Document:

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                                                                    Exhibit 10.8

                                 EXECUTION COPY

                    SEPARATION AGREEMENT AND GENERAL RELEASE

This Separation Agreement ("Agreement") is entered into by and between Stephen
L. Green ("Employee") and Insurance Auto Auctions, Inc. (the "Company") to set
forth the terms, conditions, and obligations of each party with respect to the
termination of the employment relationship between Employee and the Company.

Whereas, the parties acknowledge that the Company has requested that the
Employee terminate his employment relationship with the Company;

Whereas, the parties mutually agree that their joint interest would be furthered
by an amicable separation;

Now therefore, for good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the parties agree as follows:

1.   Termination of Employment. Termination of the employment relationship
     between Employee and the Company shall be effective as of March 9, 2001
     (the "Termination Date"). Employee's duties as an officer, director and
     employee of the Company and any of its subsidiaries shall end effective as
     of the Termination Date.

2.   Consideration. As consideration for Employee's entering into this
     Agreement, the Company agrees:

     a)   Employee shall receive from the Company a lump sum cash payment equal
          to the sum of (i), (ii) and (iii) below, payable on the next regular
          payday following expiration of the revocation period described in
          paragraph 11 below:

          (i)   52 weeks of pay, computed at the Employee's regular weekly base
                salary in effect on the Termination Date (such gross amount
                equal to $150,000);

          (ii)  a bonus payment equal to 38% of Employee's annual base salary
                (such gross amount equal to $57,000);

          (iii) an aggregate automobile allowance equal to $17,700; and

     b)   (i)   From the Termination Date until the last day of March 2002 (the
                end of the final month covered by your severance pay (the
                "Severance Period")), the Company shall continue to provide
                life, medical, dental and long-term disability benefits (the
                "Company Plans") as previously selected by Employee, for
                Employee and such of Employee's dependents for whom the Company
                provided such benefits on the Termination Date; provided
                Employee shall be responsible for the Employee's share of the
                cost of coverage and benefits on the same basis as prior to the
                Termination Date.

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                Such benefits will be continued only to the extent permissible
                under the terms of such Company Plans. Notwithstanding anything
                contained in this paragraph b(i) to the contrary, with respect
                to long-term disability, the Employee must timely apply for
                conversion insurance and benefits payable thereunder shall not
                exceed a maximum monthly benefit of $3,000.

          (ii)  If any of the Company Plans do not permit continued
                participation by the Employee and the Employee's family after
                termination of employment, then, during the Severance Period,
                the Company will reimburse the Employee for the cost of
                obtaining comparable coverage from a third-party insurer,
                provided, however, that the amount of such reimbursement will
                not exceed the amount that would have been paid by the Company
                for coverage under the Company Plans during the Severance period
                had the Employee's employment not been terminated.

                If during the Severance Period, and subject to paragraph (iii)
                below, the Employee is reemployed by another employer, the
                rights of the Employee and the Employee's family to receive
                benefits under any Company Plan, or reimbursement for any
                third-party coverage, will terminate on the date the Employee
                and Employee's family become eligible to receive comparable
                benefits from such employer.

          (iii) If, at the termination of the Severance Period, the Employee is
                receiving medical and/or dental benefits from a Company Plan,
                the Company will continue to provide such medical and/or dental
                benefits to the Employee and/or the Employee's family pursuant
                to COBRA. For such purpose, the termination of the Severance
                Period will be considered the date of the "qualifying event" as
                such term is defined by COBRA and the cost of continued coverage
                during the COBRA period will be determined pursuant to COBRA and
                paid entirely by the Employee.

          (iv)  If the Company's Plans do not provide for continued medical
                and/or dental benefit coverage during the Severance Period, then
                the Termination Date will be considered the date of the
                qualifying event for COBRA purposes. In such case, the Employee
                may either elect to continue such coverage pursuant to COBRA or
                obtain comparable third-party coverage as described in Section
                2(b)(ii). If the Employee elects COBRA coverage, then during the
                Severance Period, the Employee will be charged only the amount
                that such Employee would have paid for such coverage had such
                Employee remained employed by the Company (the "Employee
                Premium") (and the Company paying the remainder), and after the
                end of such Severance Period and for the remainder of the COBRA
                period, the cost of such coverage will be determined pursuant to
                COBRA and paid entirely by the Employee. If the Employee directs
                the Company not to deduct the entire amount of Employee Premium
                for the Severance Period from the lump sum paid under Section
                2(a), the Employee shall be

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                responsible for mailing the Employee Premium to the Company by
                the first day of every month during the Severance Period.

