Document:

<PAGE>
                                                                   Exhibit 10.1

                          SEVENTH AMENDMENT AGREEMENT

         This Seventh Amendment Agreement, dated as of September 19, 2002 (this
"Agreement"), is among WESTPOINT STEVENS INC., a Delaware corporation (the
"Borrower"), WESTPOINT STEVENS (UK) LIMITED, WESTPOINT STEVENS (EUROPE)
LIMITED, each of the Banks signatories hereto, each of the Subsidiary
Guarantors signatories hereto, and BANK OF AMERICA, N.A., as Administrative
Agent (the "Agent").

                                   RECITALS:

         A.       Pursuant to that certain Second Amended and Restated Credit
Agreement, dated as of June 9, 1998, among the Borrower, WestPoint Stevens (UK)
Limited and WestPoint Stevens (Europe) Limited (collectively, the "Foreign
Borrowers"), the lending and financial institutions party thereto from time to
time (the "Banks"), and the Agent (the "Original Credit Agreement"), the Banks
agreed to make revolving loan and letter of credit facilities available to the
Borrower and the Foreign Borrowers.

         B.       The Original Credit Agreement has been amended by (i) that
certain Amendment Agreement, dated as of July 31, 1998; (ii) that certain
Second Amendment Agreement, dated as of May 20, 1999; (iii) that certain Third
Amendment Agreement, dated as of May 30, 2000; (iv) that certain Fourth
Amendment Agreement, dated as of December 31, 2000; (v) that certain Fifth
Amendment Agreement, dated as of March 26, 2001; (vi) that certain Amendment
Agreement, dated as of June 29, 2001 (which also amended terms of the Second
Amended and Restated Collateral Trust Agreement); and (vii) by separate letter
agreements dated June, 30, 1998, October 7, 1998, March 16, 1999, August 31,
1999, and November 15, 1999 (as amended, the "Existing Credit Agreement").

         C.       The Borrower and the Foreign Borrowers have requested that the
Required Banks agree to make certain additional amendments to the Existing
Credit Agreement.

         NOW, THEREFORE, based upon the foregoing, and for good and valuable
consideration, the sufficiency and receipt of which is hereby acknowledged, the
parties hereby agree as follows:

                                     PART I
                                  DEFINITIONS

         SUBPART 1.1.      Certain Definitions.  Unless otherwise defined herein
or the context otherwise requires, terms used in this Agreement, including its
preamble and recitals, have the following meanings:

                  "Amended Credit Agreement" means the Existing Credit Agreement
         as amended hereby.

<PAGE>

                  "Effective Date" shall mean the date upon which each of the
         conditions set forth in Part 3 have been satisfied.

         SUBPART 1.2.      Other Definitions.  Unless otherwise defined herein
or the context otherwise requires, terms used in this Agreement, including its
preamble and recitals, have the meanings provided in the Amended Credit
Agreement.

                                    PART II
                    AMENDMENTS TO EXISTING CREDIT AGREEMENT

         Effective on (and subject to the occurrence of) the Effective Date,
the Existing Credit Agreement is hereby amended in accordance with this Part
II. Except as so amended, the Existing Credit Agreement shall continue in full
force and effect.

         SUBPART 2.1.      Addition of New Definitions in Section 1.1. Section
1.1 of the Existing Credit Agreement is amended by adding each of the following
definitions in the appropriate alphabetical order:

                  "2002 Restructuring Charges" means the following
         non-recurring charges, more specifically described in the 2002
         Restructuring Plan, in the aggregate amount not in excess of
         $36,500,000 ($23,360,000 after tax), incurred, accrued or reserved by
         the Borrower or its Consolidated Subsidiaries during fiscal years 2002
         through 2004 in connection with the closing and consolidation of
         certain facilities: (i) direct inventory write-offs and/or related
         increases in inventory reserves; (ii) write-offs of fixed assets and
         non-capitalized relocation charges; (iii) write-offs of intangibles
         related to impaired assets; and (iv) without duplication, relocation,
         severance, unabsorbed overhead, and other related costs. The
         allocation and amounts of the general categories of such charges shall
         be consistent with the allocation and amounts of such categories
         detailed in the 2002 Restructuring Plan as disclosed to the Agent and
         the Banks; provided, however, that the Borrower shall have the
         discretion to re-allocate amounts among sub-categories of the various
         restructuring charges described in the 2002 Restructuring Plan to
         accurately reflect the actual charges incurred by the Consolidated
         Parties.

                  "2002 Restructuring Plan" means that certain restructuring
         plan, dated September 9, 2002, presented by the Borrower to the Agent
         and the Banks, outlining certain changes in the operations of the
         Consolidated Parties.

         SUBPART 2.2.     Amendment of Definition of Applicable Percentage.
Section 1.1 of the Existing Credit Agreement is amended by modifying the
definition of "Applicable Percentage" to read in its entirety as follows:

                  "Applicable Percentage" means, for purposes of calculating
         the applicable interest rate for any day for any Eurocurrency Loan,
         the applicable rate of the Standby Letter of Credit Fee for any day
         for purposes of Section 3.5(c)(i) or the applicable rate of the Trade
         Letter of Credit Fee for any day for purposes of Section 3.5(c)(ii),
         an amount equal to 4.50%.

