Document:

DH APPAREL COMPANY, INC.
                           INCENTIVE STOCK AWARD PLAN

                           Effective February 15, 2000
                       Amended and Restated March 15, 2000

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                            DH APPAREL COMPANY, INC.
                           INCENTIVE STOCK AWARD PLAN

                                    ARTICLE I
                                    THE PLAN

Sec. 1.1 NAME.

     This plan shall be known as the "Incentive Stock Award Plan" (the "Plan").

Sec. 1.2 PURPOSES

     The  purposes  of the Plan  are to  establish  or  increase  the  equitable
ownership in DH Apparel  Company,  Inc. (the  "Company") by key and middle level
management  employees  of the  Company  and/or its  subsidiaries  and to provide
incentives to key and middle level  management  employees of the Company  and/or
its subsidiaries  through the prospect of such common stock  ownership.  By thus
achieving  ownership or the prospect of ownership of the Company's  common stock
by  such  employees,  the  Company  expects  to  attract,  retain  and  motivate
exceptionally  well qualified and competent  individuals in key and middle level
management positions.

                                   ARTICLE II
                                  PARTICIPANTS

Sec. 2.1 ELIGIBILITY

     Any officer of other key  management  employee or middle  level  management
employee  of the  Company  or any  subsidiary  shall be  eligible  to receive an
Incentive Stock Award (an "Award").

                                   ARTICLE III
                                 ADMINISTRATION

Sec. 3.1 SELECTION OF AWARDS

     The  Board  of  Directors  (the  "Board")  of the  Company  shall  have the
authority from time to time to select key and middle level management  employees
("Participants")  to receive Awards and the number of shares to be awarded under
each such Award. In its  discretion,  the Board may delegate its authority under
the Plan to a committee of the Board (the "Committee") composed solely of two or
more  "Non-Employee  Directors" ( as defined in Rule 16b-3 promulgated under the
Securities Exchange Act of 1934, as amended, or any applicable successor rule or
regulation (the "Exchange Act").

Sec. 3.2 INTERPRETATION OF PLAN

     The Board (or Committee, as applicable) shall have full and final authority
to interpret  and  administer  the Plan and to determine and interpret the terms
and conditions of each Incentive Stock Award Agreement.

                                   Page 1 of 7
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                                   ARTICLE IV
                  SHARES ELIGIBLE TO BE GRANTED UNDER THE PLAN

Sec. 4.1 NUMBER OF SHARES

     Subject to the provisions of Section 4.2, the aggregate number of shares of
common stock of the Company which may be awarded under the Plan shall not exceed
200,000  shares.  Such  shares  may  be  either  shares  previously  issued  and
thereafter  acquired  by the  Company  or they may be  authorized  but  unissued
shares.  Any shares  covered  by an Award (or  portion  thereof)  that have been
forfeited  pursuant to the  provisions of the applicable  Incentive  Stock Award
Agreement shall again become available for the purposes of the Plan.

Sec. 4.2 ANTI-DILUTION

     In the event that the  outstanding  shares of common  stock of the  Company
hereafter are changed into or exchanged for a different number or kind of shares
or other securities of the Company or of another  corporation,  or cash or other
property,    by   reason   of   a   merger,    consolidation,    reorganization,
recapitalization,  reclassification,  combination of shares,  stock split, stock
dividend or similar event:

          (a) the  aggregate  number and kind of shares  subject to Awards which
     shall have been or may  thereafter be granted  hereunder  shall be adjusted
     appropriately; and

          (b) the new,  additional or different  shares and  securities  and the
     cash and other property into which the shares subject to outstanding Awards
     would have been  converted  (had the shares  covered  by such  Awards  been
     outstanding)  shall be considered to be property  granted by and subject to
     the Awards and shall be subject to all of the conditions  and  restrictions
     applicable to such Awards and the shares subject to such Awards.

     The foregoing  adjustments  and the manner of  application of the foregoing
provisions  shall  be  determined   solely  by  the  Board  (or  Committee,   as
applicable),  and  any  such  adjustment  may  provide  for the  elimination  of
fractional shares or security interests.

                                    ARTICLE V
                                      AWARD

Sec. 5.1 AWARD GRANT

     The Board (or Committee,  as applicable)  shall determine from time to time
who is to be a  Participant  and the number of shares to be  awarded;  provided,
that during any calendar year no Participant may be awarded an aggregate of more
than 75,000 shares of common stock under the Plan.  Such determination  shall be
recorded  in  the  minutes  of the meeting at which such determination was made.

                                   Page 2 of 7
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Sec. 5.2 INCENTIVE STOCK AWARD AGREEMENT

     A Participant  shall be entitled to receive an Award only upon execution of
an Incentive Stock Award Agreement with the Company.  Such Incentive Stock Award
Agreement shall be substantially in the form attached hereto but may be modified
form time to time by the Board (or Committee, as applicable) consistent with the
terms of this Plan.

Sec. 5.3 CASH PURCHASE PRICE OF STOCK

     The cash purchase price to be paid by each  Participant in connection  with
receiving  shares  covered  by an Award (or  portion  thereof)  that has  vested
pursuant to the provisions of an Incentive  Stock Award Agreement shall be $0.01
per share and such sum shall be payable prior to issuance to the  Participant of
the certificate(s) representing such shares.

Sec. 5.4 FORFEITURE OF AN AWARD (OR PORTION THEREOF)

     The Incentive Stock Award Agreement shall set forth the circumstances under
which the Award granted thereby (or portion  thereof) shall be forfeited.  These
circumstances  (i) may include the  termination of employment of the Participant
with the Company,  or any subsidiary  thereof,  for any reason other than death,
retirement  or permanent  total  disability,  prior to the date set forth in the
Incentive  Stock Award  Agreement when the Award (or relevant  portion  thereof)
shall vest, and (ii) may include such additional  circumstances as may be deemed
appropriate  by  the  Board  (or  Committee,  as  applicable).   The  forfeiture
circumstances  may vary  among the shares  covered by an Award.  In the event an
Award (or  portion  thereof)  shall be  forfeited  pursuant  to the terms of the
applicable  Incentive Stock Award Agreement,  the Participant  shall immediately
have no further  rights  under such Award (or portion  thereof) or in the shares
covered thereby.

Sec. 5.5 VESTING OF AN AWARD (OR PORTION THEREOF)

          (a)  The  Incentive   Stock  Award   Agreement  shall  set  forth  the
     circumstances  under which the Award granted  thereby (or portion  thereof)
     shall vest.  With respect to any Award (or portion of an Award) intended to
     qualify as  "performance-based  compensation" under Section 162(m)(4)(C) of
     the  Code  and  the   regulations   promulgated   thereunder,   (i)   these
     circumstances   shall   consist   of  the   achievement   of  one  or  more
     performance-based   goals   established   by  the   Committee,   and   such
     performance-based  goals shall be based on one of, or a combination of, the
     following factors,  as the Committee deems  appropriate:  total stockholder
     return;  revenues,  sales, net income,  EBIT, EBITDA,  stock price,  and/or
     earnings per share; return on assets, net assets, and/or capital; return on
     stockholders' equity;  debt/equity ratio; working capital; safety; quality;
     the Company's  financial  performance  or the  performance of the Company's
     stock versus peers; cost reduction;  productivity;  market mix; or economic
     value added;  (ii) the Committee  shall  establish the  performance-related
     goals in writing no later than 90 days after the commencement of the period
     of service to which the Award  relates (and in all events before 25% of the
     period of  service  has  elapsed);  and (iii) the Award  shall be made by a
     Committee,  which shall  consist  solely of two or more  directors  who are
     "outside  directors"  within the  meaning of  Treasury  Regulation  Section
     1.162-27(e)(3). The vesting circumstances may vary among the shares covered
     by an Award.

                                   Page 3 of 7
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          (b) In the event an Award (or portion  thereof) shall vest pursuant to
     the terms of the applicable  Incentive Stock Award  Agreement,  the Company
     shall  issue and  deliver,  or cause to be  issued  and  delivered,  to the
     Participant  or his or her legal  representative,  free from any legend and
     any other  restriction  (other  than  those  required  by  federal or state
     securities laws or any other applicable law), certificate(s) for the number
     of shares covered by the vested portion of the Award, subject to receipt by
     the Company of the cash purchase price  described in Section 5.3 above.  In
     addition,  at or about such time the Company shall pay the  Participant  in
     cash an amount that will be approximately sufficient,  after the payment of
     all applicable federal and state income taxes, to pay the federal and state
     income taxes which the  Participant  will incur by virtue of the vesting of
     such Award (or portion  thereof).  With respect to any Award (or portion of
     an Award)  intended to qualify as  "performance-based  compensation"  under
     Section   162(m)(4)(C)  of  the  Code  and  the   regulations   promulgated
     thereunder,  no issue of shares,  delivery of any  certificates or payments
     shall  occur,  however,  unless and until the Board (or the  Committee,  as
     applicable)   has  previously   certified  in  writing  that  the  relevant
     performance-based goal(s) have been met.

