Document:

PLEDGE AND SECURITY AGREEMENT
                          -----------------------------

     THIS PLEDGE AND  SECURITY  AGREEMENT  ("Pledge  Agreement"),  dated May 16,
2000, is by DH APPAREL COMPANY,  INC., a Georgia corporation  ("Pledgor"),  with
its chief executive office at 1020-A Barrow Industrial Parkway,  Winder, Georgia
30680 to and in favor of CONGRESS FINANCIAL  CORPORATION  (SOUTHERN),  a Georgia
corporation  ("Pledgee"),  having an office at 200 Galleria Parkway, Suite 1500,
Atlanta, Georgia 30339.

                              W I T N E S S E T H:
                              --------------------

     WHEREAS,  Pledgor  is now the  direct  and  beneficial  owner of all of the
issued and  outstanding  shares of capital stock of Cargud,  S.A., a Costa Rican
corporation  ("Issuer"),  29,360  of which  shares  of  capital  stock are being
delivered  by Pledgor to Pledgee  pursuant to the terms  hereof and which are as
described  on Exhibit A annexed  hereto  and made a part  hereof  (the  "Pledged
Securities");

     WHEREAS,  Pledgee and Pledgor  have entered into or are about to enter into
financing arrangements pursuant to which Pledgee may make loans and advances and
provide other financial  accommodations  to Pledgor as set forth in the Loan and
Security  Agreement,  dated of even date  herewith,  by and between  Pledgee and
Pledgor  (as  the  same  now  exists  or may  hereafter  be  amended,  modified,
supplemented, extended, renewed, restated or replaced, the "Loan Agreement") and
other agreements,  documents and instruments  referred to therein or at any time
executed and/or delivered in connection therewith or related thereto, including,
but not limited to, this Pledge  Agreement (all of the foregoing,  together with
the Loan Agreement, as the same now exist or may hereafter be amended, modified,
supplemented,  extended,  renewed,  restated  or  replaced,  being  collectively
referred to herein as the "Financing Agreements"); and

     WHEREAS,  in order to induce  Pledgee to enter into the Loan  Agreement and
the other Financing  Agreements and to make loans and advances and provide other
financial  accommodations  to Pledgor  pursuant  thereto,  Pledgor has agreed to
secure the payment and performance of the  Obligations (as hereinafter  defined)
to Pledgee and to accomplish  same by (i)  executing  and  delivering to Pledgee
this Pledge Agreement,  (ii) delivering to Pledgee the Pledged  Securities which
are  registered in the name of Pledgor,  together with  appropriate  powers duly
executed in blank by Pledgor,  and (iii) delivering to Pledgee any and all other
documents  which  Pledgee  deems  necessary  to  protect   Pledgee's   interests
hereunder;

     NOW,  THEREFORE,  in  consideration  of the  premises  and  other  good and
valuable  consideration,  the  receipt  and  sufficiency  of  which  are  hereby
acknowledged, Pledgor hereby agrees as follows:

                                      - 1 -
<PAGE>

     1. GRANT OF SECURITY INTEREST
        --------------------------

     As  collateral  security  for  the  prompt   performance,   observance  and
indefeasible payment in full of all of the Obligations (as hereinafter defined),
Pledgor  hereby  assigns,  pledges,  hypothecates,  transfers  and sets  over to
Pledgee  and  grants to  Pledgee a  security  interest  in and lien upon (a) the
Pledged  Securities,   together  with  all  cash  dividends,   stock  dividends,
interests,   profits,   redemptions,   warrants,   subscription  rights,  stock,
securities  options,  substitutions,  exchanges and other  distributions  now or
hereafter  distributed  by Issuer or which may  hereafter  be  delivered  to the
possession of Pledgor or Pledgee with respect  thereto,  (b)  Pledgor's  records
with respect to the foregoing, and (c) the proceeds of all of the foregoing (all
of  the  foregoing  being  collectively  referred  to  herein  as  the  "Pledged
Property").

     2. OBLIGATIONS SECURED
        -------------------

     The security interest, lien and other interests granted to Pledgee pursuant
to this Pledge Agreement shall secure the prompt performance and payment in full
of any and all obligations,  liabilities and indebtedness of every kind,  nature
and  description  owing by Pledgor to Pledgee and/or its  affiliates,  including
principal,  interest,  charges,  fees,  costs and expenses,  however  evidenced,
whether as principal,  surety, endorser, guarantor or otherwise, whether arising
under this Pledge Agreement,  the Loan Agreement, the other Financing Agreements
or otherwise, whether now existing or hereafter arising, whether arising before,
during or after the initial or any renewal  term of the Loan  Agreement or after
the  commencement  of any case with respect to Pledgor  under the United  States
Bankruptcy  Code or any similar  statute  (including,  without  limitation,  the
payment of interest and other  amounts which would accrue and become due but for
the  commencement  of such  case),  whether  direct  or  indirect,  absolute  or
contingent,  joint or several, due or not due, primary or secondary,  liquidated
or unliquidated,  secured or unsecured,  and however acquired by Pledgee (all of
the foregoing being collectively referred to herein as the "Obligations").

     3. REPRESENTATIONS, WARRANTIES AND COVENANTS
        -----------------------------------------

     Pledgor hereby  represents,  warrants and covenants with and to Pledgee the
following  (all  of  such   representations,   warranties  and  covenants  being
continuing so long as any of the Obligations are outstanding):

     (a) The Pledged Securities are duly authorized,  validly issued, fully paid
and  non-assessable  capital  stock  of  Issuer  and  constitute   approximately
sixty-five  (65%)  percent of  Pledgor's  entire  interest in Issuer and are not
registered,  nor has Pledgor authorized the registration thereof, in the name of
any person or entity other than Pledgor or Pledgee.

     (b) The Pledged  Property is directly,  legally and  beneficially  owned by
Pledgor,  free and clear of all claims,  liens,  pledges and encumbrances of any
kind,  nature or  description,  except for the pledge and  security  interest in
favor of Pledgee and the pledges and security interests permitted under the Loan
Agreement.

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<PAGE>

     (c) The Pledged Property is not subject to any restrictions relative to the
transfer  thereof  and Pledgor has the right to  transfer  and  hypothecate  the
Pledged Property free and clear of any liens, encumbrances or restrictions.

     (d) The  Pledged  Property  is duly and  validly  pledged to Pledgee and no
consent or  approval  of any  governmental  or  regulatory  authority  or of any
securities  exchange or the like, nor any consent or approval of any other third
party,  was or is necessary to the  validity and  enforceability  of this Pledge
Agreement.

     (e) Pledgor  authorizes  Pledgee to: (i) store,  deposit and  safeguard the
Pledged  Property,  (ii)  perform  any and all other acts which  Pledgee in good
faith deems  reasonable  and/or necessary for the protection and preservation of
the  Pledged  Property  or its value or  Pledgee's  security  interest  therein,
including,  without limitation,  transferring,  registering or arranging for the
transfer or registration of the Pledged Property to or in Pledgee's own name and
receiving the income  therefrom as additional  security for the  Obligations and
(iii)  pay any  charges  or  expenses  which  Pledgee  deems  necessary  for the
foregoing  purpose,  but  without any  obligation  to do so. Any  obligation  of
Pledgee for  reasonable  care for the Pledged  Property in Pledgee's  possession
shall be  limited  to the same  degree of care which  Pledgee  uses for  similar
property pledged to Pledgee by other persons.