                                       2
<PAGE>

         SUBPART 2.3.      Amendment of Definition of "Base Rate". Section 1.1
of the Existing Credit Agreement is amended by modifying the definition of
"Base Rate" to read in its entirety as follows:

                  "Base Rate" means, for any day, the rate per annum equal to
         the Prime Rate for such day plus two and three-quarter percent
         (2.75%). Any change in the Base Rate due to a change in the Prime Rate
         shall be effective on the effective date of such change in the Prime
         Rate.

         SUBPART 2.4.      Amendment Of Definition of "Consolidated Net Income".
Section 1.1 of the Existing Credit Agreement is amended by modifying the
definition of "Consolidated Net Income" and "Consolidated Net Loss" to read in
its entirety as follows:

                  "Consolidated Net Income" and "Consolidated Net Loss" mean,
         respectively, for any period, the aggregate net income (or net loss)
         of the Consolidated Parties on a consolidated basis, as determined in
         accordance with GAAP. There shall be excluded in computing
         Consolidated Net Income and Consolidated Net Loss, to the extent
         otherwise included therein, (i) any gain or loss which is treated as
         an extraordinary item under GAAP and any gain or loss from the sale of
         any asset other than a sale in the ordinary course of business, (ii)
         the income or loss of any Person (other than a Consolidated Subsidiary
         of the Borrower) in which any other Person (other than the Borrower or
         any of its Consolidated Subsidiaries) has a joint interest, except to
         the extent of the amount of dividends or other distributions actually
         paid to the Borrower or any of its Consolidated Subsidiaries by such
         Person during such period, (iii) the income or loss of any Person
         accrued prior to the date it becomes a Consolidated Subsidiary of the
         Borrower or is merged into or consolidated with the Borrower or any of
         its Consolidated Subsidiaries or that Person's assets are acquired by
         the Borrower or any of its Consolidated Subsidiaries, (iv) the income
         of any Consolidated Subsidiary of the Borrower to the extent that the
         declaration or payment of dividends or similar distributions by that
         Consolidated Subsidiary of that income is not at the time permitted by
         operation of the terms of its charter or any agreement, instrument,
         judgment, decree, order, statute, rule or governmental regulation
         applicable to that Consolidated Subsidiary (the only such restrictions
         as of the date hereof being those imposed by the corporate law of any
         such Subsidiary's state of incorporation), (v) the amortization of
         Excess Reorganization Value during such period as determined in
         accordance with GAAP, (vi) the 2000 Restructuring Charges, and (vii)
         the 2002 Restructuring Charges (it being understood and agreed that
         any reserves created by the Consolidated Parties in respect of the
         2002 Restructuring Charges which are not ultimately utilized as such
         may not be reallocated to any other category of reserve or other items
         of income and loss, and any portion of such reserves in respect of the
         2002 Restructuring Charges which are reversed shall also be excluded
         from Consolidated Net Income).

         SUBPART 2.5.      Amendment of Section 2.1(a). Section 2.1(a) of the
Existing Credit Agreement is amended by (1) replacing the reference to "October
31, 2002" in Section 2.1(a)(ii)

                                       3
<PAGE>

with the date "September 19, 2002", and (2) replacing the reference to
"November 1, 2002" in Section 2.1(a)(iii) with the date "September 20, 2002".

         SUBPART 2.6.      Amendment of Section 2.4(a). Section 2.4(a) of the
Existing Credit Agreement is amended by deleting the phrase "FIFTY MILLION
DOLLARS ($50,000,000)" and replacing it with the phrase "SEVENTY-FIVE MILLION
DOLLARS ($75,000,000)". Section 2.4(a) of the Existing Credit Agreement is
further amended by adding the following sentence at the end of Section 2.4(a):

                  Any request by the Borrower for the issuance of a new trade
         Letter of Credit which, if granted, would cause the aggregate Dollar
         Amount of the LOC Obligations to exceed $50,000,000, shall be
         accompanied by a certificate of an executive officer of the Borrower
         stating that such new trade Letter of Credit is being requested
         directly in connection with the acquisition by a Consolidated Party of
         inventory or raw materials from suppliers or production sources in the
         ordinary course of its business. The foregoing shall not limit the
         Borrower from requesting the issuance, renewal, or extension of a
         standby Letter of Credit so long as such issuance, renewal or
         extension would not cause the aggregate Dollar Amount of the LOC
         Obligations to exceed the LOC Committed Amount.

         SUBPART 2.7.     Amendment of Section 7.11(c). Section 7.11(c) of the
Existing Credit Agreement is amended to read in its entirety as follows:

                  (c) Interest Coverage Ratio. Have at the end of each fiscal
         quarter ending on or about each date set forth below, an Interest
         Coverage Ratio which is not less than the corresponding ratio
         indicated (it being understood and agreed that, for purposes of
         calculating the Interest Coverage Ratio for the fiscal quarters ending
         December 31, 2002, March 31, 2003, and June 30, 2003, the Consolidated
         EBITDA for the fiscal quarter ending September 30, 2002 shall be
         deemed to be $52,196,000, notwithstanding the fact that the actual
         Consolidated EBITDA for such fiscal quarter could be a different
         amount):

