of an Employer, whether such employee is so employed at the
time this Plan is adopted or becomes so employed subsequent to the adoption of
this Plan.

Section 1.15 "Employer" means the Company (or any successor by merger,
consolidation or purchase of substantially all of the Company's assets) and any
and all Subsidiaries of the Company.

Section 1.16 "ERISA" shall mean the Employee Retirement Income Security Act of
1974, as amended from time to time.

Section 1.17 "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended from time to time.

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Section 1.18 "Fund" or "Funds" means one or more of the funds selected by the
Committee pursuant to Section 3.3(b).

Section 1.19 "Initial Election Period" for an Eligible Employee means the 30-day
period following the receipt by an Eligible Employee of enrollment material for
this Plan.

Section 1.20 "Interest Rate" shall mean, for each Fund, an amount equal to the
net gain or loss on the assets of such Fund during each month.

Section 1.21 "LTPIP Stock Account" shall have the meaning specified in Section
3.5.

Section 1.22 "Participant" means an Eligible Employee or former Eligible
Employee who has elected to participate in the Plan in accordance with the rules
set forth in Article III and who has an outstanding balance in his or her
Deferral Account.

Section 1.23 "Payment Eligibility Date" means the first day of the month
following the end of the calendar quarter in which a Participant terminates
employment for any reason with all Employers.

Section 1.24 "Plan" means this Amended and Restated Non-Qualified Deferred
Compensation Plan of PacifiCare Health Systems, Inc., as it may be amended from
time to time.

Section 1.25 "Plan Year" means the 12 consecutive month period beginning on
January 1 and ending on December 31 of the same year.

Section 1.26 "Retirement" or "Retire" for purposes of this Plan means
termination of a Participant's employment from all Employers (other than on
account of death), which occurs after the sum of the following two factors meet
or exceed 55: (i) the Participant's age and (ii) the Participant's number of
years of service with all Employers.

Section 1.27 "Salary" shall mean the Participant's salary prior to any reduction
for deferrals to a plan qualified under Section 125 or Section 401 (k) of the
Code.

Section 1.28 "Social Security Wage Base" means contributions and benefits base
under Section 230 of the Social Security Act in effect for the Plan Year.

Section 1.29 "Subsidiary" shall mean any corporation in an unbroken chain of
corporations beginning with the Company if each of the corporations other than
the last corporation in the unbroken chain then owns stock possessing 50 percent
or more of the total combined voting power of all classes of stock in one of the
other corporations in such chain.

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                                   ARTICLE II
                                   ELIGIBILITY

Section 2.1 Eligibility.

         a.       An Employee of an Employer will be eligible to defer payments
of Salary and/or Bonus pursuant to the provisions of this Plan if at the time
when an election may be made: (i) he or she is designated to be in an eligible
position and has an annual base salary of at least $80,000 (or at least $100,000
for periods after December 31, 2003); or (ii) he or she is an Employee scheduled
to work at least 32 hours per week designated by the Committee to be eligible to
participate in this Plan so long as such designation does not make this Plan not
eligible for "top hat" plan status. Notwithstanding any other provisions of this
Plan, all Employees who currently participate in this Plan shall continue to be
eligible to participate in this Plan in future Plan Years so long as the
Employee remains in a designated eligible position.

         b.       A new Employee of an Employer will be eligible to defer
payments of Salary and/or Bonus pursuant to the provisions of this Plan if at
the time when an election may be made he or she meets the eligibility
requirements in 2.1(a) above.

         c.       An Employee who satisfies the requirements of subsection (a)
or (b) shall be an "Eligible Employee."

                                   ARTICLE III
                            DEFERRAL OF COMPENSATION

Section 3.1 Participation.

         An Eligible Employee shall become a Participant in this Plan by
electing to timely defer a portion of his or her Salary and/or Bonus in
accordance with Section 3.2. Participation shall begin on the date that the
Committee accepts the Eligible Employee's election to defer compensation and
establishes a Deferral Account in the Eligible Employee's name. A Participant's
participation in the Plan shall end on the date that the Participant dies or
receives a distribution of the entire balance of his or her Deferral Account;
provided however, that a Participant who is no longer employed by an Employer
may not elect to defer compensation payable with respect to period on or after
his or her termination of employment with the Employers.

Section 3.2 Elections to Defer Compensation.

         a.       Initial Election Period. Subject to Article II and Section
3.1, each Eligible Employee may elect to defer Salary and/or Bonus by filing
with the Committee, on a form provided by the Committee, an election that
conforms to the requirements of this Section 3.2, no later than the last day of
his or her Initial Election Period.

         b.       General Rule. The amount of compensation which an Eligible
Employee may elect to defer is as follows:

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                  (i)      Any whole percentage of Salary up to and including 50
         percent of Salary and/or

                  (ii)     Any whole percentage of Bonus up to 100 percent.

         c.       Minimum Deferrals. For each Plan Year during which an Eligible
Employee is a Participant, the minimum amount that may be elected to be deferred
under Section 3.2(b) is $5,000. Such minimum may be satisfied by deferring
Salary and/or the Bonus payable for services rendered for such Plan Year (even
though it may not be paid until the next Plan Year); provided that if Salary is
deferred, the minimum Salary deferral is $5,000. Accordingly, if no Salary is
deferred for a Plan Year and the total amount of the Bonus elected to be
deferred with respect to that Plan Year is in fact less than $5,000, then no
portion of the Bonus shall be deferred.

         d.       Effect of Initial Election. For Participants who are Employees
of an Employer on the effective date of this Plan, an election to defer Salary
and/or Bonus during the Initial Election Period shall be effective with respect
to Salary and/or Bonus earned during the first pay period beginning after the
end of the Initial Election Period. For Participants who become Employees of an
Employer subsequent to the effective date of this Plan, an election to defer
Salary and/or Bonus during the Initial Election Period shall be effective with
respect to Salary and/or Bonus earned as soon as administratively possible.

         e.       Duration of Deferral Election. Any Salary and/or Bonus
deferral election made under subsection (a) or subsection (f) of this Section
3.2 shall be irrevocable and shall apply to the Salary payable during subsequent
Plan Years and/or Bonus payable with respect to services performed during
subsequent Plan Years until a Participant makes a new election; provided,
however, that an election may not be changed for the first Plan Year after an
election is made or for any Plan Year once the Plan Year has begun. An Eligible
Employee may make changes to his or her election, subject to the limitations set
forth in this Section 3.2, to change the deferral under a previous election by
filing with the Committee on forms provided by the Committee, a new election to
defer a percentage of his or her Salary and/or Bonus on or before the December
15 preceding the Plan Year for which the new election is to apply.
Notwithstanding the foregoing, the Committee may, in its absolute discretion,
permit an Eligible Employee to file an election to defer on or after December
15, if, in its judgment, his or her failure to do so prior to said date was due
to reasonable cause, but in no event may such election be filed after December
31. All elections, once made, are irrevocable.

         f.       Elections other than Elections during the Initial Election
Period. Subject to the minimum deferral requirement of subsection (c) above, any
Eligible Employee who fails to elect to defer Salary and/or Bonus during his or
her Initial Election Period may subsequently become a Participant, and any
Eligible Employee who has terminated a prior Salary deferral election may elect
to again defer Salary and/or Bonus, by filing an election, on a form provided by
the Committee, to defer Salary and/or Bonus as described in this Section 3.2. An
election to defer Salary and/or Bonus must be filed on or before each December
15 and will be effective for Salary paid after the following January 1 and

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the Bonus payable with respect to services performed in the Plan Year beginning
on the following January 1.

         g.       Reduction of Salary and/or Bonus. Upon an election to defer
Salary and/or Bonus, each Participant's Salary or Bonus will be reduced by the
amount elected to be deferred. If necessary, Bonus deferrals may be reduced in
order to cover any taxes that are required to be paid at the time of deferral.

Section 3.3 Investment Elections.

         a.       At the time of making the deferral elections described in
Section 3.2, the Participant shall designate, on a form provided by the
Committee, the types of funds the Participant's Deferral Account will be deemed
to be invested in for purposes of determining the amount of Interest Rate or
Rates to be credited to his or her Account. Examples of the types of funds that
may be available for investment are: (i) Money Market Fund; (ii) Common Stock
Fund; (iii) International Equity Fund; (iv) Balanced Fund; (v) Growth Fund; (vi)
Aggressive Growth Fund; (vii) Bond Fund; and (viii) Global Equity Fund.

         In making the designation pursuant to this Section 3.3, the Participant
may specify that all or any whole percentage of his Deferral Account be deemed
to be invested in one or more funds. Weekly, a Participant may change the
designation made under this Section 3.3 with respect to amounts contained in his
or her Deferral Account or amounts to be credited to his or her Deferral Account
by current or future deferrals by filing an election, on a form provided by the
Committee, submitted no later than 12:00 a.m. Pacific Time Wednesday of each
week. If a Participant fails to elect a type of fund under this Section 3.3, he
or she shall be deemed to have elected a fund similar to a Money Market Fund.

         b.       Although the Participant may designate the type of funds in
subsection (a) above, the Committee shall select from time to time, in its sole
discretion, a commercially available fund similar to the types described in
subsection (a) above to be the Funds. The Interest Rate of such commercially
available fund or contract shall be used to determine the amount of earnings or
losses to be credited to Participants' Deferral Account under Section 3.4.

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Section 3.4 Deferral Account.

