Document:

<PAGE>
                                                                    EXHIBIT (4e)

                                  $250,000,000

                      AMENDED AND RESTATED CREDIT AGREEMENT

                                   DATED AS OF

                                JANUARY 31, 2002

                                      AMONG

                              RUSSELL CORPORATION,

                             RUSSELL EUROPE LIMITED,

                             THE BANKS LISTED HEREIN

                              WACHOVIA BANK, N.A.,

                             AS ADMINISTRATIVE AGENT

                SUNTRUST BANK (FORMERLY SUNTRUST BANK, ATLANTA),

                              AS SYNDICATION AGENT

                           FIRST UNION NATIONAL BANK,

                             AS DOCUMENTATION AGENT

                                       AND

                           WACHOVIA SECURITIES, INC.,

                                AS LEAD ARRANGER

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                                TABLE OF CONTENTS

                                CREDIT AGREEMENT

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ARTICLE I. DEFINITIONS............................................................................................   1

         Section 1.01.              Definitions...................................................................   1

         Section 1.02.              Accounting Terms and Determinations..........................................   19

         Section 1.03.              References...................................................................   19

         Section 1.04.              Use of Defined Terms.........................................................   19

         Section 1.05.              Terminology..................................................................   19

         Section 1.06.              Other Definitional Provisions................................................   19

ARTICLE II. THE CREDITS..........................................................................................   20

         Section 2.01.              Commitments to Lend Syndicated Loans and Swing Loans.........................   20

         Section 2.02.              Method of Borrowing Syndicated Loans and Swing Loans.........................   23

         Section 2.03.              [Reserved]...................................................................   25

         Section 2.04.              Continuation and Conversion Elections........................................   25

         Section 2.05.              Notes........................................................................   26

         Section 2.06.              Maturity of Loans............................................................   26

         Section 2.07.              Interest Rates...............................................................   26

         Section 2.08.              Fees.........................................................................   28

         Section 2.09.              Optional Termination or Reduction of Commitments.............................   29

         Section 2.10.              Mandatory Reduction and Termination of Commitments...........................   29

         Section 2.11.              Optional Prepayments.........................................................   29

         Section 2.12.              Mandatory Prepayments........................................................   29

         Section 2.13.              General Provisions as to Payments............................................   30

         Section 2.14.              Computation of Interest and Fees.............................................   32

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<S>                                                                                                                 <C>

         Section 2.15.              Letters of Credit............................................................   32

ARTICLE III. CONDITIONS TO BORROWINGS............................................................................   35

         Section 3.01.              Conditions to Effectiveness of the Amended and Restated Credit Agreement.....   35

         Section 3.02.              Conditions to All Extensions of Credit.......................................   36

ARTICLE IV. REPRESENTATIONS AND WARRANTIES.......................................................................   37

         Section 4.01.              Corporate Existence and Power................................................   37

         Section 4.02.              Corporate and Governmental Authorization; No Contravention...................   37

         Section 4.03.              Binding Effect...............................................................   37

         Section 4.04.              Financial Information........................................................   37

         Section 4.05.              No Litigation................................................................   38

         Section 4.06.              Compliance with ERISA........................................................   38

         Section 4.07.              Compliance with Laws; Payment of Taxes.......................................   38

         Section 4.08.              Subsidiaries.................................................................   38

         Section 4.09.              Investment Company Act.......................................................   39

         Section 4.10.              Public Utility Holding Company Act...........................................   39

         Section 4.11.              Ownership of Property; Liens.................................................   39

         Section 4.12.              No Default...................................................................   39

         Section 4.13.              Full Disclosure..............................................................   39

         Section 4.14.              Environmental Matters........................................................   39

         Section 4.15.              Capital Stock................................................................   40

         Section 4.16.              Margin Stock.................................................................   40

         Section 4.17.              Insolvency...................................................................   40

         Section 4.18.              Insurance....................................................................   41

ARTICLE V. COVENANTS.............................................................................................   41

         Section 5.01.              Information..................................................................   41

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<S>                                                                                                                 <C>

         Section 5.02.              Inspection of Property, Books and Records....................................   43

         Section 5.03.              Maintenance of Existence.....................................................   43

         Section 5.04.              [Reserved]...................................................................   43

         Section 5.05.              Consolidations, Mergers and Sales of Assets..................................   43

         Section 5.06.              Use of Proceeds..............................................................   44

         Section 5.07.              Compliance with Laws; Payment of Taxes.......................................   44

         Section 5.08.              Insurance....................................................................   44

         Section 5.09.              Change in Fiscal Year........................................................   45

         Section 5.10.              Maintenance of Property......................................................   45

         Section 5.11.              Environmental Notices........................................................   45

         Section 5.12.              Environmental Matters........................................................   45

         Section 5.13.              Environmental Release........................................................   45

         Section 5.14.              Transactions with Affiliates.................................................   45

         Section 5.15.              Restricted Payments..........................................................   45

         Section 5.16.              Investments..................................................................   46

         Section 5.17.              Permitted Liens and Debt.....................................................   46

         Section 5.18.              Restrictive Agreements.......................................................   48

         Section 5.19.              [Reserved]...................................................................   49

         Section 5.20.              Debt/EBITDA Ratio............................................................   49

         Section 5.21.              Minimum Consolidated Net Worth...............................................   49

         Section 5.22.              Debt Service Coverage Ratio..................................................   49

         Section 5.23.              Capital Expenditures.........................................................   50

ARTICLE VI. DEFAULTS.............................................................................................   51

         Section 6.01.              Events of Default............................................................   51

         Section 6.02.              Notice of Default............................................................   54

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<S>                                                                                                                 <C>

         Section 6.03.              Cash Collateral..............................................................   54

ARTICLE VII. THE ADMINISTRATIVE AGENT............................................................................   54

         Section 7.01.              Appointment; Powers and Immunities...........................................   54

         Section 7.02.              Reliance by Administrative Agent.............................................   55

         Section 7.03.              Defaults.....................................................................   55

         Section 7.04.              Rights of Administrative Agent and its Affiliates as a Bank..................   55

         Section 7.05.              Indemnification..............................................................   56

         Section 7.06.              Consequential Damages........................................................   56

         Section 7.07.              Payee of Note Treated as Owner...............................................   56

         Section 7.08.              Nonreliance on Administrative Agent and Other Banks..........................   57

         Section 7.09.              Failure to Act...............................................................   57

         Section 7.10.              Resignation or Removal of Administrative Agent...............................   57

ARTICLE VIII. CHANGE IN CIRCUMSTANCES; COMPENSATION..............................................................   58

         Section 8.01.              Basis for Determining Interest Rate Inadequate or Unfair.....................   58

         Section 8.02.              Illegality...................................................................   58

         Section 8.03.              Increased Cost and Reduced Return............................................   59

         Section 8.04.              Base Rate Loans or Other Fixed Rate Loans Substituted for
                                     Affected Fixed Rate Loans...................................................   60

         Section 8.05.              Compensation.................................................................   61

         Section 8.06.              Failure to Pay in Foreign Currency...........................................   61

         Section 8.07.              Judgment Currency............................................................   62

         Section 8.08.              Replacement of Banks.........................................................   62

ARTICLE IX. MISCELLANEOUS........................................................................................   62

         Section 9.01.              Notices......................................................................   62

         Section 9.02.              No Waivers...................................................................   63

         Section 9.03.              Expenses; Documentary Taxes..................................................   63

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<S>                                                                                                                 <C>

         Section 9.04.              Indemnification..............................................................   63

         Section 9.05.              Setoff; Sharing of Setoffs...................................................   64

         Section 9.06.              Amendments and Waivers.......................................................   65

         Section 9.07.              No Margin Stock Collateral...................................................   66

         Section 9.08.              Successors and Assigns.......................................................   66

         Section 9.09.              Confidentiality..............................................................   68

         Section 9.10.              Representation by Banks......................................................   68

         Section 9.11.              Obligations Several..........................................................   68

         Section 9.12.              Georgia Law..................................................................   68

         Section 9.13.              Severability.................................................................   68

         Section 9.14.              Interest.....................................................................   68

         Section 9.15.              Interpretation...............................................................   69

         Section 9.16.              Waiver of Jury Trial; Consent to Jurisdiction................................   69

         Section 9.17.              Counterparts.................................................................   70

         Section 9.18.              Source of Funds -- ERISA.....................................................   70

         Section 9.19.              European Economic and Monetary Union.........................................   70

         Section 9.20.              [Reserved]...................................................................   72

         Section 9.21.              Existing Credit Agreement; Effectiveness of Amendment and Restatement........   72

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                                        v

<PAGE>

EXHIBIT A-1     Form of Syndicated Dollar Loan Note

EXHIBIT A-2     Form of Swing Loan Note

EXHIBIT A-3     [Reserved]

EXHIBIT A-4     Form of Foreign Currency Loan Note for Russell Corporation

EXHIBIT A-5     Form of Foreign Currency Loan Note for Russell Europe Limited

EXHIBIT B       [Reserved]

EXHIBIT C       [Reserved]

EXHIBIT D       Form of Assignment and Acceptance

EXHIBIT E-1     Form of Notice of Borrowing

EXHIBIT E-2     Form of Notice of Continuation or Conversion

EXHIBIT F       Form of Compliance Certificate

EXHIBIT G       [Reserved]

EXHIBIT H       [Reserved]

EXHIBIT I       [Reserved]

EXHIBIT J       [Reserved]

EXHIBIT K       [Reserved]

EXHIBIT L       Form of Guaranty

EXHIBIT M       Form of Consent and Confirmation

Schedule 4.08   Subsidiaries

Schedule 5.05   Assets Held for Sale

Schedule 5.17   Permitted Liens and Debts

Schedule 5.18   Restrictive Agreements

<PAGE>

                      AMENDED AND RESTATED CREDIT AGREEMENT

                  AMENDED AND RESTATED CREDIT AGREEMENT dated as of January 31,
2002, among RUSSELL CORPORATION, RUSSELL EUROPE LIMITED, the BANKS listed on the
signature pages hereof, WACHOVIA BANK, N.A., as Administrative Agent, SUNTRUST
BANK (formerly SunTrust Bank, Atlanta), as Syndication Agent and FIRST UNION
NATIONAL BANK, as Documentation Agent.

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

                  WHEREAS, to provide financing for Russell Corporation and
Russell Europe Limited, Russell Corporation, Russell Europe Limited, the Banks
named therein, Wachovia Bank, N.A., as administrative agent, SunTrust Bank,
Atlanta, as syndication agent and First Union National Bank, as documentation
agent entered into a Credit Agreement, dated as of October 15, 1999, as amended
by the First Amendment, dated as of July 15, 2001, the Second Amendment, dated
as of September 17, 2001 and the Third Amendment, dated as of December 14, 2001
and as further amended by that certain Letter Agreement dated October 15, 2001
entered into by, among others, the parties hereto (the "Existing Credit
Agreement");

                  WHEREAS, the parties to the Existing Credit Agreement have
agreed to amend and restate the Existing Credit Agreement in its entirety;

                  NOW, THEREFORE, in consideration of the premises and
agreements hereinafter set forth, the parties hereto hereby agree to amend and
restate the Existing Credit Agreement in its entirety as follows:

                                   ARTICLE I.

                                  DEFINITIONS

                  SECTION 1.01. DEFINITIONS. The terms as defined in this
Section 1.01 shall, for all purposes of this Agreement and any amendment hereto
(except as herein otherwise expressly provided or unless the context otherwise
requires), have the meanings set forth herein:

                  "Adjusted IBOR Rate" has the meaning set forth in Section
2.07(d).

                  "Adjusted London Interbank Offered Rate" has the meaning set
forth in Section 2.07(c).

                  "Administrative Agent" means Wachovia Bank, N.A., a national
banking association organized under the laws of the United States of America, in
its capacity as agent for the Banks hereunder, and its successors and permitted
assigns in such capacity.

<PAGE>

                  "Affiliate" of any relevant Person means (i) any Person that
directly, or indirectly through one or more intermediaries, controls the
relevant Person (a "Controlling Person"), (ii) any Person (other than the
relevant Person or a Subsidiary of the relevant Person) which is controlled by
or is under common control with a Controlling Person, or (iii) any Person (other
than a Subsidiary of the relevant Person) of which the relevant Person owns,
directly or indirectly, 20% or more of the common stock or equivalent equity
interests. As used herein, the term "control" means possession, directly or
indirectly, of the power to direct or cause the direction of the management or
policies of a Person, whether through the ownership of voting securities, by
contract or otherwise.

                  "Aggregate Commitments" means at any time the aggregate amount
of the Commitments of all Banks at such time.

                  "Agreement" means this Amended and Restated Credit Agreement,
together with all amendments and supplements hereto.

                  "Application" means an application, in such form as the
Issuing Bank may specify from time to time, requesting the Issuing Bank to open
a Letter of Credit.

                  "Applicable Margin" has the meaning set forth in Section
2.07(a).

                  "Arranger's Letter Agreement" means that certain letter
agreement, dated as of August 27, 1999, between the Borrower and Wachovia
Securities, Inc., as Lead Arranger, relating to the structure of the Loans, and
certain fees from time to time payable by the Borrower to Wachovia Securities,
Inc., as arranger, and to the Administrative Agent, together with all amendments
and supplements thereto.

                  "Assignee" has the meaning set forth in Section 9.08(c).

                  "Assignment and Acceptance" means an Assignment and Acceptance
executed in accordance with Section 9.08(c) in the form attached hereto as
Exhibit D.

                  "Authority" has the meaning set forth in Section 8.02.

                  "Available Commitment" as to any Bank at any time, an amount
equal to the excess, if any, of (a) such Bank's Commitment then in effect over
(b) such Bank's Revolving Extensions of Credit then outstanding.

                  "Bank" means each bank listed on the signature pages hereof as
having a Commitment, and its successors and permitted assigns.

                  "Base Rate" means for any Base Rate Loan for any day, the rate
per annum equal to the higher as of such day of (i) the Prime Rate, or (ii)
one-half of one percent above the Federal Funds Rate. For purposes of
determining the Base Rate for any day, changes in the Prime Rate or the Federal
Funds Rate shall be effective on the date of each such change.

                                       2
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                  "Base Rate Loan" means a Loan which bears or is to bear
interest at a rate based upon the Base Rate, and is to be made as a Base Rate
Loan pursuant to the applicable Notice of Borrowing, Notice of Continuation or
Conversion, Section 2.02(f), or Article VIII, as applicable.

                  "Borrower" means (i) Russell Corporation, an Alabama (or, if
subsequently applicable, a Delaware) corporation, and its successors and its
permitted assigns and, (ii) only in connection with Foreign Currency Borrowings
and Foreign Currency Loans, means either or both, as the context shall require,
of Russell Corporation and Russell Europe Limited, it being understood and
agreed that either Russell Corporation or Russell Europe Limited, or both of
them (as to different Foreign Currency Borrowings), may borrow Foreign Currency
Loans within the limits set forth in Section 2.01(a), but Russell Europe Limited
shall have liability only for Foreign Currency Loans borrowed by it, and shall
have no liability on any Foreign Currency Loans, Syndicated Dollar Loans or
Swing Loans made to Russell Corporation.

                  "Borrowing" means a borrowing hereunder consisting of Loans
made to the Borrower (i) at the same time by all of the Banks, in the case of a
Syndicated Borrowing or (ii) by Wachovia, for Swing Loans. A Borrowing is a
"Syndicated Borrowing" if such Loans are made pursuant to Section 2.01(a) or a
"Swing Loan Borrowing" if such Loan is made pursuant to Section 2.01(b). A
Borrowing is a "Euro-Dollar Borrowing" if such Loans are Euro-Dollar Loans, or a
"Base Rate Borrowing" if such Loans are Base Rate Loans, or a "Transaction Rate
Borrowing" if such Loans are Transaction Rate Loans. A Borrowing is a "Dollar
Borrowing" if such Loans are Base Rate Loans or Euro-Dollar Loans. A Borrowing
is a "Foreign Currency Borrowing" if such Loans are Foreign Currency Loans.

                  "Bridge Letter Agreement" means that certain Letter Agreement,
dated July 3, 2001, among Russell, Wachovia and Wachovia Securities, Inc.

                  "Capital Expenditures", for any period, with respect to any
Person, the aggregate of all expenditures by such Person for the acquisition or
leasing (pursuant to a capital or synthetic lease) of fixed or capital assets or
additions to equipment (including replacements, capitalized repairs and
improvements during such period and including incremental increases to existing
capital leases and synthetic leases during such period) which are required to be
capitalized under GAAP on a balance sheet of such Person.

                  "Capital Stock" means any and all shares, interests,
participations or other equivalents (however designated) of capital stock of a
corporation, any and all equivalent ownership interests in a Person (other than
a corporation) and any and all warrants, rights or options to purchase any of
the foregoing.

                  "CERCLA" means the Comprehensive Environmental Response
Compensation and Liability Act, 42 U.S.C.ss. 9601 et. seq. and its implementing
regulations and amendments.

                  "CERCLIS" means the Comprehensive Environmental Response
Compensation and Liability Inventory System established pursuant to CERCLA.

                  "Change of Law" shall have the meaning set forth in Section
8.02.

                  "Chase" means JPMorgan Chase Bank (successor to The Chase
Manhattan Bank).

                                       3
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                  "Clean-Down Amount" shall have the meaning set forth in clause
(iii) of Section 2.01(a).

                  "Code" means the Internal Revenue Code of 1986, as amended, or
any successor Federal tax code.

                  "Collateral Agent" means Wachovia Bank, N.A., in its capacity
as collateral agent under the Intercreditor Agreement and the other Security
Documents, together with its successors in such capacity.

                  "Collateral Agent Fee Letter" means the Letter Agreement,
dated as of December 14, 2001, between the Borrower and the Collateral Agent.

                  "Commitment" means, with respect to each Bank, (i) the amount
set forth opposite the name of such Bank on the signature pages hereof, and (ii)
as to any Bank which enters into any Assignment and Acceptance (whether as
transferor Bank or as Assignee thereunder), the amount of such Bank's Commitment
after giving effect to such Assignment and Acceptance, in each case as such
amount may be reduced from time to time pursuant to Sections 2.09 and 2.10.

                  "Compliance Certificate" has the meaning set forth in Section
5.01(c).

                  "Consolidated EBIT" means at any time the sum of the
following, determined on a consolidated basis for the Borrower and its
Consolidated Subsidiaries, at the end of each Fiscal Quarter, for the Fiscal
Quarter just ended and the 3 immediately preceding Fiscal Quarters: (i)
Consolidated Net Income; plus (ii) Consolidated Interest Expense; plus (iii)
taxes on income; and (iv) all Restructuring Charges.

                  "Consolidated EBITDA" means at any time the sum of the
following, determined on a consolidated basis for the Borrower and its
Consolidated Subsidiaries, at the end of each Fiscal Quarter, for the Fiscal
Quarter just ended and the 3 immediately preceding Fiscal Quarters (and with
respect to any acquisition which is made during such four Fiscal Quarter Period,
the Consolidated Subsidiary acquired in such acquisition shall be included as if
it had been a Consolidated Subsidiary prior to the commencement of such four
Fiscal Quarter Period): (i) Consolidated EBIT; plus (ii) depreciation; plus
(iii) amortization; plus (iv) other non-cash charges without duplication of
Restructuring Charges, minus (v) all cash payments during such period relating
to non-cash charges which were added back in the determination of Consolidated
EBITDA in any prior period.

                  "Consolidated Fixed Charges" means, for any period, the sum
(without duplication) of (a) Consolidated Interest Expense for such period, (b)
provision for cash income and franchise taxes made by the Borrower or any of its
Subsidiaries on a consolidated basis in respect of such period, (c) scheduled
payments made during such period on account of principal of Debt of the Borrower
or any of its Subsidiaries and (d) Restricted Payments paid by the Borrower or
any Consolidated Subsidiary in cash during such period in respect of Capital
Stock of the Borrower other than Restricted Payments paid by a Consolidated
Subsidiary to the Borrower or another Consolidated Subsidiary.

                                       4
<PAGE>

                  "Consolidated Interest Expense" for any period means interest,
whether expensed or capitalized (but in the case of capitalization, limited to
the portion of capitalized interest allocable to such period), in respect of
Debt of the Borrower or any of its Consolidated Subsidiaries outstanding during
such period determined on a consolidated basis in accordance with GAAP (provided
that if any Consolidated Subsidiary was acquired during such period,
Consolidated Interest Expense shall be adjusted to take into account the
interest expense of such Consolidated Subsidiary assuming for such purposes that
(a) such Consolidated Subsidiary was acquired prior to the commencement of such
period and (b) that the Debt of such acquired Consolidated Subsidiary accrued
interest as if such Debt was outstanding hereunder).

                  "Consolidated Net Income" means, for any period, the Net
Income of the Borrower and its Consolidated Subsidiaries determined on a
consolidated basis, but excluding (i) extraordinary items and (ii) any equity
interests of the Borrower or any Consolidated Subsidiary in the unremitted
earnings or losses of any Person that is not a Consolidated Subsidiary during
such period.

                  "Consolidated Net Worth" means, at any time, the shareholders'
equity of the Borrower and its Consolidated Subsidiaries, as set forth or
reflected on the most recent consolidated balance sheet of the Borrower and its
Consolidated Subsidiaries prepared in accordance with GAAP, but excluding any
Redeemable Preferred Stock of the Borrower or any of its Consolidated
Subsidiaries. Shareholders' equity generally would include, but not be limited
to (i) the par or stated value of all outstanding Capital Stock, (ii) capital
surplus, (iii) retained earnings, and (iv) various deductions such as (A)
purchases of treasury stock, (B) valuation allowances, (C) receivables due from
an employee stock ownership plan, (D) employee stock ownership plan debt
guarantees, and (E) translation adjustments for foreign currency transactions.

                  "Consolidated Subsidiary" means at any date any Subsidiary or
other entity the accounts of which, in accordance with GAAP, would be
consolidated with those of the Borrower in its consolidated financial statements
as of such date.

                  "Consolidated Total Debt" means, at any date, without
duplication, the sum of (a) all Debt of the Borrower and its Consolidated
Subsidiaries at such date which would, in conformity with GAAP, be included on
the consolidated balance sheet of the Borrower and its Consolidated
Subsidiaries, plus, without duplication, all Debt of Elcatex Guaranteed by the
Borrower or any of its Consolidated Subsidiaries.

                  "Controlled Group" means all members of a controlled group of
corporations and all trades or businesses (whether or not incorporated) under
common control which, together with the Borrower, are treated as a single
employer under Section 414 of the Code.

                  "Debt" of any Person means at any date, without duplication,
(i) all obligations of such Person for borrowed money (including, without
limitation the principal balance outstanding under any synthetic lease, tax
retention operating lease, off-balance sheet loan or similar off-balance
financing product where such transaction is considered borrowed money
indebtedness for tax purposes but is classified as an operating lease in
accordance with GAAP), (ii) all obligations of such Person evidenced by bonds,
debentures, notes or other similar instruments,

                                       5
<PAGE>
(iii) all obligations of such Person to pay the deferred purchase price of
property or services, except trade accounts payable arising in the ordinary
course of business, (iv) all obligations of such Person as lessee under capital
leases, (v) all obligations of such Person to reimburse any bank or other Person
in respect of amounts payable under a banker's acceptance, (vi) all Redeemable
Preferred Stock of such Person (in the event such Person is a corporation),
(vii) all obligations of such Person to reimburse any bank or other Person in
respect of amounts paid or to be paid under a letter of credit or similar
instrument (whether drawn or undrawn), (viii) all Debt of others secured by a
Lien on any asset of such Person, whether or not such Debt is assumed by such
Person, (ix) all net obligations of such Person with respect to interest rate
protection agreements, foreign currency exchange agreements or other hedging
arrangements (valued as the termination value thereof computed in accordance
with a method approved by the International Swap Dealers Association and agreed
to by such Person in the applicable hedging agreement, if any) and (x) all Debt
of others Guaranteed by such Person (including, without limitation, the Debt of
any partnership or unincorporated joint venture in which such Person is a
general partner or a joint venturer, other than non-recourse Debt of such
partnership or unincorporated joint venture).

                  "Debt/EBITDA Ratio" means at any time the ratio of (i)
Consolidated Total Debt to (ii) Consolidated EBITDA.

                  "Debt Service Coverage Ratio" for any period of four
consecutive Fiscal Quarters, the ratio of (a) Consolidated EBITDA for such
period to (b) the sum of (i) Consolidated Interest Expense for such period and
(ii) the aggregate amount of payments on account of principal of Debt of the
Borrower or any of its Subsidiaries scheduled to be made during the four
consecutive Fiscal Quarters immediately succeeding such period.

                  "Default" means any condition or event which constitutes an
Event of Default or which with the giving of notice or lapse of time or both
would, unless cured or waived, become an Event of Default.

                  "Default Rate" means, with respect to any Loan, on any day,
the sum of 2% plus the then highest interest rate (including the Applicable
Margin) which may be applicable to any Loans hereunder (irrespective of whether
any such type of Loans are actually outstanding hereunder).

                  "Disposition", with respect to any property, means any sale,
lease, sale and leaseback, assignment, conveyance, transfer or other disposition
thereof. The terms "Dispose" and "Disposed of" shall have correlative meanings.

                  "Dollars" or "$" means dollars in lawful currency of the
United States of America.

                  "Dollar Equivalent" means the Dollar equivalent of the amount
of a Foreign Currency Loan, determined by the Administrative Agent on the basis
of its spot rate for the purchase of the appropriate Foreign Currency with
Dollars.

                  "Domestic Business Day" means any day except a Saturday,
Sunday or other day on which commercial banks in Georgia are authorized by law
to close.

                                       6
<PAGE>

                  "Domestic Subsidiary" means a Subsidiary organized under the
laws of a state of the United States of America or the District of Columbia.

                  "Elcatex" means Elasticos Centroamericanos Textiles, S.A. de
C.V.

                  "Environmental Authority" means any foreign, federal, state,
local or regional government that exercises any form of jurisdiction or
authority under any Environmental Requirement.

                  "Environmental Authorizations" means all licenses, permits,
orders, approvals, notices, registrations or other legal prerequisites for
conducting the business of the Borrower or any Subsidiary required by any
Environmental Requirement.

                  "Environmental Judgments and Orders" means all judgments,
decrees or orders arising from any Environmental Requirements, whether or not
entered upon consent, or written agreements with an Environmental Authority or
other entity arising from or in any way associated with any Environmental
Requirement, whether or not incorporated in a judgment, decree or order.

                  "Environmental Liabilities" means any liabilities, whether
accrued, contingent or otherwise, arising from and in any way associated with
any Environmental Requirements.

                  "Environmental Notices" means notice from any Environmental
Authority or by any other person or entity, of possible or alleged noncompliance
with or liability under any Environmental Requirement, including without
limitation any complaints, citations, demands or requests from any Environmental
Authority or from any other person or entity for correction of any violation of
any Environmental Requirement or any investigations concerning any violation of
any Environmental Requirement.

                  "Environmental Proceedings" means any judicial or
administrative proceedings arising from or in any way associated with any
Environmental Requirement.

                  "Environmental Releases" means releases as defined in CERCLA
or under any applicable state or local environmental law or regulation.

                  "Environmental Requirements" means any legal requirement
relating to health, safety or the environment and applicable to the Borrower,
any Subsidiary or the Properties under CERCLA or similar state legislation and
all federal, state and local laws, ordinances, regulations, orders, writs,
decrees and common law.

                  "ERISA" means the Employee Retirement Income Security Act of
1974, as amended from time to time, or any successor law. Any reference to any
provision of ERISA shall also be deemed to be a reference to any successor
provision or provisions thereof.

                  "Euro" has the meaning set forth in Section 9.19.

                  "Euro-Dollar Business Day" means any Domestic Business Day on
which dealings in Dollar deposits are carried out in the London interbank
market.

                                       7
<PAGE>

                  "Euro-Dollar Loan" means a Loan which bears or is to bear
interest at a rate based upon the Adjusted London Interbank Offered Rate, and to
be made as a Euro-Dollar Loan pursuant to the applicable Notice of Borrowing or
Notice of Continuation or Conversion.

                  "Euro-Dollar Reserve Percentage" has the meaning set forth in
Section 2.07(c).

                  "Event of Default" has the meaning set forth in Section 6.01.

                  "Federal Funds Rate" means, for any day, the rate per annum
(rounded upward, if necessary, to the next higher 1/100th of 1%) equal to the
weighted average of the rates on overnight Federal funds transactions with
members of the Federal Reserve System arranged by Federal funds brokers on such
day, as published by the Federal Reserve Bank of New York on the Domestic
Business Day next succeeding such day, provided that (i) if the day for which
such rate is to be determined is not a Domestic Business Day, the Federal Funds
Rate for such day shall be such rate on such transactions on the next preceding
Domestic Business Day as so published on the next succeeding Domestic Business
Day, and (ii) if such rate is not so published for any day, the Federal Funds
Rate for such day shall be the average rate charged to the Administrative Agent
on such day on such transactions, as reasonably determined by the Administrative
Agent.

                  "First Amendment Date" means July 25, 2001.

                  "Fiscal Quarter" means any fiscal quarter of the Borrower.

                  "Fiscal Year" means any fiscal year of the Borrower.

                  "Fixed Charge Coverage Ratio" means, for any period, the ratio
of (a) Consolidated EBITDA for such period less the aggregate amount actually
paid by the Borrower and its Consolidated Subsidiaries during such period on
account of Capital Expenditures to (b) Consolidated Fixed Charges for such
period.

                  "Fixed Rate Borrowing" means a Euro-Dollar Borrowing, a
Foreign Currency Borrowing or a Transaction Rate Borrowing, or any one, or more,
or all of them, as the context shall require.

                  "Fixed Rate Loans" means Euro-Dollar Loans, Foreign Currency
Loans or Transaction Rate Loans, or any one, or more, or all of them, as the
context shall require.

                  "Foreign Currencies" means, individually and collectively, as
the context shall require, each of the following, if offered and subject to
availability, and subject to the provisions of Section 9.19 (i) euros, (ii)
British pounds sterling and (iii) at the option of the Banks, any other currency
which is freely transferable and convertible into Dollars; provided, however,
that no such other currency under this clause (iii) shall be included as a
Foreign Currency hereunder, or included in a Notice of Borrowing, unless (x) a
Borrower has first submitted a request to the Administrative Agent and the Banks
that it be so included, and (y) the Administrative Agent and each of the Banks,
in their sole discretion, have agreed to such request.

                                       8
<PAGE>

                  "Foreign Currency Borrowing" has the meaning set forth in the
definition of "Borrowing."

                  "Foreign Currency Business Day" shall mean any Domestic
Business Day, excluding one on which trading is not carried on by and between
banks in deposits of the applicable Foreign Currency in the applicable interbank
market for such Foreign Currency.

                  "Foreign Currency Loan" means a Loan to be made as a Foreign
Currency Loan pursuant to the applicable Notice of Borrowing, and such term
shall include, individually and collectively, as the context shall require, such
Loans to Russell Corporation and to Russell Europe Limited.

                  "Foreign Currency Loan Notes" means promissory notes of the
Borrower, substantially in the form of Exhibit A-4, as to Russell Corporation,
and Exhibit A-5, as to Russell Europe Limited, evidencing the obligation of the
Borrower to repay the Foreign Currency Loans, together with all amendments,
consolidations, modifications, renewals and supplements thereto.

                  "Foreign Subsidiary" means any Subsidiary that is not a
Domestic Subsidiary.

                  "FQ1," "FQ2," "FQ3," and "FQ4": when used with a numerical
year designation, means the first, second, third or fourth Fiscal Quarters,
respectively, of such Fiscal Year of the Borrower (e.g., FQ2 2001 means the
second fiscal quarter of the Borrower's 2001 Fiscal Year, which Fiscal Quarter
ends July 1, 2001).

                  "GAAP" means generally accepted accounting principles applied
on a basis consistent with those which, in accordance with Section 1.02, are to
be used in making the calculations for purposes of determining compliance with
the terms of this Agreement.

                  "Guarantee" by any Person means any obligation, contingent or
otherwise, of such Person directly or indirectly guaranteeing any Debt or other
obligation of any other Person and, without limiting the generality of the
foregoing, any obligation, direct or indirect, contingent or otherwise, of such
Person (i) to secure, purchase or pay, or advance or supply funds for the
purchase or payment of, such Debt or other obligation, whether arising by virtue
of partnership arrangements (including, without limitation, arising solely by
virtue of the status of being a general partner in a partnership or
participating as a joint venturer in a joint venture), by agreement to
keep-well, to purchase assets, goods, securities or services, to provide
collateral security, to take-or-pay, or to maintain financial statement
conditions or otherwise, or (ii) entered into for the purpose of assuring in any
other manner the obligee of such Debt or other obligation of the payment thereof
or to protect such obligee against loss in respect thereof (in whole or in
part), provided that the term Guarantee shall not include endorsements for
collection or deposit in the ordinary course of business. The term "Guarantee"
used as a verb has a corresponding meaning.

                  "Guarantee and Collateral Agreement" means the Guarantee and
Collateral Agreement made by Russell and certain of its Subsidiaries in favor of
Collateral Agent, dated as of December 14, 2001.

                                       9
<PAGE>

                  "Guaranty" means the Guaranty Agreement, dated as of October
15, 1999, attached as Exhibit L, executed by Russell Corporation,
unconditionally Guaranteeing payment of the Foreign Currency Loans made to and
the Foreign Currency Loan Note made by Russell Europe Limited.

                  "Hazardous Materials" includes, without limitation, (a) solid
or hazardous waste, as defined in the Resource Conservation and Recovery Act of
1980, 42 U.S.C. ss. 6901 et seq. and its implementing regulations and
amendments, or in any applicable state or local law or regulation, (b)
"hazardous substance", "pollutant", or "contaminant" as defined in CERCLA, or in
any applicable state or local law or regulation, (c) gasoline, or any other
petroleum product or by-product, including, crude oil or any fraction thereof,
(d) toxic substances, as defined in the Toxic Substances Control Act of 1976, or
in any applicable state or local law or regulation and (e) insecticides,
fungicides, or rodenticides, as defined in the Federal Insecticide, Fungicide,
and Rodenticide Act of 1975, or in any applicable state or local law or
regulation, as each such Act, statute or regulation may be amended from time to
time.

                  "High-Yield Notes" shall have the meaning set forth in Section
5.17(n).

                  "IBOR" has the meaning set forth in Section 2.07(d).

                  "Intercompany Receivables Agreements" shall mean,
collectively, (i) the Amended and Restated Receivables Purchase and Sale
Agreement dated as of August 3, 2001 by and between Russell Financial and the
Borrower, (ii) the Amended and Restated Receivables Purchase and Sale Agreement
dated as of August 3, 2001 by and between Russell Financial and Desoto Mills,
Inc. and (iii) the Amended and Restated Receivables Purchase and Sale Agreement
dated as of August 3, 2001 by and between Russell Financial and Cross Creek
Apparel, LLC, in each case as originally executed or as such agreement may be
from time to time supplemented, amended, renewed or extended.

                  "Intercreditor Agreement" means the Intercreditor and Agency
Agreement among Collateral Agent and Secured Parties, dated as of December 14,
2001.

                  "Interest Period" means: (1) with respect to each Euro-Dollar
Borrowing and Foreign Currency Borrowing, the period commencing on the date of
such Borrowing and ending on the numerically corresponding day in the first,
second, third or sixth month thereafter, as the Borrower may elect in the
applicable Notice of Borrowing; provided that:

                  (a)      any Interest Period (subject to paragraph (c) below)
         which would otherwise end on a day which is not a Euro-Dollar Business
         Day or Foreign Currency Business Day shall be extended to the next
         succeeding Euro-Dollar Business Day or Foreign Currency Business Day,
         as the case may be, unless such Euro-Dollar Business Day or Foreign
         Currency Business Day, as the case may be, falls in another calendar
         month, in which case such Interest Period shall end on the next
         preceding Euro-Dollar Business Day or Foreign Currency Business Day, as
         the case may be;

                  (b)      any Interest Period which begins on the last
         Euro-Dollar Business Day of a calendar month (or on a day for which
         there is no numerically corresponding day in the

                                       10
<PAGE>

         appropriate subsequent calendar month) shall, subject to paragraph (c)
         below, end on the last Euro-Dollar Business Day of the appropriate
         subsequent calendar month; and

                  (c)      no Interest Period may be selected which begins
         before the Termination Date and would otherwise end after the
         Termination Date; and

                  (2)      with respect to each Transaction Rate Borrowing, any
period up to 14 days mutually agreeable to the Borrower and Wachovia which ends
on or prior to the Termination Date.

                  "Investment" means any investment in any Person, whether by
means of (i) purchase or acquisition of all or substantially all of the assets
of such Person (or of a division or line of business of such Person), including,
without limitation, any Permitted Acquisition, (ii) purchase or acquisition of
obligations or securities of such Person, including, without limitation, any
Permitted Acquisition, (iii) capital contribution to such Person, (iv) loan or
advance to such Person, (v) making of a time deposit with such Person, (vi)
Guarantee or assumption of any obligation of such Person or (vii) by any other
means, but excluding (x) trade advances in the ordinary course of the Borrower's
business in accordance with historical practices existing on the Original
Closing Date and (y) special extensions or renewals of credit made in accordance
with the Borrower's credit policies to customers in troubled financial condition
in order to maximize the Borrower's anticipated recovery or to protect a
strategic source of supply or market.

                  "Issuing Bank" means First Union National Bank, in its
capacity as issuer of any Letter of Credit.

                  "L/C Commitment" equals $7,500,000.

                  "L/C Obligations" means, at any time, an amount equal to the
sum of (a) the aggregate then undrawn and unexpired amount of the then
outstanding Letters of Credit and (b) the aggregate amount of drawings under
Letters of Credit that have not then been reimbursed pursuant to Section
2.15(e).

                   "L/C Participants" means the collective reference to all the
Banks other than the Issuing Bank.

                  "Lending Office" means, as to each Bank, its office located at
its address set forth on the signature pages hereof (or identified on the
signature pages hereof as its Lending Office) or such other office as such Bank
may hereafter designate as its Lending Office by notice to the Borrower and the
Administrative Agent. Each Bank may designate a Lending Office for Syndicated
Dollar Loans and a different Lending Office for Foreign Currency Loans, and the
term "Lending Office" shall in such case mean either such Lending Office, as the
context shall require.

                  "Letter Agreements" means the collective reference to the
Arranger's Letter Agreement and the Bridge Letter Agreement.

                  "Letters of Credit" has the meaning set forth in Section
2.15(a).

                                       11
<PAGE>

                  "Lien" means, with respect to any asset, any mortgage, deed to
secure debt, deed of trust, lien, pledge, charge, security interest, security
title, preferential arrangement which has the practical effect of constituting a
security interest or encumbrance, or encumbrance or servitude of any kind in
respect of such asset to secure or assure payment of a Debt or a Guarantee,
whether by consensual agreement or by operation of statute or other law, or by
any agreement, contingent or otherwise, to provide any of the foregoing. For the
purposes of this Agreement, the Borrower or any Subsidiary shall be deemed to
own subject to a Lien any asset which it has acquired or holds subject to the
interest of a vendor or lessor under any conditional sale agreement, capital
lease, synthetic lease or other title retention agreement relating to such
asset.

                  "Loan" means a Base Rate Loan, Euro-Dollar Loan, Syndicated
Dollar Loan, Foreign Currency Loan, Swing Loan or Transaction Rate Loan, and
"Loans" means Base Rate Loans, Euro-Dollar Loans, Syndicated Dollar Loans,
Foreign Currency Loans, Swing Loans, Transaction Rate Loans, or any or all of
them, as the context shall require.

                  "Loan Documents" means this Agreement, the Security Documents,
the Notes, the Letter Agreements, the Guaranty, any other document evidencing,
relating to or securing the Loans delivered by or on behalf of the Borrower, and
any other document or instrument delivered by or on behalf of the Borrower from
time to time in connection with this Agreement, the Security Documents, the
Notes or the Loans, as such documents and instruments may be amended or
supplemented from time to time.

                  "London Interbank Offered Rate" has the meaning set forth in
Section 2.07(c).

                  "Margin Stock" means "margin stock" as defined in Regulations
T, U or X.

                  "Material Adverse Effect" means, with respect to any event,
act, condition, occurrence, cost or expenses of whatever nature (including any
adverse determination in any litigation, arbitration, or governmental
investigation or proceeding, but not including any event, act, condition,
occurrence, cost or expense arising out of or relating to (i) the case styled
Locke, et al. v. Russell Corporation, et al. or (ii) the Restructuring Program
or the Restructuring Charges), whether singly or in conjunction with any other
event or events, act or acts, condition or conditions, occurrence, occurrences,
costs or expenses, whether or not related, that causes a material adverse change
in, or a material adverse effect upon, any of (a) the financial condition,
operations, business, properties or prospects of the Borrower and its
Consolidated Subsidiaries taken as a whole, (b) the rights and remedies of the
Administrative Agent, the Collateral Agent, or the Banks against the Borrower
under any of the Loan Documents, or the ability of the Borrower to perform its
obligations under the Loan Documents to which it is a party, as applicable, or
(c) the legality, validity or enforceability of any Loan Document against the
Borrower.

                  "Moody's" means Moody's Investor Services, Inc.

                  "Mortgage" means a mortgage, deed of trust, deed to secure
debt, or other agreement executed by the Borrower or any of its Subsidiaries to
grant and convey to the Collateral Agent a Lien upon any real property of the
Borrower or any of its Subsidiaries.

                                       12
<PAGE>

                  "Multiemployer Plan" shall have the meaning set forth in
Section 4001(a)(3) of ERISA.

                  "National Currency Unit" has the meaning set forth in Section
9.19.

                  "Net Income" means, as applied to any Person for any period,
the aggregate amount of net income of such Person, after taxes, for such period,
as determined in accordance with GAAP.

                  "Notes" means each of the Syndicated Dollar Loan Notes or
Swing Loan Notes, or any or all of them, as the context shall require.

                  "Notice of Borrowing" has the meaning set forth in Section
2.02(a).

                  "Notice of Continuation or Conversion" has the meaning set
forth in Section 2.04.

                  "Operating Profits" means, as applied to any Person for any
period, the operating income of such Person for such period, as determined in
accordance with GAAP.

                  "Original Closing Date" means October 15, 1999.

                  "Participant" has the meaning set forth in Section 9.08(b).

                  "PBGC" means the Pension Benefit Guaranty Corporation or any
entity succeeding to any or all of its functions under ERISA.

                  "Permitted Acquisition" means an acquisition of greater than
50% of the outstanding voting Capital Stock of a Person (or all or substantially
all of the assets of a Person or a division or line of business of a Person) so
long as: (i) the consideration paid by the Borrower or Subsidiary is capital
stock of the Borrower; (ii) the proposed acquisition does not, on a pro forma
basis, reduce the Consolidated EBITDA of the Borrower during the four Fiscal
Quarters preceding the effective date of such acquisition; (iii) the acquisition
does not require a cash investment by the Borrower to support working capital or
increased projected Capital Expenditures and (iv) after giving effect to such
acquisition, the Borrower is in compliance with the covenants set forth in
Sections 5.20, 5.21 and 5.22 herein on a pro forma basis.

                  "Permitted Sale Leasebacks" shall have the meaning set forth
in Section 5.05(b).

                  "Person" means an individual, a corporation, a partnership, a
limited liability company, an unincorporated association, a trust or any other
entity or organization, including, but not limited to, a government or political
subdivision or an agency or instrumentality thereof.

                  "Plan" means at any time an employee pension benefit plan
which is covered by Title IV of ERISA or subject to the minimum funding
standards under Section 412 of the Code and is either (i) maintained by a member
of the Controlled Group for employees of any member of the Controlled Group or
(ii) maintained pursuant to a collective bargaining agreement or any other
arrangement under which more than one employer makes contributions and to which
a

                                       13
<PAGE>

member of the Controlled Group is then making or accruing an obligation to
make contributions or has within the preceding 5 plan years made contributions.

                  "Prime Rate" refers to that interest rate so denominated, set
and published by Wachovia from time to time as an interest rate basis for
borrowings. The Prime Rate is but one of several interest rate bases used by
Wachovia. Wachovia lends at interest rates above and below the Prime Rate.

                  "Properties" means all real property owned, leased or
otherwise used or occupied by the Borrower or any Subsidiary, wherever located.

                  "Quarterly Payment Date" means each March 31, June 30,
September 30 and December 31, or, if any such day is not a Domestic Business
Day, the next succeeding Domestic Business Day.

                  "Receivables" means all rights of the Borrower or its
Subsidiaries to payment, whether constituting an account, chattel paper,
instrument, general intangible or otherwise, arising from the sale of goods or
services (including rights under bill and hold arrangements) by the Borrower or
its Subsidiary (and including the right to payment of any interest or finance
charges and other obligations with respect thereto) and the books and documents
related thereto.

                  "Receivables Purchase Agreement" means (i) the Accounts
Receivable Purchase Agreement dated as of January 31, 2002 by and among Russell
Financial, the Borrower and SunTrust Bank or (ii) any agreement substantially
identical to such Accounts Receivable Purchase Agreement, but pursuant to which
the Borrower and its relevant Subsidiaries factor Receivables directly without
first transferring them to Russell Financial, together in each case with any
bill of sale delivered in connection therewith, in each case, as such agreements
may be amended, restated, modified or otherwise supplemented with the prior
written consent of the Administrative Agent (such consent not to be unreasonably
withheld or delayed).

                  "Receivables Purchase Documents" means, collectively, the
Receivables Purchase Agreement, the Intercompany Receivables Purchase Agreement
and any and all other documents executed or delivered in connection with or
pursuant to the Receivables Purchase Agreement.

                  "Redeemable Preferred Stock" of any Person means any preferred
stock issued by such Person which is at any time prior to the Termination Date
either (i) mandatorily redeemable (by sinking fund or similar payments or
otherwise) or (ii) redeemable at the option of the holder thereof.

                  "Refunding Loan" means a new Syndicated Loan made on the day
on which an outstanding Syndicated Loan is maturing or a Base Rate Borrowing is
being converted to a Fixed Rate Borrowing, if and to the extent that the
proceeds thereof are used for the purpose of paying such maturing Loan or Loan
being converted, excluding any difference between the amount of such maturing
Loan or Loan being converted and any greater amount being borrowed on such day
and actually either being made available to the Borrower pursuant to Section
2.02(c) or remitted to the Administrative Agent as provided in Section 2.13, in
each case as contemplated in Section 2.02(d).

                                       14
<PAGE>

                  "Regulation D" means Regulation D of the Board of Governors of
the Federal Reserve System, as in effect from time to time, together with all
official rulings and interpretations issued thereunder.

                  "Regulation U" means Regulation U of the Board of Governors of
the Federal Reserve System, as in effect from time to time, together with all
official rulings and interpretations issued thereunder.

                   "Regulation X" means Regulation X of the Board of Governors
of the Federal Reserve System, as in effect from time to time, together with all
official rulings and interpretations issued thereunder.

                  "Reimbursement Obligation" the obligation of the Borrower to
reimburse the Issuing Bank pursuant to Section 2.15(e) for amounts drawn under
Letters of Credit.

                  "Related Fund" means, with respect to any Bank that is a fund
that invests in bank loans, any other fund that invests in bank loans and is
advised or managed by the same investment advisor as such Bank.

                  "Reported Net Income" means, for any period, the Net Income of
the Borrower and its Consolidated Subsidiaries determined on a consolidated
basis.

                  "Required Banks" means at any time Banks having at least 51%
of the aggregate amount of the Commitments or, if the Commitments are no longer
in effect, Banks holding at least 51% of the aggregate outstanding principal
amount of the Revolving Extensions of Credit.

                  "Requirement of Law" means, as to any Person, the Certificate
of Incorporation and By-Laws or other organizational or governing documents of
such Person, and any law, treaty, rule or regulation or determination of an
arbitrator or a court or other Authority, in each case applicable to or binding
upon such Person or any of its property or to which such Person or any of its
property is subject.

                  "Restatement Effective Date" means January 31, 2002.

                  "Restrictive Agreement" means an agreement (other than any of
the Loan Documents) that, if and for so long as the Borrower or any Subsidiary
is a party thereto, would prohibit, condition or restrict the Borrower's or such
Subsidiary's right to incur or repay Debt (including any of the Loans); grant
Liens upon any of the Borrower's or such Subsidiary's Properties or other
assets, whether real or personal; declare or make Restricted Payments; amend,
modify, extend or renew any agreement evidencing Debt (including any of the Loan
Documents); or repay any Debt owed by the Borrower to any Subsidiary or by any
Subsidiary to the Borrower or another Subsidiary.

                  "Restricted Payment" means (i) any dividend or other
distribution on any shares of the Borrower's or any Subsidiary's Capital Stock
(except dividends payable in shares of such Capital Stock) or (ii) any payment
on account of the purchase, redemption, retirement or acquisition by the
Borrower or any of its Subsidiaries of (a) any shares of the Borrower's or such
Subsidiary's Capital Stock (except shares acquired upon the conversion thereof
into other shares

                                       15
<PAGE>

of such Capital Stock) or (b) any option, warrant or other right to acquire
shares of the Borrower's or such Subsidiary's Capital Stock.

                  "Restructuring Charges" means any and all restructuring,
relocation and other unusual charges incurred in connection with the
Restructuring Program in Fiscal Years 1998 through 2001, not exceeding
$357,000,000 on a pre-tax basis or $233,000,000 on an after-tax basis.

                  "Restructuring Program" means the restructuring program and
related plans, including the establishment of a dual corporate headquarters,
publicly announced by the Borrower on July 22, 1998, as amended, modified,
extended or expanded through the Restatement Effective Date.

                  "Reuters Screen" shall mean, when used in connection with any
designated page and the London Interbank Offered Rate or IBOR, the display page
so designated on the Reuters Monitor Money Rates Service (or such other page as
may replace that page on that service for the purpose of displaying rates
comparable to the London Interbank Offered Rate or IBOR).

                  "Revolving Extensions of Credit" as to any Bank at any time,
an amount equal to the sum of (a) the aggregate principal amount of all
Syndicated Dollar Loans and the Dollar Equivalent of the Foreign Currency Loans
held by such Bank then outstanding, (b) such Bank's Revolving Percentage of the
L/C Obligations then outstanding and (c) such Bank's Revolving Percentage of the
aggregate principal amount of Swing Loans then outstanding.

                  "Revolving Percentage" as to any Bank at any time, the
percentage which such Bank's Commitment then constitutes of the Total
Commitments or, at any time after the Commitments shall have expired or
terminated, the percentage which the aggregate principal amount of such Bank's
Syndicated Dollar Loans and Foreign Currency Loans then outstanding constitutes
of the aggregate principal amount of the Syndicated Dollar Loans and Foreign
Currency Loans then outstanding, provided, that, in the event that the
Syndicated Dollar Loans and Foreign Currency Loans are paid in full prior to the
reduction to zero of the Total Revolving Extensions of Credit, the Revolving
Percentages shall be determined in a manner designed to ensure that the other
outstanding Revolving Extensions of Credit shall be held by the Banks on a
comparable basis.

                  "Russell Family" means, collectively,

                  (a)      the lineal descendants (including Persons who have
         been legally adopted by a lineal descendant) and the spouses of lineal
         descendants of Benjamin Russell (founder of the Borrower); and

                  (b)      the Benjamin and Roberta Russell Foundation,
         Incorporated; and

                  (c)      any trust directly or indirectly controlled by, or
         for the benefit of, one or more of such Persons described in clause (a)
         above or directly or indirectly controlled by any corporation or
         partnership described in clause (d) below; and

                                       16
<PAGE>

                  (d)      any corporation or partnership in which voting
         control as to such entity is held, directly or indirectly, by any one
         or more of the Persons described in clause (a) above or by such trusts
         described in clause (c) above; and

                  (e)      any Person acting as the executor or administrator of
         the estate or other legal representative of any Person described in
         clause (a) above.

                  "Russell Financial" means Russell Financial Services, Inc., a
Delaware corporation.

                  "S&P" means Standard & Poor's Rating Group, a division of
McGraw-Hill, Inc.

                  "Secured Debt" has the meaning given to such term in the
Intercreditor Agreement.

                  "Secured Parties" has the meaning given to such term in the
Intercreditor Agreement.

                  "Security Documents" means the Intercreditor Agreement,
Guarantee and Collateral Agreement, the Collateral Agent Fee Letter and all
other security agreements, Mortgages, collateral assignments, and other
agreements securing, with the lien granted in favor of Collateral Agent, all of
the Secured Debt for the benefit of the Secured Parties.

                  "Stated Term" means the term of the Commitments, which
commenced on the Original Closing Date and shall end on October 15, 2004, unless
sooner terminated as provided herein.

                  "Subsidiary" means any corporation or other entity of which
securities or other ownership interests having ordinary voting power to elect a
majority of the board of directors or other persons performing similar functions
are at the time directly or indirectly owned by the Borrower.

                  "Subsidiary Guarantor" means each Subsidiary of the Borrower
that is party to the Guarantee and Collateral Agreement.

                  "Swing Loan" means a Loan made by Wachovia pursuant to Section
2.01(b), which must be a Base Rate Loan or a Transaction Rate Loan.

                  "Swing Loan Note" means the promissory note of the Borrower,
substantially in the form of Exhibit A-2, evidencing the obligation of the
Borrower to repay the Swing Loans, together with all amendments, consolidations,
modifications, renewals, and supplements thereto.

                  "Syndicated Dollar Loan Notes" means the promissory notes of
the Borrower, substantially in the form of Exhibit A-1, evidencing the
obligation of the Borrower to repay the Syndicated Dollar Loans, together with
all amendments, consolidations, modifications, renewals and supplements thereto.

                                       17
<PAGE>

                  "Syndicated Dollar Loans" means Base Rate Loans or Euro-Dollar
Loans made pursuant to the terms and conditions set forth in Section 2.01.

                  "Syndicated Loans" means Syndicated Dollar Loans and Foreign
Currency Loans.

                  "Taxes" has the meaning set forth in Section 2.13(d).

                  "Telerate" means, when used in connection with any designated
page and IBOR, the display page so designated on the Telerate service screen (or
such other page as may replace that page on that service for the purpose of
displaying rates comparable to IBOR).

                  "Termination Date" means whichever is the earlier to occur of
(i) the last day of the Stated Term, (ii) the date that the Commitments are
terminated pursuant to Section 6.01 following the occurrence of an Event of
Default or (iii) the date that the Borrower terminates the Commitments entirely
pursuant to Section 2.09.

                  "Third Parties" means all lessees, sublessees, licensees and
other users of the Properties, excluding those users of the Properties in the
ordinary course of the Borrower's business and on a temporary basis.

                  "Total Commitments" at any time, the aggregate amount of the
Commitments then in effect.

                  "Total Revolving Extensions of Credit" at any time, the
aggregate amount of the Revolving Extensions of Credit of the Banks outstanding
at such time.

                  "Transferee" has the meaning set forth in Section 9.08(d).

                  "Transaction Rate" has the meaning set forth in Section
2.01(b)(ii).

                  "Transaction Rate Loan" means a Swing Loan to be made as a
Transaction Rate Loan pursuant to Section 2.01(b).

                  "Transaction Rate Request" has the meaning set forth in
Section 2.01(b)(ii).

                  "Unfunded Vested Liabilities" means, with respect to any Plan
at any time, the amount (if any) by which (i) the present value of all vested
nonforfeitable benefits under such Plan exceeds (ii) the fair market value of
all Plan assets allocable to such benefits, all determined as of the then most
recent valuation date for such Plan, but only to the extent that such excess
represents a potential liability of a member of the Controlled Group to the PBGC
or the Plan under Title IV of ERISA.

                  "Unused Commitment" means at any date with respect to any
Bank, an amount equal to its Commitment less its Revolving Extensions of Credit.

                  "Wachovia" means Wachovia Bank, N.A., a national banking
association, and its successors.

                                       18
<PAGE>

                  "Wholly Owned Subsidiary" means any Subsidiary all of the
shares of capital stock or other ownership interests of which (except directors'
qualifying shares) are at the time directly or indirectly owned by the Borrower.

                  SECTION 1.02. ACCOUNTING TERMS AND DETERMINATIONS. Unless
otherwise specified herein, all terms of an accounting character used herein
shall be interpreted, all accounting determinations hereunder shall be made, and
all financial statements required to be delivered hereunder shall be prepared,
in accordance with GAAP, applied on a basis consistent (except for changes
concurred in by the Borrower's independent public accountants or otherwise
required by a change in GAAP) with the most recent audited consolidated
financial statements of the Borrower and its Consolidated Subsidiaries delivered
to the Banks unless with respect to any such change concurred in by the
Borrower's independent public accountants or required by GAAP, in determining
compliance with any of the provisions of this Agreement or any of the other Loan
Documents: (i) the Borrower shall have objected to determining such compliance
on such basis at the time of delivery of such financial statements, or (ii) the
Required Banks shall so object in writing within 30 days after the delivery of
such financial statements, in either of which events such calculations shall be
made on a basis consistent with those used in the preparation of the latest
financial statements as to which such objection shall not have been made (which,
if objection is made in respect of the first financial statements delivered
under Section 5.01 hereof, shall mean the financial statements referred to in
Section 4.04).

                  SECTION 1.03. REFERENCES. Unless otherwise indicated,
references in this Agreement to "Articles", "Exhibits", "Schedules", "Sections"
and other Subdivisions are references to articles, exhibits, schedules, sections
and other subdivisions hereof.

                  SECTION 1.04. USE OF DEFINED TERMS. All terms defined in this
Agreement shall have the same defined meanings when used in any of the other
Loan Documents, unless otherwise defined therein or unless the context shall
require otherwise.

                  SECTION 1.05. TERMINOLOGY. All personal pronouns used in this
Agreement, whether used in the masculine, feminine or neuter gender, shall
include all other genders; the singular shall include the plural, and the plural
shall include the singular. Titles of Articles and Sections in this Agreement
are for convenience only, and neither limit nor amplify the provisions of this
Agreement.

                  SECTION 1.06. OTHER DEFINITIONAL PROVISIONS. As used herein
and in the other Loan Documents, and any certificate or other document made or
delivered pursuant hereto or thereto, (i) the words "include", "includes" and
"including" shall be deemed to be followed by the phrase "without limitation",
(ii) the words "asset" and "property" shall be construed to have the same
meaning and effect and to refer to any and all tangible and intangible assets
and properties, including cash, Capital Stock, securities, revenues, accounts,
leasehold interests and contract rights, and (iii) references to agreements or
instruments shall, unless otherwise specified, be deemed to refer to such
agreements or instruments, as the case may be, as amended, supplemented,
restated or otherwise modified from time to time.