<TABLE>
<CAPTION>
              -----------------------------------------------------------------
                       DATE                                      RATIO
              -----------------------------------------------------------------
              <S>                                             <C>
              September 30, 2002                              1.62 to 1.00
              -----------------------------------------------------------------
              December 31, 2002                               1.59 to 1.00
              -----------------------------------------------------------------
              March 31, 2003                                  1.51 to 1.00
              -----------------------------------------------------------------
              June 30, 2003                                   1.43 to 1.00
              -----------------------------------------------------------------
              September 30, 2003                              1.50 to 1.00
              -----------------------------------------------------------------
              December 31, 2003                               1.55 to 1.00
              -----------------------------------------------------------------
              March 31, 2004 and each quarter                 2.00 to 1.00
              ending thereafter
              -----------------------------------------------------------------

              -----------------------------------------------------------------
</TABLE>

         SUBPART 2.8.     Amendment of Section 7.11(d). Section 7.11(d) of the
Existing Credit Agreement is amended to read in its entirety as follows:

                                       4
<PAGE>

         (d)      Balance Sheet Debt to Consolidated EBITDA Ratio. Have at the
end of each fiscal quarter ending on or about each date set forth below, a
ratio of Balance Sheet Debt on such date to Consolidated EBITDA for the four
(4) fiscal quarters ending on such date of not more than the indicated amounts
(it being understood and agreed that, for purposes of calculating such ratio
for the fiscal quarters ending December 31, 2002, March 31, 2003, and June 30,
2003, the Consolidated EBITDA for the fiscal quarter ending September 30, 2002
shall be deemed to be $52,196,000, notwithstanding the fact that the actual
Consolidated EBITDA for such fiscal quarter could be a different amount):

<TABLE>
<CAPTION>
                 --------------------------------------------------------------
                               DATE                           RATIO
                 --------------------------------------------------------------
                 <S>                                <C>
                 --------------------------------------------------------------

                 --------------------------------------------------------------
                 September 30, 2002                 7.73 to 1.00
                 --------------------------------------------------------------
                 December 31, 2002                  7.47 to 1.00
                 --------------------------------------------------------------
                 March 31, 2003                     7.82 to 1.00
                 --------------------------------------------------------------
                 June 30, 2003                      8.45  to 1.00
                 --------------------------------------------------------------
                 September 30, 2003                 7.69 to 1.00
                 --------------------------------------------------------------
                 December 31, 2003                  7.28 to 1.00
                 --------------------------------------------------------------
                 March 31, 2004 and each quarter    4.25 to 1.00
                 ending thereafter
                 --------------------------------------------------------------

                 --------------------------------------------------------------
</TABLE>

         SUBPART 2.9.      Amendment of Section 7.11(e). Section 7.11(e) of the
Existing Credit Agreement is amended to read in its entirety as follows:

                  (e)      Minimum Consolidated EBITDA. Have at the end of each
         fiscal quarter ending on or about each date set forth below, a
         Consolidated EBITDA for the indicated fiscal period ending on or about
         such date of not less than the indicated amount:

<TABLE>
<CAPTION>
                  -----------------------------------------------------------------------------------------
                  DATE                          FISCAL PERIOD                              AMOUNT
                  -----------------------------------------------------------------------------------------
                  <S>                           <C>                                      <C>

                  -----------------------------------------------------------------------------------------
                  September 30, 2002            One most recent fiscal quarter           $45,000,000
                  -----------------------------------------------------------------------------------------
                  December 31, 2002             One most recent fiscal quarter           $46,414,000
                  -----------------------------------------------------------------------------------------
                  March 31, 2003                Two most recent fiscal quarters          $97,554,000
                  -----------------------------------------------------------------------------------------
                  June 30, 2003                 Three most recent fiscal quarters       $149,381,000
                  -----------------------------------------------------------------------------------------
                  September 30, 2003            Four most recent fiscal quarters        $215,743,000
                  -----------------------------------------------------------------------------------------
                  December 31, 2003            Four most recent fiscal quarters         $221,481,000
                  -----------------------------------------------------------------------------------------

                  -----------------------------------------------------------------------------------------
</TABLE>

                                    PART III
                          CONDITIONS TO EFFECTIVENESS

         SUBPART 3.1.      Effective Date. The amendments made by this Agreement
shall be and become effective when (i) all of the conditions set forth in this
Subpart 3.1 shall have been satisfied, and (ii) the Required Banks, the
Borrower, the Foreign Borrowers, and the Agent shall have duly executed
counterparts of this Agreement and provided original copies thereof to the
Agent.

                                       5
<PAGE>

                  SUBPART 3.1.1. Closing Certificate. The Agent shall have
         received a certificate from the Borrower and the Foreign Borrowers
         certifying that (i) after giving effect to this Agreement, no Default
         or Event of Default exists as of the Effective Date, and (ii) the
         representations and warranties of each Credit Party made in Subpart
         4.4 of this Agreement or in or pursuant to the Credit Documents are
         true in all material respects on and as of the Effective Date.

                  SUBPART 3.1.2. Guarantors Consent. Each of the Guarantors
         shall have executed the consent included in the signature pages of
         this Agreement (the "Consent"), and the Agent shall have received such
         Consent executed by each Guarantor.

