Document:

SIXTH AMENDMENT TO CREDIT AGREEMENT AND WAIVER

THIS SIXTH AMENDMENT TO CREDIT AGREEMENT AND WAIVER (this "Amendment"), dated as
of June__,2000, is by and among Cluett American Corp. (the "Borrower"), Cluett
American   Investment  Corp.  (the  "Parent"),   Cluett  American  Group,   Inc.
("Interco")  and  the  certain  subsidiaries  of the  Parent  identified  on the
signature pages hereto (together with the Parent and Interco, the "Guarantors"),
the lenders  identified on the signature pages hereto (the  "Lenders"),  Bank of
America,  N.A.  (formerly known as NationsBank,  N.A.), as agent for the Lenders
(in such capacity,  the "Agent"),  and Gleacher  NatWest Inc., as  documentation
agent (the "Documentation Agent").

W I T N E S S E T H

WHEREAS,  the  Borrower,  the  Guarantors,   the  Lenders,  the  Agent  and  the
Documentation  Agent have entered into that certain Credit Agreement dated as of
May 18, 1998, as amended as of May 27, 1998, December 18, 1998,  March 19, 1999,
September 30, 1999, March 29, 2000 and May 2, 2000 (as so previously amended the
"Existing Credit Agreement"); and

WHEREAS,  the parties to the Existing Credit  Agreement have agreed to amend the
Existing  Credit  Agreement  and waive  certain  provisions  thereof as provided
herein.

NOW,  THEREFORE,  in consideration of the agreements  hereinafter set forth, and
for other good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the parties hereto agree as follows:

PART 1
DEFINITIONS

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

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

"Amendment No. 6 Effective Date" is defined in Subpart 3.1.

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

PART 2

AMENDMENTS TO EXISTING CREDIT AGREEMENT

Effective on (and subject to the  occurrence of) the Amendment  No.6  Effective
Date, the Existing  Credit  Agreement is hereby amended in accordance  with this
Part 2. Except as so amended, the Existing Credit Agreement and all other Credit
Documents shall continue in full force and effect.

SUBPART 2.1 Amendments to Section 1.1.

(a) The following  definitions  appearing in Section 1.1 of the Existing  Credit
Agreement are amended and restated in their entireties to read as follows:

"Investment  and  Deposit  Agreement"  means the  Second  Amended  and  Restated
     Investment and Deposit  Agreement,  dated as of June__,  2000,  between the
     Sponsor and the Agent, as amended, modified,  restated or supplemented from
     time to time.

"Leverage  Reduction  Period"  means the period from and including the Amendment
     No. 5  Effective  Date  through  and  including  June 30, 2000;   provided,
     however, that the Leverage Reduction Period automatically shall be extended
     on June 30, 2000 to  August 31, 2000  if (A the Shirt Group  Restructuring
     shall not have been consummated by June 30, 2000, but there shall exist one
     or more  legally  binding and  enforceable  definitive  purchase  (or other
     appropriate)  agreements (as determined by the Agent in its sole reasonable
     discretion,  supported  by such  opinions  of  counsel  for the  applicable
     Consolidated Party(ies) and/or the relevant purchaser(s) as the Agent shall
     reasonably  request)  providing  for the  consummation  of the Shirt  Group
     Restructuring  by  August 31, 2000  and  (B either  (1) cash  and/or  Cash
     Equivalents  in an  aggregate  amount  at  least  equal  to the  Investment
     Commitment as of  June 30, 2000  shall be on deposit in the Cash Collateral
     Account  or (2) the  Sponsor  Letter of Credit  shall have been  issued and
     delivered to the Agent.

