Exhibit 10.67


                         DEFERRED COMPENSATION AGREEMENT


This Deferred Compensation Agreement ("Agreement") is made between  ____________
"Employee")  and  Farah  U.S.A., Inc. ("Employer") on  the following  terms  and
conditions:

1.   Beginning  January  1,  1998 and  continuing  through  December  31,  1998,
     Employee and Employer agree that Employee's monthly salary shall be reduced
     5%  (must  be 5% or more)  each  month  during  the  aforementioned  period
     ("Deferred  Income") and the monthly payments of Employee's salary shall be
     recalculated accordingly.

2.   The following accrual, crediting and vesting rules shall apply with respect
     to this Agreement.

         a)       Employer  shall accrue on December 31, 1998 an amount equal to
                  the  Employee's  total  Deferred  Income during 1998 and shall
                  credit that sum to a separate  memorandum account on its books
                  ("_________ 1998 Deferral Account" or "Deferral Account").

         b)       In  addition,  on December  31,  1998  Employer  shall  accrue
                  and credit the following to the Employee's  Deferral  Account:
                  (i) an amount in lieu of interest equal to  the  sum of eleven
                  (11) amounts,  each such  amount calculated as of the last day
                  of each month during 1998 other than January 31 by multiplying
                  the  Farah U.S.A.,  Inc.  weighted  average  monthly  interest
                  rate on short-term borrowing during Farah U.S.A.,  Inc.'s most
                  recently  completed fiscal year (i.e., the fiscal  year  ended
                  October 31, 1998) by the Employee's  Deferred Income as of the
                  last  day  of the preceding  month pursuant to this  Agreement
                  (with   the   Employee's   Deferred   Income  pursuant to this
                  Agreement  with respect to each month deemed accrued as of the
                  last  day  of  such month) and (ii) five  percent  (5%) of the
                  Employee's total salary  during the time period  described  in
                  paragraph  1 above ("Matching  Amount").  No amount in lieu of
                  interest shall be accrued  or credited to the Deferral Account
                  for 1998 on the amounts described in (ii) above.

         c)       After  December  31,  1998,  until  payment  of the Employee's
                  vested  Deferral  Account  balance as provided in  paragraph 3
                  hereof, the Deferral Account  shall be credited on December 31
                  of each year with an amount in lieu of interest  calculated by
                  multiplying the Employee's  total Deferred Account  balance as
                  of that December 31 (including his Deferral  Income,  Matching
                  Amount and previously credited sums in lieu of interest) times
                  the Farah U.S.A., Inc. weighted  average annual  interest rate
                  on short-term  borrowing  during  Farah  U.S.A.,  Inc.'s  most
                  recently  completed  fiscal  year.  In  the event of a partial
                  calendar year time period,  the amount in lieu of interest for
                  post-1998 calendar  years shall be  calculated  as  previously
                  described  and prorated for the appropriate  time period using
                  the Farah U.S.A.,  Inc.  weighted average annual interest rate
                  on  short-term  borrowing  during  Farah  U.S.A. Inc.'s  prior
                  fiscal  year,  even  if  the partial calendar year time period
                  ends on or after the last day of Farah U.S.A.,  Inc.'s current
                  fiscal year.

         d)       Notwithstanding  the  foregoing to the  contrary,  if Employee
                  terminates his employment with Farah  Incorporated  and all of
                  its  wholly  owned  subsidiaries  incorporated  in the  United
                  States ("Farah Entities" or,  individually,  a "Farah Entity")
                  during  calendar year 1998,  the  following  rules shall apply
                  with respect to the matching  amount that  Employee  shall (or
                  shall not) be entitled to with respect to calendar year 1998:

                  (i)      If   Employee's   termination   of   employment   was
                           voluntary  and for a reason other than  retirement on
                           or  after  age  60  or  involuntary  and  for  cause,
                           Employee  shall not be entitled to nor credited  with
                           any  matching  amount with  respect to calendar  year
                           1998; and

                  (ii)     If Employee's termination of employment was voluntary
                           and  because  of  retirement  on  or after  age 60 or
                           involuntary  and  not  for  cause (including, but not
                           limited  to, termination of  employment  due to death
                           or permanent and total  disability),  Employee  shall
                           be  entitled  to  a  prorated   matching  amount with
                           respect  to  the   calendar   year   in   which   his
                           termination of employment  occurs  equal to five (5%)
                           of  Employee's  total  salary  during  the portion of
                           calendar  year  1998  with  respect  to  which he has
                           deferred compensation pursuant to Farah  Incorporated
                           1993 Unfunded  Deferred  Compensation Plan ("Plan").

