Document:

TAX SHARING AGREEMENT

                           dated as of ________, 2000

                                      among

                         DELTA WOODSIDE INDUSTRIES, INC.

                               DELTA APPAREL, INC.

                                       and

                         DUCK HEAD APPAREL COMPANY, INC.

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<PAGE>

                              TAX SHARING AGREEMENT

     TAX  SHARING  AGREEMENT  dated as of  _______,  2000 among  DELTA  WOODSIDE
INDUSTRIES,  INC., a South Carolina  corporation  (together with its successors,
"Delta Woodside"), DELTA APPAREL, INC., a Georgia corporation (together with its
successors,  "Delta  Apparel"),  and DUCK HEAD APPAREL COMPANY,  INC., a Georgia
corporation (together with its successors, "Duck Head").

                                    RECITALS

     WHEREAS, pursuant to the Tax laws of various jurisdictions, certain members
of the Delta Woodside Tax Group,  certain members of the Delta Apparel Tax Group
and certain members of the Duck Head Tax Group, as defined below,  have filed or
will file certain Tax returns on an affiliated,  consolidated, combined, unitary
or other group basis  (including  as  permitted  by Section 1501 of the Internal
Revenue Code of 1986, as amended (the "Code")) (each such group, a "Consolidated
Group");

     WHEREAS, the Board of Directors of Delta Woodside has determined that it is
in the best interests of Delta Woodside and its  stockholders  to distribute all
of the  outstanding  shares of the common stock of Delta  Apparel and all of the
outstanding shares of the common stock of Duck Head to the holders of the common
stock  of  Delta  Woodside  on  a  pro  rata  basis  (the  "Distribution");  and

     WHEREAS,  the  parties  have set forth in this  Agreement  the  rights  and
obligations  of Delta  Woodside and the other members of the Delta  Woodside Tax
Group,  Delta Apparel and the other members of the Delta Apparel Tax Group,  and
Duck Head and the other  members of the Duck Head Tax Group with  respect to the
handling  and  allocation  of  certain  federal,  state,  local and other  Taxes
incurred  in Taxable  periods  beginning  prior to the  Distribution  Date,  and
various other Tax matters;

     NOW, THEREFORE, the parties hereto agree as follows:

                                    ARTICLE 1

                                   DEFINITIONS

     SECTION 1.01. Definitions.
                   -----------

     (a) As used herein, the following terms have the following meanings:

     "Business  Day"  means any day other  than a  Saturday,  a Sunday or one on
which banks are  authorized  or required  by law to close in  Greenville,  South
Carolina.

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<PAGE>

     "Delta Apparel Tax Group" means, at any time,  Delta Apparel and any direct
or  indirect  corporate  subsidiaries  (including  predecessors  and  successors
thereto) of Delta Apparel that would be eligible,  assuming,  where  applicable,
that Delta  Apparel is not a member of a group that includes  Delta  Woodside or
Duck Head, to join with Delta Apparel, (i) with respect to Federal Taxes, in the
filing of a consolidated  Federal Tax return,  (ii) with respect to State Taxes,
in the filing of an  affiliated,  consolidated,  combined  or unitary  State Tax
return or (iii) with respect to other Taxes, in the filing of a Tax return as an
affiliated, consolidated, combined or unitary group.

     "Delta  Woodside  Consolidated  Group" means Delta Woodside and each direct
and  indirect  corporate  subsidiary  (including   predecessors  and  successors
thereto)  that is  eligible  to join with  Delta  Woodside  (i) with  respect to
Federal  Taxes,  in the filing of a consolidated  Federal Tax return,  (ii) with
respect to State Taxes, in the filing of an affiliated,  consolidated,  combined
or unitary State Tax return, or (iii) with respect to other Taxes, in the filing
of a Tax return as an affiliated, consolidated, combined or unitary group.

     "Delta  Woodside  Tax Group"  means,  at any time,  Delta  Woodside and any
direct or indirect corporate subsidiaries (including predecessors and successors
thereto) of Delta Woodside that would be eligible,  assuming,  where  applicable
that Delta  Woodside is not a member of a group that  includes  Delta Apparel or
Duck Head, to join with Delta  Woodside,  (i) with respect to Federal Taxes,  in
the filing of a  consolidated  Federal  Tax return,  (ii) with  respect to State
Taxes, in the filing of an affiliated,  consolidated,  combined or unitary State
Tax return or (iii) with respect to other  Taxes,  in the filing of a Tax return
as  an  affiliated,  consolidated,  combined  or  unitary  group.

     "Designated  Delta Apparel  Affiliate" means Delta Apparel or the member of
the Delta Apparel Tax Group that has been designated as such by Delta Apparel.

     "Designated  Duck Head Affiliate" means Duck Head or the member of the Duck
Head Tax Group that has been designated as such by Duck Head.

     "Distribution Agreement" means the Distribution Agreement dated as of March
15, 2000 among Delta Woodside, Delta Apparel and Duck Head.

     "Distribution  Date" means the Business Day on which the Distribution shall
be effected.

     "Duck  Head Tax  Group"  means,  at any time,  Duck Head and any  direct or
indirect corporate subsidiaries  (including predecessors and successors thereto)
of Duck Head that would be eligible,  assuming, where applicable, that Duck Head
is not a member of a group that includes  Delta  Woodside or Delta  Apparel,  to
join with Duck  Head,  (i) with  respect to  Federal  Taxes,  in the filing of a
consolidated Federal Tax return, (ii) with respect to State Taxes, in the filing
of an

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<PAGE>

affiliated,  consolidated,  combined  or unitary  State Tax return or (iii) with
respect  to  other  Taxes,  in the  filing  of a Tax  return  as an  affiliated,
consolidated, combined or unitary group.

     "Effective Realization" (and the correlative terms,  "Effectively Realized"
and "Effectively  Realizes") means, with respect to a tax saving, tax benefit or
tax attribute, the earliest to occur of (i) the receipt by a member of the Delta
Woodside Tax Group,  a member of the Delta  Apparel Tax Group or a member of the
Duck Head Tax Group of cash from a Taxing Authority  reflecting such tax saving,
tax benefit or tax  attribute,  (ii) the  application  of such tax  saving,  tax
benefit or tax  attribute to reduce (A) the Tax  liability on a Return of any of
such corporations or of any affiliated,  consolidated, combined or unitary group
of which any of such  corporations is a member, or (B) any other outstanding Tax
liability  of any of  such  corporations  or of  such  group,  or  (iii) a Final
Determination of the entitlement of any of such corporations or of such group to
such tax saving, tax benefit or tax attribute.

     "Federal Employment Tax" means the Federal Insurance Contributions Act, the
Federal  Unemployment  Tax Act and any other  federal  tax that  applies or that
shall apply to a  corporation  in  connection  with the payment or  provision of
salaries, or the provision of benefits and other remuneration, to employees.

     "Federal Tax" means any tax imposed under Subtitle A of the Code.

     "Final  Determination"  means (i) with  respect  to  Federal  Taxes,  (A) a
"determination" as defined in Section 1313(a) of the Code, or (B) the acceptance
by or on behalf of the IRS of Form 870-AD (or any  successor  form thereto) as a
final resolution of Tax liability for any Taxable period,  except as to items in
respect  of which the right of the  taxpayer  to file a claim for  refund or the
right of the IRS to assert a further  deficiency  has been  reserved;  (ii) with
respect to Taxes other than Federal Taxes, any final  determination of liability
in  respect  of a Tax that,  under  applicable  law,  is not  subject to further
appeal, review or modification, through Tax Proceedings or otherwise (including,
without  limitation,  the expiration of a statute of limitations or a period for
the filing of claims for  refunds,  amended  returns  or  appeals  from  adverse
determinations);  or (iii)  the  payment  of Tax by the  corporation  among  the
members of the Delta  Woodside Tax Group,  the members of the Delta  Apparel Tax
Group and the members of the Duck Head Tax Group that is responsible for payment
of such  Tax  under  applicable  law  with  respect  to any  item  that has been
disallowed  or adjusted by a Taxing  Authority  and as to which Delta  Woodside,
Delta  Apparel or Duck Head (as  applicable)  has made a  determination  that no
recoupment shall be sought.

     "Fiscal 2000 Pre-Distribution Period" means the taxable period from July 4,
1999 through the Distribution Date.

     "Grossed Up Tax Amount" means an additional amount (taking into account any
taxation of such additional  amount)  necessary to reflect the  hypothetical Tax
consequences  of the  receipt or accrual of any  payment,  using the highest Tax
rate (or rates, in the case of an item that affects

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<PAGE>

more than one Tax)  applicable to the recipient of such payment for the relevant
Taxable period,  reflecting for example,  the effect of any deductions available
for interest paid or accrued and for appropriate Taxes such as State Taxes.

     "Intercompany  Interest  Rate" means the rate,  from time to time,  that is
equal to the London  Interbank  Offered  Rate for dollar  deposits,  plus 2% per
annum.

     "Intercompany  Reorganization" shall have the meaning ascribed to that term
in the Distribution Agreement.

     "IRS" means the Internal Revenue Service.

     "Post-Distribution  Period" means any taxable  period (or portion  thereof)
beginning after the close of business on the Distribution Date.

