Document:

<PAGE>   1
                                                                    EXHIBIT 10.2

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT (this "Agreement"), is made and entered into
as of July 23, 2001 by and among AMY VIDRINE SAMSON, a resident of the State of
Louisiana ("Employee"), and Crown Crafts, Inc., a Georgia corporation
("Employer").

                                   WITNESSETH:

         WHEREAS, Employer and Employee each deem it necessary and desirable,
for their mutual protection, to execute a written document setting forth the
terms and conditions of their employment relationship;

         NOW, THEREFORE, in consideration of the employment of Employee by
Employer, of the premises and the mutual promises and covenants contained
herein, and of other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto, intending to
be legally bound, agree as follows:

         1.       Employment and Duties. Employer hereby employs Employee to
serve as Chief Financial Officer of Employer and to perform such other duties
and responsibilities as customarily performed by persons acting in such
capacity. During the term of this Agreement, Employee will devote her full time
and effort to her duties hereunder.

         2.       Term. Subject to the provisions regarding Termination as set
forth in Section 10 of this Agreement, the period of Employee's employment under
this Agreement shall be deemed to have commenced as of the date hereof and shall
end on March 31, 2004 ("Initial Period") unless Employee dies before the end of
the Initial Period, provided, that the term of this Agreement shall after March
31, 2003 be extended automatically on the 1st day of each month for one
additional month so that this Agreement shall always be for a full one-year
period unless the Employer or the Employee shall affirmatively decide and notify
the other to the contrary in writing of its or her intention that this Agreement
shall not be so extended, in which event this Agreement shall terminate at the
end of the one year period following such notice.

         3.       Compensation. For all services to be rendered by Employee
during the term of this Agreement, Employer shall pay Employee in accordance
with the terms set forth in

<PAGE>   2

Exhibit A, net of applicable withholdings, payable in bi-weekly installments
except all bonuses, if any, will be paid annually in July of each year.

         4.       Expenses. So long as Employee is employed hereunder, Employee
is entitled to receive reimbursement for, or seek payment directly by Employer
of, all reasonable expenses which are consistent with the normal policy of
Employer in the performance of Employee's duties hereunder, provided that
Employee accounts for such expenses in writing.

         5.       Employee Benefits. So long as Employee is employed hereunder,
Employee shall be entitled to participate in the various employee benefit
programs available to similarly-situated employees which are adopted by Employer
from time to time.

         6.       Vacation. Employee shall be entitled to fifteen (15) days
annual vacation.

         7.       Confidentiality. In Employee's position as an employee of
Employer, Employee has had and will have access to confidential information,
trade secrets and other proprietary information of vital importance to Employer
and has developed and will continue to develop relationships with customers,
employees and others who deal with Employer which are of value to Employer.
Employer requires, as a condition to Employee's employment with Employer, that
Employee agree to certain restrictions on Employee's use of the proprietary
information and valuable relationships developed during Employee's employment
with Employer. In consideration of the terms and conditions contained herein,
the parties hereby agree as follows:

                  7.1      Employer and Employee mutually agree and acknowledge
that Employer may entrust Employee with highly sensitive, confidential,
restricted and proprietary information concerning various Business Opportunities
(as hereinafter defined), customer lists, and personnel matters. Employee
acknowledges that she shall bear a fiduciary responsibility to Employer to
protect such information from use or disclosure that is not necessary for the
performance of Employee's duties hereunder, as an essential incident of
Employee's employment with Employer.

                                       2

<PAGE>   3

         7.2      For the purposes of this Section 7, the following definitions
shall apply:

                  7.2.1    "Trade Secret" shall mean the identity and addresses
of customers of Employer, the whole or any portion or phase of any scientific or
technical information, design, process, procedure, formula or improvement that
is valuable and secret (in the sense that it is not generally known to
competitors of Employer) and which is defined as a "trade secret" under Georgia
law pursuant to the Georgia Trade Secrets Act.

                  7.2.2    "Confidential Information" shall mean any data or
information, other than Trade Secrets, which is material to Employer and not
generally known by the public. Confidential Information shall include, but not
be limited to, Business Opportunities of Employer (as hereinafter defined), the
details of this Agreement, Employer's business plans and financial statements
and projections, information as to the capabilities of Employer's employees,
their respective salaries and benefits and any other terms of their employment
and the costs of the services Employer may offer or provide to the customers it
serves, to the extent such information is material to Employer and not generally
known by the public.

                  7.2.3    "Business Opportunities" shall mean all activities of
the type conducted, authorized, offered, or provided to the Employer by Employee
prior to termination of her employment hereunder, including the duties performed
by the Employee under Section 1, "Employment and Duties", of this Agreement. For
purpose of reference, such activities as of the date of the commencement of this
Agreement include the business of manufacturing, marketing and distribution of
infant bedding, infant blankets, infant accessories, infant bibs, infant bath
items and infant gift sets and the Employer's operations and activities related
thereto.

                  7.2.4    Notwithstanding the definitions of Trade Secrets,
Confidential Information, and Business Opportunities set forth above, Trade
Secrets, Confidential Information, and Business Opportunities shall not include
any information:

                           (i)      that is or becomes generally known to the
public;

                           (ii)     that is already known by Employee or is
developed by Employee after termination of employment through entirely
independent efforts;

                           (iii)    that Employee obtains from an independent
source having a bona fide right to use and disclose such information;

                                       3

<PAGE>   4

                           (iv)     that is required to be disclosed by law,
except to the extent eligible for special treatment under an appropriate
protective order; or

                           (v)      that Employer's Board of Directors approves
for release.

         7.3      Employee shall not, without the prior approval of Employer's
Board of Directors, during her employment with Employer and for so long
thereafter as the information or data remain Trade Secrets, use or disclose, or
negligently permit any unauthorized person who is not an employee of Employer to
use, disclose, or gain access to, any Trade Secrets.