         The Committee shall establish and maintain a Deferral Account for each
Participant under the Plan. Each Participant's Deferral Account shall be further
divided into separate subaccounts ("fund subaccounts"), each of which
corresponds to a fund elected by the Participant pursuant to Section 3.3(a). A
Participant's Deferral Account shall be credited as follows:

         a.       Within 10 business days of each regular Company payday, the
Committee shall credit the fund subaccounts of the Participant's Deferral
Account with an amount equal to Salary deferred by the Participant during each
pay period in accordance with the Participant's election under Section 3.3(a);
that is, the portion of the Participant's deferred Salary that the Participant
has elected to be deemed to be invested in a certain type of fund shall be
credited to the fund subaccount corresponding to that fund.

         b.       Within 10 business days of the Bonus or partial Bonus payment,
the Committee shall credit the fund subaccounts of the Participant's Deferral
Account with an amount equal to the portion of the Bonus deferred by the
Participant's election under Section 3.3(a); that is, the portion of the
Participant's deferred Bonus that the Participant has elected to be deemed to be
invested in a particular type of fund shall be credited to the fund subaccount
corresponding to that fund.

         c.       As of the last day of each month, each fund subaccount of a
Participant's Deferral Account shall be credited with earnings or losses in an
amount equal to that determined by multiplying the balance credited to such fund
subaccount as of the last day of the preceding month by the Interest Rate for
the corresponding Fund selected by the Committee pursuant to Section 3.2(b) with
the assumption that all dividends or interest is reinvested at the fair market
value of the Fund at the end of the day in which it would be paid.

         d.       All amounts in a Participant's Deferral Account shall be 100
percent vested at all times.

Section 3.5 Deferred LTPIP Stock Accounts.

         The Long-Term Performance Incentive Plan ("LTPIP") Stock Account (the
"LTPIP Stock Account") shall continue to be maintained by the Plan for
Participants who participated in the LTPIP and deferred all or any portion of
their LTPIP Bonus. The LTPIP Stock Account was credited with stock units (the
"LTPIP Stock Units") equal to the number of shares of Common Stock into which
the amount deferred was converted based on the closing price of the Common Stock
at the time the LTPIP Bonus was deferred. The LTPIP Stock Units shall continue
to be credited to a bookkeeping account, established for this purpose in the
Participant's name. The number of LTPIP Stock Units shall remain constant over
the deferral period except as adjusted pursuant to Section 3.7. The number of
shares of Common Stock to be distributed shall equal the number of LTPIP Stock
Units credited to the LTPIP Stock Account at the time the LTPIP Bonus was
originally awarded.

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Section 3.6 Rollovers.

         a.       Participant's account balances transferred to this Plan from
the FHP International Corporation Deferred Compensation Plan, as amended, shall
be governed by the terms and conditions of this Plan and shall be referred to as
the "FHP Rollover Amount" and were credited to such Participant's Deferral
Account as of December 31, 1997.

         b.       Participant's account balances transferred to this Plan from
any prior deferred compensation maintained by the Company shall be governed by
the terms and conditions of this Plan, shall be referred to as the "Existing PHS
Rollover Amount" and were credited to such Participant's Deferral Account as of
December 31, 1997.

Section 3.7 Change In Company Shares.

         If the outstanding shares of Common Stock are hereafter changed into or
exchanged for a different number or kind of shares or other securities of the
Company, or of another company, by reason of reorganization, merger,
consolidation, recapitalization, reclassification, stock split, stock dividend
or combination of shares, or if the Company distributes a cash or non-cash
dividend to holders of Common Stock or engages in another similar transaction,
the Committee shall make an appropriate and equitable adjustment in the number
and kind of units credited to the LTPIP Stock Account. Any such adjustment made
by the Committee shall be final and binding upon a Participant, the Company and
all other interested persons.

Section 3.8 Distribution of Deferred Compensation.

         (a)      In the case of a Participant who terminates employment with
all Employers on or after Retirement or who terminates employment as a result of
a Disability, the aggregate amount credited to the Deferral Account (the
"Distributable Amount") shall be paid to the Participant (and after his death to
his or her Beneficiary) in the form of substantially equal annual installments
over 10 years beginning as soon as administratively possible after a
Participant's Payment Eligibility Date. Notwithstanding the foregoing, a
Participant described in the preceding sentence may elect one of the following
optional forms of distribution provided that his or her election is filed with
the Committee at least one year prior to his or her termination of employment
with all Employers:

                  (i)      a single lump sum cash payment payable as soon as
         administratively possible after Participant's Payment Eligibility Date;

                  (ii)     substantially equal annual installments over five
         years beginning as soon as administratively possible after
         Participant's Payment Eligibility Date; or

                  (iii)    substantially equal annual installments over fifteen
         years beginning as soon as administratively possible after
         Participant's Payment Eligibility Date.

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         Any such election filed less than one year prior to termination of
employment shall not become effective. If a Participant is receiving salary
continuation/severance payments, termination of employment shall be defined as
the date in which salary continuation/severance ceases for purposes of the form
of distribution election filing.

         Notwithstanding this subsection, if the Distributable Amount is $50,000
or less, the Distributable Amount shall automatically be distributed in the form
of a single lump sum cash payment as soon as administratively possible after
Participant's Payment Eligibility Date. The Participant's Deferral Account shall
continue to be credited monthly with Interest Rate or Rates pursuant to Section
3.4 of this Plan until all amounts credited to his or her Deferral Account under
this Plan have been distributed. For all purposes under this Plan, a Participant
shall not be considered terminated from employment with all Employers if the
Participant remains employed by an entity that is an Employer. However, if the
Employee is employed by an Employer and such Employer ceases to be an Employer
as a result of a sale or other corporate reorganization, such sale or other
corporate reorganization shall be treated as termination of employment with all
Employers unless immediately following such event and without any break in
employment the Participant remains employed by an Employer or the former
Employer assumes liability for the benefit of the Participant.

         (b)      In the case of a Participant who terminates employment with
all Employers prior to Retirement or for reasons other than a Disability, the
Distributable Amount shall be paid to the Participant (and after his death to
his or her Beneficiary) in the form of a single lump sum cash payment as soon as
administratively possible after Participant's Payment Eligibility Date.
Notwithstanding the foregoing, a Participant described in the preceding sentence
may elect one of the following optional forms of distribution provided that his
or her election is filed with the Committee at least one year prior to his or
her termination of employment with all Employers:

                  (i)      substantially equal annual installments over three
         years beginning as soon as administratively possible after
         Participant's Payment Eligibility Date; or

                  (ii)     substantially equal annual installments over five
         years beginning as soon as administratively possible after
         Participant's Payment Eligibility Date.

         Any such election filed less than one year prior to termination of
employment shall not become effective.

         (c)      If a Participant receives salary continuation/severance
payments, then the Distributable Amount shall be paid to such Participant in
accordance with his or her elections for distribution upon termination of salary
continuation/severance; provided, however, if such Participant can be deemed to
be Retired as of the salary continuation/severance end date, then the
Distributable Amount shall be paid to such Participant in accordance with his or
her election for distribution for Retirement upon termination of salary
continuation/severance. Eligibility for distribution on account of Retirement
under Section 3.8(a) will be calculated using the (i) the Participant's age at

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the end of the salary continuation/severance period and (ii) the Participant's
number of years of service with all Employers at the beginning of the salary
continuation/severance period.

         (d)      In the case of a Participant who dies while employed by an
Employer, the Participant's Beneficiary will be paid his or her Distributable
Amount in a single lump sum cash payment as soon as administratively possible,
as reasonably determined by the Committee. If a Participant dies after
terminating employment with all Employers and while receiving installment
payments of his or her Distributable Amount, the remaining portion of the
Participant's Distributable Amount will be paid in a single lump sum payment to
the Participant's Beneficiary as soon as administratively possible, as
reasonably determined by the Committee.

         (e)      A Participant who has not terminated employment with all
Employers may change his or her form of payment applicable to the portion of the
Deferral Account balance attributable to one or more Plan Years to one of the
payment forms permitted by the Plan at least one year prior to his or her
termination of employment with all Employers and, in the case of scheduled early
distributions elected pursuant to Section 3.10, may defer the Scheduled Payment
Dates in accordance with Section 3.10. Any such election to change form of
payment less than one year prior to termination of employment shall not become
effective. The Participant's payment election with respect to a given Plan Year
may not be changed after payment of that portion of the Deferral Account balance
has been made or has begun.

         (f)      In the case of a Participant who becomes a Participant in this
Plan as a result of a FHP Rollover and who is receiving salary continuation, the
Distributable Amount of such Participant upon termination of salary continuation
shall be paid to such Participant in the form of a single lump sum cash payment;
provided, however, if such Participant can be deemed to be Retired, then the
Distributable Amount shall be paid to such Participant in accordance with his or
her elections to defer.

Section 3.9 Unscheduled Early Distributions.

         A Participant shall be permitted to elect to withdraw amounts from his
or her Deferral Account at any time prior to the date amounts would otherwise be
payable with respect to such accounts under this Article III ("Early
Distributions"), subject to the following restrictions:

         a.       The election to take an Early Distribution shall be made by
filing a form provided by and filed with the Committee prior to the end of any
calendar month.

         b.       The amount of the Early Distribution shall in all cases equal
90 percent of the Distributable Amount as of the end of the calendar month in
which the distribution is to be made.

         c.       The amount described in subsection 3.9(b) above shall be paid
in a single lump sum cash payment as soon as practicable after the end of the
calendar month in which the Early Distribution election is made.

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         d.       If a Participant receives an Early Distribution pursuant to
this Section 3.9, 10 percent of the Distributable Amount shall be permanently
forfeited and the Company shall have no obligation to the Participant or any
Beneficiary with respect to such forfeited amount.

         e.       If a Participant receives an Early Distribution, the
Participant will be ineligible to defer additional compensation under this Plan
for the balance of the Plan Year and for the following Plan Year.

Section 3.10 Scheduled Early Distributions.

         Participants may elect to have their Salary and/or Bonus deferred
during a given Plan Year and any earnings credited to the deferred be paid on a
future date while still employed, provided the payment date (the "Scheduled
Payment Date") is at least two years from the last day of such Plan Year. This
election shall apply to the Salary and/or Bonus deferred for the Plan Year
specified by the Participant on his or her payment election and the Interest
Rate or Rates credited thereto until the Scheduled Payment Date. A Participant
may elect a different Payment Date for Salary and/or Bonus deferred for each
Plan Year. In addition, Scheduled Payment Dates elected pursuant to this Section
3.10 may be deferred by at least one year, by filing with the Committee written
notice at least one year prior to the Scheduled Payment Date. A Participant may
elect to defer a Scheduled Payment Date selected by this Section 3.10 once every
two years. A distribution pursuant to this Section 3.10 of less than the
Participant's entire interest in the Deferral Account shall be made pro rata
from his or her investment fund subaccounts according to the balances in such
subaccounts. All early distributions pursuant to this Section 3.10 shall be made
in a single lump sum cash payment. Notwithstanding the foregoing, if a
Participant terminates employment with all Employers for any reason prior to the
date on which a payment is scheduled to be made pursuant to this Section 3.10,
the Participant's entire Deferral Account balance will be paid pursuant to the
provisions of Section 3.8.