          (c) No stock certificate shall be delivered to a Participant or his or
     her legal  representative  unless and until the  Participant  or his or her
     legal representative shall have paid to the Company in cash the full amount
     of all federal and state  withholding or other  employment taxes applicable
     to the taxable  income of such  Participant  resulting  from the vesting of
     such Award (or portion thereof).

          (d) (i) Upon any Change of Control,  all  outstanding  Awards,  to the
     extent not  vested,  shall  become  immediately  vested in their  entirety.
     "Change of Control"  shall mean the occurrence of any one of the following:
     (a) the sale, lease, transfer,  conveyance or other disposition (other than
     by  way  of  merger  or  consolidation),  in one  or a  series  of  related
     transactions,  of all or substantially all of the assets of the Company and
     its  subsidiaries  taken as a whole to any "person"  (within the meaning of
     Section  13(d) of the  Exchange  Act) other  than one or more  wholly-owned
     subsidiaries  of the Company;  (b) the  adoption of a plan  relating to the
     liquidation  or  dissolution  of the Company;  (c) the first day on which a
     majority of the members of the Board are not Continuing  Directors;  or (d)
     the  consummation  of any  transaction  (including  without  limitation any
     merger,  share exchange or  consolidation)  the result of which is that any
     "person" (as defined above), other than an Exempt Person or Exempt Persons,
     becomes,  directly or  indirectly,  the  "beneficial  owner" (as defined in
     Rules  13d-3 and 13d-5  under the  Exchange  Act,  except that an entity or
     person shall be deemed to have  "beneficial  ownership"  of all shares that
     any such entity or person has the right to acquire,  whether  such right is
     exercisable immediately or only after the passage of time) of more than 30%
     of  the  outstanding  common  stock  of  the  Company;  provided  that  the
     transactions  covered by this clause (d) shall not include the  acquisition
     by the Company of its common stock; provided further,  however, that if (x)
     any  "person"  (as defined  above)  becomes,  directly or  indirectly,  the
     "beneficial  owner" (as defined above) of more than 30% of the  outstanding
     common  stock of the  Company  solely  as a result  of  acquisition  by the
     Company of its common  stock,  (y) such  "person"  thereafter  acquires any
     additional  shares of common stock of the Company and (z) immediately after
     such acquisition such "person" is, directly or indirectly,  the "beneficial
     owner" (as defined above) of 30% or more of the outstanding common stock of
     the Company, then such additional  acquisition shall constitute a Change of
     Control.

                                   Page 4 of 7
<PAGE>

          (ii) "Exempt Person" shall mean (a) the Company,  (b) any wholly-owned
     subsidiary of the Company,  (c) any individual who  immediately  before the
     transaction  is an  executive  officer  of the  Company,  (d) any  employee
     benefit plan of the Company or any of its wholly-owned  subsidiaries or (e)
     any entity or person  holding shares of common stock for or pursuant to the
     terms of any such plan if such entity or person is not a beneficiary  of or
     participant in such plan.

          (iii) "Continuing Directors" shall mean, as of any date, any member of
     the  Board  who (i) was a member  of the  Board on the date  this  Plan was
     adopted by the Board or (ii) was  nominated  for election or elected to the
     Board with the approval of a majority of the Continuing  Directors who were
     members of the Board at the time of such nomination or election.

Sec. 5.6 NO RIGHTS AS SHAREHOLDER

     Until the issuance and delivery to the  Participant of  certificate(s)  for
such  shares by reason of the  vesting  of an Award  (or  portion  thereof)  and
payment of the applicable cash purchase price,  the Participant  shall have none
of  the  rights of a shareholder with respect to the shares covered by an Award.

                                   ARTICLE VI
                                STOCK CERTIFICATE

Sec. 6.1 STOCK CERTIFICATES

     The  Company  shall not be  required  to issue or  deliver,  or cause to be
issued or delivered, any certificate for shares of stock of the Company pursuant
to an Incentive Stock Award Agreement executed hereunder prior to fulfillment of
all of the following conditions:

          (a) the  admission  of such shares to listing on any  over-the-counter
     markets and stock  exchanges on which the Company's stock is then traded or
     listed;

          (b) the completion of any registration or other  qualification of such
     shares  under any federal or state law or under the rulings or  regulations
     of  the  Securities  and  Exchange  Commission  or any  other  governmental
     regulatory  body, that the Board (or Committee,  as applicable) in its sole
     discretion deems necessary or advisable;

          (c) the obtaining of any approval or other  clearance from any federal
     or state governmental agency which the Board (or Committee,  as applicable)
     shall  in  its  sole discretion determine to be necessary or advisable; and

          (d) the lapse of such reasonable  period of time following the vesting
     of an Award (or portion thereof) as the Board (or Committee, as applicable)
     from  time to time may establish for reasons of administrative convenience.

                                   Page 5 of 7
<PAGE>

                                   ARTICLE VII
                 TERMINATION, AMENDMENT AND MODIFICATION OF PLAN

Sec. 7.1 TERMINATION, AMENDMENT AND MODIFICATION OF PLAN

     The Board (or Committee,  as  applicable)  may at any time and from time to
time and in any respect amend, modify or terminate the Plan; provided,  however,
that no such action of the Board (or Committee,  as applicable) without approval
of the shareholders of the Company may:

          (a) increase the total number of shares of common stock covered by the
     Plan except as contemplated in Section 4.2 hereof; or

          (b) change the $0.01 per share cash purchase price under Section 5.3;

provided  further,  that no  termination,  amendment or modification of the Plan
shall in any manner,  without the consent of the  Participant,  affect any Award
previously made to a Participant under the Plan.

                                  ARTICLE VIII
                                  MISCELLANEOUS

Sec. 8.1 EMPLOYMENT

     Nothing in this Plan or in any Award granted  hereunder or in any Incentive
Stock Award Agreement  relating thereto shall confer upon any employee the right
to continue in the employ of the Company or any subsidiary.

Sec. 8.2 OTHER COMPENSATION PLANS

     The adoption of this Plan shall not affect any other existing  incentive or
compensation  plans of the  Company  or any  subsidiary,  nor  shall  this  Plan
preclude  the Company  from  establishing  any other forms of incentive or other
compensation for employees of the Company or any subsidiary.

Sec. 8.3 PLAN BINDING ON SUCCESSORS

     This Plan shall be binding upon the successors and assigns of the Company.

Sec. 8.4 SINGULAR, PLURAL; GENDER; HEADINGS

     Whenever used herein,  nouns in the singular shall include the plural,  and
the masculine  pronoun shall include the feminine  gender.  The headings in this
Plan or any  Incentive  Stock  Award  Agreement  are and shall be for  reference
purposes  only and shall not affect  the  meaning  or  interpretation  hereof or
thereof.

                                   Page 6 of 7

<PAGE>

Sec. 8.5 AWARD NOT TRANSFERABLE

     A Participant  shall have no right to transfer,  assign or  hypothecate  an
Award or, until the portion of an Award  covering  such shares  shall vest,  the
shares  covered  by an  Award,  other  than by will or the laws of  descent  and
distribution,  and the rights of any  purported  owner,  holder,  pledgee or any
other  person in  possession  of or  claiming  any right in such Award or shares
shall at all times be subject to the  provisions of this Plan and the applicable
Incentive Stock Award Agreement.

Sec. 8.6 GOVERNING LAW

     This Plan shall be governed,  interpreted  and enforced in accordance  with
the laws of South Carolina without regard to choice of law principles.

                                   Page 7 of 7
<PAGE>DUCK HEAD APPAREL COMPANY, INC.