                                       19
<PAGE>

                                   ARTICLE II.

                                   THE CREDITS

                  SECTION 2.01. COMMITMENTS TO LEND SYNDICATED LOANS AND SWING
LOANS.

                  (a)      Each Bank (except as to Aliant Bank, with respect to
Foreign Currency Loans, as set forth in the last two sentences of this paragraph
(a)) severally agrees, on the terms and conditions set forth herein, to make
Syndicated Loans (which may be, at the option of the Borrower and subject to the
terms and conditions hereof, Foreign Currency Loans or Syndicated Dollar Loans,
and Syndicated Dollar Loans may be Base Rate Loans or Euro-Dollar Loans) to the
Borrower (and with respect to Foreign Currency Loans, such Borrower may be
either Russell Corporation or Russell Europe Limited) from time to time before
the Termination Date; provided that,

                           (i)      immediately after each such
                  Syndicated Loan is made, the sum of (i) the
                  aggregate outstanding principal amount of the
                  Syndicated Dollar Loans and the Dollar Equivalent of
                  the Foreign Currency Loans by such Bank and (ii)
                  such Bank's Revolving Percentage of the L/C
                  Obligations and Swing Loans then outstanding shall
                  not exceed the amount of its Commitment,

                           (ii)     (x) the sum of (a) the aggregate
                  outstanding principal amount of all Syndicated
                  Dollar Loans and Swing Loans of all Banks, (b) the
                  Dollar Equivalent of the Foreign Currency Loans of
                  all Banks and (c) the L/C Obligations shall not
                  exceed the lesser of (1) the aggregate amount of the
                  Commitments and (2) the limitations, if any, on
                  borrowings contained in any agreement or other
                  instrument binding upon the Borrower or any of its
                  Subsidiaries; and (y) the Dollar Equivalent of the
                  aggregate outstanding principal amount of all
                  Foreign Currency Loans shall not exceed $25,000,000,
                  and

                           (iii)    the sum of (i) the aggregate
                  outstanding principal amount of all Syndicated
                  Dollar Loans and Swing Loans of all Banks, (ii) the
                  Dollar Equivalent of the Foreign Currency Loans of
                  all Banks and (iii) the L/C Obligations shall not
                  exceed $185,000,000 (the "Clean-Down Amount") at any
                  time during the period from December 1 through
                  February 28 of each year.

The Dollar Equivalent of each Foreign Currency Loan on the date each Foreign
Currency Loan is disbursed pursuant hereto shall be deemed to be the amount of
such Foreign Currency Loan outstanding for the purpose of calculating the
aggregate outstanding principal amount of the Foreign Currency Loans for
purposes of clause (ii) of Section 2.01(a); provided, however, that if at the
time of receipt of any Notice of Borrowing, the sum of (a) the aggregate
outstanding principal amount of all Syndicated Dollar Loans and Swing Loans of
all Banks, (b) the Dollar Equivalent of the aggregate principal amount of the
Foreign Currency Loans of all Banks and (c) the L/C Obligations is equal to or
greater than 75% of the aggregate amount of all of the

                                       20
<PAGE>

Commitments, then the Dollar Equivalent of each Foreign Currency Loan shall be
calculated as of such date, rather than as of the date such Foreign Currency
Loans were disbursed, and in the event that, as a result of such calculation,
the sum of (a) the aggregate outstanding principal amount of all Syndicated
Dollar Loans and Swing Loans of all Banks, (b) the Dollar Equivalent of the
aggregate principal amount of the Foreign Currency Loans of all Banks and (c)
the L/C Obligations exceeds the aggregate amount of all of the Commitments, then
(1) no additional Borrowings shall be permitted until the payment required by
clause (2) below has been made and (2) the Foreign Currency Loans shall be
subject to mandatory repayment pursuant to the provisions of Section 2.12(b).
Each Syndicated Borrowing under this Section shall be in an aggregate principal
amount of (x) $1,000,000 or any larger integral multiple of $500,000, in the
case of Base Rate Loans, and (y) $5,000,000 (or the Dollar Equivalent thereof in
any Foreign Currency) or any larger integral multiple of $1,000,000 (or the
Dollar Equivalent thereof in any Foreign Currency) in the case of Fixed Rate
Loans (except in any case that any such Syndicated Borrowing may be in the
aggregate amount of the Unused Commitments) and shall be made from the several
Banks ratably in proportion to their respective Commitments. Within the
foregoing limits, the Borrower may borrow under this Section, repay or, to the
extent permitted by Section 2.11, prepay Syndicated Loans and reborrow under
this Section at any time before the Termination Date. Notwithstanding the
foregoing, if there shall occur on or prior to the date of any Foreign Currency
Loan any change in national or international financial, political or economic
conditions or currency exchange rates or exchange controls which would in the
opinion of the Administrative Agent make it impracticable to make such Foreign
Currency Loan, then the Administrative Agent shall forthwith give notice thereof
to the Borrower and the Banks, and such Foreign Currency Loan shall be made on
such date as Base Rate Loans, unless the Borrower notifies the Administrative
Agent at least two Domestic Business Days before such date that it elects not to
borrow on such date. Aliant Bank has indicated that it is unable to fund Foreign
Currency Loans, and Wachovia and Aliant Bank have agreed that: (i) Wachovia will
fund Aliant Bank's ratable share of any Foreign Currency Loan (such share of any
Foreign Currency Loan made by Wachovia being the "Aliant Foreign Currency
Share"), and Wachovia's Foreign Currency Loan Note shall also evidence such
Foreign Currency Loans made on behalf of Aliant Bank; (ii) immediately upon the
making of any Foreign Currency Loan by Wachovia, Aliant Bank shall be deemed to
have irrevocably and unconditionally purchased and received from Wachovia,
without recourse or warranty, a 100% undivided risk participation in such
Foreign Currency Loan in the amount of the Aliant Foreign Currency Share; (iii)
in the event that the applicable Borrower shall not have repaid any Foreign
Currency Loan made by Wachovia as and when it becomes due pursuant hereto,
Wachovia shall promptly notify Aliant Bank of such failure, and Aliant Bank
shall promptly and unconditionally pay to Wachovia, in Dollars and in same day
funds, the Dollar Equivalent of the Aliant Foreign Currency Share of such
Foreign Currency Loan, and (iv) if such payment is not promptly made, hold
Wachovia harmless and indemnify it as to any loss incurred by Wachovia arising
from any change in the value of Dollars in relation to such Foreign Currency
between the date such payment became due and the date of payment thereof, and
pay to Wachovia interest for such period on the amount of such payment at the
Base Rate for the first 3 days and thereafter at the Default Rate.

                  (b)      Swing Loans.

                           (i)      In addition to the foregoing, Wachovia shall
                  from time to time, upon the request of the Borrower, if the
                  applicable conditions precedent in Article

                                       21
<PAGE>

                  III have been satisfied, make Swing Loans to the Borrower in
                  an aggregate principal amount at any time outstanding not
                  exceeding $15,000,000; provided that, immediately after such
                  Swing Loan is made, the conditions set forth in clause (ii) of
                  Section 2.01(a) shall have been satisfied. Each Swing Loan
                  Borrowing under this Section 2.01(b) shall be in an aggregate
                  principal amount of $100,000 or any larger multiple of
                  $25,000. Within the foregoing limits, the Borrower may borrow
                  under this Section 2.01(b), prepay and reborrow under this
                  Section 2.01(b) at any time before the Termination Date. All
                  Swing Loans shall be made as Base Rate Loans or, subject to
                  the provisions of clause (ii) below, Transaction Rate Loans.

                           (ii)     Swing Loans may be Transaction Rate Loans,
                  if the Administrative Agent shall have determined that such
                  Transaction Rate Loan, including the principal amount thereof,
                  the Interest Period and the Transaction Rate applicable
                  thereto, has been expressly agreed to by the Borrower and
                  Wachovia (such agreement may be obtained by telephone,
                  confirmed promptly to the Administrative Agent in writing)
                  pursuant to the following procedures. If the Borrower desires
                  a Transaction Rate Loan, (a) the Borrower shall provide
                  Wachovia, with a copy to the Administrative Agent, with notice
                  of a request (a "Transaction Rate Request") for a quote for a
                  Transaction Rate Borrowing prior to 1:00 p.m. (Atlanta,
                  Georgia time) on the date (which shall be a Domestic Business
                  Day) of the proposed Transaction Rate Borrowing, which
                  Transaction Rate Request shall include the principal amount
                  and proposed Interest Period of the relevant Transaction Rate
                  Borrowing, (b) prior to 1:30 p.m. (Atlanta, Georgia time) on
                  such date, Wachovia shall furnish the Borrower, with a copy to
                  the Administrative Agent, with its rate quote (a "Transaction
                  Rate Quote") via facsimile transmission, (c) the Borrower
                  shall immediately inform Wachovia and the Administrative Agent
                  of its decision as to whether to request a Transaction Rate
                  Borrowing at the Transaction Rate specified in such
                  Transaction Rate Quote (a "Transaction Rate") (which may be
                  done by telephone and promptly confirmed in writing, and which
                  decision shall be irrevocable), and (d) if the Borrower has so
                  informed Wachovia and the Administrative Agent that it does
                  desire a Transaction Rate Borrowing at the Transaction Rate
                  specified in such Transaction Rate Quote, then by 2:00 p.m.
                  (Atlanta, Georgia time) on the date of such decision, Wachovia
                  shall make such Transaction Rate Borrowing, with interest
                  accruing thereon at such Transaction Rate, available to the
                  Administrative Agent in accordance with the procedures set
                  forth herein. The Administrative Agent shall notify the Banks
                  of any Transaction Rate Borrowing pursuant hereto.

                           (iii)    At any time, upon the request of Wachovia,
                  each Bank other than Wachovia shall, on the third Domestic
                  Business Day after such request is made, purchase a
                  participating interest in Swing Loans in an amount equal to
                  its ratable share (based upon its respective Commitment) of
                  such Swing Loans. On such third Domestic Business Day, each
                  Bank will immediately transfer to Wachovia, in immediately
                  available funds, the amount of its participation. Whenever, at
                  any time after Wachovia has received from any such Bank its
                  participating interest in a Swing Loan, the Administrative
                  Agent receives any payment on account

                                       22
<PAGE>

                  thereof, the Administrative Agent will distribute to such Bank
                  its participating interest in such amount (appropriately
                  adjusted, in the case of interest payments, to reflect the
                  period of time during which such Bank's participating interest
                  was outstanding and funded); provided, however, that in the
                  event that such payment received by the Administrative Agent
                  is required to be returned, such Bank will return to the
                  Administrative Agent any portion thereof previously
                  distributed by the Administrative Agent to it. Each Bank's
                  obligation to purchase such participating interests shall be
                  absolute and unconditional and shall not be affected by any
                  circumstance, including, without limitation: (i) any set-off,
                  counterclaim, recoupment, defense or other right which such
                  Bank or any other Person may have against Wachovia requesting
                  such purchase or any other Person for any reason whatsoever;
                  (ii) the occurrence or continuance of a Default or an Event of
                  Default or the termination of the Commitments; (iii) any
                  adverse change in the condition (financial or otherwise) of
                  the Borrower, the Parent or any other Person; (iv) any breach
                  of this Agreement by the Borrower or any other Bank; or (v)
                  any other circumstance, happening or event whatsoever, whether
                  or not similar to any of the foregoing.

                  SECTION 2.02. METHOD OF BORROWING SYNDICATED LOANS AND SWING
LOANS.

                  (a)      For all Loans other than Transaction Rate Loans, the
Borrower shall give the Administrative Agent notice (a "Notice of Borrowing"),
which shall be substantially in the form of Exhibit E-1 (and for Foreign
Currency Borrowings, Russell Europe Limited hereby authorizes Russell
Corporation to execute and deliver a Notice of Borrowing and a Notice of
Continuation or Conversion, as the case may be, in its name, as its agent),
prior to (i) 9:30 A.M. (Atlanta, Georgia time) for Base Rate Borrowings which
are Syndicated Borrowings, and 1:00 P.M. (Atlanta, Georgia time) for Base Rate
Borrowings which are Swing Loan Borrowings, in each case on the same Domestic
Business Day of each Base Rate Borrowing, and (ii) 11:00 A.M. (Atlanta, Georgia
time) for all Syndicated Borrowings at least 3 Euro-Dollar Business Days before
each Euro-Dollar Borrowing and at least 3 Foreign Currency Business Days before
each Foreign Currency Borrowing, specifying:

                           (i)      the date of such Borrowing, which shall be a
                  Domestic Business Day in the case of a Base Borrowing, a
                  Euro-Dollar Business Day in the case of a Euro-Dollar
                  Borrowing and a Foreign Currency Business Day in the case of a
                  Foreign Currency Borrowing

                           (ii)     the aggregate amount of such Borrowing,

                           (iii)    whether the Syndicated Loans comprising such
                  Borrowing are to be Base Rate Loans, Euro-Dollar Loans or
                  Foreign Currency Loans, or stating that such Borrowing is to
                  be a Swing Loan Borrowing, and if such Loans are to be Foreign
                  Currency Loans, specifying the Foreign Currency, and

                           (iv)     in the case of a Fixed Rate Borrowing, the
                  duration of the Interest Period applicable thereto, subject to
                  the provisions of the definition of Interest Period.

                                       23
<PAGE>

                  (b)      Upon receipt of a Notice of Borrowing, the
Administrative Agent shall promptly notify each Bank of the contents thereof and
(unless such Borrowing is a Swing Loan Borrowing) of such Bank's ratable share
of such Syndicated Borrowing and such Notice of Borrowing, once received by the
Administrative Agent, shall not thereafter be revocable by the Borrower.

                  (c)      Not later than 11:00 A.M. (Atlanta, Georgia time) on
the date of each Syndicated Borrowing, each Bank shall (except as provided in
paragraph (d) of this Section) make available its ratable share of such
Syndicated Borrowing, in Federal or other funds immediately available in
Atlanta, Georgia, to the Administrative Agent at its address determined pursuant
to Section 9.01 (or, with respect to Foreign Currency Borrowings, to the
Administrative Agent's designated foreign correspondent bank at the address
specified by the Administrative Agent), which funds shall be in Dollars, if such
Borrowing is a Dollar Borrowing, and in the applicable Foreign Currency, if such
Borrowing is a Foreign Currency Borrowing. Unless the Administrative Agent
determines that any applicable condition specified in Article III has not been
satisfied, the Administrative Agent will make the funds so received from the
Banks available to the Borrower at the Administrative Agent's aforesaid address.
Unless the Administrative Agent receives notice from a Bank, at the
Administrative Agent's address referred to in or specified pursuant to Section
9.01, no later than 4:00 P.M. (local time at such address) on the Domestic
Business Day before the date of a Syndicated Borrowing stating that such Bank
will not make a Syndicated Loan in connection with such Syndicated Borrowing,
the Administrative Agent shall be entitled to assume that such Bank will make a
Syndicated Loan in connection with such Syndicated Borrowing and, in reliance on
such assumption, the Administrative Agent may (but shall not be obligated to)
make available such Bank's ratable share of such Syndicated Borrowing to the
Borrower for the account of such Bank. If the Administrative Agent makes such
Bank's ratable share available to the Borrower and such Bank does not in fact
make its ratable share of such Syndicated Borrowing available on such date, the
Administrative Agent shall be entitled to recover such Bank's ratable share from
such Bank or the Borrower (and for such purpose shall be entitled to charge such
amount to any account of the Borrower maintained with the Administrative Agent
after giving the Borrower 2 Domestic Business Days' prior notice thereof),
together with interest thereon for each day during the period from the date of
such Syndicated Borrowing until such sum shall be paid in full at a rate per
annum equal to the rate at which the Administrative Agent determines that it
obtained (or could have obtained) overnight Federal funds to cover such amount
for each such day during such period, provided that (i) any such payment by the
Borrower of such Bank's ratable share and interest thereon shall be without
prejudice to any rights that the Borrower may have against such Bank and (ii)
until such Bank has paid its ratable share of such Syndicated Borrowing,
together with interest pursuant to the foregoing, it will have no interest in or
rights with respect to such Syndicated Borrowing for any purpose hereunder. If
the Administrative Agent does not exercise its option to advance funds for the
account of such Bank, it shall forthwith notify the Borrower of such decision.
Unless the Administrative Agent determines that any applicable condition
specified in Article III has not been satisfied, Wachovia will make available to
the Borrower at Wachovia's Lending Office the amount of any such Borrowing which
is a Swing Loan Borrowing.

                  (d)      If any Bank makes a new Syndicated Loan hereunder on
a day on which the Borrower is to repay all or any part of an outstanding
Syndicated Loan from such Bank, such

                                       24
<PAGE>

Bank shall apply the proceeds of its new Syndicated Loan to make such repayment
as a Refunding Loan and only an amount equal to the difference (if any) between
the amount being borrowed and the amount of such Refunding Loan shall be made
available by such Bank to the Administrative Agent as provided in paragraph (c)
of this Section, or remitted by the Borrower to the Administrative Agent as
provided in Section 2.13, as the case may be; provided, however, that if the
Syndicated Loan which is to be repaid is a Foreign Currency Loan, the foregoing
provisions shall apply only if the new Syndicated Loan is to be made in the same
Foreign Currency.

                  (e)      Notwithstanding anything to the contrary contained in
this Agreement, no Fixed Rate Borrowing may be made if there shall have occurred
a Default or an Event of Default, which Default or Event of Default shall not
have been cured or waived, and in such event, all Refunding Loans shall be made
as Base Rate Loans (but shall bear interest at the Default Rate, if applicable).

                  (f)      In the event that a Notice of Borrowing fails to
specify whether the Syndicated Loans comprising such Syndicated Borrowing are to
be Base Rate Loans, Euro-Dollar Loans or Foreign Currency Loans, such Syndicated
Loans shall be made as Base Rate Loans. If the Borrower is otherwise entitled
under this Agreement to repay any Syndicated Loans maturing at the end of an
Interest Period applicable thereto with the proceeds of a new Syndicated
Borrowing, and the Borrower fails to repay such Syndicated Loans using its own
moneys and fails to give a Notice of Borrowing in connection with such new
Syndicated Borrowing, a new Syndicated Borrowing shall be deemed to be made on
the date such Syndicated Loans mature in an amount equal to the principal amount
of the Syndicated Loans so maturing, and the Syndicated Loans comprising such
new Syndicated Borrowing shall be Base Rate Loans, which shall be in the Dollar
Equivalent of such maturing Loans, if such maturing Loans were Foreign Currency
Loans.

                  (g)      Notwithstanding anything to the contrary contained
herein, there shall not be more than 8 Interest Periods (other than for
Transaction Rate Loans, which shall not be limited in number) outstanding at any
given time.

                  SECTION 2.03. [RESERVED].

                  SECTION 2.04. CONTINUATION AND CONVERSION ELECTIONS. By
delivering a notice (a "Notice of Continuation or Conversion"), which shall be
substantially in the form of Exhibit E-2, to the Administrative Agent on or
before 12:00 P.M., Atlanta, Georgia time, on a Domestic Business Day (or
Euro-Dollar Business Day, in the case of Euro-Dollar Loans outstanding, or
Foreign Currency Business Day, in the case of Foreign Currency Loans
outstanding), the Borrower may from time to time irrevocably elect, by notice on
the same Domestic Business Day, in the case of Base Rate Loans, or 3 Euro-Dollar
Business Days, in the case of Euro-Dollar Loans, or 3 Foreign Currency Business
Days, in the case of Foreign Currency Loans, that all, or any portion be, (i) in
the case of Base Rate Loans, converted into Euro-Dollar Loans or Foreign
Currency Loans in an aggregate principal amount of $5,000,000 or any larger
integral multiple of $1,000,000 or, (ii) in the case of Euro-Dollar Loans,
converted into Base Rate Loans or Foreign Currency Loans in an aggregate
principal amount of $5,000,000 or any larger integral multiple of $1,000,000 (or
the Dollar Equivalent thereof, in the case of Foreign Currency Loans) or

                                       25
<PAGE>

continued as Euro-Dollar Loans in an aggregate principal amount of $5,000,000 or
any larger integral multiple of $1,000,000, or (iii) in the case of Foreign
Currency Loans, continued as Foreign Currency Loans in the same Foreign Currency
(in the absence of delivery of a Notice of Continuation or Conversion with
respect to any Euro-Dollar Loan at least 3 Euro-Dollar Business Days before the
last day of the then current Interest Period with respect thereto, such
Euro-Dollar Loan shall, on such last day, automatically convert to a Base Rate
Loan); provided, however, that (x) each such conversion or continuation shall be
pro rated among the applicable outstanding Loans of all Lenders that have made
such Loans, and (y) no portion of the outstanding principal amount of any Loans
may be continued as, or be converted into, any Fixed Rate Loan when any Event of
Default has occurred and is continuing.

                  SECTION 2.05. NOTES.

                  (a)      The Syndicated Loans of each Bank shall be evidenced
by a single Syndicated Dollar Loan Note payable to the order of such Bank for
the account of its Lending Office in an amount equal to the original principal
amount of such Bank's Commitment and a single Foreign Currency Loan Note from
each of Russell Corporation and Russell Europe Limited, each payable to the
order of such Bank for the account of its Lending Office. The Swing Loans shall
be evidenced by a single Swing Loan Note payable to the order of Wachovia in the
original principal amount of $15,000,000.

                  (b)      Upon receipt of each Bank's Notes pursuant to Section
3.01, the Administrative Agent shall deliver such Notes to such Bank. Each Bank
shall record, and prior to any transfer of its Notes shall endorse on the
schedules forming a part thereof appropriate notations to evidence, the date,
amount and maturity of, and effective interest rate for, each Loan made by it,
the date and amount of each payment of principal made by the Borrower with
respect thereto, whether such Loan is a Base Rate Loan, Euro-Dollar Loan or
Foreign Currency Loan, and if a Foreign Currency Loan, a specification of the
Foreign Currency, and such schedules of each such Bank's Notes shall constitute
rebuttable presumptive evidence of the respective principal amounts owing and
unpaid on such Bank's Notes; provided that the failure of any Bank to make, or
any error in making, any such recordation or endorsement shall not affect the
obligation of the Borrower hereunder or under the Notes or the ability of any
Bank to assign its Notes. Each Bank is hereby irrevocably authorized by the
Borrower so to endorse its Notes and to attach to and make a part of any Note a
continuation of any such schedule as and when required.

                  SECTION 2.06. MATURITY OF LOANS.

                  (a)      Each Fixed Rate Loan included in any Borrowing shall
mature, and the principal amount thereof shall be due and payable, on the last
day of the Interest Period applicable to such Borrowing.

                  (b)      Notwithstanding the foregoing, the outstanding
principal amount of the Loans, if any, together with all accrued but unpaid
interest thereon, if any, shall be due and payable on the Termination Date.

                  SECTION 2.07. INTEREST RATES.

                                       26
<PAGE>

                  (a)      "Applicable Margin" means, beginning on the
Restatement Effective Date, (i) for any Base Rate Loan, 2.50% and (ii) for any
Euro-Dollar Loan or Foreign Currency Loan, 3.00%.

                  (b)      Each Base Rate Loan shall bear interest on the
outstanding principal amount thereof, for each day from the date such Loan is
made until it becomes due, at a rate per annum equal to the Base Rate for such
day plus the Applicable Margin. Such interest shall be payable on each Quarterly
Payment Date while such Base Rate Loan is outstanding and on the date such Base
Rate Loan is converted to a Fixed Rate Loan. Any overdue principal of and, to
the extent permitted by applicable law, overdue interest on any Base Rate Loan
shall bear interest, payable on demand, for each day until paid at a rate per
annum equal to the Default Rate.

                  (c)      Each Euro-Dollar Loan shall bear interest on the
outstanding principal amount thereof, for the Interest Period applicable
thereto, at a rate per annum equal to the sum of the Applicable Margin plus the
applicable Adjusted London Interbank Offered Rate for such Interest Period. Such
interest shall be payable for each Interest Period on the last day thereof and,
if such Interest Period is longer than 3 months, at intervals of 3 months after
the first day thereof. Any overdue principal of and, to the extent permitted by
law, overdue interest on any Euro-Dollar Loan shall bear interest, payable on
demand, for each day until paid at a rate per annum equal to the Default Rate.

                  The "Adjusted London Interbank Offered Rate" applicable to any
Interest Period means a rate per annum equal to the quotient obtained (rounded
upwards, if necessary, to the next higher 1/100th of 1%) by dividing (i) the
applicable London Interbank Offered Rate for such Interest Period by (ii) 1.00
minus the Euro-Dollar Reserve Percentage.

                  The "London Interbank Offered Rate" applicable to any
Euro-Dollar Loan means for the Interest Period of such Euro-Dollar Loan, the
rate per annum determined on the basis of the offered rate for deposits in
Dollars of amounts equal or comparable to the principal amount of such
Euro-Dollar Loan offered for a term comparable to such Interest Period, which
rates appear on Telerate Page 3750 effective as of 11:00 A.M., London time, 2
Euro-Dollar Business Days prior to the first day of such Interest Period,
provided that if no such offered rates appear on such page, the "London
Interbank Offered Rate" for such Interest Period will be the arithmetic average
(rounded upward, if necessary, to the next higher 1/100th of 1%) of rates quoted
by not less than 2 major banks in New York City, selected by the Administrative
Agent, at approximately 10:00 A.M., New York City time, 2 Euro-Dollar Business
Days prior to the first day of such Interest Period, for deposits in Dollars
offered by leading European banks for a period comparable to such Interest
Period in an amount comparable to the principal amount of such Euro-Dollar Loan.

                  "Euro-Dollar Reserve Percentage" means for any day that
percentage (expressed as a decimal) which is in effect on such day, as
prescribed by the Board of Governors of the Federal Reserve System (or any
successor) for determining the maximum reserve requirement for a member bank of
the Federal Reserve System in respect of "Eurocurrency liabilities" (or in
respect of any other category of liabilities which includes deposits by
reference to which the interest rate on Euro-Dollar Loans is determined or any
category of extensions of credit or other

                                       27
<PAGE>

assets which includes loans by a non-United States office of any Bank to United
States residents). The Adjusted London Interbank Offered Rate shall be adjusted
automatically on and as of the effective date of any change in the Euro-Dollar
Reserve Percentage.

                  (d)      Each Foreign Currency Loan shall bear interest on the
outstanding principal amount thereof, for the Interest Period applicable
thereto, at a rate per annum equal to the sum of the Applicable Margin plus the
applicable Adjusted IBOR Rate for such Interest Period. Such interest shall be
payable for each Interest Period on the last day thereof and, if such Interest
Period is longer than 3 months, at intervals of 3 months after the first day
thereof. Any overdue principal of and, to the extent permitted by law, overdue
interest on any Foreign Currency Loan shall bear interest, payable on demand,
for each day until paid at a rate per annum equal to the Default Rate.

                  "Adjusted IBOR Rate" means, with respect to each Interest
Period for a Foreign Currency Loan, the sum of (i) the rate obtained by dividing
(A) IBOR for such Interest Period by (B) a percentage equal to 1 minus the then
stated maximum rate (stated as a decimal) of all reserve requirements
(including, without limitation, any marginal, emergency, supplemental, special
or other reserves) applicable to any member bank of the Federal Reserve System
as defined in Regulation D (or against any successor category of liabilities as
defined in Regulation D), plus (ii) if the relevant Foreign Currency Loan is in
British pounds sterling, a percentage sufficient to compensate the Banks for the
cost of complying with any reserves, liquidity and/or special deposit
requirements of the Bank of England directly or indirectly affecting the
maintenance or funding of such Foreign Currency Loan.

                  "IBOR" means, for any Interest Period, with respect to Foreign
Currency Loans, the offered rate for deposits in the applicable Foreign
Currency, for a period comparable to the Interest Period and in an amount
comparable to the amount of such Foreign Currency Loan appearing on Telerate
Page 3750, or, if Telerate is unavailable the Reuters Screen Page FRBD, FRBE,
FRBF or FRBG, as applicable, or, if it is unavailable on either Telerate or the
Reuters Screen, then such rate shall be determined by the Administrative Agent
from any other interest rate reporting service of recognized standing designated
in writing by the Administrative Agent to the Borrower as of 11:00 A.M. (London,
England time) on the day that is two Business Days prior to the first day of the
Interest Period.

                  (e)      The Administrative Agent shall determine each
interest rate applicable to the Loans hereunder. The Administrative Agent shall
give prompt notice to the Borrower and the Banks by telecopier of each rate of
interest so determined, and its determination thereof shall be conclusive in the
absence of manifest error.

                  (f)      After the occurrence and during the continuance of an
Event of Default, the principal amount of the Loans (and, to the extent
permitted by applicable law, all accrued interest thereon) may, at the election
of the Required Banks, bear interest at the Default Rate.

                  SECTION 2.08. FEES. (a) The Borrower shall pay to the
Administrative Agent, for the ratable account of each Bank, a facility fee on
the aggregate amount of such Bank's Commitment (without taking into account the
outstanding Loans made by such Bank), at a rate

                                       28
<PAGE>

per annum equal to 0.50%. Such facility fees shall be payable on each Quarterly
Payment Date and on the Termination Date.

                  (b)      The Borrower agrees to pay to the Administrative
Agent the fees in the amounts and on the dates previously agreed to in writing
by the Borrower and the Administrative Agent.

                  SECTION 2.09. OPTIONAL TERMINATION OR REDUCTION OF
COMMITMENTS. The Borrower may, upon at least 3 Domestic Business Days' notice to
the Administrative Agent, terminate at any time, or proportionately reduce the
Unused Commitments from time to time by an aggregate amount of at least
$5,000,000 or any larger integral multiple of $1,000,000. If the Commitments are
terminated in their entirety, all accrued fees (as provided under Section 2.08)
shall be due and payable on the effective date of such termination.

                  SECTION 2.10. MANDATORY REDUCTION AND TERMINATION OF
COMMITMENTS. The Commitments shall terminate on the Termination Date and any
Loans then outstanding (together with accrued interest thereon) shall be due and
payable on such date.

                  SECTION 2.11. OPTIONAL PREPAYMENTS.

                  (a)      The Borrower may, upon at least 1 Domestic Business
Days' notice to the Administrative Agent, prepay, without premium or penalty,
any Base Rate Borrowing in whole at any time, or from time to time in part in
amounts aggregating at least $1,000,000 with additional increments of $500,000
(or any lesser amount equal to the outstanding balance of such Loan), or
$100,000 as to Swing Loans, by paying the principal amount to be prepaid
together with accrued interest thereon to the date of prepayment. Each such
optional prepayment shall be applied to prepay ratably the Base Rate Loans of
the several Banks or of Wachovia, in the case of Swing Loans included in such
Base Rate Borrowing.

                  (b)      Subject to any payments required pursuant to the
terms of Article VIII for such Fixed Rate Loan, upon 3 Domestic Business Day's
prior written notice, the Borrower may prepay in minimum amounts of $5,000,000
with additional increments of $1,000,000 (or any lesser amount equal to the
outstanding balance of such Loan) all or any portion of the principal amount of
any Fixed Rate Loan prior to the maturity thereof.

                  (c)      Upon receipt of a notice of prepayment pursuant to
this Section 2.11, the Administrative Agent shall promptly notify each Bank of
the contents thereof and of such Bank's ratable share of such prepayment and
such notice, once received by the Administrative Agent, shall not thereafter be
revocable by the Borrower.

                  SECTION 2.12. MANDATORY PREPAYMENTS.

                  (a)      On each date on which the conditions set forth in
clauses (i), (ii) or (iii) of Section 2.01(a) or clause (i) of Section 2.01(b),
are not satisfied (including, without limitation, by reason of the reduction of
the Commitments pursuant to Section 2.09 or Section 2.10), the Borrower shall
repay or prepay such principal amount of the outstanding Loans, if any (together
with interest accrued thereon and any amount due under Section 8.05(a)), as may
be necessary so that after such payment, the Total Revolving Extensions of
Credit do not exceed the Aggregate

                                       29
<PAGE>

Commitments as then in effect (or, in the case of clause (iii) of Section
2.01(a), if less, the Clean-Down Amount); provided, that if the aggregate
principal amount of Syndicated Dollar Loans, Foreign Currency Loans and Swing
Loans then outstanding is less than the amount of such excess (because L/C
Obligations constitute a portion thereof), the Borrower shall, to the extent of
the balance of such excess, replace outstanding Letters of Credit and/or deposit
an amount in cash in a cash collateral account established with the
Administrative Agent for the benefit of the Banks on terms and conditions
satisfactory to the Administrative Agent.. Each such payment or prepayment shall
be applied first to any Swing Loans outstanding which are Base Rate Loans, then
to any Swing Loans outstanding which are Transaction Rate Loans, and then
ratably to the Loans of the Banks outstanding on the date of payment or
prepayment in the following order of priority: (i) first, to Base Rate Loans;
and (ii) lastly, to Euro-Dollar Loans.

                  (b)      If the Administrative Agent determines at any time
(either on its own initiative or at the instance of any Bank) that the aggregate
principal amount of the Foreign Currency Loans outstanding (after converting
each Foreign Currency Loan to its Dollar Equivalent on the date of calculation)
at any time exceeds either (i) a Dollar Equivalent of $25,000,000 or (ii) 105%
of the aggregate amount of all of the Commitments less the outstanding aggregate
amount of all Syndicated Dollar Loans, L/C Obligations and Swing Loans, then
upon 5 Foreign Currency Business Days' written notice from the Administrative
Agent, the Borrower shall prepay an aggregate principal amount of Foreign
Currency Loans sufficient to bring the aggregate of the Foreign Currency Loans
outstanding to no more than a Dollar Equivalent of $25,000,000 and within the
aggregate amount of all of the Commitments less the outstanding aggregate amount
of all Syndicated Dollar Loans, L/C Obligations and Swing Loans. Nothing in the
foregoing shall require the Administrative Agent to make any such calculation
unless expressly requested to do so by the Required Banks.

                  SECTION 2.13. GENERAL PROVISIONS AS TO PAYMENTS.

                  (a)      The Borrower shall make each payment of principal of,
and interest on, the Loans and of fees hereunder, without any setoff,
counterclaim or any deduction whatsoever, not later than 11:00 A.M. (Atlanta,
Georgia time) on the date when due, in Federal or other funds (subject to
paragraph (c) below, with respect to Foreign Currency Loans) immediately
available in Atlanta, Georgia, to the Administrative Agent at its address
referred to in Section 9.01. The Administrative Agent will promptly distribute
to Wachovia each such payment received on account of the Swing Loans and to each
Bank its ratable share of each such payment received by the Administrative Agent
for the account of the Banks.

                  (b)      Whenever any payment of principal of, or interest on,
the Base Rate Loans or of fees hereunder shall be due on a day which is not a
Domestic Business Day, the date for payment thereof shall be extended to the
next succeeding Domestic Business Day. Whenever any payment of principal of or
interest on, the Euro-Dollar Loans or the Foreign Currency Loans shall be due on
a day which is not a Euro-Dollar Business Day or Foreign Currency Business Day,
as the case may be, the date for payment thereof shall be extended to the next
succeeding Euro-Dollar Business Day or Foreign Currency Business Day, as the
case may be, unless such Euro-Dollar Business Day or Foreign Currency Business
Day, as the case may be, falls in another calendar month, in which case the date
for payment thereof shall be the next preceding Euro-Dollar Business Day or
Foreign Currency Business Day, as the case may be.

                                       30
<PAGE>

                  (c)      All payments of principal and interest with respect
to Foreign Currency Loans shall be made in the Foreign Currency in which the
related Foreign Currency Loan was made.

                  (d)      All payments of principal, interest and fees and all
other amounts to be made by the Borrower pursuant to this Agreement with respect
to any Loan or fee relating thereto shall be paid without deduction for, and
free from, any tax, imposts, levies, duties, deductions, or withholdings of any
nature now or at anytime hereafter imposed by any Authority or by any taxing
authority thereof or therein excluding in the case of each Bank, taxes imposed
on or measured by its income, and franchise taxes imposed on it, by the
jurisdiction under the laws of which such Bank is organized or any political
subdivision thereof and, in the case of each Bank, taxes imposed on its net
income, and franchise taxes imposed on it, by the jurisdiction of such Bank's
applicable Lending Office or any political subdivision thereof (all such
non-excluded taxes, imposts, levies, duties, deductions or withholdings of any
nature being "Taxes"). In the event that the Borrower is required by applicable
law to make any such withholding or deduction of Taxes with respect to any Loan
or fee or other amount, the Borrower shall pay such deduction or withholding to
the applicable taxing authority, shall promptly furnish to any Bank in respect
of which such deduction or withholding is made all receipts and other documents
evidencing such payment and shall pay to such Bank additional amounts as may be
necessary in order that the amount received by such Bank after the required
withholding or other payment shall equal the amount such Bank would have
received had no such withholding or other payment been made.

                  Each Bank (x) as to Russell Corporation, which is not
organized under the laws of the United States or any state thereof and (y) as to
Russell Europe Limited, which is organized under the laws of the United States
or any state thereof, agrees, as soon as practicable after receipt by it of a
request by the Borrower to do so, to file all appropriate forms and take other
appropriate action to obtain a certificate or other appropriate document from
the appropriate Authority in the jurisdiction imposing the relevant Taxes,
establishing that it is entitled to receive payments of principal and interest
under this Agreement and the Notes without deduction and free from withholding
of any Taxes imposed by such jurisdiction; provided that if it is unable, for
any reason, to establish such exemption, or to file such forms and, in any
event, during such period of time as such request for exemption is pending, the
Borrower shall nonetheless remain obligated under the terms of the immediately
preceding paragraph.

                  In the event any Bank receives a refund of any Taxes paid by
the Borrower pursuant to this Section 2.13(d), it will pay to the Borrower the
amount of such refund promptly upon receipt thereof; provided that if at any
time thereafter it is required to return such refund, the Borrower shall
promptly repay to it the amount of such refund.

                  Without prejudice to the survival of any other agreement of
the Borrower hereunder, the agreements and obligations of the Borrower and the
Banks contained in this Section 2.13(d) shall be applicable with respect to any
Participant, Assignee or other Transferee, and any calculations required by such
provisions (i) shall be made based upon the circumstances of such Participant,
Assignee or other Transferee, and (ii) constitute a continuing agreement and
shall survive the termination of this Agreement and the payment in full or
cancellation of the Notes.

                                       31
<PAGE>

                  SECTION 2.14. COMPUTATION OF INTEREST AND FEES. Interest on
Base Rate Loans shall be computed on the basis of a year of 365 or 366 days, as
applicable, and paid for the actual number of days elapsed (including the first
day but excluding the last day). Interest on Euro-Dollar Loans, Transaction Rate
Loans and Foreign Currency Loans shall be computed on the basis of a year of 360
days (except for any Foreign Currency Loans outstanding in British pounds
sterling, or, if selected as a Foreign Currency pursuant to clause (iii) of the
definition of "Foreign Currency," in Australian dollars, Belgian francs,
Canadian dollars, Irish punts or New Zealand dollars, which shall be computed on
the basis of a year of 365 or 366 days, as the case may be) and paid for the
actual number of days elapsed, calculated as to each Interest Period from and
including the first day thereof to but excluding the last day thereof. Facility
fees and any other fees payable hereunder shall be computed on the basis of a
year of 360 days and paid for the actual number of days elapsed (including the
first day but excluding the last day).

                  SECTION 2.15. LETTERS OF CREDIT

                  (a)      L/C Commitment.

                           (i)      Subject to the terms and conditions hereof,
         the Issuing Bank, in reliance on the agreements of the other Banks set
         forth in Section 2.15(d), agrees to issue letters of credit ("Letters
         of Credit") for the account of the Borrower on any Domestic Business
         Day during the Stated Term in such form as may be approved from time to
         time by the Issuing Bank; provided, that the Issuing Bank shall have no
         obligation to issue any Letter of Credit if, after giving effect to
         such issuance, (i) the L/C Obligations would exceed the L/C Commitment
         or (ii) the aggregate amount of the Available Commitments would be less
         than zero. Each Letter of Credit shall (i) be denominated in Dollars
         and (ii) expire no later than the earlier of (x) the first anniversary
         of its date of issuance and (y) the date that is five Domestic Business
         Days prior to the last day of the Stated Term, provided that any Letter
         of Credit with a one-year term may provide for the renewal thereof for
         additional one-year periods (which shall in no event extend beyond the
         date referred to in clause (y) above).

                           (ii)     The Issuing Bank shall not at any time be
         obligated to issue any Letter of Credit if such issuance would conflict
         with, or cause the Issuing Bank or any L/C Participant to exceed any
         limits imposed by, any provision of applicable law or regulation or of
         the charter or bylaws of the Issuing Bank or L/C Participant, as the
         case may be.

                  (b)      Procedure for Issuance of Letters of Credit. The
Borrower may from time to time request that the Issuing Bank issue a Letter of
Credit by delivering to the Issuing Bank at its address for notices specified in
the signature pages herein an Application therefor, completed to the
satisfaction of the Issuing Bank, and such other certificates, documents and
other papers and information as the Issuing Bank may request. Upon receipt of
any Application, the Issuing Bank will process such Application and the
certificates, documents and other papers

                                       32
<PAGE>

and information delivered to it in connection therewith in accordance with its
customary procedures and shall promptly issue the Letter of Credit requested
thereby (but in no event shall the Issuing Bank be required to issue any Letter
of Credit earlier than three Domestic Business Days after its receipt of the
Application therefor and all such other certificates, documents and other papers
and information relating thereto) by issuing the original of such Letter of
Credit to the beneficiary thereof or as otherwise may be agreed to by the
Issuing Bank and the Borrower. The Issuing Bank shall furnish a copy of such
Letter of Credit to the Borrower promptly following the issuance thereof. The
Issuing Bank shall promptly furnish to the Administrative Agent, which shall in
turn promptly furnish to the Banks, notice of the issuance of each Letter of
Credit (including the amount thereof).

                  (c)      Fees and Other Charges.

                           (i)      The Borrower will pay a fee on all
         outstanding Letters of Credit at a per annum rate equal to the
         Applicable Margin then in effect with respect to Euro-Dollar Loans,
         shared ratably among the Banks and payable quarterly in arrears on each
         Quarterly Payment Date after the issuance date and on the Termination
         Date. In addition, the Borrower shall pay to the Issuing Bank for its
         own account a fronting fee of 0.25% per annum on the undrawn and
         unexpired amount of each Letter of Credit, payable quarterly in arrears
         on each Quarterly Payment Date after the issuance date and on the
         Termination Date.

                           (ii)     In addition to the foregoing fees, the
         Borrower shall pay or reimburse the Issuing Bank for such normal and
         customary costs and expenses as are incurred or charged by the Issuing
         Bank in issuing, negotiating, effecting payment under, amending or
         otherwise administering any Letter of Credit.

         (d)      L/C Participations.

                  (i)      The Issuing Bank irrevocably agrees to grant and
         hereby grants to each L/C Participant, and, to induce the Issuing Bank
         to issue Letters of Credit, each L/C Participant irrevocably agrees to
         accept and purchase and hereby accepts and purchases from the Issuing
         Bank, on the terms and conditions set forth below, for such L/C
         Participant's own account and risk an undivided interest equal to such
         L/C Participant's Revolving Percentage in the Issuing Bank's
         obligations and rights under and in respect of each Letter of Credit
         and the amount of each draft paid by the Issuing Bank thereunder. Each
         L/C Participant unconditionally and irrevocably agrees with the Issuing
         Bank that, if a draft is paid under any Letter of Credit for which the
         Issuing Bank is not reimbursed in full by the Borrower in accordance
         with the terms of this Agreement, such L/C Participant shall pay to the
         Issuing Bank upon demand at the Issuing Bank's address for notices
         specified in the signature pages hereof an amount equal to such L/C
         Participant's Revolving Percentage of the amount of such draft, or any
         part thereof, that is not so reimbursed.

                  (ii)     If any amount required to be paid by any L/C
         Participant to the Issuing Bank pursuant to Section 2.15(d)(i) in
         respect of any unreimbursed portion of any payment made by the Issuing
         Bank under any Letter of Credit is paid to the Issuing Bank within
         three Domestic Business Days after the date such payment is due, such
         L/C Participant shall pay to the Issuing Bank on demand an amount equal
         to the product of (i) such amount, times (ii) the daily average Federal
         Funds Rate during the period from and including the date such payment
         is required to the date on which such payment is

                                       33
<PAGE>

         immediately available to the Issuing Bank, times (iii) a fraction the
         numerator of which is the number of days that elapse during such period
         and the denominator of which is 360. If any such amount required to be
         paid by any L/C Participant pursuant to Section 2.15(d)(i) is not made
         available to the Issuing Bank by such L/C Participant within three
         Domestic Business Days after the date such payment is due, the Issuing
         Bank shall be entitled to recover from such L/C Participant, on demand,
         such amount with interest thereon calculated from such due date at the
         rate per annum applicable to Base Rate Loans. A certificate of the
         Issuing Bank submitted to any L/C Participant with respect to any
         amounts owing under this Section shall be conclusive in the absence of
         manifest error.

                  (iii)    Whenever, at any time after the Issuing Bank has made
         payment under any Letter of Credit and has received from any L/C
         Participant its pro rata share of such payment in accordance with
         Section 2.15(d)(i), the Issuing Bank receives any payment related to
         such Letter of Credit (whether directly from the Borrower or otherwise,
         including proceeds of collateral applied thereto by the Issuing Bank),
         or any payment of interest on account thereof, the Issuing Bank will
         distribute to such L/C Participant its pro rata share thereof;
         provided, however, that in the event that any such payment received by
         the Issuing Bank shall be required to be returned by the Issuing Bank,
         such L/C Participant shall return to the Issuing Bank the portion
         thereof previously distributed by the Issuing Bank to it.

         (e)      Reimbursement Obligations of the Borrower. If any draft is
paid under any Letter of Credit, the Borrower shall reimburse the Issuing Bank
for the amount of (a) the draft so paid and (b) any taxes, fees, charges or
other costs or expenses incurred by the Issuing Bank in connection with such
payment, not later than 12:00 Noon (Atlanta, Georgia time) on (i) the Domestic
Business Day that the Borrower receives notice of such draft, if such notice is
received on such day prior to 10:00 A.M. (Atlanta, Georgia time), or (ii) if
clause (i) above does not apply, the Domestic Business Day immediately following
the day that the Borrower receives such notice. Each such payment shall be made
to the Issuing Bank at its address for notices referred to herein in Dollars and
in immediately available funds. Interest shall be payable on any such amounts
from the date on which the relevant draft is paid until payment in full at the
rate set forth in Section 2.07(b) until the Domestic Business Day next
succeeding the date of the relevant notice, and thereafter, at the rate set
forth in Section 2.07(f).

         (f)      Obligations Absolute. The Borrower's obligations under this
Section 2.15 shall be absolute and unconditional under any and all circumstances
and irrespective of any setoff, counterclaim or defense to payment that the
Borrower may have or have had against the Issuing Bank, any beneficiary of a
Letter of Credit or any other Person. The Borrower also agrees with the Issuing
Bank that the Issuing Bank shall not be responsible for, and the Borrower's
Reimbursement Obligations under Section 2.15(e) shall not be affected by, among
other things, the validity or genuineness of documents or of any endorsements
thereon, even though such documents shall in fact prove to be invalid,
fraudulent or forged, or any dispute between or among the Borrower and any
beneficiary of any Letter of Credit or any other party to which such Letter of
Credit may be transferred or any claims whatsoever of the Borrower against any
beneficiary of such Letter of Credit or any such transferee. The Issuing Bank
shall not be liable for any error, omission, interruption or delay in
transmission, dispatch or delivery of any

                                       34
<PAGE>

message or advice, however transmitted, in connection with any Letter of Credit,
except for errors or omissions found by a final and nonappealable decision of a
court of competent jurisdiction to have resulted from the gross negligence or
willful misconduct of the Issuing Bank. The Borrower agrees that any action
taken or omitted by the Issuing Bank under or in connection with any Letter of
Credit or the related drafts or documents, if done in the absence of gross
negligence or willful misconduct and in accordance with the standards of care
specified in the Uniform Commercial Code of the State of Georgia, shall be
binding on the Borrower and shall not result in any liability of the Issuing
Bank to the Borrower.

         (g)      Letter of Credit Payments. If any draft shall be presented for
payment under any Letter of Credit, the Issuing Bank shall promptly notify the
Borrower of the date and amount thereof. The responsibility of the Issuing Bank
to the Borrower in connection with any draft presented for payment under any
Letter of Credit shall, in addition to any payment obligation expressly provided
for in such Letter of Credit, be limited to determining that the documents
(including each draft) delivered under such Letter of Credit in connection with
such presentment are substantially in conformity with such Letter of Credit.

(h) Inconsistency with Application. To the extent that any provision of any
Application related to any Letter of Credit is inconsistent with the provisions
of this Section 2.15, the provisions of this Section 2.15 shall apply.

                                  ARTICLE III.

                            CONDITIONS TO BORROWINGS

                  SECTION 3.01. CONDITIONS TO EFFECTIVENESS OF THE AMENDED AND
RESTATED CREDIT AGREEMENT. The effectiveness of the amendment and restatement of
the Existing Credit Agreement is subject to the satisfaction of the following
conditions:

                  (a)      receipt by the Administrative Agent from each of the
         parties hereto of either (i) duly executed counterparts of this
         Agreement signed by such party (in sufficient number for delivery of a
         counterpart to each Bank and retention of one counterpart by the
         Administrative Agent) or (ii) a facsimile transmission of such executed
         counterpart, with the original to be sent to the Administrative Agent
         by overnight courier);

                  (b)      receipt by the Administrative Agent of the Consent
         and Confirmation, substantially in the form of Exhibit M, executed and
         delivered by the Borrower and each Subsidiary party to any Security
         Documents;

                  (c)      each of the representations and warranties made by
         the Borrower in or pursuant to the Loan Documents shall be true and
         correct on and as of the Restatement Effective Date as if made on and
         as of such date;

                                       35
<PAGE>

                  (d)      no Default or Event of Default shall have occurred
         and be continuing on the Restatement Effective Date or after giving
         effect to the amendments to the Existing Credit Agreement to be
         effected on such date;

                  (e)      the Borrower shall have entered into an engagement
         letter on terms reasonably satisfactory to the Required Banks regarding
         the sale and leaseback of the Borrower's Montgomery, Alabama
         distribution center;

                  (f)      the Borrower and Russell Financial shall have entered
         into the Receivables Purchase Agreement on terms reasonably
         satisfactory to the Required Banks, providing for the sale by the
         Borrower and/or Russell Financial of Receivables for the amount of
         $50,000,000; and

                  (g)      receipt by (i) the Administrative Agent for the
         benefit of each of the Banks of an amendment fee in an amount equal to
         0.30% of such Bank's Commitment and (ii) the Administrative Agent and
         the Banks of all other fees required to be paid (including, without
         limitation, all fees payable pursuant to the Letter Agreements), and
         all expenses for which invoices have been presented (including the
         reasonable fees and expenses of legal counsel), on or before the
         Restatement Effective Date.

                  SECTION 3.02. CONDITIONS TO ALL EXTENSIONS OF CREDIT. The
obligation of each Bank to make a Syndicated Loan on the occasion of each
Borrowing and to issue or participate in Letters of Credit, and of Wachovia to
make a Swing Loan is subject to the satisfaction of the following conditions:

                  (a)      receipt by the Administrative Agent of a Notice of
         Borrowing.

                  (b)      the fact that, immediately before and after the
         making of such extensions of credit, no Default shall have occurred and
         be continuing;

                  (c)      the fact that the representations and warranties of
         the Borrower contained in Article IV of this Agreement shall be true on
         and as of the date of such Borrowing (except to the extent any such
         representation or warranty is expressly made as of a prior date); and

                  (d)      the fact that, immediately after such Borrowing, the
         conditions set forth in clauses (i), (ii) and (iii) of Section 2.01(a)
         shall have been satisfied.

                  Each Syndicated Borrowing and each Notice of Continuation or
Conversion hereunder shall be deemed to be a representation and warranty by the
Borrower on the date of such Borrowing as to the truth and accuracy of the facts
specified in paragraphs (b), (c) and (d) of this Section; provided, that if such
Borrowing is a Syndicated Borrowing which consists solely of a Refunding Loan
then, (i) if such Borrowing is a Fixed Rate Borrowing or such Notice of
Continuation or Conversion is to a Fixed Rate Loan, such Borrowing or Notice of
Continuation or Conversion shall be deemed to be such a representation and
warranty by the Borrower only as to the matters set forth in paragraphs (b) and
(d) above, and (ii) if such Borrowing is a Base Rate Borrowing, or such Notice
of Continuation or Conversions is to a Base Rate Loan, such Borrowing or Notice
of Continuation or Conversion shall be deemed to be a

                                       36
<PAGE>

representation and warranty by the Borrower only as to the matters set forth in
paragraph (d) above.

                                  ARTICLE IV.

                         REPRESENTATIONS AND WARRANTIES

                  The Borrower represents and warrants that:

                  SECTION 4.01. CORPORATE EXISTENCE AND POWER. The Borrower is a
corporation duly organized, validly existing and in good standing under the laws
of the State of Alabama (or, if elected by the Borrower, the State of Delaware),
is duly qualified to transact business in every jurisdiction where, by the
nature of its business, such qualification is necessary, and has all corporate
powers and all governmental licenses, authorizations, consents and approvals
required to carry on its business as now conducted, except where the failure to
qualify or have any such powers, licenses, authorizations, consent or approvals
does not have and could not reasonably be expected to cause a Material Adverse
Effect.

                  SECTION 4.02. CORPORATE AND GOVERNMENTAL AUTHORIZATION; NO
CONTRAVENTION. The execution, delivery and performance by the Borrower of this
Agreement, the Notes and the other Loan Documents (i) are within the Borrower's
corporate powers, (ii) have been duly authorized by all necessary corporate
action, (iii) require no action by or in respect of or filing with, any
governmental body, agency or official, (iv) do not contravene, or constitute a
default under, any provision of applicable law or regulation or of the charter
or bylaws of the Borrower or of any agreement, judgment, injunction, order,
decree or other instrument binding upon the Borrower or any of its Subsidiaries,
provided that the aggregate outstanding Borrowings under this Agreement do not
exceed the limitations thereon contained in any such other agreements or
instruments and (v) do not result in the creation or imposition of any Lien on
any asset of the Borrower or any of its Subsidiaries.

                  SECTION 4.03. BINDING EFFECT. This Agreement constitutes a
valid and binding agreement of the Borrower enforceable in accordance with its
terms, and the Notes and the other Loan Documents, when executed and delivered
in accordance with this Agreement, will constitute valid and binding obligations
of the Borrower enforceable in accordance with their respective terms, provided
that the enforceability hereof and thereof is subject in each case to general
principles of equity and to bankruptcy, insolvency and similar laws affecting
the enforcement of creditors' rights generally.

                  SECTION 4.04. FINANCIAL INFORMATION.

                  (a)      The consolidated balance sheet of the Borrower and
its Consolidated Subsidiaries as of December 30, 2000 and the related
consolidated statements of income, shareholders' equity and cash flows for the
Fiscal Year then ended, reported on by Ernst & Young LLP, copies of which have
been delivered to each of the Banks, and the unaudited consolidated financial
statements of the Borrower for the interim periods ended April 1, July 1 and
September 30, 2001, copies of each of which have been delivered to each of the
Banks,

                                       37
<PAGE>

fairly present, in conformity with GAAP, the consolidated financial position of
the Borrower and its Consolidated Subsidiaries as of such dates and their
consolidated results of operations and cash flows for such periods stated.

                  (b)      Since December 30, 2000, except for any matters which
have been disclosed in the filings by the Borrower under the Securities Exchange
Act of 1934 made prior to the Restatement Effective Date and made available to
the Banks, there has been no event, act, condition or occurrence having a
Material Adverse Effect.

                  SECTION 4.05. NO LITIGATION. There is no action, suit or
proceeding pending, or to the knowledge of the Borrower threatened, against or
affecting the Borrower or any of its Subsidiaries before any court or arbitrator
or any governmental body, agency or official which could reasonably be expected
to have a Material Adverse Effect or which in any manner draws into question the
validity of, or would restrict the Borrower from performing its obligations
under, this Agreement, the Notes or any of the other Loan Documents.

                  SECTION 4.06. COMPLIANCE WITH ERISA.

                  (a)      The Borrower and each member of the Controlled Group
have fulfilled their obligations under the minimum funding standards of ERISA
and the Code with respect to each Plan and are in compliance in all material
respects with the presently applicable provisions of ERISA and the Code, and
have not incurred any liability to the PBGC or a Plan under Title IV of ERISA,
except where the failure to comply does not have and could not reasonably be
expected to cause a Material Adverse Effect.

                  (b)      Neither the Borrower nor any member of the Controlled
Group is or ever has been obligated to contribute to any Multiemployer Plan.

                  SECTION 4.07. COMPLIANCE WITH LAWS; PAYMENT OF TAXES. The
Borrower and its Subsidiaries are in compliance with all applicable laws,
regulations and similar requirements of governmental authorities, except where
such compliance is being contested in good faith through appropriate
proceedings, and except where the failure to comply does not have and could not
reasonably be expected to cause a Material Adverse Effect. There have been filed
on behalf of the Borrower and its Subsidiaries all Federal, state and material
local income, excise, property and other tax returns which are required to be
filed by them and all taxes shown as being due pursuant to such returns or
pursuant to any assessment received by or on behalf of the Borrower or any
Subsidiary have been paid, except taxes being contested in good faith and
against which, if requested by the Administrative Agent, the Borrower will set
up reserves in accordance with GAAP. The charges, accruals and reserves on the
books of the Borrower and its Subsidiaries in respect of taxes or other
governmental charges are, in the opinion of the Borrower, adequate. United
States income tax returns of the Borrower and its Subsidiaries have been
examined and closed through the Fiscal Year ended January 1, 1994.