         8.       Observance of Security Measures. During Employee's employment
with Employer, Employee is required to observe all security measures adopted to
protect Trade Secrets, Confidential Information and Business Opportunities.

         9.       Return of Materials. Upon the request of Employer and, in any
event, upon the termination of her employment with Employer, Employee shall
deliver to Employer all memoranda, notes, records, manuals or other documents,
including all copies of such materials containing Trade Secrets or Confidential
Information, whether made or compiled by Employee or furnished to her from any
source by virtue of her employment with Employer.

         10.      Termination.

                  10.1     During the term of this Agreement, Employee's
employment may be terminated (i) at the election of Employer for Cause; (ii) at
Employee's election for Good Reason; (iii) upon Employee's death; (iv) at the
election of either party, upon Employee's disability resulting in an inability
to perform the duties described in Section 1 of this Agreement for a period of
180 consecutive days; (v) as set forth in Section 13 of this Agreement; or (vi)
by mutual agreement of Employer and Employee

                  10.2     Cause. For purposes of this Agreement, a termination
of employment is for "Cause" if the Employee has been convicted of a felony or
if the termination is evidenced by a resolution adopted in good faith by
two-thirds (2/3) of the Board that the Employee (i) intentionally and
continually failed substantially to perform her reasonably assigned duties with
the Employer (other than a failure resulting from the Employee's incapacity due
to physical or mental illness or from the Employee's assignment of duties that
would constitute "Good Reason" as hereinafter defined) which failure continued
for a period of at least thirty (30) days after a written notice of demand for
substantial performance has been delivered to the Employee

                                       4

<PAGE>   5

specifying the manner in which the Employee has failed substantially to perform,
or (ii) intentionally engaged in illegal conduct or gross misconduct which
results in material economic harm to the Employer; provided, however, that no
termination of the Employee's employment shall be for Cause as set forth in
clause (ii) above until (x) there shall have been delivered to the Employee a
copy of a written notice setting forth that the Employee was guilty of the
conduct set forth in clause (ii) and specifying the particulars thereof in
detail, and (y) the Employee shall have been provided an opportunity to be heard
in person by the Board (with the assistance of the Employee's counsel if the
Employee so desires). No act, or failure to act, on the Employee's part, shall
be considered "intentional" unless the Employee has acted or failed to act with
a lack of good faith and with a lack of reasonable belief that the Employee's
action or failure to act was in the best interests of the Employer. Any act, or
failure to act, based upon authority given pursuant to a resolution duly adopted
by the Board or upon the instructions of any senior officer of the Employer or
based upon the advice of counsel for the Employer shall be conclusively presumed
to be done, or omitted to be done, by the Employee in good faith and in the best
interests of the Employer. Any termination of the Employee's employment by the
Employer hereunder shall be deemed to be a termination other than for Cause
unless it meets all requirements of this Section 10.2

                  10.3     For purposes of this Agreement, "Good Reason" shall
mean a good faith determination by the Employee, in the Employee's sole and
absolute judgment, that any one or more of the following events or conditions
has occurred, without the Employee's express written consent:

                           (i)      The assignment to the Employee of any duties
inconsistent with the Employee's position (including, without limitation,
status, titles and reporting requirements), authority, duties or
responsibilities, or any other action by the Employer that results in a material
diminution in such position, authority, duties or responsibilities, excluding
for this purpose isolated and inadvertent action not taken in bad faith and
remedied by the Employer promptly after receipt of notice thereof given by the
Employee;

                           (ii)     A Material reduction by the Employer of the
Employee's base salary as the same may be increased from time to time, or a
change in the eligibility requirements

                                       5

<PAGE>   6

or performance criteria under any bonus, incentive or compensation plan, program
or arrangement under which the Employee is covered which adversely affects the
Employee;

                           (iii)    any failure to pay the Employee any
compensation or benefits to which she is entitled within five (5) days of the
date due;

                           (iv)     the Employer's requiring the Employee to be
based anywhere other than within fifty (50) miles of the Employee's job
location, except for reasonably required travel on the Employer's business which
is not materially increased;

                           (v)      without replacement by a plan providing
benefits to the Employee substantially equivalent to or greater than those
discontinued, the failure by the Employer to continue in effect, within its
maximum stated term, any pension, bonus, incentive, stock ownership, purchase,
option, life insurance, health, accident disability, or any other employee
benefit plan, program or arrangement, in which the Employee participates, or the
taking of any action by the Employer that would adversely affect the Employee's
participation or materially reduce the Employee's benefits under any of such
plans;

                           (vi)     the taking of any action by the Employer
that would materially adversely affect the physical conditions in or under which
the Employee performs her employment duties, provided that the Employer may take
action with respect to such conditions so long as such conditions are at least
commensurate with the conditions in or under which an officer of the Employee's
status would customarily perform her employment duties;

                           (vii)    the insolvency or the filing of a petition
for bankruptcy by the Employer;

                           (viii)   any purported termination of the Employee's
employment for Cause by the Employer which does not comply with the terms of
Section 10.2 hereof; or

                           (ix)     any breach by the Employer of any material
provision of this Agreement.

                  The Employee's right to terminate her employment pursuant to
this Section 10.3 shall not be affected by her incapacity due to physical or
mental illness.

                  10.4     If this Agreement is terminated either pursuant to
Cause, Employee's death or Employee's disability, Employee shall receive no
further compensation or benefits, other than Employee's salary and other
compensation as accrued through the date of such termination.

                                       6

<PAGE>   7

                  10.5     If this Agreement is terminated at the Employer's
election without Cause or at the election of Employee for Good Reason, Employee
shall be entitled to those benefits to which Employee would be entitled if a
Change in Control would have occurred as set forth in Section 13 hereof, and
Employee shall be entitled to payment of her compensation, on a bi-weekly basis,
during the Restricted Period, as defined in Section 12.1 hereof.