"Leverage Reduction  Requirements"  shall be deemed to have been satisfied as of
     the last day of the  Leverage  Reduction  Period if, as of the most  recent
     fiscal month end preceding the date of determination  with respect to which
     the Agent has received the Required  Financial  Information,  (i) the Fixed
     Charge Coverage Ratio is at least 1.0 to 1.0,  (ii) the  Interest  Coverage
     Ratio is at least 1.5 to 1.0, (iii) the Senior Leverage Ratio is no greater
     than 3.25 to 1.0 and (iv) the  Total  Leverage Ratio is no greater than 5.5
     to 1.0. For purposes of any  determination  under this definition,  (1) all
     calculations  shall be made on a pro forma basis using the  principles  set
     forth in  clauses (2),  (3) and (4) below and  Section 1.3,  (2) any  Asset
     Disposition  consummated  after the Amendment  No. 5 Effective Date and any
     prepayment made pursuant to  Section 3.3(b)(v)(B)  of the Credit  Agreement
     after the Amendment  No. 5  Effective Date shall be deemed to have occurred
     as of the most recent fiscal month end preceding the date of  determination
     with  respect  to which the  Agent  has  received  the  Required  Financial
     Information,  (3) liabilities  for restructuring costs (such as liabilities
     for severance  payments and lease  termination  payments and, to the extent
     that the aggregate amount thereof exceeds the amount of accounts receivable
     associated with the related Equity Interests or Property,  accounts payable
     and accrued  expenses  associated  with such Equity  Interests or Property)
     resulting from all Asset  Dispositions  relating to any Equity Interests or
     Property  comprising the Shirt Group  consummated on or before the last day
     of the Leverage Reduction Period shall be deemed to constitute Indebtedness
     of the Consolidated Parties and (4) Funded Indebtedness of the Consolidated
     Parties  on such date shall be deemed to be  increased  by the amount as of
     such date, as reasonably  calculated by the Borrower,  of the non-recurring
     benefit  to  leverage   associated  with  a  sale  of  receivables  to  the
     Receivables  Financing  Subsidiary and the corresponding  prepayment of the
     Credit Party  Obligations,  provided  that, in no event shall such increase
     exceed  the Net Cash  Proceeds  from such sale of  receivables.  Solely for
     purposes  of  this  definition,  Funded  Indebtedness  of the  Consolidated
     Parties  shall  be  calculated   without   netting  for  (a) cash  or  Cash
     Equivalents  on deposit in the Cash  Collateral  Account or (b) the  amount
     available to be drawn under the Sponsor Letter of Credit.

"Senior Leverage  Ratio" means,  as of the last day of any fiscal quarter of the
     Consolidated  Parties for the twelve month period ending on such date,  the
     ratio of (a) all  Funded  Indebtedness  (net of cash and Cash  Equivalents,
     including  cash and Cash  Equivalents  on  deposit  in the Cash  Collateral
     Account,  and net of the amount  available  to be drawn  under the  Sponsor
     Letter of Credit) of the  Consolidated  Parties on a consolidated  basis on
     the  last  day of  such  period,  excluding (i) Subordinated  Indebtedness,
     (ii) the  Tranche C Obligations and (iii) any  Credit Party  Obligations in
     which a participation  interest has been purchased by, or on behalf of, the
     Sponsor pursuant to  Section 2.1(c) or Section 2.2(c) of the Investment and
     Deposit Agreement, to (b) Consolidated EBITDA for such period.

"Total Leverage  Ratio" means,  as of the last day of any fiscal  quarter of the
     Consolidated  Parties for the twelve month period ending on such date,  the
     ratio of (a) all  Funded  Indebtedness  (net of cash and Cash  Equivalents,
     including  cash and Cash  Equivalents  on  deposit  in the Cash  Collateral
     Account,  and net of the amount  available  to be drawn  under the  Sponsor
     Letter of Credit) of the  Consolidated  Parties on a consolidated  basis on
     the last  day of such  period,  including  Subordinated  Indebtedness,  but
     excluding  (i) the  Tranche C Loans  Obligations  and (ii) any Credit Party
     Obligations in which a participation  interest has been purchased by, or on
     behalf of, the Sponsor pursuant to  Section 2.1(c) or Section 2.2(c) of the
     Investment  and  Deposit  Agreement,  to  (b) Consolidated  EBITDA for such
     period.

(b) The following new  definition is hereby added to Section 1.1 of the Existing
Credit  Agreement  in the  appropriate  alphabetical  order  and  shall  read as
follows:

"Sponsor Letter of Credit" means an irrevocable  standby letter of credit issued
     by Bank of  America,  N.A.  for the  account of the Sponsor in favor of the
     Agent,  for the benefit of the Lenders  other than the Tranche C Lender (in
     its  capacity as such),  in the form of Exhibit  1.1C having a maximum face
     amount equal to the  Investment  Commitment as of  June 30, 2000  (less the
     aggregate  amount  of cash  and Cash  Equivalents  on  deposit  in the Cash
     Collateral Account on such date).