     "Pre-Distribution  Period"  means any taxable  period (or portion  thereof)
ending on or before the close of business on the Distribution Date.

     "Return"  means  any  Tax  return,  statement,  report,  form  or  election
(including,  without  limitation,  estimated Tax returns and reports,  extension
requests and forms,  and information  returns and reports)  required to be filed
with any Taxing Authority, in each case as amended and as finally adjusted.

     "State Taxes" mean any income,  franchise or similar tax payable to a state
or local taxing jurisdiction of the United States.

     "Tax" (and the correlative  term,  "Taxable") means (i) any Federal Tax, or
any net income,  alternative or add-on  minimum,  gross income,  gross receipts,
sales, use, ad valorem,  value added,  transfer,  franchise,  profits,  license,
withholding (as payor or recipient),  payroll,  employment,  excise,  severance,
stamp, capital stock, occupation,  property, real property gains, environmental,
windfall,  premium,  custom,  duty or other tax,  governmental fee or other like
assessment or charge of any kind whatsoever,  together with any interest thereon
and  any  penalty,  addition  to tax or  additional  amount  thereto;  (ii)  any
liability of a corporation  for the payment of any amounts of the type described
in clause (i) for any taxable period resulting from such  corporation's  being a
part of a Consolidated Group pursuant to the application of Treasury Regulations
Section 1.1502-6 (or a successor  thereto) or any similar  provision  applicable
under state, local or foreign law; or (iii) any liability for the payment of any
amounts described in clause (i) as a result of any express or implied obligation
to indemnify any other person.

     "Tax Asset" means any net operating loss, net capital loss,  investment tax
credit,  foreign tax credit,  charitable  deduction,  or any other loss, credit,
deduction  or tax  attribute  that  could  reduce  any tax  (including,  without
limitation,   deductions,   credits,  alternative  minimum  net  operating  loss
carryforwards related to alternative minimum taxes or additions to the basis  of
property).
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<PAGE>

     "Tax Packages", with respect to a corporation, mean one or more packages of
information, relating to such corporation, that are reasonably necessary for the
purpose of preparing  the Return of any  Consolidated  Group that  includes such
corporation.

     "Tax  Proceeding"  means any Tax  audit,  dispute  or  proceeding  (whether
administrative or judicial). Without limiting the generality of the foregoing, a
reference to a Tax  Proceeding  relating to any taxable year shall include a Tax
Proceeding  relating to multiple  taxable  years that include such taxable year,
notwithstanding  that other  included  taxable  years may be Post-  Distribution
Periods.

     "Taxing Authority" means any governmental  authority (whether United States
or  non-  United  States,  and  including,   without   limitation,   any  state,
municipality,  political subdivision or governmental agency) responsible for the
imposition of any Tax.

     (b) Each of the  following  terms is defined  in the  Section or portion of
this Agreement set forth opposite such term:

         Term                                                 Section
         Code                                                 Recitals
         Consolidated Group                                   Recitals
         Delta Apparel                                        Recitals
         Delta Woodside                                       Recitals
         Distribution                                         Recitals
         Duck Head                                            Recitals
         Indemnitee                                           7.04
         Indemnitor                                           7.04
         Tax Benefit                                          7.07

     (c) Each of the  following  terms has the  definition  for that term in the
Distribution  Agreement:  "Delta  Apparel  Business",  "Delta  Apparel  Employee
Group",  "Delta Woodside Business",  "Delta Woodside Employee Group", "Duck Head
Business" and "Duck Head Employee Group".

     (d) Any term used in this  Agreement  that is not defined in this Agreement
shall, to the extent the context  requires,  have the meaning  assigned to it in
the Code or in comparable provisions of applicable Tax law.

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<PAGE>

                                    ARTICLE 2

                      ADMINISTRATIVE AND COMPLIANCE MATTERS

     SECTION 2.01. Sole Tax Sharing Agreement.
                   --------------------------

     (a) Except for Sections 14.4(b) and 15.12 of the Distribution Agreement and
except for any agreement  described in paragraph (b) below, any and all existing
Tax sharing agreements or arrangements,  written or unwritten, among two or more
of any member of the Delta  Woodside Tax Group,  any member of the Delta Apparel
Tax Group and any member of the Duck Head Tax Group  shall be or shall have been
terminated as of the Distribution Date. On and after the Distribution Date, none
of the members of the Delta Woodside Tax Group, the members of the Delta Apparel
Tax Group and the  members  of the Duck Head Tax Group  shall have any rights or
liabilities  (including,  without  limitation,  any rights and liabilities  that
accrued prior to the  Distribution  Date) under such  terminated  agreements and
arrangements.

     (b) This Agreement  shall not address the obligations or  arrangements,  if
any,  solely (i) among  members  of the Delta  Woodside  Tax  Group,  (ii) among
members of the Delta Apparel Tax Group,  or (iii) among members of the Duck Head
Tax Group. Without limiting the generality of the foregoing, that certain Income
Tax Sharing Agreement, dated as of August 1, 1997, by and between Delta Woodside
and Delta  Mills,  Inc.  remains in full force and effect  notwithstanding  this
Agreement.

     SECTION 2.02. Designation of Agent.
                   --------------------

     (a) Each member of the Delta  Apparel Tax Group and each member of the Duck
Head Tax Group hereby  irrevocably  authorizes and designates  Delta Woodside as
its agent, attorney- in-fact,  coordinator and administrator for the purposes of
taking any and all  actions  with  respect  to Taxes for which such  member is a
member of the Delta Woodside  Consolidated  Group in connection with any taxable
period  that  includes  a  Pre-Distribution   Period.  In  connection  with  any
Pre-Distribution Period, Delta Woodside shall have the same authority under this
Section 2.02(a),  with respect to the Taxes described in the preceding sentence,
to act on behalf of each  member of the Delta  Apparel Tax Group and each member
of the Duck Head Tax Group as would such member,  were such member acting on its
own behalf, and as would the parent of the Consolidated Group that includes such
member,  were  such  parent  acting on behalf  of such  member.  Delta  Woodside
covenants  to the Delta  Apparel  Tax Group and the Duck Head Tax Group  that it
shall be responsible to see that matters handled pursuant to its exercise of its
authority  under this  Section  2.02(a)  shall be handled  promptly  and, to the
knowledge of Delta Woodside, appropriately.

     (b) Without  limiting the  generality of Section  2.02(a),  Delta  Woodside
shall  have the  authority,  with  respect  to the  Taxes  and  taxable  periods
described in Section 2.02(a), to take any and all actions necessary,  helpful or
incidental to, or otherwise in connection with, (i) the

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preparation  or filing of any Return or claim for refund  (even where an item or
Tax Asset  giving  rise to an  amended  Return or claim for  refund  arises in a
Post-Distribution Period), (ii) the conduct, management,  prosecution,  defense,
contest,  compromise or settlement of (A) any adjustment or deficiency proposed,
asserted or  assessed  as a result of any audit of any Return,  or (B) any other
Tax  Proceeding,  (iii) the  determination  of the taxable  periods  (including,
without  limitation,  taxable periods that include a  Post-Distribution  Period)
that  a   settlement   of  a  Tax   Proceeding   may  impact  and  other  timing
considerations,  (iv) the  determination  as to  whether  any  refunds  shall be
received  by  way  of  refund  or  credited  against  tax  liability,   (v)  the
determination  as to  the  treatment  of  Tax  Assets  that  are  allowed  under
applicable law to be carried back or carried forward,  (vi) the determination as
to whether any, and what, Tax elections shall be made,  (vii) the  determination
as to whether any, and what,  extensions shall be requested,  (viii) the receipt
of confidential  information  from, or the provision of such information to, any
Taxing Authority, (ix) the making of payments to, or collection of refunds from,
any Taxing  Authority,  and (x) the  performance of any and all actions that are
described to be undertaken by Delta  Woodside  under this  Agreement or that are
necessary, helpful or incidental to the implementation of the provisions of this
Agreement.

     (c)  Notwithstanding  anything  in  Section  10.07 to the  contrary,  Delta
Woodside may, in its sole and absolute discretion, delegate at any time all or a
portion of its  authority,  rights or  obligations  under this  Agreement to any
corporation(s)  or any  person(s).  Such  delegation  may be  revoked  by  Delta
Woodside in its sole and absolute discretion.

     SECTION 2.03. Preparation of Returns.
                   ----------------------

     (a) Delta Woodside shall prepare and file the Returns  (including,  without
limitation,  the consolidated  Federal Tax Returns and State Tax Returns) of the
Delta  Woodside  Consolidated  Group  for all  taxable  periods  that  include a
Pre-Distribution  Period with the assistance of the members of the Delta Apparel
Tax Group and the members of the Duck Head Tax Group. In preparing such Returns,
Delta  Woodside shall not  discriminate  among the members of the Delta Woodside
Consolidated  Group.  Without  limiting the  generality of Section  2.02,  Delta
Woodside  shall have the right to  determine  the  manner in which such  Returns
shall be prepared and filed, including,  without limitation, the manner in which
any item of income, gain, loss, deduction or credit shall  be  reported thereon.