     (f) If Pledgor  shall  become  entitled  to receive  or  acquire,  or shall
receive any stock  certificate,  or option or right with respect to the stock of
Issuer (including without limitation, any certificate representing a dividend or
a  distribution  or exchange of or in connection  with  reclassification  of the
Pledged  Securities)  whether  as an  addition  to,  in  substitution  of, or in
exchange for any of the Pledged Property or otherwise,  Pledgor agrees to accept
same as Pledgee's  agent,  to hold same in trust for Pledgee and to deliver same
forthwith to Pledgee or Pledgee's agent or bailee in the form received, with the
endorsement(s)  of Pledgor  where  necessary  and/or  appropriate  powers and/or
assignments  duly  executed to be held by Pledgee or  Pledgee's  agent or bailee
subject to the terms hereof, as further security for the Obligations.

     (g) Pledgor shall not,  without the prior  consent of Pledgee,  directly or
indirectly, sell, assign, transfer, or otherwise dispose of, or grant any option
with respect to the Pledged Property,  nor shall Pledgor create, incur or permit
any  further  pledge,  hypothecation,  encumbrance,  lien,  mortgage or security
interest with respect to the Pledged Property.

     (h) So long as no Event of Default (as  hereinafter  defined)  has occurred
and is  continuing,  Pledgor  shall  have the  right to vote  and  exercise  all
corporate  rights with  respect to the Pledged  Securities,  except as expressly
prohibited  herein,  and to receive any cash dividends payable in respect of the
Pledged Securities.

     (i) Pledgor  shall not permit  Issuer,  directly or  indirectly,  to issue,
sell, grant, assign,  transfer or otherwise dispose of, any additional shares of
capital stock of Issuer or any option or warrant with respect to, or other right
or security  convertible into, any additional shares of capital stock of Issuer,
now or  hereafter  authorized,  unless  all  such  additional  shares,  options,
warrants,  rights or other such securities are made and shall remain part of the
Pledged Property subject to the pledge and security interest granted herein.

                                      - 3 -
<PAGE>

     (j) Pledgor shall pay all charges and assessments of any nature against the
Pledged   Property  or  with  respect  thereto  prior  to  said  charges  and/or
assessments being delinquent.

     (k) Pledgor  shall  promptly  reimburse  Pledgee on demand,  together  with
interest at the rate then  applicable to the  Obligations  set forth in the Loan
Agreement, for any charges,  assessments or expenses paid or incurred by Pledgee
in its  discretion  for the  protection,  preservation  and  maintenance  of the
Pledged Property and the enforcement of Pledgee's rights  hereunder,  including,
without  limitation,  attorneys' fees and legal expenses  incurred by Pledgee in
seeking to protect,  collect or enforce  its rights in the  Pledged  Property or
otherwise hereunder.

     (l)  Pledgor  shall  furnish,  or cause to be  furnished,  to Pledgee  such
information  concerning Issuer and the Pledged Property as Pledgee may from time
to time reasonably request in good faith, including, without limitation, current
financial statements.

     (m)  Pledgee may notify  Issuer or the  appropriate  transfer  agent of the
Pledged  Securities to register the security  interest and pledge granted herein
and honor the rights of Pledgee with respect thereto.

     (n) Pledgor  waives:  (i) all rights to require  Pledgee to proceed against
any other  person,  entity or  collateral  or to exercise  any remedy,  (ii) the
defense of the statute of limitations in any action upon any of the Obligations,
(iii) any  right of  subrogation  or  interest  in the  Obligations  or  Pledged
Property until all Obligations have been paid in full, (iv) any rights to notice
of any kind or nature whatsoever,  unless  specifically  required in this Pledge
Agreement  or  non-waivable  under any  applicable  law,  and (v) to the  extent
permissible,  its rights under Section 9-112 and 9-207 of the Uniform Commercial
Code. Pledgor agrees that the Pledged Property,  other collateral,  or any other
guarantor or endorser may be released,  substituted or added with respect to the
Obligations,  in whole or in part, without releasing or otherwise  affecting the
liability of Pledgor,  the pledge and security interests granted  hereunder,  or
this Pledge  Agreement.  Pledgee is entitled to all of the benefits of a secured
party set forth in Section 9-207 of the New York Uniform Commercial Code.

     4. EVENTS OF DEFAULT
        -----------------

     All Obligations shall become immediately due and payable, without notice or
demand,  at the option of Pledgee,  upon the occurrence of any Event of Default,
as such term is  defined  in the Loan  Agreement  (each an  "Event  of  Default"
hereunder).

     5. RIGHTS AND REMEDIES
        -------------------

     At any time an Event of Default  exists or has occurred and is  continuing,
in addition to all other rights and remedies of Pledgee,  whether provided under
this Pledge  Agreement,  the Loan  Agreement,  the other  Financing  Agreements,
applicable  law or  otherwise,  Pledgee  shall  have the  following  rights  and
remedies which may be exercised without notice to, or consent by, Pledgor except
as such notice or consent is expressly provided for hereunder:

                                      - 4 -
<PAGE>

     (a) Pledgee,  at its option,  shall be empowered to exercise its continuing
right to instruct the Issuer (or the  appropriate  transfer agent of the Pledged
Securities)  to  register  any or all of the Pledged  Securities  in the name of
Pledgee or in the name of  Pledgee's  nominee and Pledgee may  complete,  in any
manner  Pledgee may deem  expedient,  any and all stock powers,  assignments  or
other  documents  heretofore  or  hereafter  executed  in blank by  Pledgor  and
delivered  to  Pledgee.  After said  instruction,  and without  further  notice,
Pledgee  shall have the  exclusive  right to exercise  all voting and  corporate
rights with respect to the Pledged  Securities and other Pledged  Property,  and
exercise any and all rights of conversion, redemption, exchange, subscription or
any other rights, privileges, or options pertaining to any shares of the Pledged
Securities  or other  Pledged  Property as if Pledgee  were the  absolute  owner
thereof,   including,   without  limitation,  the  right  to  exchange,  in  its
discretion,  any and all of the Pledged  Securities  and other Pledged  Property
upon  any  merger,  consolidation,  reorganization,  recapitalization  or  other
readjustment  with  respect  thereto.  Upon the  exercise  of any  such  rights,
privileges  or options by Pledgee,  Pledgee  shall have the right to deposit and
deliver any and all of the Pledged  Securities and other Pledged Property to any
committee, depository, transfer agent, registrar or other designated agency upon
such terms and  conditions  as Pledgee may  determine,  all  without  liability,
except to account for property  actually received by Pledgee.  However,  Pledgee
shall  have no duty to  exercise  any of the  aforesaid  rights,  privileges  or
options (all of which are  exercisable  in the sole  discretion  of Pledgee) and
shall not be responsible for any failure to do so or delay in doing so.