SUBPART 2.2  Amendments  to Section  8.5.  Section 8.5  of the  Existing  Credit
Agreement is amended and restated in its entirety to read as follows:

8.5 Asset Dispositions.

The Credit Parties will not permit the Parent or any Consolidated  Party to make
any Asset Disposition  (including,  without  limitation,  any Sale and Leaseback
Transaction)  other than Excluded  Asset  Dispositions  and a Permitted  Austell
Property Sale,  unless (a) except in connection with the licensing of any of the
intellectual property of the Shirt Group on terms providing for the reversion to
the applicable  Consolidated Parties of all rights to such intellectual property
at the end of the license term and upon default in the payment of licensing fees
by the  applicable  licensee  thereof,  the  consideration  paid  in  connection
therewith is at least 75% cash or Cash Equivalents, (b) if such transaction is a
Sale and Leaseback  Transaction,  such  transaction is permitted by the terms of
Section 8.13  and  (c) the  Credit  Parties  shall,  immediately  following  the
consummation of such Asset  Disposition apply (or cause to be applied) an amount
equal to the Net Cash  Proceeds of such Asset  Disposition  to prepay the Credit
Party   Obligations  in  accordance  with  the  terms  of   Section 3.3(b)(iii).
Notwithstanding  any provision of this Credit Agreement to the contrary,  (i) no
Asset  Disposition  involving  any portion of the Sock Group shall be  permitted
unless  simultaneously  all of the Credit Party  Obligations are repaid and this
Credit Agreement is terminated in accordance with the terms of  Section 11.13(b)
except  pursuant to a  transaction  permitted  under  clause  (ii)(A)  below and
(ii) none of the  Consolidated  Parties may sell,  lease,  transfer or otherwise
dispose of  accounts  receivable  except  pursuant  to (A) up to three (3) Asset
Dispositions  of receivables  having an aggregate fair market value (for both of
such transactions taken together) of not greater than $24,000,000 by one or more
Consolidated  Parties to the Receivables  Financing Subsidiary and each of which
(1) is  non-recourse to the  Consolidated  Parties (except for  representations,
warranties,  covenants  and  indemnities  which are  reasonably  customary in an
accounts receivable transaction),  (2) complies with the foregoing terms of this
Section 8.5, (3) does not constitute an "Asset Sale" under and as defined in the
documents  evidencing  or  governing  the  Senior  Subordinated  Debt and (4) is
consummated by August 31,  2000 and (B) a  transaction  constituting an Excluded
Asset Disposition.

Upon a sale of  Property  (including,  without  limitation,  the sale of  Equity
Interests of a  Consolidated  Party)  permitted by this  Section 8.5,  the Agent
shall (to the extent  applicable  and provided that such Person is also released
from  any  and  all of  its  obligations,  if  any,  in  respect  of  all  other
Indebtedness  of the Credit  Parties)  deliver to the Credit  Parties,  upon the
Credit Parties' request and at the Credit Parties' expense,  such  documentation
as is  reasonably  necessary  to evidence  the  release of the Agent's  security
interest,  if any, in such  Property  or Equity  Interests,  including,  without
limitation,  amendments or terminations of UCC financing statements, if any, the
return of stock certificates, if any, and the release of such Consolidated Party
from all of its obligations, if any, under the Credit Documents.

SUBPART 2.3  Amendments to  Section 9.1.  Subsection (m)  of  Section 9.1 of the
Existing  Credit  Agreement  is amended and  restated in its entirety to read as
follows:

(m)  Investment and Deposit  Agreement.  There shall occur and be continuing any
"Event of  Default"  under,  and as  defined  in,  Section 6.1(a)  or (h) of the
Investment and Deposit Agreement; or

SUBPART 2.4 New Exhibit  1.1C.  A new Exhibit  1.1C in the form of Exhibit  1.1C
attached hereto is added to the Existing Credit Agreement immediately succeeding
existing Exhibit 1.1B thereof.

PART 3
EFFECTIVENESS

SUBPART 3.1 Amendment  No. 6  Effective Date. This Amendment shall be and become
effective as of the date hereof (the "Amendment No. 6 Effective  Date") when all
of the  conditions  set forth in this  Part 3 shall  have  been  satisfied,  and
thereafter this Amendment shall be known,  and may be referred to, as "Amendment
No. 6."

SUBPART  3.1.1  Execution of  Counterparts  of  Amendment.  The Agent shall have
received  counterparts of this Amendment which collectively shall have been duly
executed on behalf of each of the  Borrower,  the  Guarantors  and the  Required
Lenders.