     (b) The Returns of the Delta  Woodside  Consolidated  Group for the taxable
year ended July 1, 2000 shall  reflect the inclusion of the members of the Delta
Apparel Tax Group and the Duck Head Tax Group in the Delta Woodside Consolidated
Group for the Fiscal 2000 Pre- Distribution Period.

     SECTION 2.04. Procedure for Collection of Information.
                   ---------------------------------------

     (a) No more than 60 days after the Distribution  Date, the Designated Delta
Apparel  Affiliate shall prepare and deliver to Delta Woodside Tax Packages with
respect to the members

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of the Delta Apparel Tax Group for the Fiscal 2000  Pre-Distribution  Period and
the Designated  Duck Head Affiliate  shall prepare and deliver to Delta Woodside
Tax  Packages  with  respect  to the  members of the Duck Head Tax Group for the
Fiscal 2000 Pre-Distribution Period.

     (b) At the  request  of  the  Designated  Delta  Apparel  Affiliate  or the
Designated Duck Head Affiliate,  Delta Woodside shall forward thereto, within 60
days of such request or such  lengthier  period of time as Delta  Woodside shall
determine to be appropriate,  such information  regarding Federal Tax and credit
allocations as is necessary for the preparation of Tax Packages related to State
Taxes with respect to the members of the Delta  Apparel Tax Group or the members
of the Duck Head Tax Group, respectively.

     SECTION 2.05. Allocation.
                   ----------

     (a) With respect to any Pre-Distribution Period, Delta Woodside may, at its
option,  elect,  and the Delta  Apparel Tax Group shall join it in electing  (if
necessary),  to  ratably  allocate  items  of the  Delta  Apparel  Tax  Group in
accordance with relevant  provisions of Treasury  Regulations Section 1.1502-76.
If Delta Woodside exercises its option to make such election, the members of the
Delta Apparel Tax Group shall provide to Delta  Woodside such  statements as are
required under the regulations and other appropriate assistance.

     (b) With respect to any Pre-Distribution Period, Delta Woodside may, at its
option,  elect,  and the Duck  Head Tax  Group  shall  join it in  electing  (if
necessary),  to ratably  allocate items of the Duck Head Tax Group in accordance
with relevant  provisions of Treasury  Regulations  Section 1.1502-76.  If Delta
Woodside  exercises  its option to make such  election,  the members of the Duck
Head Tax Group shall provide to Delta  Woodside such  statements as are required
under the regulations and other appropriate assistance.

     SECTION 2.06. Certain Other Returns.
                   ---------------------

     (a) The members of the Delta Apparel Tax Group shall be solely  responsible
for the preparation and filing of (i) their respective  separate state and local
Returns, (ii) Returns filed on behalf of an affiliated,  consolidated,  combined
or unitary  group that  includes  neither any member of the Delta  Woodside  Tax
Group nor any  member  of the Duck Head Tax  Group,  and (iii)  Returns  for all
taxable periods that begin after the Distribution Date.

     (b) The members of the Duck Head Tax Group shall be solely  responsible for
the  preparation  and filing of (i) their  respective  separate  state and local
Returns, (ii) Returns filed on behalf of an affiliated,  consolidated,  combined
or unitary  group that  includes  neither any member of the Delta  Woodside  Tax
Group nor any member of the Delta  Apparel Tax Group,  and (iii) Returns for all
taxable  periods  that  begin  after  the  Distribution  Date.

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                                    ARTICLE 3

                                   TAX SHARING

     SECTION 3.01. Tax Sharing Principles With Respect to Federal Taxes for Each
                   -------------------------------------------------------------
Pre- Distribution Period.  With respect to Federal Taxes:
------------------------

     (a) For each taxable year during the  Pre-Distribution  Period prior to the
Fiscal 2000  Pre-Distribution  Period,  Delta Woodside shall be responsible  for
paying any  increase  in Federal  Taxes,  and shall be  entitled  to receive the
benefit of any refund of or saving in Federal  Taxes,  that results from any Tax
Proceeding  with respect to any Returns  relating to Federal  Taxes of the Delta
Woodside Consolidated Group.

     (b) For the Fiscal 2000  Pre-Distribution  Period,  Delta Woodside shall be
responsible for paying any Federal Taxes, and shall be entitled to any refund of
or saving in Federal  Taxes,  with  respect to the Delta  Woodside  Consolidated
Group.

     SECTION  3.02.  Tax Sharing  Principles  With Respect to State Taxes.  With
                     ----------------------------------------------------
respect to State Taxes,  for each  taxable  period  during the  Pre-Distribution
Period,  each  corporation that is a member of the Delta Woodside Tax Group, the
Delta  Apparel  Tax Group or the Duck Head Tax Group  shall be  responsible  for
paying any State Taxes,  and any increase in States Taxes, and shall be entitled
to receive the benefit of any refund of or saving in State  Taxes,  with respect
to that  corporation (or any predecessor by merger of that  corporation) or that
results from any Tax  Proceeding  with respect to any Returns  relating to State
Taxes of that corporation (or any predecessor by merger of that corporation).

     SECTION 3.03.  Tax Sharing  Principles  With Respect to Federal  Employment
                    ------------------------------------------------------------
Tax.
---

     (a) Delta Woodside shall be responsible  for the Federal  Employment  Taxes
payable with respect to the compensation  paid,  whether before, on or after the
Distribution  Date, by any member of the Delta Woodside  Consolidated  Group for
any Pre-Distribution Period or by any member of the Delta Woodside Tax Group for
any period after the Distribution Date to all individuals who are members of the
Delta Woodside Employee Group.

     (b) Delta Apparel shall be  responsible  for the Federal  Employment  Taxes
payable with respect to the compensation  paid,  whether before, on or after the
Distribution  Date, by any member of the Delta Woodside  Consolidated  Group for
any Pre-Distribution  Period or by any member of the Delta Apparel Tax Group for
any period after the Distribution Date to all individuals who are members of the
Delta Apparel Employee Group.

     (c) Duck Head shall be responsible for the Federal Employment Taxes payable
with  respect  to  the  compensation  paid,  whether  before,  on or  after  the
Distribution  Date, by any member of the Delta Woodside  Consolidated  Group for
any Pre-Distribution Period or by any

                                       10
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member of the Duck Head Tax Group for any period after the Distribution  Date to
all individuals who are members of the Duck Head Employee Group.

     SECTION  3.04.  Tax Sharing  Principles  With Respect to Other Taxes.  With
                     ----------------------------------------------------
respect to any Taxes,  other than Federal  Employment  Taxes,  Federal Taxes and
State Taxes:

     (a) Delta Woodside shall be responsible  for any such Taxes,  regardless of
the time period or  circumstance  with  respect to which such Taxes are payable,
arising from or attributable to the Delta Woodside Business;

     (b) Delta Apparel shall be  responsible  for any such Taxes,  regardless of
the time period or  circumstance  with  respect to which such Taxes are payable,
arising from or attributable to the Delta Apparel Business; and

     (c) Duck Head shall be  responsible  for any such Taxes,  regardless of the
time  period or  circumstance  with  respect to which  such  Taxes are  payable,
arising from or attributable to the Duck Head Business.

     SECTION 3.05. Post-Distribution Periods. The Delta Woodside Tax Group shall
                   -------------------------
be responsible for all Taxes, and shall receive the benefit of all Tax items, of
any member of the Delta Woodside Tax Group that relate to any  Post-Distribution
Period.  The Delta  Apparel Tax Group shall be  responsible  for all Taxes,  and
shall  receive the benefit of all Tax items,  of any member of the Delta Apparel
Tax Group that relate to any  Post-Distribution  Period. The Duck Head Tax Group
shall be  responsible  for all Taxes,  and shall  receive the benefit of all Tax
items,   of  any  member  of  the  Duck  Head  Tax  Group  that  relate  to  any
Post-Distribution Period.

                                    ARTICLE 4

                      CERTAIN REPRESENTATIONS AND COVENANTS

     SECTION  4.01.  Delta Apparel Tax Group  Covenants.  Delta Apparel and each
                     ----------------------------------
other member of the Delta Apparel Tax Group covenant to each member of the Delta
Woodside Tax Group and each member of the Duck Head Tax Group that,  on or after
the  Distribution  Date, Delta Apparel shall not, nor shall it permit any member
of the Delta Apparel Tax Group to, make or change any tax  election,  change any
accounting method,  amend any Return,  take any tax position on any Return, take
any action,  omit to take any action or enter into any transaction  that results
in an  increased  tax  liability  or  reduction  of any Tax  Asset of the  Delta
Woodside  Tax  Group  or of  the  Duck  Head  Tax  Group  with  respect  to  any
Pre-Distribution  Period.  The Delta  Apparel  Tax Group  agrees  that the Delta
Woodside Tax Group and the Duck Head Tax Group shall have no  liability  for any
Tax resulting from any action referred to in the

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<PAGE>

preceding  sentence and agrees to hold harmless the Delta Woodside Tax Group and
the Duck Head Tax Group from any such Tax.

