Document:

TERM PROMISSORY NOTE
                              --------------------

$10,000,000                                                  New York, New York
                                                                   May 16, 2000

     FOR  VALUE  RECEIVED,  DELTA  APPAREL,  INC.,  a Georgia  corporation  (the
"Debtor"),  hereby  unconditionally  promises  to pay to the  order of  CONGRESS
FINANCIAL  CORPORATION  (SOUTHERN),  a  Georgia  corporation  ("Payee"),  at the
offices of Payee at 200 Galleria Parkway, Suite 1500, Atlanta, Georgia 30339, or
at such  other  place as the Payee or any  holder  hereof  may from time to time
designate,  the principal  sum of TEN MILLION  DOLLARS  ($10,000,000)  in lawful
money of the United States of America and in  immediately  available  funds,  in
sixty (60) consecutive monthly installments (or earlier as hereinafter provided)
on the  first  day of each  month  commencing  June 1,  2000 of which  the first
fifty-nine  (59)  installments  shall  each  be in the  amount  of  ONE  HUNDRED
SIXTY-SIX THOUSAND SIX HUNDRED SIXTY-SIX DOLLARS AND 66/100  ($166,666.66),  and
the last installment shall be in the amount of the entire unpaid balance of this
Note.

     Debtor hereby further promises to pay interest to the order of Payee on the
unpaid  principal  balance hereof at the Interest  Rate.  Such interest shall be
paid in like money at said office or place from the date hereof, commencing June
1, 2000 and on the first day of each  month  thereafter  until the  indebtedness
evidenced by this Note is paid in full. Interest payable upon and after an Event
of Default or termination  or non-renewal of the Loan Agreement (as  hereinafter
defined) shall be payable upon demand.

     For purposes  hereof,  (a) subject to clauses (b) and (c) below,  "Interest
Rate"  shall mean as to Prime Rate Loans,  the Prime Rate and, as to  Eurodollar
Rate  Loans,  a rate of two (2%)  percent  per annum in  excess of the  Adjusted
Eurodollar Rate (based on the Eurodollar Rate applicable for the Interest Period
selected by Debtor as in effect two (2) Business  Days after the date of receipt
by Payee of the request of Debtor for such  Eurodollar  Rate Loans in accordance
with the terms of the Loan Agreement,  whether such rate is higher or lower than
any rate  previously  quoted  to  Debtor);  (b)  subject  to clause  (c)  below,
effective  as of the  first  day of  the  month  after  Payee's  receipt  of the
financial  statements  required to be delivered to Payee pursuant to Section 9.6
of the Loan Agreement in respect of the fiscal quarter ending June 30, 2000, the
Interest Rate payable by Debtor shall be increased or decreased, as the case may
be, to the rate equal to the applicable margin set forth in Exhibit A hereto, on
a per annum  basis,  in excess of the Prime Rate as to Prime Rate Loans,  and in
excess of the Adjusted  Eurodollar  Rate as to  Eurodollar  Rate Loans,  in each
case,  based on either (i) the quarterly  average of the Excess  Availability of
Debtor for the immediately  preceding full fiscal quarter or (ii) Debtor's Fixed
Charge  Coverage  Ratio,  calculated on a quarterly  basis,  for the immediately
preceding four (4) consecutive  fiscal quarters of Debtor,  ending June 30, 2000
(except that for purposes of calculating the Fixed Charge Coverage Ratio for the
period ending June 30, 2000: (A) the Fixed Charge Coverage Ratio shall

                                       -1-
<PAGE>

be  calculated  on a fiscal  year to date basis as of July 1, 1999,  and (B) the
Interest  Expense  paid to Payee in  respect  of the  Obligations  from the date
hereof, through and including June 30, 2000 shall be calculated on an annualized
basis) as calculated by Payee in good faith; (c) notwithstanding anything to the
contrary contained in clauses (a) and (b) above, the applicable margin otherwise
used to calculate the Interest Rate shall be the highest percentage set forth on
Exhibit A hereto (without  regard to the amount of Excess  Availability or Fixed
Charge  Coverage  Ratio)  plus two (2%)  percent per annum,  at Payee's  option,
without  notice,  (i)  either  (A) for  the  period  on and  after  the  date of
termination  or  non-renewal  hereof  until  such  time as all  Obligations  are
indefeasibly  paid and  satisfied in full,  or (B) for the period from and after
the date of the  occurrence  of any  Event of  Default,  and for so long as such
Event of Default is continuing as determined by Payee; (d) the term "Prime Rate"
shall mean the rate from time to time publicly announced by First Union National
Bank, or its  successors,  from time to time, as its prime rate,  whether or not
such announced rate is the best rate available at such bank; (e) the term "Event
of  Default"  shall mean an Event of Default as such term is defined in the Loan
Agreement;  and (f) the term "Loan  Agreement"  shall mean the Loan and Security
Agreement,  dated of even date herewith,  between Debtor and Payee,  as the same
now  exists or may  hereafter  be  amended,  modified,  supplemented,  extended,
renewed,  restated or replaced. Unless otherwise defined herein, all capitalized
terms used herein shall have the meaning assigned thereto in the Loan Agreement.