Section 3.11 Financial Hardship Withdrawals.

         The Committee may, pursuant to rules adopted by it and applied in a
uniform manner, accelerate the date of distribution of all or any portion of a
Participant's Deferral Account balance, including amounts in the LTPIP Stock
Account, because of a financial hardship. A financial hardship means an
unforeseeable, severe financial emergency resulting from (a), a sudden and
unexpected illness or accident of the Participant or his or her dependent (as
defined in Section 152(a) of the Code); (b) loss of the Participant's property
due to casualty; or (c) other similar extraordinary and unforeseeable
circumstances arising out of an event beyond the control of the Participant,
which may not be relieved through other available resources of the Participant,
as determined by the Committee in accordance with uniform rules adopted by it.
Distribution pursuant to this Section 3.11 of less than the Participant's entire
interest in the Plan shall be made pro rata from his or her investment fund
subaccounts according to the balances in such subaccounts. Subject to the
foregoing, payment of any amount with respect to which a Participant has filed a
request under this Section 3.11 shall be made in a single lump sum

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cash payment as soon as practicable after approval of such request by the
Committee and shall be limited to the amount necessary to satisfy the financial
hardship. Distributions made pursuant to this Section 3.11 shall be without
penalty.

Section 3.12 Inability to Locate Participant.

         In the event that the Committee is unable to locate a Participant
within two years following the Participant's Payment Eligibility Date (or the
Participant's Beneficiary within two years after the Participant's death), the
amount allocated to the Participant's Deferral Account shall be forfeited. If,
after such forfeiture, the Participant or Beneficiary later claims such benefit,
such benefit shall be reinstated without interest or earnings.

Section 3.13 Distributions Upon A Change of Control.

         a.       If a Change of Control occurs, the Distributable Amount of
each Participant will be paid by the Trustee of the Trust (as defined herein) to
the Participant (or Beneficiary) in accordance with such Participants' deferral
election.

         b.       Following a Change of Control, no changes in the Plan, or in
any documents evidencing an election to defer compensation, and no adjustments,
determinations or other exercises of discretion by the Compensation Committee,
the Committee or the Company's board of directors that were made subsequent to
the Change of Control and that would have the effect of diminishing a
Participant's rights or payments under this Plan or this Section 3.13, or of
causing a Participant to recognize income (for federal income tax purposes) with
respect to a Participant's Deferral Account prior to the actual distribution to
a Participant of such Deferral Account, shall be effective.

                                   ARTICLE IV
                                      TRUST

Section 4.1 Trust.

         a.       The Company shall cause the payment of benefits under this
Plan to be made in whole or in part by the Trustee of the PacifiCare Health
Systems, Inc. Rabbi Trust (the "Trust") in accordance with the provisions of
this Section 4.1. As soon as administratively possible after Participant's
deferral is made (but no later than the tax return due date of the Company for
such year), the Employers shall contribute to the Trust for each Participant an
amount equal to the amount deferred by the Participant for the Plan Year.
Notwithstanding anything contained herein, contributions to the Trust by each
Employer may be made throughout the Plan Year.

         b.       The Committee shall direct the Trustee to pay the Participant
or his or her Beneficiary at the time and in the amount described in the Article
III. In the event the amounts held under the Trust are not sufficient to provide
the full amount (excluding amounts described in Section 3.8(c)) payable to the
Participant, the Employers shall pay

                                       12

<PAGE>

for the remainder of such amount at the times set forth in Section 3.8,
(excluding amounts described in Section 3.8(c)).

                                    ARTICLE V
                                 ADMINISTRATION

Section 5.1 Committee.

         A number of individuals shall be appointed by, and serve at the
pleasure of, the Compensation Committee as a committee to administer this Plan
(the "Committee"). The number of members comprising the Committee shall be
determined by the Compensation Committee, which may from time to time vary the
number of members. A member of the Committee may resign by delivering a written
notice of resignation to the Compensation Committee. The Compensation Committee
may remove any member by delivering a certified copy of its resolution of
removal to such member. Vacancies in the membership of the Committee shall be
filled promptly by the Compensation Committee.

Section 5.2 Committee Action.

         The Committee shall act at meetings by affirmative vote of a majority
of the members of the Committee. Any action permitted to be taken at a meeting
may be taken without a meeting if, prior to such action, a written consent to
the action is signed by all members of the Committee and such written consent is
filed with the minutes of the proceedings of the Committee. A member of the
Committee shall not vote or act upon any matter, which relates solely to himself
or herself as a Participant. The Chairman or any other member or members of the
Committee designated by the Chairman may execute any certificate or other
written direction on behalf of the Committee.

         Section 5.3 Powers and Duties of the Committee.

         a.       The Committee, on behalf of the Participants and their
Beneficiaries, shall enforce the Plan in accordance with its terms, shall be the
"Plan Administrator" charged with the general administration of the Plan, and
shall have all discretionary authority and powers necessary to accomplish its
purposes, including, but not by way of limitation, the following:

                  i.       To select the funds or contracts to be the Funds in
         accordance with Section 3.3(b);

                                       13

<PAGE>

                  ii.      To construe and interpret the terms and provisions of
         this Plan;

                  iii.     To compute and certify to the amount and kind of
         benefits payable to Participants and their Beneficiaries;

                  iv.      To maintain all records that may be necessary for the
         administration of the Plan;

                  v.       To provide for the disclosure of all information and
         the filing or provision of all reports and statements to Participants,
         Beneficiaries or governmental agencies as shall be required by law;

                  vi.      To make and publish such rules for the regulation of
         this Plan and procedures for the administration of this Plan as are not
         inconsistent with, the terms hereof;

                  vii.     To appoint a plan administrator or any other agent,
         and to delegate to them such powers and duties in connection with the
         administration of this Plan as the Committee may from time to time
         prescribe; and

                  viii.    To take all actions set forth in the Trust agreement,
         including determining whether to hold or discontinue the policies.

Section 5.4 Construction and Interpretation.

         The Committee shall have full discretion to construe and interpret the
terms and provisions of this Plan, which interpretation or construction shall be
final and binding on all parties, including but not limited to the Company and
any Participant or Beneficiary. The Committee shall administer such terms and
provisions in a uniform and nondiscriminatory manner and in full accordance with
any and all laws applicable to the Plan.

                                       14

<PAGE>

Section 5.5 Information.

         To enable the Committee to perform its functions, the Employers shall
supply full and timely information to the Committee on all matters relating to
the compensation of all Participants, their death or other cause of termination,
and such other pertinent facts as the Committee may require.

Section 5.6 Compensation, Expenses and Indemnity.

         a.       The members of the Committee shall serve without compensation
for their services hereunder.

         b.       The Committee is authorized at the expense of the Company to
employ such legal counsel, as it may deem advisable to assist in the performance
of its duties hereunder. Expenses and fees in connection with the administration
of the Plan shall be paid by the Company.

         c.       To the extent permitted by applicable state law, the Company
shall indemnify and hold harmless the Committee and each member thereof, the
Board of Directors, the Compensation Committee and any delegate of the Committee
who is an employee of the Company against any and all expenses, liabilities and
claims, including legal fees to defend against such liabilities and claims
arising out of their discharge in good faith of responsibilities under or
incident to this Plan, other than expenses and liabilities arising out of bad
faith willful misconduct. This indemnity shall not preclude such further
indemnities as may be available under insurance purchased by the Company or
provided by the Company under any bylaw, agreement or otherwise, as such
indemnities are permitted under state law.

Section 5.7 Quarterly Statements.

         Under procedures established by the Committee, a Participant shall
receive a statement with respect to such Participant's Deferral Account on a
quarterly basis as of each March 31, June 30, September 30 and December 31.

Section 5.8 Suspension of Deferrals.

         a.       At the request of a Participant, the Committee may at its sole
discretion, pursuant to rules adopted by it and applied in a uniform manner,
suspend an election to defer Salary made pursuant to Article III during the Plan
Year for which the election to defer was made because of circumstances arising
out of an event beyond the control of the Participant, as determined by the
Committee in accordance with uniform rules adopted by it. Requests to suspend
Bonus deferrals must be made prior to October 1 of a succeeding plan year to be
considered by the Committee for suspension. If the Committee permits the
suspension of an election to defer, a Participant will be ineligible to
participate in this Plan for the balance of the Plan Year and for the following
Plan Year.

                                       15

<PAGE>

         b.       In the event a Participant requests to suspend participation
during his or her salary continuation/severance period and his or her request is
approved by the Committee, this event will trigger termination and distribution
will be made subject to the following restrictions:

                  (i)      The election to cease participation during salary
         continuation/severance shall be made by filing a form provided by and
         filed with the Committee;

                  (ii)     Distribution of the Distributable Amount shall be
         paid as soon as administratively possible after the end of the calendar
         month of the Committee approval; and

                  (iii)    The Distributable Amount shall be paid as elected
         under the Participant's retirement or termination election provided his
         or her election is filed with the Committee at least one year prior to
         his or her termination of employment with all Employers

                  (iv)     If a Participant receives a distribution under the
         above provisions, the Participant will be ineligible to participate in
         this Plan for the remainder of the salary continuation/severance
         period.

Section 5.9 Claim Procedures.

         a.       Claim. A person who believes that he or she is being denied a
benefit to which he or she is entitled under this Plan (hereinafter referred to
as "Claimant") may file a written request for such benefit with the Plan
Administrator, setting forth his or her claim.

         b.       Claim Decision. Upon receipt of a claim, the Plan
Administrator shall advise the Claimant that a reply will be forthcoming within
90 days and shall, in fact, deliver such reply within such period. The Plan
Administrator may, however, extend the reply period for an additional 90 days
for special circumstances.