     SECTION  4.02.  Duck Head Tax  Group  Covenants.  Duck Head and each  other
                     -------------------------------
member of the Duck Head Tax Group  covenant to each member of the Delta Woodside
Tax Group and each member of the Delta  Apparel Tax Group that,  on or after the
Distribution  Date,  Duck Head shall not,  nor shall it permit any member of the
Duck Head Tax Group to, make or change any tax election,  change any  accounting
method,  amend any Return, take any tax position on any Return, take any action,
omit to take  any  action  or enter  into any  transaction  that  results  in an
increased tax liability or reduction of any Tax Asset of the Delta  Woodside Tax
Group or of the Delta  Apparel  Tax Group with  respect to any  Pre-Distribution
Period. The Duck Head Tax Group agrees that the Delta Woodside Tax Group and the
Delta Apparel Tax Group shall have no liability  for any Tax resulting  from any
action  referred to in the  preceding  sentence and agrees to hold  harmless the
Delta Woodside Tax Group and the Delta Apparel Tax Group from any such Tax.

                                    ARTICLE 5

                                    PAYMENTS

     SECTION 5.01. Procedure for Making Payments.  All payments to be made under
                   -----------------------------
this Agreement shall be made in immediately available funds. Except as otherwise
provided,  all payments required to be made under this Agreement shall be due 30
days  after  the  receipt  of  notice  of such  payment  or,  where no notice is
required,  30 days after (i) the fixing of a Tax  liability,  (ii) the Effective
Realization of a tax saving, tax benefit or tax attribute,  (iii) the receipt of
a refund, or (iv) the resolution of a dispute.  Unless otherwise indicated,  any
payment  that is not made  when due  shall  bear  interest  at the  Intercompany
Interest Rate.  If,  pursuant to a Final  Determination,  any amount paid by any
member of the Delta  Woodside  Tax Group,  any member of the Delta  Apparel  Tax
Group or any member of the Duck Head Tax Group under this  Agreement  results in
any  increased  Tax  liability or reduction of any Tax Asset of the recipient of
such  payment,  then,  in  addition  to any  amounts  otherwise  owed under this
Agreement,  the  payor  shall  pay  the  sum  of (i)  any  interest  or  penalty
attributable  to such  increased  tax  liability or to the reduction of such Tax
Asset, and (ii) the Grossed Up Tax Amount.

                                    ARTICLE 6

            CERTAIN TAX MATTERS RELATED TO THE DISTRIBUTION AGREEMENT
                       AND TO POST-DISTRIBUTION DEDUCTIONS

     SECTION 6.01. Payment of Grossed Up Tax Amounts. If any amount paid
                   ---------------------------------

                                       12
<PAGE>

under the Distribution Agreement by one party to another party to that agreement
results in any  increased  Tax  liability  or  reduction of any Tax Asset of any
member of the Delta  Apparel Tax Group or any member of the Duck Head Tax Group,
in the case of Delta Woodside,  or any member of the Delta Woodside Tax Group or
any  member of the Duck Head Tax  Group,  in the case of Delta  Apparel,  or any
member of the Delta  Woodside Tax Group or the Delta  Apparel Tax Group,  in the
case of Duck Head,  then the party  making such  payment  shall,  in addition to
paying any amounts  otherwise owed under the Distribution  Agreement,  indemnify
the  recipient  of such  payment  against  and hold it  harmless  from,  without
duplication, (i) such increased Tax or the reduction of such Tax Asset, (ii) any
interest  or  penalty  attributable  to  such  increased  Tax  liability  or the
reduction of such Tax Asset and (iii) the Grossed Up Tax Amount.

     SECTION 6.02. Deductions and Certain Taxes Related to Stock Options.
                   -----------------------------------------------------

     (a) Delta Woodside shall claim the Federal Tax deductions and any State Tax
deductions  attributable to the exercise,  following the  Distribution  Date, of
options to purchase the stock of Delta Woodside that are held by a person who is
at the time the  deduction  is  claimed  (or,  in the case of a person who is no
longer  employed by a member of the Delta  Woodside  Tax Group,  a member of the
Delta  Apparel  Tax Group or a member of the Duck Head Tax Group at the time the
deduction is claimed, who before or after the Distribution was) an employee of a
member of the Delta Woodside Tax Group.

     (b) Delta Woodside shall claim the Federal Tax deductions and any State Tax
deductions  attributable to the exercise,  following the  Distribution  Date, of
options to purchase the stock of Delta Woodside that are held by a person who is
at the time the  deduction  is  claimed  (or,  in the case of a person who is no
longer  employed by a member of the Delta  Woodside  Tax Group,  a member of the
Delta  Apparel  Tax Group or a member of the Duck Head Tax Group at the time the
deduction is claimed, who before or after the Distribution was) an employee of a
member of the Delta Apparel Tax Group or the Duck Head Tax Group.

     (c) The  employer of the person who  exercises  stock  options (or, if such
person is not employed by a member of the Delta  Woodside Tax Group, a member of
the Delta Apparel Tax Group or a member of the Duck Head Tax Group,  the company
among the  members of the Delta  Woodside  Tax Group,  the  members of the Delta
Apparel Tax Group and the members of the Duck Head Tax Group that  employed such
person  immediately  before such individual ceased such employment) shall timely
pay  the  applicable  Federal  Employment  Tax or any  state  employment  tax in
connection with such exercise.

     SECTION 6.03. Deductions Related to Employee Severance and Other Enumerated
                   -------------------------------------------------------------
Expenses.  For purposes of computing  Delta  Woodside's  Federal Taxes and Delta
--------
Woodside's  State Taxes for any  Pre-Distribution  Period,  Delta Woodside shall
receive the Federal Tax deductions and any State Tax deductions, as appropriate,
attributable to any and all expenses incurred in connection with the termination
of the employment of persons who were  employees of Delta  Woodside  immediately
before the Distribution.

                                       13
<PAGE>

     SECTION  6.04.  Indemnification  under  Article 6. To the  extent  that any
                     ---------------------------------
deduction  accorded to a member of the Delta  Woodside Tax Group by Section 6.02
or 6.03 is disallowed  because a Taxing  Authority  makes a Final  Determination
that a member  of the  Delta  Apparel  Tax  Group or of the Duck  Head Tax Group
should have claimed such deduction,  the Designated  Delta Apparel  Affiliate or
Designated  Duck Head  Affiliate,  respectively,  shall pay to Delta Woodside an
amount equal to the  resulting  actual tax benefit  Effectively  Realized by the
Delta Apparel Tax Group or the Duck Head Tax Group, respectively, within 30 days
of the Effective Realization thereof.

                                    ARTICLE 7

                                   INDEMNITIES

     SECTION 7.01.  Indemnification  by Delta Woodside Tax Group. Delta Woodside
                    --------------------------------------------
and each  other  member  of the  Delta  Woodside  Tax Group  shall  jointly  and
severally  indemnify  Delta Apparel,  the other members of the Delta Apparel Tax
Group,  Duck Head,  and the other members of the Duck Head Tax Group against and
hold them harmless from:

     (a) liability for any Taxes for which any member of the Delta  Woodside Tax
Group is responsible  under Article 3 hereof (provided that, for purposes of the
foregoing portion of this Section 7.01(a),  Taxes shall refer only to such taxes
as are  described  in  clause  (i) of the  definition  of such  term in  Section
1.01(a)),  including without limitation,  (i) any tax liability of any member of
the Delta  Woodside Tax Group  resulting  from the  existence of any excess loss
accounts or deferred intercompany gains immediately before the Distribution, and
(ii) any Federal  Employment  Tax of any member of the Delta Woodside Tax Group,
but excluding any Tax liability  resulting from the Distribution except for such
amounts as are described in clause (i) of this Section 7.01(a);

     (b) liability for Taxes  relating to any taxable  period  resulting  from a
breach by Delta  Woodside or any other member of the Delta Woodside Tax Group of
any  representation  or covenant  made by any member of the Delta  Woodside  Tax
Group in this Agreement; and

     (c) liability for Taxes resulting from the Intercompany  Reorganization  or
from the  Distribution,  except (A) to the extent that such liability  arises by
reason  of the  breach  by (I) Delta  Apparel  or any other  member of the Delta
Apparel Tax Group of any  representation  or covenant  made by any member of the
Delta Apparel Tax Group in this Agreement, or (II) Duck Head or any other member
of the Duck Head Tax Group of any  representation or covenant made by any member
of the  Duck  Head Tax  Group in this  Agreement,  (B) for such  amounts  as are
described in Section 7.01(a)(i),  and (C) for any tax liability of any member of
the Delta  Woodside  Tax Group  resulting  from the  existence  of any  deferred
intercompany gains immediately before the Distribution.