     The Interest Rate  applicable to Prime Rate Loans payable  hereunder  shall
increase  or  decrease  by  an  amount  equal  to  each  increase  or  decrease,
respectively,  in the Prime Rate,  effective on the first day of the month after
any change in the Prime Rate is  announced.  The  increase or decrease  shall be
based on the Prime Rate in effect on the last day of the month in which any such
change  occurs.  Interest  shall be  calculated  on the basis of a three hundred
sixty (360) day year and actual  days  elapsed.  In no event shall the  interest
charged  hereunder  exceed the maximum  permitted under the laws of the State of
Georgia or other applicable law.

     This  Note is issued  pursuant  to the  terms  and  provisions  of the Loan
Agreement to evidence the Term Loan by Payee to Debtor.  This Note is secured by
the  Collateral  described  in the Loan  Agreement  and all  notes,  guarantees,
security agreements and other agreements, documents and instrument now or at any
time  hereafter  executed  and/or  delivered  by Debtor  or any  other  party in
connection therewith (all of the foregoing, together with the Loan Agreement, as
the same now exist or may hereafter be amended, modified, supplemented, renewed,
extended,  restated or replaced,  being  collectively  referred to herein as the
"Financing  Agreements"),  and is  entitled  to all of the  benefits  and rights
thereof and of the other  Financing  Agreements.  At the time any payment is due
hereunder,  at its option, Payee may charge the amount thereof to any account of
Debtor maintained by Payee.

     If any  payment of  principal  or  interest  is not made  within  three (3)
business  days after the same  becomes due  hereunder,  or if any other Event of
Default shall occur for any reason, or if the Loan Agreement shall be terminated
or not  renewed  for any  reason  whatsoever,  then  and in any such  event,  in
addition to all rights and remedies of Payee under the Financing Agreements,

                                       -2-
<PAGE>

applicable law or otherwise, all such rights and remedies being cumulative,  not
exclusive and enforceable  alternatively,  successively and concurrently,  Payee
may, at its option, declare any or all of Debtor's obligations,  liabilities and
indebtedness  owing to Payee under the Loan  Agreement  and the other  Financing
Agreements (the "Obligations"), including, without limitation, all amounts owing
under  this Note,  to be due and  payable,  whereupon  the then  unpaid  balance
hereof,  together with all interest accrued thereon,  shall forthwith become due
and payable,  together with interest accruing  thereafter at the then applicable
Interest Rate stated above until the indebtedness evidenced by this Note is paid
in full, plus the costs and expenses of collection  hereof,  including,  but not
limited to, attorneys' fees and legal expenses.

     Debtor (i) waives diligence, demand, presentment, protest and notice of any
kind,  (ii) agrees that it will not be  necessary  for Payee to first  institute
suit in order to enforce  payment of this Note and (iii)  consents to any one or
more  extensions  or  postponements  of time of payment,  release,  surrender or
substitution of collateral security, or forbearance or other indulgence, without
notice or consent.  The pleading of any statute of  limitations  as a defense to
any demand against Debtor is expressly  hereby waived by Debtor.  Upon any Event
of Default or termination or non-renewal of the Loan Agreement, Payee shall have
the right,  but not the obligation to setoff against this Note all money owed by
Payee to Debtor.

     Payee shall not be required to resort to any  Collateral  for payment,  but
may proceed against Debtor and any guarantors or endorsers  hereof in such order
and manner as Payee may  choose.  None of the rights of Payee shall be waived or
diminished by any failure or delay in the exercise thereof.

     The validity,  interpretation  and  enforcement  of this Note and the other
Financing Agreements and any dispute arising in connection herewith or therewith
shall be governed by the internal laws of the State of Georgia  (without  giving
effect to principles of conflicts of law).

     Debtor irrevocably  consents and submits to the non-exclusive  jurisdiction
of the Superior Court of Fulton County,  Georgia and the United States  District
Court for the  Northern  District of Georgia and waives any  objection  based on
venue or forum non  conveniens  with  respect to any action  instituted  therein
arising under this Note or any of the other  Financing  Agreements or in any way
connection  with or related or incidental to the dealings of Debtor and Payee in
respect  of  this  Note  or  any  of  the  other  Financing  Agreements  or  the
transactions  related  hereto or thereto,  in each case  whether now existing or
hereafter  arising,  and whether in contract,  tort,  equity or  otherwise,  and
agrees that any dispute arising out of the relationship between Debtor and Payee
or the conduct of such persons in connection  with this Note or otherwise  shall
be heard only in the courts  described  above  (except that Payee shall have the
right to bring any action or  proceeding  against  Debtor or its property in the
courts of any other  jurisdiction  which Payee deems necessary or appropriate in
order to realize on the  Collateral or to otherwise  enforce its rights  against
Debtor or its property).

                                       -3-
<PAGE>

     Debtor  hereby waives  personal  service of any and all process upon it and
consents that all such service of process may be made by certified  mail (return
receipt  requested)  directed  to it and  service  so made shall be deemed to be
completed  five (5) days after the same shall have been so deposited in the U.S.
mails,  or, at  Payee's  option,  by  service  upon  Debtor in any other  manner
provided under the rules of any such courts.  Within thirty (30) days after such
service,  Debtor shall appear in answer to such  process,  failing  which Debtor
shall be deemed in default and judgment may be entered by Payee  against  Debtor
for the amount of the claim and other relief requested.