          (v)   The Employee's active participation in all other employee
                benefits plans and programs maintained by the Employer,
                including the Insurance Auto Auctions, Inc. 401(k) Plan and the
                Insurance Auto Auctions, Inc. Employee Stock Purchase Plan,
                shall be determined in accordance with the terms of such plans
                and programs.

     c)   All outstanding stock options granted to Employee as set forth on
          Attachment A hereto shall become 100% vested and exercisable on the
          day after the expiration of the revocation period described in Section
          11 below. Such vested stock options will continue to be exercisable
          until the earlier of such stock options expiration date or June 9,
          2002. Stock options not exercised by June 9, 2002 shall expire and be
          of no further force or effect. The options shall continue to be
          governed by the terms and conditions of their respective Notices of
          Grant of Stock Option and Stock Option Agreements, as amended by this
          subsection 2(c).

     d)   Employee shall receive accrued but unused vacation pay through the
          Termination Date, to be paid on or before the Company's next regularly
          scheduled pay date following the Termination Date.

     e)   The Company shall provide Employee with outplacement benefits from
          Drake Beam Morin (Executive Program) consistent with those benefits
          offered other Company executives terminated in March 2001.

     f)   Amounts paid to Employee pursuant to this Section 2 shall be subject
          to applicable withholding taxes as may be required pursuant to
          federal, state or local law, or by agreement with or consent of
          Employee.

3.   Confidentiality. Employee remains bound by all terms and conditions of the
     Confidentiality Agreement dated as of February 3, 1997 and attached hereto
     as Attachment B. Employee also agrees that except as may be specifically
     required by law, Employee will not in any manner disclose or communicate
     any part of this Agreement to any other person except Employee's current
     spouse, Employee's accountant or financial advisor to the limited extent
     needed for that person to prepare Employee's tax returns, Employee's
     attorney or an outplacement firm hired by Employee or the Company. Before
     any such authorized disclosure, Employee will inform each such person to
     whom disclosure is to be made that every term of this Agreement is
     confidential and obtain such person's agreement to maintain the
     confidentiality of the entire Agreement.

4.   Return of Company Property. By signing this Agreement, Employee affirms
     that he has returned to the Company all of its property that was or is in
     his possession, custody or control, including but not limited to all keys,
     company credit cards, access cards, equipment, computers, hardware,
     software, programs diskettes, data, notes, papers, books, files, documents,
     records, policies, client and customer information and lists, marketing
     information, design information, pricing information, blueprints,
     specifications

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     plans, data base information, mailing lists, and any other property or
     information that Employee had relating to the Company and/or its customers,
     employees, plans, strategies, inventions, policies, or practices (whether
     those materials are in paper or computer-stored form). Employee affirms
     that he has not retained any such property or information in any form, and
     that he will not give copies of such property or information or disclose
     their contents to any other person. Notwithstanding the above, Employee
     shall be allowed to retain the Palm Pilot organizer (Palm VII) he was using
     while employed by the Company.

5.   Expenses. Employee shall be reimbursed for his business expenses incurred
     prior to the Termination Date in accordance with the Company's expense
     reimbursement policies.

6.   Employees. For a period commencing on the date hereof and terminating at
     the end of the Severance Period (the "Restricted Period"), Employee shall
     not, directly or indirectly, (i) solicit for employment and/or hire or
     offer employment to any individual who is then currently employed by the
     Company, or (ii) encourage any such individual to terminate his or her
     relationship with the Company or its subsidiaries.

7.   Omitted.

8.   Release of Claims And Agreement Not To Sue. As consideration for the
     obligations undertaken by the Company pursuant to this Agreement, Employee,
     for himself, his executors, administrators, heirs and assigns (the
     "Employee Released Parties"), hereby fully releases, waives and fully
     discharges the Company Released Parties (defined to include the Company,
     its subsidiaries and affiliates, predecessors, successors, and assigns, and
     their respective officers, directors, agents and employees, whether past,
     present or future) from any and all claims, causes of action, suits,
     demands, damages, judgements or liabilities, of any nature, including
     attorney's fees and costs, known or unknown, absolute or contingent,
     arising from or relating to Employee's employment or separation from
     employment. The Company Released Parties, as consideration for the
     obligations undertaken by Employee pursuant to this Agreement, hereby fully
     release, waive and fully discharge the Employee Released Parties from any
     and all claims, causes of action, suits, demands, damages, judgements or
     liabilities, of any nature, including attorney's fees and costs, known or
     unknown, absolute or contingent, arising from or relating to Employee's
     employment or separation from employment. The Employee's release includes,
     without limitation, any and all claims for breach of contract (including
     the Change in Control and Employment Agreement between the Company and
     Employee dated February 23, 1998), wrongful discharge or impairment of
     economic opportunity, any claims under common law or at equity, claims of
     defamation or intentional infliction of emotional harm, claims of any tort,
     claims for reimbursements or commissions, and any and all rights and
     discrimination claims Employee may have arising under the Age
     Discrimination in Employment Act, Title VII of the Civil Rights Act of
     1964, the Americans with Disabilities Act, and any and all other federal,
     state or local laws or regulations. Employee Released Parties and Company
     Released Parties agree not to sue or to file any claims or actions against
     the other with respect to claims covered by the aforementioned mutual
     releases and affirm that no such claims or actions are currently pending.
     Notwithstanding the above, the Employee's waiver and release shall not
     apply