                  SECTION 4.08. SUBSIDIARIES. Each of the Borrower's
Subsidiaries is an entity duly organized, validly existing and in good standing
under the laws of its jurisdiction of formation, is duly qualified to transact
business in every jurisdiction where, by the nature of its business, such
qualification is necessary, and has all entity powers and all governmental
licenses,

                                       38
<PAGE>

authorizations, consents and approvals required to carry on its business as now
conducted, except where the failure to qualify does not have and could not
reasonably be expected to cause a Material Adverse Effect. As of the date
hereof, the Borrower has no Subsidiaries except for those Subsidiaries listed on
Schedule 4.08, which accurately sets forth each such Subsidiary's complete name
and jurisdiction of incorporation.

                  SECTION 4.09. INVESTMENT COMPANY ACT. Neither the Borrower nor
any of its Subsidiaries is an "investment company" within the meaning of the
Investment Company Act of 1940, as amended.

                  SECTION 4.10. PUBLIC UTILITY HOLDING COMPANY ACT. Neither the
Borrower nor any of its Subsidiaries is a "holding company", or a "subsidiary
company" of a "holding company", or an "affiliate" of a "holding company" or of
a "subsidiary company" of a "holding company", as such terms are defined in the
Public Utility Holding Company Act of 1935, as amended.

                  SECTION 4.11. OWNERSHIP OF PROPERTY; LIENS. Each of the
Borrower and its Consolidated Subsidiaries has title to its properties
sufficient for the conduct of its business, and none of such property is subject
to any Lien except as permitted in Section 5.17.

                  SECTION 4.12. NO DEFAULT. Neither the Borrower nor any of its
Consolidated Subsidiaries is in default under or with respect to any agreement,
instrument or undertaking to which it is a party or by which it or any of its
property is bound which could have or could reasonably be expected to cause a
Material Adverse Effect. No Default or Event of Default has occurred and is
continuing.

                  SECTION 4.13. FULL DISCLOSURE. All information heretofore
furnished by the Borrower to the Administrative Agent or any Bank for purposes
of or in connection with this Agreement or any transaction contemplated hereby
is, and all such information hereafter furnished by the Borrower to the
Administrative Agent or any Bank will be, true, accurate and complete in every
material respect or based on reasonable estimates on the date as of which such
information is stated or certified. The Borrower has disclosed to the Banks in
writing any and all facts known to the Borrower which could have or could
reasonably be expected to cause a Material Adverse Effect.

                  SECTION 4.14. ENVIRONMENTAL MATTERS.

                  (a)      Neither the Borrower nor any Subsidiary is subject to
any Environmental Liability which could have or could reasonably be expected to
cause a Material Adverse Effect and neither the Borrower nor any Subsidiary has
been designated as a potentially responsible party under CERCLA or under any
state statute similar to CERCLA. To the best of the Borrower's knowledge, none
of the Properties has been identified on any current or proposed (i) National
Priorities List under 40 C.F.R. ss. 300, (ii) CERCLIS list or (iii) any list
arising from a state statute similar to CERCLA.

                  (b)      No Hazardous Materials have been or are being used,
produced, manufactured, processed, treated, recycled, generated, stored,
disposed of, managed or otherwise handled at, or shipped or transported to or
from the Properties by the Borrower or its agents, or to

                                       39
<PAGE>

the best of the Borrower's knowledge, any Third Parties or are otherwise present
at, on, in or under the Properties, or, to the best of the Borrower's knowledge,
at or from any adjacent site or facility, except for Hazardous Materials used,
produced, manufactured, processed, treated, recycled, generated, stored,
disposed of, managed, or otherwise handled in the ordinary course of business in
compliance with all applicable Environmental Requirements, and except where the
failure to comply does not have and could not reasonably be expected to cause a
Material Adverse Effect.

                  (c)      The Borrower, and each of its Subsidiaries and
Affiliates, has procured all Environmental Authorizations necessary for the
conduct of its business, and is in compliance with all Environmental
Requirements in connection with the operation of the Properties and the
Borrower's, and each of its Subsidiary's and Affiliate's, respective businesses,
except where the failure to comply does not have and could not reasonably be
expected to cause a Material Adverse Effect.

                  SECTION 4.15. CAPITAL STOCK. All Capital Stock, debentures,
bonds, notes and all other securities of the Borrower and its Subsidiaries
presently issued and outstanding are validly and properly issued in accordance
with all applicable laws, including, but not limited to, the "Blue Sky" laws of
all applicable states and the federal securities laws. The issued shares of
Capital Stock of the Borrower's Wholly Owned Subsidiaries are owned directly or
indirectly by the Borrower free and clear of any Lien or adverse claim except
the Liens created pursuant to the Security Documents. At least a majority of the
issued shares of capital stock of each of the Borrower's other Subsidiaries
(other than Wholly Owned Subsidiaries) is owned by the Borrower free and clear
of any Lien or adverse claim except the Liens created pursuant to the Security
Documents.

                  SECTION 4.16. MARGIN STOCK. Neither the Borrower nor any of
its Subsidiaries is engaged principally, or as one of its important activities,
in the business of purchasing or carrying any Margin Stock, and no part of the
proceeds of any Loan will be used to purchase or carry any Margin Stock, except
for Permitted Acquisitions and purchases of treasury stock or to extend credit
to others for the purpose of purchasing or carrying any Margin Stock, or be used
for any purpose which violates, or which is inconsistent with, the provisions of
Regulation U or X.

                  SECTION 4.17. INSOLVENCY. After giving effect to the execution
and delivery of the Loan Documents and the making of the Loans under this
Agreement: (i) the Borrower will not (x) be "insolvent," within the meaning of
such term as used in O.C.G.A. ss. 18-2-22 or as defined in ss. 101 of the
"Bankruptcy Code", or Section 2 of either the "UFTA" or the "UFCA", or as
defined or used in any "Other Applicable Law" (as those terms are defined
below), or (y) be unable to pay its debts generally as such debts become due
within the meaning of Section 548 of the Bankruptcy Code, Section 4 of the UFTA
or Section 6 of the UFCA, or (z) have an unreasonably small capital to engage in
any business or transaction, whether current or contemplated, within the meaning
of Section 548 of the Bankruptcy Code, Section 4 of the UFTA or Section 5 of the
UFCA; and (ii) the obligations of the Borrower under the Loan Documents and with
respect to the Loans will not be rendered avoidable under any Other Applicable
Law. For purposes of this Section 4.17, "Bankruptcy Code" means Title 11 of the
United States Code, "UFTA" means the Uniform Fraudulent Transfer Act, "UFCA"
means the

                                       40
<PAGE>

Uniform Fraudulent Conveyance Act, and "Other Applicable Law" means any other
applicable law pertaining to fraudulent transfers or acts voidable by creditors,
in each case as such law may be amended from time to time.

                  SECTION 4.18. INSURANCE. The Borrower and each of its
Subsidiaries has (either in the name of the Borrower or in such Subsidiary's own
name), with financially sound and reputable insurance companies, insurance in at
least such amounts and against at least such risks (including on all its
property, and public liability and worker's compensation) as are usually insured
against in the same general area by companies of established repute engaged in
the same or similar business and, in this connection, the Borrower and its
Subsidiaries have adequately insured, at their expense, all "assets held for
sale" as identified on Schedule 5.05 hereof.

                                   ARTICLE V.

                                    COVENANTS

                  The Borrower agrees that, so long as any Bank has any
Commitment hereunder or any amount payable hereunder or under any Note remains
unpaid:

                  SECTION 5.01. INFORMATION. The Borrower will deliver to each
of the Banks:

                  (a)      as soon as available and in any event within 90 days
after the end of each Fiscal Year, a consolidated balance sheet of the Borrower
and its Consolidated Subsidiaries as of the end of such Fiscal Year and the
related consolidated statements of income, shareholders' equity and cash flows
for such Fiscal Year, setting forth in each case in comparative form the figures
for the previous Fiscal Year, all certified by Ernst & Young LLP or other
independent public accountants of nationally recognized standing, with such
certification to be free of exceptions and qualifications not acceptable to the
Required Banks;

                  (b)      as soon as available and in any event within 45 days
after the end of each of the first 3 Fiscal Quarters of each Fiscal Year,
commencing with the Fiscal Year beginning on December 31, 2001, a consolidated
balance sheet of the Borrower and its Consolidated Subsidiaries as of the end of
such Fiscal Quarter and the related statement of income and statement of cash
flows for such Fiscal Quarter and for the portion of the Fiscal Year ended at
the end of such Fiscal Quarter, setting forth in each case in comparative form
the figures for the corresponding Fiscal Quarter and the corresponding portion
of the previous Fiscal Year, all certified (subject to normal year-end
adjustments) as to fairness of presentation, GAAP and consistency by the chief
financial officer or the chief accounting officer of the Borrower;

                  (c)      simultaneously with the delivery of each set of
financial statements referred to in paragraphs (a) and (b) above, a certificate,
substantially in the form of Exhibit F (a "Compliance Certificate"), of the
chief financial officer or the chief accounting officer of the Borrower (i)
setting forth in reasonable detail the calculations required to establish
whether the Borrower was in compliance with the requirements of Sections 5.05,
5.15, 5.16, 5.17, and 5.20 through 5.23, inclusive, on the date of such
financial statements and (ii) stating whether any Default exists on the date of
such certificate and, if any Default then exists, setting forth the

                                       41
<PAGE>

details thereof and the action which the Borrower is taking or proposes to take
with respect thereto;

                  (d)      simultaneously with the delivery of each set of
annual financial statements referred to in paragraph (a) above, a statement of
the firm of independent public accountants which reported on such statements to
the effect that nothing has come to their attention to cause them to believe
that any Default existed on the date of such financial statements;

                  (e)      (i) as soon as available, and in any event no later
than 45 days after the end of each Fiscal Year, the Borrower's "Annual Business
Plan" for the current Fiscal Year and for the next three Fiscal Years, each
prepared in a manner consistent with past practice and those previously provided
to the Banks and (ii) as soon as available, and in any event no later than 45
days after the end of each Fiscal Quarter, a quarterly update of the "Annual
Business Plan" for the current Fiscal Year, which, in each case (A) shall be
prepared in a manner consistent with past practice and in a form consistent with
that previously provided to the Banks and (B) accompanied by a certificate of
the chief financial officer or chief accounting officer of the Borrower stating
that such plan is based on reasonable estimates, information and assumptions and
that such officer has no reason to believe that such plan is incorrect or
misleading in any material respect;

                  (f)      simultaneously with the delivery of each set of
financial statements referred to in paragraph (b) above, an updated business
forecast, in form reasonably acceptable to the Required Banks (detailing
projected changes in financial position and projected income and a description
of the underlying assumptions applicable thereto) and accompanied by a
certificate of the chief financial officer or the chief accounting officer of
the Borrower stating that such business forecast is based on reasonable
estimates, information and assumptions and that such officer has no reason to
believe that such business forecast is incorrect or misleading in any material
respect;

                  (g)      within 5 Domestic Business Days after the Borrower
becomes aware of the occurrence of any Default, a certificate of the chief
financial officer or the chief accounting officer of the Borrower setting forth
the details thereof and the action which the Borrower is taking or proposes to
take with respect thereto;

                  (h)      promptly upon the mailing thereof to the shareholders
of the Borrower generally, copies of all financial statements, reports and proxy
statements so mailed;

                  (i)      promptly upon the filing thereof, copies of all
registration statements (other than the exhibits thereto and any registration
statements on Form S-8 or its equivalent) and annual, quarterly or monthly
reports which the Borrower shall have filed with the Securities and Exchange
Commission;

                  (j)      if and when any member of the Controlled Group (i)
gives or is required to give notice to the PBGC of any "reportable event" (as
defined in Section 4043 of ERISA) with respect to any Plan which might
constitute grounds for a termination of such Plan under Title IV of ERISA, or
knows that the plan administrator of any Plan has given or is required to give
notice of any such reportable event, a copy of the notice of such reportable
event given or

                                       42
<PAGE>

required to be given to the PBGC; (ii) receives notice of complete or partial
withdrawal liability under Title IV of ERISA, a copy of such notice; or (iii)
receives notice from the PBGC under Title IV of ERISA of an intent to terminate
or appoint a trustee to administer any Plan, a copy of such notice; and

                  (k)      from time to time such additional information
regarding the financial position or business of the Borrower and its
Subsidiaries as the Administrative Agent, at the request of any Bank, may
reasonably request.

                  SECTION 5.02. INSPECTION OF PROPERTY, BOOKS AND RECORDS. The
Borrower will (i) keep, and cause each Subsidiary to keep, proper books of
record and account in which full, true and correct entries in conformity with
GAAP shall be made of all dealings and transactions in relation to its business
and activities; and (ii) permit, and cause each Subsidiary to permit,
representatives of any Bank at such Bank's expense prior to the occurrence of a
Default and at the Borrower's expense during the existence of a Default to visit
and inspect any of their respective properties, to examine and make abstracts
from any of their respective books and records and to discuss their respective
affairs, finances and accounts with their respective officers, employees and
independent public accountants. The Borrower agrees to cooperate and assist in
such visits and inspections, in each case upon reasonable notice and at such
reasonable times and as often as may reasonably be desired.

                  SECTION 5.03. MAINTENANCE OF EXISTENCE. The Borrower shall,
and shall cause each Subsidiary to, maintain its corporate existence (except
that it may become a Delaware corporation) and carry on its business in
substantially the same manner and in substantially the same fields as such
business is now carried on and maintained, except as permitted by Section 5.05.

                  SECTION 5.04. [RESERVED].

                  SECTION 5.05. CONSOLIDATIONS, MERGERS AND SALES OF ASSETS. (a)
The Borrower shall not, nor shall it permit any Subsidiary to, enter into any
merger, consolidation or amalgamation, or liquidate, wind up or dissolve itself
(or suffer any liquidation or dissolution), or Dispose of all or substantially
all of its property or business, except that (i) any Subsidiary may be merged or
consolidated with or into the Borrower (provided that the Borrower shall be the
continuing or surviving corporation) or with or into any Subsidiary Guarantor
(provided that the Subsidiary Guarantor shall be the continuing or surviving
corporation); (ii) any Subsidiary may Dispose of any or all of its assets (x) to
the Borrower or any Subsidiary Guarantor (upon voluntary liquidation or
otherwise) or (y) pursuant to a Disposition permitted by paragraph (b) below;
and (iii) any Investment expressly permitted by Section 5.16 may be structured
as a merger, consolidation or amalgamation.

                  (b)      The Borrower shall not, nor shall it permit any
Subsidiary to, Dispose of any of its property, whether now owned or hereafter
acquired, or, in the case of any Subsidiary, issue or sell any shares of such
Subsidiary's Capital Stock to any Person, except (i) the Disposition of obsolete
or worn out property in the ordinary course of business; (ii) the sale of
inventory in the ordinary course of business; (iii) the purchase by Russell
Financial, and the sale by the Borrower and certain of its Subsidiaries, of
Receivables pursuant to the Intercompany

                                       43
<PAGE>

Receivables Agreements; (iii) Dispositions permitted by clause (ii) of paragraph
(a) above; (iv) the sale or issuance of any Subsidiary's Capital Stock to the
Borrower or any Subsidiary Guarantor; (v) Dispositions of Accounts and Related
Assets (as those terms are defined in the Receivables Purchase Agreement) with
an aggregate fair market value not to exceed $50,000,000 pursuant to the
Receivables Purchase Agreement (provided that such Dispositions described in
this clause (v) shall only be permitted between July 1, 2002 and October 31,
2002 and only at any time during which the aggregate outstanding principal
amount of all Syndicated Dollar Loans and Swing Loans of all Banks and the
Dollar Equivalent of the Foreign Currency Loans of all Banks equals or exceeds
$225,000,000 (with the proceeds thereof having been used for the normal ongoing
business and working capital needs of the Borrower and its Subsidiaries)); (vi)
the sale and leaseback of the Borrower's distribution centers in Columbus,
Georgia and Montgomery, Alabama for sale prices of at least $10,000,000 and
$14,000,000, respectively (provided that such sale and leaseback transactions
must close on or prior to May 31, 2002 (the "Permitted Sale Leasebacks")); and
(vii) the sale of assets of the Borrower and its Subsidiaries listed on Schedule
5.05 hereof which have been categorized as "assets held for sale" by the
Borrower; and (viii) the Disposition of other property having a fair market
value not to exceed $5,000,000 in the aggregate for any Fiscal Year.

                  SECTION 5.06. USE OF PROCEEDS. The proceeds of the Loans and
the Letters of Credit may be used for general corporate purposes including,
without limitation, refinancing other Debt, working capital and capital
expenditures; provided, that no portion of the proceeds of the Loans or the
Letters of Credit will be used by the Borrower or any Subsidiary (i) in
connection with, whether directly or indirectly, any tender offer for, or other
acquisition of, stock of any corporation with a view towards obtaining control
of such other corporation, unless such tender offer or other acquisition is to
be made on a negotiated basis with the approval of the Board of Directors of the
Person to be acquired, and the provisions of Section 5.16 would not be violated,
(ii) directly or indirectly, for the purpose, whether immediate, incidental or
ultimate, of purchasing or carrying any Margin Stock, other than with respect to
Permitted Acquisitions and purchases of treasury stock or (iii) for any purpose
in violation of any applicable law or regulation.

                  SECTION 5.07. COMPLIANCE WITH LAWS; PAYMENT OF TAXES. The
Borrower will, and will cause each of its Subsidiaries and each member of the
Controlled Group to, comply with applicable laws (including but not limited to
ERISA), regulations and similar requirements of governmental authorities
(including but not limited to PBGC), except where the necessity of such
compliance is being contested in good faith through appropriate proceedings
diligently pursued. The Borrower will, and will cause each of its Subsidiaries
to, pay promptly when due all taxes, assessments, governmental charges, claims
for labor, supplies, rent and other obligations which, if unpaid, might become a
Lien against the property of the Borrower or any Subsidiary, except liabilities
being contested in good faith and against which reserves in conformity with GAAP
with respect thereto have been provided on the books of the Borrower or the
relevant Subsidiary.

                  SECTION 5.08. INSURANCE. The Borrower will maintain, and will
cause each of its Subsidiaries to maintain (either in the name of the Borrower
or in such Subsidiary's own name), with financially sound and reputable
insurance companies, insurance on all its property in at least such amounts and
against at least such risks (including on all its property, and public liability
and

                                       44
<PAGE>

worker's compensation) as are usually insured against in the same general area
by companies of established repute engaged in the same or similar business
including, but not limited to, the insuring, at the Borrower's expense, of all
"assets held for sale" as identified on Schedule 5.05 hereof.

                  SECTION 5.09. CHANGE IN FISCAL YEAR. The Borrower will not
change its Fiscal Year, and will not permit any Consolidated Subsidiary to have
a fiscal year other than the Fiscal Year, without the prior written consent of
the Required Banks.

                  SECTION 5.10. MAINTENANCE OF PROPERTY. Except as permitted by
Section 5.05 or in connection with the Restructuring Program, the Borrower
shall, and shall cause each Subsidiary to, maintain all of its properties and
assets (including all "assets held for sale" as identified in Schedule 5.05) in
good condition, repair and working order, ordinary wear and tear excepted.

                  SECTION 5.11. ENVIRONMENTAL NOTICES. The Borrower shall
furnish to the Banks and the Administrative Agent prompt written notice of all
material Environmental Liabilities of which the Borrower has notice, pending,
threatened or anticipated Environmental Proceedings of which the Borrower has
notice, Environmental Notices, Environmental Judgments and Orders, and
Environmental Releases at, on, in, under or in any way affecting the Properties
or any adjacent property, and all facts, events, or conditions that could lead
to any of the foregoing.

                  SECTION 5.12. ENVIRONMENTAL MATTERS. The Borrower and its
Subsidiaries will not, and will not permit any Third Party to, use, produce,
manufacture, process, treat, recycle, generate, store, dispose of, manage at, or
otherwise handle, or ship or transport to or from the Properties any Hazardous
Materials except for Hazardous Materials used, produced, manufactured,
processed, treated, recycled, generated, stored, disposed, managed, or otherwise
handled in the ordinary course of business in material compliance with all
applicable Environmental Requirements.

                  SECTION 5.13. ENVIRONMENTAL RELEASE. The Borrower agrees that
upon the occurrence of a material Environmental Release at or on any of the
Properties it will act immediately to investigate the extent of, and to take
appropriate remedial action to eliminate, such Environmental Release, whether or
not ordered or otherwise directed to do so by any Environmental Authority.

                  SECTION 5.14. TRANSACTIONS WITH AFFILIATES. Neither the
Borrower nor any of its Subsidiaries shall enter into, or be a party to, any
transaction with any Affiliate of the Borrower or such Subsidiary (which
Affiliate is not the Borrower or a Wholly Owned Subsidiary), except as permitted
by law and in the ordinary course of business and pursuant to reasonable terms
which are no less favorable to Borrower or such Subsidiary than would be
obtained in a comparable arm's length transaction with a Person which is not an
Affiliate, and except for Investments permitted by Section 5.16.

                  SECTION 5.15. RESTRICTED PAYMENTS. Neither the Borrower nor
any of its Subsidiaries shall declare or make any Restricted Payment, except
that (i) any Subsidiary may make Restricted Payments to the Borrower or any
Subsidiary Guarantor and (ii) so long as no

                                       45
<PAGE>

Default or Event of Default is continuing (before or after giving effect to such
Restricted Payment), the Borrower may (a) pay dividends with respect to the
Capital Stock of the Borrower in an amount during any Fiscal Quarter not
exceeding $0.04 per share of the Borrower's issued and outstanding common
Capital Stock, (b) make payments in the ordinary course of the Borrower's
business in connection with an employee stock option, bonus, stock purchase or
other benefit plans of the Borrower on account of (1) the repurchase of
Borrower's Capital Stock, (2) options, warrants or other rights to acquire
shares of the Borrower's Capital Stock, or (3) other awards issued or granted
under such plans or (c) otherwise repurchase the Borrower's Capital Stock so
long as at the time of such purchase (and after giving effect to such purchase),
the Fixed Charge Coverage Ratio for the period of four consecutive Fiscal
Quarters then most recently ended is greater than or equal to 1.40 to 1.00.

                  SECTION 5.16. INVESTMENTS. From and after the Restatement
Effective Date, neither the Borrower nor any of its Subsidiaries shall make
Investments in any Person except (i) loans or advances to officers, directors
and employees (1) for relocation expenses in connection with the Restructuring
Program and (2) for other purposes not exceeding $3,000,000 in the aggregate
principal amount outstanding at any time, in each case made in the ordinary
course of business in accordance with historical practices existing on the
Restatement Effective Date; (ii) deposits required by government agencies or
public utilities (including pertaining to taxes and other similar charges),
(iii) Investments in direct obligations of the United States Government or any
agency thereof maturing within one year after the date of Investment, (iv)
Investments in certificates of deposit issued by a commercial bank whose credit
is satisfactory to the Administrative Agent and in certificates of deposit
issued by any banking subsidiary of Wachovia Corporation, AmSouth
Bancorporation, SunTrust Banks, Inc., Aliant National Corporation, Comerica
Bank, JP Morgan Chase Bank, First Union National Bank or any Person who succeeds
to all, or substantially all, of the assets or business of any thereof, (v)
Investments in commercial paper rated A1 or the equivalent thereof by S&P or P1
or the equivalent thereof by Moody's and in either case maturing within 270 days
after the date of acquisition, (vi) Investments in tender bonds the payment of
the principal of and interest on which is fully supported by a letter of credit
issued by a United States bank whose long-term certificates of deposit are rated
at least AA or the equivalent thereof by S&P and Aa or the equivalent thereof by
Moody's, (vii) Investments in variable rate demand bonds maturing or with
optional puts within one year or less from the date of acquisition thereof,
which, at the time of acquisition by the Borrower or Subsidiary, are rated not
lower than A or A-1 by S&P and not lower than A2 or P-1 by Moody's, (viii)
intercompany loans by the Borrower or any Subsidiary to the Borrower or any
Subsidiary Guarantor, (ix) Investments in Frontier Yarns LLC in an aggregate
amount not to exceed $9,900,000 (provided, that any cash Investments made in
Frontier shall be limited to the proceeds of the asset transfers of the
Borrower's Lafayette and Gwaltney facilities and the equipment related thereto),
(x) the transfer of certain Receivables pursuant to the Intercompany Receivables
Agreements and/or the Receivables Purchase Agreement to the extent otherwise
permitted by this Agreement; (xi) Permitted Acquisitions; (xii) Guarantees
otherwise permitted by Section 5.17; and (xiii) other Investments (including
joint venture and partnership investments, minority interests and loans to
strategic partners) which do not exceed an aggregate amount of $5,000,000 in any
Fiscal Year.

                  SECTION 5.17. PERMITTED LIENS AND DEBT. The Borrower will not,
nor will it permit any Consolidated Subsidiary to, create, assume or suffer to
exist any Lien upon any

                                       46
<PAGE>

Properties, or other assets, whether real or personal property, now owned or
hereafter acquired by the Borrower or such Subsidiary or incur Debt, except as
follows:

                  (a)      any Lien or Debt that is in existence on the date
hereof and that is described on Schedule 5.17 and any refinancings, refundings,
renewals or extensions of such Debt (without increasing, or shortening the
maturity of, the principal amount thereof);

                  (b)      any Lien existing on any specific fixed asset of any
Person at the time such Person becomes a Consolidated Subsidiary and not created
in contemplation of such event;

                  (c)      any Lien on any specific fixed asset securing Debt
incurred or assumed for the purpose of financing all or any part of the cost of
acquiring, constructing or improving such asset, provided that such Lien
attaches to such asset concurrently with or within 6 months after the
acquisition, completion, construction or improvement thereof;

                  (d)      any Lien on any specific fixed asset of any Person
existing at the time such Person is merged or consolidated with or into the
Borrower or a Consolidated Subsidiary and not created in contemplation of such
event;

                  (e)      any Lien existing on any specific fixed asset prior
to the acquisition thereof by the Borrower or a Consolidated Subsidiary and not
created in contemplation of such acquisition;

                  (f)      any Lien securing Debt owing by any Subsidiary to the
Borrower or to any Wholly Owned Subsidiary;

                  (g)      any Lien arising out of the refinancing, extension,
renewal or refunding of any Debt secured by any Lien permitted by this Section,
provided that (i) such Debt is not secured by any additional assets, and (ii)
the amount of such Debt secured by any such Lien is not increased;

                  (h)      any statutory Lien (other than a Lien arising under
ERISA or for past due taxes) incidental to the conduct of its business or the
ownership of its assets which (i) does not secure Debt, (ii) if such Lien
attaches to or otherwise affects any of the Collateral, no enforcement or
foreclosure proceedings in respect of such statutory Lien are commenced, and any
indebtedness secured by such Lien is not past due or payable (unless such
indebtedness is being actively contested in good faith and by appropriate
proceedings), and (iii) does not in the aggregate materially detract from the
value of its assets or materially impair the use thereof in the operation of its
business;

                  (i)      any Lien on Margin Stock;

                  (j)      any Debt incurred under the Loan Documents and any
other Debt secured under the Security Documents as permitted by the terms
thereof;

                  (k)      any Lien created pursuant to the Security Documents;

                                       47
<PAGE>

                  (l)      any Debt and Liens on the Receivables and general
intangibles related thereto pursuant to the Receivables Purchase Agreement (it
being understood however that it is intended by the parties thereto and hereto
that the sale of the Receivables pursuant to the Receivables Purchase Agreement
constitute a true sale of Receivables and not Debt);

                  (m)      Debt of the Borrower to a Wholly-Owned Subsidiary and
Debt of a Consolidated Subsidiary to the Borrower or another Wholly-Owned
Subsidiary;

                  (n)      Debt consisting of senior unsecured or senior
subordinated debt securities of the Borrower (the "High-Yield Notes") in an
aggregate principal amount of not less than $150.0 million and containing terms
that are customary for the U.S. high-yield market issued by a company of
comparable credit quality as the Borrower provided that (i) the Borrower shall
determine the manner in which the High-Yield Notes shall be placed, (ii) the
bullet maturity of any High-Yield Notes shall not be earlier than six months
after the final maturity of any of the "Loans", as such term is defined in the
Intercreditor Agreement, and (iii) the application of proceeds of the High-Yield
Notes shall be as agreed between the Borrower and the Required Banks;

                  (o)      Debt and Liens incurred pursuant to any Permitted
Sale Leaseback;

                  (p)      Other Debt, including capital leases, in an aggregate
amount not to exceed $5,000,000 at any one time outstanding;

                  (q)      Guarantees and other obligations of the Borrower and
its Subsidiaries under the Receivables Purchase Documents; and

                  (r)      Debt in respect of commercial letters of credit
issued in connection with the purchase of inventory or other goods or services
by the Borrower and its Subsidiaries in the ordinary course of business;
provided, that the aggregate face amount of all such commercial letters of
credit shall not at any time exceed $10,000,000.

                  SECTION 5.18. RESTRICTIVE AGREEMENTS. The Borrower shall not,
nor shall it permit any Subsidiary to, enter into or become a party to any
Restrictive Agreement; provided, however, that the foregoing shall not apply to
(i) Restrictive Agreements existing on the Restatement Effective Date and
identified on Schedule 5.18 and any replacement or substitution thereof
otherwise permitted by this Agreement (but shall apply to any amendment,
modification or substitution expanding the scope of any restriction or condition
contained in any such Restrictive Agreement), (ii) restrictions or conditions
imposed by any Restrictive Agreement evidencing or governing secured Debt that
is permitted by this Agreement if such restrictions or conditions apply only to
the Properties securing such Debt, (iii) customary provisions in leases and
other contracts restricting the assignment thereof, (iv) the restrictions on the
granting of Liens contained in the indenture or indentures pursuant to which the
High Yield Notes are issued (provided that the provisions of such indenture or
indentures expressly permit the Liens granted pursuant to the Loan Documents)
and (v) provisions with respect to the disposition or distribution of assets or
property in joint venture agreements and other similar agreements entered into
after the Restatement Effective Date in the ordinary course of business and

                                       48
<PAGE>

otherwise permitted under this Agreement (which provisions apply only to the
property subject to such joint venture or similar agreement).

                  SECTION 5.19. [RESERVED].

                  SECTION 5.20. DEBT/EBITDA RATIO. The Borrower shall not, on
any date during any Fiscal Quarter set forth below, permit the Debt/EBITDA Ratio
to be greater than the ratio set forth below for such Fiscal Quarter:

<TABLE>
<CAPTION>

                           Fiscal Quarter                        Ratio
                           --------------                        -----
                           <S>                               <C>
                           FQ 4 2001                         3.25 to 1.00

                           FQ 1 2002                         3.65 to 1.00

                           FQ 2 2002                         3.75 to 1.00

                           FQ 3 2002                         3.65 to 1.00

                           FQ 4 2002                         2.65 to 1.00

                           FQ 1 2003                         3.00 to 1.00

                           FQ 2 2003                         3.00 to 1.00

                           FQ 3 2003                         3.00 to 1.00

                           FQ 4 2003                         2.50 to 1.00

                           FQ 1 2004                         2.75 to 1.00

                           FQ 2 2004                         2.75 to 1.00

                           FQ 3 2004                         2.75 to 1.00

                           FQ 4 2004                         2.50 to 1.00

</TABLE>

                  SECTION 5.21. MINIMUM CONSOLIDATED NET WORTH. Consolidated Net
Worth shall at no time be less than the sum of (i) $415,000,000, (ii) 50% of
Reported Net Income for each Fiscal Quarter (beginning with the Fiscal Quarter
ending March 31, 2002) for which Reported Net Income is positive, calculated
quarterly at the end of each such Fiscal Quarter, and (iii) 100% of the
cumulative net proceeds of Capital Stock received during any period after the
Restatement Effective Date, calculated quarterly at the end of each Fiscal
Quarter.

                  SECTION 5.22. DEBT SERVICE COVERAGE RATIO. The Borrower shall
not permit the Debt Service Coverage Ratio for any period of four consecutive
Fiscal Quarters ending with any

                                       49
<PAGE>

Fiscal Quarter set forth below to be less than the ratio set forth below
opposite such Fiscal Quarter:

<TABLE>
<CAPTION>

                           Fiscal Quarter                        Ratio
                           --------------                        -----
                           <S>                               <C>

                           FQ 4 2001                         1.60 to 1.00

                           FQ 1 2002                         1.60 to 1.00

                           FQ 2 2002                         1.60 to 1.00

                           FQ 3 2002                         1.90 to 1.00

                           FQ 4 2002                         1.65 to 1.00

                           FQ 1 2003                         1.70 to 1.00

                           FQ 2 2003                         1.75 to 1.00

                           FQ 3 2003                         1.75 to 1.00

                           FQ 4 2003                         1.75 to 1.00

                           FQ 1 2004                         1.75 to 1.00

                           FQ 2 2004                         1.75 to 1.00

                           FQ 3 2004                         1.75 to 1.00

                           FQ 4 2004                         1.75 to 1.00

</TABLE>

                  SECTION 5.23. CAPITAL EXPENDITURES. Neither the Borrower nor
any of its Consolidated Subsidiaries shall make or commit to make any Capital
Expenditure, except Capital Expenditures of the Borrower and its Consolidated
Subsidiaries in the ordinary course of business during the 2002, 2003 and 2004
Fiscal Years not to exceed $40,000,000 in the aggregate during any such Fiscal
Year; provided, that (a) up to $10,000,000 of such amount for any such Fiscal
Year, if not so expended in the Fiscal Year for which it is permitted, may be
carried over for expenditure in the next succeeding Fiscal Year and (b) Capital
Expenditures made pursuant to this Section during any Fiscal Year shall be
deemed made, first, in respect of amounts permitted for such Fiscal Year as
provided above and, second, in respect of amounts carried over from the prior
Fiscal Year pursuant to clause (a) above.

                                       50
<PAGE>

                                  ARTICLE VI.

                                    DEFAULTS

                  SECTION 6.01. EVENTS OF DEFAULT. If one or more of the
following events ("Events of Default") shall have occurred and be continuing:

                  (a)      the Borrower shall fail to pay when due any principal
         of any Loan or Reimbursement Obligation or shall fail to pay any
         interest on any Loan or Reimbursement Obligation within 5 Domestic
         Business Days after such interest shall become due, or shall fail to
         pay any fee or other amount payable hereunder or under any other Loan
         Document within 5 Domestic Business Days after such fee or other amount
         becomes due; or

                  (b)      the Borrower shall fail to observe or perform any
         covenant contained in Sections 5.01(e), 5.02(ii), 5.03 through 5.06,
         inclusive, Section 5.15, Section 5.17 or Sections 5.20 through 5.23,
         inclusive; or

                  (c)      the Borrower shall fail to observe or perform any
         covenant or agreement contained or incorporated by reference in this
         Agreement (other than those covered by paragraph (a) or (b) above) or
         any other Loan Document and such failure shall not have been cured
         within (1) 10 days, in the case of Sections 5.16 and 5.18, and (2) 30
         days, in any other case, after the earlier to occur of (i) written
         notice thereof has been given to the Borrower by the Administrative
         Agent at the request of any Bank or (ii) the Borrower otherwise becomes
         aware of any such failure; or

                  (d)      any representation, warranty, certification or
         statement made by the Borrower in Article IV of this Agreement, any of
         the other Loan Documents or in any certificate, financial statement or
         other document delivered pursuant to this Agreement or any other Loan
         Document shall prove to have been incorrect or misleading in any
         material respect when made (or deemed made); or

                  (e)      the Borrower or any Subsidiary shall fail to make any
         payment in respect of Debt outstanding in an aggregate principal amount
         in excess of $5,000,000 (other than the Notes) when due or within any
         applicable grace period; or

                  (f)      any event or condition shall occur which results in
         the acceleration of the maturity of Debt outstanding, or the
         termination of a commitment to make available to the Borrower or any
         Subsidiary any extension of credit, in an aggregate principal amount in
         excess of $5,000,000 of or to the Borrower or any Subsidiary
         (including, without limitation, any required mandatory prepayment or
         "put" of such Debt to the Borrower or any Subsidiary) or enables (or,
         with the giving of notice or lapse of time or both, would enable) the
         holders of such Debt or commitment or any Person acting on such
         holders' behalf to accelerate the maturity thereof or terminate any
         such commitment (including, without limitation, any required mandatory
         prepayment or "put" of such Debt to the Borrower or any Subsidiary); or

                                       51
<PAGE>

                  (g)      the Borrower or any Subsidiary shall commence a
         voluntary case or other proceeding seeking liquidation, reorganization
         or other relief with respect to itself or its debts under any
         bankruptcy, insolvency or other similar law now or hereafter in effect
         or seeking the appointment of a trustee, receiver, liquidator,
         custodian or other similar official of it or any substantial part of
         its property, or shall consent to any such relief or to the appointment
         of or taking possession by any such official in an involuntary case or
         other proceeding commenced against it, or shall make a general
         assignment for the benefit of creditors, or shall fail generally, or
         shall admit in writing its inability, to pay its debts as they become
         due, or shall take any corporate action to authorize any of the
         foregoing; or

                  (h)      an involuntary case or other proceeding shall be
         commenced against the Borrower or any Subsidiary seeking liquidation,
         reorganization or other relief with respect to it or its debts under
         any bankruptcy, insolvency or other similar law now or hereafter in
         effect or seeking the appointment of a trustee, receiver, liquidator,
         custodian or other similar official of it or any substantial part of
         its property, and such involuntary case or other proceeding shall
         remain undismissed and unstayed for a period of 60 days; or an order
         for relief shall be entered against the Borrower or any Subsidiary
         under the federal bankruptcy laws as now or hereafter in effect; or

                  (i)      the Borrower or any member of the Controlled Group
         shall fail to pay when due any amount which it shall have become liable
         to pay to the PBGC or to a Plan under Title IV of ERISA; or notice of
         intent to terminate a Plan or Plans shall be filed under Title IV of
         ERISA by the Borrower, any member of the Controlled Group, any plan
         administrator or any combination of the foregoing; or the PBGC shall
         institute proceedings under Title IV of ERISA to terminate or to cause
         a trustee to be appointed to administer any such Plan or Plans or a
         proceeding shall be instituted by a fiduciary of any such Plan or Plans
         to enforce Section 515 or 4219(c)(5) of ERISA and such proceeding shall
         not have been dismissed within 30 days thereafter; or a condition shall
         exist by reason of which the PBGC would be entitled to obtain a decree
         adjudicating that any such Plan or Plans must be terminated; or the
         Borrower or any other member of the Controlled Group shall enter into,
         contribute or be obligated to contribute to, terminate or incur any
         withdrawal liability with respect to, a Multiemployer Plan; provided,
         in any of the foregoing cases, the amount required to be paid, or the
         Unfunded Vested Liabilities under any such Plan, is in excess of
         $5,000,000; or

                  (j)      any of the Security Documents shall cease, for any
         reason, to be in full force and effect, or the Borrower or any
         Affiliate of the Borrower shall so assert, or any Lien created by any
         of the Security Documents shall cease to be enforceable and of the same
         effect and priority purported to be created thereby; or

                  (k)      the guarantee contained in Section 2 of the Guarantee
         and Collateral Agreement shall cease, for any reason, to be in full
         force and effect or the Borrower or any Affiliate of the Borrower shall
         so assert; or

                  (l)      one or more judgments or orders for the payment of
         money in an aggregate amount in excess of $5,000,000 shall be rendered
         against the Borrower or any

                                       52
<PAGE>

         Subsidiary and such judgment or order shall continue unsatisfied and
         unstayed for a period of 30 days; or

                  (m)      a federal tax lien shall be filed against the
         Borrower or any Subsidiary under Section 6323 of the Code or a lien of
         the PBGC shall be filed against the Borrower or any Subsidiary under
         Section 4068 of ERISA and in either case such lien is for an amount in
         excess of $5,000,000 and shall remain undischarged for a period of 25
         days after the date of filing; or

                  (n)      (i) 30 days after any Person or two or more Persons
         acting in concert (other than the Russell Family) shall have acquired
         beneficial ownership (within the meaning of Rule 13d-3 of the
         Securities and Exchange Commission under the Securities Exchange Act of
         1934) of 30% or more of the outstanding shares of the voting stock of
         the Borrower; or (ii) as of any date a majority of the Board of
         Directors of the Borrower consists of individuals who were not either
         (A) directors of the Borrower as of the corresponding date of the
         previous year, (B) selected or nominated to become directors by the
         Board of Directors of the Borrower of which a majority consisted of
         individuals described in clause (A), or (C) selected or nominated to
         become directors by the Board of Directors of the Borrower of which a
         majority consisted of individuals described in clause (A) and
         individuals described in clause (B);

         then, and in every such event, (i) the Administrative Agent shall, if
         requested by the Required Banks, by notice to the Borrower terminate
         the Commitments and they shall thereupon terminate, and (ii) the
         Administrative Agent shall, if requested by the Required Banks, by
         notice to the Borrower declare the Notes (together with accrued
         interest thereon), and all other amounts payable hereunder and under
         the other Loan Documents, to be, and the Notes, including the Swing
         Loan Note (together with accrued interest thereon), and all other
         amounts payable hereunder and under the other Loan Documents (including
         all amounts of L/C Obligations, whether or not the beneficiaries of the
         then outstanding Letters of Credit shall have presented the documents
         required thereunder) shall thereupon become, immediately due and
         payable without presentment, demand, protest or other notice of any
         kind, all of which are hereby waived by the Borrower together with
         interest at the Default Rate accruing on the principal amount thereof
         from and after the date of such Event of Default; provided that if any
         Event of Default specified in paragraph (g) or (h) above occurs with
         respect to the Borrower, without any notice to the Borrower or any
         other act by the Agent or the Banks, the Commitments shall thereupon
         terminate and the Notes (together with accrued interest thereon) and
         all other amounts payable hereunder and under the other Loan Documents
         (including all amounts of L/C Obligations, whether or not the
         beneficiaries of the then outstanding Letters of Credit shall have
         presented the documents required thereunder) shall automatically and
         without notice become immediately due and payable without presentment,
         demand, protest or other notice of any kind, all of which are hereby
         waived by the Borrower together with interest thereon at the Default
         Rate accruing on the principal amount thereof from and after the date
         of such Event of Default. Notwithstanding the foregoing, the
         Administrative Agent shall have available to it all other remedies at
         law or equity, and shall exercise any one or all of them at the request
         of the Required Banks.

                                       53
<PAGE>
                  SECTION 6.02. NOTICE OF DEFAULT. The Administrative Agent
shall give notice to the Borrower of any Default under Section 6.01(c) promptly
upon being requested to do so by any Bank and shall thereupon notify all the
Banks thereof.

                  SECTION 6.03. CASH COLLATERAL. With respect to all Letters of
Credit with respect to which presentment for honor shall not have occurred at
the time of an acceleration pursuant to Section 6.01, the Borrower shall at such
time deposit in a cash collateral account opened by the Administrative Agent an
amount equal to the aggregate then undrawn and unexpired amount of such Letters
of Credit. Amounts held in such cash collateral account shall be applied by the
Administrative Agent to the payment of drafts drawn under such Letters of
Credit, and the unused portion thereof after all such Letters of Credit shall
have expired or been fully drawn upon, if any, shall be applied to repay other
obligations of the Borrower hereunder and under the other Loan Documents. After
all such Letters of Credit shall have expired or been fully drawn upon, all
Reimbursement Obligations shall have been satisfied and all other obligations of
the Borrower hereunder and under the other Loan Documents shall have been paid
in full, the balance, if any, in such cash collateral account shall be returned
to the Borrower (or such other Person as may be lawfully entitled thereto).

                                  ARTICLE VII.
                            THE ADMINISTRATIVE AGENT

                  SECTION 7.01. APPOINTMENT; POWERS AND IMMUNITIES. (a) Each
Bank hereby irrevocably appoints and authorizes the Administrative Agent to act
as its agent hereunder and under the other Loan Documents with such powers as
are specifically delegated to the Administrative Agent by the terms hereof and
thereof, together with such other powers as are reasonably incidental thereto.
The Administrative Agent: (a) shall have no duties or responsibilities except as
expressly set forth in this Agreement and the other Loan Documents, and shall
not by reason of this Agreement or any other Loan Document be a trustee for any
Bank; (b) shall not be responsible to the Banks for any recitals, statements,
representations or warranties contained in this Agreement or any other Loan
Document, or in any certificate or other document referred to or provided for
in, or received by any Bank under, this Agreement or any other Loan Document, or
for the validity, effectiveness, genuineness, enforceability or sufficiency of
this Agreement or any other Loan Document or any other document referred to or
provided for herein or therein or for any failure by the Borrower to perform any
of its obligations hereunder or thereunder; (c) shall not be required to
initiate or conduct any litigation or collection proceedings hereunder or under
any other Loan Document except to the extent requested by the Required Banks,
and then only on terms and conditions satisfactory to the Administrative Agent,
and (d) shall not be responsible for any action taken or omitted to be taken by
it hereunder or under any other Loan Document or any other document or
instrument referred to or provided for herein or therein or in connection
herewith or therewith, except for its own gross negligence or willful
misconduct. The Administrative Agent may employ agents and attorneys-in-fact and
shall not be responsible for the negligence or misconduct of any such agents or
attorneys-in-fact selected by it with reasonable care. The provisions of this
Article VII are solely for the benefit of the Administrative Agent and the
Banks, and the Borrower shall not

                                       54
<PAGE>

have any rights as a third party beneficiary of any of the provisions hereof. In
performing its functions and duties under this Agreement and under the other
Loan Documents, the Administrative Agent shall act solely as agent of the Banks
and does not assume and shall not be deemed to have assumed any obligation
towards or relationship of agency or trust with or for the Borrower. The duties
of the Administrative Agent shall be ministerial and administrative in nature,
and the Administrative Agent shall not have by reason of this Agreement or any
other Loan Document a fiduciary relationship in respect of any Bank.

                  (b)      Each Bank hereby confirms its designation of Suntrust
Bank (formerly Suntrust Bank, Atlanta) as the Syndication Agent and First Union
National Bank as the Documentation Agent. The Syndication Agent and the
Documentation Agent, in such capacity, shall have no duties or obligations
whatsoever under this Agreement or any other Loan Document or any other document
or any matter related hereto and thereto, but shall nevertheless be entitled to
all the indemnities and other protection afforded to the Administrative Agent
under this Article VII.

                  SECTION 7.02. RELIANCE BY ADMINISTRATIVE AGENT. The
Administrative Agent shall be entitled to rely upon any certification, notice or
other communication (including any thereof by telephone, telecopier, telegram or
cable) believed by it to be genuine and correct and to have been signed or sent
by or on behalf of the proper Person or Persons, and upon advice and statements
of legal counsel, independent accountants or other experts selected by the
Administrative Agent. As to any matters not expressly provided for by this
Agreement or any other Loan Document, the Administrative Agent shall in all
cases be fully protected in acting, or in refraining from acting, hereunder and
thereunder in accordance with instructions signed by the Required Banks, and
such instructions of the Required Banks in any action taken or failure to act
pursuant thereto shall be binding on all of the Banks.

                  SECTION 7.03. DEFAULTS. The Administrative Agent shall not be
deemed to have knowledge of the occurrence of a Default or an Event of Default
(other than the nonpayment of principal of or interest on the Loans) unless the
Administrative Agent has received notice from a Bank or the Borrower specifying
such Default or Event of Default and stating that such notice is a "Notice of
Default". In the event that the Administrative Agent receives such a notice of
the occurrence of a Default or an Event of Default, the Administrative Agent
shall give prompt notice thereof to the Banks. The Administrative Agent shall
give each Bank prompt notice of each nonpayment of principal of or interest on
the Loans whether or not it has received any notice of the occurrence of such
nonpayment. The Administrative Agent shall (subject to Section 9.06) take such
action hereunder with respect to such Default or Event of Default as shall be
directed by the Required Banks, provided that, unless and until the
Administrative Agent shall have received such directions, the Administrative
Agent may (but shall not be obligated to) take such action, or refrain from
taking such action, with respect to such Default or Event of Default as it shall
deem advisable in the best interests of the Banks.

                  SECTION 7.04. RIGHTS OF ADMINISTRATIVE AGENT AND ITS
AFFILIATES AS A BANK. With respect to the Loans made by the Administrative Agent
and any Affiliate of the Administrative Agent, Wachovia in its capacity as a
Bank hereunder and any Affiliate of the Administrative Agent or such Affiliate
in its capacity as a Bank hereunder shall have the same rights and powers
hereunder as any other Bank and may exercise the same as though Wachovia

                                       55
<PAGE>

were not acting as the Administrative Agent, and the term "Bank" or "Banks"
shall, unless the context otherwise indicates, include Wachovia in its
individual capacity and any Affiliate of the Administrative Agent in its
individual capacity. The Administrative Agent and any Affiliate of the
Administrative Agent may (without having to account therefor to any Bank) accept
deposits from, lend money to and generally engage in any kind of banking, trust
or other business with the Borrower (and any of the Borrower's Affiliates) as if
Wachovia were not acting as the Administrative Agent, and the Administrative
Agent and any Affiliate of the Administrative Agent may accept fees and other
consideration from the Borrower (in addition to any agency fees and arrangement
fees heretofore agreed to between the Borrower and the Administrative Agent) for
services in connection with this Agreement or any other Loan Document or
otherwise without having to account for the same to the Banks.

                  SECTION 7.05. INDEMNIFICATION. Each Bank severally agrees to
indemnify the Administrative Agent, to the extent the Administrative Agent shall
not have been reimbursed by the Borrower, ratably in accordance with its
Commitment, for any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses (including, without
limitation, counsel fees and disbursements) or disbursements of any kind and
nature whatsoever which may be imposed on, incurred by or asserted against the
Administrative Agent in any way relating to or arising out of this Agreement or
any other Loan Document or any other documents contemplated by or referred to
herein or therein or the transactions contemplated hereby or thereby (excluding,
unless an Event of Default has occurred and is continuing, the normal
administrative costs and expenses incident to the performance of its agency
duties hereunder) or the enforcement of any of the terms hereof or thereof or
any such other documents; provided that no Bank shall be liable for any of the
foregoing to the extent they arise from the gross negligence or willful
misconduct of the Administrative Agent. If any indemnity furnished to the
Administrative Agent for any purpose shall, in the opinion of the Administrative
Agent, be insufficient or become impaired, the Administrative Agent may call for
additional indemnity and cease, or not commence, to do the acts indemnified
against until such additional indemnity is furnished.

                  SECTION 7.06. CONSEQUENTIAL DAMAGES. THE ADMINISTRATIVE AGENT
SHALL NOT BE RESPONSIBLE OR LIABLE TO ANY BANK, THE BORROWER OR ANY OTHER PERSON
OR ENTITY FOR ANY PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES WHICH MAY BE
ALLEGED AS A RESULT OF THIS AGREEMENT, THE OTHER LOAN DOCUMENTS OR ANY OF THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

                  SECTION 7.07. PAYEE OF NOTE TREATED AS OWNER. The
Administrative Agent may deem and treat the payee of any Note as the owner
thereof for all purposes hereof unless and until a written notice of the
assignment or transfer thereof shall have been filed with the Administrative
Agent and the provisions of Section 9.08(c) have been satisfied. Any requests,
authority or consent of any Person who at the time of making such request or
giving such authority or consent is the holder of any Note shall be conclusive
and binding on any subsequent holder, transferee or assignee of that Note or of
any Note or Notes issued in exchange therefor or replacement thereof.

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<PAGE>

                  SECTION 7.08. NONRELIANCE ON ADMINISTRATIVE AGENT AND OTHER
BANKS. Each Bank agrees that it has, independently and without reliance on the
Administrative Agent or any other Bank, and based on such documents and
information as it has deemed appropriate, made its own credit analysis of the
Borrower and decision to enter into this Agreement and that it will,
independently and without reliance upon the Administrative Agent or any other
Bank, and based on such documents and information as it shall deem appropriate
at the time, continue to make its own analysis and decisions in taking or not
taking action under this Agreement or any of the other Loan Documents. The
Administrative Agent shall not be required to keep itself (or any Bank) informed
as to the performance or observance by the Borrower of this Agreement or any of
the other Loan Documents or any other document referred to or provided for
herein or therein or to inspect the properties or books of the Borrower or any
other Person. Except for notices, reports and other documents and information
expressly required to be furnished to the Banks by the Administrative Agent
hereunder or under the other Loan Documents, the Administrative Agent shall not
have any duty or responsibility to provide any Bank with any credit or other
information concerning the affairs, financial condition or business of the
Borrower or any other Person (or any of their Affiliates) which may come into
the possession of the Administrative Agent.

                  SECTION 7.09. FAILURE TO ACT. Except for action expressly
required of the Administrative Agent hereunder or under the other Loan
Documents, the Administrative Agent shall in all cases be fully justified in
failing or refusing to act hereunder and thereunder unless it shall receive
further assurances to its satisfaction by the Banks of their indemnification
obligations under Section 7.05 against any and all liability and expense which
may be incurred by the Administrative Agent by reason of taking, continuing to
take, or failing to take any such action.

                  SECTION 7.10. RESIGNATION OR REMOVAL OF ADMINISTRATIVE AGENT.
Subject to the appointment and acceptance of a successor Administrative Agent as
provided below, the Administrative Agent may resign at any time by giving notice
thereof to the Banks and the Borrower and the Administrative Agent may be
removed at any time with or without cause by the Required Banks. Upon any such
resignation or removal, the Required Banks shall have the right to appoint a
successor Administrative Agent, subject to the approval of the Borrower, so long
as no Default is in existence, which approval shall not be unreasonably withheld
or delayed. If no successor Administrative Agent shall have been so appointed by
the Required Banks and shall have accepted such appointment within 30 days after
the retiring Administrative Agent's notice of resignation or the Required Banks'
removal of the retiring Administrative Agent, then the retiring Administrative
Agent may, on behalf of the Banks, appoint a successor Administrative Agent,
subject to the approval of the Borrower, so long as no Default is in existence,
which approval shall not be unreasonably withheld or delayed. Any successor
Administrative Agent shall be a bank which has a combined capital and surplus of
at least $500,000,000. Upon the acceptance of any appointment as Administrative
Agent hereunder by a successor Administrative Agent, such successor
Administrative Agent shall thereupon succeed to and become vested with all the
rights, powers, privileges and duties of the retiring Administrative Agent, and
the retiring Administrative Agent shall be discharged from its duties and
obligations hereunder. After any retiring Administrative Agent's resignation or
removal hereunder as Administrative Agent, the provisions of this Article VII
shall continue in effect for

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<PAGE>

its benefit in respect of any actions taken or omitted to be taken by it while
it was acting as the Administrative Agent hereunder.

                                 ARTICLE VIII.

                      CHANGE IN CIRCUMSTANCES; COMPENSATION

                  SECTION 8.01. BASIS FOR DETERMINING INTEREST RATE INADEQUATE
OR UNFAIR. If on or prior to the first day of any Interest Period:

                  (a)      the Administrative Agent determines that deposits in
         Dollars (in the applicable amounts) are not being offered in the
         relevant market for such Interest Period, or

                  (b)      the Required Banks advise the Administrative Agent
         that the London Interbank Offered Rate or IBOR, as determined by the
         Administrative Agent will not adequately and fairly reflect the cost to
         such Banks of funding its Fixed Rate Loans for such Interest Period,

the Administrative Agent shall forthwith give notice thereof to the Borrower and
the Banks, whereupon until the Administrative Agent notifies the Borrower that
the circumstances giving rise to such suspension no longer exist, the
obligations of the Banks to make such type of Fixed Rate Loans, or to permit
continuations or conversions into such type of Fixed Rate Loans, shall be
suspended. Unless the Borrower notifies the Administrative Agent at least 2
Domestic Business Days before the date of any Borrowing of such type of Fixed
Rate Loans for which a Notice of Borrowing has previously been given, or
continuation or conversion into such type of Fixed Rate Loans for which a Notice
of Continuation or Conversion has previously been given, that it elects not to
borrow or so continue or convert on such date, such Borrowing shall instead be
made as a Base Rate Borrowing, or such Fixed Rate Loan shall be converted to a
Base Rate Loan.

                  SECTION 8.02. ILLEGALITY. If, after the date hereof, the
adoption of any applicable law, rule or regulation, or any change therein or any
existing or future law, rule or regulation, or any change in the interpretation
or administration thereof by any Authority, central bank or comparable agency
charged with the interpretation or administration thereof (any such agency being
referred to as an "Authority" and any such event being referred to as a "Change
of Law"), or compliance by any Bank (or its Lending Office) with any request or
directive (whether or not having the force of law) of any Authority shall make
it unlawful or impossible for any Bank (or its Lending Office) to make, maintain
or fund its Euro-Dollar Loans or Foreign Currency Loans and such Bank shall so
notify the Administrative Agent, the Administrative Agent shall forthwith give
notice thereof to the other Banks and the Borrower, whereupon until such Bank
notifies the Borrower and the Administrative Agent that the circumstances giving
rise to such suspension no longer exist, the obligation of such Bank to make or
permit continuations or conversions of Euro-Dollar Loans or Foreign Currency
Loans, as the case may be, shall be suspended. Before giving any notice to the
Administrative Agent pursuant to this Section, such Bank shall designate a
different Lending Office if such designation will avoid the need for giving such
notice and will

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<PAGE>

not, in the judgment of such Bank, be otherwise disadvantageous to such Bank. If
such Bank shall determine that it may not lawfully continue to maintain and fund
any of its outstanding Euro-Dollar Loans or Foreign Currency Loans, as the case
may be, to maturity, and shall so specify in such notice, the Borrower shall
immediately prepay in full the then outstanding principal amount of each
Euro-Dollar Loan or Foreign Currency Loan, as the case may be, of such Bank,
together with accrued interest thereon and any amount due such Bank pursuant to
Section 8.05(a). Concurrently with prepaying each such Euro-Dollar Loan or
Foreign Currency Loan, as the case may be, the Borrower shall borrow a Base Rate
Loan in an equal principal amount from such Bank (on which interest and
principal shall be payable contemporaneously with the related Euro-Dollar Loans
or Foreign Currency Loan, as the case may be, of the other Banks), and such Bank
shall make such a Base Rate Loan.

                  SECTION 8.03. INCREASED COST AND REDUCED RETURN.