     DEBTOR  HEREBY  WAIVES  ANY  RIGHT TO TRIAL BY JURY OF ANY  CLAIM,  DEMAND,
ACTION  OR  CAUSE OF  ACTION  (i)  ARISING  UNDER  THIS  NOTE OR (ii) IN ANY WAY
CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS BETWEEN DEBTOR AND PAYEE
IN  RESPECT  OF  THIS  NOTE  OR ANY OF THE  OTHER  FINANCING  AGREEMENTS  OR THE
TRANSACTIONS  RELATED  HERETO OR THERETO IN EACH CASE  WHETHER  NOW  EXISTING OR
HEREAFTER ARISING,  AND WHETHER IN CONTRACT,  TORT, EQUITY OR OTHERWISE.  DEBTOR
AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL
BE DECIDED BY COURT TRIAL WITHOUT A JURY.

     The execution and delivery of this Note has been authorized by the Board of
Directors and by any necessary  vote or consent of the  stockholders  of Debtor.
Debtor  hereby  authorizes  Payee  to  complete  this  Note  in any  particulars
according to the terms of the loan evidenced hereby.

     This Note shall be binding  upon the  successors  and assigns of Debtor and
inure to the  benefit  of  Payee  and its  successors,  endorsees  and  assigns.
Whenever  used  herein,  the  term  "Debtor"  shall be  deemed  to  include  its
successors  and  assigns  and the term  "Payee"  shall be deemed to include  its
successors,  endorsees and assigns.  If any term or provision of this Note shall
be held invalid,  illegal or unenforceable,  the validity of all other terms and
provisions hereof shall in no way be affected thereby.

                                       DELTA APPAREL, INC.

                                       By: /s/ Herbert M. Mueller
                                           ------------------------------
                                       Title: Vice President & CFO

                                       -4-
<PAGE>

EXHIBIT A
---------

                Applicable Margins for Interest Rate Calculations
                -------------------------------------------------

The applicable margins will be determined as set forth below:
<TABLE>
<CAPTION>

When Excess Availability or                   Applicable                         Applicable
Fixed Charge Coverage Ratio Is:             Prime Rate Margin                  Eurodollar Margin
-------------------------------             -----------------                  -----------------
<S>                                                <C>                                 <C>

$20,000,000 or more
 or equal to or greater than 2.0 to 1.0              -                                 2.00%

$10,000,000 to $19,999,999
or equal to or greater than 1.5 to 1 but
less than 2.0 to 1                                 .25%                                2.25%

Less than $10,000,000
or less than 1.5 to 1                              .50%                                2.50%

</TABLE>

Debtor need only meet either the Excess  Availability  test or the Fixed  Charge
Coverage Ratio test to qualify for the corresponding applicable margin.

                                       -5-PLEDGE AND SECURITY AGREEMENT
                          -----------------------------

     THIS PLEDGE AND  SECURITY  AGREEMENT  ("Pledge  Agreement"),  dated May 16,
2000, is by DELTA APPAREL,  INC., a Georgia  corporation  ("Pledgor"),  with its
chief  executive  office at 3355  Breckinridge  Boulevard,  Suite  100,  Duluth,
Georgia 30096 to and in favor of CONGRESS FINANCIAL  CORPORATION  (SOUTHERN),  a
Georgia corporation ("Pledgee"), having an office at 200 Galleria Parkway, Suite
1500, Atlanta, Georgia 30339.

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

     WHEREAS,  Pledgor is now the direct  and  beneficial  owner of 2,496 of the
2,500 issued and outstanding  shares of capital stock of Delta Apparel Horduras,
S.A., a Honduran corporation ("Issuer"),  1,622 of which shares of capital stock
are being delivered by Pledgor to Pledgee pursuant to the terms hereof and which
are as  described  on  Exhibit  A annexed  hereto  and made a part  hereof  (the
"Pledged Securities");

     WHEREAS,  Pledgee and Pledgor  have entered into or are about to enter into
financing arrangements pursuant to which Pledgee may make loans and advances and
provide other financial  accommodations  to Pledgor as set forth in the Loan and
Security  Agreement,  dated of even date  herewith,  by and between  Pledgee and
Pledgor  (as  the  same  now  exists  or may  hereafter  be  amended,  modified,
supplemented, extended, renewed, restated or replaced, the "Loan Agreement") and
other agreements,  documents and instruments  referred to therein or at any time
executed and/or delivered in connection therewith or related thereto, including,
but not limited to, this Pledge  Agreement (all of the foregoing,  together with
the Loan Agreement, as the same now exist or may hereafter be amended, modified,
supplemented,  extended,  renewed,  restated  or  replaced,  being  collectively
referred to herein as the "Financing Agreements"); and