     (b) In addition to all the rights and remedies of a secured party under the
Uniform  Commercial Code or other  applicable law, Pledgee shall have the right,
at any time and without demand of performance or other demand,  advertisement or
notice  of any kind  (except  the  notice  specified  below of time and place of
public or private  sale) to or upon Pledgor or any other person (all and each of
which demands,  advertisements and/or notices are hereby expressly waived to the
extent  permitted by applicable law), to proceed  forthwith to collect,  redeem,
recover,  receive,  appropriate,  realize,  sell,  or  otherwise  dispose of and
deliver said Pledged  Property or any part thereof in one or more lots at public
or private sale or sales at any exchange,  broker's board or at any of Pledgee's
offices or  elsewhere at such prices and on such terms as Pledgee may deem best.
The foregoing disposition(s) may be for cash or on credit or for future delivery
without assumption of any credit risk, with Pledgee having the right to purchase
all or any part of said  Pledged  Property  so sold at any such  sale or  sales,
public or private,  free of any right or equity of redemption in Pledgor,  which
right or equity is hereby expressly waived or released by Pledgor.  The proceeds
of  any  such  collection,   redemption,   recovery,   receipt,   appropriation,
realization,  sale or other disposition,  after deducting all costs and expenses
of every kind incurred  relative thereto or incidental to the care,  safekeeping
or  otherwise  of any and all  Pledged  Property  or in any way  relating to the
rights of Pledgee hereunder, including attorneys' fees and legal expenses, shall
be  applied  first to the  satisfaction  of the  Obligations  (in such  order as
Pledgee  may elect and  whether or not due) and then to the payment of any other
amounts required by applicable law, including Section 9-504(1)(c) of the Uniform
Commercial  Code,  with  Pledgor  to be and remain  liable  for any  deficiency.
Pledgor  shall be liable to Pledgee  for the payment on demand of all such costs
and expenses,  together with interest at the then  applicable  rate set forth in
the Loan Agreement,  and any attorneys' fees and legal expenses.  Pledgor agrees
that five (5) days prior  written  notice by Pledgee  designating  the place and
time of any public  sale or of the time after  which any  private  sale or other
intended  disposition  of any or all of the Pledged  Property is to be made,  is
reasonable notification of such matters.

                                      - 5 -
<PAGE>

     (c) Pledgor  recognizes  that Pledgee may be unable to effect a public sale
of all or part  of the  Pledged  Property  by  reason  of  certain  prohibitions
contained  in the  Securities  Act of 1933,  as amended,  as now or hereafter in
effect  or in  applicable  Blue Sky or other  state  securities  law,  as now or
hereafter in effect, but may be compelled to resort to one or more private sales
to a restricted  group of purchasers  who will be obliged to agree,  among other
things,  to acquire such Pledged  Property for their own account for  investment
and not with a view to the distribution or resale thereof. If at the time of any
sale of the Pledged  Property or any part  thereof,  the same shall not, for any
reason whatsoever,  be effectively registered (if required) under the Securities
Act of 1933 (or other  applicable  state  securities  law),  as then in  effect,
Pledgee in its sole and absolute  discretion  is authorized to sell such Pledged
Property  or such part  thereof  by private  sale in such  manner and under such
circumstances as Pledgee or its counsel may deem necessary or advisable in order
that such sale may legally be effected without registration. Pledgor agrees that
private  sales so made may be at prices and other  terms less  favorable  to the
seller than if such Pledged  Property were sold at public sale, and that Pledgee
has no obligation to delay the sale of any such Pledged  Property for the period
of time necessary to permit Issuer, even if Issuer would agree, to register such
Pledged Property for public sale under such applicable  securities laws. Pledgor
agrees that any private  sales made under the foregoing  circumstances  shall be
deemed to have been in a commercially reasonable manner.

     (d) All of the Pledgee's  rights and remedies,  including,  but not limited
to, the foregoing and those otherwise arising under this Pledge  Agreement,  the
Loan Agreement and the other Financing  Agreements,  the instruments  comprising
the Pledged Property,  applicable law or otherwise,  shall be cumulative and not
exclusive and shall be enforceable  alternatively,  successively or concurrently
as  Pledgee  may deem  expedient.  No failure or delay on the part of Pledgee in
exercising  any of its options,  powers or rights or partial or single  exercise
thereof, shall constitute a waiver of such option, power or right.

     6. JURY TRIAL WAIVER; OTHER WAIVERS AND CONSENTS; GOVERNING LAW
        ------------------------------------------------------------

     (a) The validity,  interpretation  and enforcement of this Pledge Agreement
and  the  other  Financing  Agreements  and  any  dispute  arising  out  of  the
relationship  between the parties hereto,  whether in contract,  tort, equity or
otherwise,  shall be  governed  by the  internal  laws of the  State of  Georgia
(without giving effect to principles of conflicts of law).

     (b)  Pledgor   irrevocably   consents  and  submits  to  the  non-exclusive
jurisdiction  of the  Superior  Court of Fulton  County,  Georgia and the United
States  District  Court for the  Northern  District  of  Georgia  and waives any
objection  based on venue or forum non  conveniens  with  respect  to any action
instituted  therein  arising  under this  Pledge  Agreement  or any of the other
Financing  Agreements or in any way  connected  with or related or incidental to
the dealings of the parties hereto in respect of this Pledge Agreement or any of
the other Financing Agreements or the transactions related hereto or thereto, in
each case whether now existing or  hereafter  arising,  and whether in contract,
tort, equity or otherwise,  and agrees that any dispute with respect to any such
matters shall be heard only in the courts  described  above (except that Pledgee
shall have the right to bring any action or  proceeding  against  Pledgor or its
property in the courts

                                      - 6 -
<PAGE>

of any other  jurisdiction which Pledgee deems necessary or appropriate in order
to realize on the Pledged  Property or to otherwise  enforce its rights  against
Pledgor or its property).

     (c) Pledgor hereby waives  personal  service of any and all process upon it
and  consents  that all such  service of process may be made by  certified  mail
(return receipt requested)  directed to its address set forth herein and service
so made shall be deemed to be completed  five (5) days after the same shall have
been so deposited in the U.S. mails,  or, at Pledgee's  option,  by service upon
Pledgor in any other manner provided under the rules of any such courts.  Within
thirty  (30) days after such  service,  Pledgor  shall  appear in answer to such
process,  failing  which  Pledgor shall be deemed in default and judgment may be
entered by Pledgee  against Pledgor for the amount of the claim and other relief
requested.

     (d) PLEDGOR HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM,  DEMAND,
ACTION OR CAUSE OF ACTION (i) ARISING UNDER THIS PLEDGE  AGREEMENT OR ANY OF THE
OTHER  FINANCING  AGREEMENTS  OR (ii) IN ANY WAY  CONNECTED  WITH OR  RELATED OR
INCIDENTAL  TO THE  DEALINGS  OF PLEDGOR  AND  PLEDGEE IN RESPECT OF THIS PLEDGE
AGREEMENT OR ANY OF THE OTHER FINANCING  AGREEMENTS OR THE TRANSACTIONS  RELATED
HERETO OR THERETO IN EACH CASE WHETHER NOW EXISTING OR  HEREAFTER  ARISING,  AND
WHETHER IN  CONTRACT,  TORT,  EQUITY OR  OTHERWISE.  PLEDGOR  HEREBY  AGREES AND
CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED
BY COURT TRIAL  WITHOUT A JURY AND THAT  PLEDGOR OR PLEDGEE MAY FILE AN ORIGINAL
COUNTERPART  OF A COPY OF THIS  PLEDGE  AGREEMENT  WITH  ANY  COURT  AS  WRITTEN
EVIDENCE OF THE  CONSENT OF THE  PARTIES  HERETO TO THE WAIVER OF THEIR RIGHT TO
TRIAL BY JURY.

     (e)  Pledgee  shall not have any  liability  to Pledgor  (whether  in tort,
contract,  equity or  otherwise)  for losses  suffered by Pledgor in  connection
with, arising out of, or in any way related to the transactions or relationships
contemplated by this Pledge  Agreement,  or any act, omission or event occurring
in connection  herewith,  unless it is determined by a final and  non-appealable
judgment or court order  binding on Pledgee,  that the losses were the result of
acts or omissions  constituting gross negligence or willful  misconduct.  In any
such  litigation,  Pledgee  shall be entitled  to the benefit of the  rebuttable
presumption  that it acted in good faith and with the exercise of ordinary  care
in the performance by it of the terms of this Pledge Agreement.