SUBPART 3.1.2 Investment and Deposit Agreement. The Agent shall have received an
original copy of the  Investment and Deposit which shall have been duly executed
on behalf of the Sponsor.

PART 4
MISCELLANEOUS

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

SUBPART 4.2 Instrument Pursuant to Existing Credit Agreement.  This Amendment is
a Credit 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 References in Other Credit Documents. At such time as this Amendment
No.  6 shall  become  effective  pursuant  to the  terms  of  Subpart  3.1,  all
references in the Credit Documents to the "Credit  Agreement" shall be deemed to
refer to the Credit Agreement as amended by this Amendment No. 6.

SUBPART 4.4 Counterparts/Telecopy. This Amendment 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.
Delivery  of  executed  counterparts  of this  Amendment  by  telecopy  shall be
effective as an original and shall constitute a representation  that an original
shall be delivered.

SUBPART 4.5 Governing Law. THIS AMENDMENT  SHALL BE DEEMED TO BE A CONTRACT MADE
UNDER AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

SUBPART 4.6  Successors and Assigns.  This  Amendment  shall be binding upon and
inure to the benefit of the parties hereto and their  respective  successors and
assigns.

IN WITNESS  WHEREOF the Borrower,  the Guarantors and the Required  Lenders have
caused this Amendment to be duly executed on the date first above written.

CREDIT PARTIES:                             CLUETT AMERICAN Corp.
                                            Cluett American Investment Corp.
                                            Cluett American Group, Inc.
                                            CONSUMER DIRECT CORPORATION
                                            ARROW FACTORY STORES, INC.
                                            GAKM RESOURCES CORPORATION
                                            CLUETT PEABODY RESOURCES CORPORATION
                                            CLUETT PEABODY HOLDING CORP.
                                            CLUETT, PEABODY & CO., INC.
                                            BIDERTEX SERVICES INC.
                                            GREAT AMERICAN KNITTING MILLS, INC.
                                            CLUETT DESIGNER GROUP, INC.
                                            BIDERMANN TAILORED CLOTHING, INC.

                                            By:
                                            Name:
                                            Title:

AGENT:                                      BANK OF AMERICA, N.A.
                                            (formerly known as NationsBank,
                                             N. A.), as Agent

                                            By:
                                            Name:
                                            Title:

LENDERS:                                    BANK OF AMERICA, N.A.
                                            (formerly known as NationsBank,
                                             N. A.)

                                            By:
                                            Name:
                                            Title:

                                            NATIONAL WESTMINSTER BANK PLC

                                            By:
                                            Name:
                                            Title:

                                            FLEET BANK, N.A.

                                            By:
                                            Name:
                                            Title:

                                            BANKBOSTON, N.A.

                                            By:
                                            Name:
                                            Title:

                                            FLEET BUSINESS CREDIT CORPORATION
                                            (successor in interest to Sanwa
                                             Business Credit Corporation)

                                            By:
                                            Name:
                                            Title:

                                            BANK AUSTRIA CREDITANSTALT
                                            CORPORATE FINANCE, INC.

                                            By:
                                            Name:
                                            Title:

                                            By:
                                            Name:
                                            Title:

                                            FIRST SOURCE FINANCIAL LLP,
                                            By:  First Source Financial Inc.,
                                            its manager

                                            By:
                                            Name:
                                            Title:

<PAGE>

(Signatures Continued)

                                            GENERAL ELECTRIC CAPITAL
                                            CORPORATION

                                            By:
                                            Name:
                                            Title:

                                            SUMMIT BANK

                                            By:
                                            Name:
                                            Title:

                                            HSBC BANK USA

                                            By:
                                            Name:
                                            Title:

                                            AG CAPITAL FUNDING PARTNERS, L.P.
                                            By:  Angelo Gordon & Co., L.P. as
                                            Investment Advisor

                                            By:
                                            Name:
                                            Title:

                                            NORTHWOODS CAPITAL LIMITED
                                            By:  Angelo Gordon & Co., L.P. as
                                            Collateral Manager

                                            By:
                                            Name:
                                            Title:

                                            NEW YORK LIFE INSURANCE COMPANY

                                            By:
                                            Name:
                                            Title:

                                            SENIOR DEBT PORTFOLIO
                                            By:  Boston Management and Research,
                                                    as Investment Advisor

                                            By:
                                            Name:
                                            Title:

                                            ML CLO XX PILGRIM AMERICA (CAYMAN)
                                            LTD.