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     to claims for indemnification pursuant to Article 7 of the Company's
     Articles of Incorporation, Article 5 of the Company's Bylaws and that
     certain Indemnification Agreement between Employee and the Company dated
     February 24, 1999. Nothing herein shall preclude Employee from seeking
     benefits under any Company directors and officers or liability insurance
     policy, subject in each case to the specific terms of the policy.

9.   No Disparagement or Encouragement.

     a)   Until March 9, 2004, Employee agrees not to do anything, and not to
          make any oral, electronic or written statement to any person
          (including without limitation any employee, client, customer,
          supplier, vendor of the Company or the press), that disparages or
          places in a false or negative light the Company or any of its past or
          present officers, employees, business, products, services or its
          relationships; provided, however, that nothing herein shall limit or
          prohibit Employee from cooperating in any truthful manner with any
          governmental authority or agency or responding truthfully under oath
          in a legal proceeding. Employee will not encourage any person to file
          a lawsuit, charge, claim, or complaint against any of the Company
          Released Parties. Employee will not assist any person who has filed a
          lawsuit, charge, claim, or complaint against any of the Company
          Released Parties unless Employee is required to render such assistance
          pursuant to a lawful subpoena or other legal obligation. If Employee
          is served with any such legal subpoena or becomes subject to any such
          legal obligation, Employee will provide prompt written notice to the
          General Counsel of the Company in which Employee shall enclose a copy
          of the subpoena and any other documents describing the legal
          obligation.

     b)   Until March 9, 2004, Company agrees not to do anything, and not to
          make any oral, electronic or written statement to any person
          (including without limitation the press), that disparages or places in
          a false or negative light the Employee; provided, however, that
          nothing herein shall limit or prohibit Company from cooperating in any
          truthful manner with any governmental authority or agency or
          responding truthfully under oath in a legal proceeding. Company will
          not encourage any person to file a lawsuit, charge, claim, or
          complaint against the Employee Released Parties. Company will not
          assist any person who has filed a lawsuit, charge, claim, or complaint
          against Employee Released Parties unless the Company is required to
          render such assistance pursuant to a lawful subpoena or becomes
          subject to any such legal obligation. If the Company is served with
          any such legal subpoena or becomes subject to any such legal
          obligation, the Company will provide prompt written notice to the
          Employee in which the Company shall enclose a copy of the subpoena and
          any other documents describing the legal obligation.

10.  No Reinstatement or Reemployment. Employee agrees not to apply for
     employment or otherwise seek to be hired, rehired, employed, reemployed, or
     reinstated by the Company, its affiliates and subsidiaries.

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11.  Revocation Period. Employee has the right to revoke this Agreement for up
     to seven (7) days after Employee signs it. In order to revoke this
     Agreement, Employee must sign and send a written notice of the decision to
     do so, addressed to Chief Executive Officer, Insurance Auto Auctions, 850
     East Algonquin Road, Suite 100, Schaumburg, IL 60173, and that written
     notice must be received by Employer no later than the eighth day after
     Employee signs this Agreement. If Employee revokes this Agreement, the
     Employee will not be entitled to any of the consideration from the Company
     described in Sections 2(a), 2(b), 2(c) and 2(e) above.

12.  No Admission. This Agreement does not constitute an admission by any of the
     parties, and the parties specifically deny that any action or failure to
     act by any of the parties was wrongful, unlawful, or susceptible of causing
     any damages or injury to the other party.