                           DEFERRED COMPENSATION PLAN

                                       FOR

                                  KEY MANAGERS

                               Effective [ ], 2000

                                        1
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                                                 TABLE OF CONTENTS

                                                                                                          Page
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ARTICLE I. REFERENCES, CONSTRUCTION AND DEFINITIONS....................................................      1
         1.1      Adjustment Date......................................................................      1
         1.2      Beneficiary..........................................................................      1
         1.3      Board................................................................................      2
         1.4      Code.................................................................................      2
         1.5      Committee............................................................................      2
         1.7      Compensation.........................................................................      2
         1.8      Deemed Deferrals.....................................................................      2
         1.9      Deferral Account.....................................................................      3
         1.10     Deferral Election....................................................................      3
         1.11     Disability...........................................................................      4
         1.12     Effective Date.......................................................................      4
         1.13     Elective Deferrals...................................................................      4
         1.14     Elective 401(k) Deferrals............................................................      4
         1.15     Employee.............................................................................      4
         1.16     Employment Year......................................................................      4
         1.17     ERISA................................................................................      4
         1.18     Hour of Service......................................................................      4
         1.19     Installment Account..................................................................      5
         1.20     Interest Equivalent..................................................................      5
         1.21     Lump Sum Account.....................................................................      5
         1.22     Month of Service.....................................................................      5
         1.23     Named Fiduciary......................................................................      5
         1.24     Participant..........................................................................      5
         1.25     Participating Company................................................................      5
         1.26     Plan.................................................................................      5
         1.27     Plan Administrator...................................................................      5
         1.28     Plan Year............................................................................      5
         1.29     Retirement...........................................................................      5
         1.30     Savings Plan.........................................................................      6
         1.31     Termination of Service...............................................................      6
         1.32     Trigger Event........................................................................      6
         1.33     Year of Service......................................................................      6

ARTICLE II. ELIGIBILITY AND PARTICIPATION..............................................................      6
         2.1      Eligibility..........................................................................      6
         2.2      Participation........................................................................      6
         2.3      Elective Deferrals...................................................................      6
         2.4      Limitations on Elective Deferrals....................................................      7
         2.5      Deemed Deferrals.....................................................................      7
         2.6      Method-of-Payment Election...........................................................      7

ARTICLE III. ACCOUNTS OF PARTICIPANTS..................................................................      7
         3.1      Accounts.............................................................................      7
         3.2      Accounting of Lump Sum Account.......................................................      7
         3.3      Accounting of Installment Account....................................................      8
         3.4      Accounting of Level-Payment Installment Account .....................................      8

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ARTICLE IV. VESTING....................................................................................      9
ARTICLE V. BENEFITS....................................................................................      9
         5.1      Method and Timing....................................................................      9
         5.2      Payments to Beneficiary..............................................................      10
         5.3      Withholding Taxes; Employment Taxes..................................................      10
         5.4      Payments To Relieve Financial Hardship...............................................      10

ARTICLE VI. DESIGNATION OF BENEFICIARIES...............................................................      10
         6.1      Beneficiary Designation..............................................................      10
         6.2      Failure to Designate Beneficiary.....................................................      11

ARTICLE VII. COMMITTEE.................................................................................      11
         7.1      Authority............................................................................      11
         7.2      Voting...............................................................................      11
         7.3      Records..............................................................................      11
         7.4      Liability............................................................................      11
         7.5      Ministerial Duties...................................................................      11

ARTICLE VIII. AMENDMENT AND TERMINATION................................................................      11

ARTICLE IX. CLAIMS PROCEDURE...........................................................................      12
         9.1      Filing of a Claim for Benefits.......................................................      12
         9.2      Notification to Claimant of Decision.................................................      12
         9.3      Procedure for Review.................................................................      12
         9.4      Decision on Review...................................................................      12
         9.5      Action by Authorized Representative of Claimant......................................      13

ARTICLE X. MISCELLANEOUS ..............................................................................      13
         10.1     Nonalienation of Benefits............................................................      13
         10.2     No Trust Created.....................................................................      13
         10.3     No Employment Agreement..............................................................      13
         10.4     Funding Policy.......................................................................      13
         10.5     Binding Effect.......................................................................      13
         10.6     Entire Plan..........................................................................      14
         10.7     Merger or Consolidation..............................................................      14
         10.8     Payment to Incompetent...............................................................      14
         10.9     No Contributions.....................................................................      14
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                                       ii
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                         DUCK HEAD APPAREL COMPANY, INC.
                           DEFERRED COMPENSATION PLAN
                                       FOR
                                  KEY MANAGERS

                         EFFECTIVE [_____________, 2000]

                                    PREAMBLE

The  Participating  Companies have  established this Plan to contribute to their
long-range  growth. It is the intention of the parties that the Plan be unfunded
for tax purposes and for purposes of Title I of ERISA. A  Participating  Company
shall be liable only with respect to obligations  incurred pursuant to this Plan
for its own Employees;  no Participating Company shall be liable with respect to
benefits  due an Employee of any other  Participating  Company.  Under the Plan,
each year, each Participating Company awards a select group of its key Employees
with deferred benefits based on the Employee's Elective and Deemed Deferrals for
the year. Such benefits are normally  payable by that  Participating  Company to
its Employees or their  beneficiaries  upon  Retirement,  Disability,  death, or
other Termination of Service.

               ARTICLE I. REFERENCES, CONSTRUCTION AND DEFINITIONS

Unless otherwise indicated, all references to articles, sections and subsections
shall be to the Plan as set forth  herein.  The Plan and all  rights  thereunder
shall be  construed  and enforced in  accordance  with ERISA and the laws of the
State of South Carolina, to the extent that each may be applicable.  The article
titles and the captions  preceding  sections and subsections  have been inserted
solely as a matter  of  convenience  and in no way  define or limit the scope or
intent of any  provisions.  Whenever  used  herein,  the  singular  includes the
plural,  the  masculine   includes  the  feminine.   Whenever  used  herein  and
capitalized,  the following  terms shall have the respective  meaning  indicated
unless the context plainly requires otherwise.

1.1  ADJUSTMENT  DATE.  The last  day of each  calendar  quarter,  the date of a
     Trigger Event, and such other times as the Committee shall establish.

1.2  BENEFICIARY.  The beneficiary or beneficiaries  designated by a Participant
     pursuant  to ARTICLE VI to receive the amount,  if any,  payable  under the
     Plan upon the death of such  Participant,  or, where there has been no such
     designation or an invalid  designation,  the  individual or entity,  or the
     individuals or entities, who will receive such amount.

1.3  BOARD.  The  respective  Boards of Directors  of each of the  Participating
     Companies.

1.4  CODE.  The Internal  Revenue  Code of 1986,  as amended.  All  citations to
     sections of the Code are to such  sections as they may from time to time be
     amended or renumbered.

1.5  COMMITTEE.  The  committee  which  administers  the Plan and  which is more
     particularly  described  in  ARTICLE  VII  below.  The  Committee  shall be
     constituted by the individuals who hold the following  offices of Duck Head
     Apparel  Company,  Inc.: Vice President,  Vice President -  Administration,
     Human Resources, Director and Controller.

1.7  COMPENSATION.  Compensation  with  respect  to any  Participant  means such
     Participant's  wages as  defined  in Code  Ssection  3401(a)  and all other
     payments of compensation by a Participating Company (in the course of the

                                       1
<PAGE>

     Participating   Company's   business   for  a  Plan   Year  for  which  the
     Participating  Company is  required to furnish  the  Participant  a written
     statement  under  Code  Sections   6041(d),   6051(a)(3)  and  6052).   The
     determination  of Compensation  shall be made by excluding moving expenses,
     income from stock options,  income from stock awards, income from incentive
     stock awards.

1.8  DEEMED DEFERRALS. With respect to a Participant, an amount equal to the sum
     of subsections (a) and (b) below:

     (a)  During each Plan Year, the difference between:

          (i)  the Nonelective  Contribution and forfeitures  allocation for the
               Plan Year which  would have been  credited  to the account of the
               Participant  in the Savings Plan had the  Participant's  Elective
               Deferrals  under  this Plan  counted  as  compensation  under the
               Savings Plan for the Plan Year and had there been disregarded the
               compensation   and  annual   addition   limitations  of  Sections
               401(a)(17) and 415 of the Code and the  corresponding  provisions
               of the Savings Plan, and

          (ii) the  Nonelective  Contribution  and forfeitures for the Plan Year
               actually  credited  to the  Participant's  account in the Savings
               Plan; plus

     (b)  Subject to the limitations set forth in subsection  (b)(ii) below, and
          less the amount set forth in subsection  (b)(iii)  below,  during each
          Plan Year, the following amount:

          (i)  effective as of July 1, 1999,  an amount  equal to the  following
               percentage of the  Participant's  Elective  401(k)  Deferrals for
               such Plan Year:

                  # Years of Service                % of the Participant's
                                                   Elective 401(k) Deferrals
                            0-5                               25%
                           5-10                               30%
                           11-15                              35%
                           16 and over                        40%

          (ii) The  amount  computed  under  subsection  (b)(i)  above  shall be
               limited as follows:

               (A)  the above percentages shall not be applied to any portion of
                    the  Participant's  Elective 401(k)  Deferrals which exceeds
                    four percent (4%) of the Participant's Compensation,  and in
                    computing  the  Participant's  Compensation,  there shall be
                    disregarded  any portion of  Compensation  which  exceeds an
                    amount  equal  to the  compensation  limitation  of  Section
                    401(a)(17)  of the Code as  adjusted  as of the start of the
                    Plan Year (e.g., $160,000 for 1998);

               (B)  the above percentages shall not be applied to any portion of
                    the Participant's Elective 401(k) Deferrals which exceeds an
                    amount  equal  to the  amount  set  forth  in  Code  Section
                    402(g)(1)  as  adjusted  as of the  start of the  Plan  Year
                    (e.g., $10,000 for 1998); and

               (C)  for purposes of the above formula,  "Years of Service" shall
                    be  calculated  from the  Participant's  most recent date of
                    hire.  With respect to a Participant who (i) was employed by
                    an  entity  that was a  Participating  Company  (the  "Prior
                    Employer")   under  the  Delta   Woodside   Group   Deferred
                    Compensation Plan for Key Managers on January 1, 2000 and

                                        2
<PAGE>

          (ii) in  connection   with  the   distribution   from  Delta  Woodside
               Industries, Inc. to its shareholders of all of the stock of Delta
               Apparel,    Inc.    and   Duck Head Apparel Company,   Inc.    on
               [___________________,  2000] (the "DWI Reorganization") became an
               employee of the Participating  Company (under this Plan) by which
               the Participant is currently  employed,  the "most recent date of
               hire" shall be the most recent date of hire of the Participant by
               the Prior Employer preceding the DWI Reorganization.