     WHEREAS,  in order to induce  Pledgee to enter into the Loan  Agreement and
the other Financing  Agreements and to make loans and advances and provide other
financial  accommodations  to Pledgor  pursuant  thereto,  Pledgor has agreed to
secure the payment and performance of the  Obligations (as hereinafter  defined)
to Pledgee and to accomplish  same by (i)  executing  and  delivering to Pledgee
this Pledge Agreement,  (ii) delivering to Pledgee the Pledged  Securities which
are  registered in the name of Pledgor,  together with  appropriate  powers duly
executed in blank by Pledgor,  and (iii) delivering to Pledgee any and all other
documents  which  Pledgee  deems  necessary  to  protect   Pledgee's   interests
hereunder;

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

                                      - 1 -
<PAGE>

     1. GRANT OF SECURITY INTEREST
        --------------------------

     As  collateral  security  for  the  prompt   performance,   observance  and
indefeasible payment in full of all of the Obligations (as hereinafter defined),
Pledgor  hereby  assigns,  pledges,  hypothecates,  transfers  and sets  over to
Pledgee  and  grants to  Pledgee a  security  interest  in and lien upon (a) the
Pledged  Securities,   together  with  all  cash  dividends,   stock  dividends,
interests,   profits,   redemptions,   warrants,   subscription  rights,  stock,
securities  options,  substitutions,  exchanges and other  distributions  now or
hereafter  distributed  by Issuer or which may  hereafter  be  delivered  to the
possession of Pledgor or Pledgee with respect  thereto,  (b)  Pledgor's  records
with respect to the foregoing, and (c) the proceeds of all of the foregoing (all
of  the  foregoing  being  collectively  referred  to  herein  as  the  "Pledged
Property").

     2. OBLIGATIONS SECURED
        -------------------

     The security interest, lien and other interests granted to Pledgee pursuant
to this Pledge Agreement shall secure the prompt performance and payment in full
of any and all obligations,  liabilities and indebtedness of every kind,  nature
and  description  owing by Pledgor to Pledgee and/or its  affiliates,  including
principal,  interest,  charges,  fees,  costs and expenses,  however  evidenced,
whether as principal,  surety, endorser, guarantor or otherwise, whether arising
under this Pledge Agreement,  the Loan Agreement, the other Financing Agreements
or otherwise, whether now existing or hereafter arising, whether arising before,
during or after the initial or any renewal  term of the Loan  Agreement or after
the  commencement  of any case with respect to Pledgor  under the United  States
Bankruptcy  Code or any similar  statute  (including,  without  limitation,  the
payment of interest and other  amounts which would accrue and become due but for
the  commencement  of such  case),  whether  direct  or  indirect,  absolute  or
contingent,  joint or several, due or not due, primary or secondary,  liquidated
or unliquidated,  secured or unsecured,  and however acquired by Pledgee (all of
the foregoing being collectively referred to herein as the "Obligations").

     3. REPRESENTATIONS, WARRANTIES AND COVENANTS
        -----------------------------------------

     Pledgor hereby  represents,  warrants and covenants with and to Pledgee the
following  (all  of  such   representations,   warranties  and  covenants  being
continuing so long as any of the Obligations are outstanding):

     (a) The Pledged Securities are duly authorized,  validly issued, fully paid
and  non-assessable  capital  stock  of  Issuer  and  constitute   approximately
sixty-five  (65%)  percent of  Pledgor's  entire  interest in Issuer and are not
registered,  nor has Pledgor authorized the registration thereof, in the name of
any person or entity other than Pledgor or Pledgee.

     (b) The Pledged  Property is directly,  legally and  beneficially  owned by
Pledgor,  free and clear of all claims,  liens,  pledges and encumbrances of any
kind,  nature or  description,  except for the pledge and  security  interest in
favor of Pledgee and the pledges and security interests permitted under the Loan
Agreement.

                                      - 2 -
<PAGE>

     (c) The Pledged Property is not subject to any restrictions relative to the
transfer  thereof  and Pledgor has the right to  transfer  and  hypothecate  the
Pledged Property free and clear of any liens, encumbrances or restrictions.

     (d) The  Pledged  Property  is duly and  validly  pledged to Pledgee and no
consent or  approval  of any  governmental  or  regulatory  authority  or of any
securities  exchange or the like, nor any consent or approval of any other third
party,  was or is necessary to the  validity and  enforceability  of this Pledge
Agreement.

     (e) Pledgor  authorizes  Pledgee to: (i) store,  deposit and  safeguard the
Pledged  Property,  (ii)  perform  any and all other acts which  Pledgee in good
faith deems  reasonable  and/or necessary for the protection and preservation of
the  Pledged  Property  or its value or  Pledgee's  security  interest  therein,
including,  without limitation,  transferring,  registering or arranging for the
transfer or registration of the Pledged Property to or in Pledgee's own name and
receiving the income  therefrom as additional  security for the  Obligations and
(iii)  pay any  charges  or  expenses  which  Pledgee  deems  necessary  for the
foregoing  purpose,  but  without any  obligation  to do so. Any  obligation  of
Pledgee for  reasonable  care for the Pledged  Property in Pledgee's  possession
shall be  limited  to the same  degree of care which  Pledgee  uses for  similar
property pledged to Pledgee by other persons.