13.  Severability. The Employee acknowledges and agrees that the Restrictive
     Covenant (as defined below) are reasonable, necessary and valid in duration
     and geographical scope and in all other respects. If any court determines
     that any of the Restrictive Covenant, or any part thereof, is invalid or
     unenforceable, the remainder of the Restrictive Covenant shall not be
     affected thereby and shall be given full effect without regard to the
     invalid portions. Provided, however, that if Employee brings a lawsuit,
     claim, charge, or complaint against the Company, and a court of competent
     jurisdiction finds that a release or waiver of claims or rights by Employee
     in Section 8 above is illegal, void or unenforceable, Employee agrees that
     upon request by the Company, Employee will promptly sign a release or
     waiver that is legal and enforceable, provided such release or waiver is
     approved by such Employee's legal counsel.

14.  Rights and Remedies Upon Breach. If the Employee breaches, or threatens to
     commit a breach of, any of the covenants set forth in Section 6 of this
     Agreement (the "Restrictive Covenant"), the Company shall have the right
     and remedy to have the Restrictive Covenant specifically enforced by any
     court of competent jurisdiction, including immediate temporary injunctive
     relief without bond and without the necessity of showing actual monetary
     damages, it being agreed that any breach or threatened breach of the
     Restrictive Covenant would cause irreparable injury to the Company and that
     money damages would not provide an adequate remedy to the Company, which
     right and remedy is in addition to, and not in lieu of, any other rights
     and remedies available to the Company under law or in equity. The
     Restricted Period shall be extended by any period that the Employee is in
     breach of the Restrictive Covenant, unless such breach is not willful and
     does not materially damage the Company.

15.  Agreement Inadmissible as Evidence. This Agreement, its execution, and its
     implementation may not be used as evidence, and shall not be admissible in
     any proceeding except one claiming a violation of this Agreement.

16.  Entire Agreement. This Agreement sets forth the full understanding and
     agreement of the parties and supersedes any and all other understandings or
     agreements, written or oral; provided, however, that Employee shall
     continue to be bound by the Confidentiality Agreement described in Section
     3 and provided further the Company remains bound by the Indemnification
     Agreement provided in Section 8.

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17.  Governing Law and Jurisdiction. This Agreement shall be governed by and
     construed in accordance with laws and judicial decisions of the State of
     Illinois, without regard to its principles of conflicts of laws.

18.  Knowing and Voluntary Waiver. Employee specifically agrees as follows:

     a)   Employee is knowingly and voluntarily entering into this Agreement;

     b)   Employee acknowledges that the Company is providing benefits in the
          form of payments and compensation, to which Employee would not
          otherwise be entitled, as part of the consideration for Employee's
          entering into this Agreement;

     c)   Employee acknowledges receiving from the Company the informational
          disclosures attached to this Agreement as Exhibit A at the same time
          Employee received this Agreement;

     d)   Employee is hereby advised by the Company to consult with an attorney
          before signing this Agreement;

     e)   Employee understands that he has a period of forty-five (45) days from
          the date a copy of this Agreement is provided to Employee in which to
          consider and sign the Agreement (during which the offer will remain
          open), and that the Employee has an additional seven (7) days after
          signing this Agreement within which to revoke acceptance of the
          Agreement; and,

     f)   If during the seven (7) day revocation period Employee should revoke
          acceptance of the Agreement, then this Agreement shall be void.

19.  Counterparts. This Agreement may be executed in counterparts, each of which
     shall be deemed to be an original, but all of which together shall
     constitute one and the same instrument.

INSURANCE AUTO AUCTIONS, INC.                       STEPHEN L. GREEN

By: /s/ Thomas O'Brien                              /s/ Stephen L. Green
   -----------------------------------              ----------------------------

Its:
    ----------------------------------              Dated: April 12, 2001
                                                          ----------------------
Dated:
      --------------------------------

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                                  Attachment A
                            Stock Options of Employee

      Number             Grant Date            Number             Exercise Price
      ------             ----------            ------             --------------

      IA0304               2/25/97              5,000                 $ 8.50
      IA0320               1/2/98              12,500                 $11.688
      IA0447              12/15/98             10,000                 $11.125
      IA0448              12/15/98             15,000                 $11.125

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                                    Exhibit A

                            INFORMATIONAL DISCLOSURES

     The following disclosures are intended to inform you about which job
positions at Insurance Auto Auctions, Inc. were selected to participate in the
employment termination program, which job positions were not selected to
participate in the employment termination program, and the ages of the employees
holding those positions. You are being given this information to assist you in
making an informed decision about signing the accompanying Separation Agreement
and General Release.

     You have 45 days from the date of receiving these disclosures to sign the
Separation Agreement and General Release, if you so chose. If you sign the
Agreement, you have 7 days from the date of signature to revoke the Agreement.
If you revoke, you will not be entitled to any consideration under the
Agreement.