         11.      Notices. All notice provided for herein shall be in writing
and shall be deemed to be given when delivered in person or deposited in the
United States Mail, registered or certified, return receipt requested, with
proper postage prepaid and addressed as follows:

                  Employer:                Crown Crafts, Inc.
                                           1500 RiverEdge Parkway
                                           Suite 200
                                           Atlanta, Georgia  30328
                                           Attn:  E. Randall Chestnut, President

                  with a copy to:          Rogers & Hardin LLP
                                           2700 Cain Tower
                                           229 Peachtree Street
                                           Atlanta, Georgia  30303
                                           Attn:  Steven E. Fox, Esquire

                  Employee:                Amy Vidrine Samson
                                           3932 Mimosa Street
                                           Baton Rouge, LA 70808

                  with a copy to:          Troutman Sanders LLP
                                           600 Peachtree Street, NE
                                           Suite 5200
                                           Atlanta, Georgia  30308
                                           Attn:  Neal H. Ray, Esq.

         12.      Restrictive Covenants

                  12.1     For purposes of this Agreement, the following terms
shall have the following respective meanings:

                           "Competing Business" means a business that, wholly or
partly, directly or indirectly, engages in manufacturing, marketing and
distribution of infant bedding, infant blankets, infant accessories, infant
bibs, infant bath items or infant gift sets.

                                       7

<PAGE>   8

                           "Competitive Position" means: (A) Employee's direct
or indirect equity ownership (excluding ownership of less than one percent (1%)
of the outstanding common stock of any publicly held corporation) or control of
any portion of any Competing Business; (B) Employee serving as a director,
officer, consultant, lender, joint venturer, partner, agent, advisor or
independent contractor of or to any Competing Business (except where Employee's
duties would relate to divisions or activities which do not compete with the
Employer); or (C) any employment arrangement between Employee and any Competing
Business whereby Employee is required to perform services for the Competing
Business substantially similar to those that Employee performed for the
Employer.

                           "Restricted Territory" means the area within a 35
mile radius of the city limits of the cities listed on Schedule 12, attached
hereto.

                           "Restricted Period" means a period of time that is
one (1) year following termination of this Agreement.

                  12.2     Employee agrees that she will not, without the prior
written consent of the Board, either directly or indirectly, alone or in
conjunction with any other person or entity, accept, enter into or attempt to
enter into a Competitive Position in the Restricted Territory at any time during
her employment with the Employer and during the Restricted Period.

                  12.3     Employee agrees that she will not, without the prior
written consent of the Board, either directly or indirectly, alone or in
conjunction with any other person or entity, solicit, entice or induce any
customer of the Employer (or any actively sought or prospective customer of the
Employer) in which Employee had direct or indirect contact during the Term for
or on behalf of any Competing Business in the Restricted Territory at any time
during her employment with the Employer and during the Restricted Period.

                  12.4     Employee agrees that she will not, without the prior
written consent of the Board, either directly or indirectly, alone or in
conjunction with any other person or entity, solicit or attempt to solicit any
"key or material" employee, consultant, contractor or other personnel of the
Employer in the Restricted Territory to terminate, alter or lessen that party's
affiliation with the Employer or to violate the terms of any agreement or
understanding between such employee, consultant, contractor or other person and
the Employer at any time during her employment with the Employer or for a period
of two years thereafter. For purposes of this subsection (d), "key or

                                       8

<PAGE>   9

material" employees, consultants, contractors or other personnel shall mean
those such persons or entities who have direct access to or have had substantial
exposure to Confidential Information or Trade Secrets.

                  12.5     Notwithstanding any expiration or termination of the
Term, the provisions of this Section 12 shall survive and remain in full force
and effect, as shall any other provision hereof that, by its terms or reasonable
interpretation thereof, sets forth obligations that extend beyond the
termination of this Agreement.

         13.      Change in Control.

                  The benefits provided in this Section 13 shall be payable to
Employee if: (i) there shall have been a Change in Control of Employer, as set
forth in this Section 13, (ii) Employee is employed by Employer at such time,
and (iii) this Agreement is not specifically assumed by the new Control Party
with the Employee retaining the same responsibilities, job location and benefits
other than job title.

                  13.1     "Change in Control" shall mean:

                           13.1.1   any transaction, whether by merger,
consolidation, asset sale, tender offer, reverse stock split, or otherwise,
which results in the acquisition or beneficial ownership (as such term is
defined under rules and regulations promulgated under the Securities Exchange
Act of 1934, as amended) by any person or entity or any group of persons or
entities acting in concert, of 20% or more of the outstanding shares of common
stock of Employer; provided, that, in determining whether a Change in Control
has occurred, shares acquired by Bank of America, N.A., The Prudential Insurance
Company of America and Wachovia Bank, N.A. pursuant to that certain Subordinated
Note and Warrant Purchase Agreement dated as of July 23, 2001 shall not be
included.

                           13.1.2   the sale of all or substantially all of the
assets of Employer; or

                           13.1.3   the liquidation of Employer.

                  13.2     If there occurs a Change in Control of Employer,
Employee shall be entitled within 90 days after the date of closing of the
transaction effecting such Change in Control to deliver to Employer written
notice of termination of this Agreement whereupon Employer shall pay to Employee
a lump sum cash payment in an amount equal to the then current compensation and
benefits, including salary, bonuses, all perquisites, and all other forms

                                       9

<PAGE>   10

of compensation that would be remaining under the applicable terms of the
Agreement then in effect for the greater of the remaining term of this Agreement
or one (1) year. This payment shall be paid to Employee by Employer within 30
days after the delivery of such notice of termination by Employee to Employer.

         14.      Miscellaneous.

                  14.1     This Agreement, together with Exhibits A, B, C and
Schedule 12, constitutes and expresses the whole agreement of the parties in
reference to the employment of Employee by Employer, and there are no
representations, inducements, promises, agreements, arrangements, or
undertakings oral or written, between the parties other than those set forth
herein.