                                            By:
                                            Name:
                                            Title:

                                            TORONTO DOMINION (TEXAS), INC.

                                            By:
                                            Name:
                                            Title:

                                            GREAT POINT CLO 1999-1 LTD.

                                            By:      Sankaty Advisors, Inc., as
                                                     Collateral Managers

                                            By:
                                            Name:
                                            Title:

                                            EATON VANCE SENIOR INCOME TRUST

                                            By:
                                            Name:
                                            Title:

Exhibit 1.1C

Form of Sponsor Letter of Credit<PAGE>

                                                                EXHIBIT 10(f)(1)
                                 PROMISSORY NOTE

[Logo of First Union]

$5,000,000.00
                                                                   June 16, 2000

Inter Act Electronic Marketing, Inc.
5032 Parkway Plaza Blvd.
Charlotte, North Carolina  28217
 (Individually and collectively "Borrower")

First Union National Bank
301 South Tryon Street
Charlotte, North Carolina  28202
 (Hereinafter referred to as "Bank")

Borrower promises to pay to the order of Bank, in lawful money of the United
States of America, at its office indicated above or wherever else Bank may
specify, the sum of Five Million and No/100 Dollars ($5,000,000.00) or such sum
as may be advanced and outstanding from time to time, with interest on the
unpaid principal balance at the rate and on the terms provided in this
Promissory Note (including all renewals, extensions or modifications hereof,
this "Note").

SECURITY. Borrower has granted Bank a security interest in the collateral
described in the Loan Documents, including, but not limited to, personal
property collateral described in that certain Security Agreement of even date
herewith.

INTEREST RATE. Interest shall accrue on the unpaid principal balance of this
Note from the date hereof at the LIBOR Market Index Rate plus 1.25%, as that
rate may change from day to day in accordance with changes in the LIBOR Market
Index Rate, ("Interest Rate"). "LIBOR Market Index Rate", for any day, is the
rate for 1 month U.S. dollar deposits as reported on Telerate page 3750 as of
11:00 a.m., London time, on such day, or if such day is not a London business
day, then the immediately preceding London business day (or if not so reported,
then as determined by Bank from another recognized source or interbank
quotation).

DEFAULT RATE. In addition to all other rights contained in this Note, if a
Default (as defined herein) occurs and as long as a Default continues, all
outstanding Obligations shall bear interest at the Interest Rate plus 3%
("Default Rate"), except if the Note is governed by the laws of the State of
North Carolina and the original principal amount is less than or equal to
$300,000.00. The Default Rate shall also apply from acceleration until the
Obligations or any judgment thereon is paid in full.

INTEREST AND FEE(S) COMPUTATION (ACTUAL/360). Interest and fees, if any, shall
be computed on the basis of a 360-day year for the actual number of days in the
applicable period ("Actual/360 Computation"). The Actual/360 Computation
determines the annual effective interest yield by taking the stated (nominal)
rate for a year's period and then dividing said rate by 360 to determine the
daily periodic rate to be applied for each day in the applicable period.
Application of the Actual/360 Computation produces an annualized effective rate
exceeding the nominal rate.

REPAYMENT TERMS. This Note shall be due and payable in full, including all
principal and accrued interest, September 15, 2000.

APPLICATION OF PAYMENTS. Monies received by Bank from any source for application
toward payment of the Obligations shall be applied to accrued interest and then
to principal. If a Default occurs, monies may be applied to the Obligations in
any manner or order deemed appropriate by Bank.
<PAGE>

If any payment received by Bank under this Note or other Loan Documents is
rescinded, avoided or for any reason returned by Bank because of any adverse
claim or threatened action, the returned payment shall remain payable as an
obligation of all persons liable under this Note or other Loan Documents as
though such payment had not been made.

DEFINITIONS. LOAN DOCUMENTS. The term "Loan Documents" used in this Note and the
other Loan Documents refers to all documents executed in connection with or
related to the loan evidenced by this Note and any prior notes which evidence
all or any portion of the loan evidenced by this Note, and any letters of credit
issued pursuant to any loan agreement to which this Note is subject, any
applications for such letters of credit and any other documents executed in
connection therewith or related thereto, and may include, without limitation, a
commitment letter that survives closing, a loan agreement, this Note, guaranty
agreements, security agreements, security instruments, financing statements,
mortgage instruments, any renewals or modifications, whenever any of the
foregoing are executed, but does not include swap agreements (as defined in 11
U.S.C. ss. 101). OBLIGATIONS. The term "Obligations" used in this Note refers to
any and all indebtedness and other obligations under this Note, all other
obligations under any other Loan Document(s), and all obligations under any swap
agreements (as defined in 11 U.S.C. ss. 101) between Borrower and Bank whenever
executed. CERTAIN OTHER TERMS. All terms that are used but not otherwise defined
in any of the Loan Documents shall have the definitions provided in the Uniform
Commercial Code.