                                       14
<PAGE>

     SECTION 7.02. Indemnification by Delta Apparel Tax Group. Delta Apparel and
                   ------------------------------------------
each other  member of the Delta  Apparel Tax Group shall  jointly and  severally
indemnify  Delta  Woodside,  the other members of the Delta  Woodside Tax Group,
Duck Head,  and the other  members of the Duck Head Tax Group  against  and hold
them harmless from:

     (a)  liability  for any Taxes for which any member of the Delta Apparel Tax
Group is responsible  under Article 3 hereof (provided that, for purposes of the
foregoing portion of this Section 7.02(a),  Taxes shall refer only to such taxes
as are  described  in  clause  (i) of the  definition  of such  term in  Section
1.01(a)),  including without limitation,  (i) any tax liability of any member of
the Delta  Apparel Tax Group  resulting  from the  existence  of any excess loss
accounts or deferred intercompany gains immediately before the Distribution, and
(ii) any Federal  Employment  Tax of any member of the Delta  Apparel Tax Group,
but excluding any Tax liability  resulting from the Distribution except for such
amounts as are described in clause (i) of this Section 7.02(a);

     (b) liability for Taxes  relating to any taxable  period  resulting  from a
breach by Delta  Apparel or any other  member of the Delta  Apparel Tax Group of
any representation or covenant made by any member of the Delta Apparel Tax Group
in this Agreement; and

     (c) liability for Taxes resulting from the Intercompany  Reorganization  or
from the  Distribution,  except (A) to the extent that such liability  arises by
reason  of the  breach by (I) Delta  Woodside  or any other  member of the Delta
Woodside Tax Group of any  representation  or covenant made by any member of the
Delta  Woodside  Tax  Group in this  Agreement,  or (II)  Duck Head or any other
member of the Duck Head Tax Group of any  representation or covenant made by any
member of the Duck Head Tax Group in this Agreement, (B) for such amounts as are
described in Section 7.02(a)(i),  and (C) for any tax liability of any member of
the Delta  Apparel  Tax  Group  resulting  from the  existence  of any  deferred
intercompany gains immediately before the Distribution.

     SECTION 7.03.  Indemnification  by Duck Head Tax Group.  Duck Head and each
                    ---------------------------------------
other member of the Duck Head Tax Group shall  jointly and  severally  indemnify
Delta  Woodside,  the other  members  of the Delta  Woodside  Tax  Group,  Delta
Apparel,  and the other  members of the Delta Apparel Tax Group against and hold
them harmless from:

     (a) liability for any Taxes for which any member of the Duck Head Tax Group
is  responsible  under  Article 3 hereof  (provided  that,  for  purposes of the
foregoing portion of this Section 7.03(a),  Taxes shall refer only to such taxes
as are  described  in  clause  (i) of the  definition  of such  term in  Section
1.01(a)),  including without limitation,  (i) any tax liability of any member of
the Duck Head Tax Group resulting from the existence of any excess loss accounts
or deferred intercompany gains immediately before the Distribution, and (ii) any
Federal  Employment Tax of any member of the Duck Head Tax Group,  but excluding
any Tax liability resulting from the Distribution except for such amounts as are
described in clause (i) of this Section 7.03(a);

                                       15
<PAGE>

     (b) liability for Taxes  relating to any taxable  period  resulting  from a
breach  by Duck  Head or any  other  member  of the Duck  Head Tax  Group of any
representation or covenant made by any member of the Duck Head Tax Group in this
Agreement; and

     (c) liability for Taxes resulting from the Intercompany  Reorganization  or
from the  Distribution,  except (A) to the extent that such liability  arises by
reason  of the  breach by (I) Delta  Woodside  or any other  member of the Delta
Woodside Tax Group of any  representation  or covenant made by any member of the
Delta Woodside Tax Group in this  Agreement,  or (II) Delta Apparel or any other
member of the Delta Apparel Tax Group of any  representation or covenant made by
any  member  of the Delta  Apparel  Tax  Group in this  Agreement,  (B) for such
amounts as are described in Section 7.03(a)(i), and (C) for any tax liability of
any  member of the Duck  Head Tax  Group  resulting  from the  existence  of any
deferred intercompany gains immediately before the Distribution.

     SECTION 7.04. Additional Indemnity Amounts. Each party with indemnification
                   ----------------------------
obligations under Section 7.01, 7.02 or 7.03 (an "Indemnitor") shall also pay to
each party that is  indemnified  by such  Indemnitor  under such  provision  (an
"Indemnitee")  all  liabilities,  losses,  damages,  assessments,   settlements,
judgments,   costs  and  properly   documented  expenses   (including,   without
limitation,  expenses  of  investigation  and  reasonable  attorneys'  fees  and
expenses) arising out of or incident to the imposition,  assessment or assertion
of any  liabilities or damage  described in such provision,  including,  without
limitation,  those  incurred  in  the  contest  in  good  faith  in  appropriate
proceedings  relating to the  imposition,  assessment  or  assertion of any such
liability or damage.

     SECTION 7.05.  Notice of Claim. The Indemnitee agrees to give prompt notice
                    ---------------
to the  Indemnitor of the  assertion of any claim,  or the  commencement  of any
suit,  action or proceeding,  in respect of which  indemnity may be sought under
Section 7.01, 7.02 or 7.03.

     SECTION 7.06.  Discharge of Indemnity.  An Indemnitor  shall  discharge its
                    ----------------------
obligations  by paying all amounts  specified in Sections 7.01,  7.02,  7.03 and
7.04  within  30 days of  demand  therefor.  After a Final  Determination  of an
obligation against which an Indemnitee is indemnified, the Indemnitee shall send
a  statement  to the  Indemnitor  showing  the  amount,  if any,  due under such
provisions.  Calculation mechanics relating to items described in Sections 7.01,
7.02 and 7.03 shall be in  accordance  with the  principles  of Article 3 to the
extent they are applicable.  Notwithstanding that an Indemnitor disputes in good
faith the fact or the amount of any obligation under Section 7.01, 7.02 or 7.03,
payment thereunder and under Section 7.04 shall be made within 30 days of demand
therefor.

     SECTION  7.07.  Tax  Benefits.  If an  indemnification  obligation  of  any
                     -------------
Indemnitor  under this Article 7 arises in respect of an  adjustment  that makes
allowable to the Indemnitee any deduction,  amortization,  exclusion from income
or other allowance (a "Tax Benefit") that would not, but for such adjustment, be
allowable,  then any payment by the Indemnitor  pursuant to this Article 7 shall
be an amount equal to the excess of (a) the amount otherwise due but for this

                                       16
<PAGE>

Section  7.07,  over (b) the  present  value of the  product of the Tax  Benefit
multiplied by (i) in the case of a credit, 100 percent,  or (ii) otherwise,  the
highest Tax rate applicable to the Indemnitee in effect under  applicable law at
the time such Tax Benefit  becomes  allowable to the  Indemnitee.  Present value
computations  shall be made by discounting,  at the Intercompany  Interest Rate,
the product  described  in Section  7.07(b) in view of the date on which the Tax
Benefit becomes allowable.

                                    ARTICLE 8

                         AUDIT AND OTHER TAX PROCEEDINGS

     SECTION 8.01. Control Over Tax Proceedings.
                   ----------------------------

     (a)  Notwithstanding  anything in this  Agreement  to the  contrary,  Delta
Woodside  shall have full control over any and all matters with respect to which
the Delta Apparel Tax Group and the Duck Head Tax Group have provided  authority
to Delta Woodside under Section 2.02, including, without limitation, any and all
matters that would give rise to an indemnification obligation under Article 7 on
the part of any member of the Delta Woodside Tax Group,  any member of the Delta
Apparel Tax Group or any member of the Duck Head Tax Group. Delta Woodside shall
have absolute discretion with respect to any decisions to be made, or any action
to be taken, with respect to any matter described in the preceding sentence.

     (b) Without limiting the generality of Section 8.01(a), Delta Woodside may,
in its sole and absolute  discretion,  settle any Tax Proceeding with respect to
the Taxes over which it has  authority  under Section 2.02  (including,  without
limitation,  a Tax  Proceeding  relating to any and all matters  that would give
rise to an  indemnification  obligation  under Section 7.01, 7.02 or 7.03).  Any
such  settlement  shall be binding  on the  parties  to this  Agreement  without
further recourse.

                                    ARTICLE 9

                         COMMUNICATIONS AND COOPERATION

     SECTION 9.01. Consult and Cooperate. Delta Woodside, Delta Apparel and Duck
                   ---------------------
Head shall consult and cooperate (and shall cause their respective  subsidiaries
to  cooperate)  fully at the times and to the extent  reasonably  requested by a
party  to  this  Agreement  in  connection  with  all  matters  subject  to this
Agreement.  The cooperation under this Section 9.01 shall,  subject to the terms
of this Agreement, include, without limitation:

     (a) the retention and  provision on reasonable  request of any  information
(including,

                                       17
<PAGE>

without  limitation,  any books,  records,  documentation or other  information)
pertaining  to any Tax matters  relating to the Delta  Woodside  Tax Group,  the
Delta Apparel Tax Group or the Duck Head Tax Group,  any necessary  explanations
of information,  and access to personnel, until the expiration of the applicable
statute of  limitation  (giving  effect to any  extension,  waiver or mitigation
thereof);

     (b)  the  execution,  acknowledgment  and  delivery  of any  instrument  or
document  that may be  necessary or helpful in  connection  with (i) any Return,
(ii) any Tax Proceeding or other  litigation,  investigation or action, or (iii)
the carrying out of the parties'  respective  obligations  under this Agreement;
and

     (c) the use of the parties' best efforts to obtain any documentation from a
Taxing Authority, another governmental authority or another third party that may
be necessary or helpful in connection with the foregoing.

     SECTION 9.02.  Provide  Information.  Delta Woodside,  the Designated Delta
                    --------------------
Apparel  Affiliate and the Designated Duck Head Affiliate shall keep one another
fully informed with respect to any material developments relating to the matters
subject to this Agreement.