                  14.2     This Agreement shall be governed by the laws of the
State of Georgia.

                  14.3     Should any clause or any other provision of this
Agreement be determined to be void or unenforceable for any reason, such
determination shall not affect the validity or enforceability of any clause or
provision of this Agreement, all of which shall remain in full force and effect.

                  14.4     Time is of the essence in this Agreement.

                  14.5     This Agreement shall be binding upon and enure to the
benefit of the parties hereto and their successors and assigns. This Agreement
shall not be assignable by Employee without the prior written consent of
Employer.

                  14.6     This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original and all of which taken
together shall constitute but a single instrument.

                                       10

<PAGE>   11

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
day and year first written above.

                                       "Employee"

/s/ Janet B. Talloy                    /s/ Amy Vidrine Samson             (SEAL)
---------------------------------      -------------------------------------
Witness                                    Amy Vidrine Samson
                                       -------------------------------------

ATTEST:                                "Employer"

                                       CROWN CRAFTS, INC.

By: /s/ Robert A. Enholm               /s/ E. Randall Chestnut
   -------------------------------     -------------------------------------
   Robert A. Enholm    , Secretary     President and Chief Executive Officer
   --------------------                -------------------------------------

          (CORPORATE SEAL)

                                       11

<PAGE>   12

                                    Exhibit A
                     to Employment Agreement By and Between
                             Amy Vidrine Samson and
                            Crown Crafts, Inc., Inc.

                              Employee Compensation

Capitalized terms used herein and not defined shall have the meanings set forth
in the Employment Agreement.

BASE SALARY: $160,000 per year subject to annual increases of at least 5%.

LONG TERM INCENTIVES: Restricted Stock Grant for 100,000 shares of the
Employer's Common Stock to be adjusted to maintain the Employee's ownership
percentage upon exercise of warrants by Bank of America, N.A., The Prudential
Insurance Company of America and Wachovia, N.A. and should Employee elect income
tax treatment for such grant under Section 83(b) of the Internal Revenue Code,
Employer to loan Employee 83(b) election costs to be repaid over three (3) year
period by biweekly payroll deduction, interest free or such shorter period as
mutually agreed by Employer and Employee; provided, however, that if such
100,000 shares are not granted (at no cost to Employee other than taxes) on or
before the date of this Agreement, Employee may elect instead to receive a
payment of $192,000, payable by Employer based on the Senior Management
Compensation Strategy Report dated June 29, 2001 prepared by SCA Consulting
which will be payable three years from the time when the stock should have been
granted. This cash payment will vest 1/3 at the end of year one, 2/3 at the end
of year two and be fully vested at the end of year three. In the event of
Termination without Cause, this cash payment will vest 100% at the time of
Termination and will become immediately payable.

BONUS: Payable each July, as follows for Fiscal Year 2002, and thereafter, based
on a performance matrix established against budgets and approved by the
Employer's Board of Directors. See Exhibit B and Exhibit C attached hereto.

Amy Vidrine Samson's bonus will be the greater of the amount calculated under
the corporate budget or the bonus she would have received by remaining with
Hamco (maximum $37,500).

<TABLE>
<CAPTION>
                         Target Bonus
                    ---------------------
           Salary   % of Salary  $ Amount    10%      20%      30%      40%      50%      60%      70%      80%      90%     100%
          --------  -----------  --------   -----   ------   ------   ------   ------   ------   ------   ------   ------   ------
<S>       <C>       <C>          <C>        <C>     <C>      <C>      <C>      <C>      <C>      <C>      <C>      <C>      <C>
Amy
Vidrine   $160,000       40%      64,000    6,400   12,800   19,200   25,600   32,000   38,400   44,800   51,200   57,600   64,000
Samson
</TABLE>

INSURANCE: Employee's and her dependents' hospitalization, dental, life
insurance and 401(k) plans as adopted by the Employer's Board of Directors for
similarly-situated employees of the Employer, subject to the terms of such
plans.

<PAGE>   13

                                   SCHEDULE 12

<TABLE>
<CAPTION>
                           <S>      <C>
                           1.       Bentonville, Arkansas

                           2.       Paramus, New Jersey

                           3.       Troy, Michigan

                           4.       Minneapolis, Minnesota

                           5.       Burlington, New Jersey

                           6.       New York, New York

                           7.       Plano, Texas

                           8.       Chicago, Illinois
</TABLE>

<PAGE>   14

                                   EXHIBIT "B"

PROPOSED ANNUAL CASH PAY

THE PROPOSED ANNUAL BONUSES WILL BE DRIVEN BY EBITDA (see facing exhibit)

         -        Cash bonuses will be awarded based on Corporate or division
                  EBITDA performance
                  -        At 90% of target EBITDA, the bonus is 5% of target
                           maximum bonus
                  -        Above 91% of EBITDA, each additional 0.10% of EBITDA
                           results in incremental 1.0% of bonus

         -

         -        EBITDA targets for maximum bonuses are set higher than EBITDA
                  levels shared with on April 20, 2001

         -

         -        In FY2002, CCIP bonuses are calculated independently of Pillow
                  Buddies. CCIP and Buddies are combined for all years
                  thereafter

         -

         -        Hamco and Burgundy are combined for purposes of calculating
                  bonuses

         -

         -        In FY2002, Corporate level bonuses will be based on
                  performance from transaction (August 2001) through March 2002,
                  which includes 8 months of corporate expenses and post-close
                  transition expenses

                  -        Other business lines will be based on full fiscal
                           year results without respect to corporate or
                           transition expenses

<PAGE>   15

                                   EXHIBIT "C"