                  SUBPART 3.1.3. Corporate Action. The Borrower shall deliver
         to the Agent certified copies of all corporate action taken by each
         Credit Party approving this Agreement, the Consent, and each of the
         documents executed and delivered in connection herewith or therewith
         (including, without limitation, a certificate setting forth the
         resolutions of the Board of Directors of each Credit Party adopted in
         respect of the transactions contemplated by this Agreement).

                  SUBPART 3.1.4. Legal Opinion. The Agent shall have received
the legal opinion of Weil, Gotshal & Manges LLP, counsel to the Borrower,
addressed to the Agent and the Banks, in form and content reasonably
satisfactory to the Agent and its counsel.

                  SUBPART 3.1.5. Amendment Fee. An amendment fee shall be paid
to those Banks executing and delivering this Agreement to the Agent prior to
1:00 p.m. (Eastern time) on September 19, 2002. Such fee shall be in the amount
equal to 25 basis points (0.25%) of each Bank's adjusted Revolving Commitment
Percentage on September 20, 2002 after giving effect to this Agreement.

                                    PART IV
                                 MISCELLANEOUS

         SUBPART 4.1.      Cross-References. References in this Agreement to any
Part or Subpart are, unless otherwise specified, to such Part or Subpart of
this Agreement.

         SUBPART 4.2.      Instrument Pursuant to Existing Credit Agreement.
This Agreement is a document executed pursuant to the Existing Credit Agreement
and shall (unless otherwise expressly indicated therein) be construed,
administered and applied in accordance with the terms and provisions of the
Existing Credit Agreement.

         SUBPART 4.3.      Credit Documents. Each of the Borrower and the
Foreign Borrowers hereby confirms and agrees that the Credit Documents are, and
shall continue to be, in full force and effect, except as amended hereby,
except that, on and after the Effective Date, references in each Credit
Document to (a) the "Credit Agreement", "thereunder", "thereof" or words of
like import referring to the Existing Credit Agreement shall mean the Amended
Credit Agreement.

                                       6
<PAGE>

         SUBPART 4.4.      Representations and Warranties. Each of the Credit
Parties hereby represents and warrants that (i) it has the requisite corporate
power and authority to execute, deliver and perform this Agreement, (ii) it is
duly authorized to, and has been authorized by all necessary corporate action,
to execute, deliver and perform this Agreement, (iii) this Agreement has been
duly executed and delivered by such Credit Party, and constitutes a legal,
valid and binding obligation of such Credit Party, enforceable against such
Credit Party in accordance with its terms, (iv) it has no claims,
counterclaims, offsets, or defenses to the Credit Documents and the performance
of its obligations thereunder, (v) the representations and warranties contained
in Section 6 of the Existing Credit Agreement are, subject to the limitations
set forth therein, true and correct in all material respects on and as of the
date hereof as though made on and as of such date (except for those which
expressly relate to an earlier date or those which relate to specific
schedules, the changes to which do not represent a Material Adverse Effect),
(vi) no event of default under any other agreement, document or instrument to
which it is a party will occur as a result of the transactions contemplated
hereby, and (vii) as of the date of, and giving effect to, this Agreement, no
Event of Default or Defaults exists.

         SUBPART 4.5.      Costs and Expenses. The Borrower hereby agrees to pay
on demand all costs and expenses (including without limitation the reasonable
fees and expenses of counsel to the Agent) incurred by the Agent in connection
with the negotiation, preparation, execution, and delivery of this Agreement
and the enforcement or preservation of any rights and remedies of the Banks and
the Agent hereunder.

         SUBPART 4.6.      Counterparts, Effectiveness, Etc. This Agreement may
be executed by the parties hereto in several counterparts, each of which shall
be deemed to be an original and all of which shall constitute together but one
and the same agreement.

         SUBPART 4.7.      Captions. The captions in this Agreement are inserted
only as a matter of convenience and for reference and in no way define, limit
or describe the scope of this Agreement or any provision hereof.

         SUBPART 4.8.      Governing Law. THIS AGREEMENT SHALL BE DEEMED TO BE A
CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK
WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW PRINCIPLES THEREOF.

         SUBPART 4.9.      Successors and Assigns. This Agreement shall be
binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns.

               [Remainder of this page intentionally left blank.]

                                       7
<PAGE>

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

THE BORROWER:                           WESTPOINT STEVENS INC.,
                                        a Delaware corporation

                                       By:   /s/ Lester D. Sears
                                             -----------------------------------
                                       Name:   Lester D. Sears
                                             -----------------------------------
                                       Title:  Senior Vice President-Finance and
                                             ---------------------------------
                                                   Chief Financial Officer

THE FOREIGN BORROWERS:                 WESTPOINT STEVENS (UK) LIMITED

                                       By:   /s/ Lester D. Sears
                                             -----------------------------------
                                       Name:   Lester D. Sears
                                             ----------------------------------
                                       Title:  Director
                                             -----------------------------------

                                       WESTPOINT STEVENS (EUROPE)
                                       LIMITED

                                       By:  /s/ Lester D. Sears
                                            -----------------------------------
                                       Name:  Lester D. Sears
                                            -----------------------------------
                                       Title: Director
                                             ----------------------------------

THE BANKS:                             BANK OF AMERICA, N.A.,
                                       individually in its capacity as a
                                       Bank and in its capacity as
                                       Agent

                                       By: /s/ DeWitt S. King III
                                          -------------------------------------
                                       Name: DeWitt S. King III
                                            -----------------------------------
                                       Title: Managing Director
                                             ----------------------------------

                                       BANC OF AMERICA SECURITIES, LLC,
                                       as Agent for Bank of America, N.A.