     SECTION 9.03. Tax Attribute Matters.  Delta Woodside,  the Designated Delta
                   ---------------------
Apparel  Affiliate and the Designated  Duck Head Affiliate shall promptly advise
one  another  with  respect  to any  proposed  Tax  adjustments,  relating  to a
Consolidated  Group,  that  are  the  subject  of  a  Tax  Proceeding  or  other
litigation,  investigation  or action  and that may  materially  affect  any Tax
liability or Tax attribute of the other parties to this Agreement.

                                   ARTICLE 10

                                  MISCELLANEOUS

     SECTION 10.01.  Guarantee.  Delta Apparel  guarantees the obligations under
                     ---------
this  Agreement of each other member of the Delta  Apparel Tax Group.  Duck Head
guarantees the obligations under this Agreement of each other member of the Duck
Head Tax Group.  Delta Woodside  guarantees the obligations under this Agreement
of each other member of the Delta Woodside Tax Group.

     SECTION  10.02.  Dispute  Resolution.  If the parties  hereto are unable to
                      -------------------
resolve any  disagreement or dispute  relating to this Agreement within 20 days,
such  disagreement  or dispute  shall be  resolved by Delta  Woodside.  Any such
resolution  shall be binding on the parties to this  Agreement  without  further
recourse.

     SECTION 10.03.  Authorization.  Each of Delta  Woodside,  Delta Apparel and
                     -------------
Duck Head hereby represents and warrants that (i) it has the power and authority
to execute,

                                       18
<PAGE>

deliver and perform this Agreement, (ii) this Agreement has been duly authorized
by all  necessary  corporate  action  on the  part of  such  party,  (iii)  this
Agreement  constitutes a legal,  valid and binding obligation of such party, and
(iv) the  execution,  delivery and  performance  of this Agreement by such party
does not  contravene  or conflict  with any  provision of law or of such party's
charter or bylaws or any agreement, instrument or order binding on such party.

     SECTION 10.04.  Notices. All notices,  requests and other communications to
                     -------
any party hereunder shall be in writing (including facsimile or similar writing)
and shall be given:

     If to Delta Woodside:

        Delta Woodside Industries, Inc.
        233 North Main Street
        Greenville, South Carolina 29601
        Attention: President
        Telecopy No.: (864) 232-6164

     If to Duck Head:

        Duck Head Apparel Company, Inc.
        1020 Barrow Industrial Parkway
        P.O. Box 688
        Winder, Georgia 30680
        Attention: President
        Telecopy No.: (770) 867-3111

    If to Delta Apparel:

        Delta Apparel, Inc.
        3355 Breckinridge Blvd.
        Suite 100
        Duluth, Georgia 30096
        Attention: President
        Telecopy No.: (770) 806-6800

or such other address or facsimile number as such party may hereafter specify in
writing  for this  purpose  by  notice to the other  parties  hereto.  Each such
notice,  request  or  other  communication  shall be  effective  (a) if given by
facsimile,  when such facsimile is transmitted to the facsimile number specified
in this Section 10.04 and the appropriate facsimile  confirmation is received or
(b) if given by any other means, when delivered at the address specified in this
Section 10.04.

                                       19
<PAGE>

     SECTION 10.05. Amendments; No Waivers.
                    ----------------------

     (a) Any  provision of this  Agreement may be amended or waived if, and only
if,  such  amendment  or  waiver is in  writing  and  signed,  in the case of an
amendment,  by Delta Woodside,  Delta Apparel and Duck Head, or in the case of a
waiver, by the party or parties against whom the waiver is to be effective.

     (b) No failure  or delay by any party in  exercising  any  right,  power or
privilege  hereunder  shall operate as a waiver  thereof nor shall any single or
partial  exercise  thereof preclude any other or further exercise thereof or the
exercise of any other right, power or privilege.  The rights and remedies herein
provided  shall be  cumulative  and not  exclusive  of any  rights  or  remedies
provided by law.

     SECTION 10.06. Expenses.  Except as specifically provided otherwise in this
                    --------
Agreement or in the Distribution Agreement,  each party shall bear its own costs
and expenses  (including,  without  limitation,  reasonable  attorneys' fees and
other professional fees and expenses).

     SECTION  10.07.  Successors  and Assigns.  The provisions of this Agreement
                      -----------------------
shall be binding  upon and shall inure to the benefit of the parties  hereto and
their  respective  successors  (whether  by  merger,  acquisition  of  assets or
otherwise, and, including,  without limitation,  any successor succeeding to the
tax  attributes  of a party under  Section 381 of the Code) and assigns,  to the
same extent as if such  successor  or assign had been an original  party to this
Agreement;  provided that,  except as set forth in this Agreement,  no party may
assign,  delegate or otherwise  transfer any of its rights or obligations  under
this Agreement without the consent of each of the other parties hereto.

     SECTION  10.08.  Governing  Law.  This  Agreement  shall  be  construed  in
                      --------------
accordance  with  and  governed  by the  internal  laws of the  State  of  South
Carolina.

     SECTION 10.09. Counterparts; Effectiveness; No Third Party Beneficiaries.
                    ---------------------------------------------------------

     (a) This  Agreement  may be signed in any number of  counterparts,  each of
which shall be an original,  with the same effect as if the  signatures  thereto
and hereto were upon the same instrument.  This Agreement shall become effective
upon the consummation of the Distribution, provided that at or before such time,
each party hereto shall have received a  counterpart  hereof signed by the other
parties hereto. No provision of this Agreement is intended to confer any rights,
benefits,  remedies,  obligations or liabilities hereunder upon any person other
than (i) the parties hereto, (ii) other members of the Delta Woodside Tax Group,
(iii) other members of the Delta Apparel Tax Group and (iv) other members of the
Duck Head Tax Group,  together in each case with their respective successors and
assigns.

     (b) All rights and  obligations  arising under this Agreement shall survive
until they are

                                       20
<PAGE>

fully  effectuated or performed.  Notwithstanding  anything in this Agreement to
the contrary,  this Agreement  shall remain in effect and its  provisions  shall
survive for the full period of all  applicable  statutes of  limitation  (giving
effect to any extension, waiver or mitigation thereof).

     SECTION 10.10.  Severability.  If any one or more of the provisions of this
                     ------------
Agreement should be held invalid,  illegal or unenforceable in any respect,  the
validity,  legality and  enforceability  of the remaining  provisions  contained
herein shall not in any way be affected or impaired  thereby.  The parties shall
endeavor  in  good  faith  negotiations  to  replace  the  invalid,  illegal  or
unenforceable provisions so that the replacement provisions will be valid, legal
and enforceable and will have an economic effect that comes as close as possible
to that of the invalid, illegal or unenforceable provisions.

     SECTION 10.11.  Specific  Performance.  Each of Delta  Woodside,  the other
                     ---------------------
members of the Delta Woodside Tax Group, Delta Apparel, the other members of the
Delta  Apparel Tax Group,  Duck Head and the other  members of the Duck Head Tax
Group  acknowledges and agrees that damages for a breach or threatened breach of
any of the provisions of this Agreement would be inadequate and that irreparable
harm would occur.  In recognition  of this fact,  each such  corporation  agrees
that,  in the event of such  breach or  threatened  breach,  in  addition to any
damages,  any of the other parties to this Agreement,  without posting any bond,
shall be  entitled to seek and obtain  equitable  relief in the form of specific
performance,  temporary  restraining order,  temporary or permanent  injunction,
attachment or any other equitable  remedy that may then be available to obligate
the breaching  party to (i) comply with the covenants made by, and perform other
obligations of, it (or, as appropriate, of Delta Woodside, Delta Apparel or Duck
Head)  under this  Agreement,  or (ii) if the  breaching  party is  unable,  for
whatever reason, to comply with such covenants and perform such obligations,  to
take such  other  actions  as are  necessary  or  appropriate  to give the other
parties to this  Agreement  the tax effect and the economic  effect that come as
close as possible to  compliance  with such  covenants and  performance  of such
obligations.

     SECTION 10.12.  Captions.  Section  captions used in this Agreement are for
                     --------
convenience only and shall not affect the construction of this Agreement.

                                       21
<PAGE>

     IN  WITNESS  WHEREOF  the  parties  hereto  have  caused  this Tax  Sharing
Agreement to be duly executed by their respective  authorized officers as of the
date first above written.

                                      DELTA WOODSIDE INDUSTRIES, INC.

                                      By /s/

                                      _________________________
                                      Title:

                                      DELTA APPAREL, INC.

                                      By /s/

                                      _________________________
                                      Title:

                                      DUCK HEAD APPAREL COMPANY, INC.

                                      By /s/

                                      _________________________
                                      Title:

                                      22
<PAGE>DH APPAREL COMPANY, INC.
                             2000 STOCK OPTION PLAN

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

<PAGE>

                            DH APPAREL COMPANY, INC.
                             2000 STOCK OPTION PLAN
                             ----------------------

1. PURPOSE.
-----------

     The purpose of the DH Apparel  Company,  Inc.  2000 Stock  Option Plan (the
"Plan") is to promote the growth and  profitability of DH Apparel Company,  Inc.
(the  "Company")  and its  subsidiaries  from time to time  ("Subsidiaries")  by
increasing the personal  participation of key and middle level executives in the
continued growth and financial success of the Company and the  Subsidiaries,  by
enabling the Company and the  Subsidiaries  to attract and retain  executives of
outstanding   competence  and  by  providing  such  executives  with  an  equity
opportunity in the Company.  This purpose will be achieved  through the grant of
options  ("Options")  to  purchase  shares of the  common  stock of the  Company
("Shares").