                  (a)      If after the date hereof, a Change of Law or
compliance by any Bank (or its Lending Office) with any request or directive
(whether or not having the force of law) of any Authority:

                           (i)      shall impose, modify or deem applicable any
                  reserve, special deposit or similar requirement, including,
                  without limitation, any such requirement imposed by the Board
                  of Governors of the Federal Reserve System, but excluding (A)
                  with respect to any Euro-Dollar Loan any such requirement
                  included in an applicable Euro-Dollar Reserve Percentage and
                  (B) with respect to any Foreign Currency Loan any such
                  requirement included in the applicable Adjusted IBOR Rate)
                  against assets of, deposits with or for the account of, or
                  credit extended by, any Bank (or its Lending Office); or

                           (ii)     shall impose on any Bank (or its Lending
                  Office) or on the United States market for certificates of
                  deposit or the London interbank market any other condition
                  affecting its Fixed Rate Loans, its Notes, its obligation to
                  make Fixed Rate Loans and its issuance of, or participation
                  in, Letters of Credit;

and the result of any of the foregoing is to increase the cost to such Bank (or
its Lending Office) of making or maintaining any Fixed Rate Loan or issuing or
participating in Letters of Credit, or to reduce the amount of any sum received
or receivable by such Bank (or its Lending Office) under this Agreement or under
its Notes with respect thereto, by an amount reasonably deemed by such Bank to
be material, then, within 15 days after demand by such Bank (with a copy to the
Administrative Agent) pursuant and subject to paragraph (c) below, the Borrower
shall pay to such Bank such additional amount or amounts as will compensate such
Bank for such increased cost or reduction.

                  (b)      If any Bank shall have determined that after the date
hereof the adoption of any applicable law, rule or regulation regarding capital
adequacy, or any change therein, or any change in the interpretation or
administration thereof, or compliance by any Bank (or its Lending Office) with
any request or directive regarding capital adequacy (whether or not having the
force of law) of any Authority, has or would have the effect of reducing the
rate of return on such Bank's capital as a consequence of its obligations
hereunder to a level below that which

                                       59
<PAGE>

such Bank could have achieved but for such adoption, change or compliance
(taking into consideration such Bank's policies with respect to capital
adequacy) by an amount reasonably deemed by such Bank to be material, then from
time to time, within 15 days after demand by such Bank pursuant and subject to
paragraph (c) below, the Borrower shall pay to such Bank such additional amount
or amounts as will compensate such Bank for such reduction.

                  (c)      Each Bank will promptly notify the Borrower and the
Administrative Agent of any event of which it has knowledge, occurring after the
date hereof, which will entitle such Bank to compensation pursuant to this
Section and will designate a different Lending Office if such designation will
avoid the need for, or reduce the amount of, such compensation and will not, in
the reasonable judgment of such Bank, be otherwise materially disadvantageous to
such Bank. A certificate of any Bank claiming compensation under this Section
and setting forth the additional amount or amounts to be paid to it hereunder,
and including the calculations thereof in reasonable detail, shall be conclusive
in the absence of manifest error, provided that such determination is made on a
reasonable basis. In determining such amount, such Bank may use any reasonable
averaging and attribution methods.

                  (d)      The provisions of this Section 8.03 (i) shall be
applicable with respect to any Participant, Assignee or other Transferee, and
any calculations required by such provisions shall be made based upon the
circumstances of such Participant, Assignee or other Transferee and (ii) shall
constitute a continuing agreement and shall survive the termination of this
Agreement and the payment in full or cancellation of the Notes.

                  SECTION 8.04. BASE RATE LOANS OR OTHER FIXED RATE LOANS
SUBSTITUTED FOR AFFECTED FIXED RATE LOANS. If (i) the obligation of any Bank to
make or maintain any type of Fixed Rate Loans has been suspended pursuant to
Section 8.02 or (ii) any Bank has demanded compensation under Section 8.03, and
the Borrower shall, by at least 5 Euro-Dollar Business Days' or Foreign Currency
Business Days, as applicable, prior notice to such Bank through the
Administrative Agent, have elected that the provisions of this Section shall
apply to such Bank, then, unless and until such Bank notifies the Borrower that
the circumstances giving rise to such suspension or demand for compensation no
longer apply:

                  (a)      all Loans which would otherwise be made by such Bank
         as, or permitted to be continued as or converted into, Euro-Dollar
         Loans or Foreign Currency Loans, as the case may be, shall be instead
         be made as or converted into (A) Base Rate Loans, (B) if such
         suspension or demand for compensation relates to Euro-Dollar Loans, but
         not Foreign Currency Loans, as Foreign Currency Loans, and (C) if such
         demand for compensation relates to Foreign Currency Loans, but not
         Euro-Dollar Loans, as Euro-Dollar Loans, as the Borrower may elect in
         the notice to such Bank through the Administrative Agent referred to
         hereinabove (in all cases interest and principal on such Loans shall be
         payable contemporaneously with the related Fixed Rate Loans of the
         other Banks), and

                  (b)      after each of its Euro-Dollar Loans or Foreign
         Currency Loans, as the case may be, has been repaid, all payments of
         principal which would otherwise be applied to repay such Fixed Rate
         Loans shall be applied to repay its Base Rate Loans instead.

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<PAGE>

                  SECTION 8.05. COMPENSATION. Upon the request of any Bank,
delivered to the Borrower and the Administrative Agent, the Borrower shall pay
to such Bank such amount or amounts as shall compensate such Bank for any loss,
cost or expense incurred by such Bank as a result of:

                  (a)      any payment or prepayment (pursuant to Section 2.11,
         2.13, 6.01, 8.02 or otherwise) of a Fixed Rate Loan on a date other
         than the last day of an Interest Period for such Loan; or

                  (b)      any failure by the Borrower to prepay a Fixed Rate
         Loan on the date for such prepayment specified in the relevant notice
         of prepayment hereunder; or

                  (c)      any failure by the Borrower to borrow a Fixed Rate
         Loan on the date for the Fixed Rate Borrowing of which such Fixed Rate
         Loan is a part specified in the applicable Notice of Borrowing
         delivered pursuant to Section 2.02 or notification of acceptance of a
         Transaction Rate Quote pursuant to Section 2.01(b)(ii); or

                  (d)      any failure by the Borrower to pay a Foreign Currency
         Loan in the applicable Foreign Currency;

such compensation to include, without limitation, as applicable, (A) an amount
equal to the excess, if any, of (x) the amount of interest which would have
accrued on the amount so paid or prepaid or not prepaid or borrowed for the
period from the date of such payment, prepayment or failure to prepay or borrow
to the last day of the then current Interest Period for such Fixed Rate Loan
(or, in the case of a failure to prepay or borrow, the Interest Period for such
Fixed Rate Loan which would have commenced on the date of such failure to prepay
or borrow) at the applicable rate of interest for such Fixed Rate Loan provided
for herein over (y) the amount of interest (as reasonably determined by such
Bank) such Bank would have paid on (i) deposits in Dollars of comparable amounts
having terms comparable to such period placed with it by leading banks in the
London interbank market (if such Loan is a Euro-Dollar Loan) or (ii) any deposit
in a Foreign Currency of comparable amounts having terms comparable to such
period placed with it by lending banks in the applicable interbank market for
such Foreign Currency (if such Fixed Rate Loan is a Foreign Currency Loan); or
(B) any such loss, cost or expense incurred by such Bank in liquidating or
closing out any foreign currency contract undertaken by such Bank in funding or
maintaining such Fixed Rate Loan (if such Fixed Rate Loan is a Foreign Currency
Loan).

                  SECTION 8.06. FAILURE TO PAY IN FOREIGN CURRENCY. If any
Borrower is unable for any reason to effect payment in a Foreign Currency as
required by this Agreement or if any Borrower shall default in the Foreign
Currency, each Bank may, through the Administrative Agent, require such payment
to be made in Dollars in the Dollar Equivalent amount of such payment. In any
case in which any Borrower shall make such payment in Dollars, the Borrower
agrees to hold the Banks harmless from any loss incurred by the Banks arising
from any change in the value of Dollars in relation to such Foreign Currency
between the date such payment became due and the date of payment thereof.

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<PAGE>

                  SECTION 8.07. JUDGMENT CURRENCY. If for the purpose of
obtaining judgment in any court or enforcing any such judgment it is necessary
to convert any amount due in any Foreign Currency into any other currency, the
rate of exchange used shall be the Administrative Agent's spot rate of exchange
for the purchase of the Foreign Currency with such other currency at the close
of business on the Foreign Currency Business Day preceding the date on which
judgment is given or any order for payment is made. The obligation of the
Borrower in respect of any amount due from it hereunder shall, notwithstanding
any judgment or order for a liquidated sum or sums in respect of amounts due
hereunder or under any judgment or order in any other currency or otherwise be
discharged only to the extent that on the Foreign Currency Business Day
following receipt by the Administrative Agent of any payment in a currency other
than the relevant Foreign Currency the Administrative Agent is able (in
accordance with normal banking procedures) to purchase the relevant Foreign
Currency with such other currency. If the amount of the relevant Foreign
Currency that the Administrative Agent is able to purchase with such other
currency is less than the amount due in the relevant Foreign Currency,
notwithstanding any judgment or order, the Borrower shall indemnify the Banks
for the shortfall.

                  SECTION 8.08. REPLACEMENT OF BANKS. If any Bank (a "Notice
Bank") makes demand for amounts owed under Section 8.03 (other than due to any
change in the Eurodollar Reserve Percentage), or gives notice under Section 8.02
that it can no longer participate in Euro-Dollar Loans, then in each case the
Borrower shall have the right, if no Default or Event of Default exists, and
subject to the terms and conditions set forth in Section 9.08(c), to designate
an assignee (a "Replacement Bank") to purchase the Notice Bank's share of
outstanding Syndicated Loans and all other obligations hereunder and to assume
the Notice Bank's obligations to the Borrower under this Agreement; provided,
that, any Replacement Bank must be reasonably acceptable to the Administrative
Agent and the Required Banks (and, in any event, may not be an Affiliate of the
Borrower). Subject to the foregoing, the Notice Bank agrees to assign without
recourse to the Replacement Bank its share of outstanding Syndicated Loans and
its Commitment, and to delegate to the Replacement Bank its obligations to the
Borrower under this Agreement and its future obligations to the Administrative
Agent under this Agreement. Upon such sale and delegation by the Notice Bank and
the purchase and assumption by the Replacement Bank, and compliance with the
provisions of Section 9.08(c), the Notice Bank shall cease to be a "Bank"
hereunder and the Replacement Bank shall become a "Bank" under this Agreement;
provided, however, that any Notice Bank shall continue to be entitled to the
indemnification provisions contained elsewhere herein.

                                  ARTICLE IX.

                                 MISCELLANEOUS

                  SECTION 9.01. NOTICES. All notices, requests and other
communications to any party hereunder shall be in writing (including telecopier
or similar writing) and shall be given to such party at its address or
telecopier number set forth on the signature pages hereof or such other address
or telecopier number as such party may hereafter specify for the purpose by
notice to each other party. Each such notice, request or other communication
shall be effective (i) if given by telecopier, when such telecopy is transmitted
to the telecopier number specified in this

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<PAGE>

Section and the confirmation is received, (ii) if given by mail, 3 Domestic
Business Days after such communication is deposited in the mails with first
class postage prepaid, addressed as aforesaid or (iii) if given by any other
means, when delivered at the address specified in this Section; provided that
notices to the Administrative Agent under Article II or Article VIII shall not
be effective until received.

                  SECTION 9.02. NO WAIVERS. No failure or delay by the
Administrative Agent or any Bank in exercising any right, power or privilege
hereunder or under any Note or other Loan Document shall operate as a waiver
thereof nor shall any single or partial exercise thereof preclude any other or
further exercise thereof or the exercise of any other right, power or privilege.
The rights and remedies herein provided shall be cumulative and not exclusive of
any rights or remedies provided by law.

                  SECTION 9.03. EXPENSES; DOCUMENTARY TAXES. The Borrower shall
pay (i) all out-of-pocket expenses of the Administrative Agent, including
reasonable fees and disbursements of special counsel for the Banks and the
Administrative Agent, in connection with the preparation of this Agreement and
the other Loan Documents, any waiver or consent hereunder or thereunder or any
amendment hereof or thereof or any Default or alleged Default hereunder or
thereunder and (ii) if a Default occurs, all out-of-pocket expenses incurred by
the Administrative Agent and the Banks, including reasonable fees and
disbursements of counsel, in connection with such Default and collection and
other enforcement proceedings resulting therefrom, including out-of-pocket
expenses incurred in enforcing this Agreement and the other Loan Documents
against the Borrower. The Borrower shall indemnify the Administrative Agent and
each Bank against any transfer taxes, documentary taxes, assessments or charges
made by any Authority by reason of the execution and delivery of this Agreement
or the other Loan Documents by the Borrower.

                  SECTION 9.04. INDEMNIFICATION. The Borrower shall indemnify
the Administrative Agent, the Banks and each Affiliate thereof and their
respective directors, officers, employees and agents from, and hold each of them
harmless against, any and all losses, liabilities, claims or damages to which
any of them may become subject, insofar as such losses, liabilities, claims or
damages arise out of or result from any actual or proposed use by the Borrower
of the proceeds of any extension of credit by any Bank hereunder or breach by
the Borrower of this Agreement or any other Loan Document or from any
investigation, litigation (including, without limitation, any actions taken by
the Administrative Agent or any of the Banks to enforce this Agreement or any of
the other Loan Documents) or other proceeding (including, without limitation,
any threatened investigation or proceeding) relating to the foregoing, and the
Borrower shall reimburse the Administrative Agent and each Bank, and each
Affiliate thereof and their respective directors, officers, employees and
agents, upon demand for any expenses (including, without limitation, legal fees)
incurred in connection with any such investigation or proceeding; but excluding
any such losses, liabilities, claims, damages or expenses incurred by reason of
the gross negligence or willful misconduct of the Person to be indemnified. If
any cause of action, suit, proceeding or claim arising from any of the foregoing
is brought against any Indemnified Person, whether such action, proceeding, suit
or claim shall be actual or threatened, or in preparation therefor, the Borrower
will have the right, at its expense, to assume the resistance and defense of
such cause of action, suit, proceeding or claim or cause the same to be resisted
and defended; provided that such Indemnified Person shall be entitled (but not

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<PAGE>

obligated) to participate jointly in such defense, in which case such
Indemnified Person will be responsible for its own legal fees or other expenses,
if any, related to such defense incurred subsequent to the joint participation
by such party in such defense. Notwithstanding the foregoing, if any Indemnified
Person shall have been advised by counsel chosen by it that there may be one or
more legal defenses available to such Indemnified Person that are materially
different from or additional to those available to the Borrowers, the
Indemnified Person may assume the defense of such action with respect to such
different or additional defenses and the Borrower agrees to reimburse such
Indemnified Person for the reasonable fees and expenses of any counsel retained
by the Indemnified Person.

                  SECTION 9.05. SETOFF; SHARING OF SETOFFS.

                  (a)      The Borrower hereby grants to the Administrative
Agent and each Bank and to Wachovia as to the Swing Loan Note, a lien for all
indebtedness and obligations owing to them from the Borrower upon all deposits
or deposit accounts, of any kind (other than trust and escrow accounts not
established for the benefit of the Administrative Agent and the Banks), or any
interest in any deposits or deposit accounts thereof, now or hereafter pledged,
mortgaged, transferred or assigned to the Administrative Agent or any such Bank
or otherwise in the possession or control of the Administrative Agent or any
such Bank for any purpose for the account or benefit of the Borrower and
including any balance of any deposit account or of any credit of the Borrower
with the Administrative Agent or any such Bank, whether now existing or
hereafter established hereby authorizing the Administrative Agent and each Bank
at any time or times (upon at least 2 Domestic Business Days' prior notice, if
no Event of Default is in existence) to apply such balances or any part thereof
to such of the indebtedness and obligations owing by the Borrower to the Banks
and/or the Administrative Agent then past due and in such amounts as they may
elect, and whether or not the collateral, if any, or the responsibility of other
Persons primarily, secondarily or otherwise liable may be deemed adequate. For
the purposes of this paragraph, all remittances and property shall be deemed to
be in the possession of the Administrative Agent or any such Bank as soon as the
same may be put in transit to it by mail or carrier or by other bailee.

                  (b)      Each Bank agrees that if it shall, by exercising any
right of setoff or counterclaim or resort to collateral security or otherwise,
receive payment of a proportion of the aggregate amount of principal and
interest owing with respect to the Note held by it which is greater than the
proportion received by any other Bank in respect of the aggregate amount of all
principal and interest owing with respect to the Note held by such other Bank,
the Bank receiving such proportionately greater payment shall purchase such
participations in the Notes held by the other Banks owing to such other Banks,
and such other adjustments shall be made, as may be required so that all such
payments of principal and interest with respect to the Notes held by the Banks
owing to such other Banks shall be shared by the Banks pro rata; provided that
(i) nothing in this Section shall impair the right of any Bank to exercise any
right of setoff or counterclaim it may have and to apply the amount subject to
such exercise to the payment of indebtedness of the Borrower other than its
indebtedness under the Notes, and (ii) if all or any portion of such payment
received by the purchasing Bank is thereafter recovered from such purchasing
Bank, such purchase from each other Bank shall be rescinded and such other Bank
shall repay to the purchasing Bank the purchase price of such participation to
the extent of such recovery together with an amount equal to such other Bank's
ratable share (according to the

                                       64
<PAGE>

proportion of (x) the amount of such other Bank's required repayment to (y) the
total amount so recovered from the purchasing Bank) of any interest or other
amount paid or payable by the purchasing Bank in respect of the total amount so
recovered. The Borrower agrees, to the fullest extent it may effectively do so
under applicable law, that any holder of a participation in a Note, whether or
not acquired pursuant to the foregoing arrangements, may exercise rights of
setoff or counterclaim and other rights with respect to such participation as
fully as if such holder of a participation were a direct creditor of the
Borrower in the amount of such participation.

                  SECTION 9.06. AMENDMENTS AND WAIVERS.

                  (a)      Any provision of this Agreement, the Notes or any
other Loan Documents may be amended or waived if, but only if, such amendment or
waiver is in writing and is signed by the Borrower and the Required Banks (and,
if the rights or duties of the Administrative Agent or the Issuing Bank are
affected thereby, by the Administrative Agent or the Issuing Bank, as the case
may be); provided that, no such amendment or waiver shall, unless signed by all
Banks, (i) change the Commitment of any Bank or subject any Bank to any
additional obligation, (ii) reduce the principal of or the rate of interest on
any Loan or any fees (other than fees payable to the Administrative Agent)
hereunder (except that the Applicable Margin may be reduced upon the
consummation of an issuance of High-Yield Notes as described in Section 5.17(n)
to a pricing grid whereon the lowest level is no lower than, for any Base Rate
Loan, 1.50%, and for any Euro-Dollar Loan or Foreign Currency Loan, 2.00%, with
the written consent of the Required Banks), (iii) change the date fixed for any
payment of principal of or interest on any Loan or any fees hereunder, (iv)
reduce the amount of principal, interest or fees due on any date fixed for the
payment thereof, (v) change the percentage of the Commitments or of the
aggregate unpaid principal amount of the Notes, or the percentage of Banks,
which shall be required for the Banks or any of them to take any action under
this Section or any other provision of this Agreement, (vi) change the manner of
application of any payments made under this Agreement or the Notes, (vii)
release or substitute all or any substantial part of the collateral (if any)
held as security for the Loans (for the avoidance of doubt not including any
release of Collateral disposed of in a transaction permitted by this Agreement)
or (viii) release any Guarantee given to support payment of the Loans.

                  (b)      The Borrower will not solicit, request or negotiate
for or with respect to any proposed waiver or amendment of any of the provisions
of this Agreement other than through the Administrative Agent, unless each Bank
shall be informed thereof by the Borrower and shall be afforded an opportunity
of considering the same and shall be supplied by the Borrower with sufficient
information to enable it to make an informed decision with respect thereto.
Executed or true and correct copies of any waiver or consent effected pursuant
to the provisions of this Agreement shall be delivered by the Administrative
Agent to each Bank forthwith following the date on which the same shall have
been executed and delivered by the requisite percentage of Banks. The Borrower
will not, directly or indirectly, pay or cause to be paid any remuneration,
whether by way of supplemental or additional interest, fee or otherwise, to any
Bank (in its capacity as such) as consideration for or as an inducement to the
entering into by such Bank of any waiver or amendment of any of the terms and
provisions of this Agreement unless such remuneration is concurrently paid, on
the same terms, ratably to all such Banks.

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<PAGE>

                  SECTION 9.07. NO MARGIN STOCK COLLATERAL. Each of the Banks
represents to the Administrative Agent and each of the other Banks that it in
good faith is not, directly or indirectly (by negative pledge or otherwise),
relying upon any Margin Stock as collateral in the extension or maintenance of
the credit provided for in this Agreement.

                  SECTION 9.08. SUCCESSORS AND ASSIGNS.

                  (a)      The provisions of this Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns; provided that the Borrower may not assign or otherwise
transfer any of its rights under this Agreement.

                  (b)      Any Bank may at any time sell to one or more Persons
(each a "Participant") participating interests in any Loan owing to such Bank,
any Note held by such Bank, any Commitment hereunder or any other interest of
such Bank hereunder. In the event of any such sale by a Bank of a participating
interest to a Participant, such Bank's obligations under this Agreement shall
remain unchanged, such Bank shall remain solely responsible for the performance
thereof, such Bank shall remain the holder of any such Note for all purposes
under this Agreement, and the Borrower and the Administrative Agent shall
continue to deal solely and directly with such Bank in connection with such
Bank's rights and obligations under this Agreement. In no event shall a Bank
that sells a participation be obligated to the Participant to take or refrain
from taking any action hereunder except that such Bank may agree that it will
not (except as provided below), without the consent of the Participant, agree to
(i) the change of any date fixed for the payment of principal of or interest on
the related loan or loans, (ii) the change of the amount of any principal,
interest or fees due on any date fixed for the payment thereof with respect to
the related loan or loans, (iii) the change of the principal of the related loan
or loans, (iv) any change in the rate at which either interest is payable
thereon or (if the Participant is entitled to any part thereof) fee is payable
hereunder from the rate at which the Participant is entitled to receive interest
or fee (as the case may be) in respect of such participation, (v) the release or
substitution of all or any substantial part of the collateral (if any) held as
security for the Loans, or (vi) the release of any Guarantee given to support
payment of the Loans. Each Bank selling a participating interest in any Loan,
Note, Commitment or other interest under this Agreement, other than a
participating interest therein, shall, within 10 Domestic Business Days of such
sale, provide the Borrower and the Administrative Agent with written
notification stating that such sale has occurred and identifying the Participant
and the interest purchased by such Participant. The Borrower agrees that each
Participant shall be entitled to the benefits of Article VIII with respect to
its participation in Loans outstanding from time to time.

                  (c)      Any Bank may at any time assign to one or more banks
or financial institutions (each an "Assignee") all or, in the case of its
Syndicated Loans and Commitments, a proportionate part of all its Syndicated
Loans and Commitments, and of its rights and obligations under this Agreement,
the Notes and the other Loan Documents, and such Assignee shall assume all such
rights and obligations, pursuant to an Assignment and Acceptance, executed by
such Assignee, such transferor Bank and the Administrative Agent (and, in the
case of an Assignee that is not then a Bank or an Affiliate or Related Fund of a
Bank), subject to clause (iii) below, by the Borrower; provided that (i) no
interest may be sold by a Bank pursuant to this paragraph (c) unless the
Assignee shall agree to assume ratably equivalent portions of the transferor
Bank's Commitment, (ii) if a Bank is assigning only a portion of its Commitment,
then, the amount of

                                       66
<PAGE>

the Commitment being assigned (determined as of the effective date of the
assignment) shall be in an amount not less than $5,000,000 (except that there
shall be no such minimum if the assignment is to any Bank or any Affiliate or
Related Fund of any Bank), and (iii) except during the continuance of a Default,
no interest may be sold by a Bank pursuant to this paragraph (c) to any Assignee
that is not then a Bank or an Affiliate or Related Fund of a Bank without the
consent of the Borrower and the Administrative Agent, which consent shall not be
unreasonably withheld. Upon (A) execution of the Assignment and Acceptance by
such transferor Bank, such Assignee, the Administrative Agent and (if
applicable) the Borrower, (B) delivery of an executed copy of the Assignment and
Acceptance to the Borrower and the Administrative Agent, (C) payment by such
Assignee to such transferor Bank of an amount equal to the purchase price agreed
between such transferor Bank and such Assignee, and (D) payment of a processing
and recordation fee to the Administrative Agent of (1) if such Assignee is a
Bank or an Affiliate or Related Fund of a Bank, $1,000, and (2) for any other
Assignee, $3,500, such Assignee shall for all purposes be a Bank party to this
Agreement and shall have all the rights and obligations of a Bank under this
Agreement to the same extent as if it were an original party hereto with a
Commitment as set forth in such instrument of assumption, and the transferor
Bank shall be released from its obligations hereunder to a corresponding extent,
and no further consent or action by the Borrower, the Banks or the
Administrative Agent shall be required. Upon the consummation of any transfer to
an Assignee pursuant to this paragraph (c), the transferor Bank, the
Administrative Agent and the Borrower shall make appropriate arrangements so
that, if required, a new Note is issued to each of such Assignee and such
transferor Bank.

                  (d)      Subject to the provisions of Section 9.09, the
Borrower authorizes each Bank to disclose to any Participant, Assignee or other
transferee (each a "Transferee") and any prospective Transferee any and all
financial information in such Bank's possession concerning the Borrower which
has been delivered to such Bank by the Borrower pursuant to this Agreement or
which has been delivered to such Bank by the Borrower in connection with such
Bank's credit evaluation prior to entering into this Agreement.

                  (e)      No Transferee shall be entitled to receive any
greater payment under Section 2.13(d) or Section 8.03 than the transferor Bank
would have been entitled to receive with respect to the rights transferred,
unless such transfer is made with the Borrower's prior written consent or by
reason of the provisions of Section 8.02 or 8.03 requiring such Bank to
designate a different Lending Office under certain circumstances or at a time
when the circumstances giving rise to such greater payment did not exist.

                  (f)      Anything in this Section 9.08 to the contrary
notwithstanding, any Bank may assign and pledge all or any portion of the Loans
and/or obligations owing to it to any Federal Reserve Bank or the United States
Treasury as collateral security pursuant to Regulation A of the Board of
Governors of the Federal Reserve System and any Operating Circular issued by
such Federal Reserve Bank, provided that any payment in respect of such assigned
Loans and/or obligations made by the Borrower to the assigning and/or pledging
Bank in accordance with the terms of this Agreement shall satisfy the Borrower's
obligations hereunder in respect of such assigned Loans and/or obligations to
the extent of such payment. No such assignment shall release the assigning
and/or pledging Bank from its obligations hereunder.

                                       67
<PAGE>

                  SECTION 9.09. CONFIDENTIALITY. Each Bank agrees to exercise
commercially reasonable efforts to keep any financial information pertaining to
the Borrower and its Affiliates and any other information delivered or made
available by the Borrower to it which is clearly indicated to be confidential
information, confidential from anyone other than persons employed or retained by
such Bank who are or are expected to become engaged in evaluating, approving,
structuring or administering the Loans; provided that nothing herein shall
prevent any Bank from disclosing such information (i) to any other Bank, (ii)
upon the order of any court or administrative agency, (iii) upon the request or
demand of any regulatory agency or authority having jurisdiction over such Bank,
(iv) which has been publicly disclosed, (v) to the extent reasonably required in
connection with any litigation to which the Administrative Agent, any Bank or
their respective Affiliates may be a party, (vi) to the extent reasonably
required in connection with the exercise of any remedy hereunder, (vii) to such
Bank's legal counsel and independent auditors, and (viii) to any actual or
proposed Participant, Assignee or other Transferee of all or part of its rights
hereunder which has agreed in writing to be bound by the provisions of this
Section 9.09; provided, that should disclosure of any such confidential
information be required by virtue of clause (ii) of the immediately preceding
sentence, to the extent permitted by law, any relevant Bank shall promptly
notify the Borrower of same so as to allow the Borrower to seek a protective
order or to take any other appropriate action; provided, further, that, no Bank
shall be required to delay compliance with any directive to disclose any such
information so as to allow the Borrower to effect any such action.

                  SECTION 9.10. REPRESENTATION BY BANKS. Each Bank hereby
represents that it is a commercial lender or financial institution which makes
loans in the ordinary course of its business and that it will make its Loans
hereunder for its own account in the ordinary course of such business; provided
that, subject to Section 9.08, the disposition of the Note or Notes held by that
Bank shall at all times be within its exclusive control.

                  SECTION 9.11. OBLIGATIONS SEVERAL. The obligations of each
Bank hereunder are several, and no Bank shall be responsible for the obligations
or commitment of any other Bank hereunder. Nothing contained in this Agreement
and no action taken by the Banks pursuant hereto shall be deemed to constitute
the Banks to be a partnership, an association, a joint venture or any other kind
of entity. The amounts payable at any time hereunder to each Bank shall be a
separate and independent debt, and each Bank shall be entitled to protect and
enforce its rights arising out of this Agreement or any other Loan Document and
it shall not be necessary for any other Bank to be joined as an additional party
in any proceeding for such purpose.

                  SECTION 9.12. GEORGIA LAW. This Agreement and each Note shall
be construed in accordance with and governed by the law of the State of Georgia.

                  SECTION 9.13. SEVERABILITY. In case any one or more of the
provisions contained in this Agreement, the Notes or any of the other Loan
Documents should be invalid, illegal or unenforceable in any respect, the
validity, legality and enforceability of the remaining provisions contained
herein and therein shall not in any way be affected or impaired thereby and
shall be enforced to the greatest extent permitted by law.

                  SECTION 9.14. INTEREST. In no event shall the amount of
interest, and all charges, amounts or fees contracted for, charged or collected
pursuant to this Agreement, the Notes or the

                                       68
<PAGE>

other Loan Documents and deemed to be interest under applicable law
(collectively, "Interest") exceed the highest rate of interest allowed by
applicable law (the "Maximum Rate"), and in the event any such payment is
inadvertently received by any Bank, then the excess sum (the "Excess") shall be
credited as a payment of principal, unless the Borrower shall notify such Bank
in writing that it elects to have the Excess returned forthwith. It is the
express intent hereof that the Borrower not pay and the Banks not receive,
directly or indirectly in any manner whatsoever, interest in excess of that
which may legally be paid by the Borrower under applicable law. The right to
accelerate maturity of any of the Loans does not include the right to accelerate
any interest that has not otherwise accrued on the date of such acceleration,
and the Administrative Agent and the Banks do not intend to collect any unearned
interest in the event of any such acceleration. All monies paid to the
Administrative Agent or the Banks hereunder or under any of the Notes or the
other Loan Documents, whether at maturity or by prepayment, shall be subject to
rebate of unearned interest as and to the extent required by applicable law. By
the execution of this Agreement, the Borrower covenants, to the fullest extent
permitted by law, that (i) the credit or return of any Excess shall constitute
the acceptance by the Borrower of such Excess, and (ii) the Borrower shall not
seek or pursue any other remedy, legal or equitable, against the Administrative
Agent or any Bank, based in whole or in part upon contracting for charging or
receiving any Interest in excess of the Maximum Rate. For the purpose of
determining whether or not any Excess has been contracted for, charged or
received by the Administrative Agent or any Bank, all interest at any time
contracted for, charged or received from the Borrower in connection with this
Agreement, the Notes or any of the other Loan Documents shall, to the extent
permitted by applicable law, be amortized, prorated, allocated and spread in
equal parts throughout the full term of the Commitments. The Borrower, the
Administrative Agent and each Bank shall, to the maximum extent permitted under
applicable law, (i) characterize any non-principal payment as an expense, fee or
premium rather than as Interest and (ii) exclude voluntary prepayments and the
effects thereof. The provisions of this Section shall be deemed to be
incorporated into each Note and each of the other Loan Documents (whether or not
any provision of this Section is referred to therein). All such Loan Documents
and communications relating to any Interest owed by the Borrower and all figures
set forth therein shall, for the sole purpose of computing the extent of
obligations hereunder and under the Notes and the other Loan Documents be
automatically recomputed by the Borrower, and by any court considering the same,
to give effect to the adjustments or credits required by this Section.

                  SECTION 9.15. INTERPRETATION. No provision of this Agreement
or any of the other Loan Documents shall be construed against or interpreted to
the disadvantage of any party hereto by any court or other governmental or
judicial authority by reason of such party having or being deemed to have
structured or dictated such provision.

                  SECTION 9.16. WAIVER OF JURY TRIAL; CONSENT TO JURISDICTION.
To the fullest extent permitted by law, the Borrower (a) and each of the Banks
and the Administrative Agent irrevocably waives any and all right to trial by
jury in any legal proceeding arising out of this Agreement, any of the other
Loan Documents, or any of the transactions contemplated hereby or thereby, (b)
submits to the nonexclusive personal jurisdiction in the State of Georgia, the
courts thereof and the United States District Courts sitting therein, for the
enforcement of this Agreement, the Notes and the other Loan Documents, (c)
waives any and all personal rights under the law of any jurisdiction to object
on any basis (including, without limitation,

                                       69
<PAGE>

inconvenience of forum) to jurisdiction or venue within the State of Georgia for
the purpose of litigation to enforce this Agreement, the Notes or the other Loan
Documents, and (d) agrees that service of process may be made upon it in the
manner prescribed in Section 9.01 for the giving of notice to the Borrower.
Nothing herein contained, however, shall prevent the Administrative Agent from
bringing any action or exercising any rights against any security and against
the Borrower personally, and against any assets of the Borrower, within any
other state or jurisdiction.

                  SECTION 9.17. COUNTERPARTS. This Agreement may be signed in
any number of counterparts, each of which shall be an original, with the same
effect as if the signatures thereto and hereto were upon the same instrument.

                  SECTION 9.18. SOURCE OF FUNDS -- ERISA. Each of the Banks
hereby severally (and not jointly) represents to the Borrower that no part of
the funds to be used by such Bank to fund the Loans hereunder from time to time
constitutes (i) assets allocated to any separate account maintained by such Bank
in which any employee benefit plan (or its related trust) has any interest nor
(ii) any other assets of any employee benefit plan. As used in this Section, the
terms "employee benefit plan" and "separate account" shall have the respective
meanings assigned to such terms in Section 3 of ERISA.

                  SECTION 9.19. EUROPEAN ECONOMIC AND MONETARY UNION. (a) In
this Section 9.19 and in each other provision of this Agreement to which
reference is made in this Section 9.19 expressly or impliedly, the following
terms have the meanings given to them in this Section 9.19

                  "commencement of the third stage of EMU" means January 1,
1999.

                  "EMU" means economic and monetary union as contemplated in the
Treaty on European Union.

                  "EMU legislation" means legislative measures of the European
Council for the introduction of, changeover to or operation of the euro.

                  "euro" means the single currency of the participating member
states as of the date, for each such participating member state, such
participating member state's national currency unit shall be substituted by the
euro.

                  "euro unit" means the currency unit of the euro.

                  "national currency unit" means the unit of currency of a
participating member state, as defined on the day before the commencement of the
third stage of EMU.

                  "participating member state" means each state so described in
any EMU legislation, and in particular, as of the commencement of the third
stage of EMU, Belgium, Germany, Spain, France, Ireland, Italy, Luxembourg,
Netherlands, Austria, Portugal and Finland.

                  "Treaty on European Union" means the Treaty of Rome of March
25, 1957, as amended by the Single European Act 1986 and the Maastricht Treaty
(which was signed at

                                       70
<PAGE>

Maastricht on February 7, 1992, and came into force on November 1, 1993), as
amended from time to time.

                  (b)      The provisions of paragraphs (c) to (j) below
(inclusive) shall be effective at and from the commencement of the third stage
of EMU, provided, that if and to the extent that any such provision relates to
any state (or the currency of such state) that is not a participating member
state on the commencement of the third stage of EMU, such provisions shall
become effective in relation to such state (and the currency of such state) at
and from the date on which such state becomes a participating member state.

                  (c)      Each obligation under this Agreement of a party to
this Agreement which has been denominated in the national currency unit of a
participating member state shall be redenominated into the euro unit in
accordance with EMU legislation.

                  (d)      Any Foreign Currency Loan in the currency of a
participating member state shall be made in the euro unit.

                  (e)      With respect to any amount denominated or to be
denominated in the euro or a national currency unit, any reference to a "Foreign
Currency Business Day" shall be construed as a reference to a day (other than a
Saturday or Sunday) on which banks are generally open for business in

                           (i)      Atlanta, Georgia, London and New York City;
                                    and

                           (ii)     Frankfurt am Main, Germany or any other
                  financial center relating to the relevant national currency
                  unit (or such principal financial center or centers in such
                  participating member state or states as the Administrative
                  Agent may from time to time nominate for this purpose).

                  (f)      Sections 2.02(c) and 2.12(a) shall be construed so
that, in relation to the payment of any amount of euro units, such amount shall
be made available to the Administrative Agent in immediately, freely
transferable, cleared funds to such account with such bank in Frankfurt am Main,
Germany (or such other principal financial center in such participating member
state as the Administrative Agent may from time to time nominate for this
purpose) as the Administrative Agent shall from time to time nominate for this
purpose.

                  (g)      Any amount payable by the Administrative Agent to the
Banks under this Agreement in the currency of a participating member state shall
be paid in the euro unit.

                  (h)      With respect to the payment of any amount denominated
in the euro, the Administrative Agent shall not be liable to the Borrower or any
of the Banks in any way whatsoever for any delay, or the consequences of any
delay, in the crediting to any account of any amount required by this Agreement
to be paid by the Administrative Agent if the Administrative Agent shall have
taken all relevant steps to achieve, on the date required by this Agreement, the
payment of such amount in immediately available, freely transferable, cleared
funds (in the euro unit) to the account with the bank in the principal financial
center in the participating member state which the Borrower or, as the case may
be, any Bank shall have specified for such purpose. In this paragraph (h), "all
relevant steps" means all such steps as

                                       71
<PAGE>

may be prescribed from time to time by the regulations or operating procedures
of such clearing or settlement system as the Administrative Agent may from time
to time determine for the purpose of clearing or settling payments of the euro.

                  (i)      If the basis of accrual of interest or fees expressed
in this Agreement with respect to the currency of any state that becomes a
participating member state shall be inconsistent with any convention or practice
in the London interbank market for the basis of accrual of interest or fees in
respect of the euro, such convention or practice shall replace such expressed
basis effective as of and from the date on which such state becomes a
participating member state; provided, that if any Foreign Currency Loan in the
currency of such state is outstanding immediately prior to such date, such
replacement shall take effect, with respect to such Foreign Currency Loan, at
the end of the then current Interest Period.

                  (j)      Without prejudice and in addition to any method of
conversion or rounding prescribed by any EMU legislation and without prejudice
to the respective liabilities for indebtedness of the Borrower to the Banks and
the Banks to the Borrower under or pursuant to this Agreement:

                           (i)      each reference in this Agreement to a
                  minimum amount (or an integral multiple thereof) in a
                  national currency unit to be paid to or by the Administrative
                  Agent shall be replaced by a reference to such reasonably
                  comparable and convenient amount (or an integral multiple
                  thereof) in the euro unit as the Administrative Agent may from
                  time to time specify; and

                           (ii)     except as expressly provided in this Section
                  9.19, each provision of this Agreement shall be subject to
                  such reasonable changes of construction as the Administrative
                  Agent may from time to time specify to be necessary or
                  appropriate to reflect the introduction of or changeover to
                  the euro in participating member states.

                  (k)      The Borrower shall from time to time, at the request
of the Administrative Agent, pay to the Administrative Agent for the account of
each Bank the amount of any cost or increased cost incurred by, or of any
reduction in amount payable to or in the effective return on its capital to, or
of interest or other return forgone by, such Bank or any holding company of such
Bank as a result of the introduction of, changeover to or operation of the euro
in any participating member state.

                  SECTION 9.20. [RESERVED].

                  SECTION 9.21. EXISTING CREDIT AGREEMENT; EFFECTIVENESS OF
AMENDMENT AND RESTATEMENT. Until this Agreement becomes effective upon the
satisfaction of the conditions contained in Section 3.01, the Existing Credit
Agreement shall remain in full force and effect and shall not be affected
hereby. After the Restatement Effective Date, all obligations of the Borrower
under the Existing Credit Agreement shall become obligations of the Borrower
hereunder, secured by the Security Documents in accordance with their terms.

               [Signatures are contained on the following pages.]

                                       72
<PAGE>

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

                                      RUSSELL CORPORATION              (SEAL)

                                      By:
                                          -------------------------------------
                                           Robert D. Martin
                                           Senior Vice President

                                      Russell Corporation
                                      3330 Cumberland Blvd., Suite 800
                                      Atlanta, GA 30339
                                      Attention:  Legal Department
                                      Telecopier No. (678) 742-8514
                                      Confirmation No. (678) 742-8111

<PAGE>

                                      RUSSELL EUROPE LIMITED     (SEAL)

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

                                      Russell Europe Limited
                                      c/o Russell Corporation
                                      3330 Cumberland Blvd., Suite 800
                                      Atlanta, GA 30339
                                      Attention:  Legal Department
                                      Telecopier No. (678) 742-8514
                                      Confirmation No. (678) 742-8111

<PAGE>

COMMITMENTS                  WACHOVIA BANK, N.A.,
                             as Administrative Agent and as a Bank       (SEAL)

$56,200,000(1)               By:
                                 ----------------------------------------------
                                  Title:

                             Lending Office
                             Wachovia Bank, N.A.
                             NC0760
                             301 South College Street
                             Charlotte, NC 28288-0760
                             Attention:  Roger Pelz, Senior Vice President
                             Telecopier:  (704) 374-6319
                             Confirmation:  (704) 374-6060

---------------
(1) Plus the commitment to fund 100% of the Foreign Currency Loans which
otherwise would be allocated to Aliant Bank, as provided in Section 2.01(a).

<PAGE>

$48,000,000                     SUNTRUST BANK (formerly Suntrust Bank, Atlanta),

                                as Syndication Agent and as a Bank (SEAL)

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

                                Lending Office

                                SunTrust Bank
                                303 Peachtree Street, 3rd Floor
                                Atlanta, Georgia 30308
                                Attention:  Laura Kahn
                                Telecopier No.  (404) 575-2594
                                Confirmation No.  (404) 588-7705

<PAGE>

$48,000,000                     FIRST UNION NATIONAL BANK,

                                as Documentation Agent, Issuing Bank and as
                                a Bank       (SEAL)

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

                                Lending Office

                                First Union National Bank
                                NC0760
                                301 South College Street
                                Charlotte, NC 28288-0760
                                Attention:  Roger Pelz, Senior Vice President
                                Telecopier:  (704) 374-6319
                                Confirmation:  (704) 374-6060

<PAGE>

$48,000,000                      AMSOUTH BANK, as a Bank    (SEAL)

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

                                 Lending Office

                                 AmSouth Bank
                                 AmSouth Sonat Tower, 7th Floor
                                 1900 Fifth Avenue North
                                 Birmingham, AL  35203
                                 Attention:  Large Corporate
                                 Telecopier No.:  (205) 571-7578
                                 Confirmation No.:  (205) 583-4522

<PAGE>

$25,000,000                      JPMORGAN CHASE BANK (formerly known as
                                 The Chase Manhattan Bank), as a Bank    (SEAL)

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

                                 Lending Office

                                 JPMorgan Chase Bank
                                 1411 Broadway, 5th Floor
                                 New York, New York 10018
                                 Attention:  James A. Knight
                                 Telecopier No.  (212) 391-2102
                                 Confirmation No.  (212) 391-7679

<PAGE>

$4,800,000                       ALIANT BANK       (SEAL)

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

                                 Lending Office

                                 Aliant Bank
                                 1100 Corporate Parkway
                                 P.O. Box 383067
                                 Birmingham, Alabama 35238
                                 Attention:  John J. Thomas
                                 Telecopier No.  (205) 408-2001
                                 Confirmation No.  (201) 408-2003

<PAGE>

$20,000,000                      COMERICA BANK     (SEAL)

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

                                 Lending Office

                                 Comerica Bank
                                 500 Woodward Avenue
                                 Mail Code 3280
                                 Detroit, MI 48226
                                 Attention:  Danielle Butler
                                 Telecopier No.:  (313) 222-3330
                                 Confirmation No.:  (313) 222-6122

TOTAL COMMITMENTS

$250,000,000

<PAGE>

                                                                     EXHIBIT A-1

                           SYNDICATED DOLLAR LOAN NOTE

                                Atlanta, Georgia
                                October 15, 1999

                  For value received, RUSSELL CORPORATION, an Alabama
corporation (the "Borrower"), promises to pay to the order of
_______________________________________ ____________, a ____________________
(the "Bank"), for the account of its Lending Office, the principal sum of
___________________________________ AND NO/100 DOLLARS ($__________), or such
lesser amount as shall equal the aggregate unpaid principal amount of all
Syndicated Dollar Loans made by the Bank to the Borrower pursuant to the Credit
Agreement referred to below, on the dates and in the amounts provided for
Syndicated Dollar Loans in the Credit Agreement. The Borrower promises to pay
interest on the unpaid principal amount of this Syndicated Dollar Loan Note on
the dates and at the rate or rates provided for in the Credit Agreement.
Interest on any overdue principal of and, to the extent permitted by law,
overdue interest on the principal amount hereof shall bear interest at the
Default Rate, as provided for in the Credit Agreement. All such payments of
principal and interest shall be made in lawful money of the United States in
Federal or other immediately available funds at the office of Wachovia Bank,
N.A., 191 Peachtree Street, N.E., Atlanta, Georgia 30303-1757, or such other
address as may be specified from time to time pursuant to the Credit Agreement.

                  All Syndicated Dollar Loans made by the Bank, the respective
maturities thereof, the interest rates from time to time applicable thereto, and
all repayments of the principal thereof shall be recorded by the Bank and, prior
to any transfer hereof, endorsed by the Bank on the schedule attached hereto, or
on a continuation of such schedule attached to and made a part hereof; provided
that the failure of the Bank to make any such recordation or endorsement shall
not affect the obligations of the Borrower hereunder or under the Credit
Agreement.

                  This Syndicated Dollar Loan Note is one of the Syndicated
Dollar Loan Notes referred to in the Credit Agreement dated as of October 15,
1999 among Russell Corporation, Russell Europe Limited, the Banks listed on the
signature pages thereof, Wachovia Bank, N.A., as Administrative Agent, Suntrust
Bank, Atlanta, as Syndication Agent and First Union National Bank, as
Documentation Agent (as the same may be amended and modified from time to time,
the "Credit Agreement"). Terms defined in the Credit Agreement are used herein
with the same meanings. Reference is made to the Credit Agreement for provisions
for the optional and mandatory prepayment and the repayment hereof and the
acceleration of the maturity hereof, as well as the obligation of the Borrower
to pay all costs of collection, including reasonable attorneys fees, in the
event this Syndicated Dollar Loan Note is collected by law or through an
attorney at law.

                  The Borrower hereby waives presentment, demand, protest,
notice of demand, protest and nonpayment and any other notice required by law
relative hereto, except to the extent as otherwise may be expressly provided for
in the Credit Agreement.

<PAGE>

                  IN WITNESS WHEREOF, the Borrower has caused this Syndicated
Dollar Loan Note to be duly executed, under seal, by its duly authorized officer
as of the day and year first above written.

                                       RUSSELL CORPORATION        (SEAL)

                                       By:
                                          -------------------------------------
                                          Eric N. Hoyle
                                          Executive Vice President and Chief
                                              Financial Officer

<PAGE>

                      Syndicated Dollar Loan Note (cont'd)

                   SYNDICATED LOANS AND PAYMENTS OF PRINCIPAL

<TABLE>
<CAPTION>
     DATE             BASE RATE OR             AMOUNT        PRINCIPAL REPAID     MATURITY DATE         NOTATION
                    EURO DOLLAR LOAN          OF LOAN                                                    MADE BY
<S>                 <C>                       <C>             <C>                 <C>                   <C>
----------------------------------------------------------------------------------------------------------------------

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</TABLE>

<PAGE>

                                                                     EXHIBIT A-2

                                   [RESERVED]

<PAGE>
                                                                     EXHIBIT A-3

                                SWING LOAN NOTE

                                Atlanta, Georgia
                                October 15, 1999

                  For value received, RUSSELL CORPORATION, an Alabama
corporation (the "Borrower"), promises to pay to the order of WACHOVIA BANK,
N.A., a national banking association (the "Bank"), for the account of its
Lending Office, the principal sum of Fifteen Million and No/100 Dollars
($15,000,000), or such lesser amount as shall equal the aggregate unpaid
principal amount of all Swing Loan made by the Bank to the Borrower pursuant to
the Credit Agreement referred to below, on the dates and in the amounts provided
in the Credit Agreement. The Borrower promises to pay interest on the unpaid
principal amount of this Swing Loan Note at the rate or rates provided for Base
Rate Loans or Transaction Rate Loans, as the case may be, on the dates provided
for in the Credit Agreement. Interest on any overdue principal of and, to the
extent permitted by law, overdue interest on the principal amount hereof shall
bear interest at the Default Rate, as provided for in the Credit Agreement. All
such payments of principal and interest shall be made in lawful money of the
United States in Federal or other immediately available funds at the office of
Wachovia Bank of Georgia, N.A., 191 Peachtree Street, N.E., Atlanta, Georgia
30303-1757, or such other address as may be specified from time to time pursuant
to the Credit Agreement.

                  All Swing Loans made by the Bank, the respective maturities
thereof, and all repayments of the principal thereof shall be recorded by the
Bank and, prior to any transfer hereof, endorsed by the Bank on the schedule
attached hereto, or on a continuation of such schedule attached to and made a
part hereof; provided that the failure of the Bank to make any such recordation
or endorsement shall not affect the obligations of the Borrower hereunder or
under the Credit Agreement.

                  This Swing Loan Note is the Swing Loan Note referred to in the
Credit Agreement dated as of even date herewith among Russell Corporation,
Russell Europe Limited, the Banks listed on the signature pages thereof,
Wachovia Bank, N.A., as Administrative Agent, Suntrust Bank, Atlanta, as
Syndication Agent and First Union National Bank, as Documentation Agent (as the
same may be amended and modified from time to time, the "Credit Agreement").
Terms defined in the Credit Agreement are used herein with the same meanings.
Reference is made to the Credit Agreement for provisions for the optional and
mandatory prepayment and the repayment hereof and the acceleration of the
maturity hereof.

<PAGE>

                  IN WITNESS WHEREOF, the Borrower has caused this Swing Loan
Note to be duly executed, under seal, by its duly authorized officer as of the
day and year first above written.

                                      RUSSELL CORPORATION        (SEAL)

                                      By:
                                          -------------------------------------
                                           Eric N. Hoyle
                                           Executive Vice President and Chief
                                              Financial Officer

<PAGE>

                            Swing Loan Note (cont'd)

<TABLE>
<CAPTION>

----------------------------------------------------------------------------------------------
                      AMOUNT           AMOUNT OF         MATURITY            NOTATION
     DATE             OF LOAN       PRINCIPAL REPAID        DATE              MADE BY
<S>                   <C>           <C>                  <C>                 <C>
----------------------------------------------------------------------------------------------

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

<PAGE>

                                                                     EXHIBIT A-4

                           FOREIGN CURRENCY LOAN NOTE
                                Atlanta, Georgia
                                October 15, 1999

                  For value received, RUSSELL CORPORATION, an Alabama
corporation (the "Borrower"), promises to pay to the order of
____________________________________, a ____________________ (the "Bank"), for
the account of its Lending Office, the aggregate unpaid principal amount of all
Foreign Currency Loans made by the Bank to the Borrower pursuant to the Credit
Agreement referred to below, on the dates and in the amounts provided in the
Credit Agreement. The Borrower promises to pay interest on the unpaid principal
amount of this Note on the dates and at the rate or rates provided for Foreign
Currency Loans in the Credit Agreement. Interest on any overdue principal of
and, to the extent permitted by law, overdue interest on the principal amount
hereof shall bear interest at the Default Rate, as provided for in the Credit
Agreement. All such payments of principal and interest shall be made in lawful
money of the applicable Foreign Currency in immediately available funds at the
office of Wachovia Bank, N.A., 191 Peachtree Street, N.E., Atlanta, Georgia
30303-1757, or such other address as may be specified from time to time pursuant
to the Credit Agreement.

                  All Foreign Currency Loans made by the Bank, the respective
maturities thereof, the interest rates from time to time applicable thereto, and
all repayments of the principal thereof shall be recorded by the Bank and, prior
to any transfer hereof, endorsed by the Bank on the schedule attached hereto, or
on a continuation of such schedule attached to and made a part hereof; provided
that the failure of the Bank to make any such recordation or endorsement shall
not affect the obligations of the Borrower hereunder or under the Credit
Agreement.

                  This Note is one of the Foreign Currency Loan Notes referred
to in the Credit Agreement dated as of October 15, 1999, among Russell
Corporation, Russell Europe Limited, the Banks listed on the signature pages
thereof, Wachovia Bank, N.A., as Administrative Agent, Suntrust Bank, Atlanta,
as Syndication Agent and First Union National Bank, as Documentation Agent (as
the same may be amended and modified from time to time, the "Credit Agreement").
Terms defined in the Credit Agreement are used herein with the same meanings.
Reference is made to the Credit Agreement for provisions for the optional and
mandatory prepayment and the repayment hereof and the acceleration of the
maturity hereof, as well as the obligation of the Borrower to pay all costs of
collection, including reasonable attorneys fees, in the event this Foreign
Currency Loan Note is collected by law or through an attorney at law.

                  The Borrower hereby waives presentment, demand, protest,
notice of demand, protest and nonpayment and any other notice required by law
relative hereto, except to the extent as otherwise may be expressly provided for
in the Credit Agreement.

<PAGE>

                  IN WITNESS WHEREOF, the Borrower has caused this Foreign
Currency Loan Note to be duly executed, under seal, by its duly authorized
officer as of the day and year first above written.

                                        RUSSELL CORPORATION        (SEAL)

                                        By:
                                            --------------------------------
                                             Eric N. Hoyle
                                             Executive Vice President and Chief
                                                 Financial Officer

<PAGE>

                       Foreign Currency Loan Note (cont'd)

                   SCHEDULE OF LOANS AND PAYMENTS OF PRINCIPAL
                                       TO

                              NOTE OF ____________
                             DATED October 15, 1999

<TABLE>
<CAPTION>

                   PRINCIPAL                      MATURITY OF
      DATE         AMOUNT OF LOAN                 INTEREST               PRINCIPAL            UNPAID
                   AND CURRENCY                   PERIOD                 AMOUNT PAID          BALANCE
<S>                <C>                            <C>                    <C>                  <C>
-------------------------------------------------------------------------------------------------------------------

</TABLE>

<PAGE>

                                                                     EXHIBIT A-5

                           FOREIGN CURRENCY LOAN NOTE
                                Atlanta, Georgia
                                October 15, 1999

                  For value received, RUSSELL EUROPE LIMITED, a United Kingdom
corporation (the "Borrower"), promises to pay to the order of
_____________________ ______________, a ____________________ (the "Bank"), for
the account of its Lending Office, the aggregate unpaid principal amount of all
Foreign Currency Loans made by the Bank to the Borrower pursuant to the Credit
Agreement referred to below, on the dates and in the amounts provided in the
Credit Agreement. The Borrower promises to pay interest on the unpaid principal
amount of this Note on the dates and at the rate or rates provided for Foreign
Currency Loans in the Credit Agreement. Interest on any overdue principal of
and, to the extent permitted by law, overdue interest on the principal amount
hereof shall bear interest at the Default Rate, as provided for in the Credit
Agreement. All such payments of principal and interest shall be made in lawful
money of the applicable Foreign Currency in immediately available funds at the
office of Wachovia Bank, N.A., 191 Peachtree Street, N.E., Atlanta, Georgia
30303-1757, or such other address as may be specified from time to time pursuant
to the Credit Agreement.

                  All Foreign Currency Loans made by the Bank, the respective
maturities thereof, the interest rates from time to time applicable thereto, and
all repayments of the principal thereof shall be recorded by the Bank and, prior
to any transfer hereof, endorsed by the Bank on the schedule attached hereto, or
on a continuation of such schedule attached to and made a part hereof; provided
that the failure of the Bank to make any such recordation or endorsement shall
not affect the obligations of the Borrower hereunder or under the Credit
Agreement.

                  This Note is one of the Foreign Currency Loan Notes referred
to in the Credit Agreement dated as of October 15, 1999 among Russell
Corporation, Russell Europe Limited, the Banks listed on the signature pages
thereof, Wachovia Bank, N.A., as Administrative Agent, Suntrust Bank, Atlanta,
as Syndication Agent and First Union National Bank, as Documentation Agent (as
the same may be amended and modified from time to time, the "Credit Agreement").
Terms defined in the Credit Agreement are used herein with the same meanings.
Reference is made to the Credit Agreement for provisions for the optional and
mandatory prepayment and the repayment hereof and the acceleration of the
maturity hereof, as well as the obligation of the Borrower to pay all costs of
collection, including reasonable attorneys fees, in the event this Foreign
Currency Loan Note is collected by law or through an attorney at law.

                  The Borrower hereby waives presentment, demand, protest,
notice of demand, protest and nonpayment and any other notice required by law
relative hereto, except to the extent as otherwise may be expressly provided for
in the Credit Agreement.

<PAGE>

                  IN WITNESS WHEREOF, the Borrower has caused this Foreign
Currency Loan Note to be duly executed, under seal, by its duly authorized
officer as of the day and year first above written.

                                          RUSSELL EUROPE LIMITED     (SEAL)

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

<PAGE>

                       Foreign Currency Loan Note (cont'd)

                   SCHEDULE OF LOANS AND PAYMENTS OF PRINCIPAL
                                       TO

                        NOTE OF__________________________
                             DATED October 15, 1999

<TABLE>
<CAPTION>
                   PRINCIPAL                      MATURITY OF
      DATE         AMOUNT OF LOAN                 INTEREST               PRINCIPAL            UNPAID
                   AND CURRENCY                   PERIOD                 AMOUNT PAID          BALANCE
-----------------------------------------------------------------------------------------------------
<S>                <C>                            <C>                    <C>                  <C>

</TABLE>

<PAGE>

                                                                       EXHIBIT B

                                   [RESERVED]

<PAGE>

                                                                       EXHIBIT C

                                   [RESERVED]

<PAGE>

                                                                       EXHIBIT D

                            ASSIGNMENT AND ACCEPTANCE
                       Dated ________________ ___, 20____

                  Reference is made to the Amended and Restated Credit Agreement
dated as of January 31, 2002 (together with all amendments and modifications
thereto, the "Credit Agreement") among Russell Corporation, an Alabama
corporation (the "Borrower"), Russell Europe Limited, the Banks (as defined in
the Credit Agreement), Wachovia Bank, N.A., as Administrative Agent (the
"Administrative Agent"), Suntrust Bank (formerly Suntrust Bank, Atlanta), as
Syndication Agent and First Union National Bank, as Documentation Agent). Terms
defined in the Credit Agreement are used herein with the same meaning.