     7. MISCELLANEOUS
        -------------

     (a) Pledgor  agrees that at any time and from time to time upon the written
request of Pledgee,  Pledgor shall  execute and deliver such further  documents,
including,  but not limited to,  irrevocable  proxies or stock  powers,  in form
satisfactory  to counsel  for  Pledgee,  and will take or cause to be taken such
further  acts as Pledgee  may  request in order to effect the  purposes  of this
Pledge Agreement and perfect or continue the perfection of the security interest
in the Pledged  Property  granted to Pledgee  hereunder.  Without  limiting  the
foregoing,  and without demand by Pledgee, Pledgor agrees promptly to deliver to
Pledgee any replacement  certificates necessary or appropriate in the discretion
of Pledgee, with respect to the Pledged Securities.

                                      - 7 -
<PAGE>

     (b) Beyond the  exercise of  reasonable  care to assure the safe custody of
the Pledged Property (whether such custody is exercised by Pledgee, or Pledgee's
nominee,  agent or bailee)  Pledgee or Pledgee's  nominee  agent or bailee shall
have no duty or liability to protect or preserve any rights  pertaining  thereto
and shall be  relieved  of all  responsibility  for the  Pledged  Property  upon
surrendering it to Pledgor or foreclosure with respect thereto.

     (c) All  notices,  requests and demands to or upon the  respective  parties
hereto  shall be in writing and shall be deemed to have been duly given or made:
if delivered in person,  immediately  upon  delivery;  if by telex,  telegram or
facsimile  transmission,  immediately  upon  sending  and upon  confirmation  of
receipt; if by nationally recognized overnight courier service with instructions
to deliver the next business day, one (1) business day after sending;  and if by
registered or certified  mail,  return  receipt  requested,  five (5) days after
mailing.  All notices,  requests and demands upon the parties are to be given to
the following  addresses (or to such other address as any party may designate by
notice in accordance with this Section):

         If to Pledgor:             DH Apparel Company, Inc.
                                    1020-A Barrow Industrial Parkway
                                    Winder, Georgia 30680
                                    Attention: Chief Financial Officer

         If to Pledgee:             Congress Financial Corporation (Southern)
                                    200 Galleria Parkway, Suite 1500
                                    Atlanta, Georgia 30339
                                    Attention: Portfolio Manager

     (d) All references to the plural herein shall also mean the singular and to
the singular shall also mean the plural. All references to Pledgor,  Pledgee and
Issuer pursuant to the definitions set forth in the recitals  hereto,  or to any
other person herein, shall include their respective  successors and assigns. The
words  "hereof,"  "herein,"  "hereunder,"  "this Pledge  Agreement" and words of
similar  import  when used in this Pledge  Agreement  shall refer to this Pledge
Agreement as a whole and not any particular  provision of this Pledge  Agreement
and as this Pledge  Agreement now exists or may hereafter be amended,  modified,
supplemented, extended, renewed, restated or replaced. An Event of Default shall
exist or  continue  or be  continuing  until  such Event of Default is waived in
accordance  with Section 7(g) hereof.  All  references  to the term  "Person" or
"Persons" herein shall mean any individual,  sole  proprietorship,  partnership,
corporation  (including,   without  limitation,  any  corporation  which  elects
subchapter  S status  under the  Internal  Revenue  Code of 1986,  as  amended),
limited liability corporation, limited liability participation,  business trust,
unincorporated  association,  joint stock company, trust, joint venture or other
entity or any government or any agency, instrumentality or political subdivision
thereof.

     (e) This Pledge  Agreement,  the other  Financing  Agreements and any other
document  referred to herein or therein  shall be binding  upon  Pledgor and its
successors and assigns and inure to the benefit of and be enforceable by Pledgee
and its successors and assigns.

                                      - 8 -
<PAGE>

     (f) If any  provision  of this  Pledge  Agreement  is held to be invalid or
unenforceable,  such  invalidity or  unenforceability  shall not invalidate this
Pledge  Agreement as a whole,  but this Pledge  Agreement  shall be construed as
though  it did not  contain  the  particular  provision  held to be  invalid  or
unenforceable  and the rights and  obligations of the parties shall be construed
and enforced only to such extent as shall be permitted by applicable law.

     (g)  Neither  this  Pledge  Agreement  nor any  provision  hereof  shall be
amended, modified, waived or discharged orally or by course of conduct, but only
by a written agreement signed by an authorized officer of Pledgee. Pledgee shall
not, by any act,  delay,  omission or otherwise  be deemed to have  expressly or
impliedly  waived any of its rights,  powers and/or  remedies unless such waiver
shall be in writing and signed by an  authorized  officer of  Pledgee.  Any such
waiver shall be enforceable only to the extent specifically set forth therein. A
waiver by Pledgee of any right,  power and/or  remedy on any one occasion  shall
not be  construed as a bar to or waiver of any such right,  power and/or  remedy
which Pledgee would  otherwise have on any future  occasion,  whether similar in
kind or otherwise.

                                      - 9 -
<PAGE>

     IN WITNESS  WHEREOF,  Pledgor has executed this Pledge  Agreement as of the
day and year first above written.

                                      DH APPAREL COMPANY, INC.

                                      By:  /s/  K. Scott Grassmyer
                                          -----------------------------
                                      Title:  Sr. Vice President & CFO

                                     - 10 -

<PAGE>

                                    EXHIBIT A
                                       TO
                          PLEDGE AND SECURITY AGREEMENT
                          -----------------------------

         Issuer               Certificate No.                 Shares
         ------               ---------------                 ------

Cargud, S.A.                                                  29,360

                                     - 11 -TRADEMARK SECURITY AGREEMENT
                          ----------------------------

     THIS  AGREEMENT  ("Agreement"),  dated May 16,  2000,  is by and between DH
APPAREL  COMPANY,  INC.,  a  Georgia  corporation  ("Debtor"),  with  its  chief
executive  office  at  1020-A  Barrow  Industrial  Parkway  30680  and  CONGRESS
FINANCIAL  CORPORATION  (Southern),  a Georgia  corporation  ("Secured  Party"),
having an office at 200 Galleria Parkway, Suite 1500, Atlanta, Georgia 30339.