FY2002 Bonus Structure

<TABLE>
<CAPTION>
                                             Hamco/
                                            Burgundy
                                CCIP(3)       (4)       Churchill    PB (3)    Corp. (5)(6)     TOTAL
                                --------    --------    ---------    ------    ------------    -------
<S>                             <C>         <C>         <C>          <C>       <C>             <C>
EBITDA- Bonus(1)                $6,553       $7,335       $637       $824       $8,209         $11,722
EBITDA- Lenders(2)              $5,974       $7,135       $537       $624       $7,539         $10,643

Target Bonus Potential          $  324       $   89       $ 46       $  0       $  274         $   733
</TABLE>

Bonus Payouts

<TABLE>
<CAPTION>
                                                                           Total Cash     EBITDA
                    % Bonus                                                   Bonus       Before       EBITDA      Excess
% Target EBITDA       (7)                                                     Payout       Bonus       w/Bonus    Bonus(8)
---------------     -------                                                ----------     -------      -------    --------
<S>                 <C>       <C>      <C>      <C>       <C>    <C>       <C>            <C>          <C>        <C>
        90%            5%      $16      $4       $2       $0      $14           $37       $10,187      $10,150       $37
        91%           10%      $32      $9       $5       $0      $27           $73       $10,341      $10,267       $73
        92%           20%      $65     $18       $9       $0      $55          $147       $10,494      $10,348      $147
        93%           30%      $97     $27      $14       $0      $82          $220       $10,648      $10,428      $215
        94%           40%     $130     $35      $18       $0     $110          $293       $10,801      $10,508      $135
        95%           50%     $162     $44      $23       $0     $137          $366       $10,955      $10,588       $55
        96%           60%     $195     $53      $27       $0     $164          $440       $11,108      $10,669        $0
        97%           70%     $227     $62      $32       $0     $192          $513       $11,262      $10,749        $0
        98%           80%     $260     $71      $37       $0     $219          $586       $11,415      $10,829        $0
        99%           90%     $292     $80      $41       $0     $247          $659       $11,569      $10,909        $0
        100%         100%     $324     $89      $46       $0     $274          $733       $11,722      $10,989        $0
</TABLE>

(1)      'EBITDA - Bonus' represents EBITDA targets for 100% bonus, which is set
         higher than EBITDA levels shared with lenders.
(2)      'EBITDA - Lenders' represents EBITDA levels shared with lenders on
         April 20, 2001.
(3)      In FY2002 CCIP bonuses are calculated independently of Pillow Buddies.
         CCIP and Pillow Buddies combined all years thereafter.
(4)      Hamco and Burgundy are combined for purposes of calculating bonuses.
(5)      In FY2002, Corporate level bonuses will be based on performance from
         transaction close (August 2001) through March 2002, which includes 8
         months of corporate expenses and all post-close transition expenses.
         Other business lines will be based on full fiscal year results without
         respect to corporate or transition expenses.
(6)      New CFO Amy Samson will receive greater of bonus under corporate budget
         or bonus she would have received by remaining with Hamco (maximum
         $37,500).
(7)      Above 91% of EBITDA, each additional 0.10% of EBITDA will result in
         incremental 1.0% of bonus.
(8)      Excess bonus relative to lenders' anticipated EBITDA level.<PAGE>   1

                                                                    EXHIBIT 10.3

                               CROWN CRAFTS, INC.
                           RESTRICTED STOCK AGREEMENT

         THIS RESTRICTED STOCK AGREEMENT, made and entered into this 23rd day of
July, 2001 (the "Grant Date") by and between CROWN CRAFTS, INC., a Georgia
corporation (the "Company"), and _______________________ (the "Grantee");

                                   WITNESSETH:

         WHEREAS, the CROWN CRAFTS, INC. RESTRICTED STOCK PLAN (the "Plan") has
been adopted by the Company; and

         WHEREAS, Article II of the Plan authorizes the Committee to cause the
Company to enter into a written agreement with the Grantee setting forth the
form and the amount of any Award and any conditions and restrictions of the
award imposed by the Plan and the Committee; and

         WHEREAS, the Committee desires to make an award of Restricted Stock to
the Grantee;

         NOW, THEREFORE, in consideration of the mutual covenants contained
herein, and other good and valuable consideration, the receipt of which is
hereby acknowledged, the Company and the Grantee hereby agree as follows:

         1.       Terms of Award.

                  (a)      The number of shares of Restricted Stock awarded
         under this Restricted Stock Agreement shall be
         _____________________________ (________) shares. Shares of Restricted
         Stock are shares of Stock granted under this Restricted Stock Agreement
         and are subject to the terms of this Agreement and the Plan.

                  (b)      The "Restricted Period" is the period of time
         beginning on the Grant Date and ending on July 23, 2003.

         2.       General Definitions. Any capitalized terms herein shall have
the meaning set forth in the Plan, and, in addition, for purposes of this
Restricted Stock Agreement, each of the following terms, when used herein, shall
have the meaning set forth below:

                  (a)      Cause. For purposes of this Agreement, a termination
         of employment is for "Cause" if the Grantee has been convicted of a
         felony or if the termination is evidenced by a resolution adopted in
         good faith by two-thirds (2/3) of the Board that the Grantee (i)
         intentionally and continually failed substantially to perform his or
         her reasonably assigned duties with the Company (other than a failure
         resulting from the Grantee's incapacity due to physical or mental
         illness or from the Grantee's assignment of duties that would
         constitute Good Reason) which failure continued for a period of at
         least thirty (30) days after a written