                  ________________________________________________________ (the
"Assignor") and _________________________________________ (the "Assignee") agree
as follows:

                  The Assignor hereby sells and assigns to the Assignee, without
recourse to the Assignor, and the Assignee hereby purchases and assumes from the
Assignor, a _______% interest in and to all of the Assignor's rights and
obligations under the Credit Agreement as of the Effective Date (as defined
below) (including, without limitation, a _______% interest (which on the
Effective Date hereof is $__________) in the Assignor's Commitment and a
________ interest (which on the Effective Date hereof is $___________________)
in the Syndicated Loans [and Swing Loans] owing to the Assignor and a ____%
interest in the Notes held by the Assignor (which on the Effective Date hereof
is $__________).

                  The Assignor (i) makes no representation or warranty and
assumes no responsibility with respect to any statements, warranties or
representations made in or in connection with the Credit Agreement or the
execution, legality, validity, enforceability, genuineness, sufficiency or value
of the Credit Agreement or any other instrument or document furnished pursuant
thereto, other than that it is the legal and beneficial owner of the interest
being assigned by it hereunder, that such interest is free and clear of any
adverse claim and that as of the date hereof its Commitment (without giving
effect to assignments thereof which have not yet become effective) is
$__________ and the aggregate outstanding principal amount of Syndicated Loans
[and Swing Loans] owing to it (without giving effect to assignments thereof
which have not yet become effective) is $___________________; (ii) makes no
representation or warranty and assumes no responsibility with respect to the
financial condition of the Borrower or the performance or observance by the
Borrower of any of its obligations under the Credit Agreement or any other
instrument or document furnished pursuant thereto; and (iii) attaches the Notes
referred to in paragraph 1 above and requests that the Administrative Agent
exchange such Notes for new Notes as follows each dated the Effective Date: [a
Syndicated Dollar Loan Note in the principal amount of $________________ and a
new Foreign Currency Loan Note, each payable to the order of the Assignor,] a
Syndicated Dollar Loan Note in the principal amount of $_______________ and a
new Foreign Currency Loan Note, each payable to the order of the Assignee [and a
Swing Loan Note payable to the order of the Assignee].

<PAGE>

                  The Assignee (i) confirms that it has received a copy of the
Credit Agreement, together with copies of the financial statements referred to
in Section 4.04(a) thereof (or any more recent financial statements of the
Borrower delivered pursuant to Section 5.01(a) or (b) thereof) and such other
documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into this Assignment and Acceptance; (ii) agrees
that it will, independently and without reliance upon the Administrative Agent,
the Assignor or any other Bank and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under the Credit Agreement; (iii) confirms that it
is a bank or financial institution; (iv) appoints and authorizes the
Administrative Agent to take such action as agent on its behalf and to exercise
such powers under the Credit Agreement as are delegated to the Administrative
Agent by the terms thereof, together with such powers as are reasonably
incidental thereto; (v) agrees that it will perform in accordance with their
terms all of the obligations which by the terms of the Credit Agreement are
required to be performed by it as a Bank; (vi) specifies as its Lending Office
(and address for notices) the office set forth beneath its name on the signature
pages hereof, (vii) represents and warrants that the execution, delivery and
performance of this Assignment and Acceptance are within its corporate powers
and have been duly authorized by all necessary corporate action, (viii) makes
the representation and warranty contained in Section 9.18 of the Credit
Agreement[, and (ix) attaches the forms prescribed by the Internal Revenue
Service of the United States certifying as to the Assignee's status for purposes
of determining exemption from United States withholding taxes with respect to
all payments to be made to the Assignee under the Credit Agreement and the Notes
or such other documents as are necessary to indicate that all such payments are
subject to such taxes at a rate reduced by an applicable tax treaty].

                  The Effective Date for this Assignment and Acceptance shall be
_______________, _____(the "Effective Date"). Following the execution of this
Assignment and Acceptance, it will be delivered to the Administrative Agent for
execution and acceptance by the Administrative Agent and to the Borrower for
execution by the Borrower.

                  Upon such execution and acceptance by the Administrative Agent
[and execution by the Borrower] [If required by the Credit Agreement], from and
after the Effective Date, (i) the Assignee shall be a party to the Credit
Agreement and, to the extent rights and obligations have been transferred to it
by this Assignment and Acceptance, have the rights and obligations of a Bank
thereunder and (ii) the Assignor shall, to the extent its rights and obligations
have been transferred to the Assignee by this Assignment and Acceptance,
relinquish its rights (other than under Sections 8.03, 9.03 and 9.04 of the
Credit Agreement) and be released from its obligations under the Credit
Agreement.

                  Upon such execution and acceptance by the Administrative Agent
[and execution by the Borrower] [If required by the Credit Agreement], from and
after the Effective Date, the Administrative Agent shall make all payments in
respect of the interest assigned hereby to the Assignee. The Assignor and
Assignee shall make all appropriate adjustments in payments for periods prior to
such acceptance by the Administrative Agent directly between themselves.

                  This Assignment and Acceptance shall be governed by, and
construed in accordance with, the laws of the State of Georgia.

<PAGE>

                                   [NAME OF ASSIGNOR]

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

                                   [NAME OF ASSIGNEE]

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

                                   Lending Office:
                                   [Address]

                                   WACHOVIA BANK, N.A.,
                                   As Administrative Agent

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

                                   RUSSELL CORPORATION
                                   If required by the Credit Agreement

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

<PAGE>

                                                                     EXHIBIT E-1

                               NOTICE OF BORROWING

                          ----------------- ----, -----

Wachovia Bank, N.A., as Administrative Agent
191 Peachtree Street, N.E.
Atlanta, Georgia  30303-1757
Attention: Syndications Group

                  Re:      Amended and Restated Credit Agreement (as amended and
                           modified from time to time, the "Credit Agreement")
                           dated as of January 31, 2002 by and among Russell
                           Corporation and Russell Europe Limited, as Borrower,
                           the Banks from time to time parties thereto, Wachovia
                           Bank, N.A., as Administrative Agent, Suntrust Bank
                           (formerly Suntrust Bank, Atlanta), as Syndication
                           Agent and First Union National Bank, as Documentation
                           Agent.

Gentlemen:

                  Unless otherwise defined herein, capitalized terms used herein
shall have the meanings attributable thereto in the Credit Agreement.

                  This Notice of Borrowing is delivered to you pursuant to
Section 2.02 of the Credit Agreement.

                  [The Borrower] [Russell Europe Limited], as the Borrower with
respect to Foreign Currency Borrowings]] hereby requests a [Euro-Dollar
Borrowing] [Base Rate Borrowing] [Foreign Currency Borrowing] [Swing Loan
Borrowing] in the aggregate principal amount of [the Dollar Equivalent of]
$__________ to be made on ______________, ______, and for interest to accrue
thereon at the rate established by the Credit Agreement for [Euro-Dollar Loans]
[Base Rate Loans] [Foreign Currency Loans]. [The duration of the Interest Period
with respect thereto shall be [1 month] [2 months] [3 months] [6 months]].

                  The Borrower has caused this Notice of Borrowing to be
executed and delivered by its duly authorized officer this _________ day of
______________, ______.

                                      RUSSELL CORPORATION
                                      [AS AGENT FOR RUSSELL EUROPE LIMITED]
                                      [ADD IF APPROPRIATE]

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

<PAGE>

                                                                     EXHIBIT E-2

                      NOTICE OF CONTINUATION OR CONVERSION

                          ---------------------, ------

Wachovia Bank, N.A., as Administrative Agent
191 Peachtree Street, N.E.
Atlanta, Georgia  30303-1757
Attention: Syndications Group

                  Re:      Amended and Restated Credit Agreement (as amended and
                           modified from time to time, the "Credit Agreement")
                           dated as of January 31, 2002, by and among Russell
                           Corporation, Russell Europe Limited, the Banks from
                           time to time parties thereto, Wachovia Bank, N.A., as
                           Administrative Agent, Suntrust Bank (formerly
                           Suntrust Bank, Atlanta), as Syndication Agent and
                           First Union National Bank, as Documentation Agent.

Gentlemen:

                  Unless otherwise defined herein, capitalized terms used herein
shall have the meanings attributable thereto in the Credit Agreement.

                  This Notice of Continuation or Conversion is delivered to you
pursuant to Section 2.04 of the Credit Agreement.

                  With respect to the [Euro-Dollar Loans] [Foreign Currency
Loans denominated in [specify Foreign Currency]] in the aggregate amount of [the
Dollar Equivalent of] $___________ which has an Interest Period ending on
_____________, [the Borrower] [Russell Europe Limited, as the Borrower with
respect to Foreign Currency Borrowings]] hereby requests that such loan be
[converted to a] [Base Rate Loan] [Euro-Dollar Loan] [continued as a]
[Euro-Dollar Loan] [Foreign Currency Loan in the same Foreign Currency]1 in the
aggregate principal amount of [the Dollar Equivalent of] $__________ to be made
on such date, and for interest to accrue thereon at the rate established by the
Credit Agreement for [Base Rate Loans] [Euro-Dollar Loans] [Foreign Currency
Loans]. [The duration of the Interest Period with respect thereto shall be [1
month] [2 months] [3 months] [6 months]].

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

(1)      Note: Foreign Currency Loans may only be continued in the same Foreign
Currency, and may not be converted to any other type of Loan.

<PAGE>

                  The Borrower has caused this Notice of Continuation or
Conversion to be executed and delivered by its duly authorized officer this
______ day of ____________, _____.

                                  RUSSELL CORPORATION
                                  [as agent for Russell Europe Limited] [ADD IF
                                  APPROPRIATE]

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

<PAGE>

                                                                       EXHIBIT F

                             COMPLIANCE CERTIFICATE

                  Reference is made to the Amended and Restated Credit Agreement
dated as of January 31, 2002 (as modified and supplemented and in effect from
time to time, the "Credit Agreement") among Russell Corporation, Russell Europe
Limited, the Banks from time to time parties thereto, Wachovia Bank, N.A., as
Administrative Agent, Suntrust Bank (formerly Suntrust Bank, Atlanta), as
Syndication Agent and First Union National Bank, as Documentation Agent.
Capitalized terms used herein shall have the meanings ascribed thereto in the
Credit Agreement.

                  Pursuant to Section 5.01(c) of the Credit Agreement,
_____________________, the duly authorized [Chief Financial Officer/Chief
Accounting Officer] of the Borrower, hereby (i) certifies to the Administrative
Agent and the Banks that the information contained in the Compliance Check List
attached hereto is true, accurate and complete as of ____________________,
______, and that no Default is in existence on and as of the date hereof and
(ii) restates and reaffirms that the representations and warranties contained in
Article IV of the Credit Agreement are true on and as of the date hereof as
though restated on and as of this date.

                                        RUSSELL CORPORATION (SEAL)

                                        By:
                                            -----------------------------------
                                             Name and title of [Chief Financial
                                             Officer/Chief Accounting Officer]

<PAGE>

                              COMPLIANCE CHECK LIST
                               Russell Corporation

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

                             --------------, -------

                  1.       Consolidations, Mergers and Sales of Assets (Section
5.05)

                  (a)      The Borrower shall not, nor shall it permit any
Subsidiary to, enter into any merger, consolidation or amalgamation, or
liquidate, wind up or dissolve itself (or suffer any liquidation or
dissolution), or Dispose of all or substantially all of its property or
business, except that (i) any Subsidiary may be merged or consolidated with or
into the Borrower (provided that the Borrower shall be the continuing or
surviving corporation) or with or into any Subsidiary Guarantor (provided that
the Subsidiary Guarantor shall be the continuing or surviving corporation); (ii)
any Subsidiary may Dispose of any or all of its assets (x) to the Borrower or
any Subsidiary Guarantor (upon voluntary liquidation or otherwise) or (y)
pursuant to a Disposition permitted by paragraph (b) below; and (iii) any
Investment expressly permitted by Section 5.16 may be structured as a merger,
consolidation or amalgamation.

                  (b)      The Borrower shall not, nor shall it permit any
Subsidiary to, Dispose of any of its property, whether now owned or hereafter
acquired, or, in the case of any Subsidiary, issue or sell any shares of such
Subsidiary's Capital Stock to any Person, except (i) the Disposition of obsolete
or worn out property in the ordinary course of business; (ii) the sale of
inventory in the ordinary course of business; (iii) the purchase by Russell
Financial, and the sale by the Borrower and certain of its Subsidiaries, of
Receivables pursuant to the Intercompany Receivables Agreements; (iii)
Dispositions permitted by clause (ii) of paragraph (a) above; (iv) the sale or
issuance of any Subsidiary's Capital Stock to the Borrower or any Subsidiary
Guarantor; (v) Dispositions of Accounts and Related Assets (as those terms are
defined in the Receivables Purchase Agreement) with an aggregate fair market
value not to exceed $50,000,000 pursuant to the Receivables Purchase Agreement
(provided that such Dispositions described in this clause (v) shall only be
permitted between July 1, 2002 and October 31, 2002 and only at any time during
which the aggregate outstanding principal amount of all Syndicated Dollar Loans
and Swing Loans of all Banks and the Dollar Equivalent of the Foreign Currency
Loans of all Banks equals or exceeds $225,000,000 (with the proceeds thereof
having been used for the normal ongoing business and working capital needs of
the Borrower and its Subsidiaries)); (vi) the sale and leaseback of the
Borrower's distribution centers in Columbus, Georgia and Montgomery, Alabama for
sale prices of at least $10,000,000 and $14,000,000, respectively (provided that
such sale and leaseback transactions must close on or prior to May 31, 2002 (the
"Permitted Sale Leasebacks")); and (vii) the sale of assets of the Borrower and
its Subsidiaries listed on Schedule 5.05 hereof which have been categorized as
"assets held for sale" by the Borrower; and (viii) the Disposition of other
property having a fair market value not to exceed $5,000,000 in the aggregate
for any Fiscal Year.

(a)  Aggregate amount of Receivables Disposed:               $____________

Limitation: (a) may not exceed $50,000,000

<PAGE>

                              COMPLIANCE CHECK LIST
                               Russell Corporation

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

                             --------------, -------

<TABLE>
<S>                                                                                            <C>
(b)  Dates upon which Receivables have been Disposed:                                          $____________

Limitation: must occur between July 1, 2002 and October 31, 2002

(c) Aggregate outstanding principal amount of all Syndicated Dollar Loans and Swing Loans      $____________
of all Banks and the Dollar Equivalent of the Foreign Currency Loans of all Banks at the
time such Receivables were disposed:

Limitation: (c) must equal or exceed $225,000,000

(d)  Fair market value of other property disposed during this Fiscal Year:                     $____________

Limitation: (d) must not exceed $5,000,000
</TABLE>

                  2.       Investments (Section 5.16)

                  From and after the Restatement Effective Date, neither the
Borrower nor any of its Subsidiaries shall make Investments in any Person except
(i) loans or advances to officers, directors and employees (1) for relocation
expenses in connection with the Restructuring Program and (2) for other purposes
not exceeding $3,000,000 in the aggregate principal amount outstanding at any
time, in each case made in the ordinary course of business in accordance with
historical practices existing on the Restatement Effective Date; (ii) deposits
required by government agencies or public utilities (including pertaining to
taxes and other similar charges), (iii) Investments in direct obligations of the
United States Government or any agency thereof maturing within one year after
the date of Investment, (iv) Investments in certificates of deposit issued by a
commercial bank whose credit is satisfactory to the Administrative Agent and in
certificates of deposit issued by any banking subsidiary of Wachovia
Corporation, AmSouth Bancorporation, SunTrust Banks, Inc., Aliant National
Corporation, Comerica Bank, JP Morgan Chase Bank, First Union National Bank or
any Person who succeeds to all, or substantially all, of the assets or business
of any thereof, (v) Investments in commercial paper rated A1 or the equivalent
thereof by S&P or P1 or the equivalent thereof by Moody's and in either case
maturing within 270 days after the date of acquisition, (vi) Investments in
tender bonds the payment of the principal of and interest on which is fully
supported by a letter of credit issued by a United States bank whose long-term
certificates of deposit are rated at least AA or the equivalent thereof by S&P
and Aa or the equivalent thereof by Moody's, (vii) Investments in variable rate
demand bonds maturing or with optional puts within one year or less from the
date of acquisition thereof, which, at the time of acquisition by the Borrower
or Subsidiary, are rated not lower than A or A-1 by S&P and not lower than A2 or
P-1 by Moody's, (viii) intercompany loans by the Borrower or any Subsidiary to
the Borrower or any Subsidiary Guarantor, (ix) Investments in Frontier Yarns LLC
in an aggregate amount not to exceed $9,900,000 (provided, that any cash
Investments made in Frontier shall be limited to the proceeds of the asset
transfers

<PAGE>

                              COMPLIANCE CHECK LIST
                               Russell Corporation

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

                             --------------, -------

of the Borrower's Lafayette and Gwaltney facilities and the equipment related
thereto), (x) the transfer of certain Receivables pursuant to the Intercompany
Receivables Agreements and/or the Receivables Purchase Agreement to the extent
otherwise permitted by this Agreement; (xi) Permitted Acquisitions; (xii)
Guarantees otherwise permitted by Section 5.17; and (xiii) other Investments
(including joint venture and partnership investments, minority interests and
loans to strategic partners) which do not exceed an aggregate amount of
$5,000,000 in any Fiscal Year.

<TABLE>
<S>                                                                                           <C>
Aggregate principal amount outstanding of loans or advances to officers,                      $____________
directors and  employees (other than for relocation expenses in
connection with the Restructuring Program) in the ordinary course of business in
accordance with historical practices existing on the Closing Date

                  Limitation                                                                  $3,000,000

Other aggregate  Investments in the current Fiscal Year not permitted by clauses (i) through  $____________
(xi) above

                  Limitation                                                                  $5,000,000

</TABLE>
                  3.       Debt/EBITDA Ratio (Section 5.20)

                  The Borrower shall not, on any date during any Fiscal Quarter
set forth below, permit the Debt/EBITDA Ratio to be greater than the ratio set
forth below for such Fiscal Quarter:

<TABLE>
<CAPTION>
                           Fiscal Quarter                      Ratio
                           --------------                      -----
                           <S>                             <C>
                           FQ 4 2001                       3.25 to 1.00

                           FQ 1 2002                       3.65 to 1.00

                           FQ 2 2002                       3.75 to 1.00

                           FQ 3 2002                       3.65 to 1.00

                           FQ 4 2002                       2.65 to 1.00

                           FQ 1 2003                       3.00 to 1.00

                           FQ 2 2003                       3.00 to 1.00
</TABLE>

<PAGE>

                              COMPLIANCE CHECK LIST
                               Russell Corporation

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

                             --------------, -------

<TABLE>
                           <S>                             <C>
                           FQ 3 2003                       3.00 to 1.00

                           FQ 4 2003                       2.50 to 1.00

                           FQ 1 2004                       2.75 to 1.00

                           FQ 2 2004                       2.75 to 1.00

                           FQ 3 2004                       2.75 to 1.00

                           FQ 4 2004                       2.50 to 1.00

<CAPTION>

<S>                                                        <C>
(a)  Consolidated Total Debt--Schedule 2                   $______________

(b)  Consolidated EBITDA--Schedule 1                       $______________

(c)  Ratio of (a) to (b)                                   ____ to 1.00

(d)  Maximum ratio                                         ____ to 1.00 (see above)
</TABLE>

                  4.       Minimum Consolidated Net Worth (Section 5.21)

                  Consolidated Net Worth shall at no time be less than the sum
of (i) $415,000,000, (ii) 50% of Reported Net Income for each Fiscal Quarter
(beginning with the Fiscal Quarter ending March 31, 2002) for which Reported Net
Income is positive, calculated quarterly at the end of each such Fiscal Quarter,
and (iii) 100% of the cumulative net proceeds of Capital Stock received during
any period after the Restatement Effective Date, calculated quarterly at the end
of each Fiscal Quarter.

<TABLE>
<S>                                                                                      <C>
(a)      Consolidated Net Worth--Schedule 3                                              $____________

(b)      Cumulative Reported Net Income of the Borrower and its                          $____________
         Consolidated Subsidiaries

(c)      50% of (b)                                                                      $____________

(d)      Cumulative Net Proceeds of Capital Stock received after the
         Restatement Effective Date

(e)      Sum of $415,000,000, (c) and (d)                                                $____________
</TABLE>

<PAGE>

                             COMPLIANCE CHECK LIST
                               Russell Corporation

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

                             --------------, -------

(1)      Limitation:  (a) may not be less than (e)

                  5.       Debt Service Coverage Ratio (Section 5.22)

                  The Borrower shall not permit the Debt Service Coverage Ratio
for any period of four consecutive Fiscal Quarters ending with any Fiscal
Quarter set forth below to be less than the ratio set forth below opposite such
Fiscal Quarter:

<TABLE>
<CAPTION>
                           Fiscal Quarter                       Ratio
                           --------------                       -----
                           <S>                             <C>
                           FQ 4 2001                       1.60 to 1.00

                           FQ 1 2002                       1.60 to 1.00

                           FQ 2 2002                       1.60 to 1.00

                           FQ 3 2002                       1.90 to 1.00

                           FQ 4 2002                       1.65 to 1.00

                           FQ 1 2003                       1.70 to 1.00

                           FQ 2 2003                       1.75 to 1.00

                           FQ 3 2003                       1.75 to 1.00

                           FQ 4 2003                       1.75 to 1.00

                           FQ 1 2004                       1.75 to 1.00

                           FQ 2 2004                       1.75 to 1.00

                           FQ 3 2004                       1.75 to 1.00

                           FQ 4 2004                       1.75 to 1.00
</TABLE>

----------------
(1)      For the purposes of this section the calculation of Reported Net Income
excludes any Fiscal Quarter in which the Reported Net Income of the Borrower is
its Consolidated Subsidiaries is negative and 100% of the cumulative Net
Proceeds of Capital Stock received during any period after the Closing Date.

<PAGE>

                              COMPLIANCE CHECK LIST
                               Russell Corporation

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

                             --------------, -------
<TABLE>
<S>                                                                                      <C>
(a)      Consolidated EBITDA--see Schedule 1                                             $______________

(b)      Consolidated Interest Expense--see Schedule 4                                   $______________

(c)      Aggregate amount of payments on account of principal of Debt of the Borrower    $______________
         or any of its Subsidiaries scheduled to be made during the next four
         consecutive Fiscal Quarters

(d)      Sum of (b) and (c)                                                              $______________

(e)      Actual Ratio of (a) to (d)                                                       __ to 1.0

         Limitation (e) must be less than __ to 1.0 (see above)
</TABLE>

                       Capital Expenditures (Section 5.23)

                  Neither the Borrower nor any of its Consolidated Subsidiaries
shall make or commit to make any Capital Expenditure, except Capital
Expenditures of the Borrower and its Consolidated Subsidiaries in the ordinary
course of business during the 2002, 2003 and 2004 Fiscal Years not to exceed
$40,000,000 in the aggregate during any such Fiscal Year; provided, that (a) up
to $10,000,000 of such amount for any such Fiscal Year, if not so expended in
the Fiscal Year for which it is permitted, may be carried over for expenditure
in the next succeeding Fiscal Year and (b) Capital Expenditures made pursuant to
this Section during any Fiscal Year shall be deemed made, first, in respect of
amounts permitted for such Fiscal Year as provided above and, second, in respect
of amounts carried over from the prior Fiscal Year pursuant to clause (a) above.

<TABLE>
<S>                                                                                      <C>
(a)      Aggregate amount of Capital Expenditures during this Fiscal Year (must be FY    $______________
         2002, 2003 or 2004)

(b)      Aggregate amount of Capital Expenditures permitted to be carried over
         from $______________ the prior Fiscal Year (only available in FY 2003
         and FY 2004 with such amount not to exceed $10,000,000)                         $______________

(c)      Sum of (b) and $40,000,000                                                      $______________

Limitation: (a) may not exceed (c)                                                       __ to 1.0
</TABLE>

<PAGE>

                              COMPLIANCE CHECK LIST
                               Russell Corporation

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

                             --------------, -------

                                                                     Schedule 1

                              Consolidated EBITDA(3)

(a)      Consolidated Net Income for:

         ___ quarter ___                                    $

         ___ quarter ___                                    $

         ___ quarter ___                                    $

         ___ quarter ___                                    $

                  Total                                     $

(b)      Consolidated Interest Expense for:

         ___ quarter ___                                    $

         ___ quarter ___                                    $

         ___ quarter ___                                    $

         ___ quarter ___                                    $

                  Total                                     $

(c)      Taxes on income for:

         ___ quarter ___                                    $

         ___ quarter ___                                    $

         ___ quarter ___                                    $

         ___ quarter ___                                    $

(3)      With respect to any Consolidated Subsidiary acquired during the four
Fiscal Quarter period set forth below, such Consolidated Subsidiary shall be
included on a pro forma, historical basis as if it had been a Consolidated
Subsidiary during such entire four Fiscal Quarter period.

<PAGE>

                              COMPLIANCE CHECK LIST
                               Russell Corporation

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

                             --------------, -------
<TABLE>
                  <S>                                                                    <C>
                  Total                                                                  $

(d)      restructuring, relocation and other unusual charges incurred in connection      $
         with the Restructuring Program in Fiscal Years 1998 through 2001, not
         exceeding, on a pre-tax basis, (i) $61,078,000 in the third Fiscal
         Quarter of Fiscal Year 1998, (ii) $13,929,000 in the fourth Fiscal
         Quarter of Fiscal Year 1998, (iii) $26,900,800 in the first Fiscal
         Quarter of Fiscal Year 1999, (iv) $4,374,500 in the second Fiscal
         Quarter of Fiscal Year 1999 and (v) an aggregate of $102,026,000 in the
         period from and including the third Fiscal Quarter of Fiscal Year 1999
         through the end of Fiscal Year 2001; and in any event the aggregate of
         all such charges on an after-tax basis shall not exceed $125,000,000

(e)      Depreciation expense for:

         ___ quarter ___                                                                 $

         ___ quarter ___                                                                 $

         ___ quarter ___                                                                 $

         ___ quarter ___                                                                 $

                  Total                                                                  $

(f)      Amortization expense for:

         ___ quarter ___                                                                 $

         ___ quarter ___                                                                 $

         ___ quarter ___                                                                 $

         ___ quarter ___                                                                 $

                  Total                                                                  $

(g)      Other non-cash charges for:

         ___ quarter ___                                                                 $

</TABLE>

<PAGE>

                              COMPLIANCE CHECK LIST
                               Russell Corporation

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

                             --------------, -------

<TABLE>
         <S>                                                                             <C>
         ___ quarter ___                                                                 $

         ___ quarter ___                                                                 $

         ___ quarter ___                                                                 $

Total                                                                                    $

TOTAL CONSOLIDATED EBITDA (sum of (a) through (g))                                       $
</TABLE>

<PAGE>

                              COMPLIANCE CHECK LIST
                               Russell Corporation

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

                             --------------, -------

                             Consolidated Total Debt

<TABLE>
<S>                                                                                      <C>
(1)      obligations for borrowed money                                                  $___________

(2)      obligations of such Person evidenced by bonds, debentures, notes or other       $___________
similar instruments

(3)      obligations of such Person to pay the deferred purchase price of property or    $___________
services, except trade accounts payable arising in the ordinary course of business

(4)      obligations as lessee under capital leases                                      $___________

(5)      obligations of such Person to reimburse any bank or other Person in respect     $___________
of amounts payable under a banker's acceptance

(6)      Redeemable Preferred Stock of such Person (in the event such Person is a        $___________
corporation)

(7)      all obligations of such Person to reimburse any bank or other Person in         $___________
respect of amounts paid or to be paid under a letter of credit or similar instrument
(whether drawn or undrawn) to the extent it does not arise from commercial letters of
credit or similar instruments

(8)      all Debt of others secured by a Lien on any asset of such Person, whether or    $___________
not such Debt is assumed by such Person

(9)      all net obligations of such Person with respect to interest rate protection     $___________
agreements, foreign currency exchange agreements or other hedging arrangements (valued
as the termination value thereof computed in accordance with a method approved by the
International Swap Dealers Association and agreed to by such Person in the applicable
hedging agreement, if any)

(10)     To the extent not included in (1) through (9) above, all Debt of Elcatex        $___________
Guaranteed by the Borrower or any of its Consolidated Subsidiaries
</TABLE>

<PAGE>

                              COMPLIANCE CHECK LIST
                               Russell Corporation

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

                             --------------, -------

<TABLE>
<S>                                                                                      <C>
(11)     other Debts of the types described in (1) through (10) above of Persons other   $___________
than the Borrower or a Consolidated Subsidiary which are Guaranteed by the Borrowers
or any Consolidated Subsidiary(4)
</TABLE>

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

(4)      Include the principal balance outstanding under any synthetic lease,
tax retention operating lease, off-balance sheet loan or similar off-balance
financing product where such transaction is considered borrowed money
indebtedness for tax purposes but is classified as an operating lease in
accordance with GAAP.

<PAGE>

                              COMPLIANCE CHECK LIST
                               Russell Corporation

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

                             --------------, -------

                                                                  (5) Schedule 3

                             Consolidated Net Worth

<TABLE>
<S>                                                                                      <C>
(a)      Shareholders' equity of the Borrower and its Consolidated Subsidiaries, as      $____________
set forth or reflected on the most recent consolidated balance sheet of the Borrower
and its Consolidated Subsidiaries prepared in accordance with GAAP

(b)      Amount of Redeemable Preferred Stock of the Borrower or any of its              $____________
Consolidated Subsidiaries

(c)      CONSOLIDATED NET WORTH = (a) minus (b)                                          $____________
</TABLE>

-----------------------
(5)       Include such Debt of any partnership or unincorporated joint venture
in which such Person is a general partner or a joint venturer, other than
non-recourse Debt of such partnership or unincorporated joint venture.

<PAGE>

                              COMPLIANCE CHECK LIST
                               Russell Corporation

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

                             --------------, -------

                                                                      Schedule 4
                          Consolidated Interest Expense

Consolidated Interest Expense for:

<TABLE>
         <S>                                      <C>
         ___ quarter ___                          $____________

         ___ quarter ___                          $____________

         ___ quarter ___                          $____________

         ___ quarter ___                          $____________

Total                                             $____________
</TABLE>

<PAGE>

                                                                       EXHIBIT G

                                   [RESERVED]

<PAGE>

                                                                       EXHIBIT H

                                   [RESERVED]

<PAGE>

                                                                       EXHIBIT I

                                   [RESERVED]

<PAGE>

                                                                       EXHIBIT J

                                   [RESERVED]

<PAGE>

                                                                       EXHIBIT K

                                   [RESERVED]

<PAGE>

                                                                       EXHIBIT L

                                    GUARANTY

                  THIS GUARANTY (this "Guaranty") is made as of October 15,
1999, by RUSSELL CORPORATION, an Alabama corporation (the "Guarantor) in favor
of the Administrative Agent, for the ratable benefit of the Banks, under the
Credit Agreement referred to below;

                              W I T N E S S E T H :

                  WHEREAS, Russell Corporation (the Guarantor") and Russell
Europe Limited, as a Borrower only with respect to Foreign Currencies (the
Foreign Currency Borrower"), Wachovia Bank, N.A., as Administrative Agent (the
"Administrative Agent"), Suntrust Bank, Atlanta, as Syndication Agent, First
Union National Bank, as Documentation Agent and certain other Banks from time to
time party thereto have entered into a certain Credit Agreement dated as October
15, 1999 (as amended as of the date hereof and as it may be amended or modified
further from time to time, the "Credit Agreement"), providing, subject to the
terms and conditions thereof, for extensions of credit to be made by the Banks
to the Foreign Currency Borrower which will the benefit the Guarantor;

                  WHEREAS, it is required under Section 3.01 of the Credit
Agreement that the Guarantor execute and deliver this Guaranty whereby it shall
guarantee the payment when due of all principal, interest and other amounts that
shall be at any time payable by the Foreign Currency Borrower under the Credit
Agreement, the Foreign Currency Loan Notes and the other Loan Documents executed
by it; and

                  WHEREAS, in consideration of the ownership of the Foreign
Currency Borrower by the Guarantor, and in order to induce the Banks and the
Administrative Agent to enter into and maintain the credit facilities under the
Credit Agreement, the Guarantor is willing to guarantee the obligations of the
Foreign Currency Borrower under the Credit Agreement, the Notes and the other
Loan Documents executed by it;

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

                  SECTION 1. Definitions. Terms defined in the Credit Agreement
and not otherwise defined herein have, as used herein, the respective meanings
provided for therein.

                  SECTION 2. The Guaranty. The Guarantor hereby unconditionally
guarantees (i) the full and punctual payment (whether at stated maturity, upon
acceleration or otherwise) of the principal of and interest on each Foreign
Currency Loan Note issued by the Foreign Currency Borrower pursuant to the
Credit Agreement, and the full and punctual payment of all other amounts payable
by the Foreign Currency Borrower under the Credit Agreement, including, without
limitation, all Foreign Currency Loans made to the Foreign Currency Borrower and
interest thereon, and (ii) the timely performance of all other obligations of
the Foreign Currency Borrower under the Credit Agreement and the other Loan
Documents executed by it (all of the

<PAGE>

foregoing obligations being referred to collectively as the "Guaranteed
Obligations"). Upon failure by the Foreign Currency Borrower to pay punctually
any such amount or perform such obligations, the Guarantor agrees that it shall
forthwith on demand pay the amount not so paid at the place and in the manner
specified in the Credit Agreement, the relevant Note or the relevant Loan
Document, as the case may be, or perform such obligation in accordance with the
terms and conditions therefor specified in the Credit Agreement or the other
Loan Documents, and pay all costs of collection, including reasonable attorneys
fees; provided that, notwithstanding the provisions of O.C.G.A. ss.
13-1-11(a)(2) to the contrary, the Guarantor shall not be obligated to pay more
than the attorneys fees actually incurred in connection with such collection.

                  SECTION 3.  Guaranty  Unconditional.  The obligations of the
Guarantor hereunder shall be unconditional and absolute and, without limiting
the generality of the foregoing, shall not be released, discharged or otherwise
affected by:

                  (a)      any extension, renewal, settlement, compromise,
waiver or release in respect of any obligation of the Foreign Currency Borrower
under the Credit Agreement, any Note, or any other Loan Document, by operation
of law or otherwise or any obligation of any other guarantor of any of the
Guaranteed Obligations;

                  (b)      any modification or amendment of or supplement to the
Credit Agreement, any Note, or any other Loan Document;

                  (c)      any release, nonperfection or invalidity of any
direct or indirect security, if any, for any obligation of the Foreign Currency
Borrower under the Credit Agreement, any Note, any Loan Document, or any
obligations of any other guarantor of any of the Guaranteed Obligations;

                  (d)      any change in the partnership structure or ownership
of the Foreign Currency Borrower or corporate structure or ownership of any
other guarantor of any of the Guaranteed Obligations, or any insolvency,
bankruptcy, reorganization or other similar proceeding affecting the Foreign
Currency Borrower, or any other guarantor of the Guaranteed Obligations, or its
assets or any resulting release or discharge of any obligation of the Foreign
Currency Borrower, or any other guarantor of any of the Guaranteed Obligations;

                  (e)      the existence of any claim, setoff or other rights
which the Guarantor may have at any time against the Foreign Currency Borrower,
any other guarantor of any of the Guaranteed Obligations, the Administrative
Agent, any Bank or any other Person, whether in connection herewith or any
unrelated transactions, provided that nothing herein shall prevent the assertion
of any such claim by separate suit or compulsory counterclaim

                  (f)      any invalidity or unenforceability relating to or
against the Foreign Currency Borrower, or any other guarantor of any of the
Guaranteed Obligations, for any reason related to the Credit Agreement, any
other Loan Document, or any other Guarantee, or the lack of legal existence of
the Foreign Currency Borrower, or any provision of applicable law or regulation
purporting to prohibit or make illegal the payment by the Foreign Currency
Borrower, or any other guarantor of the Guaranteed Obligations, of the principal
of or interest on any Note or any other amount payable by the Foreign Currency
Borrower under the Credit Agreement, the

<PAGE>

Notes, or any other Loan Document, or the performance of any other obligation or
undertaking of the Foreign Currency Borrower under the Credit Agreement, any
other Loan Document, or any other Guarantee or otherwise making any of the
Guaranteed Obligations irrecoverable from the Foreign Currency Borrower for any
reason; or

                  (g)      any law, regulation, order, decree or directive
(whether or not having the force of law) or any interpretation thereof, now or
hereafter in effect in any jurisdiction, that purports to modify any of the
terms of or rights of any Bank with respect to any Guaranteed Obligation or
under the Credit Agreement or any other Loan Document or this Guaranty,
including without limitation any law, regulation, order, decree or directive or
interpretation thereof that purports to require or permit the satisfaction of
any Guaranteed Obligation other than strictly in accordance with the terms of
the Credit Agreement or any other Loan Document (such as by the tender of a
currency other than the relevant Foreign Currency) or that restricts the
procurement of the Foreign Currency by the Foreign Currency Borrower or the
Guarantor, or any agreement, whether or not signed by or on behalf of any Bank,
in connection with the restructuring or rescheduling of public or private
obligations in any Borrower's country, whether or not such agreement is stated
to cause or permit the discharge of the Guaranteed Obligations prior to the
final payment in full of the Guaranteed Obligations in the relevant Foreign
Currency in strict accordance with the Credit Agreement or other Loan Documents

                  (h)      any other act or omission to act or delay of any kind
by the Foreign Currency Borrower, any other guarantor of the Guaranteed
Obligations, the Administrative Agent, any Bank or any other Person or any other
circumstance whatsoever which might, but for the provisions of this paragraph,
constitute a legal or equitable discharge of any Guarantor's obligations
hereunder.

                  SECTION 4. DISCHARGE ONLY UPON PAYMENT IN FULL; REINSTATEMENT
IN CERTAIN CIRCUMSTANCES. The Guarantor's obligations hereunder shall remain in
full force and effect until all Guaranteed Obligations shall have been paid in
full and the Commitments under the Credit Agreement shall have terminated or
expired. If at any time any payment of the principal of or interest on any Note
or any other amount payable by the Foreign Currency Borrower under the Credit
Agreement or any other Loan Document is rescinded or must be otherwise restored
or returned upon the insolvency, bankruptcy or reorganization of the Foreign
Currency Borrower or otherwise, the Guarantor's obligations hereunder with
respect to such payment shall be reinstated as though such payment had been due
but not made at such time.

                  SECTION 5. WAIVER OF NOTICE BY THE GUARANTOR. The Guarantor
irrevocably waives acceptance hereof, presentment, demand, protest and, to the
fullest extent permitted by law, any notice not provided for herein, as well as
any requirement that at any time any action be taken by any Person against the
Foreign Currency Borrower, any other guarantor of the Guaranteed Obligations, or
any other Person.

                  SECTION 6. STAY OF ACCELERATION. If acceleration of the time
for payment of any amount payable by the Foreign Currency Borrower under the
Credit Agreement, any Note or any other Loan Document is stayed upon the
insolvency, bankruptcy or reorganization of the Foreign Currency Borrower, all
such amounts otherwise subject to acceleration under the terms of the Credit
Agreement, any Note or any other Loan Document shall nonetheless be payable by

<PAGE>

the Guarantor hereunder forthwith on demand by the Administrative Agent made at
the request of the Required Banks.

                  SECTION 7. NOTICES. All notices, requests and other
communications to any party hereunder shall be given or made by telecopier or
other writing and telecopied or mailed or delivered to the intended recipient at
its address or telecopier number set forth on the signature pages hereof or such
other address or telecopy number as such party may hereafter specify for such
purpose by notice to the Administrative Agent in accordance with the provisions
of Section 9.01 of the Credit Agreement. Except as otherwise provided in this
Guaranty, all such communications shall be deemed to have been duly given when
transmitted by telecopier, or personally delivered or, in the case of a mailed
notice, 3 Domestic Business Days after such communication is deposited in the
mails with first class postage prepaid, in each case given or addressed as
aforesaid.

                  SECTION 8. NO WAIVERS. No failure or delay by the
Administrative Agent or any Banks in exercising any right, power or privilege
hereunder shall operate as a waiver thereof nor shall any single or partial
exercise thereof preclude any other or further exercise thereof or the exercise
of any other right, power or privilege. The rights and remedies provided in this
Guaranty, the Credit Agreement, the Notes, and the other Loan Documents shall be
cumulative and not exclusive of any rights or remedies provided by law.

                  SECTION 9. SUCCESSORS AND ASSIGNS. This Guaranty is for the
benefit of the Administrative Agent and the Banks and their respective
successors and assigns and in the event of an assignment of any amounts payable
under the Credit Agreement, the Notes, or the other Loan Documents, the rights
hereunder, to the extent applicable to the indebtedness so assigned, may be
transferred with such indebtedness. This Guaranty may not be assigned by the
Guarantor without the prior written consent of the Administrative Agent and the
Required Banks, and shall be binding upon the Guarantor and its successors and
permitted assigns.

                  SECTION 10.  CHANGES IN WRITING.  Neither this Guaranty nor
any provision hereof may be changed, waived, discharged or terminated orally,
but only in writing signed by the Guarantor and the Administrative Agent, with
the consent of the Required Banks.

                  SECTION 11. GOVERNING LAW; SUBMISSION TO JURISDICTION; WAIVER
OF JURY TRIAL. THIS GUARANTY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAW OF THE STATE OF GEORGIA. EACH OF THE GUARANTOR AND THE
ADMINISTRATIVE AGENT HEREBY SUBMITS TO THE NONEXCLUSIVE JURISDICTION OF THE
UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF GEORGIA AND OF ANY
GEORGIA STATE COURT SITTING IN ATLANTA, GEORGIA AND FOR PURPOSES OF ALL LEGAL
PROCEEDINGS ARISING OUT OF OR RELATING TO THIS GUARANTY OR THE TRANSACTIONS
CONTEMPLATED HEREBY. THE GUARANTOR IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY LAW, ANY OBJECTION WHICH ANY OF THEM MAY NOW OR HEREAFTER HAVE TO
THE LAYING OF THE VENUE OF ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT AND ANY
CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN
INCONVENIENT FORUM. EACH OF THE GUARANTOR AND THE ADMINISTRATIVE

<PAGE>

AGENT HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY AND
ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO
THIS GUARANTY OR THE TRANSACTIONS CONTEMPLATED HEREBY.

                  SECTION 12. TAXES, ETC. All payments required to be made by
the Guarantor hereunder shall be made without setoff or counterclaim and free
and clear of and without deduction or withholding for or on account of, any
present or future taxes, levies, imposts, duties or other charges of whatsoever
nature imposed by any government or any political or taxing authority pursuant
and subject to the provisions of Section 2.13(c) of the Credit Agreement, the
terms of which are incorporated herein by reference as to the Guarantor as fully
as if set forth herein, and for such purposes, the rights and obligations of the
Foreign Currency Borrower under such Section shall devolve to the Guarantor as
to payments required to be made by the Guarantor hereunder.

                   SECTION 13. FAILURE TO PAY IN FOREIGN CURRENCY. If the
Guarantor is unable for any reason to effect payment in a relevant Foreign
Currency as required by this Guaranty or if the Guarantor shall default in the
Foreign Currency, each Bank may, through the Administrative Agent, require such
payment to be made in Dollars in the Dollar Equivalent amount of such payment.
In any case in which the Guarantor shall make such payment in Dollars, the
Guarantor agrees to hold the Banks harmless from any loss incurred by the Banks
arising from any change in the value of Dollars in relation to such Foreign
Currency between the date such payment became due and the date of payment
thereof.

                  SECTION 14. JUDGMENT CURRENCY. If for the purpose of obtaining
judgment in any court or enforcing any such judgment it is necessary to convert
any amount due in any Foreign Currency into any other currency, the rate of
exchange used shall be the Administrative Agent's spot rate of exchange for the
purchase of the Foreign Currency with such other currency at the close of
business on the Foreign Currency Business Day preceding the date on which
judgment is given or any order for payment is made. The obligation of the
Guarantor in respect of any amount due from it hereunder shall, notwithstanding
any judgment or order for a liquidated sum or sums in respect of amounts due
hereunder or under any judgment or order in any other currency or otherwise be
discharged only to the extent that on the Foreign Currency Business Day
following receipt by the Administrative Agent of any payment in a currency other
than the relevant Foreign Currency the Agent is able (in accordance with normal
banking procedures) to purchase the relevant Foreign Currency with such other
currency. If the amount of the relevant Foreign Currency that the Administrative
Agent is able to purchase with such other currency is less than the amount due
in the relevant Foreign Currency, notwithstanding any judgment or order, the
Guarantor shall indemnify the Banks for the shortfall.

<PAGE>

                  IN WITNESS WHEREOF, the Guarantor has caused this Guaranty to
be duly executed, under seal, by its authorized officer as of the date first
above written.

                                      RUSSELL CORPORATION

                                      By:
                                           ------------------------------------
                                            Eric N. Hoyle
                                            Executive Vice President and Chief
                                              Financial Officer

<PAGE>

                                                                       EXHIBIT M

                        FORM OF CONSENT AND CONFIRMATION

                  Reference is made to (i) the Credit Agreement, dated as of
October 15, 1999 (together with all amendments and modifications prior to the
date hereto, the "Original Credit Agreement"), among Russell Corporation,
Russell Europe Limited, the banks party thereto, Wachovia Bank, N.A., as
Administrative Agent, Suntrust Bank, Atlanta, as Syndication Agent and First
Union National Bank, as Documentation Agent and (ii) the Amended and Restated
Credit Agreement dated as of January 31, 2002 (together with all amendments and
modifications thereto, the "Credit Agreement") among Russell Corporation, an
Alabama corporation (the "Borrower"), Russell Europe Limited, the Banks (as
defined in the Credit Agreement), Wachovia Bank, N.A., as Administrative Agent
(the "Administrative Agent"), Suntrust Bank (formerly Suntrust Bank, Atlanta),
as Syndication Agent and First Union National Bank, as Documentation Agent).
Terms defined in the Credit Agreement are used herein with the same meaning.

                  Each of the undersigned hereby consents to the amendment and
restatement of the Original Credit Agreement pursuant to the Credit Agreement
and hereby confirms, reaffirms and restates that the Loan Documents to which it
is a party (and its obligations thereunder) are and shall remain in full force
and effect after giving effect to the amendment and restatement of the Original
Credit Agreement pursuant to the Credit Agreement.

                  Date:  January 31, 2002

                                      CROSS CREEK APPAREL, LLC

                                      By:  CROSS CREEK HOLDINGS, INC.,
                                              its sole member and manager

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

                                      CROSS CREEK HOLDINGS, INC.

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

<PAGE>

                                      DESOTO MILLS, INC.

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

                                      RUSSELL FINANCIAL SERVICES, INC.

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

                                      RUSSELL ASSET MANAGEMENT, INC.

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

                                      RINTEL PROPERTIES, INC

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

<PAGE>

                                                                   SCHEDULE 4.08
                                        to Amended and Restated Credit Agreement

                                  SUBSIDIARIES

<TABLE>
<CAPTION>
                     SUBSIDIARIES                                    JURISDICTION OF FORMATION
                     ------------                                    -------------------------
<S>                                                     <C>
Domestic:
Alexander City Flying Service, Inc.                     Alabama
------------------------------------------------------- -----------------------------------------------------
Cross Creek Apparel, LLC                                North Carolina
------------------------------------------------------- -----------------------------------------------------
Cross Creek Holdings, Inc.                              Delaware
------------------------------------------------------- -----------------------------------------------------
DeSoto Mills, Inc.                                      Alabama
------------------------------------------------------- -----------------------------------------------------
Jerzees Apparel, LLC                                    Georgia
------------------------------------------------------- -----------------------------------------------------
Mossy Oak Apparel Company                               Delaware
------------------------------------------------------- -----------------------------------------------------
RINTEL Properties, Inc.                                 Delaware
------------------------------------------------------- -----------------------------------------------------
Russell Apparel, LLC                                    Alabama
------------------------------------------------------- -----------------------------------------------------
Russell Asset Management, Inc.                          Delaware
------------------------------------------------------- -----------------------------------------------------
Russell Athletic, Inc.                                  Georgia
------------------------------------------------------- -----------------------------------------------------
Russell Athletic West, Inc.                             Nevada
------------------------------------------------------- -----------------------------------------------------
Russell Financial Services, Inc.                        Delaware
------------------------------------------------------- -----------------------------------------------------
Russell Servicing Company, Inc.                         Alabama
------------------------------------------------------- -----------------------------------------------------
Russell Corporation                                     Delaware
------------------------------------------------------- -----------------------------------------------------
Russell Yarn LLC                                        Alabama
------------------------------------------------------- -----------------------------------------------------

Foreign:
Athletic de Camargo S.A. de C.V.                        Mexico
------------------------------------------------------- -----------------------------------------------------
Citygate Textiles Limited                               United Kingdom
------------------------------------------------------- -----------------------------------------------------
Cross Creek de Honduras, S.A. de C.V.                   Honduras
------------------------------------------------------- -----------------------------------------------------
Cross Creek de Jimenez, S.A. de C.V.                    Mexico
------------------------------------------------------- -----------------------------------------------------
Eagle R Holdings Limited                                United Kingdom
------------------------------------------------------- -----------------------------------------------------
Jerzees Campeche, S.A. de C.V.                          Mexico
------------------------------------------------------- -----------------------------------------------------
Jerzees Chloma, S.A.                                    Honduras
------------------------------------------------------- -----------------------------------------------------
Jerzees de Buena Vista, S.A.                            Honduras
------------------------------------------------------- -----------------------------------------------------
Jerzees de Honduras, S.A. de C.V.                       Honduras
------------------------------------------------------- -----------------------------------------------------
Jerzees Yucatan, S.A. de C.V.                           Mexico
------------------------------------------------------- -----------------------------------------------------
RUServicios, S.A                                        Honduras
------------------------------------------------------- -----------------------------------------------------
Russell Co-Op LLC                                       Guam
------------------------------------------------------- -----------------------------------------------------
Russell Corp. Australia Pty. Ltd.                       Australia
------------------------------------------------------- -----------------------------------------------------
Russell Corp. Bangladesh Limited                        Bangladesh
------------------------------------------------------- -----------------------------------------------------
Russell Corp. Canada Ltd.                               Canada
------------------------------------------------------- -----------------------------------------------------
Russell Corp. Far East Limited                          Hong Kong
------------------------------------------------------- -----------------------------------------------------
Russell CZ s.r.o.                                       Czech Republic
------------------------------------------------------- -----------------------------------------------------
Russell do Brasil Ltda                                  Brazil
------------------------------------------------------- -----------------------------------------------------
Russell Europe Limited                                  United Kingdom
------------------------------------------------------- -----------------------------------------------------
Russell Foreign Sales, Ltd.                             Barbados
------------------------------------------------------- -----------------------------------------------------
Russell France, S.A.R.L.                                France
------------------------------------------------------- -----------------------------------------------------
Russell Germany, GmbH                                   Germany
------------------------------------------------------- -----------------------------------------------------
Russell Holdings Europe B.V.                            Netherlands
------------------------------------------------------- -----------------------------------------------------
Russell Italy S.r.L.                                    Italy
------------------------------------------------------- -----------------------------------------------------
Russell Japan KK                                        Japan
------------------------------------------------------- -----------------------------------------------------
Russell Mexico, S.A. de C.V.                            Mexico
------------------------------------------------------- -----------------------------------------------------
Russell Spain, S.L.                                     Spain
------------------------------------------------------- -----------------------------------------------------
Servicios Russell, S.A. de C.V.                         Mexico
</TABLE>

                                       3
<PAGE>

                                                                   SCHEDULE 5.05
                                        to Amended and Restated Credit Agreement

                              ASSETS HELD FOR SALE

<TABLE>
<CAPTION>
                       LOCATION/DESCRIPTION                               ACREAGE/SQ. FOOTAGE
-----------------------------------------------------------------------------------------------------
<S>                                                                       <C>
MARIANNA DISTRIBUTION CENTER                                              259,271 sq. ft./21.5 Acres
MARIANNA, FL
MARIANNA, FL

FLOYD, VA FACILITY                                                        50,904 sq. ft./11.51 Acres

ASHLAND, AL FACILITY                                                        29,000 sq. ft./4.5 Acres

COOSA T&E FACILITY                                                           50,350 sq. ft./17 Acres
ALEXANDER CITY, AL

LAFAYETTE, AL FACILITY                                                      81,750 sq. ft./9.9 Acres

SYLACAUGA, AL FACILITY                                                    137,485 sq. ft./12.5 Acres

COOSA #2 PLANT                                                              157,697 sq. ft./20 Acres
ALEXANDER CITY, AL

COOSA #1 PLANT                                                             126,574 sq. ft./ 23 Acres
ALEXANDER CITY, AL

PERSONNEL BUILDING                                                            21,930 sq. ft./5 Acres
ALEXANDER CITY, AL

R&D BUILDING                                                                  42,464 sq. ft./5 Acres
ALEXANDER CITY, AL

MT. AIRY, NC                                                              152,268 sq. ft./14.8 Acres
KNITTING PLANT

SURPLUS LAND                                                                                93 Acres
CARTHAGE, NC

MT. AIRY, NC                                                             214,000 sq. ft./24.50 Acres
DISTRIBUTION CENTER

MT. AIRY, NC                                                                            74,748 sq ft
FRANKLIN STREET

FT PIERCE MALL                                                                         151,690 sq ft
FT. PIERCE, FL

FT WALTON MALL                                                                          44,125 sq ft
FT. WALTON, FL
</TABLE>

                                       1
<PAGE>

<TABLE>
<S>                                                                                     <C>
ALEXANDER CITY, AL                                                                      14,060 sq ft
DOWNTOWN OFFICES

COMMANDER HOUSE
ALEXANDER CITY, AL

5 ACRE TRACT - ACROSS FROM RETAIL STORE
ALEXANDER CITY, AL

5.8 ACRE TRACT ON US280
ALEXANDER CITY, AL

10 ACRE TRACT BETWEEN AIRPORT RD. & US280
ALEXANDER CITY, AL

20 ACRE TRACT ON ELKAHATCHEE STREET
ALEXANDER CITY, AL

64 ACRE TRACT ACROSS FROM CENTRAL ALABAMA
COMMUNITY COLLEGE
ALEXANDER CITY, AL

12 ACRE TRACT AT INTERSECTION OF US280 & AL63
ALEXANDER CITY, AL

1.55 ACRE TRACT BETWEEN TECH CENTER & RADNEY SCHOOL
ALEXANDER CITY, AL

17.5 ACRE TRACT BETWEEN RADNEY SCHOOL & SPORTSPLEX
ALEXANDER CITY, AL

CITATION COMMERCIAL JET -1990 MODEL

1,700 ACRE RUSSELL POND TRACT
ALEXANDER CITY, AL
</TABLE>

                                       2

<PAGE>

                                                                   SCHEDULE 5.17
                                        to Amended and Restated Credit Agreement

                            PERMITTED LIENS AND DEBTS

         1.       UCC Financing Statements and Tax Liens

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------

      Debtor          Secured Party       Jurisdiction       File Number         File Date             Collateral
--------------------------------------------------------------------------------------------------------------------------
<S>                 <C>                 <C>                  <C>                 <C>              <C>
   Cross Creek         Pitney Bowes      North Carolina       001490763           8/11/97         Specified Equipment
  Apparel, Inc.     Credit Corporation    Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
   Cross Creek          Associates       North Carolina      19980038254          6/23/98         Specified Equipment
  Apparel, Inc.       Leasing, Inc.       Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
   Cross Creek       Telimagine, Inc.    North Carolina      20000008199          1/24/00         Specified Equipment
  Apparel, Inc.                           Secretary of
                    Assignee: Conseco        State
                      Finance Vendor
                         Services
                       Corporation

                    Assigned to Wells
                     Fargo Financial
                      Leasing, Inc.
--------------------------------------------------------------------------------------------------------------------------
   Cross Creek         Pitney Bowes      North Carolina      20000035920          4/7/00          Specified Equipment
  Apparel, Inc.     Credit Corporation    Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
   Cross Creek       Western Carolina    North Carolina      20000123088         12/20/00       Specified equipment and
  Apparel, Inc.       Forklift, Inc.      Secretary of                                         all attachments and parts
                        Assignee:            State
                         The CIT
                     Group/Equipment
                     Financing, Inc.
--------------------------------------------------------------------------------------------------------------------------
   Cross Creek      OMNOVA Solutions,    North Carolina      200105042981         7/26/01      Specified consigned goods
 Apparel, LLC as    Inc. as successor     Secretary of
   successor in       in interest to         State                            Amended 9/5/01
interest to Cross        GenCorp
  Creek Apparel,       Performance
       Inc.             Chemicals
--------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------