                              W I T N E S S E T H :
                              ---------------------

     WHEREAS,  Debtor has  adopted,  used and is using,  and is the owner of the
entire right, title, and interest in and to the trademarks,  trade names, terms,
designs and applications  therefor described in Exhibit A hereto and made a part
hereof;

     WHEREAS,  Secured  Party and Debtor have entered or are about to enter into
financing  arrangements  pursuant  to which  Secured  Party  may make  loans and
advances and provide other  financial  accommodations  to Debtor as set forth in
the Loan and  Security  Agreement,  dated of even  date  herewith,  by and among
Secured Party, Debtor and Delta  Merchandising,  Inc. (as the same now exists or
may hereafter be amended, modified, supplemented, extended, renewed, restated or
replaced, the "Loan Agreement") and other agreements,  documents and instruments
referred  to therein or at any time  executed  and/or  delivered  in  connection
therewith or related thereto, including, but not limited to, this Agreement (all
of the foregoing, together with the Loan Agreement, as the same now exist or may
hereafter be amended,  modified,  supplemented,  extended,  renewed, restated or
replaced,  being collectively referred to herein as the "Financing Agreements");
and

     WHEREAS,  in order to induce Secured Party to enter into the Loan Agreement
and the other  Financing  Agreements  and to make loans and advances and provide
other financial  accommodations to Debtor pursuant thereto, Debtor has agreed to
grant to Secured Party certain collateral security as set forth herein;

     NOW,  THEREFORE,  in  consideration  of the premises and for other good and
valuable  consideration,  the  receipt  and  sufficiency  of  which  are  hereby
acknowledged, Debtor hereby agrees as follows:

     1. GRANT OF SECURITY INTEREST
        --------------------------

     As  collateral  security  for  the  prompt   performance,   observance  and
indefeasible payment in full of all of the Obligations (as hereinafter defined),
Debtor hereby grants to Secured  Party a continuing  security  interest in and a
general lien upon the following  (being  collectively  referred to herein as the
"Collateral"):  (a) all of Debtor's now existing or  hereafter  acquired  right,
title, and interest in and to: (i) all of Debtor's trademarks, tradenames, trade
styles and service marks

                                      - 1 -
<PAGE>

and all applications,  registrations and recordings relating to the foregoing as
may at any time be filed in the United States Patent and Trademark  Office or in
any  similar  office or agency of the  United  States,  any State  thereof,  any
political  subdivision  thereof  or in any  other  country,  including,  without
limitation, the trademarks, terms, designs and applications described in Exhibit
A hereto,  together with all rights and privileges  arising under applicable law
with respect to Debtor's  use of any  trademarks,  tradenames,  trade styles and
service marks, and all reissues,  extensions,  continuation and renewals thereof
(all  of  the   foregoing   being   collectively   referred  to  herein  as  the
"Trademarks");  and  (ii) all  prints  and  labels  on  which  such  trademarks,
tradenames,  tradestyles and service marks appear, have appeared or will appear,
and all designs and general  intangibles  of a like nature;  (b) the goodwill of
the  business  symbolized  by  each  of  the  Trademarks,   including,   without
limitation, all customer lists and other records relating to the distribution of
products or services bearing the Trademarks; (c) all income, fees, royalties and
other  payments  at any time due or payable  with  respect  thereto,  including,
without  limitation,  payments  under all  licenses at any time  entered into in
connection  therewith;  (d)  the  right  to sue for  past,  present  and  future
infringements  thereof;  (e) all rights  corresponding  thereto  throughout  the
world;  and (f) any and all other proceeds of any of the  foregoing,  including,
without  limitation,  damages  and  payments or claims by Debtor  against  third
parties for past or future infringement of the Trademarks.

     2. OBLIGATIONS SECURED
        -------------------

     The security  interest,  lien and other interests  granted to Secured Party
pursuant to this Agreement shall secure the prompt  performance,  observance and
payment in full of any and all  obligations,  liabilities  and  indebtedness  of
every kind,  nature and description  owing by Debtor to Secured Party and/or its
affiliates,  including principal,  interest,  charges, fees, costs and expenses,
however  evidenced,   whether  as  principal,  surety,  endorser,  guarantor  or
otherwise,  whether arising under this Agreement,  the Loan Agreement, the other
Financing  Agreements or otherwise,  whether now existing or hereafter  arising,
whether arising  before,  during or after the initial or any renewal term of the
Loan  Agreement  or after the  commencement  of any case with  respect to Debtor
under the United  States  Bankruptcy  Code or any  similar  statute  (including,
without limitation, the payment of interest and other amounts which would accrue
and  become  due but for the  commencement  of such  case),  whether  direct  or
indirect,  absolute or contingent,  joint or several, due or not due, primary or
secondary,  liquidated  or  unliquidated,  secured  or  unsecured,  and  however
acquired by Secured Party (all of the foregoing being  collectively  referred to
herein as the "Obligations").

     3. REPRESENTATIONS, WARRANTIES AND COVENANTS
        -----------------------------------------

     Debtor hereby represents,  warrants and covenants with and to Secured Party
the following  (all of such  representations,  warranties  and  covenants  being
continuing so long as any of the Obligations are outstanding):

     (a) Debtor shall pay and perform all of the Obligations  according to their
terms.

                                      - 2 -
<PAGE>

     (b) All of the existing  Collateral  is valid and  subsisting in full force
and effect,  and Debtor owns the sole,  full and clear  title  thereto,  and the
right and power to grant the security interest granted hereunder.  Debtor shall,
at Debtor's  expense,  perform all acts and execute all  documents  necessary to
maintain the existence of the Collateral  consisting of registered Trademarks as
registered  trademarks and to maintain the existence of all of the Collateral as
valid and subsisting,  including,  without limitation, the filing of any renewal
affidavits and applications. The Collateral is not subject to any liens, claims,
mortgages,  assignments,  licenses,  security  interests or  encumbrances of any
nature  whatsoever,  except:  (i) the security  interests  granted hereunder and
pursuant to the Loan Agreement,  (ii) the security interests permitted under the
Loan Agreement, and (iii) the licenses permitted under Section 3(e) below.

     (c) Debtor  shall not assign,  sell,  mortgage,  lease,  transfer,  pledge,
hypothecate,  grant a  security  interest  in or lien upon,  encumber,  grant an
exclusive or  non-exclusive  license  relating to the  Collateral,  or otherwise
dispose of any of the Collateral, in each case without the prior written consent
of Secured Party, except as otherwise permitted herein or in the Loan Agreement.
Nothing in this Agreement shall be deemed a consent by Secured Party to any such
action, except as such action is expressly permitted hereunder.

     (d) Debtor  shall,  at  Debtor's  expense,  promptly  perform  all acts and
execute  all  documents  requested  at any time by  Secured  Party to  evidence,
perfect,  maintain,  record or enforce the security  interest in the  Collateral
granted  hereunder or to otherwise  further the  provisions  of this  Agreement.
Debtor hereby authorizes Secured Party to execute and file one or more financing
statements (or similar documents) with respect to the Collateral, signed only by
Secured  Party or as  otherwise  determined  by Secured  Party.  Debtor  further
authorizes  Secured Party to have this  Agreement or any other similar  security
agreement  filed with the  Commissioner  of Patents and  Trademarks or any other
appropriate federal, state or government office.

     (e) As of the date hereof, Debtor does not have any Trademarks  registered,
or subject to pending  applications,  in the United  States Patent and Trademark
Office or any similar office or agency in the United States,  any State thereof,
any  political  subdivision  thereof or in any other  country,  other than those
described  in Exhibit A hereto and has not granted  any  licenses  with  respect
thereto other than as set forth in Exhibit B hereto.

     (f) Debtor  shall,  concurrently  with the  execution  and delivery of this
Agreement,  execute and deliver to Secured Party five (5) originals of a Special
Power of Attorney in the form of Exhibit C annexed hereto for the implementation
of the  assignment,  sale or other  disposition  of the  Collateral  pursuant to
Secured  Party's  exercise of the rights and remedies  granted to Secured  Party
hereunder.

     (g)  Secured  Party may,  in its  discretion,  pay any amount or do any act
which Debtor fails to pay or do as required hereunder or as requested by Secured
Party to preserve, defend, protect, maintain, record or enforce the Obligations,
the Collateral,  or the security interest granted hereunder  including,  but not
limited to, all filing or  recording  fees,  court  costs,  collection  charges,
attorneys' fees and legal expenses.  Debtor shall be liable to Secured Party for
any such

                                      - 3 -
<PAGE>

payment,  which  payment  shall be deemed an advance by Secured Party to Debtor,
shall be payable on demand together with interest at the rate then applicable to
the  Obligations  set  forth  in the  Loan  Agreement  and  shall be part of the
Obligations secured hereby.