<PAGE>   2

         notice of demand for substantial performance has been delivered to the
         Grantee specifying the manner in which the Grantee has failed
         substantially to perform, or (ii) intentionally engaged in illegal
         conduct or gross misconduct which results in material economic harm to
         the Company; provided, however, that no termination of the Grantee's
         employment shall be for Cause as set forth in clause (ii) above until
         (x) there shall have been delivered to the Grantee a copy of a written
         notice setting forth that the Grantee was guilty of the conduct set
         forth in clause (ii) and specifying the particulars thereof in detail,
         and (y) the Grantee shall have been provided an opportunity to be heard
         in person by the Board (with the assistance of the Grantee's counsel if
         the Grantee so desires). No act, nor failure to act, on the Grantee's
         part, shall be considered "intentional" unless the Grantee has acted,
         or failed to act, with a lack of good faith and with a lack of
         reasonable belief that the Grantee's action or failure to act was in
         the best interests of the Company. Any act, or failure to act, based
         upon authority given pursuant to a resolution duly adopted by the Board
         or upon the instructions of any senior officer of the Company who is
         senior to Grantee, or based upon the advice of counsel for the Company,
         shall be conclusively presumed to be done, or omitted to be done, by
         the Grantee in good faith and in the best interests of the Company. Any
         termination of the Grantee's employment by the Company hereunder shall
         be deemed to be a termination other than for Cause unless it meets all
         requirements of this Section 2(a).

                  (b)      Change in Control. For purposes of this Agreement, a
         "Change in Control" shall mean any of the following:

                           (i)      An acquisition (other than directly from the
                  Company) of any voting securities of the Company (the "Voting
                  Securities") by any "Person" (as the term person is used for
                  purposes of Section 13(d) or 14(d) of the Securities Exchange
                  Act of 1934, as amended (the "Exchange Act")), immediately
                  after which such Person has "Beneficial Ownership" (within the
                  meaning of Rule 13d-3 promulgated under the Exchange Act) of
                  twenty percent (20%) or more of the combined voting power of
                  the Company's then outstanding Voting Securities; provided,
                  however, in determining whether a Change in Control has
                  occurred, (1) Voting Securities which are acquired in a
                  "Non-Control Acquisition" (as hereinafter defined) and (2)
                  shares acquired by Bank of America, N.A., The Prudential
                  Insurance Company of America and Wachovia Bank, N.A. pursuant
                  to that certain Subordinated Note and Warrant Purchase
                  Agreement dated as of July 23, 2001 shall not constitute an
                  acquisition which would cause a Change in Control. A
                  "Non-Control Acquisition" shall mean an acquisition by (A) an
                  employee benefit plan (or a trust forming a part thereof)
                  maintained by (x) the Company or (y) any corporation or other
                  Person of which a majority of its voting power or its voting
                  equity securities or equity interest is owned, directly or
                  indirectly, by the Company (for purposes of this definition, a
                  "Subsidiary"), (B) the Company or its subsidiaries, or (C) any
                  Person in connection with a "Non-Control Transaction" (as
                  hereinafter defined);

                           (ii)     The eight (8) individuals who are appointed
                  or elected to the Board as set forth in the Section 3.13 of
                  the Merger Agreement by and between Design Works Holding
                  Company, Design Works Inc., Crown Crafts Designers, Inc. and

                                       2
<PAGE>   3

                  Crown Crafts, Inc. (the "Incumbent Board"), cease for any
                  reason to constitute at least a majority of the members of the
                  Board; provided, however, that if the election, or nomination
                  for election by the Company's common shareholders, of any new
                  director was approved by a vote of at least a majority of the
                  Incumbent Board, such new director shall, for purposes of this
                  Agreement, be considered as a member of the Incumbent Board;
                  provided further, however, that no individual shall be
                  considered a member of the Incumbent Board if such individual
                  initially assumed office as a result of either an actual or
                  threatened "Election Contest" (as described in Rule 14a-11
                  promulgated under the Exchange Act) or other actual or
                  threatened solicitation of proxies or consents by or on behalf
                  of a Person other than the Board (a "Proxy Contest"),
                  including by reason of any agreement intended to avoid or
                  settle any Election Contest or Proxy Contest; or

                           (iii)    Approval by shareholders of the Company of:

                                    (A)      A merger, consolidation or
                           reorganization involving the Company, unless such
                           merger, consolidation or reorganization is a
                           "Non-Control Transaction." A "Non-Control
                           Transaction" shall mean a merger, consolidation or
                           reorganization of the Company where:

                                             (x)      the shareholders of the
                                    Company, immediately before such merger,
                                    consolidation or reorganization, own
                                    indirectly or indirectly immediately
                                    following such merger, consolidation or
                                    reorganization, at least a majority of the
                                    combined voting power of the outstanding
                                    voting securities of the corporation
                                    resulting from such merger, consolidation or
                                    reorganization (the "Surviving Corporation")
                                    in substantially the same proportion as
                                    their ownership of the Voting Securities
                                    immediately before such merger,
                                    consolidation or reorganization,

                                             (y)      the individuals who were
                                    members of the Incumbent Board immediately
                                    prior to the execution of the agreement
                                    providing for such merger, consolidation or
                                    reorganization constitute at least a
                                    majority of the members of the board of
                                    directors of the Surviving Corporation, or a
                                    corporation beneficially directly or
                                    indirectly owning a majority of the Voting
                                    Securities of the Surviving Corporation, and

                                            (z)       no Person other than (i)
                                    the Company, (ii) any subsidiary of the
                                    Company, (iii) any employee benefit plan (or
                                    any trust forming a part thereof) maintained
                                    by the Company, the Surviving Corporation or
                                    any subsidiary of the Company, or (iv) any
                                    Person who, immediately prior to such
                                    merger, consolidation or reorganization, had
                                    Beneficial Ownership of twenty percent (20%)
                                    or more of the then outstanding Voting
                                    Securities), has Beneficial

                                       3
<PAGE>   4

                                    Ownership of twenty percent (20%) or more of
                                    the combined voting power of the Surviving
                                    Corporation's then outstanding voting
                                    securities;

                           (B)      A complete liquidation or dissolution of the
                  Company; or

                           (C)      An agreement for the sale or other
                  disposition of all or substantially all of the assets of the
                  Company to any Person (other than a transfer to a subsidiary
                  of the Company).