      Debtor          Secured Party       Jurisdiction       File Number         File Date             Collateral
--------------------------------------------------------------------------------------------------------------------------
<S>                 <C>                 <C>                  <C>                 <C>              <C>
--------------------------------------------------------------------------------------------------------------------------
   Cross Creek      Russell Financial    North Carolina      20010508519L         8/7/01         Receivables, customer
   Apparel, LLC       Services, Inc.      Secretary of                                             agreements, goods,
                                             State                                             security for receivables,
                                                                                                 books and records, and
                                                                                                        proceeds
--------------------------------------------------------------------------------------------------------------------------
   Cross Creek        Wachovia Bank,     North Carolina      20010508526H         8/7/01           Accounts, Payment
   Apparel, LLC       N.A., as Agent      Secretary of                                          Intangibles, Supporting
                                             State                                             Obligations, rights under
                                                                                                Receivables Purchase and
                                                                                                Sale Agreement, Deposit
                                                                                                 Accounts, money, books
                                                                                               and records, and proceeds
--------------------------------------------------------------------------------------------------------------------------
   Cross Creek          Associates       Surry County,        98-001171           6/24/98         Specified Equipment
  Apparel, Inc.       Leasing, Inc.      North Carolina
--------------------------------------------------------------------------------------------------------------------------
   Cross Creek       Vanguard Supreme    Surry County,        00-000893           4/12/00         Specified Equipment
  Apparel, Inc.                          North Carolina
--------------------------------------------------------------------------------------------------------------------------
   Cross Creek       Western Carolina    Surry County,        00-002495          12/20/00              Specified
  Apparel, Inc.       Forklift, Inc.     North Carolina                                                 Equipment
                      Assignee: The
                       CIT Group /
                        Equipment
                     Financing, Inc.
--------------------------------------------------------------------------------------------------------------------------
   Cross Creek      Russell Financial       Alabama         B2001-30931FS         8/6/01         Receivables, customer
   Apparel, LLC       Services, Inc.      Secretary of                                             agreements, goods,
                                             State                                             security for receivables,
                                                                                                 books and records, and
                                                                                                        proceeds
--------------------------------------------------------------------------------------------------------------------------
   Cross Creek        Wachovia Bank,        Alabama         B2001-30936FS         8/6/01           Accounts, Payment
   Apparel, LLC       N.A., as Agent      Secretary of                                          Intangibles, Supporting
                                             State                                             Obligations, rights under
                                                                                                Receivables Purchase and
                                                                                                Sale Agreement, Deposit
                                                                                                 Accounts, money, books
                                                                                               and records, and proceeds
--------------------------------------------------------------------------------------------------------------------------
   Cross Creek      Russell Financial     Cobb County,       033200109712         8/6/01         Receivables, customer
   Apparel, LLC       Services, Inc.        Georgia                                                agreements, goods,
                                                                                               security for receivables,
                                                                                                 books and records, and
                                                                                                        proceeds
--------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       2
<PAGE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------

      Debtor          Secured Party       Jurisdiction       File Number         File Date             Collateral
--------------------------------------------------------------------------------------------------------------------------
<S>                 <C>                 <C>                  <C>                 <C>              <C>
   Cross Creek        Wachovia Bank,      Cobb County,       033200109717         8/6/01           Accounts, Payment
   Apparel, LLC       N.A., as Agent        Georgia                                             Intangibles, Supporting
                                                                                               Obligations, rights under
                                                                                                Receivables Purchase and
                                                                                                Sale Agreement, Deposit
                                                                                                 Accounts, money, books
                                                                                               and records, and proceeds
--------------------------------------------------------------------------------------------------------------------------
   Cross Creek        Wachovia Bank,      Cobb County,       033200109718         8/6/01           Accounts, Payment
  Holdings, Inc.      N.A., as Agent        Georgia                                             Intangibles, Supporting
                                                                                                  Obligations, Deposit
                                                                                                 Accounts, money, books
                                                                                               and records, and proceeds
--------------------------------------------------------------------------------------------------------------------------
   Cross Creek        Wachovia Bank,        Delaware         20011046510          8/28/01          Accounts, Payment
  Holdings, Inc.      N.A., as Agent      Secretary of                                          Intangibles, Supporting
                           State Obligations, Deposit
                                                                                                 Accounts, money, books
                                                                                               and records, and proceeds
--------------------------------------------------------------------------------------------------------------------------
DeSoto Mills, Inc.  Russell Financial       Alabama         B2001-30930FS         8/6/01         Receivables, customer
                      Services, Inc.      Secretary of                                             agreements, goods,
                                             State                                             security for receivables,
                                                                                                 books and records, and
                                                                                                        proceeds
--------------------------------------------------------------------------------------------------------------------------
DeSoto Mills, Inc.    Wachovia Bank,        Alabama         B2001-30935FS         8/6/01           Accounts, General
                      N.A., as Agent      Secretary of                                         Intangibles, rights under
                                             State                                              Receivables Purchase and
                                                                                                Sale Agreement, Deposit
                                                                                                 Accounts, money, books
                                                                                               and records, and proceeds
--------------------------------------------------------------------------------------------------------------------------
DeSoto Mills, Inc.  Russell Financial     Cobb County,       033200109713         8/6/01         Receivables, customer
                      Services, Inc.        Georgia                                                agreements, goods,
                                                                                               security for receivables,
                                                                                                 books and records, and
                                                                                                        proceeds
--------------------------------------------------------------------------------------------------------------------------
DeSoto Mills, Inc.    Wachovia Bank,      Cobb County,       033200109716         8/6/01           Accounts, General
                      N.A., as Agent        Georgia                                            Intangibles, rights under
                                                                                                Receivables Purchase and
                                                                                                Sale Agreement, Deposit
                                                                                                 Accounts, money, books
                                                                                               and records, and proceeds
--------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       3
<PAGE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------

      Debtor          Secured Party       Jurisdiction       File Number         File Date             Collateral
--------------------------------------------------------------------------------------------------------------------------
<S>                 <C>                 <C>                  <C>                 <C>              <C>
Russell Financial     Wachovia Bank,        Alabama         B2001-30933FS         8/6/01           Accounts, General
  Services, Inc.      N.A., as Agent      Secretary of                                          Intangibles, Supporting
                                             State                                             Obligations, rights under
                                                                                                Receivables Purchase and
                                                                                                Sale Agreements, Deposit
                                                                                                 Accounts, money, books
                                                                                               and records, and proceeds
--------------------------------------------------------------------------------------------------------------------------
Russell Financial     Wachovia Bank,      Cobb County,       033200109715         8/6/01           Accounts, General
  Services, Inc.      N.A., as Agent        Georgia                                             Intangibles, Supporting
                                                                                               Obligations, rights under
                                                                                                Receivables Purchase and
                                                                                                Sale Agreements, Deposit
                                                                                                 Accounts, money, books
                                                                                               and records, and proceeds
--------------------------------------------------------------------------------------------------------------------------
Russell Financial     Wachovia Bank,       Tennessee          301-089644          8/6/01           Accounts, General
  Services, Inc.      N.A., as Agent      Secretary of                                          Intangibles, Supporting
                                             State                                             Obligations, rights under
                                                                                                Receivables Purchase and
                                                                                                Sale Agreements, Deposit
                                                                                                 Accounts, money, books
                                                                                               and records, and proceeds
--------------------------------------------------------------------------------------------------------------------------
     Russell         Thompson Tractor     Mississippi          01450813           7/17/00         Specified Equipment
  Corporation -         Co., Inc.         Secretary of
Jerzees Mossy Oak                            State
   Apparel Co.
--------------------------------------------------------------------------------------------------------------------------
     Russell          Fleet Leasing       Mississippi          01473623          10/23/00           Leased Equipment
   Corporation         Corporation        Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell         Thompson Tractor     Mississippi,          00-775            7/5/00          Specified Equipment
  Corporation -         Co., Inc.         Clay County
Jerzees Mossy Oak
   Apparel Co.
--------------------------------------------------------------------------------------------------------------------------
     Russell          Fleet Leasing       Mississippi,         00-1289           10/23/00           Leased Equipment
   Corporation         Corporation        Clay County
--------------------------------------------------------------------------------------------------------------------------
  Russell Corp.        Pitney Bowes         Alabama          B96-37418FS          9/9/96            Leased Equipment
                    Credit Corporation    Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell         Thompson Tractor       Alabama          B96-47316FS         11/12/96         Specified Equipment
 Corporation - DC       Co., Inc.         Secretary of
      Mont.                                  State

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

                                       4
<PAGE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------

      Debtor          Secured Party       Jurisdiction       File Number         File Date             Collateral
--------------------------------------------------------------------------------------------------------------------------
<S>                 <C>                 <C>                  <C>                 <C>              <C>

     Russell         Thompson Tractor       Alabama          B96-50308FS          12/2/96         Specified Equipment
 Corporation - DC       Co., Inc.         Secretary of
      Mont.                                  State
--------------------------------------------------------------------------------------------------------------------------
     Russell          SunTrust Bank,        Alabama          B97-24882FS          6/11/97        Fixtures and Equipment
 Corporation and         Atlanta          Secretary of                                           relating to industrial
    Industrial                               State                                                    revenue bond
Development Board
  of the City of
 Ashland, Alabama
--------------------------------------------------------------------------------------------------------------------------
     Russell           Caterpillar          Alabama          B99-09151FS          3/3/99            Leased Equipment
   Corporation          Financial         Secretary of
                         Services            State
                       Corporation
--------------------------------------------------------------------------------------------------------------------------
     Russell          First Alabama         Alabama          B99-12512FS          3/23/99         Fixtures, Rights and
   Corporation      Bank (now Regions     Secretary of                                         Revenues relating to bond
                          Bank)              State
--------------------------------------------------------------------------------------------------------------------------
     Russell           Caterpillar          Alabama         B1999-25870FS         6/17/99           Leased Equipment
   Corporation          Financial         Secretary of
                         Services            State
                       Corporation
--------------------------------------------------------------------------------------------------------------------------
     Russell         Tubular Textile        Alabama         B1999-32512FS         8/4/99          Specified Equipment
   Corporation             LLC            Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell         Tubular Textile        Alabama         B1999-32513FS         8/4/99          Specified Equipment
   Corporation             LLC            Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell         EMC Corporation        Alabama         B1999-41255FS         10/4/99         Specified Equipment
   Corporation        Assignee: MLC       Secretary of
                       Group, Inc.           State
                       Assigned to
                     Wachovia Leasing
                       Corporation
--------------------------------------------------------------------------------------------------------------------------
     Russell            IBM Credit          Alabama         B2000-00677FS         1/5/00            Leased Equipment
   Corporation         Corporation        Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell          Fleet Leasing         Alabama         B2000-03091FS         1/20/00           Leased Equipment
   Corporation         Corporation        Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       5
<PAGE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------

      Debtor          Secured Party       Jurisdiction       File Number         File Date             Collateral
--------------------------------------------------------------------------------------------------------------------------
<S>                 <C>                 <C>                  <C>                 <C>              <C>
     Russell         Schlafhorst Inc.       Alabama         B2000-09605FS         3/7/00          Specified Equipment
   Corporation                            Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell           Pitney Bowes         Alabama         B2000-09862FS         3/8/00            Leased Equipment
   Corporation      Credit Corporation    Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell            IBM Credit          Alabama         B2000-13880FS         4/6/00            Leased Equipment
   Corporation         Corporation        Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell          Computer Sales        Alabama         B2000-14937FS         4/13/00           Leased Equipment
   Corporation        International,      Secretary of
                           Inc.              State
--------------------------------------------------------------------------------------------------------------------------
     Russell          Computer Sales        Alabama         B2000-18412FS         5/8/00            Leased Equipment
   Corporation        International,      Secretary of
                           Inc.              State
--------------------------------------------------------------------------------------------------------------------------
     Russell          Computer Sales        Alabama         B2000-26726FS         6/30/00           Leased Equipment
   Corporation        International,      Secretary of
                           Inc.              State
--------------------------------------------------------------------------------------------------------------------------
     Russell          Computer Sales        Alabama         B2000-28545FS         7/17/00           Leased Equipment
   Corporation        International,      Secretary of
                           Inc.              State
--------------------------------------------------------------------------------------------------------------------------
     Russell         Tubular Textile        Alabama         B2000-33671FS         8/21/00         Specified Equipment
   Corporation             LLC            Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell         Tubular Textile        Alabama         B2000-33672FS         8/21/00         Specified Equipment
   Corporation             LLC            Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell         Tubular Textile        Alabama         B2000-33673FS         8/21/00         Specified Equipment
   Corporation             LLC            Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell         Tubular Textile        Alabama         B2000-33674FS         8/21/00         Specified Equipment
   Corporation             LLC            Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell         D & G Dyes, Inc.       Alabama         B2000-33854FS         8/22/00        All inventory sold to
   Corporation                            Secretary of                                          Debtor by Secured Party
                                             State                                                and all proceeds and
                                                                                                    products thereof
--------------------------------------------------------------------------------------------------------------------------
     Russell          Fleet Leasing         Alabama         B2000-41151FS        10/17/00           Leased Equipment
   Corporation         Corporation        Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       6

<PAGE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------

      Debtor          Secured Party       Jurisdiction       File Number         File Date             Collateral
--------------------------------------------------------------------------------------------------------------------------
<S>                 <C>                 <C>                  <C>                 <C>              <C>

--------------------------------------------------------------------------------------------------------------------------
     Russell          Fleet Leasing         Alabama         B2000-41152FS        10/17/00           Leased Equipment
   Corporation         Corporation        Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell          Fleet Leasing         Alabama         B2000-46919FS         12/4/00           Leased Equipment
   Corporation         Corporation        Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell          Fleet Leasing         Alabama         B2000-46921FS         12/4/00           Leased Equipment
   Corporation         Corporation        Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell          Fleet Capital         Alabama         B2001-05109FS         2/6/01            Leased Equipment
   Corporation          Leasing -         Secretary of
                    Technology Finance       State
--------------------------------------------------------------------------------------------------------------------------
     Russell          Fleet Capital         Alabama         B2001-05212FS         2/7/01            Leased Equipment
   Corporation          Leasing -         Secretary of
                    Technology Finance       State
--------------------------------------------------------------------------------------------------------------------------
     Russell          Fleet Capital         Alabama         B2001-09815FS         3/13/01           Leased Equipment
   Corporation           Leasing          Secretary of
                    Technology Finance       State
--------------------------------------------------------------------------------------------------------------------------
     Russell         Tubular Textile        Alabama         B2001-29176FS         7/26/01         Specified Equipment
   Corporation             LLC            Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
  Russell Corp.        Caterpillar          Alabama         B2001-29433FS         7/27/01         Specified Equipment
                        Financial         Secretary of
                         Services            State
                       Corporation
--------------------------------------------------------------------------------------------------------------------------
     Russell        Russell Financial       Alabama         B2001-30932FS         8/06/01        Receivables, customer
   Corporation        Services, Inc.      Secretary of                                             agreements, goods,
                                             State                                             security for receivables,
                                                                                                 books and records, and
                                                                                                        proceeds
--------------------------------------------------------------------------------------------------------------------------
     Russell         Business Credit        Florida          970000055629         3/10/97         Specified Equipment
   Corporation           Leasing          Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell        Copy Products Co.       Florida          980000248264         11/6/98         Specified Equipment
   Corporation                            Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       7

<PAGE>

PAGE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------

      Debtor          Secured Party       Jurisdiction       File Number         File Date             Collateral
--------------------------------------------------------------------------------------------------------------------------
<S>                 <C>                 <C>                  <C>                 <C>              <C>

    Russell          SunTrust Bank,        Judge of            175760            4/30/97            Real property,
 Corporation and         Atlanta            Probate,                                            improvements, fixtures,
  The Industrial                        Houston County,                                         equipment and leasehold
Development Board                           Alabama
  of the Town of
Columbia, Alabama
--------------------------------------------------------------------------------------------------------------------------
     Russell         Regions Bank as        Judge of            328642            6/9/98             Buildings and
   Corporation      Trustee, formerly       Probate,       (continuation of      (original       improvements to leased
                    First Alabama Bank     Montgomery       original file     filed 1/31/89,    realty, fixtures, rights
                                        County, Alabama     number 294349)       amendment       under Lease Agreement,
                                                                              filed 4/24/92,        Project Revenues
                                                                                   first
                                                                               continuation
                                                                               filed 9/7/93
--------------------------------------------------------------------------------------------------------------------------
     Russell         Tubular Textile        Judge of            65873             7/26/01         Specified Equipment
   Corporation             LLC           Probate, Pike
                                        County, Alabama
--------------------------------------------------------------------------------------------------------------------------
     Russell          Fleet Capital      Fulton County,     0602001002971         2/13/01         Specified Equipment
   Corporation           Leasing            Georgia
                    Technology Finance
--------------------------------------------------------------------------------------------------------------------------
     Russell          Fleet Capital      Fulton County,     0602001002972         2/13/01         Specified Equipment
   Corporation           Leasing            Georgia
                    Technology Finance
--------------------------------------------------------------------------------------------------------------------------
     Russell          Fleet Capital      Fulton County,     0602001002973         2/13/01         Specified Equipment
   Corporation           Leasing            Georgia
                    Technology Finance
--------------------------------------------------------------------------------------------------------------------------
     Russell          Fleet Leasing      Fulton County,     0602000005134         3/20/00         Specified Equipment
   Corporation         Corporation          Georgia
--------------------------------------------------------------------------------------------------------------------------
     Russell          Fleet Leasing      Fulton County,     0602000005074         3/20/00         Specified Equipment
   Corporation         Corporation          Georgia
--------------------------------------------------------------------------------------------------------------------------
     Russell          Fleet Leasing      Fulton County,     0602000001044         1/14/00         Specified Equipment
   Corporation         Corporation          Georgia
--------------------------------------------------------------------------------------------------------------------------
     Russell          Fleet Leasing      Fulton County,     0601999020368        10/20/99         Specified Equipment
   Corporation         Corporation          Georgia
--------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                        8

<PAGE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------

      Debtor          Secured Party       Jurisdiction       File Number         File Date             Collateral
--------------------------------------------------------------------------------------------------------------------------
<S>                 <C>                 <C>                  <C>                 <C>              <C>

  Russell Corp.          City of         Fulton County,     GED Book 3161,        8/9/96           State Bridge Road;
                       Alpharetta,          Georgia            Page 270                          property description:
                         Georgia                                                                    12-2970-0856-024
--------------------------------------------------------------------------------------------------------------------------
     Russell           Crown Credit         Muscogee         10695004422         10/19/95         Specified Equipment
   Corporation           Company        County, Georgia
--------------------------------------------------------------------------------------------------------------------------
     Russell           Crown Credit         Muscogee         10695004423         10/19/95         Specified Equipment
   Corporation           Company        County, Georgia
--------------------------------------------------------------------------------------------------------------------------
  Russell Corp.        Caterpillar       Barrow County,    007-2001-008219        7/27/01           Leased Equipment
                        Financial           Georgia
                         Services
                       Corporation
--------------------------------------------------------------------------------------------------------------------------
     Russell        Russell Financial     Cobb County,       033200109714         8/6/01         Receivables, customer
   Corporation        Services, Inc.        Georgia                                                agreements, goods,
                                                                                               security for receivables,
                                                                                                 books and records, and
                                                                                                        proceeds
--------------------------------------------------------------------------------------------------------------------------
     Russell           Development         Muscogee         106-95-005244        12/22/95         Documents, Goods,
   Corporation          Authority       County, Georgia                                           Fixtures, Minerals,
                          of                                                                            Proceeds
                    Columbus, Georgia
                        (Assignee:
                      Synovus Trust
                         Company)                                                                Continued on 12/15/00
                                                                                                   with continuation
                                                                                                     #106-00-003549
--------------------------------------------------------------------------------------------------------------------------
     Russell            Macpherson          Muscogee        106-96-001012         3/8/96            This filing was
   Corporation      Meistergram, Inc.   County, Georgia                                          terminated on 4/24/96
                                                                                                   with filing number
                                                                                                     106-96-001656
--------------------------------------------------------------------------------------------------------------------------
   The Russell        First American       Tennessee          961549999          11/27/96         Specified Equipment
   Corporation        National Bank       Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell          First American       Tennessee          982009178           1/29/98         Specified Equipment
Corporation d/b/a     National Bank       Secretary of
   Hubert Hodge                              State
   Printing Co.
--------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       9
<PAGE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------

      Debtor          Secured Party       Jurisdiction       File Number         File Date             Collateral
--------------------------------------------------------------------------------------------------------------------------
<S>                 <C>                 <C>                  <C>                 <C>              <C>

   The Russell      Imation Financing      Tennessee          972064841           8/19/97           Leased Equipment
   Corporation           Services         Secretary of
                                             State
--------------------------------------------------------------------------------------------------------------------------
     Russell          Fleet Capital          Kansas            4572020            3/28/01           Leased Equipment
   Corporation           Leasing          Secretary of
                    Technology Finance       State
--------------------------------------------------------------------------------------------------------------------------
</TABLE>

                  2. Debt under the Notes issued by the Borrower (the "1992
Notes"), pursuant to, and as defined in, the Note Agreements each dated as of
December 1, 1992 (the "1992 Note Agreements"), in the original aggregate
principal amount of $75,000,000 due August 31, 2002, the holders of which are
Teachers Insurance and Annuity Association of America, AllState Life Insurance
Company, Connecticut General Life Insurance Company, and Prudential Insurance
Company of America ("Prudential").

                  3. Debt under the Notes issued by the Borrower (the "1995
Notes"), pursuant to, and as defined in, the Note Agreement dated as of December
7, 1995 (the "1995 Note Agreement"), in the original principal amount of
$100,000,000 due November 30, 2008, the sole holder of which is Prudential.

                  4. Debt under the Notes issued by the Borrower (the "1997
Notes"), pursuant to, and as defined in, the Note Agreement dated as of August
28, 1997 (the "1997 Note Agreements"), in the original principal amount of
$125,000,000 due August 28, 2007, the sole holder of which is Prudential.

                  5. Debt under any agreements ("Cash Management Agreements")
between the Borrower or a Subsidiary, on the one hand, and any Cash Management
Services Provider (as defined in the Guarantee and Collateral Agreement), on the
other hand, pursuant to which such Cash Management Services Provider provides
Cash Management Services (as defined in the Guarantee and Collateral Agreement).

                  6. Debt under the foreign exchange forward rate agreements
provided to the Borrower by JPMorgan Chase Bank (formerly The Chase Manhattan
Bank) pursuant to the ISDA Master Agreement and Schedules dated as of July 24,
2001 (the "Chase Swaps").

                  7. Debt under the Guarantee Agreement, dated as of August 4,
2000, by the Borrower to SunTrust Bank ("SunTrust") of loans by SunTrust to
Elasticos Centroamericanos Textiles, S.A. de C.V. (the "Elcatex Guarantee").

                  8. Debt of Russell Europe Limited in an amount of up
to(pound)15.0 million owing to the Bank of Scotland, and the guaranty of such
Debt by Russell Corporation.

                  9. Debt under the Intercompany Receivables Agreements.

                  10. Debt under Letters of credit issued from time to time by
First Union National Bank for the account of one or more of the Borrower and its
Subsidiaries and for the benefit of a supplier of the Borrower or a Subsidiary
(the "First Union Letters of Credit").

                  11. Intercompany Debt owing by RUServicios, Sociedad Anonima
to the Borrower, as evidenced by a promissory note in the principal amount of
US$5,000,000.

                  12. Letters of Credit issued prior to the date hereof by
SunTrust for the account of one or more of the Borrower and its Subsidiaries and
for the benefit of a supplier of the Borrower or a Subsidiary (the "SunTrust
Letters of Credit").

                                       10
<PAGE>

                  13. Amended and Restated Term Loan/Bankers' Acceptance
Agreement dated as of January 31, 2002, between the Borrower and SunTrust (the
"SunTrust Loan Agreement").

                  14. ISDA Master Agreement and Schedule dated as of June 19,
1995 (the "SunTrust/Russell Swap Agreement"), between Trust Company Bank (now
SunTrust) and the Borrower.

                  15. Guarantee of obligations of the Borrower pursuant to the
Guarantee and Collateral Agreement.

                  16. Debt under the Loan Documents.

                  17. Liens created in favor of Wachovia Bank, N.A., as
Collateral Agent, pursuant to the Guarantee and Collateral Agreement and various
mortgages executed in connection therewith, and the Debt secured thereby.

                                       11
<PAGE>

                                                                   SCHEDULE 5.18
                                        to Amended and Restated Credit Agreement

                             RESTRICTIVE AGREEMENTS

1.       The Loan Documents

2.       The 1992 Note Agreements

3.       The 1995 Note Agreements

4.       The 1997 Note Agreements

5.       The Elcatex Guarantee

6.       The Receivables Purchase Documents

7.       The SunTrust Loan Agreement

8.       The Guarantee and Collateral Agreement, together with the mortgages and
         other agreements and documents relating thereto

9.       Operating Agreement of Frontier Yarns LLC

10.      Shareholders' Agreement dated September 30, 1999 Between Russell do
         Brasil Ltda. and Companhia de Tecidos Norte de Minas - Coteminas

11.      Marmot Mountain Ltd. Second Amended and Restated Stockholder Agreement
         dated August 28, 2001

12.      The agreements evidencing the Permitted Sale Leasebacks may limit the
         ability of the Borrower to transfer or place liens upon the property
         subject thereto<PAGE>
================================================================================

                                                                  EXHIBIT (4f)

                       GUARANTEE AND COLLATERAL AGREEMENT

                                     made by

                               RUSSELL CORPORATION

                         and certain of its Subsidiaries

                                   in favor of

                              WACHOVIA BANK, N.A.,
                               as Collateral Agent

                          Dated as of December 14, 2001

================================================================================
<PAGE>
                                Table of Contents

<TABLE>
<CAPTION>
                                                                                                                   Page
                                                                                                                   ----
    <S>           <C>                                                                                              <C>
    SECTION 1.    DEFINED TERMS...................................................................................    2
         1.1      Definitions.....................................................................................    2
         1.2      Other Definitional Provisions..................................................................    10

    SECTION 2.    Guarantee......................................................................................    11
         2.1      Guarantee......................................................................................    11
         2.2      Right of Contribution..........................................................................    12
         2.3      No Subrogation.................................................................................    12
         2.4      Amendments, etc. with respect to the Borrower Obligations......................................    12
         2.5      Guarantee Absolute and Unconditional...........................................................    13
         2.6      Reinstatement..................................................................................    13
         2.7      Payments.......................................................................................    14

    SECTION 3.    GRANT OF SECURITY INTEREST.....................................................................    14

    SECTION 4.    REPRESENTATIONS AND WARRANTIES.................................................................    15
         4.1      Title; No Other Liens..........................................................................    15
         4.2      Perfected First Priority Liens.................................................................    15
         4.3      Jurisdiction of Organization; Chief Executive Office...........................................    16
         4.4      Inventory and Equipment........................................................................    16
         4.5      Farm Products..................................................................................    16
         4.6      Investment Property............................................................................    16
         4.7      Receivables....................................................................................    16
         4.8      Intellectual Property..........................................................................    16
         4.9      Guarantor Representations......................................................................    16

    SECTION 5.    COVENANTS......................................................................................    17
         5.1      Delivery of Instruments, Certificated Securities and Chattel Paper.............................    17
         5.2      Maintenance of Insurance.......................................................................    17
         5.3      Payment of Obligations.........................................................................    18
         5.4      Maintenance of Perfected Security Interest; Further Documentation..............................    18
         5.5      Changes in Locations, Name, etc................................................................    19
         5.6      Notices........................................................................................    19
         5.7      Investment Property............................................................................    19
         5.8      Intellectual Property..........................................................................    20
         5.9      Additional Collateral, etc.....................................................................    21
         5.10     Company Covenants..............................................................................    23

    SECTION 6.    REMEDIAL PROVISIONS............................................................................    24
         6.1      Certain Matters Relating to Receivables........................................................    24
         6.2      Communications with Obligors; Grantors Remain Liable...........................................    24
         6.3      Pledged Stock..................................................................................    25
         6.4      Intellectual Property..........................................................................    26
</TABLE>

<PAGE>

<TABLE>
    <S>           <C>                                                                                              <C>
         6.5      Proceeds to be Turned Over To Collateral Agent.................................................    26
         6.6      Application of Proceeds........................................................................    26
         6.7      Code and Other Remedies........................................................................    27
         6.8      Certain Restrictions on the Public Sale of Pledged Stock.......................................    27
         6.9      Deficiency.....................................................................................    28

    SECTION 7.    THE COLLATERAL AGENT...........................................................................    28
         7.1      Collateral Agent's Appointment as Attorney-in-Fact, etc........................................    28
         7.2      Duty of Collateral Agent.......................................................................    29
         7.3      Execution of Financing Statements..............................................................    30
         7.4      Authority of Collateral Agent..................................................................    30

    SECTION 8.    MISCELLANEOUS..................................................................................    30
         8.1      Amendments in Writing..........................................................................    30
         8.2      Notices........................................................................................    30
         8.3      No Waiver by Course of Conduct; Cumulative Remedies............................................    31
         8.4      Expenses; Indemnification......................................................................    31
         8.5      Successors and Assigns.........................................................................    32
         8.6      Set-Off........................................................................................    32
         8.7      Counterparts...................................................................................    33
         8.8      Severability...................................................................................    33
         8.9      Section Headings...............................................................................    33
         8.10     Integration....................................................................................    33
         8.11     GOVERNING LAW..................................................................................    33
         8.12     Submission To Jurisdiction; Waivers............................................................    33
         8.13     Acknowledgements...............................................................................    34
         8.14     Additional Grantors............................................................................    34
         8.15     Releases.......................................................................................    34
         8.16     WAIVER OF JURY TRIAL...........................................................................    35

    SCHEDULES

    Schedule 1    Notice Addresses                                                                                   38
    Schedule 2    Investment Property                                                                                39
    Schedule 3    Perfection Matters                                                                                 45
    Schedule 4    Jurisdictions of Organization and Chief Executive Offices                                          50
    Schedule 5    Inventory and Equipment Locations                                                                  51
    Schedule 6    Intellectual Property                                                                              56
</TABLE>
<PAGE>

                       GUARANTEE AND COLLATERAL AGREEMENT

         GUARANTEE AND COLLATERAL AGREEMENT, dated as of December 14, 2001, made
by each of the signatories hereto (together with any other entity that may
become a party hereto as provided herein, the "Grantors"), in favor of WACHOVIA
BANK, N.A., as Collateral Agent (in such capacity, the "Collateral Agent") for
the Secured Parties (as defined below).

                              W I T N E S S E T H:

         WHEREAS, Russell Corporation, an Alabama corporation (the "Company"),
and certain of its subsidiaries are parties to the Transaction Documents (as
defined below), pursuant to which the Secured Parties have made extensions of
credit to the Company and such subsidiaries;

         WHEREAS, the Company has requested that the Secured Parties agree to
certain modifications to the Transaction Documents and to continue making loans
and other financial accommodations available to the Company;

         WHEREAS, the Company is a member of an affiliated group of companies
that includes each other Grantor;

         WHEREAS, the proceeds of the extensions of credit under the Transaction
Documents have been and will be used in part to enable the Company to make
valuable transfers to one or more of the other Grantors in connection with the
operation of their respective businesses;

         WHEREAS, the Company and the other Grantors are engaged in related
businesses, and each Grantor has derived and will continue to derive substantial
direct and indirect benefit from the extensions of credit under the Transaction
Documents; and

         WHEREAS, it is a condition precedent to the agreement of the Secured
Parties to make the requested modifications to the Transaction Documents and to
continue making loans and other financial accommodations available to the
Company that the Grantors shall have executed and delivered this Agreement to
the Collateral Agent for the ratable benefit of the Secured Parties;

         NOW, THEREFORE, in consideration of the premises and to induce the
Collateral Agent and the Secured Parties to make the requested modifications to
the Transaction Documents and to continue making loans and other financial
accommodations available to the Company, each Grantor hereby agrees with the
Collateral Agent, for the ratable benefit of the Secured Parties, as follows:

<PAGE>

                            SECTION 1. DEFINED TERMS

         1.1 Definitions. (a) The following terms are used herein as defined in
the UCC: Accounts, Certificated Security, Chattel Paper, Documents, Equipment,
Farm Products, General Intangibles, Instruments, Inventory and Supporting
Obligations.

         (b) The following terms shall have the following meanings:

                  "1992 Notes": the Notes issued by the Company, pursuant to,
and as defined in, the Note Agreements each dated as of December 1, 1992, in the
original aggregate principal amount of $75,000,000 due August 31, 2002, the
holders of which are Teachers, AllState, Connecticut General, and Prudential.

                  "1995 Notes": the Notes issued by the Company, pursuant to,
and as defined in, the Note Agreement dated as of December 7, 1995, in the
original principal amount of $100,000,000 due November 30, 2008, the sole holder
of which is Prudential.

                  "1997 Notes": the Notes issued by the Company, pursuant to,
and as defined in, the Note Agreement dated as of August 28, 1997, in the
original principal amount of $125,000,000 due August 28, 2007, the sole holder
of which is Prudential.

                  "Actionable Default": an Event of Default under any
Transaction Document (other than one resulting solely from an Event of Default
under any Security Documents that is waived by Collateral Agent at the direction
of the Required Secured Parties) in consequence of which a Secured Party is
authorized to accelerate the maturity and demand payment of the outstanding
Secured Debt owing to it under such Transaction Document.

                  "Agreement": this Guarantee and Collateral Agreement, as the
same may be amended, supplemented or otherwise modified from time to time.

                  "Aliant": Aliant Bank.

                  "AllState": AllState Life Insurance Company.

                  "AmSouth": AmSouth Bank.

                  "Bank": any bank that is a Revolver Bank or a Cash Management
Services Provider.

                  "Borrower": each of the Company and Russell Europe Limited.

                  "Borrower Obligations": with respect to each Borrower, the
collective reference to the unpaid principal of and interest on the Secured Debt
and all other obligations and liabilities of such Borrower (including, without
limitation, interest accruing at the then applicable rate provided in the
applicable Transaction Documents after the maturity of the Secured Debt and
interest accruing at the then applicable rate provided in the applicable
Transaction Documents after the filing of any petition in bankruptcy, or the
commencement of any insolvency, reorganization or like proceeding, relating to
such Borrower, whether or not a claim for post

                                       2
<PAGE>

-filing or post-petition interest is allowed in such proceeding) to the
Collateral Agent or any Secured Party, whether direct or indirect, absolute or
contingent, due or to become due, or now existing or hereafter incurred, which
may arise under, out of, or in connection with, any Transaction Document, this
Agreement, the other Security Documents or any other document made, delivered or
given in connection with any of the foregoing, in each case whether on account
of principal, interest, reimbursement obligations, fees, indemnities, costs,
expenses or otherwise (including, without limitation, all fees and disbursements
of counsel to the Collateral Agent or to the Secured Parties that are required
to be paid by such Borrower pursuant to the terms of any of the foregoing
agreements).

                  "Business Day": any day except a Saturday, Sunday, or any
other day on which commercial banks in Georgia and New York are authorized by
law to close.

                  "Capital Stock": any and all shares, interests, participations
or other equivalents (however designated) of capital stock of a corporation, any
and all equivalent ownership interests in a Person (other than a corporation)
and any and all warrants, rights or options to purchase any of the foregoing.

                  "Cash Management Agreements": any and all agreements between
an Obligor, on the one hand, and any Cash Management Services Provider, on the
other hand, whether now or hereafter in effect, pursuant to which such Cash
Management Services Provider provides Cash Management Services.

                  "Cash Management Obligations": the liabilities and obligations
of any Obligor to any Bank that arises out of or relates to any depository
account relationship or other cash management services provided by a bank
(including any lockbox, dominion account, wire transfer, or ACH privileges).

                  "Cash Management Services": the cash management services for
operating, collection, payroll and trust accounts of the Company and/or its
Subsidiaries provided by any Cash Management Services Provider and/or its
affiliates, including automatic clearinghouse services, control disbursement
services, electronic funds transfer services, information reporting services,
lockbox services, stop payment services, and wire transfer services.

                  "Cash Management Services Provider": any Creditor or affiliate
thereof which provides Cash Management Services to the Company and/or any of its
Subsidiaries under any of the Cash Management Agreements or otherwise relating
to any of the Cash Management Services, in its capacity as the provider of such
services.

                  "Chase": JPMorgan Chase Bank (formerly The Chase Manhattan
Bank).

                  "Chase Swaps": the foreign exchange forward rate agreements
provided to the Company by Chase pursuant to the ISDA Master Agreement and
Schedules dated as of July 24, 2001.

                  "Collateral Agent": Wachovia, in its capacity as collateral
agent for Secured Parties under the Intercreditor Agreement and the Security
Documents, together with its successors in such capacity.

                                       3
<PAGE>

                  "Collateral Reserve Account": an account established at
Wachovia for the purpose of receiving payments or proceeds to be held, invested,
and distributed in accordance with the terms of this Agreement.

                  "Collateral":  as defined in Section 3.

                  "Comerica":  Comerica Bank.

                  "Connecticut General": Connecticut General Life Insurance
Company.

                  "Consolidated Operating Profits": for any period, the
Operating Profits of the Company and its Consolidated Subsidiaries.

                  "Consolidated Total Assets": at any time, the total assets of
the Company and its Consolidated Subsidiaries, determined on a consolidated
basis, as set forth or reflected on the most recent consolidated balance sheet
of the Company and its Consolidated Subsidiaries, prepared in accordance with
GAAP.

                  "Consolidated Subsidiary": at any date, any Subsidiary or
other entity the accounts of which, in accordance with GAAP, would be
consolidated with those of the Company in its consolidated financial statements
as of such date.

                  "Copyrights": (i) all copyrights arising under the laws of the
United States, whether registered or unregistered and whether published or
unpublished (including, without limitation, those listed in Schedule 6), all
registrations and recordings thereof, and all applications in connection
therewith, including, without limitation, all registrations, recordings and
applications in the United States Copyright Office, and (ii) the right to obtain
all renewals thereof.

                  "Copyright Licenses": any written agreement naming any Grantor
as licensor or licensee (including, without limitation, those listed in Schedule
6), granting any right under any Copyright, including, without limitation, the
grant of rights to manufacture, distribute, exploit and sell materials derived
from any Copyright.

                  "Creditors": each Bank, the Swaps Lender, each Letter of
Credit Issuer, each Noteholder and Term Lender.

                  "Deposit Account": as defined in the Uniform Commercial Code
of any applicable jurisdiction and, in any event, including, without limitation,
any demand, time, savings, passbook or like account maintained with a depositary
institution.

                  "Documentation Agent": First Union, in its capacity as
documentation agent under the Revolver Bank Documents.

                  "Dollars": and the sign "$" lawful money of the United States
of America.

                  "Domestic Subsidiary": any Subsidiary of the Company organized
under the laws of any jurisdiction within the United States of America.

                                       4
<PAGE>

                  "Elcatex": Elasticos Centroamericanos Textiles, S.A. de C.V.

                  "Elcatex Guarantee": the Guarantee Agreement, dated as of
August 4, 2000, from the Company in favor of SunTrust.

                  "Environmental Indemnity Agreement": the Environmental
Indemnity Agreement, dated as of December 14, 2001, among the Company, Cross
Creek Apparel, LLC, DeSoto Mills, Inc. and the Collateral Agent.

                  "Environmental Laws": as defined in the Environmental
Indemnity Agreement.

                  "Event of Default": any event or condition that constitutes an
event of default or equivalent event under any of the Transaction Documents or
Security Documents.

                  "Excluded Domestic Subsidiary": any Domestic Subsidiary that
is not a Significant Domestic Subsidiary.

                  "First Union": First Union National Bank, a national bank.

                  "First Union Letters of Credit": the letters of credit at any
time issued by First Union for the account of one or more Obligors and for the
benefit of a supplier of Obligors.

                  "Fiscal Quarter": any fiscal quarter of the Company.

                  "Foreign Subsidiary": any Subsidiary of the Company organized
under the laws of any jurisdiction outside the United States of America.

                  "Foreign Subsidiary Voting Stock": the voting Capital Stock of
any Foreign Subsidiary.

                  "Governmental Authority": the government of the United States
of America, any other nation or political subdivision thereof, whether state or
local, and any agency, authority, instrumentality, regulatory body, court,
central bank or other entity exercising executive, legislative, judicial,
taxing, regulatory or administrative powers or functions of or pertaining to
government.

                  "Guarantor Obligations": with respect to any Guarantor, all
obligations and liabilities of such Guarantor which may arise under or in
connection with this Agreement (including, without limitation, Section 2) or any
other Transaction Document to which such Guarantor is a party, in each case
whether on account of guarantee obligations, reimbursement obligations, fees,
indemnities, costs, expenses or otherwise (including, without limitation, all
fees and disbursements of counsel to the Collateral Agent or to the Secured
Parties that are required to be paid by such Guarantor pursuant to the terms of
this Agreement or any other Security Document).

                  "Guarantors": the collective reference to each Grantor other
than the Company.

                                       5
<PAGE>

                  "Insolvency Proceeding": any action, case, or proceeding
commenced by or against a Person, or any agreement of such Person, for (i) the
entry of an order for relief under any chapter of the United States Bankruptcy
Code or other insolvency or debt adjustment law (whether state, federal, or
foreign); (ii) the appointment of a receiver, trustee, liquidator, or other
custodian for such Person or any part of its properties; (iii) an assignment or
trust mortgage for the benefit of creditors of such Person; or (iv) the
liquidation, dissolution, or winding up of the affairs of such Person.

                  "Insurance Proceeds": the proceeds of any property or casualty
insurance covering any of the Collateral.

                  "Intellectual Property": the collective reference to all
rights, priorities and privileges relating to intellectual property arising
under United States law, including, without limitation, the Copyrights, the
Copyright Licenses, the Patents, the Patent Licenses, the Trademarks and the
Trademark Licenses, and all rights to sue at law or in equity for any
infringement or other impairment thereof, including the right to receive all
proceeds and damages therefrom.

                  "Intercompany Note": any promissory note evidencing loans made
by any Grantor to the Company or any of its Subsidiaries.

                  "Intercreditor Agreement": the Intercreditor and Agency
Agreement, dated as of December 14, 2001, among the Secured Parties and the
Collateral Agent.

                  "Investment Property": the collective reference to (i) all
"investment property" as such term is defined in Section 9-102(a)(50) of the UCC
(other than any Foreign Subsidiary Voting Stock excluded from the definition of
"Pledged Stock") and (ii) whether or not constituting "investment property" as
so defined, all Pledged Notes, all Pledged Stock and all Pledged Bonds.

                  "Issuers": the collective reference to each issuer of any
Investment Property.

                  "Letter of Credit Issuer": each of (i) First Union in its
capacity as the issuer of the First Union Letters of Credit and (ii) SunTrust in
its capacity as issuer of the SunTrust Letters of Credit.

                  "Letters of Credit": the First Union Letters of Credit and the
SunTrust Letters of Credit.

                  "LC Obligations": on any date of determination thereof, an
amount (in Dollars) equal to the sum of (i) all amounts then due and payable by
any Obligor on such date by reason of any payment made on or before such date by
the issuer of a Letter of Credit, plus (ii) the aggregate undrawn amount of all
Letters of Credit then outstanding.

                  "Lien": any interest in any property securing an obligation
owed to, or a claim by, a Person other than the owner of the property, whether
such interest is based upon common law, a statute or contract, including (i) any
lien, security interest or security title arising from a mortgage, deed of
trust, deed to secure debt, pledge, security agreement, conditional sale,

                                       6
<PAGE>

consignment, lease, or bailment for security purposes; (ii) liens obtained by
judgment or in any judicial proceeding; and (iii) liens conferred or authorized
in any Insolvency Proceeding.

                  "Mortgage": a mortgage, deed of trust, deed to secure debt, or
other agreement executed by an Obligor to grant and convey to Collateral Agent a
Lien upon any interest in real property of an Obligor.

                  "Note Agreements": the note agreements pursuant to which the
1992 Notes, the 1995 Notes and the 1997 Notes were issued.

                  "Noteholders": the holders of the 1992 Notes, 1995 Notes, and
1997 Notes.

                  "Notes": 1992 Notes, 1995 Notes, and 1997 Notes.

                  "Obligations": (i) in the case of each Borrower, its Borrower
Obligations, and (ii) in the case of each Guarantor, its Guarantor Obligations.

                  "Obligors": the Borrowers and the Guarantors.

                  "Operating Profits": as applied to any Person for any period,
the operating income of such Person for such period, as determined in accordance
with GAAP.

                  "Party": a Person who is, on the date hereof, or thereafter
becomes a party to this Agreement.

                  "Patents": (i) all letters patent of the United States, all
reissues and extensions thereof and all goodwill associated therewith,
including, without limitation, any of the foregoing referred to in Schedule 6,
(ii) all applications for letters patent of the United States and all divisions,
continuations and continuations-in-part thereof, including, without limitation,
any of the foregoing referred to in Schedule 6, and (iii) all rights to obtain
any reissues or extensions of the foregoing.

                  "Patent License": all agreements, whether written or oral,
providing for the grant by or to any Grantor of any right to manufacture, use or
sell any invention covered in whole or in part by a Patent, including, without
limitation, any of the foregoing referred to in Schedule 6.

                  "Person": an individual, a partnership, a joint venture, a
corporation, a limited liability corporation or partnership, a trust, limited
liability company, an unincorporated organization and a government or any
department or agency thereof.

                  "Pledged Bonds": the Industrial Development Revenue Bonds,
listed on Schedule 2.

                  "Pledged Notes": all promissory notes listed on Schedule 2,
all Intercompany Notes at any time issued to any Grantor and all other
promissory notes issued to or held by any Grantor (other than promissory notes
issued in connection with extensions of trade credit by any Grantor in the
ordinary course of business).

                                       7
<PAGE>

                  "Pledged Stock": the shares of Capital Stock listed on
Schedule 2, together with any other shares, stock certificates, options,
interests or rights of any nature whatsoever in respect of the Capital Stock of
any Person that may be issued or granted to, or held by, any Grantor while this
Agreement is in effect; provided that in no event shall more than 65% of the
total outstanding Foreign Subsidiary Voting Stock of any Foreign Subsidiary be
required to be pledged hereunder.

                  "Proceeds": all "proceeds" as such term is defined in Section
9-102(a)(64) of the UCC and, in any event, shall include, without limitation,
all dividend or other income from the Investment Property, collections thereon
or distributions or payments with respect thereto.

                  "Properties": the facilities and properties owned, leased or
operated by the Company and its Subsidiaries.

                  "Prudential": The Prudential Insurance Company of America.

                  "Receivable": any right to payment for goods sold or leased or
for services rendered, whether or not such right is evidenced by an Instrument
or Chattel Paper and whether or not it has been earned by performance
(including, without limitation, any Account).

                  "Requirement of Law": as to any Person, the certificate of
incorporation and by-laws or other organizational or governing documents of such
Person, and any law, treaty, rule or regulation or determination of an
arbitrator or a court or other Governmental Authority, in each case applicable
to or binding upon such Person or any of its property or to which such Person or
any of its property is subject.

                  "Revolver Administrative Agent": Wachovia, in its capacity as
administrative agent for the Revolver Banks.

                  "Revolver Agents": the Revolver Administrative Agent,
Syndication Agent, and Documentation Agent.

                  "Revolver Bank Documents": the Revolver Credit Agreement and
all other instruments and agreements evidencing or securing loans and other
extensions of credit made by Revolver Banks to Revolver Borrowers under the
Revolver Credit Agreement.

                  "Revolver Banks": each "Bank" from time to time as such term
is defined in the Revolver Credit Agreement, which as of the date hereof, is
Wachovia, SunTrust, First Union, AmSouth Bank, Chase, Comerica and Aliant.

                  "Revolver Borrowers": The Company and Russell Europe Limited,
a corporation organized under the laws of the United Kingdom.

                  "Revolver Commitment": for each Revolver Bank on any date, the
aggregate amount of such Revolver Bank's commitments under the Revolver Credit
Agreement on such date.

                                       8
<PAGE>

                  "Revolver Credit Agreement": the Credit Agreement, dated as of
October 15, 1999, among the Company, Russell Europe Limited, the Revolver Agents
and the Revolver Banks, as the same may be amended from time to time.

                  "Russell Financial": Russell Financial Services, Inc., a
Delaware corporation.

                  "Securities Act": the Securities Act of 1933, as amended.

                  "Secured Debt": indebtedness owing to any of the Secured
Parties under any of the Transaction Documents, including any LC Obligations and
any Cash Management Obligations and including any net swap amounts or swap
termination amounts owing from time to time with respect to the Swaps.

                  "Security Documents": this Agreement and all other security
agreements, Mortgages, collateral assignments, and other agreements securing,
with the lien granted in favor of Collateral Agent, all of the Secured Debt for
the benefit of Secured Parties.

                  "Secured Parties": the Creditors and Revolver Agents.

                  "Significant Domestic Subsidiary": on any date of
determination, each Domestic Subsidiary, which either individually or together
with its own subsidiaries accounted for more than 2% of the Consolidated
Operating Profits during the four Fiscal Quarters immediately preceding the date
of determination or has assets that represent more than 2% of Consolidated Total
Assets at the end of the most recent Fiscal Year immediately preceding the date
of determination.

                  "Subsidiary": any corporation or other entity of which the
Capital Stock having ordinary voting power to elect a majority of the board of
directors or other persons performing similar functions are at the time directly
or indirectly owned by any Person.

                  "SunTrust": SunTrust Bank, a Georgia banking corporation
formerly known as Trust Company Bank.

                  "SunTrust Letters of Credit": Letters of Credit issued prior
to the date hereof by SunTrust for the account of one or more Obligors and for
the benefit of a supplier of Obligors.

                  "SunTrust Loan Agreement": Term Loan/Bankers' Acceptance
Agreement dated as of June 30, 1995, between the Company and SunTrust.

                  "SunTrust/Russell Swap Agreement": the ISDA Master Agreement
and Schedule dated as of June 19, 1995, between Trust Company Bank (now
SunTrust) and the Company.

                  "SunTrust Swaps": the interest rate swaps provided pursuant to
the SunTrust/Russell Swap Agreement.

                  "Swaps": the Chase Swaps and the SunTrust Swaps.

                  "Swaps Lender": Chase in its capacity as party to the Chase
Swaps.

                                       9
<PAGE>

                  "Syndication Agent": SunTrust, in its capacity as syndication
agent under the Revolver Bank Documents.

                  "Teachers": Teachers Insurance and Annuity Association of
America.

                  "Term Lender": SunTrust in its capacity as party to the Term
Lender Loan Documents.

                  "Term Lender Loan Documents": the SunTrust Loan Agreement, the
SunTrust Letters of Credit, the SunTrust/Russell Swap Agreement and the Elcatex
Guarantee, and all other instruments and agreements executed by the Company in
connection therewith.

                  "Trademarks": (i) all United States trademarks, trade names,
corporate names, company names, business names, fictitious business names, trade
styles, service marks, logos and other source or business identifiers, and all
goodwill associated therewith, now existing or hereafter adopted or acquired,
all registrations and recordings thereof, and all applications in connection
therewith, whether in the United States Patent and Trademark Office or in any
similar office or agency of the United States or any State thereof, and all
common-law rights related thereto, including, without limitation, any of the
foregoing referred to in Schedule 6, and (ii) the right to obtain all renewals
thereof.

                  "Trademark License": any agreement, whether written or oral,
providing for the grant by or to any Grantor of any right to use any Trademark,
including, without limitation, any of the foregoing referred to in Schedule 6.

                  "Transaction Documents": the following instruments and
agreements evidencing or securing Secured Debt owing to Secured Parties: the
Notes Agreements, the First Union Letters of Credit, the Revolver Bank
Documents, the Chase Swaps, the Cash Management Agreements, the Term Lender Loan
Documents and the Security Documents, as the same may be amended from time to
time.

                  "UCC": the Uniform Commercial Code as from time to time in
effect in the State of Georgia.

                  "Vehicles": all cars, trucks, trailers, construction and earth
moving equipment and other vehicles covered by a certificate of title law of any
state.

                  "Wachovia": Wachovia Bank, N.A., a national bank.

         1.2 Other Definitional Provisions. (a) The words "hereof," "herein",
"hereto" and "hereunder" and words of similar import when used in this Agreement
shall refer to this Agreement as a whole and not to any particular provision of
this Agreement, and Section and Schedule references are to this Agreement unless
otherwise specified.

         (b) The meanings given to terms defined herein shall be equally
applicable to both the singular and plural forms of such terms.

                                       10

<PAGE>

         (c) Where the context requires, terms relating to the Collateral or any
part thereof, when used in relation to a Grantor, shall refer to such Grantor's
Collateral or the relevant part thereof.

         (d) All references to any instrument or agreement, including any of the
Security Documents or any of the other Transaction Documents, shall include any
and all modifications thereto and any and all extensions or renewals thereof.

                              SECTION 2. GUARANTEE

         2.1 Guarantee. (a) Each of the Guarantors hereby, jointly and
severally, unconditionally and irrevocably, guarantees to the Collateral Agent,
for the ratable benefit of the Secured Parties and their respective successors,
indorsees, transferees and assigns, the prompt and complete payment and
performance by each Borrower when due (whether at the stated maturity, by
acceleration or otherwise) of the Borrower Obligations.

         (b) Anything herein or in any Transaction Document or other Security
Document to the contrary notwithstanding, the maximum liability of each
Guarantor hereunder and under the Transaction Documents or other Security
Document shall in no event exceed the amount which can be guaranteed by such
Guarantor under applicable federal and state laws relating to the insolvency of
debtors (after giving effect to the right of contribution established in Section
2.2).

         (c) Each Guarantor agrees that the Borrower Obligations may at any time
and from time to time exceed the amount of the liability of such Guarantor
hereunder without impairing the guarantee contained in this Section 2 or
affecting the rights and remedies of the Collateral Agent or any Secured Party
hereunder.

         (d) The guarantee contained in this Section 2 shall remain in full
force and effect until all the Borrower Obligations and the obligations of each
Guarantor under the guarantee contained in this Section 2 shall have been
satisfied by payment in full, no Letters of Credit shall be outstanding and the
Revolver Commitments shall be terminated, notwithstanding that from time to time
during the term of the Transaction Documents each Borrower may be free from any
Borrower Obligations.

         (e) No payment made by a Borrower, any of the Guarantors, any other
guarantor or any other Person or received or collected by the Collateral Agent
or any Secured Party from a Borrower, any of the Guarantors, any other guarantor
or any other Person by virtue of any action or proceeding or any set-off or
appropriation or application at any time or from time to time in reduction of or
in payment of the Borrower Obligations shall be deemed to modify, reduce,
release or otherwise affect the liability of any Guarantor hereunder which
shall, notwithstanding any such payment (other than any payment made by such
Guarantor in respect of the Borrower Obligations or any payment received or
collected from such Guarantor in respect of the Borrower Obligations), remain
liable for the Borrower Obligations up to the maximum liability of such
Guarantor hereunder until the Borrower Obligations are paid in full, no Letters
of Credit shall be outstanding and the Revolver Commitments are terminated.

                                       11
<PAGE>

         2.2 Right of Contribution. Each Guarantor hereby agrees that to the
extent that a Guarantor shall have paid more than its proportionate share of any
payment made hereunder, such Guarantor shall be entitled to seek and receive
contribution from and against any other Guarantor hereunder which has not paid
its proportionate share of such payment. Each Guarantor's right of contribution
shall be subject to the terms and conditions of Section 2.3. The provisions of
this Section 2.2 shall in no respect limit the obligations and liabilities of
any Guarantor to the Collateral Agent and the Secured Parties, and each
Guarantor shall remain liable to the Collateral Agent and the Secured Parties
for the full amount guaranteed by such Guarantor hereunder.

         2.3 No Subrogation. Notwithstanding any payment made by any Guarantor
hereunder or any set-off or application of funds of any Guarantor by the
Collateral Agent or any Secured Party, no Guarantor shall be entitled to be
subrogated to any of the rights of the Collateral Agent or any Secured Party
against a Borrower or any other Guarantor or any collateral security or
guarantee or right of offset held by the Collateral Agent or any Secured Party
for the payment of the Borrower Obligations of any Borrower, nor shall any
Guarantor seek or be entitled to seek any contribution or reimbursement from a
Borrower or any other Guarantor in respect of payments made by such Guarantor
hereunder, until all amounts owing to the Collateral Agent and the Secured
Parties by any Borrower on account of the Borrower Obligations of each Borrower
are paid in full, no Letters of Credit shall be outstanding and the Revolver
Commitments are terminated. If any amount shall be paid to any Guarantor on
account of such subrogation rights at any time when all of the Borrower
Obligations of each Borrower shall not have been paid in full, such amount shall
be held by such Guarantor in trust for the Collateral Agent and the Secured
Parties, segregated from other funds of such Guarantor, and shall, forthwith
upon receipt by such Guarantor, be turned over to the Collateral Agent in the
exact form received by such Guarantor (duly indorsed by such Guarantor to the
Collateral Agent, if required), to be applied against the Borrower Obligations
of each Borrower, whether matured or unmatured, in the order specified in the
Intercreditor Agreement.

         2.4 Amendments, etc. with respect to the Borrower Obligations. Each
Guarantor shall remain obligated hereunder notwithstanding that, without any
reservation of rights against any Guarantor and without notice to or further
assent by any Guarantor, any demand for payment of any of the Borrower
Obligations made by the Collateral Agent or any Secured Party may be rescinded
by the Collateral Agent or such Secured Party and any of the Borrower
Obligations continued, and the Borrower Obligations, or the liability of any
other Person upon or for any part thereof, or any collateral security or
guarantee therefor or right of offset with respect thereto, may, from time to
time, in whole or in part, be renewed, extended, amended, modified, accelerated,
compromised, waived, surrendered or released by the Collateral Agent or any
Secured Party, and the Transaction Documents and any other documents executed
and delivered in connection therewith may be amended, modified, supplemented or
terminated, in whole or in part, as the Collateral Agent (or the Required
Secured Parties or all Secured Parties, as the case may be) may deem advisable
from time to time, and any collateral security, guarantee or right of offset at
any time held by the Collateral Agent or any Secured Party for the payment of
the Borrower Obligations may be sold, exchanged, waived, surrendered or
released. Neither the Collateral Agent nor any Secured Party shall have any
obligation to protect, secure, perfect or insure any Lien at any time held by it
as security for the Borrower Obligations or for the guarantee contained in this
Section 2 or any property subject thereto.