     (h)  Debtor  shall  not  file any  application  for the  registration  of a
Trademark  with the United  States  Patent and  Trademark  Office or any similar
office or agency in the United  States,  unless  Debtor has given  Secured Party
thirty (30) days prior written notice of such action. If, after the date hereof,
Debtor shall (i) obtain any registered trademark or tradename,  or apply for any
such  registration  in the United States  Patent and Trademark  Office or in any
similar office or agency in the United States, any State thereof,  any political
subdivision  thereof or in any other  country,  or (ii)  become the owner of any
trademark  registrations or applications for trademark  registration used in the
United  States or any State  thereof,  political  subdivision  thereof or in any
other  country,  the  provisions of Section 1 hereof shall  automatically  apply
thereto.  Upon the request of Secured Party,  Debtor shall promptly  execute and
deliver  to  Secured  Party any and all  assignments,  agreements,  instruments,
documents and such other papers as may be requested by Secured Party to evidence
the security interest in such Trademark in favor of Secured Party.

     (i) Debtor has not abandoned any of the  Trademarks  and Debtor will not do
any act, nor omit to do any act,  whereby the Trademarks  may become  abandoned,
invalidated,  unenforceable,  avoided, or avoidable. Debtor shall notify Secured
Party  immediately  if it  knows or has  reason  to know of any  reason  why any
application,  registration,  or  recording  with respect to the  Trademarks  may
become abandoned, canceled, invalidated, avoided, or avoidable.

     (j) Debtor shall render any assistance, as Secured Party shall determine is
necessary,  to Secured Party in any  proceeding  before the United States Patent
and  Trademark  Office,  any federal or state  court,  or any similar  office or
agency in the  United  States,  any State  thereof,  any  political  subdivision
thereof or in any other country,  to maintain such  application and registration
of the Trademarks as Debtor's  exclusive property and to protect Secured Party's
interest therein, including, without limitation,  filing of renewals, affidavits
of  use,  affidavits  of  incontestability  and  opposition,  interference,  and
cancellation proceedings.

     (k)  To the  best  of  Debtor's  knowledge,  no  material  infringement  or
unauthorized  use  presently is being made of any of the  Trademarks  that would
adversely affect in any material respect the fair market value of the Collateral
or the benefits of this Agreement granted to Secured Party,  including,  without
limitation,  the  validity,  priority or  perfection  of the  security  interest
granted herein or the remedies of Secured Party hereunder. Debtor shall promptly
notify Secured Party if Debtor (or any affiliate or subsidiary  thereof)  learns
of any use by any person of any term or design which  infringes on any Trademark
or is likely to cause  confusion  with any  Trademark.  If  requested by Secured
Party, Debtor, at Debtor's expense, shall join with Secured Party in such action
as Secured  Party,  in Secured  Party's  discretion,  may deem advisable for the
protection of Secured Party's interest in and to the Trademarks.

     (l) Debtor assumes all responsibility and liability arising from the use of
the  Trademarks and Debtor hereby  indemnifies  and holds Secured Party harmless
from and against any claim,

                                      - 4 -
<PAGE>

suit, loss,  damage, or expense  (including  attorneys' fees and legal expenses)
arising out of any alleged defect in any product manufactured, promoted, or sold
by Debtor (or any  affiliate  or  subsidiary  thereof)  in  connection  with any
Trademark or out of the manufacture, promotion, labelling, sale or advertisement
of any such product by Debtor (or any  affiliate  or  subsidiary  thereof).  The
foregoing   indemnity  shall  survive  the  payment  of  the  Obligations,   the
termination  of this  Agreement and the  termination  or non-renewal of the Loan
Agreement.

     (m) Debtor shall  promptly pay Secured  Party for any and all  expenditures
made by Secured Party  pursuant to the  provisions of this  Agreement or for the
defense,  protection or enforcement of the Obligations,  the Collateral,  or the
security interests granted hereunder,  including, but not limited to, all filing
or recording  fees,  court  costs,  collection  charges,  travel  expenses,  and
attorneys'  fees and legal  expenses.  Such  expenditures  shall be  payable  on
demand,  together with interest at the rate then  applicable to the  Obligations
set forth in the Loan  Agreements and shall be part of the  Obligations  secured
hereby.

     4. EVENTS OF DEFAULT
        -----------------

     All Obligations shall become immediately due and payable, without notice or
demand,  at the option of Secured  Party,  upon the  occurrence  of any Event of
Default,  as such  term is  defined  in the Loan  Agreement  (each an  "Event of
Default" hereunder).

     5. RIGHTS AND REMEDIES
        -------------------

     At any time an Event of Default  exists or has occurred and is  continuing,
in addition to all other rights and remedies of Secured Party,  whether provided
under  this  Agreement,  the Loan  Agreement,  the other  Financing  Agreements,
applicable law or otherwise,  Secured Party shall have the following  rights and
remedies which may be exercised  without notice to, or consent by, Debtor except
as such notice or consent is expressly provided for hereunder:

     (a) Secured  Party may require  that  neither  Debtor nor any  affiliate or
subsidiary of Debtor make any use of the Trademarks or any marks similar thereto
for any purpose whatsoever. Secured Party may make use of any Trademarks for the
sale of goods,  completion  of  work-in-process  or  rendering  of  services  in
connection with enforcing any other security  interest  granted to Secured Party
by Debtor or any  subsidiary  or affiliate of Debtor or for such other reason as
Secured Party may determine.

     (b)  Secured  Party may grant such  license  or  licenses  relating  to the
Collateral for such term or terms, on such  conditions,  and in such manner,  as
Secured Party shall in its discretion deem appropriate. Such license or licenses
may be general,  special or  otherwise,  and may be granted on an  exclusive  or
non-exclusive  basis throughout all or any part of the United States of America,
its territories and possessions, and all foreign countries.

     (c) Secured Party may assign,  sell or otherwise  dispose of the Collateral
or any part thereof,  either with or without special  conditions or stipulations
except that if notice to Debtor of

                                      - 5 -
<PAGE>

intended  disposition  of  Collateral is required by law, the giving of five (5)
days prior written notice to Debtor of any proposed  disposition shall be deemed
reasonable  notice  thereof  and Debtor  waives any other  notice  with  respect
thereto.  Secured  Party shall have the power to buy the  Collateral or any part
thereof,  and Secured Party shall also have the power to execute  assurances and
perform  all other  acts  which  Secured  Party  may,  in its  discretion,  deem
appropriate or proper to complete such assignment,  sale, or disposition. In any
such event, Debtor shall be liable for any deficiency.

     (d) In addition to the  foregoing,  in order to implement  the  assignment,
sale,  or other  disposition  of any of the  Collateral  pursuant  to the  terms
hereof,  Secured  Party may at any time execute and deliver on behalf of Debtor,
pursuant to the authority granted in the Powers of Attorney described in Section
3(f) hereof,  one or more  instruments  of assignment of the  Trademarks (or any
application,  registration, or recording relating thereto), in form suitable for
filing, recording, or registration. Debtor agrees to pay Secured Party on demand
all costs incurred in any such transfer of the  Collateral,  including,  but not
limited to, any taxes,  fees, and  attorneys'  fees and legal  expenses.  Debtor
agrees that Secured Party has no obligation to preserve rights to the Trademarks
against any other parties.