2. ADMINISTRATION.
------------------

     The Plan shall be  administered  by the Company's  Board of Directors  (the
"Board");  provided, however, that in its discretion, the Board may delegate its
authority under the Plan to a committee of the Board (the "Committee")  composed
solely  of two or more  "Non-Employee  Directors"  ( as  defined  in Rule  16b-3
promulgated  under the  Securities  Exchange  Act of 1934,  as  amended,  or any
applicable successor rule or regulation (the "Exchange Act")).

     The Board (or  Committee,  as  applicable)  shall have  complete  and final
authority to: (i) interpret  all terms and  provisions of the Plan;  (ii) select
from the group of key and middle level executives eligible to participate in the
Plan the executives to whom Options will be granted;  (iii) subject to the terms
of the Plan,  establish  the  terms and  conditions  of each  Option,  including
without  limitation the number of Shares subject to the Option,  the term of the
Option,  and any schedule for or conditions of the exercise of the Option;  (iv)
prescribe the form of instrument(s)  evidencing  Options granted under the Plan;
(v)  determine  the time or times at which  Options  will be granted;  (vi) make
special  grants of  Options  as the  Board (or  Committee,  as  applicable)  may
determine to be  appropriate;  (vii) determine the method of exercise of Options
granted  under the Plan;  (viii)  adopt,  amend and rescind  general and special
rules for the Plan's administration;  and (ix) make all other determinations and
take all other  actions  necessary or advisable  for the  administration  of the
Plan.

     Unless the bylaws or a  resolution  of the Board  provides  otherwise,  any
action that the Board (or Committee, as applicable) is authorized to take may be
taken  without a meeting  if all the  member  of the  Board  (or  Committee,  as
applicable) sign a written document authorizing such action.

     The Board (or  Committee,  as  applicable)  may  designate  selected  Board
members or certain  employees of the Company to assist the Board (or  Committee,
as applicable) in the administration of the Plan and may grant authority to such
persons  to execute  documents,  including  Options,  on behalf of the Board (or
Committee, as applicable).

     No  member  of  the  Board  shall  be  liable  for  any  action   taken  or
determination made in good faith in connection with the Plan.

                                        1
<PAGE>

3. ELIGIBILITY AND FACTORS TO BE CONSIDERED IN GRANTING OPTIONS.
----------------------------------------------------------------

     Key or middle  level  executive,  whether or not officers or members of the
Board, of the Company and its  Subsidiaries  who have the greatest impact on the
Company's  long-term  performance shall be eligible to receive Options under the
Plan. In determining  the key and middle level  executives to which Options will
be  granted  and the  number of shares  subject  to each  Option,  the Board (or
Committee,  as applicable) shall take into account the level and  responsibility
of the executive's position, the executive's performance, the assessed potential
of the  executive  and  such  other  factors  as the  Board  (or  Committee,  as
applicable) may deem relevant to the accomplishment of the purposes of the Plan.
Options  may be  granted  under  the Plan  only for  reasons  connected  with an
executive's employment with the Company or a Subsidiary.

     Directors of the Company or any  Subsidiary  who are not also  employees of
the Company or any of its  Subsidiaries  are not eligible to  participate in the
Plan.

4. SHARES SUBJECT TO THE PLAN.
------------------------------

     Subject to the  provisions  of Section 14, the  aggregate  number of Shares
with  respect to which  Options  may be granted  under the Plan shall not exceed
500,000  Shares.  If an Option  expires,  terminates or is  surrendered  without
having been fully  exercised,  any Shares  subject to the Option with respect to
which the Option was not exercised shall again be available for purposes of this
Plan. The Board (or Committee, as applicable) shall maintain records showing the
cumulative total of all Shares subject to outstanding Options.

5. DESIGNATION OF OPTIONS; NUMBER OF SHARES.
--------------------------------------------

     Subject to the terms of the Plan, the Board (or  Committee,  as applicable)
may, in its sole discretion, grant Options to eligible participants.

     In granting Options, the Board (or Committee,  as applicable) shall clearly
indicate  as to each  Option  whether the Option is an  incentive  stock  option
("ISO") or a  non-qualified  stock option ("NQO").  The Board (or Committee,  as
applicable)  may grant both ISOs and NQOs to the same  executive,  provided that
the  ISOs  and  NQOs  are  granted  separately.  The  Board  (or  Committee,  as
applicable)  shall not  designate  an Option as an ISO  unless  the terms of the
Option  comply  with all of the  requirements  of  Section  422 of the  Internal
Revenue Code of 1986, as amended (the "Code").

     Subject to Section 4., the Board (or Committee,  as  applicable)  may grant
Options to eligible  participants  with  respect to such number of Shares as the
Board (or Committee,  as  applicable),  in its sole  discretion,  may determine;
provided,  that no participant  may be awarded  Options during any calendar year
with respect to an aggregate (subject to Section 14) of more than 125,000 shares
of common stock.

     With respect to Options designated as ISOs, the aggregate fair market value
(determined at the Options' respective dates of grant in accordance with Section
422(c)(7)  of the Code) of the Shares  with  respect to which such  Options  are
exercisable for the first time by a participant  during any calendar year (under
all plans taken into account  pursuant to Section  422(d) of the Code) shall not
exceed $100,000.

                                        2
<PAGE>

6. EXERCISE PRICE.
------------------

     The price per Share at which  each  Option  may be  exercised  shall be the
price determined by the Board (or Committee, as applicable) at the time of grant
based  on such  criteria  as may be  adopted  by the  Board  (or  Committee,  as
applicable) in good faith, but in no event shall the exercise price per share of
an Option be less than the par value of a Share or less than fifty percent (50%)
of the fair  market  value of a Share at the time  such  Option is  granted.  In
addition,  (i) the  exercise  price per share for any ISO shall be not less than
the  fair  market  value  of a Share  (determined  in  accordance  with  Section
422(c)(7)  of the Code) at the time such  Option is granted;  (ii) the  exercise
price per share for any ISO shall be not less than 110% of the fair market value
of a Share  (determined in accordance with Section 422(c)(7) of the Code) at the
time such Option is granted if immediately  prior to the grant, the recipient is
a person who beneficially owns (determined in accordance with Section 424 of the
Code)  stock  having more than ten percent  (10%) of the total  combined  voting
power of all  classes  of stock  of the  Company  or any  parent  or  subsidiary
corporation of the Company  (determined in accordance with Section 424(d) of the
Code) (a "10% Owner");  and (iii) the exercise price per share shall be not less
than the fair market  value of a Share at the time the Option is granted for any
grant that is  intended  to qualify as "performance-based  compensation"  under
Section 162(m)(4)(C) of the Code and the regulations promulgated thereunder.

7. TERM.
--------

     The term of each Option shall be established by the Board (or Committee, as
applicable)  but shall not  exceed  ten (10)  years  from the date of grant.  In
addition,  no ISO granted to a participant  who is a 10% Owner shall have a term
exceeding five (5) years from the date of grant.

8. TIME OF GRANT.
-----------------

     The date of grant of an Option for all purposes  shall be the date on which
the Board (or Committee, as applicable) approves the grant of the Option. Notice
of the grant shall be given to each Option recipient (each a "Grantee") within a
reasonable time after the date of grant.

9. TRANSFER.
------------

     An Option shall not be  transferable  by the Grantee  except by will or the
laws of descent and distribution.  During the Grantee's lifetime,  an Option may
only be exercised by the Grantee.

10. EXERCISE.
-------------

     Subject to the terms of the Plan, an Option may be exercisable at such time
or times after the date of grant and upon such  conditions and according to such
schedule as may be determined by the Board (or Committee,  as applicable) at the
time of grant.

     At the  time  of  grant  of  each  Option,  the  Board  (or  Committee,  as
applicable)  shall  determine,  and the written Option agreement or letter shall
set  forth,  the  effect  on the  Option  of the  termination  of the  Grantee's
employment with the Company or any of its Subsidiaries for any reason other than
death or permanent and total  disability with the meaning of Section 22(e)(3) of
the Code (or any

                                        3
<PAGE>

successor  provision).  In the  discretion  of the  Committee,  such  effect may
include  immediate  expiration  of the Option or expiration of the Option at the
end of a period of time (not to exceed either three months or the stated term of
the Option)  immediately  following such termination of employment.  In no event
shall the  Grantee be able to exercise an Option for more Shares than the number
of shares for which the Option could have been exercised at the time the Grantee
ceased to be an employee.