     (f) If Pledgor  shall  become  entitled  to receive  or  acquire,  or shall
receive any stock  certificate,  or option or right with respect to the stock of
Issuer (including without limitation, any certificate representing a dividend or
a  distribution  or exchange of or in connection  with  reclassification  of the
Pledged  Securities)  whether  as an  addition  to,  in  substitution  of, or in
exchange for any of the Pledged Property or otherwise,  Pledgor agrees to accept
same as Pledgee's  agent,  to hold same in trust for Pledgee and to deliver same
forthwith to Pledgee or Pledgee's agent or bailee in the form received, with the
endorsement(s)  of Pledgor  where  necessary  and/or  appropriate  powers and/or
assignments  duly  executed to be held by Pledgee or  Pledgee's  agent or bailee
subject to the terms hereof, as further security for the Obligations.

     (g) Pledgor shall not,  without the prior  consent of Pledgee,  directly or
indirectly, sell, assign, transfer, or otherwise dispose of, or grant any option
with respect to the Pledged Property,  nor shall Pledgor create, incur or permit
any  further  pledge,  hypothecation,  encumbrance,  lien,  mortgage or security
interest with respect to the Pledged Property.

     (h) So long as no Event of Default (as  hereinafter  defined)  has occurred
and is  continuing,  Pledgor  shall  have the  right to vote  and  exercise  all
corporate  rights with  respect to the Pledged  Securities,  except as expressly
prohibited  herein,  and to receive any cash dividends payable in respect of the
Pledged Securities.

     (i) Pledgor  shall not permit  Issuer,  directly or  indirectly,  to issue,
sell, grant, assign,  transfer or otherwise dispose of, any additional shares of
capital stock of Issuer or any option or warrant with respect to, or other right
or security  convertible into, any additional shares of capital stock of Issuer,
now or  hereafter  authorized,  unless  all  such  additional  shares,  options,
warrants,  rights or other such securities are made and shall remain part of the
Pledged Property subject to the pledge and security interest granted herein.

                                      - 3 -
<PAGE>

     (j) Pledgor shall pay all charges and assessments of any nature against the
Pledged   Property  or  with  respect  thereto  prior  to  said  charges  and/or
assessments being delinquent.

     (k) Pledgor  shall  promptly  reimburse  Pledgee on demand,  together  with
interest at the rate then  applicable to the  Obligations  set forth in the Loan
Agreement, for any charges,  assessments or expenses paid or incurred by Pledgee
in its  discretion  for the  protection,  preservation  and  maintenance  of the
Pledged Property and the enforcement of Pledgee's rights  hereunder,  including,
without  limitation,  attorneys' fees and legal expenses  incurred by Pledgee in
seeking to protect,  collect or enforce  its rights in the  Pledged  Property or
otherwise hereunder.

     (l)  Pledgor  shall  furnish,  or cause to be  furnished,  to Pledgee  such
information  concerning Issuer and the Pledged Property as Pledgee may from time
to time reasonably request in good faith, including, without limitation, current
financial statements.

     (m)  Pledgee may notify  Issuer or the  appropriate  transfer  agent of the
Pledged  Securities to register the security  interest and pledge granted herein
and honor the rights of Pledgee with respect thereto.

     (n) Pledgor  waives:  (i) all rights to require  Pledgee to proceed against
any other  person,  entity or  collateral  or to exercise  any remedy,  (ii) the
defense of the statute of limitations in any action upon any of the Obligations,
(iii) any  right of  subrogation  or  interest  in the  Obligations  or  Pledged
Property until all Obligations have been paid in full, (iv) any rights to notice
of any kind or nature whatsoever,  unless  specifically  required in this Pledge
Agreement  or  non-waivable  under any  applicable  law,  and (v) to the  extent
permissible,  its rights under Section 9-112 and 9-207 of the Uniform Commercial
Code. Pledgor agrees that the Pledged Property,  other collateral,  or any other
guarantor or endorser may be released,  substituted or added with respect to the
Obligations,  in whole or in part, without releasing or otherwise  affecting the
liability of Pledgor,  the pledge and security interests granted  hereunder,  or
this Pledge  Agreement.  Pledgee is entitled to all of the benefits of a secured
party set forth in Section 9-207 of the New York Uniform Commercial Code.

     4. EVENTS OF DEFAULT
        -----------------

     All Obligations shall become immediately due and payable, without notice or
demand,  at the option of Pledgee,  upon the occurrence of any Event of Default,
as such term is  defined  in the Loan  Agreement  (each an  "Event  of  Default"
hereunder).

     5. RIGHTS AND REMEDIES
        -------------------

     At any time an Event of Default  exists or has occurred and is  continuing,
in addition to all other rights and remedies of Pledgee,  whether provided under
this Pledge  Agreement,  the Loan  Agreement,  the other  Financing  Agreements,
applicable  law or  otherwise,  Pledgee  shall  have the  following  rights  and
remedies which may be exercised without notice to, or consent by, Pledgor except
as such notice or consent is expressly provided for hereunder:

                                      - 4 -
<PAGE>

     (a) Pledgee,  at its option,  shall be empowered to exercise its continuing
right to instruct the Issuer (or the  appropriate  transfer agent of the Pledged
Securities)  to  register  any or all of the Pledged  Securities  in the name of
Pledgee or in the name of  Pledgee's  nominee and Pledgee may  complete,  in any
manner  Pledgee may deem  expedient,  any and all stock powers,  assignments  or
other  documents  heretofore  or  hereafter  executed  in blank by  Pledgor  and
delivered  to  Pledgee.  After said  instruction,  and without  further  notice,
Pledgee  shall have the  exclusive  right to exercise  all voting and  corporate
rights with respect to the Pledged  Securities and other Pledged  Property,  and
exercise any and all rights of conversion, redemption, exchange, subscription or
any other rights, privileges, or options pertaining to any shares of the Pledged
Securities  or other  Pledged  Property as if Pledgee  were the  absolute  owner
thereof,   including,   without  limitation,  the  right  to  exchange,  in  its
discretion,  any and all of the Pledged  Securities  and other Pledged  Property
upon  any  merger,  consolidation,  reorganization,  recapitalization  or  other
readjustment  with  respect  thereto.  Upon the  exercise  of any  such  rights,
privileges  or options by Pledgee,  Pledgee  shall have the right to deposit and
deliver any and all of the Pledged  Securities and other Pledged Property to any
committee, depository, transfer agent, registrar or other designated agency upon
such terms and  conditions  as Pledgee may  determine,  all  without  liability,
except to account for property  actually received by Pledgee.  However,  Pledgee
shall  have no duty to  exercise  any of the  aforesaid  rights,  privileges  or
options (all of which are  exercisable  in the sole  discretion  of Pledgee) and
shall not be responsible for any failure to do so or delay in doing so.

     (b) In addition to all the rights and remedies of a secured party under the
Uniform  Commercial Code or other  applicable law, Pledgee shall have the right,
at any time and without demand of performance or other demand,  advertisement or
notice  of any kind  (except  the  notice  specified  below of time and place of
public or private  sale) to or upon Pledgor or any other person (all and each of
which demands,  advertisements and/or notices are hereby expressly waived to the
extent  permitted by applicable law), to proceed  forthwith to collect,  redeem,
recover,  receive,  appropriate,  realize,  sell,  or  otherwise  dispose of and
deliver said Pledged  Property or any part thereof in one or more lots at public
or private sale or sales at any exchange,  broker's board or at any of Pledgee's
offices or  elsewhere at such prices and on such terms as Pledgee may deem best.
The foregoing disposition(s) may be for cash or on credit or for future delivery
without assumption of any credit risk, with Pledgee having the right to purchase
all or any part of said  Pledged  Property  so sold at any such  sale or  sales,
public or private,  free of any right or equity of redemption in Pledgor,  which
right or equity is hereby expressly waived or released by Pledgor.  The proceeds
of  any  such  collection,   redemption,   recovery,   receipt,   appropriation,
realization,  sale or other disposition,  after deducting all costs and expenses
of every kind incurred  relative thereto or incidental to the care,  safekeeping
or  otherwise  of any and all  Pledged  Property  or in any way  relating to the
rights of Pledgee hereunder, including attorneys' fees and legal expenses, shall
be  applied  first to the  satisfaction  of the  Obligations  (in such  order as
Pledgee  may elect and  whether or not due) and then to the payment of any other
amounts required by applicable law, including Section 9-504(1)(c) of the Uniform
Commercial  Code,  with  Pledgor  to be and remain  liable  for any  deficiency.
Pledgor  shall be liable to Pledgee  for the payment on demand of all such costs
and expenses,  together with interest at the then  applicable  rate set forth in
the Loan Agreement,  and any attorneys' fees and legal expenses.  Pledgor agrees
that five (5) days prior  written  notice by Pledgee  designating  the place and
time of any public  sale or of the time after  which any  private  sale or other
intended  disposition  of any or all of the Pledged  Property is to be made,  is
reasonable notification of such matters.

                                      - 5 -
<PAGE>

     (c) Pledgor  recognizes  that Pledgee may be unable to effect a public sale
of all or part  of the  Pledged  Property  by  reason  of  certain  prohibitions
contained  in the  Securities  Act of 1933,  as amended,  as now or hereafter in
effect  or in  applicable  Blue Sky or other  state  securities  law,  as now or
hereafter in effect, but may be compelled to resort to one or more private sales
to a restricted  group of purchasers  who will be obliged to agree,  among other
things,  to acquire such Pledged  Property for their own account for  investment
and not with a view to the distribution or resale thereof. If at the time of any
sale of the Pledged  Property or any part  thereof,  the same shall not, for any
reason whatsoever,  be effectively registered (if required) under the Securities
Act of 1933 (or other  applicable  state  securities  law),  as then in  effect,
Pledgee in its sole and absolute  discretion  is authorized to sell such Pledged
Property  or such part  thereof  by private  sale in such  manner and under such
circumstances as Pledgee or its counsel may deem necessary or advisable in order
that such sale may legally be effected without registration. Pledgor agrees that
private  sales so made may be at prices and other  terms less  favorable  to the
seller than if such Pledged  Property were sold at public sale, and that Pledgee
has no obligation to delay the sale of any such Pledged  Property for the period
of time necessary to permit Issuer, even if Issuer would agree, to register such
Pledged Property for public sale under such applicable  securities laws. Pledgor
agrees that any private  sales made under the foregoing  circumstances  shall be
deemed to have been in a commercially reasonable manner.