          (iii)from the amount  computed  pursuant to  subsection  (b)(i)  above
               (and as limited as provided in  subsection  (b)(ii)  above),  the
               amount   of   any   matching   contribution   allocated   to  the
               Participant's  account  under the Savings  Plan for the Plan Year
               shall be subtracted.

1.9  DEFERRAL  ACCOUNT.   With  respect  to  each   Participant,   the  separate
     bookkeeping  account  (consisting  of the  Participant's  Lump Sum Account,
     Installment Account and Level-Payment  Installment Account) to be kept with
     respect to such Participant.

1.10 DEFERRAL  ELECTION.  An  irrevocable  election by a Participant  to defer a
     portion of  Compensation  for a Plan Year,  such election to be made in the
     manner  prescribed  in Section  2.3.  Amounts  so  deferred  are  "Elective
     Deferrals."

1.11 DISABILITY.  A  physical  or mental  condition  under  which  the  Employee
     qualifies for disability  benefits under the long-term  disability  plan of
     the Participating Company which employs the Employee; provided, however, if
     the  Employee is not covered by such plan,  the  Employee  shall be under a
     Disability if he would have  qualified for  disability  benefits  under the
     plan were he covered by the plan;  provided,  further,  if there is no such
     plan,  the Employee  shall be under a Disability if the  Committee,  in the
     exercise  of its  sole  and  absolute  discretion,  determines  based  upon
     competent medical evidence satisfactory to the Committee that the Employee,
     after 60 days  following  the  expiration  of any  sick  pay to  which  the
     Participant may be entitled,  cannot perform each of the material duties of
     the Employee's regular occupation by reason of sickness or injury .

1.12 EFFECTIVE DATE. The Effective Date of this Plan is [_______________, 2000].

1.13 ELECTIVE  DEFERRALS.  With respect to a  Participant  for a Plan Year,  the
     amount of the  Participant's  Compensation  deferred pursuant to a Deferral
     Election.

1.14 ELECTIVE 401(K)  DEFERRALS.  With respect to a Participant for a Plan Year,
     the  Participant's  elective  deferrals under the Savings Plan for the plan
     year of the Savings Plan corresponding to the Plan Year.

1.15 EMPLOYEE.  An individual in the service of the Participating Company if the
     relationship  between  him  and  the  Participating  Company  is the  legal
     relationship of employer and employee.

1.16 EMPLOYMENT  YEAR. The 12-month  period  beginning on the Employee's date of
     hire.

1.17 ERISA. The Employee Retirement Income Security Act of 1974, as amended. All
     citations  to sections of ERISA are to such  sections as they may from time
     to time be amended or renumbered.

1.18 HOUR OF  SERVICE.  An Hour of  Service  means  (1) each  hour for  which an
     Employee is directly or indirectly  compensated or entitled to compensation
     by a  Participating  Company  for the  performance  of  duties  during  the
     applicable  computation  period;  (2) each  hour for which an  Employee  is
     directly  or  indirectly  compensated  or  entitled  to  compensation  by a
     Participating Company (irrespective of whether the

                                        3
<PAGE>

     employment  relationship has terminated) for reasons other than performance
     of duties (such as vacation,  holidays,  sickness,  jury duty,  disability,
     lay-off,   military  duty  or  leave  of  absence)  during  the  applicable
     computation  period;  (3) each hour for which back pay is awarded or agreed
     to by a  Participating  Company  without  regard to  mitigation of damages.
     These hours will be credited to the Employee for the computation  period or
     periods  to  which  the  award  or  agreement   pertains  rather  that  the
     computation  period in which the award,  agreement or payment is made.  The
     same Hours of Service  shall not be credited  both under (1) or (2), as the
     case may be, and under (3).

1.19 INSTALLMENT  ACCOUNT.  With  respect  to  each  Participant,   the  account
     described in Section 3.3 below.

1.20 INTEREST  EQUIVALENT.  With  respect to each  Adjustment  Date,  the dollar
     amount  to be added to the  Participant's  Lump  Sum  Account,  Installment
     Account or Level-Payment  Installment Account, as the case may be, equal to
     the product of the amount  credited to the account as of the next preceding
     Adjustment Date reduced by one-half of the amount of benefit  payments made
     since  the next  preceding  Adjustment  Date  (i.e.,  during  the  "current
     calendar  quarter")  and  increased  by one-half of the Elective and Deemed
     Deferrals  for the "current  calendar  quarter"  allocable to such account,
     times  the  greater  of (i) the  Average  AAA  Corporate  Bond  Yield  last
     published by Moody's Bond Survey before the next preceding  Adjustment Date
     or (ii) such other  interest or yield rate as the  Committee  may designate
     for the Plan Year ending on such Adjustment Date.

1.21 LUMP SUM ACCOUNT.  With respect to each Participant,  the account described
     in Section 3.2 below.

1.22 MONTH OF SERVICE. A Month of Service means a calendar month during any part
     of which an Employee completed an Hour of Service; provided,  however, that
     a  Participant  shall be  credited  with a Month of Service  for each month
     during  the  12-month  computation  period in which he has not  incurred  a
     1-Year Break in Service.

1.23 NAMED FIDUCIARY. Delta Apparel, Inc.

1.24 PARTICIPANT. An Employee who has been notified pursuant to Section 2.1 that
     he is  eligible  to  participate  in the Plan  and who has made a  Deferral
     Election and any former Employee who has a Deferral Account under the Plan.

1.25 PARTICIPATING   COMPANY.   Duck  Head  Apparel   Company,   Inc.  The  term
     "Participating  Company"  shall be construed as if the Plan were solely the
     Plan of such  Participating  Company,  unless the context plainly  requires
     otherwise.  Notwithstanding  anything  herein  to the  contrary,  with  the
     consent  of Duck Head  Apparel  Company,  Inc.,  any other  corporation  or
     entity,  whether an affiliate or subsidiary or not, may adopt this plan and
     all of the  provisions  hereof,  and  participate  herein and be known as a
     Participating Company.

1.26 PLAN. The Duck Head Apparel Company,  Inc.  Deferred  Compensation Plan for
     Key  Managers as  contained  herein and as may be amended from time to time
     hereafter.

1.27 PLAN ADMINISTRATOR. The Committee.

1.28 PLAN YEAR. The period commencing January 1 and ending on the first December
     31 thereafter.

1.29 RETIREMENT.  Termination of Service,  other than on account of death, after
     attaining age 62.

                                        4
<PAGE>

1.30 SAVINGS PLAN. The Duck Head Apparel  Company,  Inc.  Savings and Investment
     Plan, a 401(k)  profit-sharing  plan qualified  under Section 401(a) of the
     Code, and any successor plan.

1.31 TERMINATION OF SERVICE.  Termination of the Participant's employment with a
     Participating Company for any reason; provided,  however, that the transfer
     of an Employee from employment by one  Participating  Company or affiliated
     company to  employment  by  another  Participating  Company  or  affiliated
     company shall not constitute a Termination of Service.