     The following employees were selected to participate in the employment
termination program:

TITLE                                                        AGE(S)
-----                                                        ------
Vice President, Chief Financial Officer and Assistant         45
Secretary
Vice President, General Counsel and Secretary                 43

     The following employees were not selected to participate in the employment
termination program:

TITLE                                                        AGE(S)
-----                                                        ------
Vice President, Eastern Division                              42
Vice President, Industry and Customer Relations               52
Vice-President, Western Division                              41
Vice-President, Business Development                          38
Senior Vice-President, Sales & Marketing                      52
Vice-President, Information Technology & CIO                  42
Vice-President, Public Affairs                                49<PAGE>   1
                                                                    EXHIBIT 10.1

                               RUSSELL CORPORATION
                               SEVERANCE PAY PLAN
                                 FOR GRADES 1-18

                            Effective January 1, 2001

                                    SECTION 1

                                  Introduction

         1.1      Purpose. Russell Corporation (the "Company") has established
the Russell Corporation Severance Pay Plan for employees in Salary Grades 1-18
(the "Plan") to enable the Company to provide severance benefits to eligible
employees who are in Salary Grades 1-18 and who voluntarily terminate employment
with the Company at the Company's request or whose employment with the Company
is involuntarily terminated other than for proper cause (as defined below). The
Plan supersedes all corporate plans, policies or practices regarding severance
allowances and pay in lieu of notice upon termination, with respect to employees
eligible to participate under the Plan. Severance benefits for eligible
employees shall be determined exclusively under the Plan. It is the intent of
the Company that the Plan, as set forth herein, constitute an "employee welfare
benefit Plan" within the meaning of Section 3(1) of the Employee Retirement
Income Act of 1974 ("ERISA") and comply with the applicable requirements of
ERISA.

         1.2      Effective Date, Plan Year. The Plan was established as of
January 1, 2001. The "effective date" of the Plan is January 1, 2001. A "plan
year" is the 12-month period beginning on January 1st and ending on the
following December 31st.

         1.3      Administration. The Plan is administered by the Company. The
Company, from time to time, may adopt such rules and regulations as may be
necessary or desirable for the proper and efficient administration of the Plan
provided such rules and regulations are consistent with the terms of the Plan.
The Company, from time to time, may also appoint such individuals to act as the
Company's representatives as the Company considers necessary or desirable for
the effective administration of the Plan. In administering the Plan, the Company
shall have the discretionary authority to construe and interpret the provisions
of the Plan and make factual determinations thereunder, including the authority
to determine the eligibility of employees and the amount of benefits payable
under the Plan. Any notice or document required to be given or filed with the
Company will be deemed properly given or filed if delivered or mailed, by
registered mail, postage prepaid, to the Company at 3330 Cumberland Blvd., Suite
800, Atlanta, Georgia 30339, attention: Senior Vice President, Human Resources.

         1.4      Plan Supplements. The provisions of the Plan may be modified
by supplements to the Plan. The terms and provisions of each supplement shall be
a part of the Plan and shall supersede any inconsistent provisions of the Plan
to the extent necessary to eliminate such inconsistencies.

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                                    SECTION 2

                          Eligibility for Participation

         Subject to the conditions and limitations of any applicable supplement
to the Plan, each exempt and non-exempt salaried employee employed by the
Company shall become a participant in the Plan on his date of hire; provided,
however, that any employee who is covered under an employment contract or who is
in Salary Grade 19 or above shall not be eligible to participate in the Plan.

                                    SECTION 3

                                  Plan Benefits

         3.1      Eligibility for Benefits. Subject to the conditions and
limitations of the Plan and any applicable supplement, a participant who
involuntarily leaves the employ of the Company for a reason other than for
proper cause (as defined below) and who executes a proper release provided by
the Company will be entitled to receive a benefit as determined by the Company
in its sole discretion using the Schedule of Benefits attached hereto, as may be
amended by the Company from time to time, as a guideline; provided, however:

                  (a)      Any participant who, at the time of his termination,
                           is eligible to receive any form of disability or
                           workers' compensation insurance or salary
                           continuation because of disability shall not be
                           entitled to receive any benefit under the Plan.

                  (b)      If a participant whose employment is terminated was
                           offered employment in a suitable position at any
                           facility or place of business of the Company, he
                           shall not be eligible to receive any benefits under
                           the Plan. The Company shall have sole discretion to
                           determine whether the position offered constitutes a
                           "suitable position" for purposes of this paragraph.