     (e) Secured Party may first apply the proceeds  actually  received from any
such license,  assignment, sale or other disposition of any of the Collateral to
the costs and expenses thereof, including,  without limitation,  attorneys' fees
and all legal, travel and other expenses which may be incurred by Secured Party.
Thereafter,  Secured  Party  may  apply any  remaining  proceeds  to such of the
Obligations  as Secured  Party may in its  discretion  determine.  Debtor  shall
remain liable to Secured Party for any of the Obligations remaining unpaid after
the  application of such proceeds,  and Debtor shall pay Secured Party on demand
any such unpaid  amount,  together with interest at the rate then  applicable to
the Obligations set forth in the Loan Agreement.

     (f) Debtor shall supply to Secured  Party or to Secured  Party's  designee,
Debtor's  knowledge and expertise  relating to the  manufacture  and sale of the
products and services  bearing the  Trademarks  and Debtor's  customer lists and
other records relating to the Trademarks and the distribution thereof.

     (g) Nothing  contained herein shall be construed as requiring Secured Party
to take any such action at any time. All of Secured Party's rights and remedies,
whether  provided  under  this  Agreement,   the  other  Financing   Agreements,
applicable  law, or otherwise,  shall be cumulative and none is exclusive.  Such
rights  and   remedies   may  be  enforced   alternatively,   successively,   or
concurrently.

     6. JURY TRIAL WAIVER; OTHER WAIVERS AND CONSENTS; GOVERNING LAW
        ------------------------------------------------------------

     (a) The validity,  interpretation and enforcement of this Agreement and the
other  Financing  Agreements  and any dispute  arising  out of the  relationship
between the parties hereto, whether in

                                      - 6 -
<PAGE>

contract,  tort, equity or otherwise,  shall be governed by the internal laws of
the State of Georgia (without giving effect to principles of conflicts of law).

     (b)  Debtor  and  Secured  Party  irrevocably  consent  and  submit  to the
non-exclusive  jurisdiction of the Superior Court of Fulton County,  Georgia and
the United States District Court for the Northern  District of Georgia and waive
any objection  based on venue or forum non conveniens with respect to any action
instituted  therein  arising under this Agreement or any of the other  Financing
Agreements  or in any way  connected or related or incidental to the dealings of
Debtor and Secured  Party in respect of this  Agreement  or the other  Financing
Agreements or the transactions  related hereto or thereto,  in each case whether
now existing or thereafter  arising,  and whether in contract,  tort,  equity or
otherwise,  and agree that any dispute with respect to any such matters shall be
heard only in the courts  described  above (except that Secured Party shall have
the right to bring any action or  proceeding  against  Debtor or its property in
the courts of any other  jurisdiction  which  Secured  Party deems  necessary or
appropriate  in order to realize on the  Collateral or to otherwise  enforce its
rights against Debtor or its property).

     (c) Debtor  hereby waives  personal  service of any and all process upon it
and  consents  that all such  service of process may be made by  certified  mail
(return receipt requested)  directed to its address set forth herein and service
so made shall be deemed to be completed  five (5) days after the same shall have
been so deposited in the U.S. mails,  or, at Secured Party's option,  by service
upon Debtor in any other  manner  provided  under the rules of any such  courts.
Within  thirty (30) days after such  service,  Debtor  shall appear in answer to
such  process,  failing which Debtor shall be deemed in default and judgment may
be entered by Secured Party against Debtor for the amount of the claim and other
relief requested.

     (d) DEBTOR AND SECURED  PARTY EACH HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY
OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (i) ARISING UNDER THIS AGREEMENT
OR ANY OF THE OTHER  FINANCING  AGREEMENTS OR (ii) IN ANY WAY CONNECTED  WITH OR
RELATED OR  INCIDENTAL TO THE DEALINGS OF DEBTOR AND SECURED PARTY IN RESPECT OF
THIS  AGREEMENT OR ANY OF THE OTHER  FINANCING  AGREEMENTS  OR THE  TRANSACTIONS
RELATED HERETO OR THERETO IN EACH CASE WHETHER NO EXISTING OR HEREAFTER ARISING,
AND WHETHER IN CONTRACT,  TORT,  EQUITY OR  OTHERWISE.  DEBTOR AND SECURED PARTY
EACH HEREBY AGREES AN CONSENTS THAT ANY SUCH CLAIM,  DEMAND,  ACTION OR CAUSE OF
ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT DEBTOR OR SECURED
PARTY MAY FILE AN  ORIGINAL  COUNTERPART  OF A COPY OF THIS  AGREEMENT  WITH ANY
COURT AS WRITTEN  EVIDENCE  OF THE  CONSENT OF DEBTOR AND  SECURED  PARTY TO THE
WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

     (e) Secured Party shall not have any liability to Debtor  (whether in tort,
contract, equity or otherwise) for losses suffered by Debtor in connection with,
arising  out of, or in any way  related  to the  transactions  or  relationships
contemplated by this Agreement, or any act, omission or event

                                      - 7 -
<PAGE>

occurring  in  connection  herewith,  unless  it is  determined  by a final  and
non-appealable  judgment or court order binding on Secured Party that the losses
were the result of acts or omissions  constituting  gross  negligence or willful
misconduct.  In any such  litigation,  Secured  Party  shall be  entitled to the
benefit of the rebuttable  presumption  that it acted in good faith and with the
exercise  of  ordinary  care  in the  performance  by it of the  terms  of  this
Agreement and the other Financing Agreements.

     7. MISCELLANEOUS
        -------------

     (a) All  notices,  requests and demands  hereunder  shall be in writing and
deemed to have been given or made:  if  delivered  in person,  immediately  upon
delivery;  if by telex,  telegram or facsimile  transmission,  immediately  upon
sending and upon confirmation of receipt; if by nationally  recognized overnight
courier  service with  instructions  to deliver the next  business  day, one (1)
business day after sending;  and if by certified mail, return receipt requested,
five (5) days after mailing. All notices,  requests and demands upon the parties
are to be given to the  following  addresses  (or to such  other  address as any
party may designate by notice in accordance with this Section):

        If to Debtor:            DH Apparel Company, Inc.
                                 1020-A Barrow Industrial Parkway
                                 Winder, Georgia 30680
                                 Attention: Chief Financial Officer

        If to Secured            Congress Financial Corporation (Southern)
        Party:                   200 Galleria Parkway
                                 Suite 1500
                                 Atlanta, Georgia 30339
                                 Attention: Portfolio Manager

     (b) All references to the plural herein shall also mean the singular and to
the singular  shall also mean the plural.  All  references to Debtor and Secured
Party pursuant to the  definitions set forth in the recitals  hereto,  or to any
other person herein, shall include their respective  successors and assigns. The
words "hereof,"  "herein,"  "hereunder,"  "this  Agreement" and words of similar
import when used in this Agreement  shall refer to this Agreement as a whole and
not any particular  provision of this Agreement and as this Agreement now exists
or may hereafter be amended, modified, supplemented, extended, renewed, restated
or replaced.  An Event of Default shall exist or continue or be continuing until
such Event of Default is waived in  accordance  with Section  7(e)  hereof.  All
references  to the term "Person" or "person"  herein shall mean any  individual,
sole proprietorship,  partnership,  corporation (including,  without limitation,
any corporation which elects subchapter S status under the Internal Revenue Code
of 1986, as amended),  limited liability company, limited liability partnership,
business trust,  unincorporated  association,  joint stock company, trust, joint
venture or other entity or any  government or any agency or  instrumentality  or
political subdivision thereof.