     If a Grantee  dies while in the employ of the Company or a  Subsidiary,  or
(if the Board (or Committee,  as applicable) so determines at the time of grant)
within three months after the  termination of such  employment,  or if a Grantee
terminates  employment  with the Company or a Subsidiary  due to  permanent  and
total  disability  (within  the  meaning of Section  22(e)(3) of the Code or any
successor provision), the Grantee's Option(s) may be exercised by the Grantee or
the Grantee's estate, as the case may be, during a period not exceeding one year
after the date of the  Grantee's  death or  termination  of  employment  for the
number of Shares for which the Option could have been  exercised at the time the
Grantee died or became permanently and totally disabled.

     Notwithstanding any other provision of this Plan, in no event may an Option
be exercised after the expiration of its stated term.

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

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

     "Continuing  Directors" shall mean, as of any date, any member of the Board
who (i) was a

                                        4
<PAGE>

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

11. METHOD OF EXERCISE.
-----------------------

     An Option shall be deemed  exercised when (i) the Company  receives written
notice of the holder's decision to exercise the Option;  (ii) the holder tenders
to the  Company  payment  in full in cash (or if the  Board  (or  Committee,  as
applicable)  so  determines  at the time of  grant,  in  Shares)  the  aggregate
exercise  price  for the  Shares  with  respect  to which  the  Option  is to be
exercised;  (iii) the holder tenders to the Company  payment in full in cash the
amount of all federal and state withholding or other employment taxes applicable
to the taxable income,  if any, of the holder resulting from the exercise of the
Option; and (iv) the holder complies with such other reasonable  requirements as
the Board (or Committee, as applicable) may establish.

     An Option may be  exercised  for any lesser  number of Shares than the full
number for which it could have been exercised. Such a partial exercise shall not
affect the right to exercise  the Option  from time to time with  respect to the
remaining Shares subject to the Option.

12. CANCELLATION AND REPLACEMENT OF OPTIONS.
--------------------------------------------

     The Board (or  Committee,  as  applicable)  may at any time or from time to
time permit a Grantee to  voluntarily  surrender any  outstanding  Options where
such  surrender is  conditioned  upon the granting to the Grantee of new Options
for such  number  of  Shares as the Board  (or  Committee,  as  applicable)  may
determine.  The Board (or  Committee,  as  applicable)  may require a Grantee to
surrender  outstanding  Options  as a  condition  precedent  to the grant of new
Options to such Grantee.

     Subject to the terms of the Plan, the Board (or  Committee,  as applicable)
shall  determine  the terms and  conditions  of any new Options,  including  the
prices at and  periods  during  which  they may be  exercised,  all of which may
differ from the terms and  conditions of the Options  surrendered.  Any such new
Options  shall be subject to the Plan.  The grant of new  Options in  connection
with the surrender of outstanding  Options shall be considered,  for purposes of
the Plan,  as the grant of new Options and not as an  alteration,  amendment  or
modification of the Plan or the Options surrendered.

     The Shares  subject to any Options  surrendered  shall no longer be charged
against  the  aggregate  Share  limit set forth in Section 4. and shall again be
available for grants of Options under the Plan.

13. TERMINATION OF OPTIONS.
---------------------------

     An Option shall be considered  terminated in whole or in part to the extent
that,  in  accordance  with the  provisions  of the  Plan,  it can no  longer be
exercised  with respect to Shares  subject to the Option.  The Shares subject to
any  Option,  or portion  thereof,  that  terminates  shall no longer be charged
against  the  aggregate  Share  limit set forth in Section 4. and shall again be
available for the grant of Options under the Plan.

                                        5
<PAGE>

14. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION.
-----------------------------------------------

     In the event of any change in the  characteristics  of the Shares by reason
of a stock dividend,  recapitalization,  merger, reorganization,  consolidation,
stock split,  reverse stock split or any other similar event, the Shares subject
to the  Plan  and  the  Shares  subject  to each  outstanding  Option  shall  be
correspondingly  increased,  reduced or  changed,  such that by  exercise of any
outstanding  Option,  a Grantee will  receive,  without  change in the aggregate
purchase price, securities, as so increased,  reduced or changed,  comparable to
the  securities the Grantee would have received if the Grantee had exercised the
Option prior to such event. In the case of an ISO, the foregoing  sentence shall
apply in the event of a merger, consolidation, acquisition of property or stock,
separation,  reorganization or liquidation,  if the excess of the aggregate fair
market value of the Shares  subject to the Option  immediately  after such event
over the aggregate  exercise price of such Shares is not more than the excess of
the aggregate fair market value of all Shares subject to the Option  immediately
prior to such event over the aggregate exercise price of such Shares.

     Adjustments under this Section shall be made by the Board (or Committee, as
applicable),  whose determination as to the nature and extent of any adjustments
shall be binding and final.

15. COMPLIANCE WITH SECURITIES AND EXCHANGE COMMISSION AND OTHER REQUIREMENTS.
------------------------------------------------------------------------------

     No certificates for Shares shall be executed and delivered upon exercise of
any Option unless and until the Company is able to take such action,  if any, as
is then  required to comply with the  Securities  Act of 1933,  as amended;  the
Exchange Act; the South Carolina Uniform  Securities Act, as amended;  any other
applicable  state  securities laws and the requirements of any exchange on which
the Shares may be listed.

     In the case of the  exercise  of an Option by a person or estate  acquiring
the right to  exercise  the  Option by  bequest  of  inheritance,  the Board (or
Committee, as applicable) may require reasonable evidence as to the ownership of
the Option and may require such consent and releases of taxing authorities as it
may deem advisable.

16. NO RIGHT TO EMPLOYMENT.
---------------------------

     Neither  the  adoption  of the Plan  nor its  operation,  nor any  document
describing or referring to the Plan, or any part thereof,  shall confer upon any
participant  under this Plan any right to  continue in the employ of the Company
or any Subsidiary, or shall in any way affect the right and power of the Company
or any  Subsidiary to terminate the  employment of any  participant  at any time
with or without  cause,  to the same extent as the Company or  Subsidiary  might
have done if the Plan had not been adopted.

17. NO RIGHTS AS SHAREHOLDER.
-----------------------------

     No person,  estate or other entity  shall have any rights as a  shareholder
with  respect to the Shares  obtained  as a result of the  exercise of an Option
until a certificate or certificates for the Shares have been received.

                                        6
<PAGE>

18. AMENDMENT AND TERMINATION.
------------------------------

     The Board may at any time suspend,  amend or terminate this Plan. The Board
(or  Committee,  as  applicable)  may make such  modifications  to the terms and
conditions of any Option as it shall deem advisable.  No Option shall be granted
during any  suspension or after  termination  of the Plan.  Notwithstanding  the
foregoing provisions of this Section, no amendment, suspension or termination of
the Plan and no  modification  of any Option  shall,  without the consent of the
holder of an Option,  alter or impair any rights or obligations under any Option
granted prior to the effective date of the amendment,  suspension or termination
of the Plan or of the modification to the Option.

     In addition to Board  approval of an amendment to the Plan, the Board shall
obtain such consent by the holders of the capital stock of the Company,  if any,
as may be required by applicable law,  including  without  limitation Rule 16b-3
promulgated  under the  Securities  Exchange Act of 1934,  as amended,  Sections
162(m) and 421 through 424 of the Internal Revenue Code.

19. USE OF PROCEEDS.
--------------------

     The proceeds  received by the Company  from the sale of Shares  pursuant to
the  exercise  of  Options  shall  be used for  general  corporate  purposes  as
determined by the Board.

20. INDEMNIFICATION OF BOARD.
-----------------------------

     In addition  to such other  rights of  indemnification  as they may have as
members  of the  Board,  the  members  of  the  Board  (and  the  Committee,  as
applicable) shall, to the fullest extent permitted by law, be indemnified by the
Company  against the reasonable  expenses,  including  attorneys' fees and legal
costs,  actually and necessarily  incurred in connection with the defense of any
action,  suit or proceeding,  or in connection with any appeal therein, to which
they or any of them  may be a party by  reason  of any  action  or  omission  in
connection with the Plan or any Option,  and against all amounts paid by them in
settlement  thereof  (provided such settlement is approved by independent  legal
counsel  selected by the Company) or paid by them in  satisfaction of a judgment
in any such  action,  suit or  proceeding,  except in  relation to matters as to
which it has been adjudged in such action, suit or proceeding that such Board or
Committee member is liable for gross negligence or misconduct in the performance
of such member's duties;  provided that within 60 days after  institution of any
such action,  suit or proceeding the Board or Committee  member shall in writing
offer the Company the opportunity,  at the Company's own expense,  to handle and
defend the same.

21. EFFECTIVE DATE OF THE PLAN.
-------------------------------

     This Plan shall be  effective  February  15,  2000,  subject to  subsequent
approval by the requisite shareholder vote no later than the next annual meeting
of  the  shareholders  of  the  Company.  Any  Options  granted  prior  to  such
shareholder  approval shall also be subject to shareholder approval of the Plan.
If the Plan is not approved by the  shareholders of the Company,  the Plan shall
terminate and any Options granted under the Plan shall expire.

                                        7

<PAGE>

22. DURATION OF THE PLAN.
-------------------------

     Unless previously terminated by the Board, this Plan shall terminate at the
close of business on February 15, 2010,  and no Option may be granted  under the
Plan thereafter,  but such termination shall not affect any Option granted prior
to termination of the Plan.

23. GOVERNING LAW.
------------------

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

                                        8
<PAGE>

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