                  (c)      A participant whose employment with the Company is
                           terminated in conjunction with the sale or transfer
                           (whether of stock or assets) of all or any part of
                           the Company who is offered a suitable position with
                           the acquiror of the part or all of the Company sold
                           or transferred shall not be eligible to receive
                           benefits under the Plan. The Company shall have sole
                           discretion to determine whether the position offered
                           constitutes a "suitable position" for purposes of
                           this paragraph.

The Company has established guidelines (attached as Exhibit A) to be used by the
Company in determining the amount of severance pay benefits provided to its
employees who are participants in the Plan. The guidelines are suggestions only
and are not restrictions on the Company's ability to determine the severance
amount at its complete discretion. In no event shall any participant's severance
pay benefit exceed an amount equal to twelve (12) months of the participant's
base pay. For purposes of this Plan, a termination for "proper cause" shall
include

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(but shall not be limited to) termination for any willful or grossly negligent
breach of the participant's duties as an employee of the Company and termination
for fraud, embezzlement or any other similar dishonest conduct, violation of the
Company's rules of conduct or unsatisfactory performance.

         3.2      Certain Repayments and Forfeitures. Notwithstanding any other
provision of the Plan, any participant who accepts benefits under the Plan shall
reimburse the Company for the full amount of any benefits he received under the
Plan if the participant subsequently discloses any of the Company's trade
secrets, violates any written covenants between such participant and the
Company, or otherwise engages in conduct that may adversely affect the Company's
reputation or business relations. In addition, any participant described in the
preceding sentence shall forfeit any right to benefits under the Plan which have
not yet been paid. To the extent required by the terms of any agreement between
the Company and a third party concerning the sale or transfer of all or any
portion of the Company to such third party, any participant whose employment is
involuntarily terminated in conjunction with such sale and who becomes a direct
competitor of such third party or is employed by a direct competitor of such
third party shall forfeit any right to any additional benefits under the Plan
which have not yet been paid.

         3.3      Offset for Other Benefits. The amount of any benefits payable
to a participant under the Plan shall be reduced on a dollar-for-dollar basis by
any disability, severance, separation or termination pay benefits that the
Company pays or is required to pay to such participant through insurance or
otherwise under any plan or contract of the Company or under any federal or
state law.

                                    SECTION 4

                               Payment of Benefits

         4.1      Release Agreement. No benefits under the Plan shall be payable
to any participant until such participant and the Company have executed a
release (in a form approved by the Company) of all of such participant's then
existing rights and legal claims against the Company and the Company and the
payment of benefits under the Plan shall be subject to the terms and conditions
of such release agreement. The terms and conditions of a participant's release
agreement with respect to the payment of severance benefits are incorporated by
this reference and form a part of the Plan as applied to such participant.

         4.2      Form of Payment. Benefits shall be paid in equal installments
according to the Company's normal payroll schedule; provided, that all benefit
payments to a participant must be completed within twelve (12) months following
the date on which the participant's employment terminates. In the event of a
participant's death before he receives all benefits to which he otherwise would
be entitled under the Plan, payment of his benefits shall be made to his
beneficiary in installments or a lump sum, as determined by the Company.

         4.3      Designation of Beneficiary. By signing a form furnished by the
Company, each participant may designate any person or persons to whom his
benefits are to be paid if he dies before he receives all of his benefits. A
beneficiary designation form will be effective only when

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the form is filed with the Company while the participant is still alive and will
cancel all beneficiary designation forms previously filed by the participant
with the Company with respect to this Plan. If a deceased participant has failed
to designate a beneficiary as provided above, or if the designated beneficiary
predeceases the participant, payment of the participant's benefits shall be made
to his estate. If a designated beneficiary dies before complete payment of any
benefits attributable to a participant, remaining benefits shall be paid to the
beneficiary's estate.

                                    SECTION 5

                             Financing Plan Benefits

         All benefits payable under this Plan shall be paid directly by the
Company out of its general assets. The Company shall not be required to
segregate on their books or otherwise any amount to be used for the payment of
benefits under this Plan.

                                    SECTION 6

                                  Reemployment

         If a participant who is entitled to receive benefits under the Plan is
reemployed by the Company, before all his benefits have been paid, any benefits
remaining to be paid will be forfeited.

                                    SECTION 7

                                  Miscellaneous

         7.1      Information to be Furnished by Participants. Each participant
must furnish to the Company such documents, evidence, data or other information
as the Company considers necessary or desirable for the purpose of administering
the Plan. Benefits under the Plan for each participant are provided on the
condition that the participant furnish full, true and complete data, evidence or
other information, and that the participant promptly sign any document related
to the Plan, requested by the Company.