                                       12
<PAGE>

         2.5 Guarantee Absolute and Unconditional. Each Guarantor waives any and
all notice of the creation, renewal, extension or accrual of any of the Borrower
Obligations and notice of or proof of reliance by the Collateral Agent or any
Secured Party upon the guarantee contained in this Section 2 or acceptance of
the guarantee contained in this Section 2; the Borrower Obligations, and any of
them, shall conclusively be deemed to have been created, contracted or incurred,
or renewed, extended, amended or waived, in reliance upon the guarantee
contained in this Section 2; and all dealings between a Borrower and any of the
Guarantors, on the one hand, and the Collateral Agent and the Secured Parties,
on the other hand, likewise shall be conclusively presumed to have been had or
consummated in reliance upon the guarantee contained in this Section 2. Each
Guarantor waives diligence, presentment, protest, demand for payment and notice
of default or nonpayment to or upon a Borrower or any of the Guarantors with
respect to the Borrower Obligations. Each Guarantor understands and agrees that
the guarantee contained in this Section 2 shall be construed as a continuing,
absolute and unconditional guarantee of payment without regard to (a) the
validity or enforceability of the Transaction Documents or any Security
Document, any of the Borrower Obligations or any other collateral security
therefor or guarantee or right of offset with respect thereto at any time or
from time to time held by the Collateral Agent or any Secured Party, (b) any
defense, set-off or counterclaim (other than a defense of payment or
performance) which may at any time be available to or be asserted by a Borrower
or any other Person against the Collateral Agent or any Secured Party, or (c)
any other circumstance whatsoever (with or without notice to or knowledge of a
Borrower or such Guarantor) which constitutes, or might be construed to
constitute, an equitable or legal discharge of a Borrower for its Borrower
Obligations, or of such Guarantor under the guarantee contained in this Section
2, in bankruptcy or in any other instance. When making any demand hereunder or
otherwise pursuing its rights and remedies hereunder against any Guarantor, the
Collateral Agent or any Secured Party may, but shall be under no obligation to,
make a similar demand on or otherwise pursue such rights and remedies as it may
have against a Borrower, any other Guarantor or any other Person or against any
collateral security or guarantee for the Borrower Obligations or any right of
offset with respect thereto, and any failure by the Collateral Agent or any
Secured Party to make any such demand, to pursue such other rights or remedies
or to collect any payments from a Borrower, any other Guarantor or any other
Person or to realize upon any such collateral security or guarantee or to
exercise any such right of offset, or any release of a Borrower, any other
Guarantor or any other Person or any such collateral security, guarantee or
right of offset, shall not relieve any Guarantor of any obligation or liability
hereunder, and shall not impair or affect the rights and remedies, whether
express, implied or available as a matter of law, of the Collateral Agent or any
Secured Party against any Guarantor. For the purposes hereof "demand" shall
include the commencement and continuance of any legal proceedings. Each
Guarantor further waives any right such Guarantor may have, by statute or
otherwise, to require any of the Secured Parties to institute suit against a
Borrower or any other Guarantor after notice or demand from such Guarantor or to
seek recourse first against a Borrower or any other Guarantor, or to realize
upon any Collateral, as a condition to enforcing such Guarantor's liability and
obligations hereunder.

         2.6 Reinstatement. The guarantee contained in this Section 2 shall
continue to be effective, or be reinstated, as the case may be, if at any time
payment, or any part thereof, of any of the Borrower Obligations is rescinded or
must otherwise be restored or returned by the Collateral Agent or any Secured
Party upon the insolvency, bankruptcy, dissolution, liquidation or
reorganization of a Borrower or any Guarantor, or upon or as a result of the
appointment of a

                                       13
<PAGE>

receiver, intervenor or conservator of, or trustee or similar officer for, a
Borrower or any Guarantor or any substantial part of its property, or otherwise,
all as though such payments had not been made.

         2.7 Payments. Each Guarantor hereby guarantees that payments hereunder
will be paid to the Collateral Agent without set-off or counterclaim in Dollars
(or in such other currency as the relevant Transaction Document requires) at
such office of the Collateral Agreement as the Collateral Agent may specify in
writing to the Company from time to time.

                     SECTION 3. GRANT OF SECURITY INTEREST

                  Each Grantor hereby assigns and transfers to the Collateral
Agent, and hereby grants to the Collateral Agent, for the ratable benefit of the
Secured Parties, a security interest in, all of the following property now owned
or at any time hereafter acquired by such Grantor or in which such Grantor now
has or at any time in the future may acquire any right, title or interest
(collectively, the "Collateral"), as collateral security for the prompt and
complete payment and performance when due (whether at the stated maturity, by
acceleration or otherwise) of such Grantor's Obligations,:

         (a) all Accounts;

         (b) all Chattel Paper;

         (c) all Deposit Accounts;

         (d) all Documents (other than title documents with respect to
Vehicles);

         (e) all Equipment;

         (f) all General Intangibles;

         (g) all Instruments;

         (h) all Intellectual Property;

         (i) all Inventory;

         (j) all Investment Property;

         (k) all books and records pertaining to the Collateral; and

         (l) to the extent not otherwise included, all Proceeds, Supporting
Obligations and products of any and all of the foregoing and all collateral
security and guarantees given by any Person with respect to any of the
foregoing; provided, however, that Collateral shall not include property of a
Grantor which requires action outside the United States to perfect a security
interest therein under United States law; and

                                       14
<PAGE>

provided further, that notwithstanding any of the other provisions set forth in
this Section 3, this Agreement shall not constitute a grant of a security
interest in any property to the extent that such grant of a security interest is
prohibited by any Requirements of Law of a Governmental Authority, requires a
consent not obtained of any Governmental Authority pursuant to such Requirement
of Law or is prohibited by, or constitutes a breach or default under or results
in the termination of or requires any consent not obtained under, any contract,
license, agreement, instrument or other document evidencing or giving rise to
such property or, in the case of any Investment Property, Pledged Stock or
Pledged Note, any applicable shareholder or similar agreement, except to the
extent that such Requirement of Law or the term in such contract, license,
agreement, instrument or other document or shareholder or similar agreement
providing for such prohibition, breach, default or termination or requiring such
consent is ineffective under applicable law.

                   SECTION 4. REPRESENTATIONS AND WARRANTIES

                  To induce the Collateral Agent and the Secured Parties to make
certain requested modifications to the Transaction Documents, each Grantor
hereby represents and warrants to the Collateral Agent and each Secured Party
that:

         4.1 Title; No Other Liens. Except for the security interest granted to
the Collateral Agent for the ratable benefit of the Secured Parties pursuant to
this Agreement and the other Liens permitted to exist on the Collateral by the
Transaction Documents, such Grantor owns each item of the Collateral free and
clear of any and all Liens or claims of others. No financing statement or other
public notice with respect to all or any part of the Collateral is on file or of
record in any public office, except (a) such as have been filed in favor of the
Collateral Agent, for the ratable benefit of the Secured Parties, pursuant to
this Agreement or (b) as are permitted by the Transaction Documents. For the
avoidance of doubt, it is understood and agreed that any Grantor may, as part of
its business, grant licenses to third parties to use Intellectual Property owned
or developed by a Grantor. For purposes of this Agreement and the other Security
Documents, such licensing activity shall not constitute a "Lien" on such
Intellectual Property. Each of the Collateral Agent and each Secured Party
understands that any such licenses may be exclusive to the applicable licensees,
and such exclusivity provisions may limit the ability of the Collateral Agent to
utilize, sell, lease or transfer the related Intellectual Property or otherwise
realize value from such Intellectual Property pursuant hereto.

         4.2 Perfected First Priority Liens. The security interests granted
pursuant to this Agreement (a) upon completion of the filings and other actions
specified on Schedule 3 (which, in the case of all filings and other documents
referred to on said Schedule, have been delivered to the Collateral Agent in
completed and duly executed form) will constitute valid perfected security
interests in all of the Collateral, except as otherwise provided in Section 3
hereof, in favor of the Collateral Agent, for the ratable benefit of the Secured
Parties, as collateral security for such Grantor's Obligations, enforceable in
accordance with the terms hereof against all creditors of such Grantor and any
Persons purporting to purchase any Collateral from such Grantor and (b) are
prior to all other Liens on the Collateral in existence on the date hereof
except for Liens permitted by the Transaction Documents which have priority over
the Liens on the Collateral by operation of law.

                                       15
<PAGE>

         4.3 Jurisdiction of Organization; Chief Executive Office. On the date
hereof, such Grantor's jurisdiction of organization, identification number from
the jurisdiction of organization (if any), and the location of such Grantor's
chief executive office or sole place of business or principal residence, as the
case may be, are specified on Schedule 4.

         4.4 Inventory and Equipment. On the date hereof, the Inventory and the
Equipment (other than mobile goods) are kept at the locations listed on Schedule
5.

         4.5 Farm Products. None of the Collateral constitutes, or is the
Proceeds of, Farm Products.

         4.6 Investment Property. (a) The shares of Pledged Stock pledged by
such Grantor hereunder constitute all the issued and outstanding shares of all
classes of the Capital Stock of each Issuer owned by such Grantor or, in the
case of Foreign Subsidiary Voting Stock, if less, 65% of the outstanding Foreign
Subsidiary Voting Stock of each relevant Issuer.

         (b) All the shares of the Pledged Stock have been duly and validly
issued and are fully paid and nonassessable.

         (c) Such Grantor is the record and beneficial owner of, and has good
and marketable title to, the Investment Property pledged by it hereunder, free
of any and all Liens or options in favor of, or claims of, any other Person,
except the security interest created by this Agreement or such other Liens
permitted under the Transaction Documents.

         4.7 Receivables. No amount payable to such Grantor under or in
connection with any Receivable is evidenced by any Instrument or Chattel Paper
which has not been delivered to the Collateral Agent.

         4.8 Intellectual Property. (a) Schedule 6 lists all registered
Intellectual Property owned by such Grantor in its own name on the date hereof.

         (b) Except as set forth in Schedule 6, on the date hereof, none of the
Intellectual Property is the subject of any licensing or franchise agreement
pursuant to which such Grantor is the licensor or franchisor.

         4.9 Guarantor Representations. In the case of each Guarantor:

         (a) Such Guarantor (i) is duly organized, validly existing and in good
standing under the laws of the jurisdiction of its organization, (ii) has the
corporate or other organizational power and authority, and the legal right, to
own and operate its property, to lease the property it operates as lessee and to
conduct the business in which it is currently engaged, (iii) is duly qualified
as a foreign corporation or other entity and in good standing under the laws of
each jurisdiction where its ownership, lease or operation of property or the
conduct of its business requires such qualification and (iv) is in compliance
with all Requirements of Law except in the case of subparagraphs (iii) and (iv)
above only, to the extent that the failure to comply therewith could not have a
material adverse effect on the validity or enforceability of (x) the Transaction
Documents, this Agreement or the other Security Documents or (y) the rights or
remedies of the Collateral Agent or the Secured Parties hereunder or thereunder.

                                       16
<PAGE>

         (b) Such Guarantor has the corporate or other organizational power and
authority, and the legal right, to make, deliver and perform the Transaction
Documents and the Security Documents to which it is a party and has taken all
necessary corporate or other organizational action to authorize the execution,
delivery and performance of the Transaction Documents and the Security Documents
to which it is a party. No consent or authorization of, filing with, notice to
or other act by or in respect of, any Governmental Authority or any other Person
is required (except as contemplated in the Security Documents) in connection
with the execution, delivery, performance, validity or enforceability of the
Transaction Documents and the Security Documents to which the Company is a
party. This Agreement has been, and each other Transaction Documents and
Security Document to which it is a party will be, duly executed and delivered on
behalf of such Guarantor. This Agreement constitutes, and each other Transaction
Document and Security Document to which it is a party when executed and
delivered will constitute, a legal, valid and binding obligation of such
Guarantor enforceable against such Guarantor in accordance with its terms,
subject to the effects of bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium and other similar laws relating to or affecting
creditors' rights generally, general equitable principles (whether considered in
a proceeding in equity or at law) and an implied covenant of good faith and fair
dealing.

         (c) The execution, delivery and performance of the Transaction
Documents and the Security Documents to which such Guarantor is a party will not
violate any Requirement of Law of such Guarantor or of any of its Subsidiaries
and will not result in, or require, the creation or imposition of any Lien on
any of its or their respective properties or revenues pursuant to any such
Requirement of Law (other than pursuant to this Agreement).

                              SECTION 5. COVENANTS

                  Each Grantor covenants and agrees with the Collateral Agent
and the Secured Parties that, from and after the date of this Agreement until
the Obligations shall have been paid in full, no Letters of Credit shall be
outstanding and the Revolver Commitments shall have terminated:

         5.1 Delivery of Instruments, Certificated Securities and Chattel Paper.
If any amount payable under or in connection with any of the Collateral shall be
or become evidenced by any Instrument, Certificated Security or Chattel Paper,
such Instrument, Certificated Security or Chattel Paper shall be immediately
delivered to the Collateral Agent, duly indorsed in a manner satisfactory to the
Collateral Agent, to be held as Collateral pursuant to this Agreement.

         5.2 Maintenance of Insurance. (a) Such Grantor will maintain, with
financially sound and reputable companies, insurance policies (i) insuring the
Inventory and Equipment against loss by fire, explosion, theft and such other
casualties as may be reasonably satisfactory to the Collateral Agent and (ii) to
the extent requested by the Collateral Agent, insuring such Grantor, the
Collateral Agent and the Secured Parties against liability for personal injury
and property damage relating to such Inventory and Equipment, such policies to
be in such form and amounts and having such coverage as may be reasonably
satisfactory to the Collateral Agent and the Secured Parties.

                                       17
<PAGE>

         (b) All such insurance shall (i) provide that no cancellation, material
reduction in amount or material change in coverage thereof shall be effective
until at least 30 days after receipt by the Collateral Agent of written notice
thereof, (ii) name the Collateral Agent as insured party or loss payee, (iii) if
reasonably requested by the Collateral Agent, include a breach of warranty
clause and (iv) be reasonably satisfactory in all other respects to the
Collateral Agent.

         (c) Notwithstanding the foregoing, unless an Event of Default shall
have occurred and be continuing, (i) each Grantor shall have the right to adjust
and settle any insurance claims and be entitled to retain any Insurance Proceeds
received by it and (ii) the Collateral Agent shall deliver to the applicable
Grantor any Insurance Proceeds received by it; provided that each Grantor shall
promptly apply all Insurance Proceeds to repair and/or replace the Collateral so
damaged or destroyed in such manner as the Grantor shall determine in its
reasonable business judgment.

         5.3 Payment of Obligations. Such Grantor will pay and discharge or
otherwise satisfy at or before maturity or before they become delinquent, as the
case may be, all taxes, assessments and governmental charges or levies imposed
upon the Collateral or in respect of income or profits therefrom, as well as all
claims of any kind (including, without limitation, claims for labor, materials
and supplies) against or with respect to the Collateral, except that no such
charge need be paid if the amount or validity thereof is currently being
contested in good faith by appropriate proceedings, reserves in conformity with
GAAP with respect thereto have been provided on the books of such Grantor and
such proceedings could not reasonably be expected to result in the sale,
forfeiture or loss of any material portion of the Collateral or any interest
therein.

         5.4 Maintenance of Perfected Security Interest; Further Documentation.
(a) Such Grantor shall maintain the security interest created by this Agreement
as a perfected security interest having at least the priority described in
Section 4.2 and shall defend such security interest against the claims and
demands of all Persons whomsoever (except for the Collateral Agent or the
Secured Parties), subject to the rights of such Grantor under the Transaction
Documents to dispose of the Collateral.

         (b) Such Grantor will furnish to the Collateral Agent and the Secured
Parties from time to time statements and schedules further identifying and
describing the assets and property of such Grantor and such other reports in
connection therewith as the Collateral Agent may reasonably request, all in
reasonable detail.

         (c) At any time and from time to time, upon the written request of the
Collateral Agent, and at the sole expense of such Grantor, such Grantor will
promptly and duly execute and deliver, and have recorded, such further
instruments and documents and take such further actions as the Collateral Agent
may reasonably request for the purpose of obtaining or preserving the full
benefits of this Agreement and of the rights and powers herein granted,
including, without limitation, (i) filing any financing or continuation
statements under the Uniform Commercial Code (or other similar laws) in effect
in any jurisdiction with respect to the security interests created hereby and
(ii) in the case of Investment Property, Deposit Accounts, and any other
relevant Collateral, taking any actions necessary to enable the Collateral Agent
to obtain "control" (within the meaning of the applicable Uniform Commercial
Code) with respect thereto.

                                       18
<PAGE>

         5.5 Changes in Locations, Name, etc. Such Grantor will not, except upon
15 days' prior written notice to the Collateral Agent and delivery to the
Collateral Agent of (a) all additional executed financing statements and other
documents reasonably requested by the Collateral Agent to maintain the validity,
perfection and priority of the security interests provided for herein and (b) if
applicable, a written supplement to Schedule 5 showing any additional location
at which Inventory or Equipment shall be kept:

         (i) change its jurisdiction of organization from that referred to in
Section 4.3; or

         (ii) change its name.

         5.6 Notices. Such Grantor will advise the Collateral Agent and the
Secured Parties promptly, in reasonable detail, of:

         (a) any Lien (other than security interests created hereby or Liens
permitted under the Transaction Documents) on any of the Collateral which would
adversely affect the ability of the Collateral Agent to exercise any of its
remedies hereunder; and

         (b) of the occurrence of any other event which could reasonably be
expected to have a material adverse effect on the security interests created
hereby.

         5.7 Investment Property. (a) If such Grantor shall become entitled to
receive or shall receive any certificate (including, without limitation, any
certificate representing a dividend or a distribution in connection with any
reclassification, increase or reduction of capital or any certificate issued in
connection with any reorganization), option or rights in respect of the Capital
Stock of any Issuer, whether in addition to, in substitution of, as a conversion
of, or in exchange for, any shares of the Pledged Stock, or otherwise in respect
thereof, such Grantor shall accept the same as the agent of the Collateral Agent
and the Secured Parties, hold the same in trust for the Collateral Agent and the
Secured Parties and deliver the same forthwith to the Collateral Agent in the
exact form received, duly indorsed by such Grantor to the Collateral Agent, if
required, together with an undated stock power covering such certificate duly
executed in blank by such Grantor to be held by the Collateral Agent, subject to
the terms hereof, as additional collateral security for the Obligations. After
the occurrence of an Event of Default, any sums paid upon or in respect of the
Investment Property upon the liquidation or dissolution of any Issuer shall be
paid over to the Collateral Agent to be held by it hereunder as additional
collateral security for the Obligations, and in case any distribution of capital
shall be made on or in respect of the Investment Property or any property shall
be distributed upon or with respect to the Investment Property pursuant to the
recapitalization or reclassification of the capital of any Issuer or pursuant to
the reorganization thereof after the occurrence of an Event of Default, the
property so distributed shall, unless otherwise subject to a perfected security
interest in favor of the Collateral Agent, be delivered to the Collateral Agent
to be held by it hereunder as additional collateral security for the
Obligations. If any sums of money or property so paid or distributed in respect
of the Investment Property shall be received by such Grantor after the
occurrence of an Event of Default, such Grantor shall, until such money or
property is paid or delivered to the Collateral Agent, hold such money or
property in trust for the Collateral Agent and the Secured Parties, segregated
from other funds of such Grantor, as additional collateral security for the
Obligations.

                                       19
<PAGE>

         (b) Without the prior written consent of the Collateral Agent, such
Grantor will not (i) vote to enable, or take any other action to permit, any
Issuer to issue any Capital Stock of any nature or to issue any other securities
convertible into or granting the right to purchase or exchange for any Capital
Stock of any nature of any Issuer, unless such additional Capital Stock is
pledged to the Collateral Agent, (ii) sell, assign, transfer, exchange, or
otherwise dispose of, or grant any option with respect to, the Investment
Property or Proceeds thereof (except pursuant to a transaction expressly
permitted by the Transaction Documents), (iii) create, incur or permit to exist
any Lien or option in favor of, or any claim of any Person with respect to, any
of the Investment Property or Proceeds thereof, or any interest therein, except
for the security interests created by this Agreement or as expressly permitted
by the Transaction Documents or (iv) enter into any agreement or undertaking
restricting the right or ability of (x) such Grantor to grant a Lien on any of
the Investment Property in favor of the Collateral Agent or (y) the Collateral
Agent to sell, assign or transfer any of the Investment Property or Proceeds
thereof after the occurrence of an Event of Default.

         (c) In the case of each Grantor which is an Issuer, such Issuer agrees
that (i) it will be bound by the terms of this Agreement relating to the
Investment Property issued by it and will comply with such terms insofar as such
terms are applicable to it, (ii) it will notify the Collateral Agent promptly in
writing of the occurrence of any of the events described in Section 5.7(a) with
respect to the Investment Property issued by it and (iii) the terms of Sections
6.3(c) and 6.7 shall apply to it, mutatis mutandis, with respect to all actions
that may be required of it pursuant to Section 6.3(c) or 6.7 with respect to the
Investment Property issued by it.

         5.8 Intellectual Property. (a) Such Grantor (either itself or through
licensees) will (i) continue to use each material Trademark on each and every
trademark class of goods applicable to its current line as reflected in its
current catalogs, brochures and price lists in order to maintain such Trademark
in full force free from any claim of abandonment for non-use other than those
which have been or are hereafter abandoned pursuant to the reasonable business
judgment of the applicable Grantor, (ii) use such Trademark with the appropriate
notice of registration and all other notices and legends required by applicable
Requirements of Law, (iii) not adopt or use any mark which is confusingly
similar or a colorable imitation of such Trademark unless the Collateral Agent,
for the ratable benefit of the Secured Parties, shall obtain a perfected
security interest in such mark pursuant to this Agreement, and (iv) not (and not
permit any licensee or sublicensee thereof to) do any act or knowingly omit to
do any act whereby such Trademark may become invalidated or impaired in any way
unless such Grantor shall do such act or knowingly omit to do such act in the
reasonable business judgment of the applicable Grantor.

         (b) Such Grantor (either itself or through licensees) will not do any
act, or omit to do any act, whereby any material Patent may become forfeited,
abandoned or dedicated to the public.

         (c) Such Grantor (either itself or through licensees) (i) will employ
each material Copyright and (ii) will not (and will not permit any licensee or
sublicensee thereof to) do any act or knowingly omit to do any act whereby any
material portion of the Copyrights may become invalidated or otherwise impaired.
Such Grantor will not (either itself or through licensees) do any act whereby
any material portion of the Copyrights may fall into the public domain.

                                       20
<PAGE>

         (d) Such Grantor (either itself or through licensees) will not do any
act that knowingly uses any material Intellectual Property to infringe the
intellectual property rights of any other Person.

         (e) Such Grantor will notify the Collateral Agent and the Secured
Parties immediately if it knows, or has reason to know, that any application or
registration relating to any material Intellectual Property may become
forfeited, abandoned or dedicated to the public, or of any adverse determination
or development (including, without limitation, the institution of, or any such
determination or development in, any proceeding in the United States Patent and
Trademark Office or the United States Copyright Office) regarding such Grantor's
ownership of, or the validity of, any material Intellectual Property or such
Grantor's right to register the same or to own and maintain the same.

         (f) Whenever such Grantor, either by itself or through any agent,
employee, licensee or designee, shall file an application for the registration
of any Intellectual Property with the United States Patent and Trademark Office
or the United States Copyright Office, such Grantor shall report such filing to
the Collateral Agent within five Business Days after the last day of the fiscal
quarter in which such filing occurs. Upon request of the Collateral Agent, such
Grantor shall execute and deliver, and have recorded, any and all agreements,
instruments, documents, and papers as the Collateral Agent may request to
evidence the Collateral Agent's and the Secured Parties' security interest in
any Copyright, Patent or Trademark and the goodwill and general intangibles of
such Grantor relating thereto or represented thereby.

         (g) Such Grantor will take all reasonable and necessary steps,
including, without limitation, in any proceeding before the United States Patent
and Trademark Office or the United States Copyright Office, to maintain and
pursue each application (and to obtain the relevant registration) and to
maintain each registration of the material Intellectual Property, including,
without limitation, filing of applications for renewal, affidavits of use and
affidavits of incontestability.

         (h) In the event that any material Intellectual Property is infringed,
misappropriated or diluted by a third party, such Grantor shall (i) take such
actions as such Grantor shall reasonably deem appropriate under the
circumstances to protect such Intellectual Property and (ii) if such
Intellectual Property is of material economic value, promptly notify the
Collateral Agent after it learns thereof and sue for infringement,
misappropriation or dilution, to seek injunctive relief where appropriate and to
recover any and all damages for such infringement, misappropriation or dilution
in accordance with such Grantor's reasonable business judgment.

         5.9 Additional Collateral, etc. (a) With respect to any property
acquired after the date hereof by any Grantor (other than (x) property of a
Grantor which requires action outside the United States to perfect a security
interest therein under United States law, (y) any property described in
paragraph (b), (c) or (d) below and (z) any property subject to a Lien expressly
permitted by Section 5.17(c) of the Revolver Credit Agreement) as to which the
Collateral Agent, for the benefit of the Secured Parties, does not have a
perfected Lien, such Grantor shall promptly (i) execute and deliver to the
Collateral Agent such amendments to this Agreement or such other documents as
the Collateral Agent deems necessary or advisable to grant to the Collateral
Agent, for the benefit of the Secured Parties, a security interest in such
property and

                                       21
<PAGE>

(ii) take all actions necessary or advisable to grant to the Collateral Agent,
for the benefit of the Secured Parties, a perfected first priority security
interest in such property, including the filing of Uniform Commercial Code
financing statements in such jurisdictions as may be required by this Agreement
or by law or as may be requested by the Collateral Agent.

         (b) With respect to any fee interest in any real property having a
value (together with improvements thereof) of at least $500,000 acquired after
the date hereof by any Grantor (other than (x) any such real property located
outside the United States of America and (y) any such real property subject to a
Lien expressly permitted by the Transaction Documents), such Grantor shall
promptly (i) execute and deliver a first priority Mortgage, in favor of the
Collateral Agent, for the benefit of the Secured Parties, covering such real
property, (ii) if requested by the Collateral Agent, provide the Secured Parties
with (x) title and extended coverage insurance covering such real property in an
amount at least equal to the purchase price of such real property (or such other
amount as shall be reasonably specified by the Collateral Agent) as well as a
current ALTA survey thereof, together with a surveyor's certificate and (y) any
consents or estoppels reasonably deemed necessary or advisable by the Collateral
Agent in connection with such Mortgage, each of the foregoing in form and
substance reasonably satisfactory to the Collateral Agent and (iii) if requested
by the Collateral Agent, deliver to the Collateral Agent legal opinions relating
to the matters described above, which opinions shall be in form and substance
similar in scope to those delivered to the Collateral Agent on the date hereof
and which are otherwise reasonably satisfactory to the Collateral Agent.

         (c) With respect to any new Significant Domestic Subsidiary created or
acquired after the date hereof by any Grantor (which, for the purposes of this
paragraph (c), shall include any existing Subsidiary that ceases to be an
Excluded Domestic Subsidiary), such Grantor shall promptly (i) execute and
deliver to the Collateral Agent such amendments to this Agreement as the
Collateral Agent deems necessary or advisable to grant to the Collateral Agent,
for the benefit of the Secured Parties, a perfected first priority security
interest in the Capital Stock of such new Subsidiary that is owned by any
Grantor, (ii) deliver to the Collateral Agent the certificates representing such
Capital Stock, together with undated stock powers, in blank, executed and
delivered by a duly authorized officer of the relevant Grantor, (iii) cause such
new Subsidiary (A) to become a party to this Agreement, (B) to take such actions
necessary or advisable to grant to the Collateral Agent for the benefit of the
Secured Parties a perfected first priority security interest in the Collateral
described in this Agreement with respect to such new Subsidiary, including the
filing of Uniform Commercial Code financing statements in such jurisdictions as
may be required by this Agreement or by law or as may be requested by the
Collateral Agent and (C) to deliver to the Collateral Agent a Secretary's
certificate of such Subsidiary, in form and substance reasonably satisfactory to
the Collateral Agent, with appropriate insertions and attachments, and (iv) if
requested by the Collateral Agent, deliver to the Collateral Agent legal
opinions relating to the matters described above, which opinions shall be in
form and substance similar in scope to those delivered to the Collateral Agent
on the date hereof and which are otherwise reasonably satisfactory to the
Collateral Agent.

         (d) With respect to any new Foreign Subsidiary (other than a Subsidiary
of a Foreign Subsidiary) created or acquired after the date hereof by any
Grantor, such Grantor shall promptly (i) execute and deliver to the Collateral
Agent such amendments to this Agreement as the Collateral Agent deems necessary
or advisable to grant to the Collateral Agent, for the benefit of

                                       22
<PAGE>

the Secured Parties, a perfected first priority security interest in the Capital
Stock of such new Subsidiary that is owned by any such Grantor (provided that in
no event shall more than 65% of the total outstanding voting Capital Stock of
any such new Subsidiary be required to be so pledged), (ii) deliver to the
Collateral Agent the certificates representing such Capital Stock, together with
undated stock powers, in blank, executed and delivered by a duly authorized
officer of the relevant Grantor, and take such other action as may be necessary
or, in the opinion of the Collateral Agent, desirable to perfect the Collateral
Agent's security interest therein, and (iii) if requested by the Collateral
Agent, deliver to the Collateral Agent legal opinions relating to the matters
described above, which opinions shall be in form and substance similar in scope
to those delivered to the Collateral Agent on the date hereof and which are
otherwise reasonably satisfactory to the Collateral Agent.

         5.10 Company Covenants. (a) The Company agrees that it shall deliver or
cause its Subsidiaries to deliver to the Collateral Agent the following items
after the date hereof:

         (i) no later than the date that is 60 days after the date hereof, all
certificates or other instruments representing ownership interest in the Pledged
Stock on Schedule 2 to the extent that such Pledged Stock is represented by a
certificate or other such instrument, along with a Supplement to such Schedule
2; and

         (b) The Company agrees that it shall complete or cause its Subsidiaries
to complete the following actions after the date hereof:

         (i) no later than the date that is 60 days after the date hereof,
quitclaim to the appropriate parties, at its sole cost and expense, all of its
right, title and interest in and to those certain portions of its property
located in Mt. Airy, North Carolina containing right-of-ways, all in accordance
with all applicable zoning and subdivision requirements.

         (c) The Company agrees that it shall complete the following in a timely
manner, it being understood that the failure to complete the following shall not
result in an Event of Default so long as the Company uses its reasonable
efforts:

         (i) have The City of Alexander City, Alabama, quitclaim all of its
rights, title and interest in and to those certain rights-of-way owned by the
City and lying and being within the property owned by the Company and known as
the Alexander City Main Campus;

         (ii) have the Industrial Development Board of the City of Montgomery
(the "IDB"), subordinate the IDB's fee title interest in and to the property
known as the Montgomery Distribution Center and more particularly described in
Exhibit A to that certain Alabama Leasehold Mortgage, Security Agreement and
Assignment of Rents and Leases between the Company and Collateral Agent; and

         (iii) secure the release of record of the following Deeds of Trust:

                  (A)      Deed of Trust by and among Quality Mills, Inc. as
                           "Grantor" and J. Thomas Dunn, Jr., as "Trustee" for
                           Northwestern Bank as "Beneficiary", securing
                           $6,500,000.00 and filed for record on August 21, 1980
                           in the Records of the Register of Deeds for Surry
                           County, N.C., in Book 350, page 998;

                                       23
<PAGE>

                  (B)      Deed of Trust by and between Quality Mills, Inc. as
                           "Grantor" and Wallace C. Tyser, Jr., as "Trustee" for
                           BarClaysAmerican/Commercial, Inc. as "Beneficiary",
                           securing $3,000,000.00 and filed for record on
                           September 5, 1980 in the Records of the Register of
                           Deeds for Surry County, N.C., in Book 351, page 751;
                           and

                  (C)      Deed of Trust by and among Quality Mills, Inc. and
                           Reed Island Development Corporation, collectively as
                           "Grantors", and Wallace C. Tyser, Jr. and Dwight E.
                           Compton, collectively as "Trustees" for
                           BarClaysAmerican/Commercial, Inc. as "Note Holder or
                           Beneficiary", securing $1,500,000.00 and filed for
                           record on February 13, 1984 in Book 401, page 967,
                           aforementioned Records, as amended by that certain
                           Amendment to Deed of Trust filed for record on March
                           28, 1984 in the Records of the Register of Deeds for
                           Surry County, N.C., in Book 403, page 25;

                         SECTION 6. REMEDIAL PROVISIONS

         6.1 Certain Matters Relating to Receivables. (a) The Collateral Agent
hereby authorizes each Grantor to collect such Grantor's Receivables, subject to
the Collateral Agent's direction and control, including, with respect to any
Receivables for which the obligor thereon is a Governmental Authority, any
direction to comply with the Assignment of Claims Act of 1940 or such relevant
or analogous state law or regulation in respect of such Receivables, and the
Collateral Agent may curtail or terminate said authority at any time after the
occurrence and during the continuance of an Event of Default. If required by the
Collateral Agent at any time after the occurrence and during the continuance of
an Event of Default, any payments of Receivables, when collected by any Grantor,
(i) shall be forthwith (and, in any event, within two Business Days) deposited
by such Grantor in the exact form received, duly indorsed by such Grantor to the
Collateral Agent if required, in the Collateral Reserve Account, subject to
withdrawal by the Collateral Agent for the account of the Secured Parties only
as provided in Section 6.5, and (ii) until so turned over, shall be held by such
Grantor in trust for the Collateral Agent and the Secured Parties, segregated
from other funds of such Grantor. Each such deposit of Proceeds of Receivables
shall be accompanied by a report identifying in reasonable detail the nature and
source of the payments included in the deposit.

         (b) At the Collateral Agent's request, upon the occurrence of an Event
of Default each Grantor shall deliver to the Collateral Agent all original and
other documents evidencing, and relating to, the agreements and transactions
which gave rise to the Receivables, including, without limitation, all original
orders, invoices and shipping receipts.

         6.2 Communications with Obligors; Grantors Remain Liable. (a) The
Collateral Agent in its own name or in the name of others may at any time after
the occurrence and during the continuance of an Event of Default communicate
with obligors under the Receivables to verify with them to the Collateral
Agent's satisfaction the existence, amount and terms of any Receivables.

                                       24
<PAGE>

         (b) Upon the request of the Collateral Agent at any time after the
occurrence and during the continuance of an Event of Default, each Grantor shall
notify obligors on the Receivables that the Receivables have been assigned to
the Collateral Agent for the ratable benefit of the Secured Parties and that
payments in respect thereof shall be made directly to the Collateral Agent.

         (c) Anything herein to the contrary notwithstanding, each Grantor shall
remain liable under the Receivables to observe and perform all the conditions
and obligations to be observed and performed by it thereunder, all in accordance
with the terms of any agreement giving rise thereto. Neither the Collateral
Agent nor any Secured Party shall have any obligation or liability under any
Receivable (or any agreement giving rise thereto) or Contract by reason of or
arising out of this Agreement or the receipt by the Collateral Agent or any
Secured Party of any payment relating thereto, nor shall the Collateral Agent or
any Secured Party be obligated in any manner to perform any of the obligations
of any Grantor under or pursuant to any Receivable (or any agreement giving rise
thereto) or Contract, to make any payment, to make any inquiry as to the nature
or the sufficiency of any payment received by it or as to the sufficiency of any
performance by any party thereunder, to present or file any claim, to take any
action to enforce any performance or to collect the payment of any amounts which
may have been assigned to it or to which it may be entitled at any time or
times.

         6.3 Pledged Stock. (a) Unless an Event of Default shall have occurred
and be continuing and the Collateral Agent shall have given notice to the
relevant Grantor of the Collateral Agent's intent to exercise its corresponding
rights pursuant to Section 6.3(b), each Grantor shall be permitted to receive
all cash dividends paid in respect of the Pledged Stock and all payments made in
respect of the Pledged Notes, in each case paid in the normal course of business
of the relevant Issuer and consistent with past practice, to the extent
permitted in the Transaction Documents, and to exercise all voting and corporate
or other organizational rights with respect to the Investment Property;
provided, however, that no vote shall be cast or corporate or other
organizational right exercised or other action taken which, in the Collateral
Agent's reasonable judgment, would impair the Collateral or which would be
inconsistent with or result in any violation of any provision of the Transaction
Documents, this Agreement or any other Security Document.

         (b) If an Event of Default shall occur and be continuing and the
Collateral Agent shall give prior written notice of its intent to exercise such
rights to the relevant Grantor or Grantors, (i) the Collateral Agent shall have
the right to receive any and all cash dividends, payments or other Proceeds paid
in respect of the Investment Property and make application thereof to the
Obligations in the order specified in the Intercreditor Agreement, and (ii) any
or all of the Investment Property shall be registered in the name of the
Collateral Agent or its nominee, and the Collateral Agent or its nominee may
thereafter exercise (x) all voting, corporate and other rights pertaining to
such Investment Property at any meeting of shareholders of the relevant Issuer
or Issuers or otherwise and (y) any and all rights of conversion, exchange and
subscription and any other rights, privileges or options pertaining to such
Investment Property as if it were the absolute owner thereof (including, without
limitation, the right to exchange at its discretion any and all of the
Investment Property upon the merger, consolidation, reorganization,
recapitalization or other fundamental change in the corporate or other
organizational structure of any Issuer, or upon the exercise by any Grantor or
the Collateral Agent of any right, privilege or

                                       25
<PAGE>
option pertaining to such Investment Property, and in connection therewith, the
right to deposit and deliver any and all of the Investment Property with any
committee, depositary, transfer agent, registrar or other designated agency upon
such terms and conditions as the Collateral Agent may determine), all without
liability except to account for property actually received by it, but the
Collateral Agent shall have no duty to any Grantor to exercise any such right,
privilege or option and shall not be responsible for any failure to do so or
delay in so doing.

         (c) Each Grantor hereby authorizes and instructs each Issuer of any
Investment Property pledged by such Grantor hereunder to (i) comply with any
instruction received by it from the Collateral Agent in writing that (x) states
that an Event of Default has occurred and is continuing and (y) is otherwise in
accordance with the terms of this Agreement, without any other or further
instructions from such Grantor, and each Grantor agrees that each Issuer shall
be fully protected in so complying, and (ii) after receipt of such instruction
unless otherwise expressly permitted hereby, pay any dividends or other payments
with respect to the Investment Property directly to the Collateral Agent.

         6.4 Intellectual Property. If an Event of Default shall occur and be
continuing, each Grantor hereby agrees to grant to the Collateral Agent a
non-exclusive, assignable, sublicenseable right and license to use all such
Intellectual Property to the extent necessary or desirable to complete
work-in-progress and to facilitate the sale (including advertising and
promotional activities related thereto) of all Collateral in the possession or
control of such Grantor as of the date of the Event of Default (or for which
such Grantor has executed a binding agreement on or before the Event of Default
to accept delivery) bearing or subject to such licensed Intellectual Property.

         6.5 Proceeds to be Turned Over To Collateral Agent. In addition to the
rights of the Collateral Agent and the Secured Parties specified in Section 6.1
with respect to payments of Receivables, if an Event of Default shall occur and
be continuing, all Proceeds received by any Grantor consisting of cash, checks
and other near-cash items shall be held by such Grantor in trust for the
Collateral Agent and the Secured Parties, segregated from other funds of such
Grantor, and shall, forthwith upon receipt by such Grantor, be turned over to
the Collateral Agent in the exact form received by such Grantor (duly indorsed
by such Grantor to the Collateral Agent, if required). All Proceeds received by
the Collateral Agent hereunder shall be held by the Collateral Agent in the
Collateral Reserve Account pursuant to the Intercreditor Agreement. All Proceeds
while held by the Collateral Agent in the Collateral Reserve Account (or by such
Grantor in trust for the Collateral Agent and the Secured Parties) shall
continue to be held as collateral security for all the Obligations and shall not
constitute payment thereof until applied as provided in Section 6.5.

         6.6 Application of Proceeds. At the intervals specified in the
Intercreditor Agreement, the Collateral Agent may apply all or any part of
Proceeds constituting Collateral, whether or not held in the Collateral Reserve
Account, in payment of the Obligations in the order specified in the
Intercreditor Agreement, and any part of such funds which the Collateral Agent
elects not so to apply and deems not required as collateral security for the
Obligations shall be paid over from time to time by the Collateral Agent to the
Company or to whomsoever may be lawfully entitled to receive the same. Any
balance of such Proceeds remaining after the Obligations shall have been paid in
full, no Letters of Credit shall be outstanding and the Revolver Commitments
shall

                                       26
<PAGE>

have terminated shall be paid over to the Company or to whomsoever may be
lawfully entitled to receive the same.

         6.7 Code and Other Remedies. If an Event of Default shall occur and be
continuing, the Collateral Agent, on behalf of the Secured Parties, may
exercise, in addition to all other rights and remedies granted to them in this
Agreement and in any other instrument or agreement securing, evidencing or
relating to the Obligations, including the Intercreditor Agreement, all rights
and remedies of a secured party under the UCC or any other applicable law.
Without limiting the generality of the foregoing, and in accordance with the
terms of the Intercreditor Agreement, the Collateral Agent, without demand of
performance or other demand, presentment, protest, advertisement or notice of
any kind (except any notice required by law referred to below) to or upon any
Grantor or any other Person (all and each of which demands, defenses,
advertisements and notices are hereby waived), may in such circumstances
forthwith collect, receive, appropriate and realize upon the Collateral, or any
part thereof, and/or may forthwith sell, lease, assign, give option or options
to purchase, or otherwise dispose of and deliver the Collateral or any part
thereof (or contract to do any of the foregoing), in one or more parcels at
public or private sale or sales, at any exchange, broker's board or office of
the Collateral Agent or any Secured Party or elsewhere upon such terms and
conditions as it may deem advisable and at such prices as it may deem best, for
cash or on credit or for future delivery without assumption of any credit risk.
The Collateral Agent or any Secured Party shall have the right upon any such
public sale or sales, and, to the extent permitted by law, upon any such private
sale or sales, to purchase the whole or any part of the Collateral so sold, free
of any right or equity of redemption in any Grantor, which right or equity is
hereby waived and released. Each Grantor further agrees, at the Collateral
Agent's request, to assemble the Collateral and make it available to the
Collateral Agent at places which the Collateral Agent shall reasonably select,
whether at such Grantor's premises or elsewhere. The Collateral Agent shall
apply the net proceeds of any action taken by it pursuant to this Section 6.6,
after deducting all reasonable costs and expenses of every kind incurred in
connection therewith or incidental to the care or safekeeping of any of the
Collateral or in any way relating to the Collateral or the rights of the
Collateral Agent and the Secured Parties hereunder, including, without
limitation, reasonable attorneys' fees and disbursements actually incurred, to
the payment in whole or in part of the Obligations, in such order as the
Collateral Agent may elect, and only after such application and after the
payment by the Collateral Agent of any other amount required by any provision of
law, including, without limitation, Section 9-615(a)(3) of the UCC, need the
Collateral Agent account for the surplus, if any, to any Grantor. If any notice
of a proposed sale or other disposition of Collateral shall be required by law,
such notice shall be deemed reasonable and proper if given at least 10 days
before such sale or other disposition.

         6.8 Certain Restrictions on the Public Sale of Pledged Stock. Each
Grantor recognizes that the Collateral Agent may be unable to effect a public
sale of any or all the Pledged Stock, by reason of certain prohibitions
contained in the Securities Act and applicable state securities laws or
otherwise, and may be compelled to resort to one or more private sales thereof
to a restricted group of purchasers which will be obliged to agree, among other
things, to acquire such securities for their own account for investment and not
with a view to the distribution or resale thereof. Each Grantor acknowledges and
agrees that any such private sale may result in prices and other terms less
favorable than if such sale were a public sale and, notwithstanding such
circumstances, agrees that any such private sale shall be deemed to have been
made in a

                                       27
<PAGE>

commercially reasonable manner. The Collateral Agent shall be under no
obligation to delay a sale of any of the Pledged Stock for the period of time
necessary to permit the Issuer thereof to register such securities for public
sale under the Securities Act, or under applicable state securities laws, even
if such Issuer would agree to do so.

         6.9 Deficiency. Each Grantor shall remain liable for any deficiency if
the proceeds of any sale or other disposition of the Collateral are insufficient
to pay its Obligations and the fees and disbursements of any attorneys employed
by the Collateral Agent or any Secured Party to collect such deficiency.

                        SECTION 7. THE COLLATERAL AGENT

         7.1 Collateral Agent's Appointment as Attorney-in-Fact, etc. (a) Each
Grantor hereby irrevocably constitutes and appoints the Collateral Agent and any
officer or agent thereof, with full power of substitution, as its true and
lawful attorney-in-fact with full irrevocable power and authority in the place
and stead of such Grantor and in the name of such Grantor or in its own name,
for the purpose of carrying out the terms of this Agreement, to take any and all
appropriate action and to execute any and all documents and instruments which
may be necessary or desirable to accomplish the purposes of this Agreement, and,
without limiting the generality of the foregoing, each Grantor hereby gives the
Collateral Agent the power and right, on behalf of such Grantor, without notice
to or assent by such Grantor, to do any or all of the following:

         (i) in the name of such Grantor or its own name, or otherwise,
     take possession of and indorse and collect any checks, drafts, notes,
     acceptances or other instruments for the payment of moneys due under any
     Receivable or Contract or with respect to any other Collateral and file any
     claim or take any other action or proceeding in any court of law or equity
     or otherwise deemed appropriate by the Collateral Agent for the purpose of
     collecting any and all such moneys due under any Receivable or Contract or
     with respect to any other Collateral whenever payable;

         (ii) in the case of any Intellectual Property, execute and deliver, and
     have recorded, any and all agreements, instruments, documents and papers as
     the Collateral Agent may request to evidence the Collateral Agent's and the
     Secured Parties' security interest in such Intellectual Property and the
     goodwill and general intangibles of such Grantor relating thereto or
     represented thereby;

         (iii) pay or discharge taxes and Liens levied or placed on or
     threatened against the Collateral, effect any repairs or any insurance
     called for by the terms of this Agreement and pay all or any part of the
     premiums therefor and the costs thereof;

         (iv) execute, in connection with any sale provided for in Section 6.6
     or 6.7, any indorsements, assignments or other instruments of conveyance or
     transfer with respect to the Collateral; and

         (v) (1) direct any party liable for any payment under any of the
     Collateral to make payment of any and all moneys due or to become due
     thereunder directly to the Collateral

                                       28
<PAGE>

     Agent or as the Collateral Agent shall direct; (2) ask or demand for,
     collect, and receive payment of and receipt for, any and all moneys, claims
     and other amounts due or to become due at any time in respect of or arising
     out of any Collateral; (3) sign and indorse any invoices, freight or
     express bills, bills of lading, storage or warehouse receipts, drafts
     against debtors, assignments, verifications, notices and other documents in
     connection with any of the Collateral; (4) commence and prosecute any
     suits, actions or proceedings at law or in equity in any court of competent
     jurisdiction to collect the Collateral or any portion thereof and to
     enforce any other right in respect of any Collateral; (5) defend any suit,
     action or proceeding brought against such Grantor with respect to any
     Collateral; (6) settle, compromise or adjust any such suit, action or
     proceeding and, in connection therewith, give such discharges or releases
     as the Collateral Agent may deem appropriate; (7) assign any Copyright,
     Patent or Trademark (along with the goodwill of the business to which any
     such Copyright, Patent or Trademark pertains), throughout the world for
     such term or terms, on such conditions, and in such manner, as the
     Collateral Agent shall in its sole discretion determine; and (8) generally,
     sell, transfer, pledge and make any agreement with respect to or otherwise
     deal with any of the Collateral as fully and completely as though the
     Collateral Agent were the absolute owner thereof for all purposes, and do,
     at the Collateral Agent's option and such Grantor's expense, at any time,
     or from time to time, all acts and things which the Collateral Agent deems
     necessary to protect, preserve or realize upon the Collateral and the
     Collateral Agent's and the Secured Parties' security interests therein and
     to effect the intent of this Agreement, all as fully and effectively as
     such Grantor might do.

     Anything in this Section 7.1(a) to the contrary notwithstanding, the
Collateral Agent agrees that it will not exercise any rights under the power of
attorney provided for in this Section 7.1(a) unless an Event of Default shall
have occurred and be continuing.

         (b) If any Grantor fails to perform or comply with any of its
agreements contained herein, the Collateral Agent, at its option, but without
any obligation so to do, may perform or comply, or otherwise cause performance
or compliance, with such agreement.

         (c) The expenses of the Collateral Agent incurred in connection with
actions undertaken as provided in this Section 7.1, together with interest
thereon at a rate per annum equal to the highest rate per annum at which
interest would then be payable on any category of past due Base Rate Loans under
the Revolver Credit Agreement, from the date of payment by the Collateral Agent
to the date reimbursed by the relevant Grantor, shall be payable by such Grantor
to the Collateral Agent on demand.

         (d) Each Grantor hereby ratifies all that said attorneys shall lawfully
do or cause to be done by virtue hereof. All powers, authorizations and agencies
contained in this Agreement are coupled with an interest and are irrevocable
until this Agreement is terminated and the security interests created hereby are
released.

         7.2 Duty of Collateral Agent. The Collateral Agent's sole duty with
respect to the custody, safekeeping and physical preservation of the Collateral
in its possession, under Section 9-207 of the UCC or otherwise, shall be to deal
with it in the same manner as the Collateral Agent deals with similar property
for its own account. Neither the Collateral Agent, any Secured Party nor any of
their respective officers, directors, employees or agents shall be liable for
failure

                                       29
<PAGE>

to demand, collect or realize upon any of the Collateral or for any delay in
doing so or shall be under any obligation to sell or otherwise dispose of any
Collateral upon the request of any Grantor or any other Person or to take any
other action whatsoever with regard to the Collateral or any part thereof. The
powers conferred on the Collateral Agent and the Secured Parties hereunder are
solely to protect the Collateral Agent's and the Secured Parties' interests in
the Collateral and shall not impose any duty upon the Collateral Agent or any
Secured Party to exercise any such powers. The Collateral Agent and the Secured
Parties shall be accountable only for amounts that they actually receive as a
result of the exercise of such powers, and neither they nor any of their
officers, directors, employees or agents shall be responsible to any Grantor for
any act or failure to act hereunder, except for their own gross negligence or
willful misconduct.

         7.3 Execution of Financing Statements. Pursuant to any applicable law,
each Grantor authorizes the Collateral Agent to file or record financing
statements and other filing or recording documents or instruments with respect
to the Collateral without the signature of such Grantor in such form and in such
offices as the Collateral Agent determines appropriate to perfect the security
interests of the Collateral Agent under this Agreement. Each Grantor authorizes
the Collateral Agent to use the collateral description "all personal property to
the extent located in the United States" in any such financing statements. Each
Grantor hereby ratifies and authorizes the filing by the Collateral Agent of any
financing statement with respect to the Collateral made prior to the date
hereof.

         7.4 Authority of Collateral Agent. Each Grantor acknowledges that the
rights and responsibilities of the Collateral Agent under this Agreement with
respect to any action taken by the Collateral Agent or the exercise or
non-exercise by the Collateral Agent of any option, voting right, request,
judgment or other right or remedy provided for herein or resulting or arising
out of this Agreement shall, as between the Collateral Agent and the Secured
Parties, be governed by the Intercreditor Agreement and by such other agreements
with respect thereto as may exist from time to time among them, but, as between
the Collateral Agent and the Grantors, the Collateral Agent shall be
conclusively presumed to be acting as agent for the Secured Parties with full
and valid authority so to act or refrain from acting, and no Grantor shall be
under any obligation, or entitlement, to make any inquiry respecting such
authority and such Grantor shall be entitled to rely upon any releases,
certificates and waivers executed by the Collateral Agent without liability to
the Secured Parties.

                            SECTION 8. MISCELLANEOUS

         8.1 Amendments in Writing. None of the terms or provisions of this
Agreement may be waived, amended, supplemented or otherwise modified except by a
signed written agreement by and among each Grantor and the Collateral Agent.

         8.2 Notices. All notices, requests and demands to or upon the
Collateral Agent or any Grantor hereunder shall be effected in the manner
provided for in Section 22 of the Intercreditor Agreement; provided that any
such notice, request or demand to or upon any Grantor shall be addressed to such
Grantor at its notice address set forth on Schedule 1.

                                       30
<PAGE>
         8.3 No Waiver by Course of Conduct; Cumulative Remedies. Neither the
Collateral Agent nor any Secured Party shall by any act (except by a written
instrument pursuant to Section 8.1), delay, indulgence, omission or otherwise be
deemed to have waived any right or remedy hereunder or to have acquiesced in any
Actionable Default or Event of Default. No failure to exercise, nor any delay in
exercising, on the part of the Collateral Agent or any Secured Party, any right,
power or privilege hereunder shall operate as a waiver thereof. No single or
partial exercise of any right, power or privilege hereunder shall preclude any
other or further exercise thereof or the exercise of any other right, power or
privilege. A waiver by the Collateral Agent or any Secured Party of any right or
remedy hereunder on any one occasion shall not be construed as a bar to any
right or remedy which the Collateral Agent or such Secured Party would otherwise
have on any future occasion. The rights and remedies herein provided are
cumulative, may be exercised singly or concurrently and are not exclusive of any
other rights or remedies provided by law.

         8.4 Expenses; Indemnification. (a) Each Grantor agrees (i) to pay or
reimburse the Collateral Agent for all its out-of-pocket costs and expenses
incurred in connection with the development, preparation and execution of, and
any amendment, supplement or modification to, this Agreement and the other
Security Documents and any other documents prepared in connection herewith or
therewith, and the consummation and administration of the transactions
contemplated hereby and thereby, including the reasonable fees and disbursements
of counsel to the Collateral Agent and the Secured Parties and filing and
recording fees and expenses, (ii) to pay or reimburse each Secured Party and the
Collateral Agent for all its costs and expenses incurred in connection with the
enforcement or preservation of any rights under this Agreement, the other
Security Documents and any such other documents, including the fees and
disbursements of counsel to each Secured Party and of counsel to the Collateral
Agent actually incurred, (iii) to pay, indemnify, and hold each Secured Party
and the Collateral Agent harmless from, any and all recording and filing fees
and any and all liabilities with respect to, or resulting from any delay in
paying, stamp, excise and other taxes, if any, that may be payable or determined
to be payable in connection with the execution and delivery of, or consummation
or administration of any of the transactions contemplated by, or any amendment,
supplement or modification of, or any waiver or consent under or in respect of,
this Agreement, the other Security Documents and any such other documents, and
(iv) to pay, indemnify, and hold each Secured Party and the Collateral Agent and
their respective officers, directors, employees, affiliates, agents and
controlling persons (each, an "Indemnitee") harmless from and against any and
all liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind or nature whatsoever with
respect to the execution, delivery, enforcement, performance and administration
of this Agreement, the other Security Documents and any such other documents,
including (other than any of the foregoing relating to the violation of,
noncompliance with or liability under, any Environmental Law applicable to the
operations of the Company and its Subsidiaries or any of the Properties, the
indemnification with respect to which shall be governed by the Environmental
Indemnity Agreement) the reasonable fees and expenses of legal counsel in
connection with claims, actions or proceedings by any Indemnitee against the
Company and its Subsidiaries under any this Agreement or the other Security
Documents (all the foregoing in this clause (iv), collectively, the "Indemnified
Liabilities"), provided, that the Company shall have no obligation hereunder to
any Indemnitee with respect to Indemnified Liabilities to the extent such
Indemnified Liabilities are found by a final and nonappealable decision of a
court of competent jurisdiction to have resulted from the

                                       31
<PAGE>

gross negligence or willful misconduct of such Indemnitee. An Indemnitee shall
not settle or compromise any Indemnified Liability without the consent of the
indemnifying Grantor, such consent not to be unreasonably withheld or delayed.
So long as no Event of Default has occurred and is continuing, the applicable
Grantor shall have the right, at its expense, to assume the defense of any
Indemnified Liability with counsel reasonably satisfactory to the applicable
Indemnitee; provided, however, that if the applicable Grantor fails to assume
such defense in a timely manner, the applicable Indemnitee may so assume such
defense. Notwithstanding anything to the contrary herein, the Grantors shall
not, in connection with any claims, actions or proceedings, or separate but
substantially similar or related claims, actions or proceedings in the same
jurisdiction arising out of the same general allegations or circumstances, be
obligated to reimburse the Indemnitees for the legal fees and expenses of more
than one firm of attorneys (in addition to one firm of attorneys acting as local
counsel) except to the extent that actual or potential conflicts interest exist
between Indemnitees with respect to such claims, actions or proceedings that
would require separate counsel. All amounts due under this Section 8.4 shall be
payable not later than 10 days after written demand therefor. Statements payable
by the Company pursuant to this Section 8.4 shall be submitted to Robert D.
Martin (Telephone No. (678) 742-8100) (Telecopy No. (678) 742-8995), at the
address of the Company set forth on Schedule 1, or to such other Person or
address as may be hereafter designated by the Company in a written notice to the
Collateral Agent.

         (b) The agreements in this Section 8.4 shall survive repayment of the
Obligations and all other amounts payable under the Transaction Documents and
the other Security Documents.

         8.5 Successors and Assigns. This Agreement shall be binding upon the
successors and assigns of each Grantor and shall inure to the benefit of the
Collateral Agent and the Secured Parties and their successors and assigns;
provided that no Grantor may assign, transfer or delegate any of its rights or
obligations under this Agreement without the prior written consent of the
Collateral Agent.

         8.6 Set-Off. Each Grantor hereby irrevocably authorizes the Collateral
Agent and each Secured Party at any time and from time to time while an Event of
Default shall have occurred and be continuing, without notice to such Grantor or
any other Grantor, any such notice being expressly waived by each Grantor, to
set-off and appropriate and apply any and all deposits (general or special, time
or demand, provisional or final), in any currency, and any other credits,
indebtedness or claims, in any currency, in each case whether direct or
indirect, absolute or contingent, matured or unmatured, at any time held or
owing by the Collateral Agent or such Secured Party to or for the credit or the
account of such Grantor, or any part thereof in such amounts as the Collateral
Agent or such Secured Party may elect, against and on account of the obligations
and liabilities of such Grantor to the Collateral Agent or such Secured Party
hereunder and claims of every nature and description of the Collateral Agent or
such Secured Party against such Grantor, in any currency, whether arising
hereunder, under any Transaction Document or otherwise, as the Collateral Agent
or such Secured Party may elect, whether or not the Collateral Agent or any
Secured Party has made any demand for payment and although such obligations,
liabilities and claims may be contingent or unmatured. The Collateral Agent and
each Secured Party shall notify such Grantor promptly of any such set-off and
the application made by the Collateral Agent or such Secured Party of the
proceeds thereof, provided that the failure to give such notice shall not affect
the validity of such set-off and application. The rights

                                       32
<PAGE>

of the Collateral Agent and each Secured Party under this Section 8.6 are in
addition to other rights and remedies (including, without limitation, other
rights of set-off) which the Collateral Agent or such Secured Party may have.

         8.7 Counterparts. This Agreement may be executed by one or more of the
parties to this Agreement on any number of separate counterparts (including by
telecopy), and all of said counterparts taken together shall be deemed to
constitute one and the same instrument.

         8.8 Severability. Any provision of this Agreement which is prohibited
or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

         8.9 Section Headings. The Section headings used in this Agreement are
for convenience of reference only and are not to affect the construction hereof
or be taken into consideration in the interpretation hereof.