                                       By: /s/ Adam S. Martin
                                          -------------------------------------
                                       Name: Adam S. Martin
                                            -----------------------------------
                                       Title: Principal
                                             ----------------------------------

                             [Signatures Continued]

                                       8
<PAGE>

                                       THE BANK OF NEW YORK

                                       By: /s/ Edward F. Ryan Jr.
                                          --------------------------------------
                                       Name: Edward F. Ryan Jr.
                                            ------------------------------------
                                       Title: Senior Vice President
                                             -----------------------------------

                                       SCOTIABANC INC.

                                       By: /s/ William E. Zarrett
                                          --------------------------------------
                                       Name: William E. Zarrett
                                            ------------------------------------
                                       Title: Managing Director
                                             -----------------------------------

                                       WACHOVIA BANK, NATIONAL
                                       ASSOCIATION

                                       By: /s/ Colleen McCullum
                                          --------------------------------------
                                       Name: Colleen McCullum
                                            ------------------------------------
                                       Title: Director
                                             -----------------------------------

                                       SUNTRUST BANK

                                       By: /s/ J. Christopher Deisley
                                          --------------------------------------
                                       Name: J. Christopher Deisley
                                            ------------------------------------
                                       Title: Managing Director
                                             -----------------------------------

                                       ABN AMRO BANK, N.V.

                                       By: /s/ Steven C. Wimpenny
                                          --------------------------------------
                                       Name: Steven C. Wimpenny
                                            ------------------------------------
                                       Title: Group Senior Vice President
                                             -----------------------------------

                                       By: /s/ Parker H. Douglas
                                          --------------------------------------
                                       Name: Parker H. Douglas
                                            ------------------------------------
                                       Title: Group Vice President
                                             -----------------------------------

                             [Signatures Continued]

                                       9
<PAGE>

                                       AMSOUTH BANK

                                       By:  /s/ William R. Hoog
                                          --------------------------------------
                                       Name:  William R. Hoog
                                            ------------------------------------
                                       Title:  Vice President
                                             -----------------------------------

                                       BARCLAYS BANK PLC

                                       By:  /s/ James Algar
                                          --------------------------------------
                                       Name:  James Algar
                                            ------------------------------------
                                       Title:  Associate Director
                                             -----------------------------------

                                       COOPERATIEVE CENTRALE
                                       RAIFFEISEN-BOERENLEENBANK B.A.,
                                       "Rabobank Nederland", New York Branch

                                       By:  /s/ Edward J. Peyser
                                          --------------------------------------
                                       Name:  Edward J. Peyser
                                            ------------------------------------
                                       Title:  Managing Director
                                             -----------------------------------

                                       By:
                                          --------------------------------------
                                       Name:
                                            ------------------------------------
                                       Title:
                                             -----------------------------------

                                       AG CAPITAL FUNDING PARTNERS LP

                                       By:
                                          --------------------------------------
                                       Name:
                                            ------------------------------------
                                       Title:
                                             -----------------------------------

                                       BEAR STEARNS & CO. INC.

                                       By:
                                          --------------------------------------
                                       Name:
                                            ------------------------------------
                                       Title:
                                             -----------------------------------

                             [Signatures Continued]

                                      10
<PAGE>

                                       CANPARTNERS INVESTMENTS IV LLC

                                       By: /s/ Mitchell R. Julie
                                          --------------------------------------
                                       Name: Mitchell R. Julie
                                            ------------------------------------
                                       Title: Authorized Member
                                             -----------------------------------

                                       DK ACQUISITION PARTNERS

                                       By: /s/ Michael J. Leffell
                                          --------------------------------------
                                       Name: Michael J. Leffell
                                            ------------------------------------
                                       Title: General Partner
                                             -----------------------------------

                                       GENERAL ELECTRIC CAPITAL CORP.

                                       By: /s/ Karen Wold
                                          --------------------------------------
                                       Name: Karen Wold
                                            ------------------------------------
                                       Title:
                                             -----------------------------------

                                       HCM/Z SPECIAL OPPORTUNITIES LLC

                                       By: /s/ Daniel B. Zwirn
                                          --------------------------------------
                                       Name: Daniel B. Zwirn
                                            ------------------------------------
                                       Title: Portfolio Manager
                                             -----------------------------------

                                       LONGACRE MASTER FUND LTD.