     (d) All of the Pledgee's  rights and remedies,  including,  but not limited
to, the foregoing and those otherwise arising under this Pledge  Agreement,  the
Loan Agreement and the other Financing  Agreements,  the instruments  comprising
the Pledged Property,  applicable law or otherwise,  shall be cumulative and not
exclusive and shall be enforceable  alternatively,  successively or concurrently
as  Pledgee  may deem  expedient.  No failure or delay on the part of Pledgee in
exercising  any of its options,  powers or rights or partial or single  exercise
thereof, shall constitute a waiver of such option, power or right.

     6. JURY TRIAL WAIVER; OTHER WAIVERS AND CONSENTS; GOVERNING LAW
        ------------------------------------------------------------

     (a) The validity,  interpretation  and enforcement of this Pledge Agreement
and  the  other  Financing  Agreements  and  any  dispute  arising  out  of  the
relationship  between the parties hereto,  whether in contract,  tort, equity or
otherwise,  shall be  governed  by the  internal  laws of the  State of  Georgia
(without giving effect to principles of conflicts of law).

     (b)  Pledgor   irrevocably   consents  and  submits  to  the  non-exclusive
jurisdiction  of the  Superior  Court of Fulton  County,  Georgia and the United
States  District  Court for the  Northern  District  of  Georgia  and waives any
objection  based on venue or forum non  conveniens  with  respect  to any action
instituted  therein  arising  under this  Pledge  Agreement  or any of the other
Financing  Agreements or in any way  connected  with or related or incidental to
the dealings of the parties hereto in respect of this Pledge Agreement or any of
the other Financing Agreements or the transactions related hereto or thereto, in
each case whether now existing or  hereafter  arising,  and whether in contract,
tort, equity or otherwise,  and agrees that any dispute with respect to any such
matters shall be heard only in the courts  described  above (except that Pledgee
shall have the right to bring any action or  proceeding  against  Pledgor or its
property in the courts

                                      - 6 -
<PAGE>

of any other  jurisdiction which Pledgee deems necessary or appropriate in order
to realize on the Pledged  Property or to otherwise  enforce its rights  against
Pledgor or its property).

     (c) Pledgor hereby waives  personal  service of any and all process upon it
and  consents  that all such  service of process may be made by  certified  mail
(return receipt requested)  directed to its address set forth herein and service
so made shall be deemed to be completed  five (5) days after the same shall have
been so deposited in the U.S. mails,  or, at Pledgee's  option,  by service upon
Pledgor in any other manner provided under the rules of any such courts.  Within
thirty  (30) days after such  service,  Pledgor  shall  appear in answer to such
process,  failing  which  Pledgor shall be deemed in default and judgment may be
entered by Pledgee  against Pledgor for the amount of the claim and other relief
requested.

     (d) PLEDGOR HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM,  DEMAND,
ACTION OR CAUSE OF ACTION (i) ARISING UNDER THIS PLEDGE  AGREEMENT OR ANY OF THE
OTHER  FINANCING  AGREEMENTS  OR (ii) IN ANY WAY  CONNECTED  WITH OR  RELATED OR
INCIDENTAL  TO THE  DEALINGS  OF PLEDGOR  AND  PLEDGEE IN RESPECT OF THIS PLEDGE
AGREEMENT OR ANY OF THE OTHER FINANCING  AGREEMENTS OR THE TRANSACTIONS  RELATED
HERETO OR THERETO IN EACH CASE WHETHER NOW EXISTING OR  HEREAFTER  ARISING,  AND
WHETHER IN  CONTRACT,  TORT,  EQUITY OR  OTHERWISE.  PLEDGOR  HEREBY  AGREES AND
CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED
BY COURT TRIAL  WITHOUT A JURY AND THAT  PLEDGOR OR PLEDGEE MAY FILE AN ORIGINAL
COUNTERPART  OF A COPY OF THIS  PLEDGE  AGREEMENT  WITH  ANY  COURT  AS  WRITTEN
EVIDENCE OF THE  CONSENT OF THE  PARTIES  HERETO TO THE WAIVER OF THEIR RIGHT TO
TRIAL BY JURY.

     (e)  Pledgee  shall not have any  liability  to Pledgor  (whether  in tort,
contract,  equity or  otherwise)  for losses  suffered by Pledgor in  connection
with, arising out of, or in any way related to the transactions or relationships
contemplated by this Pledge  Agreement,  or any act, omission or event occurring
in connection  herewith,  unless it is determined by a final and  non-appealable
judgment or court order  binding on Pledgee,  that the losses were the result of
acts or omissions  constituting gross negligence or willful  misconduct.  In any
such  litigation,  Pledgee  shall be entitled  to the benefit of the  rebuttable
presumption  that it acted in good faith and with the exercise of ordinary  care
in the performance by it of the terms of this Pledge Agreement.