         7.2      Employment Rights. The Plan does not constitute a contract of
employment and participation in the Plan will not give a participant the right
to be rehired or retained in the employ of the Company on a full-time, part-time
or any other basis or to be retrained by the Company, nor will participation in
the Plan give any participant any right or claim to any benefit under the Plan,
unless such right or claim has specifically accrued under the terms of the Plan.

         7.3      Company's Decision Final. Any interpretation of the Plan and
any decision on any matter within the discretion of the Company made by the
Company in good faith is binding on all persons.

                                       4
<PAGE>   5

         7.4      Evidence. Evidence required of anyone under the Plan may be by
certificate, affidavit, document or other information that the person relying
thereon considers pertinent and reliable, and signed, made or presented by the
proper party or parties.

         7.5      Uniform Rules. In managing the Plan, the Company will apply
uniform rules to all participants similarly situated.

         7.6      Gender and Number. Where the context admits, words in the
masculine gender shall include the feminine and neuter genders, the plural shall
include the singular and the singular shall include the plural.

         7.7      Action by Company. Any action required of or permitted by the
Company under the Plan shall be by resolution of its Board of Directors, by
resolution of a duly authorized committee of its Board of Directors, or by a
person or persons authorized by resolution(s) of its Board of Directors or such
committee.

         7.8      Controlling Laws. Except to the extent superseded by ERISA,
the laws of the state in which a participant resides shall be controlling in all
matters relating to the Plan.

         7.9      Interests Not Transferable. The interests of persons entitled
to benefits under the Plan are not subject to their debts or other obligations
and, except as may be required by the tax withholding provisions of the Internal
Revenue Code or any state's income tax act, or pursuant to an agreement between
a participant and the Company, may not be voluntarily sold, transferred,
alienated, assigned or encumbered.

         7.10     Mistake of Fact. Any mistake of fact or misstatement of fact
shall be corrected when it becomes known and proper adjustment made by reason
thereof.

         7.11     Severability. In the event any provision of the Plan shall be
held to be illegal or invalid for any reason, such illegality or invalidity
shall not affect the remaining parts of the Plan, and the Plan shall be
construed and enforced as if such illegal or invalid provisions had never been
contained in the Plan.

         7.12     Withholding. The Company will withhold from any amounts
payable under this Plan all federal, state, city and local taxes as shall be
legally required and any applicable insurance premiums, as well as any other
amounts authorized or required by Company policy including, but not limited to,
withholding for garnishments and judgments or other court orders.

         7.13     Effect on Other Plans or Agreements. Payments or benefits
provided to a participant under any Company stock, deferred compensation,
savings, retirement or other employee benefit plan (the "Other Plans") are
governed solely by the terms of such Other Plans. Any obligations or duties of a
participant pursuant to any non-competition or other agreement with the Company
shall be governed solely by the terms of such agreement and shall not be
affected by the terms of this Plan.

                                       5
<PAGE>   6

         7.14     Claims and Review Procedures.

                  (a)      Claims Procedure. In the event any person believes he
                           is being denied any rights or benefits under the
                           Plan, he shall file a written claim setting forth the
                           facts underlying his claim. Within ninety (90) days
                           after receipt of the claim by the administrator (or
                           within 180 days, if special circumstances require an
                           extension of time for processing the claim, and, if
                           written notice of such extension and circumstances is
                           given to such person within the initial 90-day
                           period), the administrator shall furnish to the
                           claimant written notice of the decision with respect
                           to the claim. If the claim is wholly or partially
                           denied, the written notice shall set forth in a
                           manner reasonably calculated to be understood by the
                           claimant: (i) the specific reason or reasons for the
                           denial; (ii) specific reference to pertinent Plan
                           provisions on which the denial is based; (iii) a
                           description of additional material or information, if
                           any, necessary for the claimant to perfect the claim
                           and an explanation of why such material or
                           information is necessary; and (iv) information as to
                           the steps to be taken if the claimant wishes to
                           submit a request for review. If such notification is
                           not given within such period, the claim will be
                           considered denied as of the last day of such period
                           and such claimant may request a review of his claim.