                                      - 8 -
<PAGE>

     (c) This Agreement,  the other Financing  Agreements and any other document
referred to herein or therein  shall be binding  upon Debtor and its  successors
and assigns and inure to the benefit of and be  enforceable by Secured Party and
its successors and assigns.

     (d)  If  any  provision  of  this  Agreement  is  held  to  be  invalid  or
unenforceable,  such  invalidity or  unenforceability  shall not invalidate this
Agreement as a whole, but this Agreement shall be construed as though it did not
contain the  particular  provision held to be invalid or  unenforceable  and the
rights and  obligations  of the parties  shall be construed and enforced only to
such extent as shall be permitted by applicable law.

     (e) Neither  this  Agreement  nor any  provision  hereof  shall be amended,
modified,  waived or  discharged  orally or by course of conduct,  but only by a
written  agreement  signed by an authorized  officer of Secured  Party.  Secured
Party shall not, by any act,  delay,  omission  or  otherwise  be deemed to have
expressly or impliedly  waived any of its rights,  powers and/or remedies unless
such waiver shall be in writing and signed by an  authorized  officer of Secured
Party. Any such waiver shall be enforceable only to the extent  specifically set
forth  therein.  A waiver by Secured Party of any right,  power and/or remedy on
any one occasion shall not be construed as a bar to or waiver of any such right,
power  and/or  remedy which  Secured  Party would  otherwise  have on any future
occasion, whether similar in kind or otherwise.

                                      - 9 -
<PAGE>

     IN WITNESS  WHEREOF,  Debtor and Secured Party have executed this Agreement
as of the day and year first above written.

                      DH APPAREL COMPANY, INC.

                      By:  /s/ K. Scott Grassmyer
                           -------------------------------
                      Title: Sr. Vice President and CFO

                      CONGRESS FINANCIAL CORPORATION
                       (SOUTHERN)

                      By:   /s/ Daniel Cott
                           --------------------------------
                      Title:  Executive Vice President

                                     - 10 -
<PAGE>

STATE OF NEW YORK                           )
                                            )  ss.:
COUNTY OF NEW YORK                          )

     On  this  16th  day of May,  2000,  before  me  personally  came  K.  Scott
Grassmyer, to me known, who being duly sworn, did depose and say, that he/she is
the Sr. Vice  President and CFO of DH APPAREL  COMPANY,  INC.,  the  corporation
described in and which executed the foregoing instrument; and that he/she signed
his/her name thereto by order of the Board of Directors of said corporation.

                                        /s/ Cathleen A. Pellegrino
                                            -----------------------------------
                                                   Notary Public

STATE OF NEW YORK                           )
                                            )  ss.:
COUNTY OF NEW YORK                          )

     On this 16th day of May, 2000, before me personally came Daniel Cott, to me
known,  who, being duly sworn,  did depose and say, that he/she is the Executive
Vice President of CONGRESS  FINANCIAL  CORPORATION  (SOUTHERN),  the corporation
described in and which executed the foregoing instrument; and that he/she signed
his/her name thereto by order of the Board of Directors of said corporation.

                                             /s/ Cathleen A. Pellegrino
                                             --------------------------------
                                             Notary Public

                                     - 11 -
<PAGE>
<TABLE>
<CAPTION>

                                    EXHIBIT A
                                       TO
                          TRADEMARK SECURITY AGREEMENT
                          ----------------------------

                                      Registration                 Registration                 Expiration
          Trademark                      Number                        Date                        Date
          ---------                      ------                        ----

<S>                            <C>                          <C>

------------------------------ ---------------------------- --------------------------- ----------------------------

------------------------------ ---------------------------- --------------------------- ----------------------------

------------------------------ ---------------------------- --------------------------- ----------------------------

------------------------------ ---------------------------- --------------------------- ----------------------------

</TABLE>
<TABLE>
<CAPTION>

                  LIST OF TRADEMARKS AND TRADEMARK APPLICATIONS
                  ---------------------------------------------

               Trademark                          Application/Serial                       Application
              Application                              Number                                 Date
              -----------                              ------                                 ----

<S>                                      <C>                                   <C>

---------------------------------------- ------------------------------------- -------------------------------------

---------------------------------------- ------------------------------------- -------------------------------------

---------------------------------------- ------------------------------------- -------------------------------------

---------------------------------------- ------------------------------------- -------------------------------------

</TABLE>

<PAGE>

                                    EXHIBIT B
                                       TO
                          TRADEMARK SECURITY AGREEMENT
                          ----------------------------

                                LIST OF LICENSES
                                ----------------

                                      B- 1
<PAGE>

                                    EXHIBIT C
                                       TO
                          TRADEMARK SECURITY AGREEMENT
                          ----------------------------

                            SPECIAL POWER OF ATTORNEY
                            -------------------------

STATE OF NEW YORK                           )
                                            )  ss.:
COUNTY OF NEW YORK                          )

     KNOW ALL MEN BY THESE PRESENTS,  that DH APPAREL COMPANY,  INC. ("Debtor"),
having an office at 1020-A  Barrow  Industrial  Parkway  Winder,  Georgia  30680
hereby  appoints and  constitutes,  severally,  CONGRESS  FINANCIAL  CORPORATION
(SOUTHERN)  ("Secured  Party"),  and each of its  officers,  its true and lawful
attorney,  with full power of substitution  and with full power and authority to
perform the following acts on behalf of Debtor:

     1. Execution and delivery of any and all agreements,  documents, instrument
of assignment,  or other papers which Secured Party,  in its  discretion,  deems
necessary  or  advisable  for the purpose of  assigning,  selling,  or otherwise
disposing of all right,  title,  and interest of Debtor in and to any trademarks
and all registrations,  recordings,  reissues, extensions, and renewals thereof,
or for the purpose of recording, registering and filing of, or accomplishing any
other formality with respect to the foregoing.

     2.   Execution  and  delivery  of  any  and  all   documents,   statements,
certificates  or other papers which  Secured  Party,  in its  discretion,  deems
necessary  or advisable to further the  purposes  described  in  Subparagraph  1
hereof.

     This Power of Attorney is made pursuant to a Trademark Security  Agreement,
dated of even date  herewith,  between  Debtor and Secured Party (the  "Security
Agreement")  and is subject to the terms and provisions  thereof.  This Power of
Attorney,   being   coupled  with  an  interest,   is   irrevocable   until  all
"Obligations",  as such term is defined in the Security  Agreement,  are paid in
full and the Security Agreement is terminated in writing by Secured Party.

Dated: May 16, 2000

                                       DH APPAREL COMPANY, INC.

                                       By:  /s/ K. Scott Grassmyer
                                           -----------------------------
                                       Title: Sr. Vice President & CFO

                                      C- 1

<PAGE>

STATE OF NEW YORK                           )
                                            )  ss.:
COUNTY OF NEW YORK                          )

     On this 16th day of May 2000, before me personally came K. Scott Grassmyer,
to me known,  who being duly sworn,  did depose and say,  that he/she is the Sr.
Vice President & CFO of DH APPAREL COMPANY,  INC., the corporation  described in
and which executed the foregoing instrument; and that he/she signed his/her name
thereto by order of the Board of Directors of said corporation.

                                        /s/ Cathleen A. Pellegrino
                                        -----------------------------------
                                                    Notary Public

                                      C- 2

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