LATE CHARGE. If any payments are not timely made, Borrower shall also pay to
Bank a late charge equal to 4% of each payment past due for 15 or more days.

Acceptance by Bank of any late payment without an accompanying late charge shall
not be deemed a waiver of Bank's right to collect such late charge or to collect
a late charge for any subsequent late payment received.

ATTORNEYS' FEES AND OTHER COLLECTION COSTS. Borrower shall pay all of Bank's
reasonable expenses incurred to enforce or collect any of the Obligations
including, without limitation, reasonable arbitration, paralegals', attorneys'
and experts' fees and expenses, whether incurred without the commencement of a
suit, in any trial, arbitration, or administrative proceeding, or in any
appellate or bankruptcy proceeding.

USURY. If at any time the effective interest rate under this Note would, but for
this paragraph, exceed the maximum lawful rate, the effective interest rate
under this Note shall be the maximum lawful rate, and any amount received by
Bank in excess of such rate shall be applied to principal and then to fees and
expenses, or, if no such amounts are owing, returned to Borrower.

DEFAULT. If any of the following occurs, a default ("Default") under this Note
shall exist: NONPAYMENT; NONPERFORMANCE. The failure of timely payment or
performance of the Obligations or Default under this Note or any other Loan
Documents. FALSE WARRANTY. A warranty or representation made or deemed made in
the Loan Documents or furnished Bank in connection with the loan evidenced by
this Note proves materially false, or if of a continuing nature, becomes
materially false. CROSS DEFAULT. At Bank's option, any default in payment or
performance of any obligation in excess of $1,500,000 under any other loans or
payment of obligations of Borrower, any Subsidiary or Affiliate of Borrower, any
general partner of or the holder(s) of the majority ownership interests of
Borrower with Bank or its affiliates ("Affiliate" shall have the meaning as
defined in 11 U.S.C. ss. 101, except that the term "Borrower" shall be
substituted for the term "Debtor" therein; "Subsidiary" shall mean any business
in which Borrower holds, directly or indirectly, a controlling interest).
CESSATION; BANKRUPTCY. The death of, appointment of a guardian for, dissolution
of, termination of existence of, loss of good standing status by, appointment of
a receiver for, assignment for the benefit of creditors of, or commencement of
any bankruptcy or insolvency proceeding by or against Borrower, its Subsidiaries
or Affiliates, if any, or any general partner of or the holder(s) of the
majority ownership interests of Borrower, or any party to the Loan Documents.
MATERIAL CAPITAL STRUCTURE OR BUSINESS ALTERATION. Without prior written consent
of Bank, (i) a material alteration in the kind or type of Borrower's business or
that of Borrower's Subsidiaries or Affiliates, if any; (ii) the sale of
substantially all of the business or assets of Borrower, any of Borrower's
Subsidiaries or Affiliates or any

<PAGE>

guarantor, or a material portion (10% or more) of such business or assets if
such a sale is outside the ordinary course of business of Borrower, or any of
Borrower's Subsidiaries or Affiliates or any guarantor, or more than 50% of the
outstanding stock or voting power of or in any such entity in a single
transaction or a series of transactions; (iii) the acquisition of substantially
all of the business or assets or more than 50% of the outstanding stock or
voting power of any other entity; or (iv) should any Borrower or any of
Borrower's Subsidiaries or Affiliates or any guarantor enter into any merger or
consolidation.

REMEDIES UPON DEFAULT. If a Default occurs under this Note or any Loan
Documents, Bank may at any time thereafter, take the following actions: BANK
LIEN. Foreclose its security interest or lien against Borrower's accounts
without notice. ACCELERATION UPON DEFAULT. Accelerate the maturity of this Note
and, at Bank's option, any or all other Obligations, whereupon this Note and the
accelerated Obligations shall be immediately due and payable. CUMULATIVE.
Exercise any rights and remedies as provided under the Note and other Loan
Documents, or as provided by law or equity.