         If the claim is denied in whole or in part, the Plan Administrator
shall inform the Claimant in writing, using language calculated to be understood
by the Claimant, setting forth: (A) the specified reason or reasons for such
denial; (B) the specific reference to pertinent provisions of this Plan on which
such denial is based; (C) a description of any additional material or
information necessary for the Claimant to perfect his or her claim and an
explanation why such material or such information is necessary; (D) appropriate
information as to the steps to be taken if the Claimant wishes to submit the
claim for review; and (E) the time limits for requesting a review under
subsection 5.9(c).

         c.       Request for Review. Within 60 days after the receipt by the
Claimant of the written opinion described above, the Claimant may request in
writing that the Committee review the determination of the Plan Administrator.
The Claimant or his or her duly authorized representative may, but need not,
review the pertinent documents and submit issues and comments in writing for
consideration by the Committee. If the

                                       16

<PAGE>

Claimant does not request a review within such 60 day period, he or she shall be
barred and estopped from challenging the Plan Administrator's determination.

         d.       Review of Decision. Within 60 days after the Committee's
receipt of a request for review, after considering all materials presented by
the Claimant, the Committee will inform the Participant in writing, in a manner
calculated to be understood by the Claimant, of its decision setting forth the
specific reasons for the decision and containing specific references to the
pertinent provisions of this Plan on which the decision is based. If special
circumstances require that the 60 day time period be extended, the Committee
will so notify the Claimant and will render the decision as soon as possible,
but no later than 120 days after receipt of the request for review.

                                   ARTICLE VI
                                  MISCELLANEOUS

Section 6.1 Unsecured General Creditor.

         Participants and their Beneficiaries, heirs, successors, and assigns
shall have no legal or equitable rights, claims, or interest in any specific
property or assets of any Employer. Any and all of the assets of each Employer
shall be, and remain, the general unpledged, unrestricted assets of such
Employer. Each Employer's obligation under this Plan shall be merely that of an
unsecured promise to pay money in the future, and the rights of the Participants
and Beneficiaries shall be no greater than those of unsecured general creditors.
It is the intention of the Company that this Plan (and the Trust described in
Article IV) be unfunded for purposes of the Code and for purposes of Title I of
ERISA.

Section 6.2 Restriction Against Assignment.

         The Employers shall pay all amounts payable hereunder only to the
person or persons designated by the Plan and not to any other person or
corporation. No part of a Participant's Deferral Account shall be liable for the
debts, contracts, or engagements of any Participant, his or her Beneficiary, or
successors in interest, nor shall a Participant's Deferral Account be subject to
execution by levy, attachment, or garnishment or by any other legal or equitable
proceeding, nor shall any such person have any right to alienate, anticipate,
sell, transfer, commute, pledge, encumber, or assign any benefits or payments
hereunder in any manner whatsoever. If any Participant, Beneficiary or successor
in interest is adjudicated bankrupt or purports to anticipate, alienate, sell,
transfer, commute, assign, pledge, encumber or charge any distribution or
payment from the Plan, voluntarily or involuntarily, the Committee, in its
discretion, may cancel such distribution or payment (or any part thereof) to or
for the benefit of such Participant, Beneficiary or successor in interest in
such manner as the Committee shall direct.

Section 6.3 Change of Control.

         For purposes of this Plan, "Change of Control" means the first to occur
of any of the following: (i) a business combination effectuated through the
merger or

                                       17

<PAGE>

consolidation of the Company with or into another entity where the Company is
not the Surviving Organization; (ii) any business combination effectuated
through the merger or consolidation of the Company with or into another entity
where the Company is the Surviving Organization, and such business combination
occurred with an entity whose market capitalization prior to the transaction was
greater than 50 percent of the Company's market capitalization prior to the
transaction; (iii) the sale in a transaction or series of transactions of all or
substantially all of the Company's assets; (iv) any "person" or "group" (within
the meaning of Sections 13(d) and 14(d) of the Exchange Act) other than
UniHealth, a California non-profit public benefit corporation; (v) a dissolution
or liquidation of the Company; or (vi) the Company ceases to be subject to the
reporting requirements of the Exchange Act as a result of a "going private
transaction" (within the meaning of the Exchange Act). For purposes hereof,
"Surviving Organization" shall mean any entity where the majority of the members
of such entity's board of directors are persons who were members of the
Company's board of directors prior to the merger, consolidation or other
business combination and the senior management of the surviving entity includes
all of the individuals who were the Company's executive management (the
Company's chief executive officer and those individuals who report directly to
the Company's chief executive officer) prior to the merger, consolidation or
other business combination and such individuals are in at least comparable
positions with such entity. The Committee may make such determinations and
interpretations and adopt such rules and conditions as it, in its absolute
discretion, deems appropriate in connection with a Change in Control. All such
determinations and interpretations by the Committee shall be conclusive.

Section 6.4 Beneficiary.

         For purposes of the this Plan, "Beneficiary" or "Beneficiaries" mean
the person or persons, including a trustee, personal representative or other
fiduciary, last designated in writing by a Participant in accordance with
procedures established by the Committee to receive the benefits specified
hereunder in the event of the Participant's death. No beneficiary designation
shall become effective until it is filed with the Committee. If there is no such
designation or if there is no surviving designated Beneficiary, then the
Participant's surviving spouse shall be the Beneficiary. If there is no
surviving spouse to receive any benefits payable in accordance with the
preceding sentence, the participant's estate shall be the Beneficiary. In the
event any amount is payable under the Plan to a minor, payment shall not be made
to the minor, but instead be paid (a) to that person's living parent(s) to act
as custodian, (b) if that person's parents are then divorced, and one parent is
the sole custodial parent, to such custodial parent, or (c) if no parent of that
person is then living, to a custodian selected by the Committee to hold the
funds for the minor under the Uniform Transfers or Gifts to Minors Act in effect
in the jurisdiction in which the minor resides. If no parent is living and the
Committee decides not to select another custodian to hold the funds for the
minor, then payment shall be made to the duly appointed and currently acting
guardian of the estate for the minor or, if no guardian of the estate for the
minor is duly appointed and currently acting within 60 days after the date the
amount becomes payable, payment shall be deposited with the court having
jurisdiction over the estate of the minor.

                                       18

<PAGE>

Section 6.5 Withholding.

         There shall be deducted from each payment made under this Plan or any
other compensation payable to the Participant (or Beneficiary) all taxes which
are required to be withheld by the Company in respect to such payment under this
Plan. The Company shall have the right to reduce any payment (or compensation)
by the amount of cash sufficient to provide the amount of said taxes.

Section 6.6 Amendment, Modification, Suspension or Termination.

         The Compensation Committee may amend, modify, suspend or terminate this
Plan in whole or in part, except that no amendment, modification, suspension or
termination shall have any retroactive effect to reduce any amounts allocated to
a Participant's Deferral Account (neither the policies themselves, nor the death
benefit described in Section 3.8(c) shall be treated as allocated to Deferral
Account). In the event that this Plan is terminated, the amounts allocated to a
Participant's Deferral Account shall be distributed to the Participant or, in
the event of his or her death, his or her Beneficiary in a lump sum within 30
days following the date of termination.

Section 6.7 Governing Law.

         This Plan shall be construed, governed and administered in accordance
with the laws of the United States and to the extent not preempted by such law
by the laws of the State of California.

Section 6.8 Receipt or Release.

         Any payment to a Participant or the Participant's Beneficiary in
accordance with the provisions of this Plan shall to the extent thereof, be in
full satisfaction of all claims for benefits under this Plan against the
Committee and the Company. The Committee may require such Participant or
Beneficiary, as a condition precedent to such payment, to execute a receipt and
release to such effect.

Section 6.9 Effective Date.

         This Third Amended and Restated PacifiCare Health Systems, Inc.
Non-Qualified Deferred Compensation Plan shall be effective with respect to all
Participants, Beneficiaries and any person claiming benefits under the Plan as
of October 23, 2003 except as otherwise expressly indicated to the contrary.

                                       19Exhibit 10.28

                          THIRD CONSENT AND AMENDMENT

         This Third Consent and Amendment (the "Consent and Amendment") is
dated as of September 8, 2003, among GFSI, Inc., a Delaware corporation (the
"Borrower"), GFSI Holdings, Inc., a Delaware corporation ("Holdings"), each of
the financial institutions a party to thereto (such financial institutions,
together with their successors and assigns, are referred to in this Consent
and 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") and pertains to the Loan Documents, including,
without limitation:

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

                  (ii) the Security Agreement dated as of March 28, 2002,
         among Borrower, Event 1, Inc., CC Products, Inc. and Agent (as it has
         been or may hereafter be amended, restated, supplemented, extended or
         otherwise modified, the "Security Agreement"), and

                  (iii) the Pledge Agreement dated as of March 28, 2002,
         between Holdings and the Agent (as it has been or may hereafter be
         amended, restated, supplemented, extended or otherwise modified, the
         "Holdings Pledge Agreement"), and

                  (iv) the Pledge Agreement dated as of March 28, 2002,
         between Borrower and Agent (as it has been or may hereafter be
         amended, restated, supplemented, extended or otherwise modified, the
         "Borrower Pledge Agreement").

                                   Recitals

         1. Jefferies & Company ("Jefferies") is purchasing 11.375% Senior
Discount Notes of Holdings (the "Notes") with an aggregate principal amount at
maturity exceeding $40 million. In connection with these purchases, the
Indenture dated September 17, 1997, between Holdings and U.S. Bank, N.A. (as
successor to State Street Bank and Trust Company), as Trustee (as amended, the
"Indenture"), as amended by the First Supplemental Indenture dated as of
October 11, 1999, will be further amended by a Second Supplemental Indenture
(the "Second Supplemental Indenture"). Jefferies will then sell to Borrower
and Gearcap (as defined below), and Borrower and Gearcap will each purchase
from Jefferies, the Notes (as described in paragraphs 2 and 3 below).