                  (b)      Review Procedure. Within sixty (60) days after
                           receipt by the claimant of written notification of
                           denial of a claim (or, if applicable, within 60 days
                           after the date on which such denial is considered to
                           have occurred) the claimant or his duly authorized
                           representative may appeal such denial by filing with
                           the administrator a written application for a review
                           of the denial of the claim. In connection with such
                           appeal, the claimant or his duly authorized
                           representative: (i) may file a written request with
                           the administrator to review pertinent Plan documents;
                           (ii) may submit issues and comments in writing; and
                           (iii) may file a written request for a review hearing
                           with the administrator. A decision on review shall be
                           made by the administrator within sixty (60) days
                           after receipt of a written request unless a hearing
                           has been requested or other special circumstances
                           require an extension of time for processing of the
                           appeal, in which case the administrator's decision on
                           review shall be rendered no later than one hundred
                           twenty (120) days after receipt of the request for
                           review. The administrator's decision on review shall:
                           (i) be in writing; (ii) include specific reasons for
                           the decision, written in a manner reasonably
                           calculated to be understood by the claimant; and
                           (iii) contain specific references to the pertinent
                           Plan provisions on which the decision is based. If
                           the decision on review is not made within such
                           period, the claim will be considered denied. All
                           decisions by the administrator with respect to the
                           Plan shall be final, conclusive and binding.

                                       6
<PAGE>   7

                                    SECTION 8

                            Amendment and Termination

         8.1      Amendment and Termination. The Company reserves the right, on
a case-by-case basis or on a general basis, to amend the Plan at any time, to
alter, reduce or eliminate any benefit under the Plan (in whole or in part) at
any time, or to terminate the Plan at any time, as to any class or classes of
covered employees, without notice. Notwithstanding the foregoing, any such
amendment or termination of the Plan shall not reduce the amount of benefits
payable to any participant who has terminated his employment before the
effective date of such amendment or termination and who is receiving or entitled
to receive benefits under the Plan except as otherwise provided in subsection
3.3. Any amendment or termination of the Plan by the Company shall be made in
accordance with the procedures set forth in subsection 7.7.

         8.2      Notice of Amendment or Termination. Participants will be
notified of any material amendment or termination of the Plan within a
reasonable time.

         IN WITNESS WHEREOF, Russell Corporation has caused this Plan to be
signed by a duly authorized member of the Russell Corporation Employee Benefits
Administrative Committee this 22 day of December, 2000.

                                            RUSSELL CORPORATION

                                            By: /s/
                                               ---------------------------------

                                            Title: Senior Vice President
                                                  ------------------------------
<PAGE>   8

                              RUSSELL CORPORATION
                               SEVERANCE PAY PLAN
                                FOR GRADES 1-18
                              SCHEDULE OF BENEFITS

If a participant is involuntarily terminated for reasons other than for proper
cause, the participant will be eligible for a severance payment in accordance
with the following:

         (a)      an amount equal to a period of base pay determined in
                  accordance with the following table__________________________:

<TABLE>
<CAPTION>
                  LENGTH OF SERVICE                         AVERAGE OF SEVERANCE
                  -----------------                         --------------------
                  <S>                                       <C>
                  3 months but less than 1 year                   1 month
                  1 year but less than 3                          2 months
                  3 years but less than 5                         3 months
                  5 years but less than 10                        4 months
                  10 years but less than 15                       5 months
                  15 years but less than 20                       6 months
                  20 years plus                                   7 months
</TABLE>

                  If a participant has more than 20 years of service, he/she
                  will be entitled to an additional one month of base pay for
                  each additional 5 years of service in excess of 20 years; PLUS

         (b)      an amount determined by the Senior Vice President, Human
                  Resources at his discretion from one to three months base pay,
                  provided however, that the total shall not exceed 12 months
                  base pay.

Only the participant's base rate of pay on the date of termination will be used
to determine the amount of the severance payments. Commissions, bonuses and all
other allowances shall not be considered when determining a participant's
severance payments. The Company reserves the right, in its sole discretion, to
vary the amount of severance payments determined above.

A participant who voluntarily quits or is severed for proper cause is not
eligible for severance pay.

In the event the amount of severance payments shall be in excess of 6 months,
the Company's obligation to make continued payments to participant after 6
months will terminate on the earlier of (i) the date of participant's hire by
another employer, or (ii) the date on which the severance payments end as
specified in the participant's Separation and Release Agreement with the
Company.

The participant may elect COBRA benefits and the rate charged will be the same
as that charged an active employee of the Company during the time period that
severance payments are being made to the participant. Any COBRA benefits will
terminate if the participant becomes covered by another employer's benefits
prior to the expiration of the COBRA period.

Vesting and election periods for Incentive Stock will be in accordance with
applicable plan documents.

All payments are contingent upon the participant and the Company executing a
release (in a form approved by the Company).

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