1.32 TRIGGER EVENT. A Trigger Event is either of the following: (a) The last day
     of the fiscal quarter of Duck Head Apparel Company, Inc. if as of such date
     the   Cumulative   Net  Loss  exceeds  30%  of   Shareholders'   Equity  at
     Reorganization. "Cumulative Net Loss" shall mean the aggregate net loss, if
     any, for the period beginning with the date of the DWI  Reorganization  and
     ending with the last day of the relevant  fiscal  quarter.  The date of the
     DWI  Reorganizastion is the date of the distribution to the shareholders of
     Delta Woodside Indusries, Inc. of the stock of the DH Apparal Company, Inc.
     and Delta Apparel, Inc. "Shareholders' Equity at Reorganization" shall mean
     the shareholders'  equity in the Company immediately  following the date of
     the DWI Reorganization;  provided, that the Trigger Event described in this
     Section 1.32(a) shall  constitute a Trigger Event for purposes of this Plan
     only with  respect to benefits  accrued  under the Plan after the date that
     Delta Woodside Industries,  Inc. distributes to its shareholders all of the
     stock of Delta  Apparel,  Inc. and DH Apparel  Company,  Inc. in connection
     with the DWI Reorganization; and,

(b)  Any other event designated as a "Trigger Event" by action of the Board of a
     Participating  Company in the exercise of its sole and absolute discretion.
     No event  shall  qualify as a Trigger  Event  merely  because the Board has
     previously designated one or more similar events as a Trigger Event.

1.33 YEAR OF SERVICE.  Any twelve  consecutive  Months of  Service.  For vesting
     purposes, the computation period shall be the Employment Year. For purposes
     of Deemed  Deferrals only, the  computation  period shall be the Employment
     Year;  however,  only Years of Service from the  Participant's  most recent
     date  of  hire  shall  be  considered;  provided  that  with  respect  to a
     Participant  who (i) was  employed  by an entity  that was a  Participating
     Company (the "Prior  Employer")  under the Delta  Woodside  Group  Deferred
     Compensation  Plan  for  Key  Managers  on  January  1,  2000  and  (ii) in
     connection  with  the  DWI  Reorganization,   became  an  employee  of  the
     Participating  Company  (under  this  Plan) by  which  the  Participant  is
     currently employed, the "most recent date of hire" shall be the most recent
     date of hire of the  Participant  by the Prior  Employer  preceding the DWI
     Reorganization. For all other purposes, the computation period shall be the
     Plan Year.

                    ARTICLE II. ELIGIBILITY AND PARTICIPATION

2.1  ELIGIBILITY.  Such Employees as the Committee  designates shall be eligible
     to participate in this Plan; provided, however, that no Employee who is not
     a member of the  "select  group of  management"  or a  "highly  compensated
     employee,"  as defined in Ssections  201(2),  301(a)(3) and 401(a) of ERISA
     shall be eligible to become a Participant.

2.2  PARTICIPATION.  The Committee  shall notify each Employee  selected to be a
     Participant  of the  Employee's  eligibility,  and an  Employee so notified
     shall become a Participant by making a Deferral Election.

2.3  ELECTIVE DEFERRALS.  For each Plan Year, each eligible Employee is entitled
     to make a  Deferral  Election,  in such  manner  and form as the  Committee
     prescribes,  to defer Compensation for the Plan Year. Except in the case of
     an "unforeseeable emergency" as defined in Section 5.4 below, such election
     shall be irrevocable during the Plan Year. Deferral Elections shall be made
     as follows: (a) within 30 days following the adoption of this Plan to defer
     Compensation  to be earned  subsequent  to the  Deferral  Election  for the
     remainder of such

                                        5
<PAGE>

     Plan Year; (b) within 30 days following the date on which an Employee first
     becomes  eligible to participate in this Plan to defer  compensation  to be
     earned  subsequent to the Deferral  Election for the remainder of such Plan
     Year;  or (c)  in  all  other  cases  on or  before  December  31 to  defer
     compensation  to  be  earned  in  succeeding  Plan  Years.   The  foregoing
     notwithstanding,  each  eligible  Employee  may  make  a  special  Deferral
     Election with respect to each bonus to which the Employee becomes entitled,
     provided that such Deferral Election is made before the Employee earns such
     bonus.

2.4  LIMITATIONS ON ELECTIVE DEFERRALS. The maximum amount of Elective Deferrals
     a Participant  may make for a Plan Year shall be One Hundred percent (100%)
     of the  Participant's  Compensation  which would  otherwise  be paid to the
     Participant  during  the Plan  Year and  which is not  subject  to  another
     deferral agreement or other withholding.

2.5  DEEMED DEFERRALS. In addition to any Elective Deferrals, for each Plan Year
     for which a Participant has made a Deferral Election, the Participant shall
     receive credit for Deemed Deferrals.

2.6  METHOD-OF-PAYMENT  ELECTION.  Contemporaneously  with  the  making  of each
     Deferral Election,  the Participant shall designate on a form prescribed by
     the  Committee  for such  purpose  whether  the  benefits  pursuant to such
     Deferral  Election  are  to  be  paid  in a  single  sum,  installments  or
     level-payment installments, as provided in Section 5.1(a). If a Participant
     fails to make such  method-of-payment  election,  the Participant  shall be
     deemed to have elected installment payments.

                      ARTICLE III. ACCOUNTS OF PARTICIPANTS

3.1  ACCOUNTS.  The Committee shall  establish and cause to be maintained  three
     separate  accounts for each  Participant  to be known  respectively  as the
     Participant's "Lump Sum Account," "Installment Account," and "Level-Payment
     Installment Account."

3.2  ACCOUNTING OF LUMP SUM ACCOUNT.  As of each Adjustment  Date, the Committee
     shall debit and credit each Participant's Lump Sum Account in the following
     order:

     (A)  PAYMENTS.  There shall be debited the amount of benefit  payments made
          to or on behalf of the  Participant or the  Participant's  Beneficiary
          during the Plan Year ending on the Adjustment Date (i.e., the "current
          calendar quarter") and allocable to such Lump Sum Account.

     (B)  INTEREST  EQUIVALENT.  The Committee,  in the exercise of its sole and
          absolute  discretion,  shall determine the Interest Equivalent for the
          "current  calendar  quarter"  and there shall be credited the Interest
          Equivalent, if any, for such Lump Sum Account.

     (C)  ELECTIVE DEFERRALS. If the Participant elected pursuant to Section 2.6
          for benefits  payable under a Deferral  Election for the "current Plan
          Year" to be paid in a single sum,  then there  shall be  credited  the
          Participant's  Elective  Deferrals  made  pursuant  to  such  Deferral
          Election for the "current Plan Year."

     (D)  DEEMED DEFERRALS.  If the Participant  elected pursuant to Section 2.6
          for benefits  payable under a Deferral  Election for the "current Plan
          Year" to be paid in a single sum,  then there  shall be  credited  the
          Participant's Deemed Deferrals relating to such Deferral Election.

     (E)  ADMINISTRATIVE  EXPENSES.  The Committee,  in the exercise of its sole
          and absolute  discretion,  shall  determine the amount of the expenses
          each Participating Company incurred for the "current Plan Year" in

                                        6
<PAGE>

          administering  the Plan.  There shall be debited  such  portion of the
          amount of such administrative expenses as the Committee determines, in
          the exercise of its sole and absolute discretion, to be equitable.

3.3  ACCOUNTING  OF  INSTALLMENT  ACCOUNT.  As  of  each  Adjustment  Date,  the
     Committee shall debit and credit each Participant's  Installment Account in
     the following order:

     (A)  PAYMENTS.  There shall be debited the amount of benefit  payments made
          to or on behalf of the  Participant or the  Participant's  Beneficiary
          during the Plan Year ending on the Adjustment Date (i.e., the "current
          calendar quarter") and allocable to such Installment Account.

     (B)  INTEREST  EQUIVALENT.  The Committee,  in the exercise of its sole and
          absolute  discretion,  shall determine the Interest Equivalent for the
          "current  calendar  quarter"  and there shall be credited the Interest
          Equivalent,  if any, for such  Installment  Account on the last day of
          the calendar quarter.

     (C)  ELECTIVE DEFERRALS. If the Participant elected pursuant to Section 2.6
          for benefits  payable under a Deferral  Election for the "current Plan
          Year" to be paid in  installments,  then there shall be  credited  the
          Participant's  Elective  Deferrals  made  pursuant  to  such  Deferral
          Election for the "current Plan Year."

     (D)  DEEMED DEFERRALS.  If the Participant  elected pursuant to Section 2.6
          for  benefits  payable  under  a  Deferral  Election  to  be  paid  in
          installments, then there shall be credited for the "current Plan Year"
          the Participant's Deemed Deferrals relating to such Deferral Election.

     (E)  ADMINISTRATIVE  EXPENSES.  The Committee,  in the exercise of its sole
          and absolute  discretion,  shall  determine the amount of the expenses
          each  Participating  Company  incurred for the "current  Plan Year" in
          administering  the Plan.  There shall be debited  such  portion of the
          amount of such administrative expenses as the Committee determines, in
          the exercise of its sole and absolute discretion, to be equitable.