FINANCIAL AND OTHER INFORMATION. Borrower shall deliver to Bank such information
as Bank may reasonably request from time to time, including without limitation,
financial statements and information pertaining to Borrower's financial
condition. Such information shall be true, complete, and accurate.

LINE OF CREDIT ADVANCES. Borrower may borrow, repay and reborrow, and Bank may
advance and readvance under this Note respectively from time to time until
September 15, 2000 (each an "Advance" and together the "Advances"), so long as
the total principal balance outstanding under this Note at any one time does not
exceed the principal amount stated on the face of this Note, subject to the
limitations described in any loan agreement to which this Note is subject.
Bank's obligation to make Advances under this Note shall terminate if Borrower
is in Default. As of the date of each proposed Advance, Borrower shall be deemed
to represent that each representation made in the Loan Documents is true as of
such date.

If Borrower subscribes to Bank's cash management services and such services are
applicable to this line of credit, the terms of such service shall control the
manner in which funds are transferred between the applicable demand deposit
account and the line of credit for credit or debit to the line of credit.

WAIVERS AND AMENDMENTS. No waivers, amendments or modifications of this Note and
other Loan Documents shall be valid unless in writing and signed by an officer
of Bank. No waiver by Bank of any Default shall operate as a waiver of any other
Default or the same Default on a future occasion. Neither the failure nor any
delay on the part of Bank in exercising any right, power, or remedy under this
Note and other Loan Documents shall operate as a waiver thereof, nor shall a
single or partial exercise thereof preclude any other or further exercise
thereof or the exercise of any other right, power or remedy.

Each Borrower or any person liable under this Note waives presentment, protest,
notice of dishonor, demand for payment, notice of intention to accelerate
maturity, notice of acceleration of maturity, notice of sale and all other
notices of any kind. Further, each agrees that Bank may extend, modify or renew
this Note or make a novation of the loan evidenced by this Note for any period,
and grant any releases, compromises or indulgences with respect to any
collateral securing this Note, or with respect to any other Borrower or any
other person liable under this Note or other Loan Documents, all without notice
to or consent of each Borrower or each person who may be liable under this Note
or any other Loan Document and without affecting the liability of Borrower or
any person who may be liable under this Note or any other Loan Document.

MISCELLANEOUS PROVISIONS. ASSIGNMENT. This Note and the other Loan Documents
shall inure to the benefit of and be binding upon the parties and their
respective heirs, legal representatives, successors and assigns. Bank's
interests in and rights under this Note and the other Loan Documents are freely
assignable, in whole or in part, by Bank. In addition, nothing in this Note or
any of the other Loan Documents shall prohibit Bank from pledging or assigning
this Note or any of the other Loan Documents or any interest therein to any
Federal Reserve Bank. Borrower shall not assign its rights and interest
hereunder without the prior written consent of Bank, and any attempt by Borrower
to assign without Bank's prior written consent is null and void. Any assignment
shall not release Borrower from the

<PAGE>

Obligations. APPLICABLE LAW; CONFLICT BETWEEN DOCUMENTS. This Note and the other
Loan Documents shall be governed by and construed under the laws of the state
named in Bank's address shown above without regard to that state's conflict of
laws principles. If the terms of this Note should conflict with the terms of the
Loan Agreement or any commitment letter that survives closing, the terms of this
Note shall control. BORROWER'S ACCOUNTS. Except as prohibited by law, Borrower
grants Bank a security interest in all of Borrower's accounts with Bank and any
of its affiliates. JURISDICTION. Borrower irrevocably agrees to non-exclusive
personal jurisdiction in the state named in Bank's address shown above.
SEVERABILITY. If any provision of this Note or of the other Loan Documents shall
be prohibited or invalid under applicable law, such provision shall be
ineffective but only to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this
Note or other such document. NOTICES. Any notices to Borrower shall be
sufficiently given, if in writing and mailed or delivered to the Borrower's
address shown above or such other address as provided hereunder, and to Bank, if
in writing and mailed or delivered to Bank's office address shown above or such
other address as Bank may specify in writing from time to time. In the event
that Borrower changes Borrower's address at any time prior to the date the
Obligations are paid in full, Borrower agrees to promptly give written notice of
said change of address by registered or certified mail, return receipt
requested, all charges prepaid. PLURAL; CAPTIONS. All references in the Loan
Documents to Borrower, guarantor, person, document or other nouns of reference
mean both the singular and plural form, as the case may be, and the term
"person" shall mean any individual, person or entity. The captions contained in
the Loan Documents are inserted for convenience only and shall not affect the
meaning or interpretation of the Loan Documents. Advances. Bank may, in its sole
discretion, make other advances which shall be deemed to be advances under this
Note, even though the stated principal amount of this Note may be exceeded as a
result thereof. POSTING OF PAYMENTS. All payments received during normal banking
hours after 2:00 p.m. local time at the office of Bank first shown above shall
be deemed received at the opening of the next banking day. JOINT AND SEVERAL
OBLIGATIONS. Each person who signs this Note as a Borrower (as defined herein)
is jointly and severally obligated. FEES AND TAXES. Borrower shall promptly pay
all documentary, intangible recordation and/or similar taxes on this transaction
whether assessed at closing or arising from time to time.

