PLUMA, INC.

                           SENIOR EXECUTIVE BONUS PLAN

I.       ADMINISTRATION
         The Company's Senior Executive Bonus Plan ("Bonus Plan") shall be
         administered by the Company's Compensation Committee, and may be
         altered or amended as agreed to by the members of the Compensation
         Committee.

II.      THE BONUS PLAN
         A.       TIERS/PARTICIPANTS
                  The Bonus Plan shall consist of at least two tiers and more
                  tiers may be added at the discretion of the Compensation
                  Committee. Participants are selected and placed in the
                  appropriate tier at the discretion of the Compensation
                  Committee. Selection is based upon the level of
                  responsibility, past performance with the Company and possible
                  impact on Company profitability as a result of the
                  participant's position with Company.

         B.       THE BONUS POOL
                  The "Bonus Pool" available for distribution is determined by
                  reference to the Company's fiscal year end pre-tax income
                  before bonuses are paid under the Bonus Plan, as adjusted by
                  adding back to such pre-tax income the Participant's base
                  salary paid for the year for which bonuses are calculated. The
                  Bonus Pool is equal to the amount of the Compensation Pool
                  less the sum of all base salaries paid to the Participants for
                  the year in which bonuses are calculated.

                  The Compensation Committee allocates the Bonus Pool between
                  the tiers in a discretionary manner, with consideration given
                  to the number of Participants in each tier as determined in
                  the sole discretion of the Compensation Committee. In
                  addition, the Compensation Committee and the Board may grant
                  to the tier 1 Participants an extraordinary bonus ("Bonus
                  Percentage") equal to a percentage (as determined by the
                  Compensation Committee) of any annual pre-tax profits earned
                  in excess of a pre-determined pre-tax profit level (the
                  "Profit Target"). The Bonus Percentage shall be determined
                  annually at the discretion of the Compensation Committee. The
                  Profit Target is determined in the early part of each fiscal
                  year at the discretion of the Compensation Committee.

         C.       EXTRAORDINARY ITEMS
                  The Compensation Committee is allowed discretion to consider
                  or disregard extraordinary items, usually of a one-time
                  nature, that might either increase or decrease the amount of
                  the Compensation Pool.