3.4  ACCOUNTING OF  LEVEL-PAYMENT  INSTALLMENT  ACCOUNT.  As of each  Adjustment
     Date, the Committee shall debit and credit each Participant's Level-Payment
     Installment Account in the following order:

     (A)  PAYMENTS.  There shall be debited the amount of benefit  payments made
          to or on behalf of the  Participant or the  Participant's  Beneficiary
          during the Plan Year ending on the Adjustment Date (i.e., the "current
          calendar  quarter")  and allocable to such  Level-Payment  Installment
          Account.

     (B)  INTEREST  EQUIVALENT.  The Committee,  in the exercise of its sole and
          absolute  discretion,  shall determine the Interest Equivalent for the
          "current  calendar  quarter"  and there shall be credited the Interest
          Equivalent,  if any, for such Level-Payment Installment Account on the
          last day of the calendar quarter; provided that no Interest Equivalent
          shall be credited  for such  Level-Payment  Installment  Account on or
          after the date that the  Participant  first receives a monthly benefit
          payment pursuant to Section 5.1(a)(ii)(B).

     (C)  ELECTIVE DEFERRALS. If the Participant elected pursuant to Section 2.6
          for benefits  payable under a Deferral  Election for the "current Plan
          Year" to be paid in  level-payment  installments,  then there shall be
          credited the  Participant's  Elective  Deferrals made pursuant to such
          Deferral Election for the "current Plan Year."

     (D)  DEEMED DEFERRALS.  If the Participant  elected pursuant to Section 2.6
          for  benefits  payable  under  a  Deferral  Election  to  be  paid  in
          level-payment  installments,  then  there  shall be  credited  for the
          "current Plan Year" the  Participant's  Deemed  Deferrals  relating to
          such Deferral Election.

                                        7
<PAGE>

     (E)  ADMINISTRATIVE  EXPENSES.  The Committee,  in the exercise of its sole
          and absolute  discretion,  shall  determine the amount of the expenses
          each  Participating  Company  incurred for the "current  Plan Year" in
          administering  the Plan.  There shall be debited  such  portion of the
          amount of such administrative expenses as the Committee determines, in
          the exercise of its sole and absolute discretion, to be equitable.

                               ARTICLE IV. VESTING

Participants  are always One  Hundred  percent  (100%)  vested in the portion of
their Deferral  Accounts  attributable to Elective  Deferrals.  Each Participant
shall vest in that portion of the Participant's Deferral Account attributable to
Deemed  Deferrals  (the  "Deemed  Deferral  Benefit")  at the  same  rate as the
Participant  vests in the  Participant's  account  balance in the Savings  Plan,
except that upon, and at all times following,  a Trigger Event,  Participants of
the  Participating  Company  which has incurred  such Trigger Event shall be One
Hundred  percent  (100%) vested in their Deemed  Deferral  Benefits.  If as of a
Participant's  Termination of Service the Participant is not fully vested in the
Participant's  account in the Savings Plan and a Trigger Event has not occurred,
then the Participant  shall forfeit the percentage of the  Participant's  Deemed
Deferral  Benefit equal to the  percentage of the account in the Savings Plan in
which the Participant is not vested as of such Termination of Service.

                               ARTICLE V. BENEFITS

5.1 METHOD AND TIMING.

         (A) RETIREMENT, DISABILITY OR DEATH.

          (i)  LUMP SUM PAYMENT.  On the January 1st following the Participant's
               Retirement or  Termination of Service on account of Disability or
               death,  the  Participating  Company which is the employer of such
               Participant  shall pay in a single sum to the  Participant or the
               Participant's Beneficiary, as the case may be, an amount equal to
               the vested amount credited to the Participant's  Lump Sum Account
               adjusted in accordance with Section 3.1 as of the last Adjustment
               Date preceding such payment.

          (ii)

               (A)  INSTALLMENTS.   After  the   Participant's   Retirement   or
                    Termination  of Service on account of  Disability  or death,
                    the  Participating  Company  which is the  employer  of such
                    Participant shall pay in 120 monthly installments the vested
                    amount credited to the  Participant's  Installment  Account.
                    Payment  shall  commence on the first  January 1st following
                    such  Retirement  or  Termination  of  Service,   and  shall
                    continue on the first day of each month thereafter until 120
                    monthly  payments have been made. The amount of each monthly
                    installment  payable  during a Plan  Year  shall  equal  the
                    quotient  obtained by dividing  (1) the balance  credited to
                    the Participant's  Installment  Account as of the Adjustment
                    Date  next  preceding  the Plan  Year by (2) the  number  of
                    installments  remaining  as  of  such  Adjustment  Date.  As
                    provided by and in accordance  with Article III,  during the
                    period of payment  of such  installments  the  Participant's
                    Installment  Account shall  continue to be credited with its
                    Interest Equivalent.

               (B)  LEVEL-PAYMENT   INSTALLMENTS.    After   the   Participant's
                    Retirement   or   Termination   of  Service  on  account  of
                    Disability or death, the Participating  Company which is the
                    employer  of  such  Participant  shall  pay in  120  monthly
                    installments the vested amount credited to the Participant's
                    Level-  Payment  Installment  Account  plus  interest as set
                    forth in this Section 5.1(a)(ii)(B).  Payment shall commence
                    on the  first  January  1st  following  such  Retirement  or
                    Termination of Service, and shall continue on the first

                                        8
<PAGE>

                    day of each month thereafter until 120 monthly payments have
                    been made. The amount of each monthly  installment  shall be
                    determined in accordance with the following formula:

                                                    PV
                                        ---------------------------
                           Payment  =   (1-1/1+i)119
                                         ----------- + 1
                                              i

PV   = Level-Payment  Installment Account balance as of the last day of the last
     quarter ending prior to the payment date for the first monthly  installment

i    = Level-Payment Installment Fixed Rate divided by 12

The Committee  shall set the  "LEVEL-PAYMENT  INSTALLMENT  FIXED RATE" each Plan
Year on the last day of the third  calendar  quarter  at a rate equal to (i) the
Average AAA Corporate  Bond Yield last published by Moody's Bond Survey prior to
such date or (ii) such higher rate as the Committee, in its sole discretion, may
determine on or prior to such date. The Level-Payment Installment Fixed Rate set
by the Committee in any given Plan Year shall be the  Level-Payment  Installment
Fixed Rate used to calculate the monthly payments for all Participants who first
begin  receiving   monthly   payments  of  benefits  from  their   Level-Payment
Installment Account in the immediately following Plan Year.

          (iii)DISCRETIONARY PAYMENT UPON DEATH.  Notwithstanding the provisions
               of Sections 5.1(a)(i) and (ii) above, upon a Participant's death,
               the   Participating   Company  which  is  the  employer  of  such
               Participant  may,  in the  exercise  of  its  absolute  and  sole
               discretion,  pay in a single sum to the Participant's Beneficiary
               an  amount   equal  to  the  vested   amount   credited   to  the
               Participant's   Lump  Sum   Account,   Installment   Account  and
               Level-Payment  Installment  Account  adjusted in accordance  with
               Section  3.1  as of  the  last  Adjustment  Date  preceding  such
               payment.  Such lump sum payment shall discharge the Participating
               Company's  obligation  to pay  benefits  under  this Plan to such
               Beneficiary.

     (B)  OTHER  TERMINATION OF SERVICE.  On the first January 1st following the
          Participant's   Termination  of  Service  other  than  on  account  of
          Retirement,  Disability or death, the  Participating  Company which is
          the  employer  of such  Participant  shall pay in a single  sum to the
          Participant or the Participant's  Beneficiary,  as the case may be, an
          amount equal to the vested amount credited to the  Participant's  Lump
          Sum   Deferral   Account,   Installment   Account  and   Level-Payment
          Installment  Account,  each adjusted in accordance with Article III as
          of the last Adjustment Date preceding such January 1st.

               Notwithstanding the foregoing,  if a Participant's  employment is
          terminated  as a result  of the  sale or  closure  of a  Participating
          Company,  or of a subsidiary or division of a  Participating  Company,
          the  Participating  Company which is the employer of such  Participant
          shall  pay in a single  sum to the  Participant  or the  Participant's
          Beneficiary,  as the case may be, an amount equal to the vested amount
          credited to the Participant's  Lump Sum Deferral Account,  Installment
          Account  and  Level-Payment  Installment  Account,  each  adjusted  in
          accordance  with Article III as of the last  Adjustment Date preceding
          such   sale  or   closure,   such   payment   to   occur  as  soon  as
          administratively feasible after such sale or closure.

     (C)  TRIGGER   EVENT.   Upon  the  happening  of  a  Trigger   Event,   the
          Participating  Company  which is subject to such  Trigger  Event shall
          immediately pay to each Participant which is its Employee, in a single
          sum,  the  amount  credited  to  the  Participant's  Deferral  Account
          adjusted in accordance  with Article III as of the date of the Trigger
          Event.