                  Notwithstanding the foregoing, a Change in Control shall not
         be deemed to occur solely because any Person (the "Subject Person")
         acquired Beneficial Ownership of more than the permitted amount of the
         then outstanding Voting Securities as a result of the acquisition of
         Voting Securities by the Company which, by reducing the number of
         Voting Securities then outstanding, increases the proportional number
         of shares Beneficially Owned by the Subject Person, provided that if a
         Change in Control would occur (but for the operation of this sentence)
         as a result of the acquisition of Voting Securities by the Company, and
         after such share acquisition by the Company, the Subject Person becomes
         the Beneficial Owner of any additional Voting Securities which
         increases the percentage of the then outstanding Voting Securities
         Beneficially Owned by the Subject Person, then a Change in Control
         shall occur.

                  (c)      Code shall mean the Internal Revenue Code of 1986, as
         amended.

                  (d)      Good Reason. For purposes of this Agreement, "Good
         Reason" shall mean a good faith determination by the Grantee, in the
         Grantee's sole and absolute judgment, that any one or more of the
         following events or conditions has occurred, without the Grantee's
         express written consent:

                           (i)      The assignment to the Grantee of any duties
                  inconsistent with the Grantee's position (including, without
                  limitation, status, titles and reporting requirements),
                  authority, duties or responsibilities, or any other action by
                  the Company that results in a material diminution in such
                  position, authority, duties or responsibilities, excluding for
                  this purpose isolated and inadvertent action not taken in bad
                  faith and remedied by the Company promptly after receipt of
                  notice thereof given by the Grantee;

                           (ii)     A material reduction by the Company of the
                  Grantee's base salary as the same may be increased from time
                  to time, or a change in the eligibility requirements or
                  performance criteria under any bonus, incentive or
                  compensation plan, program or arrangement under which the
                  Grantee is covered which adversely affects the Grantee;

                           (iii) any failure to pay the Grantee any compensation
                  or benefits to which he or she is entitled within five (5)
                  days of the date due;

                                       4
<PAGE>   5
                           (iv) a failure to increase the Grantee's base salary
                  at least annually at a percentage of base salary no less than
                  the average percentage increases (other than increases
                  resulting solely from the Grantee's promotion) granted to the
                  Grantee during the three (3) prior full fiscal years (or such
                  less number of full fiscal years during which the Grantee was
                  employed);

                           (v) the Company's requiring the Grantee to be based
                  anywhere other than within fifty (50) miles of the Grantee's
                  job location, except for reasonably required travel on the
                  Company's business which is not materially increased;
                  provided, however, this provision does not apply if Grantee is
                  the Chief Executive Officer of the Company;

                           (vi) without replacement by a plan providing benefits
                  to the Grantee substantially equivalent to or greater than
                  those discontinued, the failure by the Company to continue in
                  effect, within its maximum stated term, any pension, bonus,
                  incentive, stock ownership, purchase, option, life insurance,
                  health, accident disability, or any other employee benefit
                  plan, program or arrangement, in which the Grantee
                  participates, or the taking of any action by the Company that
                  would adversely affect the Grantee's participation or
                  materially reduce the Grantee's benefits under any of such
                  plans;

                           (vii) the taking of any action by the Company that
                  would materially adversely affect the physical conditions in
                  or under which the Grantee performs his employment duties,
                  provided that the Company may take action with respect to such
                  conditions so long as such conditions are at least
                  commensurate with the conditions in or under which an officer
                  of the Grantee's status would customarily perform his
                  employment duties;

                           (viii)   the insolvency or the filing (by any party,
                  including the Company) of a petition for bankruptcy by the
                  Company;

                           (ix)     any purported termination of the Grantee's
                  employment for Cause by the Company which does not comply with
                  the terms of Section 2(a) hereof; or

                           (x)      any breach by the Company of any material
                  provision of the Grantee's Employment Agreement with the
                  Company, if any.

                  The Grantee's right to terminate his employment pursuant to
         this Section 2(d) shall not be affected by his incapacity due to
         physical or mental illness.

                  (e)      "Total Disability" means a disability of Grantee
         resulting in a complete inability to engage in the Grantee's regular
         occupation by reason of any physical or mental impairment that can be
         expected to result in death or that has lasted or can be expected to
         last for a continuous period of not less than twelve (12) months, all
         as determined by a

                                       5
<PAGE>   6

         licensed physician acceptable to the Committee and evidenced by a
         certificate to the Company; provided, however, Grantee shall have the
         right to obtain a second opinion from a licensed physician. If such
         second opinion differs from that of the physician selected by the
         Committee, a third licensed physician acceptable to both the Committee
         and the Grantee shall be consulted to render an opinion, which third
         opinion shall be final and binding on all parties hereto.

         3.       Grant of Award. Upon the terms and subject to the conditions
and limitations hereinafter set forth, the Grantee is hereby granted the number
of shares of Restricted Stock set forth in Section 1.

         4.       Dividends and Voting Rights. The Grantee shall be entitled to
receive any dividends paid with respect to shares of Restricted Stock that
become payable during the Restricted Period; provided, however, that no
dividends shall be payable to or for the benefit of the Grantee with respect to
record dates occurring prior to the Grant Date, or with respect to record dates
occurring on or after the date, if any, on which the Grantee has forfeited the
Restricted Stock. The Grantee shall be entitled to vote the shares of Restricted
Stock during the Restricted Period to the same extent as would have been
applicable to the Grantee if the Grantee was then vested in the shares;
provided, however, that the Grantee shall not be entitled to vote the shares
with respect to record dates for such voting rights arising prior to the Grant
Date, or with respect to record dates occurring on or after the date, if any, on
which the Grantee has forfeited the Restricted Stock.

