REVOLVING CREDIT AND GUARANTY AGREEMENT



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                                      AMONG



                              POLYMER GROUP, INC.,

   A DEBTOR AND A DEBTOR-IN-POSSESSION UNDER CHAPTER 11 OF THE BANKRUPTCY CODE



                                   AS BORROWER



                                       AND



                 THE SUBSIDIARIES OF THE BORROWER NAMED HEREIN,

 EACH A DEBTOR AND A DEBTOR-IN-POSSESSION UNDER CHAPTER 11 OF THE BANKRUPTCY

                                      CODE



                                  AS GUARANTORS



                                       AND



                            THE LENDERS PARTY HERETO,



                                       AND



                              JPMORGAN CHASE BANK,



                  AS ADMINISTRATIVE AGENT, DOCUMENTATION AGENT

                              AND COLLATERAL AGENT



                          J.P. MORGAN SECURITIES INC.,

                                 AS BOOK MANAGER

                                       AND

                                  LEAD ARRANGER



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                            DATED AS OF MAY 30, 2002



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                                TABLE OF CONTENTS



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SECTION 1.   DEFINITIONS..........................................................................2

     SECTION 1.01    Defined Terms................................................................2

     SECTION 1.02    Terms Generally.............................................................21



SECTION 2.   AMOUNT AND TERMS OF CREDIT..........................................................21

     SECTION 2.01    Commitment of the Lenders...................................................21

     SECTION 2.02    Borrowing Base..............................................................22

     SECTION 2.03    Letters of Credit...........................................................22

     SECTION 2.04    Issuance....................................................................24

     SECTION 2.05    Nature of Letter of Credit Obligations Absolute.............................24

     SECTION 2.06    Making of Loans.............................................................24

     SECTION 2.07    Repayment of Loans; Evidence of Debt........................................25

     SECTION 2.08    Interest on Loans...........................................................26

     SECTION 2.09    Default Interest............................................................26

     SECTION 2.10    Optional Termination or Reduction of Commitment.............................26

     SECTION 2.11    Alternate Rate of Interest..................................................27

     SECTION 2.12    Refinancing of Loans........................................................27

     SECTION 2.13    Mandatory Prepayment; Commitment Termination; Cash Collateral...............28

     SECTION 2.14    Optional Prepayment of Loans; Reimbursement of Lenders......................28

     SECTION 2.15    Reserve Requirements; Change in Circumstances...............................30

     SECTION 2.16    Change in Legality..........................................................31

     SECTION 2.17    Pro Rata Treatment, etc.....................................................32

     SECTION 2.18    Taxes.......................................................................32

     SECTION 2.19    Certain Fees................................................................33

     SECTION 2.20    Commitment Fee..............................................................33

     SECTION 2.21    Letter of Credit Fees.......................................................33

     SECTION 2.22    Nature of Fees..............................................................33

     SECTION 2.23    Priority and Liens..........................................................34

     SECTION 2.24    Right of Set-Off............................................................35

     SECTION 2.25    Security Interest in Letter of Credit Account...............................35

     SECTION 2.26    Payment of Obligations......................................................36

     SECTION 2.27    No Discharge; Survival of Claims............................................36

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                                TABLE OF CONTENTS

                                   (CONTINUED)



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     SECTION 2.28    Use of Cash Collateral......................................................36



SECTION 3.   REPRESENTATIONS AND WARRANTIES......................................................36

     SECTION 3.01    Organization and Authority..................................................36

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