PLUMA, INC.

                              SALES INCENTIVE PLAN
I.       ADMINISTRATION
         The Company's Compensation Committee shall administer the Company's
         Sales Incentive Plan which is designed to create incentive for the
         Company's sales staff to increase customer sales.

II.      THE INCENTIVE PLAN
         Each year, the Company's Compensation Committee will establish a base
         level of annual sales volume (the "Sales Threshold") upon which the
         incentive sales bonus is calculated. At each fiscal year end, the
         Company subtracts the Sales Threshold from the Company's actual total
         nets sales for such year. This difference (the "Bonus Base") is the
         base amount upon which bonuses are determined for the Company's
         salespeople. In the event the Company's actual net sales for a fiscal
         year exceed the Sales Threshold, then each Company salesperson is
         entitled to the payment of a bonus determined by multiplying his or her
         base salary by a fraction, the numerator of which is the Bonus Base and
         the dominator of which is the Sales Threshold. The Sales Threshold is
         determined annually by the Company's Board of Directors after a
         recommendation from its Compensation Committee.