         The Stock Option and  Compensation  Committee of the Board of Directors
         of  Farah  Incorporated  (or  its  authorized   representative)   shall
         determine, in its sole discretion,  whether the Employee is entitled to
         a  matching  amount  pursuant  to  the  foregoing  paragraphs  of  this
         Agreement  and the Plan  (including,  but not limited  to,  determining
         whether   Employee's   termination   of  employment  was  voluntary  or
         involuntary or for cause or not for cause).

         e)       If Employee terminates his employment with all Farah Entities,
                  Employee shall  receive  amounts  in lieu of  interest  in the
                  manner  described  in the  preceding paragraphs until  payment
                  of  Employee's  entire  vested  Deferred  Account  balance  is
                  made. However, notwithstanding  the foregoing to the contrary,
                  with respect to the calendar year in which the last payment is
                  made to Employee pursuant to paragraph 3 (or the only payment,
                  if a lump  sum  payment is to be made) of this  Agreement,  no
                  amounts in  lieu of  interest  shall  be accrued or paid later
                  than  the  date  of  such last  payment  and the rules for the
                  determination  of amounts in lieu of  interest  for    partial
                  calendar  year  time  periods  shall be  utilized to determine
                  the  amount in lieu of interest  which shall be included  with
                  the  last  payment  made  to  Employee  with  respect  to  the
                  Agreement.

3.       The  total  deferred  compensation  due to Employee,  consisting of the
         total amounts credited to and vested  in the  Deferral  Account,  shall
         be paid to the Employee  in the form of a lump sum on  January 9, 1999.
         Should  Employee  die  before  receiving  all  amounts  payable  to him
         pursuant  to  this Agreement,  and at such time is an employee of Farah
         Entity, the remaining amounts shall be paid in a lump sum (or in a lump
         sum to each  beneficiary if there is more  than  one  beneficiary,  the
         sum  of  which  shall  not  exceed  the  remaining  amounts  payable to
         Employee) 30 days after Employee's  death to his beneficiary(ies) under
         Employee's  primary  life  insurance  plan  (per  total  death  benefit
         payable  due to  Employee's  death) maintained  by a Farah  Entity with
         respect to  which a Farah  Entity  defrays or has  defrayed  Employee's
         cost of  coverage.  If  Employee  is not  employed  by  a Farah  Entity
         at the time of death, all unpaid amounts in the Deferral  Account shall
         be paid  in a lump sum 30 days after  Employee's death to the estate of
         the Employee.

4.       It is  specifically agreed that the amounts credited to Employee in the
         Deferral  Account  shall  not  be  held by a Farah  Entity  in a trust,
         escrow  or  similar  arrangement  or  other  fiduciary  capacity.   The
         Deferral Account  shall not be subject in any manner to  attachment  or
         other legal  process for debts of  Employee or  his successors or legal
         representatives  for  any reason;  and  neither Employee, nor any legal
         representative  or  successor  shall  have  any  right  against a Farah
         Entity with respect to any portion of the Deferral Account, except as a
         general  unsecured  creditor of a Farah Entity.  Neither Employee,  his
         successors  or legal  representatives  shall  have any right to assign,
         transfer, pledge, hypothecate, anticipate  or  otherwise  alienate  any
         payment of  deferred  compensation  to become due in the future to such
         person,  and  any  attempt to do so shall  be  void  and  will  not  be
         recognized by a Farah Entity.

5.       Employee  acknowledges that he has received a copy of the Plan and that
         he understands the terms and conditions of the Plan.

6.       Employee   agrees  that  by  executing   this   Agreement  he  and  his
         beneficiary(ies) and their successors or legal  representatives and any
         other person  claiming any amount  pursuant to this Agreement are bound
         by all of the terms of the Plan,  pursuant to which this  Agreement  is
         executed.

7.       Employee  agrees that his  election to defer  compensation  pursuant to
         this  Agreement  is  irrevocable  and no  sale,  transfer,  alienation,
         assignment,   pledge,  encumbrance,   garnishment,   collateralization,
         anticipation  or  attachment  of any  benefits  under the Plan shall be
         valid or recognized.


Executed this__________ day of ___________________, 1997.



                               EMPLOYER


                               By____________________________________________



                               EMPLOYEE


                               By____________________________________________
<PAGE>



Below is a list of variables to the Deferred  Compensation  Agreements chosen by
the officers required to file with this Form 10-K.
<TABLE>
<CAPTION>


         Name                       Period of Deferral                 % Deferred                Payment Date

<S>                                 <C>                                    <C>                    <C>

Richard C. Allender                 January 1, 1998 to                     5%                    January 9, 1999
                                    December 31, 1998

Jackie L. Boatman                   January 1, 1998 to                     5%                    January 9, 1999
                                    December 31, 1998

Russell G. Gibson                   January 1, 1998 to                     7%                    January 9, 1999
                                    December 31, 1998

Michael R. Mitchell                 January 1, 1998 to                     7%                    January 9, 1999
                                    December 31, 1998

</TABLE>
<PAGE>