                                        9
<PAGE>

5.2  PAYMENTS  TO  BENEFICIARY.  In the event a  Participant  dies prior to full
     payment of the  Participant's  Deferral  Account  under this Article V, all
     remaining  payments  due  hereunder  shall  be made  to such  Participant's
     Beneficiary; provided, however, if the Committee so directs in the exercise
     of its sole discretion,  the Participating  Company shall pay the remainder
     of the  Deferral  Account in one single sum.  In the event the  Beneficiary
     survives  the  Participant  but dies  prior  to full  payment  of  benefits
     hereunder,  all  remaining  payments  shall  be made  to the  Beneficiary's
     estate.

5.3  WITHHOLDING  TAXES;  EMPLOYMENT TAXES. Any amounts paid to a Participant or
     Beneficiary  shall be reduced by the amount of taxes  required by law to be
     withheld.   The  Participating   Company  which  is  the  employer  of  the
     Participant  shall timely furnish the Participant and Beneficiary  with the
     appropriate  tax  information  form  evidencing such payment and the amount
     thereof.  Each Participating Company shall be solely responsible for paying
     employment  taxes  (e.g.,   FICA,  FUTA,  state   unemployment),   if  any,
     attributable to payments to Participants  and  Beneficiaries  which are its
     Employees.

5.4  PAYMENTS TO RELIEVE FINANCIAL  HARDSHIP.  Notwithstanding  any provision in
     this Plan to the  contrary,  the  Committee in the exercise of its sole and
     absolute  discretion  shall  have  the  power  and  authority  to  direct a
     Participating  Company  to  pay  to  a  Participant  or  the  Participant's
     Beneficiary  such  amount as is  necessary  to enable  the  Participant  or
     Beneficiary  to relieve  or  mitigate  an  "unforeseeable  emergency".  For
     purposes of the  foregoing,  an  "unforeseeable  emergency"  shall have the
     meaning  set  forth  in  Internal   Revenue   Code   Regulation   Ssections
     1.457-2(h)(4) and (5) and shall include a severe financial  hardship to the
     Participant or Beneficiary  resulting from a sudden and unexpected  illness
     or accident of the Participant or Beneficiary or of a dependent (as defined
     in Code Section  152(a)) of the  Participant  or  Beneficiary,  loss of the
     Participant's or Beneficiary's  property due to casualty,  or other similar
     extraordinary and unforeseeable circumstances arising as a result of events
     beyond the control of the  Participant or  Beneficiary.  The  circumstances
     that will  constitute  an  "unforeseeable  emergency"  will depend upon the
     facts of each case, but, in any case, payment may not be made to the extent
     that such hardship is or may be relieved --

     (a)  through reimbursement or compensation by insurance or otherwise;

     (b)  by liquidation of the  Participant's or Beneficiary's  assets,  to the
          extent the  liquidation  of such assets  would not itself cause severe
          financial hardship; or

     (c)  by cessation of deferrals under this Plan.

College   tuition  or  the  costs  of  purchasing  a  home  are  not  considered
"unforeseeable emergencies." Withdrawals of amounts because of an "unforeseeable
emergency" will only be permitted to the extent reasonably needed to satisfy the
emergency  need.  The  amount  of any  such  payment  shall  be  debited  to the
Participant's   Lump  Sum  Account,   Installment   Account  and   Level-Payment
Installment  Account in such order as the Committee  elects and shall not exceed
the amount credited to the Deferral Account determined as of the Adjustment Date
next following such payment and without regard to such payment.

                                       10
<PAGE>

                    ARTICLE VI. DESIGNATION OF BENEFICIARIES

6.1  BENEFICIARY DESIGNATION.  Every Participant shall file with the Committee a
     written  designation of one or more persons as the Beneficiary who shall be
     entitled  to receive the amount,  if any,  payable  under the Plan upon his
     death. A Participant may from time to time revoke or change his Beneficiary
     designation  without the consent of any prior  Beneficiary  by filing a new
     designation with the Committee.  The last such designation  received by the
     Committee shall be controlling;  provided, however, that no designation, or
     change or revocation  thereof,  shall be effective  unless  received by the
     Committee  prior to the  Participant's  death,  and in no event shall it be
     effective  as of a  date  prior  to  such  receipt.  All  decisions  of the
     Committee  concerning the effectiveness of any Beneficiary  designation and
     the identity of any Beneficiary  shall be final. If a Beneficiary shall die
     after the death of the Participant and prior to receiving the  distribution
     that would have been made to such Beneficiary had such Beneficiary's  death
     not occurred,  and no alternate  Beneficiary has been designated,  then for
     the purposes of the Plan the distribution  that would have been received by
     such Beneficiary shall be made to the Beneficiary's estate.

6.2  FAILURE TO DESIGNATE BENEFICIARY. Subject to Section 6.1, if no Beneficiary
     designation is in effect at the time of a Participant's  death, the payment
     of the amount,  if any, payable under the Plan upon his death shall be made
     to the Participant's surviving spouse, if any, or if the Participant has no
     surviving spouse, to the Participant's estate. If the Committee is in doubt
     as to the right of any person to receive such  amount,  the  Committee  may
     direct the Participating  Company to withhold payment without liability for
     any  interest  thereon,  until the rights  thereto are  determined,  or the
     Committee may direct the Participating  Company to pay any such amount into
     any court of appropriate jurisdiction, and such payment shall be a complete
     discharge of the liability of the Participating Company therefor.

                             ARTICLE VII. COMMITTEE

7.1  AUTHORITY.  The Committee shall be responsible for the  administration  and
     interpretation  of the Plan, shall act as the Plan  Administrator and shall
     have all  powers  necessary  to enable  it to carry  out its  duties in the
     administration  and interpretation of the Plan, and shall have the duty and
     power to  determine,  in the exercise of its sole and absolute  discretion,
     all  questions  that may arise  hereunder  as to the  status  and rights of
     Participants  and  Beneficiaries  in the  Plan  and as to the  right of any
     individual to a benefit.

7.2  VOTING.  The  Committee  shall  act  by  a  majority  of  the  number  then
     constituting the Committee,  and such action may be taken either by vote at
     a meeting or in writing without a meeting.

7.3  RECORDS.  The Committee shall keep a complete record of all its proceedings
     and all data  relating to the  administration  of the Plan.  The  Committee
     shall make such rules and regulations for the conduct of its business as it
     shall deem advisable.

7.4  LIABILITY.  No member of the Committee  shall be personally  liable for any
     actions  taken or omitted by the  Committee  unless the member's  action or
     inaction involves willful misconduct. To the extent permitted by applicable
     law,  each  Participating  Company  shall  indemnify and hold harmless each
     member of the  Committee  and each  employee of the  Participating  Company
     acting  pursuant to the direction of the Committee from and against any and
     all liability,  claims,  demands,  costs and expenses (including reasonable
     attorneys' fees) arising out of or incident to any act or failure to act in
     connection with the  administration of the Plan, except for any such act or
     failure to act that involves willful misconduct.

                                       11
<PAGE>

7.5  MINISTERIAL DUTIES. The Committee may appoint one of its members to perform
     such ministerial duties as the Committee delegates.

                    ARTICLE VIII. AMENDMENT AND TERMINATION

Each  Participating  Company  reserves  the right,  at any time and from time to
time,  by action of its Board to amend or  terminate  the Plan with  respect  to
itself and the Participants employed by it; provided, however, no such amendment
or  termination  shall  either (a) reduce  the amount of any  Deferral  Account,
determined  as of the  Adjustment  Date  coincident  with or next  preceding the
amendment or termination, or (b) defer payment of such Deferral Account.

                          ARTICLE IX. CLAIMS PROCEDURE

The following claims procedure shall apply with respect to the Plan:

9.1  FILING  OF A CLAIM FOR  BENEFITS.  If a  Participant  or  Beneficiary  (the
     "claimant")  believes that he is entitled to benefits  under the Plan which
     are not being paid to him, he shall file a written claim  therefor with the
     Plan  Administrator.  In the event a member of the Plan Administrator shall
     be the  claimant,  all actions  which are  required to be taken by the Plan
     Administrator  pursuant  to this  Article IX shall be taken  instead by the
     remaining members of the Plan Administrator.