         2. Larry D. Graveel (a director and officer of Borrower and Holdings
and a beneficial stockholder of Holdings), Michael H. Gary (a director and
officer of Borrower and Holdings and a beneficial stockholder of Holdings) and
Barry Golden (a beneficial stockholder of Holdings) formed a Delaware limited
liability company called Gearcap LLC ("Gearcap"). Gearcap is being initially
capitalized with approximately $12.3 million in initial capital contributions

                                     -1-
<PAGE>

by Messrs. Graveel, Gary and Golden and borrowings from Messrs. Golden and
Robert M. Wolff (a director and officer of Borrower and Holdings and a
beneficial stockholder of Holdings). Gearcap's repayment of these member loans
is being secured by Gearcap's pledge of the Holdings stock it acquires from
Holdings (as described in paragraph 4 below) to Messrs. Golden and Wolff.

         Gearcap is using these funds to purchase Notes from Jefferies (as
described in paragraph 1 above) and to pay the 2003 Transaction Expenses (as
described in paragraph 9 below).

         3. Borrower is borrowing up to $10 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.

         4. Holdings and Gearcap will enter into an Exchange Agreement (the
"Exchange Agreement") under which they will agree to exchange newly authorized
stock of Holdings for Notes. Gearcap will exchange the Notes it purchases from
Jefferies for, and Holdings will issue to Gearcap in exchange for the Notes
being tendered:

                  (a) 8,250 shares of duly authorized and fully paid shares of
         Series C common stock of Holdings (approximately 80% of the fully
         diluted issued and outstanding common stock of Holdings and with
         substantially the same attributes as Holdings' existing Series A and
         B common stock), and

                  (b) 11,490 shares of duly authorized and fully paid shares
         of Series E 10% Cumulative Preferred Stock of Holdings (approximately
         78% of the fully diluted issued and outstanding preferred stock of
         Holdings and with substantially the same attributes as Holdings'
         existing Series A, B and C preferred stock).

         After the exchange, the ownership (of record or beneficial) of
Holdings common stock will be approximately as follows:

         ========================================= =======================
         Stockholder                               Percentage
                                                   Directly Held
         ----------------------------------------- -----------------------
         Gearcap                                            80%
         ----------------------------------------- -----------------------
         Management Stockholders                            10%
         ----------------------------------------- -----------------------
         Jordan Stockholders                                10%
         ========================================= =======================

         5. Borrower and Holdings will enter into a contribution agreement
(the "Contribution Agreement") under which Holdings will contribute the Notes
it receives from Gearcap to Borrower as a capital contribution. Borrower will
hold these Notes as an investment and pledge them as additional Collateral
under the Credit Agreement.

                                     -2-
<PAGE>

         6. Holdings and its shareholders (including Gearcap) will enter into
an agreement (the "Second Amended and Restated Stockholders Agreement") that
amends the existing Amended and Restated Subscription and Stockholders
Agreement dated as of December 19, 2000, among Holdings and its shareholders.

         7. Holdings and Gearcap will enter into a management agreement (the
"2003 Management Agreement") with Gearcap under which Gearcap will provide
certain services to Holdings and its affiliates in return for the payment of
certain fees and expenses. The 2003 Management Agreement will have a 10 year
term and will be in addition to the TJC Amendment (as defined below).

         8. Holdings and TJC Management Corporation will enter into an
agreement (the "TJC Amendment") that amends the existing Management Consulting
Agreement between them dated February 27, 1997, to reduce the amount payable
by Holdings to TJC Management Corporation from up to $1,000,000 annually to
$100,000 annually plus reasonable out of pocket expenses.

         9. Gearcap, Holdings and Borrower will bear the transaction costs
relating to the 2003 Recapitalization Transactions (as defined below),
including, without limitation, commissions, trading fees and other fees of
Jefferies, the Amendment Fee (as defined below) and legal, accounting and tax
opinion fees and related expenses (collectively, the "2003 Transaction
Expenses").

         10. The three directors of Holdings and Borrower representing the
Jordan shareholders will resign. The vacancies created by these resignations
will either be filled with new directors or eliminated by reducing the size of
the Boards of Directors, or both.

         11. The Stated Termination Date under the Credit Agreement will be
extended to January 15, 2006 (or the date to which the Credit Agreement is
extended under Section 10.1 of the Credit Agreement), if Borrower and Gearcap
(or either of them) purchase, in the aggregate, Notes with an aggregate
principal amount at maturity exceeding $50,000,000 on or before December 31,
2003.

         12. Messrs. Graveel, Gary and Peterson will cease being employed by
Holdings and become employed by Gearcap.

         13. The Articles of Incorporation of Holdings will be amended (the
"Articles Amendment").

         14. The transactions and related matters described above in these
Recitals and as more fully described in Indenture (as amended by the Second
Supplemental Indenture), the Exchange Agreement, the Contribution Agreement,
the Second Amended and Restated Stockholders Agreement, the 2003 Management
Agreement, the TJC Agreement Amendment, the Articles Amendment and the
documents and instruments referred to or delivered by Borrower, Holdings or
Gearcap under them (collectively, the "Recapitalization Documents") are
collectively referred to in this Consent and Amendment as the "2003
Recapitalization Transactions." In connection with these transactions,
Borrower has requested that the Lenders and Agent execute and deliver this
Consent and Amendment.

                                     -3-
<PAGE>

                                   Agreement

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

         1. Definitions. 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.

         2. Amendment Fee. Borrower will pay to Agent, for the ratable benefit
of Lenders, an amendment fee in an amount equal to $150,000 (the "Amendment
Fee"), which fee will be fully earned on the date of this Consent and
Amendment and payable on the date on which Borrower purchases its 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. Loan Document Consents. Upon satisfaction of the conditions set
forth in Section 5 of this Consent and Amendment, Agent and Lenders agree as
set forth below in this Paragraph 3. These agreements are not effective as to
any Note purchases or 2003 Transaction Expenses occurring after December 31,
2003.

                  (a) Lenders and Agent agree that this Consent and Amendment
         satisfies any duty of Borrower or its Subsidiaries to give notice to
         Lenders or Agent under the Loan Documents, including under Section
         5.3(j) of the Credit Agreement and Section 4 of the Security
         Agreement, of the location of the Collateral or the relocation of the
         Collateral, but only with respect to Notes and only to the extent
         that the Notes constitute Collateral.

                  (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 $10,000,000 for Borrower's purchase of Notes and
         for the payment of the 2003 Transaction Expenses; provided, that:

                                     -4-
<PAGE>

                           (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.

                  (c) Notwithstanding the provisions of Section 7.10 of the
         Credit Agreement that prohibit certain Restricted Investments,
         Lenders and Agent consent and agree to Borrower's purchase of Notes
         from Jefferies, and Holdings' acquisition of Notes from Gearcap and
         subsequent contribution of Notes to Borrower. Lenders and Agent
         acknowledge that Borrower may purchase additional Notes,
         notwithstanding the limitations set forth in this paragraph (c), with
         Gearcap funding, with the written consent and agreement of Lenders
         and Agent after the date of this Consent and Amendment.

                  (d) Notwithstanding the provisions of Section 7.13 of the
         Credit Agreement and Section 6(d) of the Holdings Pledge Agreement,
         Lenders and Agent consent and agree that Holdings has no obligation
         to pledge, and will not pledge, the Notes that it receives from
         Gearcap under the Exchange Agreement and contributes to Borrower
         under the Contribution Agreement.

                  (e) Notwithstanding the provisions of Section 7.15 of the
         Credit Agreement that prohibit Borrower from investing in an
         Affiliate, purchasing indebtedness of an Affiliate, paying the
         expenses of an Affiliate, or engaging in certain other transactions,
         Lenders and Agent consent and agree to:

                           (i) Borrower's purchase of Notes, provided that:

                                    (A) such Note purchases occur no later
                           than December 31, 2003,

                                    (B) Borrower uses no more than $10,000,000
                           in the aggregate of the proceeds of the Loans to
                           acquire such Notes and pay 2003 Transaction
                           Expenses, and

                                    (C) 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,

                           (ii) Borrower's payment of the 2003 Transaction
                  Expenses, and

                           (iii) Borrower's and Holdings' execution and
                  delivery of the Contribution Agreement and the consummation
                  of the transactions contemplated under it.

                                     -5-
<PAGE>

                  (f) Notwithstanding the provisions of Section 7.15 of the
         Credit Agreement that prohibit Borrower and its Subsidiaries from
         transferring, purchasing or repurchasing any stock or indebtedness of
         any Affiliate, and engaging in certain other transactions, Agent and
         Lenders consent and agree to Borrower's and Holdings' execution and
         delivery of the Contribution Agreement and the consummation of the
         transactions contemplated under it.

                  (g) Notwithstanding the provisions of Section 7.17 of the
         Credit Agreement that prohibit Borrower from engaging in any business
         other than the business it was engaged in the date of the Credit
         Agreement, Lenders and Agent consent and agree to Borrower's:

                           (i) purchase or receipt of Notes, and

                           (ii) subsequent holding of the Notes as an
                  investment.

                  (h) Notwithstanding the provisions of Section 9.1(p) of the
         Credit Agreement under which a Change of Control is an Event of
         Default, the Lenders and Agent consent to the Change of Control
         otherwise caused by the 2003 Recapitalization Transactions and waive
         any resulting Event of Default. Lenders and Agent acknowledge and
         agree that Holdings and Borrower may replace the Jordan Directors
         and/or reduce the size of their respective Boards of Directors.

                  (i) Agent and Lenders agree that they will, at any time and
         from time to time, at Borrower's reasonable request and at Borrower's
         expense, execute and deliver to Borrower all other instruments that
         are reasonably necessary to effectuate the 2003 Recapitalization
         Transactions.

                  (j) Notwithstanding any other provision of any of the Loan
         Documents, and without limitation by the specific consents and
         amendments granted or made in this Consent and Amendment, the Lenders
         and Agent consent to the 2003 Recapitalization Transactions, as
         described in the Recitals and more fully described in the
         Recapitalization Documents.