         5.       Deposit of Shares of Restricted Stock. Each certificate issued
in respect of shares of Restricted Stock granted under this Agreement shall be
registered in the name of the Grantee and shall be deposited in a bank
designated by the Committee. The grant of Restricted Stock is conditioned upon
the Grantee endorsing in blank a stock power for the Restricted Stock.

         6.       Transfer and Forfeiture of Shares. If the Grantee's
termination of employment does not occur during the Restricted Period, then, at
the end of the Restricted Period, the Grantee shall become vested in the shares
of Restricted Stock, and shall own the shares free of all restrictions otherwise
imposed by this Agreement. The Grantee shall become vested in the shares of
Restricted Stock, and become owner of the shares free of all restrictions
otherwise imposed by this Agreement, prior to the end of the Restricted Period,
as follows:

                  (a)      The Grantee shall become fully vested in the shares
         of Restricted Stock upon the Company's termination of Grantee's
         employment other than for Cause,

                  (b)      The Grantee shall become fully vested in the shares
         of Restricted Stock upon the Grantee's termination of employment with
         the Company for Good Reason;

                  (c)      The Grantee shall become fully vested in the shares
         of Restricted Stock upon the Grantee's termination of employment with
         the Company because of the Grantee's death or Total Disability;

                                       6
<PAGE>   7

                  (d)      The Grantee shall become fully vested in the shares
         of Restricted Stock upon the date of a Change in Control of the
         Company, if the Grantee does not terminate employment with the Company
         on or before the Change in Control.

Shares of Restricted Stock may not be sold, assigned, transferred, pledged or
otherwise encumbered until the expiration of the Restricted Period or, if
earlier, until the Grantee is vested in the shares. Except as otherwise provided
in this paragraph 6, if the Grantee's termination of employment occurs prior to
the end of the Restricted Period, the Participant shall forfeit the Restricted
Stock as of the Grantee's termination of employment.

         7.       Taxes and Withholding. Notwithstanding the foregoing, no
shares of Stock will be issued unless the Grantee (or his or her representative
as the case may be) satisfies the applicable withholding obligations. The
Committee, in its sole discretion, and subject to such requirements as the
Committee may impose prior to the occurrence of such withholding, may permit
such withholding obligations to be satisfied through cash payment by the
Grantee, through the surrender of shares of Stock which the Grantee already
owns, or through the surrender of shares of Stock to which the Grantee is
otherwise entitled under the Plan.

         In the event Grantee elects income tax treatment for this Award under
Section 83(b) of the Code, the Company shall loan Grantee the amount of such
additional income tax incurred by Grantee, with no interest, to be repaid over a
three (3) year time period, or such shorter time period as mutually agreeable to
the Company and Grantee, through biweekly payroll deductions. In connection with
such loan, Grantee shall execute any such notes or loan documents as required by
the Company in its discretion.

         8.       Holder's Exercise Subject to Compliance with Securities Laws.
Notwithstanding the grant of this Award, in whole or in part, in accordance with
all other provisions of this Award, the Company shall have no obligation to
issue Stock pursuant thereto unless and until the Grantee furnishes the Company
an agreement (in such form as the Committee may specify) in which the Grantee
(or any person acting on his behalf) represents that the Stock acquired by him
is being acquired for investment and not with a view to the sale or distribution
thereof, or such other representations as may be required by the Committee in
accordance with the advice of legal counsel, unless the Committee shall have
received advice from legal counsel that such representation is not required.

         9.       Heirs and Successors. This Agreement shall be binding on, and
inure to the benefit of, the Company and its successors and assigns, and upon
any person acquiring, whether by merger, consolidation, purchase of assets or
otherwise, all or substantially all of the Company's assets and business. If any
rights of the Grantee or benefits distributable to the Grantee under this
Agreement have not been exercised or distributed, respectively, at the time of
the Grantee's death, such rights shall be exercisable by the Designated
Beneficiary, and such benefits shall be distributed to the Designated
Beneficiary, in accordance with the provisions of this Agreement and the Plan.
The "Designated Beneficiary" shall be the beneficiary(ies) designated by the
Grantee in a writing filed with the Committee in such form and at such time as
the Committee shall require. If a deceased Grantee fails to designate a
beneficiary, or if the Designated Beneficiary does not survive the

                                       7
<PAGE>   8

Grantee, any rights that would have been exercisable by the Grantee and any
benefits distributable to the Grantee shall be exercised by or distributed to
the legal representative of the estate of the Grantee. If a deceased Grantee
designates a beneficiary but the Designated Beneficiary dies before the
Designated Beneficiary's exercise of all rights under this Agreement or before
the complete distribution of benefits to the Designated Beneficiary under this
Agreement, then any rights that would have been exercisable by the Designated
Beneficiary shall be exercised by the legal representative of the estate of the
Designated Beneficiary, and any benefits distributable to the Designated
Beneficiary shall be distributed to the legal representative of the estate of
the Designated Beneficiary.

         10.      No Right to Continued Employment. This Award does not confer
upon the Grantee the right to continued employment with the Company or any
affiliate, nor shall it interfere with the right of the Company or any affiliate
to terminate his or her employment at any time.

         11.      Miscellaneous.

                  (a)      This Award has been issued pursuant to the Plan and
         shall be subject to, and governed by, the terms and provisions thereof.
         The Grantee hereby agrees to be bound by all the terms and provisions
         of the Plan. In the event of any conflict between the terms of the Plan
         and this Agreement, the provisions of the Plan shall govern.

                  (b)      This Agreement shall be governed by the laws of the
         State of Georgia.

                  (c)      This Agreement may be amended by written Agreement of
         the Grantee and the Company, without the consent of any other person.

         IN WITNESS WHEREOF, the Company and the Grantee have executed this
Restricted Stock Agreement as of the day and year first above written.

                                    CROWN CRAFTS, INC.

                                    By:
                                       -----------------------------------------
                                    Its:
                                        ----------------------------------------

                                    GRANTEE:

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

                                       8

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