9.2  NOTIFICATION  TO CLAIMANT OF  DECISION.  Within 90 days after  receipt of a
     claim  by  the  Plan   Administrator   (or   within  180  days  if  special
     circumstances  require an extension of time), the Plan Administrator  shall
     notify the claimant of the Plan Administrator's decision with regard to the
     claim. In the event of such special circumstances requiring an extension of
     time,  there shall be furnished to the claimant  prior to expiration of the
     initial 90-day period  written notice of the extension,  which notice shall
     set  forth the  special  circumstances  and the date by which the  decision
     shall be  furnished.  If such claim  shall be wholly or  partially  denied,
     notice thereof shall be in writing and worded in a manner  calculated to be
     understood by the claimant, and shall set forth: (a) the specific reason or
     reasons for the denial; (b) specific  reference to pertinent  provisions of
     the Plan on which the denial is based;  (c) a description of any additional
     material or information necessary for the claimant to perfect the claim and
     an explanation of why such material or information is necessary; and (d) an
     explanation  of the  procedure  for  review  of  the  denial.  If the  Plan
     Administrator  fails to  notify  the  claimant  of the  decision  in timely
     manner, the claim shall be deemed denied as of the close of the initial 90-
     day period (or the close of the extension period, if applicable).

9.3  PROCEDURE FOR REVIEW.  Within 60 days following  receipt by the claimant of
     notice  denying his claim in whole or in part or, if such notice  shall not
     be given,  within 60 days  following  the latest  date on which such notice
     could have been timely given, the claimant shall appeal denial of the claim
     by filing a written  application  for review  with the Plan  Administrator.
     Following such request for review, the Plan  Administrator  shall fully and
     fairly review the decision denying the claim.  Prior to the decision of the
     Plan  Administrator,  the claimant  shall be given an opportunity to review
     pertinent documents and to submit issues and comments in writing.

9.4  DECISION ON REVIEW. The decision on review of a claim denied in whole or in
     part by the Plan Administrator shall be made in the following manner:

                                       12
<PAGE>

     (a)  Within 60 days  following  receipt  by the Plan  Administrator  of the
          request  for  review  (or  within  120 days if  special  circumstances
          require an extension of time), the Plan Administrator shall notify the
          claimant in writing of its decision  with regard to the claim.  In the
          event of such  special  circumstances  requiring an extension of time,
          written  notice of the  extension  shall be  furnished to the claimant
          prior to the commencement of the extension.  If the decision on review
          is not furnished in a timely manner,  the claim shall be deemed denied
          as of the  close of the  initial  60-day  period  (or the close of the
          extension period, if applicable).

     (b)  With  respect  to a claim  that is  denied  in whole  or in part,  the
          decision on review shall set forth specific  reasons for the decision,
          shall  be  written  in a manner  calculated  to be  understood  by the
          claimant,  and shall cite specific  references  to the pertinent  plan
          provisions on which the decision is based.

     (c)  The decision of the Plan Administrator shall be final and conclusive.

9.5  ACTION BY AUTHORIZED  REPRESENTATIVE OF CLAIMANT.  All actions set forth in
     this  Article IX to be taken by the  claimant  may  likewise  be taken by a
     representative  of the claimant duly authorized by him to act in his behalf
     on such matters. The Plan Administrator may require such evidence as it may
     reasonably  deem necessary or advisable of the authority to act of any such
     representative.

                            ARTICLE X. MISCELLANEOUS

10.1 NONALIENATION  OF  BENEFITS.  No right or  benefit  under the Plan shall be
     subject to anticipation,  alienation, sale, transfer,  assignment,  pledge,
     encumbrance,   attachment,  garnishment  or  charge,  and  any  attempt  to
     anticipate,  alienate, sell, transfer,  assign, pledge,  encumber,  attach,
     garnish  or charge any right or  benefit  under the Plan shall be void.  No
     right or benefit  hereunder shall in any manner be liable for or subject to
     the debts,  contracts,  liabilities or torts of the person entitled to such
     benefit.  If a Participant or Beneficiary  hereunder shall become bankrupt,
     or attempt  (voluntarily or involuntarily) to anticipate,  alienate,  sell,
     transfer,  assign, pledge,  encumber, or charge any right hereunder,  or if
     any  creditor  shall  attempt  to  attach,  garnish,  levy on or  otherwise
     alienate or affect the right or benefit of any  Participant  or Beneficiary
     hereunder,  then such  right or benefit  shall,  in the  discretion  of the
     Committee,  cease and terminate,  and in such event, the Committee may hold
     or apply the same, or any part thereof,  for the benefit of the Participant
     or  Beneficiary  in such manner and in such amounts and  proportions as the
     Committee may deem proper.

10.2 NO TRUST CREATED.  The Plan  constitutes a mere promise by a  Participating
     Company  to make  benefit  payments  in the  future.  The  obligation  of a
     Participating  Company to make a payment  hereunder shall constitute only a
     liability  of  such  Participating  Company  to  the  Participant,  and  no
     Participating  Company shall be liable to make a payment to any Participant
     who is not its  Employee.  Each such payment shall be made from the general
     funds of the Participating  Company, and no Participating  Company shall be
     required to  establish  or maintain  any  special or separate  fund,  or to
     purchase or acquire life insurance on a Participant's life, or otherwise to
     segregate  assets to assure  that such  payments  shall be made.  Neither a
     Participant  nor a  Beneficiary  shall have any interest in any  particular
     asset of a Participating  Company by reason of its  obligations  hereunder,
     and the right of a Participant to receive payments under this Plan shall be
     merely  the  right of a general  unsecured  creditor  of the  Participating
     Company which is his employer.  Nothing  contained in the Plan shall create
     or be  construed  as  creating  a trust of any kind or any other  fiduciary
     relationship   between  a  Participating   Company  and  a  Participant  or
     Beneficiary.

10.3 NO EMPLOYMENT AGREEMENT.  Neither the execution of this Plan nor any action
     taken by a  Participating  Company  pursuant  to this Plan shall be held or
     construed to confer on a Participant any legal right to be

                                       13
<PAGE>

     continued as an employee of the Participating  Company. This Plan shall not
     be deemed to  constitute a contract of employment  between a  Participating
     Company and a  Participant,  nor shall any  provision  herein  restrict the
     right of any  Participant to terminate his employment  with a Participating
     Company.

10.4 FUNDING POLICY. This Plan is unfunded,  and benefits shall be paid from the
     general  assets of the  Participating  Company which is the employer of the
     Participant.  However, a Participating Company may reserve such funds, make
     such investments or purchase such insurance policies as it may from time to
     time  choose  to  provide  a  source  for  payments  under  the  Plan.  The
     Participants  and  Beneficiaries  shall  have no claims to any such  funds,
     investments or policies.

10.5 BINDING EFFECT.  A Participating  Company shall be liable only with respect
     to obligations  incurred  pursuant to this Plan for its own  Employees;  no
     Participating  Company  shall be liable  with  respect to  benefits  due an
     Employee of any other Participating Company.  Benefits under the Plan shall
     inure to the benefit of the Participant and the Participant's Beneficiary.

10.6 ENTIRE PLAN. This document and any amendments  hereto contain all the terms
     and provisions of the Plan and shall  constitute the entire Plan, any other
     alleged terms or provisions being of no effect.

10.7 MERGER OR  CONSOLIDATION.  In the event of a merger or a consolidation of a
     Participating   Company  with  another   corporation  or  entity,   or  the
     acquisition of  substantially  all of the assets or outstanding  stock of a
     Participating  Company by another  corporation or entity,  then and in such
     event the  obligations  and  responsibilities  of such  merged or  acquired
     corporation  under  this Plan shall be  assumed  by any such  successor  or
     acquiring  corporation  or entity,  and all of the rights,  privileges  and
     benefits of the Participants hereunder shall continue.

10.8 PAYMENT TO  INCOMPETENT.  Payments of benefits  shall be made directly to a
     Participant  or Beneficiary  entitled  thereof,  or if such  Participant or
     Beneficiary has been determined by a court of competent  jurisdiction to be
     mentally or physically incompetent,  then payment shall be made to the duly
     appointed guardian,  conservator or other authorized representative of such
     Participant or Beneficiary.  The Participating Company shall have the right
     to make  payment  directly to a  Participant  or  Beneficiary  until it has
     received  actual  notice  of the  physical  or  mental  incapacity  of such
     Participant  or  Beneficiary  and  notice  of  the  appointment  of a  duly
     authorized  representative of his estate. Any such payment to an authorized
     representative  for the benefit of a Participant or Beneficiary  shall be a
     complete discharge of all liability of the Participating Company therefor.

10.9 NO  CONTRIBUTIONS.   Participants  shall  not  be  permitted  to  make  any
     contributions to this plan.

                       [Page Ends; Signature Page Follows]
<PAGE>
           Duck Head Apparel Company, Inc. Deferred Compensation Plan
                       for Key Managers; Signature Page]

Executed as of ______________, 2000.

DUCK HEAD APPAREL COMPANY, INC.

By:___________________________
Its:_____________________

<PAGE>

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