         4. Amendments. The Loan Documents are amended as follows:

                  (a) Schedule 6.4 to the Credit Agreement ("Corporate Name;
         Prior Transactions") is amended in its entirety by substituting the
         revised Schedule 6.4 that is attached to this Consent and Amendment
         as Exhibit A.

                  (b) Schedule 6.5 to the Credit Agreement ("Subsidiaries and
         Affiliates") is amended in its entirety by substituting the revised
         Schedule 6.5 that is attached to this Consent and Amendment as
         Exhibit B.

                  (c) Section 6.7(b) of the Credit Agreement is amended in its
         entirety so that, as amended, it reads as follows:

                                     -6-
<PAGE>

                           "(b) Holdings' authorized common capital stock
         consists of:

                                    (i) 1,000 shares of Series A common stock,
                           par value $.01 per share of which 1,000 shares are
                           validly issued and outstanding or held as treasury
                           stock, fully paid and non-assessable,

                                    (ii) 1,000 shares of Series B common
                           stock, par value $.01 per share, of which 1,000
                           shares are validly issued and outstanding, fully
                           paid and non-assessable and; in each case, are
                           owned beneficially and of record by the parties
                           listed on Schedule 6.7, and

                                    (iii) 12,000 shares of Series C common
                           stock, par value $.01 per share, of which 8,250
                           shares are validly issued and outstanding, fully
                           paid and non-assessable and are owned of record by
                           Gearcap."

                  (d) Schedule 6.7 to the Credit Agreement ("Capitalization")
         is amended in its entirety so that, as amended, it reads as set forth
         on the attached Exhibit C.

                  (e) Schedule 6.26 to the Credit Agreement ("Material
         Agreements") is amended in its entirety by substituting the revised
         Schedule 6.26 that is attached to this Consent and Amendment as
         Exhibit D.

                  (f) The proviso at the end of the definition of "Affiliate"
         in the Credit Agreement is amended so that as amended, it reads as
         follows:

                  "provided, however, that the term "Affiliate" specifically
                  excludes JZ Equity Partners PLC and Gearcap."

                  (g) The definition of "Change of Control" in the Credit
         Agreement is amended to read as follows:

                      "Change of Control" means any event, transaction or
                  occurrence as a result of which:

                                (a) the Management Stockholders
                       collectively cease to own and control, whether
                       directly of record or through ownership of units of
                       Gearcap, all of the economic and voting rights
                       associated with ownership of at least fifty-five
                       percent (55%) of the outstanding common stock of
                       Holdings,

                                (b) Holdings ceases to own and control all
                       of the economic and voting rights associated with
                       all of the outstanding capital stock of Borrower,
                       or

                                (c) Borrower ceases to own and control all
                       of the economic and voting rights associated with
                       all of the outstanding capital stock of any of its
                       Subsidiaries.

                                     -7-
<PAGE>

                        For purposes of this definition, ownership of any
                  percentage of the equity units of Gearcap is deemed to be
                  ownership of the same percentage of the shares of common
                  stock of Holdings then held by Gearcap.

                  (h) The definition of "ERISA Affiliate" in the Credit
         Agreement is amended by adding at the end of the definition the
         following proviso:

                  "provided, however, that the term "ERISA Affiliate"
                  specifically excludes Gearcap."

                  (i) The definition of "Jordan Stockholders" in the Credit
         Agreement is deleted in its entirety.

                  (j) The definition of "Management Stockholders" in the
         Credit Agreement is amended so that as amended, it reads as follows:

                           "Management Stockholders" means Robert Wolff, Larry
                  Graveel, Mike Gary, J. Craig Peterson, Jason Krakow, Carl
                  Allard, Jim Malseed and their family members and trusts for
                  the benefit of any of the foregoing."

                  (k) The definition of "Permitted Holdings Payments" in the
         Credit Agreement is amended in its entirety by substituting the
         revised definition that is attached to this Consent and Amendment as
         Exhibit E.

                  (l) The definition of "Stated Termination Date" in the
         Credit Agreement is amended so that, as amended, it reads as follows:

                           "Stated Termination Date" means January 15, 2005,
                  or the date to which this Agreement is extended pursuant to
                  Section 10.1; provided that if Borrower and Gearcap (or
                  either of them) purchase, in the aggregate, Holdings'
                  11.375% Senior Discount Notes with an aggregate principal
                  amount at maturity exceeding $50,000,000 on or before
                  December 31, 2003, then "Stated Termination Date" will mean
                  January 15, 2006, or the date to which this Agreement is
                  extended pursuant to Section 10.1.

                  (m) Section 6(a) of the Security Agreement is amended so
         that, as amended, it reads as follows:

                  "such Grantor has rights in and the power to transfer all of
                  the Collateral free and clear of all Liens whatsoever,
                  except for Permitted Liens and except for the limitations
                  and restrictions imposed on the transfer of securities
                  (including the Notes) by applicable federal and state law."

                  (n) Schedule I to the Borrower Pledge Agreement is amended
         in its entirety by substituting the revised Schedule I that is
         attached to this Consent and Amendment as Exhibit F.

                                     -8-
<PAGE>

                  (o) The definition of "Fixed Charges" is amended in its
         entirety so that as amended, it reads as follows:

                           "Fixed Charges" means, with respect to any fiscal
                  period of Holdings on a consolidated basis, without
                  duplication, interest expense paid in cash, scheduled
                  principal payments of Debt, scheduled amortization of the
                  Fixed Asset Amount, Federal, state, local and foreign income
                  taxes (net of any tax benefits with respect to such taxes),
                  excluding deferred taxes, but including all such taxes paid
                  by or refunded to, Holdings and its Subsidiaries on a
                  consolidated basis and without duplication of amounts
                  deductible in the calculation of EBITDA, all Distributions
                  paid in cash by Holdings and the borrower, plus the
                  difference between:

                                    (i) any Distribution paid in cash
                           permitted pursuant to clause (e) or (i) of the
                           definition of Permitted Holdings Payments, minus

                                    (ii) an amount equal to the cash proceeds
                           received by Holdings from stock issuances, stock
                           reissuances or the exercise of stock options to the
                           extent such proceeds are distributed or contributed
                           to the Borrower,

                  but "Fixed Charges" does not include:

                                    (A) Borrower's payment of funds to
                           Holdings for use in paying interest or other
                           payments under the Notes that Borrower holds, and
                           Holdings' payment to Borrower of interest or other
                           payments under the Notes that Borrower holds, but
                           in each case only to the extent that Borrower
                           receives the interest or other payments,

                                    (B) Borrower's deemed payment of funds to
                           Holdings for use in paying interest or other
                           payments under the Notes that Borrower holds, and
                           Holdings' deemed payment to Borrower of interest or
                           other payments under the Notes that Borrower holds,
                           but in each case only to the extent that Borrower
                           is credited with the deemed interest or other
                           payments, and

                                    (C) Borrower's assignment to Holdings of
                           its right to receive interest or other payments
                           under the Notes that Borrower holds, subject to the
                           rights of Agent and Lenders under the Loan
                           Documents with respect to Collateral upon the
                           occurrence of an Event of Default.

                  (p) Annex A to the Credit Agreement is amended by adding the
         following new definitions:

                                     -9-
<PAGE>

                           "Consent and Amendment" means the Third Consent and
                  Amendment to this Credit Agreement.

                           "Gearcap" means Gearcap LLC, a Delaware limited
                  liability company.

                           "2003 Transaction Expenses" means the transaction
                  costs relating to the recapitalization transactions
                  described in the Consent and Amendment, including, without
                  limitation, commissions, trading fees and other fees of
                  Jefferies & Company, the amendment fee paid by Borrower in
                  connection with the Consent and Amendment and legal,
                  accounting and tax opinion fees and related expenses

         5.       Conditions to Effectiveness.

                  (a) Except as set forth in subparagraph (b) below, this
         Consent and Amendment will become effective when each of the
         following conditions precedent has been met or waived in writing by
         Agent:

                           (i) Consent and Amendment. Agent, Borrower,
                  Holdings, Event 1, Inc. CC Products, Inc. and Lenders will
                  have delivered to the others duly executed counterparts to
                  this Consent and Amendment.

                           (ii) Reaffirmation of Guaranty. Holdings will have
                  executed and delivered to Agent the Reaffirmation of
                  Guaranty attached to this Consent and Amendment.

                  (b) Assuming that the conditions precedent set forth in
         clause (a) above have been satisfied:

                           (i) Clauses (b), (d), (g) and (i) of Paragraph 4
                  ("Amendments") of this Consent and Amendment will become
                  effective upon the consummation of the related transactions,
                  as the case may be, contemplated by the Exchange Agreement
                  or other Recapitalization Documents.

                           (ii) To the extent that clause (c) of Paragraph 4
                  ("Amendments") of this Consent and Amendment pertains to the
                  authorized capital stock of Holdings, it will become
                  effective upon the filing of the Articles Amendment. The
                  remainder of this clause (c) will become effective upon the
                  consummation of the related transactions, contemplated by
                  the Exchange Agreement or other Recapitalization Documents.

                           (iii) To the extent clause (k) of Paragraph 4
                  ("Amendments") of this Consent and Amendment pertains to
                  subparagraph (a) of the "Permitted Holdings Payments"
                  definition found on Exhibit E, it will become effective upon
                  the execution and delivery of the TJC Amendment.

                                     -10-
<PAGE>

                           (iv) Clause (n) of Paragraph 4 ("Amendments") of
                  this Consent and Amendment will become effective upon the
                  earlier of (A) the consummation of the related transactions
                  contemplated by the Contribution Agreement, and (B)
                  Borrower's purchase of Notes or other Recapitalization
                  Documents.

         6. Acknowledgment and Deliveries. Borrower affirms its obligation
under the Loan Documents to pledge the Notes it acquires from Jefferies and
the Notes it acquires from Holdings to Agent (for itself and for the benefit
of the Lenders), and will do so promptly after acquiring the Notes.