                                       By:
                                          --------------------------------------
                                       Name:
                                            ------------------------------------
                                       Title:
                                             -----------------------------------

                                       OAK HILL SECURITIES FUND II LP

                                       By: /s/ Scott D. Krase
                                          --------------------------------------
                                       Name: Scott D. Krase
                                            ------------------------------------
                                       Title: Vice President
                                             -----------------------------------

                             [Signatures Continued]

                                      11
<PAGE>

                                       OAK HILL SECURITIES FUND LP

                                       By:  /s/ Scott D. Krase
                                          --------------------------------------
                                       Name:  Scott Krase
                                            ------------------------------------
                                       Title:  Vice President
                                             -----------------------------------

                                       SATELLITE SENIOR INCOME FUND II LLC

                                       By:  /s/Gabe Nechamkin
                                            -----------------------------------
                                       Name:  Gabe Nechamkin
                                             ----------------------------------
                                       Title:     Principal
                                             ----------------------------------

                                       SATELLITE SENIOR INCOME FUND LLC

                                       By:  /s/Gabe Nechamkin
                                           ------------------------------------
                                       Name:  Gabe Nechamkin
                                              ---------------------------------
                                       Title:     Principal
                                              ---------------------------------

                                       SILVER OAK CAPITAL LLC

                                       By:
                                          --------------------------------------
                                       Name:
                                            ------------------------------------
                                       Title:
                                             -----------------------------------

                                      12
<PAGE>

                              CONSENT TO AGREEMENT

         Each of the undersigned Subsidiary Guarantors, as a party to one or
more of the Credit Documents, hereby acknowledges the execution and delivery of
the Seventh Amendment Agreement, dated as of September 19, 2002, hereby joins
as a party thereto and confirms and agrees that each Credit Document to which
it is a party is, and shall continue to be, in full force and effect, and
hereby ratifies and confirms in all respects its obligations thereunder. This
Consent may be executed by the parties hereto in counterparts, each of which
shall be deemed to be an original and all of which shall constitute together
but one and the same instrument.

                                    WESTPOINT STEVENS INC. I
                                    f/k/a West Point-Pepperell Enterprises, Inc.

                                    By:  /s/ Richard F. Klumpp
                                        ---------------------------------------
                                    Name:        Richard F. Klumpp
                                          -------------------------------------
                                    Title: Vice President & Assistant Treasurer
                                          -------------------------------------

                                    J. P. STEVENS & CO., INC.

                                    By:  /s/ Thomas M. Lane
                                        ---------------------------------------
                                    Name:      Thomas M. Lane
                                          -------------------------------------
                                    Title: Vice President & Treasurer
                                          -------------------------------------

                                           J. P. STEVENS ENTERPRISES, INC.

                                    By:  /s/ Richard F. Klumpp
                                        ---------------------------------------
                                    Name:        Richard F. Klumpp
                                          -------------------------------------
                                    Title: Vice President & Assistant Treasurer
                                          -------------------------------------

                                           WESTPOINT STEVENS STORES INC.

                                    By:  /s/ Thomas M. Lane
                                        ---------------------------------------
                                    Name:      Thomas M. Lane
                                         --------------------------------------
                                    Title: Vice President & Treasurer
                                          -------------------------------------

                                    LIEBHARDT INC.

                                    By:  /s/ Thomas M. Lane
                                        ---------------------------------------
                                    Name:      Thomas M. Lane
                                         --------------------------------------
                                    Title: Vice President & Treasurer
                                          -------------------------------------

                                      13<PAGE>

                                  EXHIBIT 10.1
                                  ------------

                             STOCK OPTION AGREEMENT
                          (NON-QUALIFIED STOCK OPTION)

                  THIS AGREEMENT is made to be effective as of August 7, 2000,
by and between R.G. Barry Corporation, an Ohio corporation (the "Company") and
Richard L. Burrell (the "Optionee").

                                   WITNESSETH:
                                   -----------

                  WHEREAS, the Compensation Committee (the "Compensation
Committee") of the Board of Directors (the "Board") of the Company has
determined that an option to acquire shares of common stock, $1.00 par value per
share, of the Company should be granted to the Optionee upon the terms and
conditions set forth in this Agreement.

                  NOW, THEREFORE, in consideration of the premises, the parties
hereto make the following agreement, intending to be legally bound thereby:

                  1.   DEFINED TERMS. When used in this Agreement, the following
capitalized terms have the respective meanings set forth in this Section:

                  (a)  ACT: The Securities Exchange Act of 1934, as amended, or
                       any successor thereto.

                  (b)  ADMINISTRATOR: The Board or the Compensation Committee if
                       the Board has delegated to the Compensation Committee
                       such responsibility.

                  (c)  APPLICABLE LAWS: the requirements relating to the
                       administration of stock option plans under U.S. state
                       corporate laws, U.S. federal and state securities laws,
                       the Code, any stock exchange or quotation system on which
                       the common shares of the Company are listed or quoted and
                       the applicable laws of any foreign country or
                       jurisdiction where Options are granted under the Plan.

                  (d)  CHANGE IN CONTROL: (i) the sale or disposition, in
                       one or a series of related transactions, of all or
                       substantially all of the assets of the Company to any
                       "person" or "group" (as such terms are defined in
                       Sections 13(d)(3) and 14(d)(2) of the Act) or (ii) any
                       person or group is or becomes the "beneficial owner" (as
                       such term is defined in

                                      -1-
<PAGE>

                       Rule 13d-3 under the Act), directly or indirectly, of
                       more than 50% of the total voting power of the voting
                       stock of the Company, including by way of merger,
                       consolidation or otherwise.

                  (e)  CODE: The Internal Revenue Code of 1986, as amended, or
                       any successor thereto.