     7. MISCELLANEOUS
        -------------

     (a) Pledgor  agrees that at any time and from time to time upon the written
request of Pledgee,  Pledgor shall  execute and deliver such further  documents,
including,  but not limited to,  irrevocable  proxies or stock  powers,  in form
satisfactory  to counsel  for  Pledgee,  and will take or cause to be taken such
further  acts as Pledgee  may  request in order to effect the  purposes  of this
Pledge Agreement and perfect or continue the perfection of the security interest
in the Pledged Property granted to Pledgee hereunder.

                                      - 7 -
<PAGE>

     (b) Beyond the  exercise of  reasonable  care to assure the safe custody of
the Pledged Property (whether such custody is exercised by Pledgee, or Pledgee's
nominee,  agent or bailee)  Pledgee or Pledgee's  nominee  agent or bailee shall
have no duty or liability to protect or preserve any rights  pertaining  thereto
and shall be  relieved  of all  responsibility  for the  Pledged  Property  upon
surrendering it to Pledgor or foreclosure with respect thereto.

     (c) All  notices,  requests and demands to or upon the  respective  parties
hereto  shall be in writing and shall be deemed to have been duly given or made:
if delivered in person,  immediately  upon  delivery;  if by telex,  telegram or
facsimile  transmission,  immediately  upon  sending  and upon  confirmation  of
receipt; if by nationally recognized overnight courier service with instructions
to deliver the next business day, one (1) business day after sending;  and if by
registered or certified  mail,  return  receipt  requested,  five (5) days after
mailing.  All notices,  requests and demands upon the parties are to be given to
the following  addresses (or to such other address as any party may designate by
notice in accordance with this Section):

         If to Pledgor:             Delta Apparel, Inc.
                                    3355 Breckinridge Boulevard, Suite 100
                                    Duluth, Georgia 30096
                                    Attention: Chief Financial Officer

         If to Pledgee:             Congress Financial Corporation (Southern)
                                    200 Galleria Parkway, Suite 1500
                                    Atlanta, Georgia 30339
                                    Attention: Portfolio Manager

     (d) All references to the plural herein shall also mean the singular and to
the singular shall also mean the plural. All references to Pledgor,  Pledgee and
Issuer pursuant to the definitions set forth in the recitals  hereto,  or to any
other person herein, shall include their respective  successors and assigns. The
words  "hereof,"  "herein,"  "hereunder,"  "this Pledge  Agreement" and words of
similar  import  when used in this Pledge  Agreement  shall refer to this Pledge
Agreement as a whole and not any particular  provision of this Pledge  Agreement
and as this Pledge  Agreement now exists or may hereafter be amended,  modified,
supplemented, extended, renewed, restated or replaced. An Event of Default shall
exist or  continue  or be  continuing  until  such Event of Default is waived in
accordance  with Section 7(g) hereof.  All  references  to the term  "Person" or
"Persons" herein shall mean any individual,  sole  proprietorship,  partnership,
corporation  (including,   without  limitation,  any  corporation  which  elects
subchapter  S status  under the  Internal  Revenue  Code of 1986,  as  amended),
limited liability corporation, limited liability participation,  business trust,
unincorporated  association,  joint stock company, trust, joint venture or other
entity or any government or any agency, instrumentality or political subdivision
thereof.

     (e) This Pledge  Agreement,  the other  Financing  Agreements and any other
document  referred to herein or therein  shall be binding  upon  Pledgor and its
successors and assigns and inure to the benefit of and be enforceable by Pledgee
and its successors and assigns.

                                      - 8 -
<PAGE>

     (f) If any  provision  of this  Pledge  Agreement  is held to be invalid or
unenforceable,  such  invalidity or  unenforceability  shall not invalidate this
Pledge  Agreement as a whole,  but this Pledge  Agreement  shall be construed as
though  it did not  contain  the  particular  provision  held to be  invalid  or
unenforceable  and the rights and  obligations of the parties shall be construed
and enforced only to such extent as shall be permitted by applicable law.

     (g)  Neither  this  Pledge  Agreement  nor any  provision  hereof  shall be
amended, modified, waived or discharged orally or by course of conduct, but only
by a written agreement signed by an authorized officer of Pledgee. Pledgee shall
not, by any act,  delay,  omission or otherwise  be deemed to have  expressly or
impliedly  waived any of its rights,  powers and/or  remedies unless such waiver
shall be in writing and signed by an  authorized  officer of  Pledgee.  Any such
waiver shall be enforceable only to the extent specifically set forth therein. A
waiver by Pledgee of any right,  power and/or  remedy on any one occasion  shall
not be  construed as a bar to or waiver of any such right,  power and/or  remedy
which Pledgee would  otherwise have on any future  occasion,  whether similar in
kind or otherwise.

                                      - 9 -
<PAGE>

     IN WITNESS  WHEREOF,  Pledgor has executed this Pledge  Agreement as of the
day and year first above written.

                                        DELTA APPAREL, INC.

                                        By:  /s/ Herbert M. Mueller
                                             -----------------------------
                                        Title:  Vice President & CFO

                                     - 10 -

<PAGE>

                                    EXHIBIT A
                                       TO
                          PLEDGE AND SECURITY AGREEMENT
                          -----------------------------

   Issuer                          Certificate No.                       Shares
   ------                          ---------------                       ------

Delta Apparel Honduras, S.A.                                              1,622

                                     - 11 -

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