ARBITRATION. Upon demand of any party hereto, whether made before or after
institution of any judicial proceeding, any claim or controversy arising out of
or relating to the Loan Documents between parties hereto (a "Dispute") shall be
resolved by binding arbitration conducted under and governed by the Commercial
Financial Disputes Arbitration Rules (the "Arbitration Rules") of the American
Arbitration Association (the "AAA") and the Federal Arbitration Act. Disputes
may include, without limitation, tort claims, counterclaims, a dispute as to
whether a matter is subject to arbitration, claims brought as class actions, or
claims arising from documents executed in the future. A judgment upon the award
may be entered in any court having jurisdiction. Notwithstanding the foregoing,
this arbitration provision does not apply to disputes under or related to swap
agreements. SPECIAL RULES. All arbitration hearings shall be conducted in the
city named in the address of Bank first stated above. A hearing shall begin
within 90 days of demand for arbitration and all hearings shall conclude within
120 days of demand for arbitration. These time limitations may not be extended
unless a party shows cause for extension and then for no more than a total of 60
days. The expedited procedures set forth in Rule 51 et seq. of the Arbitration
Rules shall be applicable to claims of less than $1,000,000.00. Arbitrators
shall be licensed attorneys selected from the Commercial Financial Dispute
Arbitration Panel of the AAA. The parties do not waive applicable Federal or
state substantive law except as provided herein. PRESERVATION AND LIMITATION OF
REMEDIES. Notwithstanding the preceding binding arbitration provisions, the
parties agree to preserve, without diminution, certain remedies that any party
may exercise before or after an arbitration proceeding is brought. The parties
shall have the right to proceed in any court of proper jurisdiction or by
self-help to exercise or prosecute the following remedies, as applicable: (i)
all rights to foreclose against any real or personal property or other security
by exercising a power of sale or under applicable law by judicial foreclosure
including a proceeding to confirm the sale; (ii) all rights of self-help
including peaceful occupation of real property and collection of rents, set-off,
and peaceful possession of personal property; (iii) obtaining provisional or
ancillary remedies including injunctive relief, sequestration, garnishment,
attachment, appointment of receiver and filing an involuntary bankruptcy
proceeding; and (iv) when applicable, a judgment by confession of judgment. Any
claim or controversy with regard to any party's entitlement to such remedies is
a Dispute. WAIVER OF EXEMPLARY DAMAGES. The parties agree that they

<PAGE>

shall not have a remedy of punitive or exemplary damages against other parties
in any Dispute and hereby waive any right or claim to punitive or exemplary
damages they have now or which may arise in the future in connection with any
Dispute whether the Dispute is resolved by arbitration or judicially. WAIVER OF
JURY TRIAL. THE PARTIES ACKNOWLEDGE THAT BY AGREEING TO BINDING ARBITRATION THEY
HAVE IRREVOCABLY WAIVED ANY RIGHT THEY MAY HAVE TO JURY TRIAL WITH REGARD TO A
DISPUTE.

IN WITNESS WHEREOF, Borrower, on the day and year first above written, has
caused this Note to be executed under seal.

PLACE OF EXECUTION AND DELIVERY. Borrower hereby certifies that this Note and
the Loan Documents were executed in the State of North Carolina and delivered to
Bank in the State of North Carolina.

                                    Inter Act Electronic Marketing, Inc.
                                    Taxpayer Identification Number: 56-1817510

                                    By:  /s/ Thomas J. McGoldrick         (SEAL)
                                        ----------------------------------
                                        Thomas J. McGoldrick, President

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