         8.10 Integration. The Transaction Documents, this Agreement and the
other Security Documents represent the agreement of the Grantors, the Collateral
Agent and the Secured Parties with respect to the subject matter hereof and
thereof, and there are no promises, undertakings, representations or warranties
by the Collateral Agent or any Secured Party relative to subject matter hereof
and thereof not expressly set forth or referred to herein or in the other
Security Documents.

         8.11 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED
AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF GEORGIA.

         8.12 Submission To Jurisdiction; Waivers. Each Grantor hereby
irrevocably and unconditionally:

         (a) submits for itself and its property in any legal action or
proceeding relating to the Transaction Documents, this Agreement and the other
Security Documents to which it is a party, or for recognition and enforcement of
any judgment in respect thereof, to the non-exclusive general jurisdiction of
the courts of the State of Georgia, the courts of the United States of America
for the Northern District of Georgia, and appellate courts from any thereof;

         (b) consents that any such action or proceeding may be brought in such
courts and waives any objection that it may now or hereafter have to the venue
of any such action or proceeding in any such court or that such action or
proceeding was brought in an inconvenient court and agrees not to plead or claim
the same;

         (c) agrees that the courts of the State of Georgia , the courts of the
United States of America for the Northern District of Georgia, and appellate
courts from any thereof shall be exclusive with respect to any legal action or
proceeding relating to the Transaction Documents, this Agreement and the other
Security Documents to which it is a party brought by any or all of the Grantors
against the Collateral Agent or any Secured Party;

                                       33
<PAGE>

         (d) agrees that service of process in any such action or proceeding may
be effected by mailing a copy thereof by registered or certified mail (or any
substantially similar form of mail), postage prepaid, to such Grantor at its
address referred to in Section 8.2 or at such other address of which the
Collateral Agent shall have been notified pursuant thereto;

         (e) agrees that nothing herein shall affect the right to effect service
of process in any other manner permitted by law or shall limit the right to sue
in any other jurisdiction; and

         (f) waives, to the maximum extent not prohibited by law, any right it
may have to claim or recover in any legal action or proceeding referred to in
this Section any special, exemplary, punitive or consequential damages.

         8.13 Acknowledgements. Each Grantor hereby acknowledges that:

         (a) it has been advised by counsel in the negotiation, execution and
delivery of the Transaction Documents, this Agreement and the other Security
Documents to which it is a party;

         (b) neither the Collateral Agent nor any Secured Party has any
fiduciary relationship with or duty to any Grantor arising out of or in
connection with this Agreement or any of the Transaction Documents, and the
relationship between the Grantors, on the one hand, and the Collateral Agent and
Secured Parties, on the other hand, in connection herewith or therewith is
solely that of debtor and creditor;

         (c) no joint venture is created hereby or by the Transaction Documents
or otherwise exists by virtue of the transactions contemplated hereby among the
Secured Parties or among the Grantors and the Secured Parties; and

         (d) the terms of each of the Transaction Documents to which it is a
party are hereby ratified and its obligations thereunder are hereby reaffirmed.

         8.14 Additional Grantors. Each Subsidiary of the Company that is
required to become a party to this Agreement pursuant to Section 5.10 shall
become a Grantor for all purposes of this Agreement upon execution and delivery
by such Subsidiary of an Assumption Agreement in the form of Annex 1 hereto.

         8.15 Releases. (a) At such time as the Secured Debt and the other
Obligations shall have been paid in full (other than contingent indemnity
obligations which survive the repayment of the Secured Debt by their terms but
with respect to which no amounts are then owing), the Revolver Commitments have
been terminated and no Letters of Credit shall be outstanding, and the
Collateral Agent shall have received the written consent or directions of the
Secured Parties in accordance with Section 14 of the Intercreditor Agreement,
the Collateral shall be released from the Liens created hereby, and this
Agreement and all obligations (other than those expressly stated to survive such
termination) of the Collateral Agent and each Grantor hereunder shall terminate,
all without delivery of any instrument or performance of any act by any party,
and all rights to the Collateral shall revert to the Grantors. At the request
and sole expense of any Grantor following any such termination, the Collateral
Agent shall deliver to such Grantor any Collateral held by the Collateral Agent
hereunder, and execute and deliver to such Grantor such documents as such
Grantor shall reasonably request to evidence such termination.

                                       34
<PAGE>

         (b) If any of the Collateral shall be sold, transferred or otherwise
disposed of by any Grantor in a transaction permitted by the Transaction
Documents, then the Collateral Agent, at the request and sole expense of such
Grantor, shall execute and deliver to such Grantor all releases or other
documents reasonably necessary or desirable for the release of the Liens created
hereby on such Collateral. At the request and sole expense of the Company, a
Subsidiary of the Company who is a Guarantor hereunder shall be released from
its obligations hereunder in the event that all the Capital Stock of such
Subsidiary shall be sold, transferred or otherwise disposed of in a transaction
permitted by the Transaction Documents; provided that the Company shall have
delivered to the Collateral Agent, at least five Business Days prior to the date
of the proposed release, a written request for release identifying the relevant
Subsidiary and the terms of the sale or other disposition in reasonable detail,
including the price thereof and any expenses in connection therewith, together
with a certification by the Company stating that such transaction is in
compliance with the applicable Transaction Document, this Agreement and the
other Security Documents.

         8.16 WAIVER OF JURY TRIAL. EACH GRANTOR HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, TRIAL BY JURY IN
ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

                                       35
<PAGE>

         IN WITNESS WHEREOF, each of the undersigned has caused this Guarantee
and Collateral Agreement to be duly executed and delivered as of the date first
above written.

                                        RUSSELL CORPORATION

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

                                        CROSS CREEK APPAREL, LLC

                                        By:  CROSS CREEK HOLDINGS, INC.,
                                                its sole member and manager

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

                                        CROSS CREEK HOLDINGS, INC.

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

                                        DESOTO MILLS, INC.

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

                                        RUSSELL FINANCIAL SERVICES, INC.

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

                                       36
<PAGE>

                                        RUSSELL ASSET MANAGEMENT, INC.

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

                                        RINTEL PROPERTIES, INC

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

ACCEPTED IN ATLANTA, GEORGIA:

WACHOVIA BANK, N.A., as Collateral Agent

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

                                       37
<PAGE>

                                                                      Schedule 1

                         NOTICE ADDRESSES OF GUARANTORS

Notice Address for All Grantors:

                  Russell Corporation
                  Attn: Legal Department
                  3330 Cumberland Blvd., Suite 800
                  Atlanta, GA 30339

                                       38
<PAGE>

                                                                      Schedule 2

                       DESCRIPTION OF INVESTMENT PROPERTY

PLEDGED STOCK:

                               RUSSELL CORPORATION

Certificated Pledged Stock

<TABLE>
<CAPTION>
           Issuer                   Class of Stock                Stock Certificate No            No. of Shares
<S>                                 <C>                           <C>                             <C>
Alexander City Flying                   Common                              1                         1,000
    Service, Inc.

 Cross Creek Holdings, Inc.             Common                              1                         1,000

     DeSoto Mills, Inc.                 Common                              1                          100

  Mossy Oak Apparel Company             Common                             20                         1,000

   RINTEL Properties, Inc.              Common                              1                         1,000

Russell Asset Management, Inc.          Common                              1                          800

   Russell Athletic, Inc.               Common                              1                          100

 Russell Athletic West, Inc.            Common                              1                          100

 Russell Financial Services,            Common                              1                         1,000
            Inc.

 Russell Foreign Sales Ltd.             Common                              1                          0.65+
---------------------------------------------------------------------------------------------------------------
</TABLE>

--------------------------------
+        Numbers indicate pledged shares, which represent 65% of issued shares,
         although share certificates reflect larger number.

                                       39
<PAGE>

<TABLE>
<S>                                 <C>                           <C>                             <C>
 Russell Servicing Co., Inc.            Common                              1                         1,000

JERZEES Yucatan, S.A. de C.V.           Common                          UNO-B-II-1                  22,055.8+

JERZEES Campeche, S.A. de C.V.          Common                           UNO-B-1                      32.5+

Athletic de Camargo, S.A. de            Common                         3 Serie "A"                  32,500+
            C.V.

Cross Creek de Honduras, S.A            Common                             001                        16.25+
          de C.V.

  JERZEES Buena Vista, S.A.             Common                             001                        16.25+

JERZEES de Honduras, S.A. de            Common                             001                        16.25+
            C.V.

       RUServicios, S.A.                Common                             001                        16.25+

  Eagle R Holdings Limited              Common                              12                      12,000,000

  Eagle R Holdings Limited              Common                              14                      2,464,557++

     Russell Spain, S.L.*               Common                             [__]                         [__]

Russell Mexico, S.A. de C.V.*           Common                             [__]                         [__]

      Russell Japan KK*                 Common                             [__]                         [__]

     Russell Italy Srl*                 Common                             [__]                         [__]

   JERZEES Choloma, S.A.*               Common                             [__]                         [__]
---------------------------------------------------------------------------------------------------------------
</TABLE>

--------------------------------
++       Certificate No. 14 represents 10,253,164 shares, 2,464,557 of which are
         pledged hereunder.

*        Certificate to be delivered to the Collateral Agent along with a
         supplement to Schedule 2 after the effective date of the grant of
         security interest in such Pledged Stock accordance with Section 5.10

                                       40
<PAGE>
<TABLE>
<S>                                 <C>                           <C>                             <C>
 Servicios Russell, S.A. de             Common                             [__]                         [__]
            C.V.*

   Russell Corp. Far East               Common                             [__]                         [__]
           Limited*

Russell Corp. Canada Limited.           Common                             C-1                          65+

Russell Corp. Australia Ltd.*           Common                             [__]                         [__]
---------------------------------------------------------------------------------------------------------------
</TABLE>

Uncertificated Pledged Stock of domestic subsidiaries

100% of the membership interests of Jerzees Apparel, LLC
100% of the membership interests of Russell Yarn LLC
99% of the membership interests of Russell Apparel, LLC

Uncertificated Pledged Stock of foreign subsidiaries

65% of the ownership interests of Russell Co-Op LLC
65% of the ownership interests of Russell CZ s.r.o.
65% of the ownership interests of Russell do Brasil, Ltda.
65% of the ownership interests of Russell France SARL
65% of the ownership interests of Russell Germany GmbH

                           CROSS CREEK HOLDINGS, INC.

Certificated Pledged Stock

None

Uncertificated Pledged Stock

100% of the membership interests of Cross Creek Apparel, LLC

                            CROSS CREEK APPAREL, LLC

Certificated Pledged Stock

<TABLE>
<CAPTION>
           Issuer                   Class of Stock                Stock Certificate No            No. of Shares
<S>                                 <C>                           <C>                             <C>
Russell Asset Management, Inc           Common                              4                           140
</TABLE>

                                       41
<PAGE>

<TABLE>
<S>                                 <C>                           <C>                             <C>
 Cross Creek de Jimenez, S.A            Common                         3 - Serie "A"                  32,500+
           de C.V.
---------------------------------------------------------------------------------------------------------------
</TABLE>

Uncertificated Pledged Stock

None

                               DESOTO MILLS, INC.

Certificated Pledged Stock

<TABLE>
<CAPTION>
           Issuer                   Class of Stock                Stock Certificate No            No. of Shares
<S>                                 <C>                           <C>                             <C>
Russell Asset Management, Inc.          Common                              5                            60
---------------------------------------------------------------------------------------------------------------
</TABLE>

Uncertificated Pledged Stock

None

                        RUSSELL FINANCIAL SERVICES, INC.

Certificated Pledged Stock

None

Uncertificated Pledged Stock

1% of the membership interests of Russell Apparel, LLC

                             RINTEL PROPERTIES, INC.

None

                         RUSSELL ASSET MANAGEMENT, INC.

Certificated Pledged Stock

None

Uncertificated Pledged Stock

65% of the ownership interests of Russell Holdings Europe B.V.

                                       42
<PAGE>

PLEDGED NOTES:

<TABLE>
<CAPTION>
                       Issuer                                         Payee                        Principal Amount
           -----------------------------                       -------------------                 ----------------
           <S>                                                 <C>                                 <C>
           RUServicios, Sociedad Anonima                       Russell Corporation                 US $5,000,000.00
</TABLE>

PLEDGED BONDS:

1.       Industrial Development Revenue Bond (Kinder-Care Specialty Retail
         Group, Inc. Project) 1989 Series A No. AR-2 issued by The Industrial
         Development Board of the City of Montgomery to Russell Corporation in
         the initial principal amount of $15,730,336.04.

2.       Industrial Development Revenue Bond (Enstar Specialty Retail, Inc.
         Project) 1990 Series B No. BR-2 issued by The Industrial Development
         Board of the City of Montgomery to Russell Corporation in the initial
         principal amount of $1,600,000.

3.       Development Authority of Columbus, Georgia Industrial Development
         Revenue Bond (Russell Corporation Project) Series 1995 No. R-1 issued
         by the Development Authority of Columbus, Georgia to Russell
         Corporation in the initial principal amount of $35,000,000.

                                       43
<PAGE>

                                                                   Supplement to
                                                                      Schedule 2

                       DESCRIPTION OF INVESTMENT PROPERTY

PLEDGED STOCK:

                               RUSSELL CORPORATION

Certificated Pledged Stock

<TABLE>
<CAPTION>
           Issuer                   Class of Stock                Stock Certificate No            No. of Shares
<S>                                 <C>                        <C>                             <C>
     Russell Spain, S.L.                Common                 N/A (certificate represents              325+
                                                               share numbers 1-498 and 500)

 Russell Mexico, S.A. de C.V.           Common                              1                       2,434,347.5+
                                       (Capital
                                       Variable)

 Russell Mexico, S.A. de C.V.           Common                              1                         130,000+
                                     Capital Fijo)

      Russell Japan K.K.                Common                            0001                          100

      Russell Japan K.K.                Common                            0002                           30+

     Russell Italy S.r.l.               Common                              1                           .65+

     JERZEES Choloma S.A.               Common                             1.1                         16.25+

  Servicios Russell, S.A. de            Common                              1                           32.5+
             C.V.

   Russell Corp. Far East,              Common                              3                           650+
           Limited

 Russell Corp. Australia Pty            Common                             10                           199
             Ltd

     Russell Corporation                Common                              1                           1000
---------------------------------------------------------------------------------------------------------------
</TABLE>

-------------------
+        Numbers indicate pledged shares, which represent 65% of issued shares,
         although share certificates reflect larger number.

                                       44
<PAGE>

                                                                      Schedule 3

        FILINGS AND OTHER ACTIONS REQUIRED TO PERFECT SECURITY INTERESTS

                         Uniform Commercial Code Filings

Debtor:                    Russell Corporation
Secured Party:             Wachovia Bank, N.A., as Collateral Agent

--------------------------------------------
        Jurisdiction
--------------------------------------------
Alabama, Secretary of State
--------------------------------------------
Arkansas, Secretary of State
--------------------------------------------
California, Secretary of State
--------------------------------------------
Colorado Secretary of State
--------------------------------------------
Florida, Secretary of State
--------------------------------------------
Georgia, Cobb County
--------------------------------------------
Illinois Secretary of State
--------------------------------------------
Kansas, Secretary of State
--------------------------------------------
Mississippi, Secretary of State
--------------------------------------------
Mississippi, Clay County
--------------------------------------------
Mississippi, Coahoma County
--------------------------------------------
Mississippi, George County
--------------------------------------------
Mississippi, Lamar County
--------------------------------------------
Mississippi, Leake County
--------------------------------------------
Mississippi, Scott County
--------------------------------------------
Missouri, Secretary of State
--------------------------------------------
Montana, Secretary of State
--------------------------------------------
New Jersey, Secretary of State

                                       45
<PAGE>

--------------------------------------------
New York, Secretary of State
--------------------------------------------
North Carolina, Secretary of State
--------------------------------------------
Ohio, Secretary of State
--------------------------------------------
Oklahoma, Oklahoma County
--------------------------------------------
Pennsylvania Secretary of State
--------------------------------------------
South Carolina, Secretary of State
--------------------------------------------
Texas, Secretary of State
--------------------------------------------
Virginia, Secretary of State
--------------------------------------------

Debtor:                    DeSoto Mills, Inc.
Secured Party:             Wachovia Bank, N.A., as Collateral Agent

--------------------------------------------
       Jurisdiction
--------------------------------------------
Alabama, Secretary of State
--------------------------------------------
Arkansas, Secretary of State
--------------------------------------------
California, Secretary of State
--------------------------------------------
Colorado Secretary of State
--------------------------------------------
Florida, Secretary of State
--------------------------------------------
Georgia, Cobb County
--------------------------------------------
Illinois Secretary of State
--------------------------------------------
Kansas, Secretary of State
--------------------------------------------
Mississippi, Secretary of State
--------------------------------------------
Mississippi, Clay County
--------------------------------------------
Mississippi, Coahoma County
--------------------------------------------
Mississippi, George County
--------------------------------------------
Mississippi, Lamar County
--------------------------------------------
Mississippi, Leake County
--------------------------------------------
Mississippi, Scott County
--------------------------------------------
Missouri, Secretary of State

                                       46
<PAGE>

--------------------------------------------
Montana, Secretary of State
--------------------------------------------
New Jersey, Secretary of State
--------------------------------------------
New York, Secretary of State
--------------------------------------------
North Carolina, Secretary of State
--------------------------------------------
Ohio, Secretary of State
--------------------------------------------
Oklahoma, Oklahoma County
--------------------------------------------
Pennsylvania Secretary of State
--------------------------------------------
South Carolina, Secretary of State
--------------------------------------------
Texas, Secretary of State
--------------------------------------------
Virginia, Secretary of State
--------------------------------------------

Debtor:                    Cross Creek Apparel, LLC
Secured Party:             Wachovia Bank, N.A., as Collateral Agent

--------------------------------------------
       Jurisdiction
--------------------------------------------
Alabama, Secretary of State
--------------------------------------------
Florida, Secretary of State
--------------------------------------------
Georgia, Cobb County
--------------------------------------------
Mississippi, Secretary of State
--------------------------------------------
Mississippi, Clay County
--------------------------------------------
Mississippi, Coahoma County
--------------------------------------------
Mississippi, George County
--------------------------------------------
Mississippi, Lamar County
--------------------------------------------
Mississippi, Leake County
--------------------------------------------
Mississippi, Scott County
--------------------------------------------
North Carolina, Secretary of State
--------------------------------------------

Debtor:                    Cross Creek Holdings, Inc.
Secured Party:             Wachovia Bank, N.A., as Collateral Agent

--------------------------------------------
       Jurisdiction
--------------------------------------------
Alabama, Secretary of State
--------------------------------------------
Delaware, Secretary of State
--------------------------------------------
Florida, Secretary of State
--------------------------------------------
Georgia, Cobb County
--------------------------------------------
Mississippi, Secretary of State
--------------------------------------------
Mississippi, Clay County
--------------------------------------------
Mississippi, Coahoma County
--------------------------------------------
Mississippi, George County
--------------------------------------------
Mississippi, Lamar County
--------------------------------------------
Mississippi, Leake County
--------------------------------------------
Mississippi, Scott County
--------------------------------------------

                                       47
<PAGE>

Debtor:                    Russell Financial Services, Inc.
Secured Party:             Wachovia Bank, N.A., as Collateral Agent

--------------------------------------------
       Jurisdiction
--------------------------------------------
Alabama, Secretary of State
--------------------------------------------
Delaware, Secretary of State
--------------------------------------------
Florida, Secretary of State
--------------------------------------------
Georgia, Cobb County
--------------------------------------------
Mississippi, Secretary of State
--------------------------------------------
Mississippi, Clay County
--------------------------------------------
Mississippi, Coahoma County
--------------------------------------------
Mississippi, George County
--------------------------------------------
Mississippi, Lamar County
--------------------------------------------
Mississippi, Leake County
--------------------------------------------
Mississippi, Scott County
--------------------------------------------

                                       48
<PAGE>

Debtor:                    Russell Asset Management, Inc.
Secured Party:             Wachovia Bank, N.A., as Collateral Agent

--------------------------------------------
       Jurisdiction
--------------------------------------------
Alabama, Secretary of State
--------------------------------------------
Delaware, Secretary of State
--------------------------------------------
Georgia, Cobb County

Debtor:                    RINTEL Properties, Inc.
Secured Party:             Wachovia Bank, N.A., as Collateral Agent

--------------------------------------------
       Jurisdiction
--------------------------------------------
Alabama, Secretary of State
--------------------------------------------
Delaware, Secretary of State
--------------------------------------------
Georgia, Cobb County

                          Patent and Trademark Filings

    Notice and Confirmation of Grant of Security Interest to be filed in the
            United States Patent and Trademark Office as appropriate

     Actions with respect to Pledged Stock, Pledged Notes and Pledged Bonds

       Take delivery of all Pledged Stock represented by an instrument or
              certificate, all Pledged Notes and all Pledged Bonds

                                       49
<PAGE>

                                                                      Schedule 4

       LOCATION OF JURISDICTION OF ORGANIZATION AND CHIEF EXECUTIVE OFFICE

<TABLE>
<CAPTION>

                                  Jurisdiction of                      Location of Chief         Organization
Grantor                           Organization/Incorporation           Executive Office          Number
-------                           --------------------------           -----------------         ------------
<S>                               <C>                                  <C>                       <C>
Russell Corporation                        Alabama                     3330 Cumberland Blvd.            N/A
                                                                       Suite 800
                                                                       Atlanta, GA 30339

Cross Creek Apparel, LLC                   North Carolina              Highway 52 South             0575026
                                                                       Mt. Airy, NC 27030

Cross Creek Holdings, Inc.                 Delaware                    300 Delaware Avenue          2942114
                                                                       9th Floor-DE 5403
                                                                       Wilmington, DE 19801

DeSoto Mills, Inc.                         Alabama                     1493 County Road 609             N/A
                                                                       Fort Payne, AL 35967

Russell Financial Services, Inc.           Delaware                    300 Delaware Avenue          1436522
                                                                       Suite 1271
                                                                       Wilmington, DE 19801

Russell Asset Management, Inc.             Delaware                    300 Delaware Avenue          2942115
                                                                       Suite 1271
                                                                       Wilmington, DE 19801

RINTEL Properties, Inc.                    Delaware                    300 Delaware Avenue          2942116
                                                                       9th Floor - DE 5403
                                                                       Wilmington, DE 19801
</TABLE>

                                       50
<PAGE>

                                                                      Schedule 5

                      LOCATIONS OF INVENTORY AND EQUIPMENT

<TABLE>
<CAPTION>
Grantor                                      Locations
-------                                      ---------
<S>                                          <C>
Russell Corporation                          (1)      755 Lee Street
                                                      Alexander City, AL 35010
                                                      (Alexander City Complex)

                                             (2)      555 S. Main Street
                                                      Brundidge, AL
                                                      (Brundidge Plant)

                                             (3)      1 Retail Drive
                                                      Montgomery, AL
                                                      (Montgomery DC)

                                             (4)      6175 Lynch Road
                                                      Midland, GA
                                                      (Columbus DC)

                                             (5)      3145 Elmore Rd.
                                                      Hwy 14
                                                      Wetumpka, AL
                                                      (Coosa River Complex)

                                             (6)      CaliforniaMart
                                                      110 East Ninth Street
                                                      No. C463
                                                      Los Angeles, CA
                                                      (Leased Office)

                                             (7)      Empire State Building
                                                      350 Fifth Avenue
                                                      New York, NY
                                                      (Leased Office)

                                             (8)      201 Main Street
                                                      West Point, MS
                                                      (Leased Office)

                                             (9)      623-C Park Meadow Road
                                                      Westerville, OH
                                                      (Leased Office)
</TABLE>

                                       51
<PAGE>

<TABLE>
<S>                                          <C>
                                             (10)     Dothan Warehouse
                                                      980 Murray Road
                                                      P.O. Box 2222
                                                      Dothan, AL 36302
                                                      (Leased Warehouse)

                                             (11)     Montgomery Warehouse LLC
                                                      P.O. Box 9099
                                                      Montgomery, AL 36108
                                                      (Leased Warehouse)

                                             (12)     Walker Warehousing
                                                      P.O. Box 39
                                                      Alexander City, AL 35011
                                                      (Leased Warehouse)

                                             (13)     New Site Packaging, LLC
                                                      P.O. Box 1492
                                                      Alexander City, AL
                                                      (Leased Warehouse)

                                             (14)     Rain Tree Business Center
                                                      900B South Walton Blvd., Suite 8
                                                      Bentonville, AR
                                                      (Leased Office)

                                             (15)     1562 E. Spruce
                                                      Olathe, KS
                                                      (Leased Office)

                                             (16)     3330 Cumberland Blvd., Suite 800
                                                      Atlanta, GA 30339
                                                      (Leased Office)

                                             (17)     Wideworld Sportswear
                                                      14 East 29th Street
                                                      Long Beach, CA 90806
                                                      (Contractor)

                                             (18)     Authentic Brands (DEMCO)
                                                      1088 National Parkway
                                                      Schaumberg, IL 60173
                                                      (Contractor)
</TABLE>

                                       52
<PAGE>

<TABLE>
<S>                                          <C>
                                             (19)     JMW Sales Co. Inc.
                                                      10 West End Road
                                                      Totowa, NJ 07512
                                                      (Contractor)

                                             (20)     Greensboro Apparel
                                                      County Road 28
                                                      Greensboro, AL 36744
                                                      (Contractor)

                                             (21)     North River Apparel
                                                      100 Box Factory Road
                                                      Berry, AL 35546
                                                      (Contractor)

                                             (22)     Heritage Sportswear
                                                      505 Manning Street
                                                      Marion, SC 29571
                                                      (Contractor)

                                             (23)     Iris Apparel
                                                      4920 Jamestown Road
                                                      Clarkrange, TN 38553
                                                      (Contractor)

                                             (24)     Intex Corporation
                                                      1031 Summit Avenue
                                                      Greensboro, NC 27405
                                                      (Contractor)

                                             (25)     Key Buffalo
                                                      Airport Road
                                                      Buffalo, MO 65622
                                                      (Contractor)

                                             (26)     Embroidery Plus
                                                      P.O. Box 370
                                                      Lena, MS 39094
                                                      (Contractor)

                                             (27)     Quality Apparel
                                                      1196 Cedar Fork Road
                                                      P.O. Box 213
                                                      Tazwell, TN 37879
                                                      (Contractor)
</TABLE>

                                       53
<PAGE>

<TABLE>
<S>                                          <C>
                                             (28)     Quaker Boy
                                                      20 Russell Road
                                                      Bradford, PA 16701
                                                      (Contractor)

                                             (29)     Royal Park
                                                      14139 Highway 86 South
                                                      Prospect Hill, NC 27314
                                                      (Contractor)

                                             (30)     Royal Park
                                                      11010 NW 30th St., Suite 106
                                                      Miami, FL 33152
                                                      (Contractor)

                                             (31)     Virginia Garment
                                                      P.O. Box 23050
                                                      Richmond, VA 23223
                                                      (Contractor)

                                             (32)     Wrightenberry Mills
                                                      910 Cleveland Avenue
                                                      Burlington, NC 27217
                                                      (Contractor)

                                             (33)     Triad Packaging & Distribution
                                                      4965 Indiana Avenue
                                                      Winston-Salem, NC 27103
                                                      (Contractor)

                                             (34)     Quality Embroidery
                                                      61 Biesecker Road
                                                      P.O. Box 575
                                                      Lexington, NC 27293
                                                      (Contractor)

                                             (35)     Factory Screenworks
                                                      #3 Charles Road
                                                      P.O. Box 2424
                                                      King, NC 27021
                                                      (Contractor)

                                             (36)     The Shirt Factory
                                                      56 Kendall Pond Road
                                                      Derry, New Hampshire 03038
                                                      (Contractor)
</TABLE>

                                       54
<PAGE>

<TABLE>
<S>                                          <C>
Cross Creek Apparel, LLC                     (1)      Highway 52 South
                                                      Mt. Airy, NC 27030

                                             (2)      Riverside Drive
                                                      Mt. Airy, NC
                                                      (Cloth Plant/CC Knitting)

                                             (3)      2920 Highway 86 North
                                                      Suite B
                                                      Yanceyville, NC
                                                      (Leased Office)

                                             (4)      Bray Warehouse
                                                      372 Old Highway 52 South
                                                      Mt. Airy, NC
                                                      (Leased Warehouse)

                                             (5)      Gold Leaf Warehouse
                                                      301 Old Highway 52 South
                                                      Mt. Airy, NC
                                                      (Leased Warehouse)

                                             (6)      Big Holly Warehouse
                                                      525 Holly Springs Road
                                                      Mt. Airy, NC
                                                      (Leased Warehouse)

DeSoto Mills, Inc.                           (1)      1493 County Road 609
                                                      Fort Payne, AL 35967

                                             (2)      Sandy Valley Road
                                                      Ft. Payne, AL 35967
                                                      (Dyeing/Finishing/Warehouse)

Russell Financial Services, Inc.             None

Cross Creek Holdings, Inc.                   None

Russell Asset Management, Inc.               None

RINTEL Properties, Inc.                      None
</TABLE>

                                       55
<PAGE>

                                                                      Schedule 6

                        COPYRIGHTS AND COPYRIGHT LICENSES

RUSSELL CORPORATION - U.S. COPYRIGHTS

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
DESCRIPTION                                                     REGISTRATION NO.        ISSUE DATE
----------------------------------------------------------------------------------------------------------------------
<S>                                                             <C>                     <C>
Russell Athletic Team Specialist Catalog/1979                   TX-152-984              12/5/1978
----------------------------------------------------------------------------------------------------------------------
The Little T Shirt that Made Good                               TX-1-417-069            8/28/1984
----------------------------------------------------------------------------------------------------------------------
Russell Athletic R Logo                                         200-F-0154              9/25/2000
----------------------------------------------------------------------------------------------------------------------
</TABLE>

CROSS CREEK APPAREL, LLC - U.S. COPYRIGHTS

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
DESCRIPTION                                                     REGISTRATION NO.        ISSUE DATE
----------------------------------------------------------------------------------------------------------------------
<S>                                                             <C>                     <C>
Cross Creek Bogey Man (embroidery                               VA-639-939              5/31/1994
design on shirt)
----------------------------------------------------------------------------------------------------------------------
</TABLE>

                           PATENTS AND PATENT LICENSES

RUSSELL CORPORATION - U.S. PATENT APPLICATIONS

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
DESCRIPTION                                  APPLICATION NO.                     DATE FILED
----------------------------------------------------------------------------------------------------------------------
<S>                                          <C>                                 <C>
Garment Portion Processing Assembly          09/620,052                          7/20/2000
----------------------------------------------------------------------------------------------------------------------
Bale Processing Assembly                     09/620,795                          7/21/2000
----------------------------------------------------------------------------------------------------------------------
Improved Dye Machine Festooner               09/501,389                           2/9/2000
----------------------------------------------------------------------------------------------------------------------
Pebble Fabric                                09/835,902                          4/16/2001
----------------------------------------------------------------------------------------------------------------------
</TABLE>

RUSSELL CORPORATION - U.S. PATENT REGISTRATIONS

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
DESCRIPTION                                  APPLICATION NO.                     DATE FILED
----------------------------------------------------------------------------------------------------------------------
<S>                                          <C>                              <C>
Method for Inspecting, Detecting and         4,864,150                        9/5/1989
Distinguishing Sides of Fabrics
----------------------------------------------------------------------------------------------------------------------
Method and Apparatus for Sensing the         4,799,613                        1/24/1989
Preferred Side of Garment Portions
----------------------------------------------------------------------------------------------------------------------
Automatic Garment Portion Loader             4,693,460                        9/15/1987
----------------------------------------------------------------------------------------------------------------------
Automatic Garment Portion Loader             4,633,604                        1/6/1987
----------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       56
<PAGE>

                        TRADEMARKS AND TRADEMARK LICENSES

                                   TRADEMARKS

I.       Russell Corporation Registrations

<TABLE>
<CAPTION>

---------------------------------------------------------------------------------------------------------------------------------
JURISDICTION                           MARKS                                          CLASS             REG DATE        REG NO.
---------------------------------------------------------------------------------------------------------------------------------
<S>                     <C>                                                           <C>              <C>              <C>
USA                     Discus                                                          25             01/17/1978       1082718
---------------------------------------------------------------------------------------------------------------------------------
USA                     Discus and design                                               25             06/24/1997       2074559
---------------------------------------------------------------------------------------------------------------------------------
USA                     Discus Athletic and design                                      25             09/10/1996       1999602
---------------------------------------------------------------------------------------------------------------------------------
USA                     Discus Athletic and design                                      25             05/28/1996       1976957
---------------------------------------------------------------------------------------------------------------------------------
USA                     Discus Athletic                                                 25             05/28/1996       1976958
---------------------------------------------------------------------------------------------------------------------------------
USA                     Discus Athletic and design                                      25             07/23/1991       1651552
---------------------------------------------------------------------------------------------------------------------------------
USA                     Sport by Discus Athletic and design                             25             11/18/1997       2114356
---------------------------------------------------------------------------------------------------------------------------------
USA                     Sport by Discus Athletic                                        25             11/04/1997       2110858
---------------------------------------------------------------------------------------------------------------------------------
USA                     Discus Classic Athletic                                         25             03/09/1999       2230217
---------------------------------------------------------------------------------------------------------------------------------
USA                     Discus Sport and design                                         25             10/12/1999       2285724
---------------------------------------------------------------------------------------------------------------------------------
USA                     Discus Sport                                                    25             12/08/1998       2209372
---------------------------------------------------------------------------------------------------------------------------------
USA                     Discus Thrower design                                           25             02/18/1997       2039121
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>

II.      Russell Corporation Applications and Unregistered Names

Russell Corp.
Russell Corporation
Russell Mills
Russell Fabrics

III.     Cross Creek Apparel, LLC Registrations

<TABLE>
<CAPTION>

---------------------------------------------------------------------------------------------------------------------------------
JURISDICTION                           MARKS                                          CLASS             REG DATE        REG NO.
---------------------------------------------------------------------------------------------------------------------------------
<S>                     <C>                                                           <C>              <C>              <C>
USA                      Quality Mills and design                                       25             05/31/1983       1240419
---------------------------------------------------------------------------------------------------------------------------------
USA                      Recherche                                                      42             08/09/1983       1,247,738
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>

IV.      Cross Creek Apparel, LLC Applications and Unregistered Names

None

V.       DeSoto Mills, Inc., Registrations

None

                                       57
<PAGE>

VI.      DeSoto Mills, Inc., Applications and Unregistered Names

DeSoto Mills

VII.     Cross Creek Holdings, Inc., Registrations

None

VIII.    Cross Creek Holdings, Inc., Applications and Unregistered Names

None

IX.      Russell Financial Services, Inc., Registrations

None

X.       Russell Financial Services, Inc., Applications and Unregistered Names

None

XI.      Russell Asset Management, Inc. Registrations

<TABLE>
<CAPTION>

---------------------------------------------------------------------------------------------------------------------------------
JURISDICTION                           MARKS                                          CLASS             REG DATE        REG NO.
---------------------------------------------------------------------------------------------------------------------------------
<S>                     <C>                                                           <C>              <C>              <C>
USA                     4C - design                                                     25             12/29/1998       2,213,930
---------------------------------------------------------------------------------------------------------------------------------
USA                     Athletic Club                                                   25             01/07/1997       2028087
---------------------------------------------------------------------------------------------------------------------------------
USA                     Bargain Bag                                                     25             06/20/1995       1900754
---------------------------------------------------------------------------------------------------------------------------------
USA                     Big Foot and Design                                             25             07/10/1990       1605660
---------------------------------------------------------------------------------------------------------------------------------
USA                     Bridgeport                                                      25             12/03/1991       1667205
---------------------------------------------------------------------------------------------------------------------------------
USA                     Built to Last                                                   25             08/01/1989       1550238
---------------------------------------------------------------------------------------------------------------------------------
USA                     Camp Creek                                                      25             10/26/1999       2289321
---------------------------------------------------------------------------------------------------------------------------------
USA                     Castle Design                                                   25             04/19/1994       1831412
---------------------------------------------------------------------------------------------------------------------------------
USA                     Concentric Circles and Double Ovals Design                      25             03/09/1993       1756943
---------------------------------------------------------------------------------------------------------------------------------
USA                     Country Cottons                                                 24             09/17/1985       1360689
---------------------------------------------------------------------------------------------------------------------------------
USA                     Cross Creek & ('bogey man') design                              25             04/22/1997       2,054,178
---------------------------------------------------------------------------------------------------------------------------------
USA                     Cross Creek & ('bogey man') design                              25             04/22/1997       2,054,179
---------------------------------------------------------------------------------------------------------------------------------
USA                     Cross Creek                                                     25             10/07/1975       1022095
---------------------------------------------------------------------------------------------------------------------------------
USA                     DD and design (Four Old Time Football                           25             08/20/1991       1654384
                        Players design)
---------------------------------------------------------------------------------------------------------------------------------
USA                     DeSoto Outdoors and Design                                      25             01/19/1993       1747193
---------------------------------------------------------------------------------------------------------------------------------
USA                     Desoto Player's Club                                            25             01/02/1990       1575150
---------------------------------------------------------------------------------------------------------------------------------
USA                     Desoto Player's Club and design (old time                       25             07/30/1996       1,989,417
                        football players w/words)
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       58
<PAGE>

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
  JURISDICTION                                   MARK                                 CLASS              REG DATE          REG NO.
---------------------------------------------------------------------------------------------------------------------------------
<S>                     <C>                                                           <C>              <C>              <C>
---------------------------------------------------------------------------------------------------------------------------------
USA                     Focus Design                                                      25           06/13/1989       1543669
---------------------------------------------------------------------------------------------------------------------------------
USA                     Get Tough                                                    18 & 25           04/22/1997       2,055,798
---------------------------------------------------------------------------------------------------------------------------------
USA                     Get Tough R Russell Athletic                                 18 & 25           02/04/1997       2,035,968
---------------------------------------------------------------------------------------------------------------------------------
USA                     Golf is War Do Battle in Cross Creek and                          25           09/22/1998       2,190,594
                        design
---------------------------------------------------------------------------------------------------------------------------------
USA                     High Cotton (stylized)                                            25           04/24/1990       1593129
---------------------------------------------------------------------------------------------------------------------------------
USA                     Huntley of York                                                   25          11/15/1977       1077467
---------------------------------------------------------------------------------------------------------------------------------
USA                     Jerzees                                                           25           02/22/2000       2322101
---------------------------------------------------------------------------------------------------------------------------------
USA                     Jerzees                                                           25           04/14/1992       1683032
---------------------------------------------------------------------------------------------------------------------------------
USA                     Jerzees Activewear Z and design                                   25           07/04/2000       2363671
---------------------------------------------------------------------------------------------------------------------------------
USA                     Jerzees logo                                                      25           05/29/1984       1280293
---------------------------------------------------------------------------------------------------------------------------------
USA                     Jerzees Cotton Sweats                                             25           06/23/1992       1696178
---------------------------------------------------------------------------------------------------------------------------------
USA                     Jerzees World Class and design                                    25           07/02/1996       1983435
---------------------------------------------------------------------------------------------------------------------------------
USA                     Lady Player                                                       25           03/15/1994       1826428
---------------------------------------------------------------------------------------------------------------------------------
USA                     Design - four men in top hats                                     25           01/30/1990       1580207
---------------------------------------------------------------------------------------------------------------------------------
USA                     Participant                                                       25           05/11/1999       2,245,153
---------------------------------------------------------------------------------------------------------------------------------
USA                     Performance Cushion                                               25           02/28/1995       1880688
---------------------------------------------------------------------------------------------------------------------------------
USA                     Performance Club                                                  25           06/06/1995       1897592
---------------------------------------------------------------------------------------------------------------------------------
USA                     Player's Pride                                                    25           01/03/1995       1871967
---------------------------------------------------------------------------------------------------------------------------------
USA                     Player's Performance                                              25           03/01/1994       1824475
---------------------------------------------------------------------------------------------------------------------------------
USA                     Pro Cotton                                                        25           05/23/1989       1540603
---------------------------------------------------------------------------------------------------------------------------------
USA                     Qualitized                                                        25           07/24/1962       734966
---------------------------------------------------------------------------------------------------------------------------------
USA                     R logo                                                            25           12/02/1997       2118119
---------------------------------------------------------------------------------------------------------------------------------
USA                     R logo                                                            25           10/29/1974       996847
---------------------------------------------------------------------------------------------------------------------------------
USA                     R logo                                                            25           11/05/1974       997505
---------------------------------------------------------------------------------------------------------------------------------
USA                     R logo                                                            24           12/09/1975       1026794
---------------------------------------------------------------------------------------------------------------------------------
USA                     R Russell Athletic (and design)                                   25           12/09/1997       2120076
---------------------------------------------------------------------------------------------------------------------------------
USA                     R Russell Athletic/High Cotton                                    25           10/28/1986       1415076
---------------------------------------------------------------------------------------------------------------------------------
USA                     R Russell Athletic                                           18 & 25           11/07/1995       1932436
---------------------------------------------------------------------------------------------------------------------------------
USA                     Red Eagle Trading Co.                                             25           08/14/2001       2477855
---------------------------------------------------------------------------------------------------------------------------------
USA                     Red Eagle Trading Co. By Jerzees and design                       25           09/04/2001       2484965
---------------------------------------------------------------------------------------------------------------------------------
USA                     Russell National & design                                         25           08/27/1985       1356767
---------------------------------------------------------------------------------------------------------------------------------
USA                     Softwick                                                          24           07/10/2001       2467822
---------------------------------------------------------------------------------------------------------------------------------
USA                     Super Sweats                                                      25           06/23/1981       1158184
---------------------------------------------------------------------------------------------------------------------------------
USA                     The Exceptional Shirt                                             25           05/01/1984       1276266
---------------------------------------------------------------------------------------------------------------------------------
USA                     The Experience Shows                                              25           09/08/1992       1713836
---------------------------------------------------------------------------------------------------------------------------------
USA                     The Golfer and Design                                             25           06/21/1988       1493214
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       59
<PAGE>

<TABLE>
<S>                     <C>                                                           <C>              <C>              <C>
---------------------------------------------------------------------------------------------------------------------------------
USA                     The Worker and Design                                              25          01/26/1993       1748611
---------------------------------------------------------------------------------------------------------------------------------
USA                     Three Rivers                                                       25          09/17/1996       2001576
---------------------------------------------------------------------------------------------------------------------------------
USA                     TOURTECH                                                           25          08/11/1998       2,180,235
---------------------------------------------------------------------------------------------------------------------------------
USA                     Tweed Fleece                                                       25          12/07/1999       1199072
---------------------------------------------------------------------------------------------------------------------------------
USA                     YorkTown                                                           25          08/11/1964       775016
---------------------------------------------------------------------------------------------------------------------------------
USA                     Z CLASS                                                            25          11/06/2001       2504093
---------------------------------------------------------------------------------------------------------------------------------
USA                     ZT                                                                 25          12/05/2000       2411447
---------------------------------------------------------------------------------------------------------------------------------
USA                     ZT and design                                                      25          08/07/2001       2475783
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>

XII.     Russell Asset Management, Inc. Applications and Unregistered Names

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
Jurisdiction                         Marks                                            Class            Date Filed       Serial No.
---------------------------------------------------------------------------------------------------------------------------------
<S>                     <C>                                                           <C>              <C>              <C>
---------------------------------------------------------------------------------------------------------------------------------
USA                     R logo                                                          25             02/27/2001        76216732
---------------------------------------------------------------------------------------------------------------------------------
USA                     C C design                                                      25             07/21/2000        76093889
---------------------------------------------------------------------------------------------------------------------------------
USA                     HERCUFIBRE                                                      24             05/25/2001        76263343
---------------------------------------------------------------------------------------------------------------------------------
USA                     JERZEES rectangle design                                        25             10/16/01          76325996
---------------------------------------------------------------------------------------------------------------------------------
USA                     Jerzees CaZuals and design                                      25             08/28/2000        76118145
---------------------------------------------------------------------------------------------------------------------------------
USA                     JERZEES OUTDOORS                                                25             07/21/2000        76093890
---------------------------------------------------------------------------------------------------------------------------------
USA                     Performance Pique                                               25             06/05/2001        76266784
---------------------------------------------------------------------------------------------------------------------------------
USA                     RUSSELL                                                         25             08/18/2000        76112386
---------------------------------------------------------------------------------------------------------------------------------
USA                     Russell Athletic                                              25, 28            02/27/2001       76/216841
---------------------------------------------------------------------------------------------------------------------------------
USA                     The Radiator                                                    25             10/16/2000       76/148492
---------------------------------------------------------------------------------------------------------------------------------
USA                     Storm Power                                                     25             10/29/2001       76/330765
---------------------------------------------------------------------------------------------------------------------------------
USA                     Stretch Power                                                    25             10/29/2001       76/330789
---------------------------------------------------------------------------------------------------------------------------------
USA                     TRANSFORMX                                                       25             08/17/2001       76301400
---------------------------------------------------------------------------------------------------------------------------------
USA                     Z and Diamond design                                             35             02/16/2001       76214510
---------------------------------------------------------------------------------------------------------------------------------
USA                     Z and Diamond design                                             25             02/16/2001       76214511
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>

XIII.    RINTEL Properties, Inc. Registrations

None

XIV.     RINTEL Properties, Inc., Applications and Unregistered Names

None

                               TRADEMARK LICENSES

LICENSES WHERE A GRANTOR IS LICENSOR:

                                       60
<PAGE>

AB COMPETITION AGREEMENT
BRILLIANCE ELEMENT LICENSE AGREEMENT
D'LIGHT NV AGREEMENT
ESSENCE GMBH AGREEMENT
HIDARY LICENSE AGREEMENT
KEN TRADE SRL AGREEMENT
MINT APPAREL LIMITED AGREEMENT
SIBNERHEGNER LIMITED LICENSE AGREEMENT
TWINS A/S AGREEMENT
UNIVERSAL-EXES OY AGREEMENT
WRIGHT'S KNITWEAR LICENSE AGREEMENT
RINTEL PROPERTIES, INC. AGREEMENT (Russell Asset Management, Inc. licenses to
RINTEL Properties, Inc.)
RINTEL PROPERTIES, INC. AGREEMENTS (RINTEL Properties, Inc. sublicenses to
Russell Corporation, DeSoto Mills, Inc. and Cross Creek Apparel, LLC)

LICENSES WHERE A GRANTOR IS LICENSEE:

RINTEL PROPERTIES, INC. AGREEMENTS (RINTEL Properties, Inc. sublicenses to
Russell Corporation, DeSoto Mills, Inc. and Cross Creek Apparel, LLC) AFL
LICENSE AGREEMENT
BASS LICENSE & SPONSORSHIP AGREEMENT
CHARTER FABRICS LICENSE
CROSSBOW PRIVATE LABEL MERCHANDISE AGREEMENT
FAB-CON MACHINERY DEVELOPMENT CORP.
HAAS OUTDOORS, INC. MOSSY OAK LICENSE AGREEMENT
MAJOR LEAGUE BASEBALL PROPERTIES, INC.
MAJOR LEAGUE BASEBALL PLAYERS ASSOCIATION, INC.
MALDEN MILLS LICENSE AGREEMENT
MINOR LEAGUE BASEBALL ON-FIELD LICENSE AGREEMENT
TUBULAR TEXTILE, LLC
WOODWAY USA, INC. LICENSE AGREEMENT
AIR FORCE UNIVERSITY
AKRON, U/
ALABAMA, U/
ALABAMA - HUNTSVILLE, U/
AMERICAN UNIVERSITY
APPALACHIAN STATE
ARIZONA, U/
ARIZONA STATE UNIVERSITY
ARKANSAS, U/
ARKANSAS, U/ - PINE BLUFF
ARMY - US MILITARY ACADEMY
AUBURN UNIVERSITY
BAYLOR UNIVERSITY
BOISE STATE UNIVERSITY

                                       61
<PAGE>

BOSTON COLLEGE
BOSTON UNIVERSITY
BOWLING GREEN STATE UNIV.
BRADLEY UNIVERSITY
BRIGHAM YOUNG
BUTLER UNIVERSITY
CALIFORNIA- BERKELEY, U/
CALIFORNIA - DAVIS, U/
CALIFORNIA - LOS ANGELES, U/
CALIFORNIA-SANTA BARBARA, U/
CAL STATE CHICAGO
CAL STATE FULLERTON

                                       62
<PAGE>

CAL STATE NORTHRIDGE
CAL STATE SACRAMENTO
CAL STATE SAN MARCOS
CALIFORNIA U-PENNSYLVANIA
CANISIUS COLLEGE
CENTRAL FLORIDA
CENTRAL MICHIGAN UNIV.
CENTRAL MISSOURI ST UNIV.
CENTRAL WASHINGTON
CINCINNATI, U/
CITADEL UNIVERSITY
CLARION
CLEMSON UNIVERSITY
COLGATE UNIVERSITY
COLLEGE OF CHARLESTON
COLORADO SCHOOL OF MINES
COLORADO STATE
COLORADO, U/
COLUMBIA UNIVERSITY
CONNECTICUT, U/
CORNELL UNIVERSITY
CREIGHTON UNIVERSITY
DAYTON, U/
DENISON UNIVERSITY
DETROIT MERCY, U/
DRAKE UNIVERSITY
DREXEL UNIVERSITY
DUKE UNIVERSITY
EAST CAROLINA UNIVERSITY
EAST TENNESSEE ST UNIV.
EASTERN KENTUCKY UNIV.
EMPORIA STATE UNIVERSITY
EVANSVILLE, U/
FAIRLEIGH DICKINSON UNIV.
FERRIS STATE UNIVERSITY
FLORIDA, U/
FLORIDA A&M
FLORIDA ATLANTIC UNIVERSITY
FLORIDA STATE UNIVERSITY
FORT HAYS STATE UNIVERSITY
FRESNO STATE UNIVERSITY
GEORGE MASON UNIVERSITY
GEORGIA , U/
GEORGIA STATE UNIVERSITY
GEORGIA TECH

                                       63
<PAGE>

HARTFORD, U/
HOFSTRA UNIVERSITY
HOUSTON UNIVERSITY
IDAHO, U/
IDAHO STATE UNIVERSITY
ILLINOIS , U/
ILLINOIS STATE UNIVERSITY
INDIANA STATE UNIVERSITY
INDIANA UNIV-PENNSYLVANIA
IOWA STATE UNIVERSITY
 JACKSONVILLE ST UNIV.
JAMES MADISON UNIVERSITY
KANSAS, U/
KANSAS STATE UNIVERSITY
KENTUCKY, U/
KENT STATE
LAMAR UNIVERSITY
LINCOLN UNIVERSITY
LOUISIANA-LAFAYETTE, U/
 LOUISIANA ST UNIV.
LOYOLA UNIVERSITY CHICAGO
MAINE, U/
MARSHALL U/ MARSHALL GRAD
MARYLAND, U/
MASSACHUSETTS - AMHERST, U/
MEMPHIS, U/
MERCER UNIVERSITY
MIAMI, U/
MIAMI UNIVERSITY - OHIO
MICHIGAN, U/
MICHIGAN STATE UNIVERSITY
MIDDLE TENNESSEE ST UNIV.
MINNESOTA STATE U- MANKATO
MISSISSIPPI, U/
MISSISSIPPI STATE UNIVERSITY
MISSOURI, U/
MISSOURI -KANSAS CITY, U/
MONTANA , U/
MONTANA STATE UNIVERSITY
MOREHEAD STATE UNIVERSITY
 U.S. NAVAL ACADEMY
NEBRASKA, U/
NEVADA, U/
NEVADA LAS VEGAS (UNLV)
NEW HAMPSHIRE, U/
NEW MEXICO, U/

                                       64
<PAGE>

NEW MEXICO ST UNIV.
NEW ORLEANS, U/
NEW YORK UNIV
NIAGRA UNIVERSITY
NORFOLK STATE UNIVERSITY
NORTH CAROLINA(UNC) CH. HILL
NO. CAROLINA- GREENSBORO
NORTH CAROLINA CENTRAL
NORTH CAROLINA CHARLOTTE
NO. CAROLINA ST. UNIV.
NO. CAROLINA- WILMINGTON
NORTH DAKOTA, U/
NORTH FLORIDA, U/
NORTHERN ARIZONA
NORTHERN ILLINOIS UNIV.
NORTHERN IOWA, U/
NOTRE DAME
OHIO UNIVERSITY
OKLAHOMA, U/
OKLAHOMA STATE UNIVERSITY
OLD DOMINION UNIVERSITY
ORAL ROBERTS UNIVERSITY
U/ OREGON
ORERGON STATE UNIVERSITY
PACIFIC, U/
PENNSYLVANIA, U/
PENN STATE UNIVERSITY
PITTSBURGH, U/
PORTLAND STATE UNIVERSITY
PRAIRIE VIEW A&M UNIVERSITY
PURDUE UNIVERSITY
RHODE ISLAND, U/
RICE UNIVERSITY
RUTGERS U/, NEW BRUNSWICK
SAINT LOUIS  UNIVERSITY
SAN DIEGO, U/
SAN DIEGO STATE UNIVERSITY
SAN JOSE STATE UNIVERSITY
SANTA CLARA UNIVERSITY
SLIPPERY ROCK-PENN, U/
SOUTH ALABAMA, U/
SOUTH CAROLINA, U/
SOUTH FLORIDA, U/
SOUTHEAST MISSOURI ST UNIV
SOUTHERN CONNECTICUT STATE
SOUTHERN ILLINOIS UNIV.

                                       65
<PAGE>

SOUTHERN METHODIST UNIV
SOUTHERN MISSISSIPPI, U/
ST. CLOUD STATE
ST. JOHN'S UNIVERSITY
STANFORD UNIVERSITY
SUNY AT ALBANY
SUNY BUFFALO-BUFFALO MED
SYRACUSE UNIVERSITY
TENNESSEE, U/
TENNESSEE, MARTIN U/
TENNESSEE, CHATTANOOGA U/
TENNESSEE, MEMPHIS U/
TENNESSEE STATE UNIVERSITY
TENNESSEE TECH UNIVERSITY
TEXAS, U/
TEXAS A&M UNIVERSITY
TEXAS CHRISTIAN UNIVERSITY
TEXAS TECH UNIVERSITY
TEXAS SOUTHERN UNIVERSITY
TOLEDO, U/
UTAH STATE UNIVERSITY
UTAH, U/
VALPARAISO UNIVERSITY
VANDERBILT  UNIVERSITY
VILLANOVA
VIRGINIA, U/
VIRGINIA COMMONWEALTH UNI.
VIRGINIA STATE UNIVERSITY
WAKE FOREST UNIVERSITY
WASHINGTON, U/
WASHINGTON UNIV.-ST LOUIS
WASHINGTON STATE UNIV.
WAYNE STATE UNIVERSITY
WEBER STATE UNIVERSITY
WESTERN ILLINOIS UNIV.
WESTERN KENTUCKY UNIV.
WISCONSIN, U/
WISCONSIN, U/ - MILWAUKEE
WISCONSIN, U/ - PLATTEVILLE
WISCONSIN, U/ - RIVER FALLS
WISCONSIN, U/ - STEVENS POINT
WISCONSIN, U/ - STOUT
WISCONSIN, U/ - WHITEWATER
WOFFORD COLLEGE

                                       66
<PAGE>

WRIGHT STATE UNIVERSITY
WYOMING, U/
YOUNGSTOWN STATE UNIV.

                                       67
<PAGE>

                                                                      Annex 1 to
                                              Guarantee and Collateral Agreement

         ASSUMPTION AGREEMENT, dated as of ________________, 200_, made by
______________________________ (the "Additional Grantor"), in favor of WACHOVIA
BANK, N.A., as collateral agent (in such capacity, the "Collateral Agent") for
the banks and other financial institutions or entities (the "Secured Parties")
parties to the Intercreditor Agreement referred to below. All capitalized terms
not defined herein shall have the meaning ascribed to them in such Intercreditor
Agreement.

                              W I T N E S S E T H :

         WHEREAS, the Secured Parties and the Collateral Agent have entered into
a Intercreditor Agreement, dated as of December 14, 2001 (as amended,
supplemented or otherwise modified from time to time, the "Intercreditor
Agreement");

         WHEREAS, in connection with the Intercreditor Agreement and the
Transaction Documents (as defined in the Guarantee and Collateral Agreement),
the Company and certain of its Affiliates (other than the Additional Grantor)
have entered into the Guarantee and Collateral Agreement, dated as of December
14, 2001 (as amended, supplemented or otherwise modified from time to time, the
"Guarantee and Collateral Agreement") in favor of the Collateral Agent for the
benefit of the Secured Parties;

         WHEREAS, Section 5.9(c) of the Guarantee and Collateral Agreement
requires the Additional Grantor to become a party to the Guarantee and
Collateral Agreement; and

         WHEREAS, the Additional Grantor has agreed to execute and deliver this
Assumption Agreement in order to become a party to the Guarantee and Collateral
Agreement;

         NOW, THEREFORE, IT IS AGREED:

         1. Guarantee and Collateral Agreement. By executing and delivering this
Assumption Agreement, the Additional Grantor, as provided in Section 8.14 of the
Guarantee and Collateral Agreement, hereby becomes a party to the Guarantee and
Collateral Agreement as a Grantor thereunder with the same force and effect as
if originally named therein as a Grantor and, without limiting the generality of
the foregoing, hereby expressly assumes all obligations and liabilities of a
Grantor thereunder. The information set forth in Annex 1-A hereto is hereby
added to the information set forth in the Schedules to the Guarantee and
Collateral Agreement. The Additional Grantor hereby represents and warrants that
each of the representations and warranties contained in Section 4 of the
Guarantee and Collateral Agreement is true and correct on and as the date hereof
(after giving effect to this Assumption Agreement) as if made on and as of such
date.

                                       68
<PAGE>

         2. GOVERNING LAW. THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF GEORGIA.

         IN WITNESS WHEREOF, the undersigned has caused this Assumption
Agreement to be duly executed and delivered as of the date first above written.

                                                     [ADDITIONAL GRANTOR]

                                                 By:___________________________
                                                     Name:
                                                     Title:

                                       69
<PAGE>

                                                                    Annex 1-A to
                                                            Assumption Agreement

                            Supplement to Schedule 1

                            Supplement to Schedule 2

                            Supplement to Schedule 3

                            Supplement to Schedule 4

                            Supplement to Schedule 5

                            Supplement to Schedule 6

                                       70

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