         Borrower will deliver fully executed copies of the Recapitalization
Documents to Agent, certified as complete and accurate by an officer of
Borrower, promptly upon the execution and delivery of the Recapitalization
Documents.

         7. Costs and Expenses. As provided in Section 13.7 of the Credit
Agreement, Borrower will reimburse Agent for all reasonable costs and expenses
that Agent incurs (including reasonable attorneys' costs) in connection with
the preparation, execution, delivery and administration of this Consent and
Amendment (and the other documents to be delivered in connection with this
Consent and Amendment).

         8. Miscellaneous. Except to the extent compliance with this Consent
and Amendment is expressly waived or consents are granted under this Consent
and Amendment, the Credit Agreement will remain unchanged and in full force
and effect. This Consent and 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 this Consent and Amendment may
execute this Consent and 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 Consent and Amendment be interpreted,
and the rights and liabilities of the parties to this Consent and 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 attached Exhibits A through F are incorporated
into this Consent and Amendment by this reference.

             [The remainder of this page intentionally left blank]

                                     -11-
<PAGE>

         IN WITNESS WHEREOF, the parties to this Consent and 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 Third Consent and Amendment dated
as of September 8, 2003.]

                                     -12-
<PAGE>

                                          EVENT 1, INC.

                                          By:/s/ Larry Graveel
                                             --------------------------------

                                          Name:    Larry Graveel
                                               ------------------------------
                                          Title:   President and CEO
                                                -----------------------------

                                          CC PRODUCTS, INC.

                                          By:/s/ Larry Graveel
                                             --------------------------------

                                          Name:    Larry Graveel
                                               ------------------------------
                                          Title:   President and CEO
                                                -----------------------------

[This is one of the signature pages to the Third Consent and Amendment dated
as of September 8, 2003.]

                                     -13-
<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 Third Consent and Amendment dated
as of September 8, 2003.]

                                     -14-
<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 Third Consent and Amendment dated
as of September 8, 2003.]

                                     -15-
<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 Third Consent and Amendment dated
as of September 8, 2003.]

                                     -16-
<PAGE>

                           Reaffirmation of Guaranty

         The undersigned Guarantor acknowledges receipt of a copy of this
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
                                             --------------------------------

                                          Name:    Larry Graveel
                                               ------------------------------
                                          Title:   President and CEO
                                                -----------------------------

                                     -17-
<PAGE>

                                   EXHIBIT A
                                   ---------

                     Schedule 6.4 to the Credit Agreement
                     (Corporate Name; Prior Transactions)

Borrower and its Subsidiaries have been known by or used the following
corporate or fictitious names within the past five (5) years:

        o GFSI, Inc.
        o Event 1, Inc.
        o CC Products, Inc
        o Gear Canada ULC  .
        o Champion Custom Products
        o CC Products-Champion
        o GEAR For Sports
        o Any of the trademarks listed on Schedule 6.12.

Borrower and/or its Subsidiaries, however, do not receive payments under all
of the trade names.

In the past five (5) years Borrower and/or its Subsidiaries have been a party
to the following transactions:

o       GFSI Holdings, Inc. ("Holdings") on February 27, 1997, acquired all
        of the issued and outstanding capital stock of Winning Ways, Inc. and
        immediately thereafter merged Winning Ways, Inc. with and into GFSI,
        Inc. ("GFSI") with GFSI as the surviving entity. All of the capital
        stock of Winning Ways, Inc. acquired by Holdings in connection with
        the acquisition was contributed to GFSI along with the balance of
        equity contributions.

o       On January 29, 1998, GFSI, Inc. established a wholly owned
        subsidiary, Event 1, Inc. ("Event 1").

o       On June 25, 2001, GFSI, Inc. through a series of corporate
        transactions and mergers effectively acquired 100% of the stock of
        Champion Products, Inc. ("Champion"). Through these corporate
        transactions and mergers, CC Products, Inc. became the successor to
        Champion Products, Inc.

o       On June 29, 2001, GFSI, Inc. sold its Tandem Marketing business.

o       During 2002, GFSI, Inc. constructed a screen print decoration
        facility in Chillicothe, Missouri.

o       As of December 31, 2002, GFSI, Inc. ("GFSI") entered into an Exchange
        Agreement with Jefferies Company, Inc., under which GFSI engaged in
        an exchange of $24,000,000 in aggregate maturity of Notes with a note
        holder, involving GFSI's issuance of approximately $9,900,000
        (aggregate principal amount) of Senior Subordinated Notes pursuant to
        its Indenture dated as of December 31, 2002 for Series A & B 9 5/8%

                                     -18-
<PAGE>

        Senior Subordinated Notes due 2007 with State Street Bank and Trust
        Company (now succeeded by U.S. Bank, N.A.), as trustee. This
        transaction is referred to in the Consent and Amendment Agreement.

o       On August 22, 2003, GFSI, Inc. ("GFSI") entered into a purchase
        contract, lease agreement, commercial lease and related documents
        with Lackman-Lenexa 110, L.L.C. and Crow-Spaulding #4, L.L.C., as the
        case may be, regarding the various sale and relocation transactions
        by which GFSI sold its facility at 16002 W. 110th Street, Lenexa,
        Kansas, and leased property at 9700 Lackman, Lenexa, Kansas. This
        transaction is referred to in the Second Consent and Amendment
        Agreement.

                                     -19-
<PAGE>

                                   EXHIBIT B

                     Schedule 6.5 to the Credit Agreement
                         (Subsidiaries and Affiliates)

------------------------ ---------------------------- -------------------------
Name                     Relationship to Borrower     Place of Formation
------------------------ ---------------------------- -------------------------

                         Parent corporation
GFSI Holdings, Inc.      of Borrower                  Delaware
------------------------ ---------------------------- -------------------------

Event 1, Inc.            Subsidiary to Borrower       Kansas
------------------------ ---------------------------- -------------------------

CC Products, Inc.        Subsidiary to Borrower       Delaware
------------------------ ---------------------------- -------------------------

Gear Canada ULC          Subsidiary to Borrower       Nova Scotia, Canada
------------------------ ---------------------------- -------------------------

Shareholders of record or beneficial shareholders of GFSI Holdings, Inc.
(other than Gearcap) listed on Schedule 6.7 that may be Affiliates.

                                     -20-
<PAGE>

                                   EXHIBIT C
                                   ---------

                     Schedule 6.7 to the Credit Agreement
                               (Capitalization)

Series A Common Stock Shareholders of GFSI Holdings, Inc.:

              Robert M Wolff, Trustee                    60.0
              under that certain Trust
              Agreement dated 5/7/79

              Martin Becker, Trustee of                  30.0
              the Barry S. Golden Trust
              UTA dated 10/7/96

              Larry Douglas Graveel, Trustee of         225.0
              the Larry D. Graveel Revocable
              Trust dated 8/30/91, as amended
              from time to time thereafter, and
              to his successors in trust

              Michael H. Gary, Trustee of the           205.0
              Michael H. Gary Revocable Trust
              dated 3/10/93

              UMB Bank, NA, Trustee for J. Craig         25.0
              Peterson IRA 52-3786-02-8

              UMB Bank, NA, Custodian for J.             25.0
              Craig Peterson IC 51-1329-01-3

              Randall D. Stabenow                        20.0

              Greg M. Johnson                            10.0

              John Joerger                                5.0

              Paul Craig Whitener                        10.0

              James R. Malseed                           40.0

              Christopher Lee Young                      10.0

              David Churchman                            15.0

              Jason A. Krakow                            45.0

                                     -21-
<PAGE>

               Carl Allard                                  15.0

               John White                                    5.0

               Darlene D. Gary, Trustee of the              10.0
               Michael R. Gary Irrevocable Trust
               UTA dated 12/23/96

               Darlene D. Gary, Trustee of the              10.0
               Matthew R. Gary Irrevocable Trust
               UTA dated 12/31/96

Series B Common Stock Shareholders of GFSI Holdings, Inc.:

               Leucadia Investors, Inc.                   125.0
               David W. Zalaznick                         78.3125
               Jonathan F. Boucher                        67.125
               A. Richard Caputo, Jr.                     50.0
               Adam E. Max                                50.0
               John R. Lowden                             22.5
               James E. Jordan, Jr. Profit                1.25
               Sharing Plan & Trust

               Douglas Zych                               7.5
               Paul R. Rodzevik                           5.0
               The Lowden Family Trust                    15.0
               John W. Jordan, II Revocable Trust         68.3125
               Thomas H. Quinn                            10.0
               JZ Equity Partners PLC                     500.0

Series C Common Stock Shareholders of GFSI Holdings, Inc.:

               Gearcap                                   8,250.0

                                     -22-
<PAGE>

                                   EXHIBIT D
                                   ---------

                     Schedule 6.26 to the Credit Agreement
                             (Material Agreements)

After giving effect to the making of the Revolving Loans under the Credit
Agreement with Bank of America, N.A., as Agent, to be made on the Closing
Date, set forth below is a list of "material" agreements and contracts (as
each may be amended from time to time) to which the Borrower or any of its
Subsidiaries is a party or is bound:

      o  Indenture, dated February 27, 1997, between GFSI, Inc. and Fleet
         National Bank, as Trustee as amended by the First Supplemental
         Indenture dated as of June 22, 2001, by the Second Supplemental
         Indenture dated as of February 28, 2002, and by the Third
         Supplemental Indenture dated as of June 11, 2002.

      o  Indemnification Agreements between GFSI Holdings, Inc. and its
         director and executive officers dated February 27, 1997.

      o  Tax Sharing Agreement, dated February 27, 1997, between GFSI, Inc.
         and GFSI Holdings, Inc.

      o  Management Consulting Agreement, dated February 27, 1997, between
         GFSI Holdings, Inc. and TJC Management Corporation, as amended by the
         TJC Amendment.

      o  Employment Agreement, dated February 27, 1997, between GFSI, Inc.
         and Robert M. Wolff.

      o  Noncompetition Agreement, dated February 27, 1997, between GFSI
         Holdings, Inc. and Robert M. Wolff.

      o  Indenture, dated September 17, 1997, between GFSI Holdings, Inc. and
         State Street Bank and Trust Company (now succeeded by U.S. Bank,
         N.A.), as Trustee, as amended by the First Supplemental Indenture
         dated as of October 11, 1999.

      o  Embroidery Strategic Partnership Agreement among GEAR For Sports,
         Impact Design and Kansas Custom dated July 1, 2000.

      o  Screen Print Sourcing Agreement between GEAR For Sports and Impact
         Design dated April 30, 2001, as amended.

      o  CEBA Loan Agreement, dated April 28, 1998, by and among the Iowa
         Department of Economic Development, the City of Bedford and GFSI,
         Inc.

      o  License Agreement, dated October 27, 1998, by and between GFSI,
         Inc. and Bonmax Co., Ltd.