                  (f)  FAIR MARKET VALUE: On a given date, the closing sale
                       price for the Company's common shares as reported on any
                       securities exchange on which the Company's common shares
                       may be listed on such date or, if no such sale occurred
                       on that date, then for the next preceding date on which a
                       sale was made. If the Company's common shares should be
                       no longer listed on a securities exchange, the fair
                       market value shall be determined by the Administrator.

                  2.   GRANT OF OPTION. Subject to adjustment pursuant to
Section 4 of this Agreement, the Company hereby grants to the Optionee an option
(the "Option") to purchase 20,000 common shares, par value $1.00 per share, of
the Company (the "Shares"). The Option is not intended to qualify as an
incentive stock option under Section 422 of the Code.

                  3.   TERMS AND CONDITIONS OF THE OPTION.

                       (a) OPTION PRICE. The purchase price (the "Option Price")
to be paid by the Optionee to the Company upon the exercise of the Option shall
be $3.19 per Share, subject to adjustment as provided in Section 4 of this
Agreement.

                       (b) EXERCISE OF THE OPTION. Except as otherwise provided
in this Agreement, the Option may be exercised by the Optionee as follows:

                           (i) The Option shall vest and become exercisable on
the earlier of (A) the date on which the Company terminates the Optionee's
employment or (B) six (6) months from the option grant date. The portion of the
Option which has become vested and exercisable pursuant to this Section 3 is
hereinafter referred to as the "Vested Portion."

                           (ii) In the event of a Change of Control, any portion
of the Option that is not then exercisable shall vest and become exercisable
prior to such Change in Control.

                  The grant of the Option shall not confer upon the Optionee any
right to continue in the employment of the Company

                                      -2-
<PAGE>

nor limit in any way the right of the Company to terminate the employment of the
Optionee at any time.

                       (c) METHOD OF EXERCISE OF OPTION. At any time prior to
the Expiration Date (as defined in Section 6), the Optionee may exercise all or
a portion of the Option by delivering written notice of exercise to the Company,
together with payment in full for the Shares in an amount equal to the product
of the Option Price multiplied by the number of Shares to be acquired. Such
payment may be made in cash or its equivalent (e.g., by check) or in previously
issued and currently held shares of the Company, which shares shall be valued at
Fair Market Value on the date of exercise.

                       (d) TAX WITHHOLDING. The Company shall be entitled to
withhold (or secure payment from the Optionee in lieu of withholding) the amount
of any withholding or other payment required of the Company under the tax
withholding provisions of the Code, any state's income tax act or any other
applicable law with respect to any Shares issuable under the exercised Option,
and the Company may defer issuance unless indemnified to its satisfaction with
respect to payment of such withholding or other tax.

                  4.   ADJUSTMENTS AND CHANGES IN THE SHARES.

                  The following provisions shall apply to the Option:

                       (a) GENERALLY. In the event of any change in the
outstanding shares of common stock of the Company by reason of any share
dividend or split, reorganization, recapitalization, merger, consolidation,
spin-off, combination or exchange of shares or other corporate exchange, or any
distribution to holders of shares of the Company other than regular cash
dividends or any transaction similar to the foregoing, the Administrator in its
sole discretion and without liability to any person may make such substitution
or adjustment, if any, as it deems to be equitable, as to (i) the number or kind
of shares or other securities issuable pursuant to this Option and (ii) the
Option Price and/or any other affected terms of this Option.

                       (b) CHANGE IN CONTROL. In the event of a Change in
Control, the Administrator may, but shall not be obligated to, make provision
for a cash payment to the Optionee in consideration for the cancellation of the
Option which shall equal the excess, if any, of the Fair Market Value of the
Shares subject to the Option over the Option Price of the Option.

                       (c) NO RESTRICTIONS ON COMPANY. The grant of the Option
shall not affect in any way the right of the Company to

                                      -3-
<PAGE>

adjust, reclassify, reorganize, or otherwise change its capital or business
structure or to merge, consolidate, dissolve, liquidate or sell or transfer all
or any part of its business or assets.

                  5.   NON-ASSIGNABILITY OF OPTION. Unless otherwise permitted
by the Administrator, the Option shall not be assignable or otherwise
transferable by the Optionee except by will or by the laws of descent and
distribution. The Option may not be exercised during the lifetime of the
Optionee except by him, his guardian or legal representative.

                  6.   EXERCISE AFTER TERMINATION OF EMPLOYMENT. Subject to the
provisions of this Agreement, the Optionee may exercise all or any part of the
Vested Portion of this Option at any time prior to the earliest to occur of:

                       (a) the tenth anniversary of the date of this Agreement;

                       (b) one (1) year following the date of Optionee's death;
         or

                       (c) two (2) years following the date of termination of
         Optionee's employment with the Company.

                  Upon the earliest to occur of any of the events described in
clauses (a), (b) or (c) above (the "Expiration Date"), the Option shall
terminate, and Optionee shall have no further rights under this Agreement.

                  7.   RESTRICTIONS ON TRANSFERS OF COMMON SHARES. Anything
contained in this Agreement or elsewhere to the contrary notwithstanding, the
Company may postpone the issuance and delivery of Shares upon any exercise of
the Option until completion of any stock exchange listing or registration or
other qualification of such Shares under any state or federal law, rule or
regulation as the Company may consider appropriate; and may require the Optionee
when exercising the Option to make such representations and furnish such
information as the Company may consider appropriate in connection with the
issuance of the Shares in compliance with applicable law.

                  Shares issued and delivered upon exercise of the Option shall
be subject to such restrictions on trading, including appropriate legending of
certificates to that effect, as the Company, in its discretion, shall determine
are necessary to satisfy applicable legal requirements and obligations.

                                      -4-
<PAGE>

                  8.   CONDITIONS UPON ISSUANCE OF SHARES.

                       (a) LEGAL COMPLIANCE. Shares shall not be issued pursuant
to the exercise of the Option unless the exercise of such Option and the
issuance and delivery of such Shares shall comply with Applicable Laws and shall
be further subject to the approval of counsel for the Company with respect to
such compliance.

                       (b) INVESTMENT REPRESENTATIONS. As a condition to the
exercise of the Option, the Administrator may require the person exercising the
Option to represent and warrant at the time of any such exercise that the Shares
are being purchased only for investment and without any present intention to
sell or distribute such Shares if, in the opinion of counsel for the Company,
such a representation is required.

                  9.   BUY OUT OF OPTION GAINS. At any time after the Option
becomes exercisable, the Administrator shall have the right to elect, in its
sole discretion and without the consent of the Optionee, to cancel the Option
and pay to the Optionee the excess of the Fair Market Value of the Shares over
the Option Price at the date the Administrator provides written notice (the "Buy
Out Notice") of the intention to exercise the right. A buy out pursuant to this
Section shall be effected by the Company as promptly as possible after the date
of the Buy Out Notice. Payment of the buy out amount may be made in cash, in
common shares of the Company, or partly in cash and partly in common shares as
the Administrator deems advisable. To the extent payment is made in common
shares, the number of shares shall be determined by dividing the amount of the
payment to be made by the Fair Market Value of a common share at the date of the
Buy Out Notice. Payment of such buy out amount shall be made net of any
applicable foreign, federal (including Federal Insurance Contributions Act),
state and local withholding taxes.

                  10.  RIGHTS OF OPTIONEE. The Optionee shall have no rights as
a stockholder of the Company with respect to any Shares of the Company covered
by the Option until (a) the Optionee has given written notice of exercise of the
Option, (b) the Optionee has paid in full for such Shares and, if applicable,
satisfied any other conditions imposed by the Administrator and (c) the date of
issuance of a certificate to him evidencing such Shares.

                  11.  GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the laws of the State of Ohio without regard to
conflict of law provisions.

                  12.  RIGHTS AND REMEDIES CUMULATIVE. All rights and remedies
of the Company and of the Optionee enumerated in this

                                      -5-
<PAGE>

Agreement shall be cumulative and, except as expressly provided otherwise in
this Agreement, none shall exclude any other rights or remedies allowed by law
or in equity, and each of said rights or remedies may be exercised and enforced
concurrently.

                  13.  CAPTIONS. The captions contained in this Agreement are
included only for convenience of reference and do not define, limit, explain or
modify this Agreement or its interpretation, construction or meaning and are in
no way to be construed as a part of this Agreement.

                  14.  SEVERABILITY. If any provision of this Agreement or the
application of any provision hereof to any person or any circumstance shall be
determined to be invalid or unenforceable, then such determination shall not
affect any other provision of this Agreement or the application of said
provision to any other person or circumstance, all of which other provisions
shall remain in full force and effect, and it is the intention of each party to
this Agreement that if any provision of this Agreement is susceptible of two or
more constructions, one of which would render the provision enforceable and the
other or others of which would render the provision unenforceable, then the
provision shall have the meaning which renders it enforceable.

                  15.  ENTIRE AGREEMENT. This Agreement constitutes the entire
agreement between the Company and the Optionee in respect of the subject matter
of this Agreement, and this Agreement supersedes all prior agreements between
the parties hereto in connection with the subject matter of this Agreement. No
officer, employee or other servant or agent of the Company, and no servant or
agent of the Optionee is authorized to make any representation, warranty or
other promise not contained in this Agreement. No change, termination or
attempted waiver of any of the provisions of this Agreement shall be binding
upon any party hereto unless contained in a writing signed by the party to be
charged.

                  16.  SUCCESSORS AND ASSIGNS. This Agreement shall inure to the
benefit of and be binding upon the successors and assigns (including successive,
as well as immediate, successors and assigns) of the Company.

                                      -6-
<PAGE>

                  Optionee has reviewed this Agreement in its entirety, has had
an opportunity to obtain the advice of counsel prior to executing this Agreement
and fully understands all provisions of this Agreement. Optionee hereby agrees
to accept as binding, conclusive and final all decisions or interpretations of
the Administrator upon any questions arising under this Agreement.

                  IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed on the date first above written.

                                             COMPANY:
                                             --------

                                             R.G. BARRY CORPORATION

                                             By: /s/Gordon Zacks
                                                 ------------------------
                                                 Gordon Zacks
                                                 Chairman and Chief Executive
                                                 Officer

                                             OPTIONEE:
                                             --------

                                             /s/ Richard L. Burrell
                                             ----------------------------
                                             Richard L. Burrell

                                             XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
                                             --------------------------------
                                             Street Address

                                             XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
                                             ---------------------------------
                                             City, State, Zip Code

                                             XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
                                             ---------------------------------
                                             Social Security Number

                                      -7-

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