                                     -23-
<PAGE>

      o  Employment Agreement, dated as of April 1, 2001, by and between
         GFSI, Inc. and Robert G. Shaw.

      o  Non-competition Agreement, dated as of April 1, 2001, by and
         between GFSI, Inc. and Robert G. Shaw.

      o  Gear For Sports Distributor Agreement for Corporate Market between
         GFSI, Inc. and Zouire, L.L.C. dated June 29, 2001.

      o  Supply Agreement between GFSI, Inc. and Zouire, L.L.C. dated
         June 29, 2001.

      o  Department of Economic Development CDBG Industrial Infrastructure
         Program Company Participation Agreement dated November 27, 2001 with
         the City of Chillicothe, Missouri as Applicant.

      o  Management Agreement between Gear Canada ULC and Fletcher Leisure
         Group, Inc.

      o  Stock Option Agreements between GFSI Holdings, Inc. and certain of
         the employees of GFSI, Inc. or Gearcap, with various execution dates.

      o  License Agreement by and between Sara Lee Corporation, CC
         Products, Inc., CCP Acquisition, Inc. and GFSI, Inc. dated June 25,
         2001.

      o  Stock Purchase Agreement by and among Sara Lee Corporation,
         Champion Products, Inc. and GFSI, Inc. dated as of April 20, 2001, as
         amended by the First Amendment to Stock Purchase Agreement by and
         among Sara Lee Corporation, Champion Products, Inc. and GFSI, Inc.
         dated June 25, 2001.

      o  Champion Art Management System License Agreement by and among Sara
         Lee Corporation, CC Products, Inc., CCP Acquisition, Inc. and GFSI,
         Inc. dated July 25, 2001.

      o  Champion Art Management Software Agreement by and among Sara Lee
         Corporation, CC Products, Inc., CCP Acquisition, Inc. and GFSI, Inc.
         dated July 25, 2001.

      o  On-Site Supplemental Agreement between GFSI, Inc. and PGA TOUR
         Licensed Properties, Inc. dated January 7, 2002.

      o  Supplemental Employment Agreement, dated March 31, 2002 between
         GFSI, Inc. and Robert M. Wolff.

      o  Indenture, dated as of December 31, 2002 between GFSI, Inc. and
         State Street Bank and Trust Company (now succeeded by U.S. Bank,
         N.A.), as Trustee.

                                     -24-
<PAGE>

      o  Consent and Amendment, dated as of December 31, 2002, to the
         Credit Agreement, dated March 28, 2002.

      o  Lease Agreement dated August 22, 2003 between Crow-Spaulding #4,
         L.L.C., as landlord, and GFSI, Inc., as tenant.

      o  Commercial Lease dated August 22, 2003 between Lackman-Lenexa 110,
         L.L.C., as landlord, and GFSI, Inc., as tenant.

      o  Purchase Contract dated August 21, 2003 between GFSI, Inc., as
         seller, and Lackman-Lenexa 110, L.L.C., as Buyer.

      o  Second Consent and Amendment, dated as of August 12, 2003, to the
         Credit Agreement dated March 28, 2002.

      o  Management Agreement between GFSI Holdings, Inc. and Gearcap, when
         executed and delivered.

      o  Second Amended and Restated Shareholders Agreement by and among
         GFSI Holdings, Inc. and its investors, when executed and delivered.

      o  Amendment to Management Consulting Agreement between GFSI
         Holdings, Inc., and TJC Management Corporation, when executed and
         delivered.

      o  Contribution Agreement between GFSI, Inc., and GFSI Holdings,
         Inc., when executed and delivered.

      o  See contracts and agreements described in Schedules 6.9, 6.11 and
         6.12.

Several agreements, including concessionaire agreements, which have been
entered into by Borrower and/or its Subsidiaries in the ordinary course of
business have not been included in the foregoing list.

                                     -25-
<PAGE>

                                   EXHIBIT E
                                   ---------

         "Permitted Holdings Payments" means any Distribution by the Borrower
or its Subsidiaries to Holdings at any time other than after and during the
occurrence of an Event of Default (except for purposes of any Distribution
described in clause (b) of this definition) for the purpose of:

                  (a) enabling Holdings to pay the fees due under the
         Management Consulting Agreement dated February 27, 1997, as amended,
         in an amount not to exceed $100,000 per annum in quarterly
         installments, plus reasonable out of pocket expenses.

                  (b) meeting obligations with respect to tax obligations
         under the Tax Sharing Agreement dated as of February 27, 1997,
         between Holdings and the Borrower,

                  (c) enabling Holdings to pay the fees due under the
         Management Agreement to be executed and delivered between Holdings
         and Gearcap, provided, that any such fees shall include only interest
         on the $6,500,000 loan to Gearcap by Robert M. Wolff and Barry Golden
         to enable Gearcap to purchase the Notes and pay the 2003 Transaction
         Expenses, reasonable business expenses of Gearcap and its employees
         (including, without limitation, life and other insurance, payroll,
         payroll taxes, employment benefits, accounting fees and related
         expenses, tax related fees and related expenses, and general
         administrative expenses), salaries, bonuses and other related
         compensation amounts for employee members of Gearcap to the extent
         that such employee members were employees of Holdings or Borrower
         immediately before the effectiveness of this Consent and Amendment,

                  (d) enabling Holdings to contribute the 11.375% Senior
         Discount Notes of Holdings to Borrower under the Contribution
         Agreement to be executed and delivered between Holdings and Borrower,

                  (e) making payments and stock repurchases under the Second
         Amended and Restated Stockholders Agreement, as amended from time to
         time, or any related agreements (including payments on any debt
         relating thereto) in an aggregate amount not to exceed $1,000,000 per
         annum,

                  (f) enabling Holdings to pay the costs of accounting, legal,
         administrative, directors, franchise tax, governmental and other
         ordinary course fees (including payments on any debt relating
         thereto), expenses and indemnities, in an aggregate amount not to
         exceed $500,000 per annum,

                  (g) enabling Holdings to pay the 2003 Transaction Expenses,

                  (h) enabling Holdings to pay scheduled payments or other
         amounts due on and after March 15, 2005, under the Notes, or
         otherwise due under the Indenture dated September 17, 1997, between
         Holdings and U.S. Bank, N.A. (as successor to State Street Bank and
         Trust Company), as Trustee, as amended and supplemented and as in
         effect on the date of this Consent and Amendment,

                                     -26-
<PAGE>

                  (i) enabling Holdings to purchase Holdings capital stock
         from current or former executives, management and employees of the
         Borrower or its Subsidiaries of up to a maximum of $500,000 in the
         aggregate per year,

                  (j) enabling Holdings to make any payments required in
         connection with that certain Noncompetition Agreement dated as of
         February 27, 1997 by and between Holdings and Robert M. Wolff in an
         amount not to exceed $250,000 per annum,

and any assignment by Borrower to Holdings of Borrower's rights to receive
interest and other payments from Holdings under the Notes, or otherwise due
under Indenture dated September 17, 1997, between Holdings and U.S. Bank, N.A.
(as successor to State Street Bank and Trust Company), as Trustee, as amended
and supplemented and as in effect on the date of this Consent and Amendment.

         Notwithstanding anything in this Agreement to the contrary, if
Holdings sells any capital stock repurchased under clause (e) or (i) above, an
amount equal to the proceeds of such sales shall be deemed to reduce the
amounts previously applied against the respective maximum amounts set forth in
such clause(s); provided that the proceeds of such sales are distributed to
the Borrower.

                                     -27-
<PAGE>
<TABLE>
<CAPTION>

                                                     EXHIBIT F

                                      Schedule I to Borrower Pledge Agreement

                                                      PART A
                                                      ------

                                                  PLEDGED SHARES

---------------------- ----------------------- --------------------- ---------------------- ----------------------
                                                 Stock Certificate                              Percentage of
 Pledged Entity        Class of Capital Stock        Number(s)          Number of Shares      Outstanding Shares
---------------------- ----------------------- --------------------- ---------------------- ----------------------
<S>                    <C>                     <C>                   <C>                    <C>
 Events 1, Inc.                Common                    1                   1,000                   100%
---------------------- ----------------------- --------------------- ---------------------- ----------------------
CC Products, Inc.              Common                    1                    100                    100%
---------------------- ----------------------- --------------------- ---------------------- ----------------------

<CAPTION>

                                                      PART B
                                                      ------

                                               PLEDGED INDEBTEDNESS

------------------ ---------------- ------------------ ------------------- ------------------ -------------------
  Pledged Entity     Face Amount       Outstanding         Issue Date        Maturity Date      Interest Rate
                                      Balance as of
                                      Closing Date
------------------ ---------------- ------------------ ------------------- ------------------ -------------------
<S>                <C>              <C>                <C>                 <C>                <C>
CC Products, Inc.    $10,000,000      $3,509,469.24        3/28/2002            Demand               n/a
------------------ ---------------- ------------------ ------------------- ------------------ -------------------
  Senior Discount   [___________]     $[__________]        ____, 2003          ________            11.375%
  Notes of GFSI
  Holdings, Inc.
------------------ ---------------- ------------------ ------------------- ------------------ -------------------
</TABLE>

                                                          -28-

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