
<PAGE>   1
                                                                    EXHIBIT 10.2


                             R.G. BARRY CORPORATION
                          SUPPLEMENTAL RETIREMENT PLAN
                            EFFECTIVE JANUARY 1, 1997

         R.G. Barry Corporation (the "Sponsor") adopted a deferred compensation
plan effective January 1, 1978 in order to provide supplemental retirement
benefits to certain officers and other management or highly compensated
employees of the Sponsor and its Affiliates. The Plan was subsequently amended
and, effective as of January 1, 1989, the Sponsor adopted an amended and
restated version of the Plan. Effective as of January 1, 1997, the Sponsor
hereby adopts this amended and restated Plan as set forth herein as a
continuation of the Plan, as originally adopted and later amended. The
provisions of this amended and restated Plan shall apply only to Participants
who terminate employment with an Employer on or after January 1, 1997. The
rights and benefits, if any, of a former Participant shall be determined in
accordance with the provisions of the Plan as in effect on the date his
employment terminated.

                                    ARTICLE I
                                   DEFINITIONS

1.01     ACCRUED RETIREMENT PENSION
         --------------------------

         "Accrued Retirement Pension" shall mean the pension to which the
Participant would have been entitled under the Plan at his Normal Retirement
Date had he remained in the full-time employ of the Employer until his Normal
Retirement Date and using in the calculation his current Final Average
Compensation; multiplied by a fraction, the numerator of which is his Salaried
Benefit Service up to the date of determination and the denominator of which is
the Salaried Benefit Service he would have had if he had remained in the employ
of the Employer accruing Salaried Benefit Service at the maximum annual rate
until his Normal Retirement Date. In determining the Accrued Retirement Pension
of a Participant who has not attained his Normal Retirement Date, the amount of
his Primary Social Security Benefit shall be estimated based on the provisions
of the Social Security Act in effect on the first day of the Plan Year during
which such determination is made, assuming that his Compensation will continue
at its most recent rate.

1.02     ACTUARIAL EQUIVALENT
         --------------------

         "Actuarial Equivalent" shall have the same meaning as such term has in
the Base Plan, using the same actuarial assumptions and reduction factors as are
used in the Base Plan for the relevant calculation under this Plan. By way of
example, for purposes of Section 4.02 of this Plan, if a Participant commences
his Early Retirement Benefit prior to attainment of his Normal Retirement Age,
such monthly benefit shall be reduced by using the reduction factors utilized
under the Base Plan for the reduction of early retirement payments.
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1.03     BASE PLAN
         ---------

         "Base Plan" shall mean the R.G. Barry Corporation Associates'
Retirement Plan. Except as expressly provided in this Plan, each capitalized
definition or term used in this document shall have the same meaning as that
definition or term used in the Base Plan.

1.04     COMPENSATION
         ------------

         "Compensation" shall have the same meaning as used in the Base Plan
except that (a) amounts deferred under the R.G. Barry Corporation Deferred
Compensation Plan shall be included as "Compensation" for purposes of this Plan;
and (b) "Compensation" shall not be limited by the provisions of Section
401(a)(17) of the Code.

1.05     ORIGINAL PARTICIPANT
         --------------------

         "Original Participant" shall mean an individual who was a participant
in the Plan in effect prior to its amendment and restatement on January 1, 1989.
Unless otherwise specifically provided herein, an Original Participant shall be
treated in the same manner as any other Plan Participant.

1.06     PLAN
         ----

         "Plan" shall mean this R.G. Barry Corporation Supplemental Retirement
Plan, including any amendments made hereto. The Plan Year for this Plan shall be
the calendar year. This amended and restated Plan shall be effective as of
January 1, 1997.

                                   ARTICLE II
                                  PARTICIPATION

2.01     ELIGIBILITY
         -----------

         A Participant in this Plan shall be any officer or other management or
Highly Compensated Employee of an Employer who is designated by the Board of
Directors of the Sponsor as being a Participant. The selection of Participants
for the Plan shall be within the sole and absolute discretion of the Board of
Directors of the Sponsor.

2.02     COMMENCEMENT OF PARTICIPATION
         -----------------------------

         Notwithstanding the preceding section of this Article II, an individual
shall not become a Participant in the Plan unless, within a reasonable time, he
furnishes the Committee with such applications, consents and beneficiary
designations as the Committee may specify and satisfies such other requirements
as the Committee may prescribe.

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                                   ARTICLE III
                            ELIGIBILITY FOR BENEFITS

3.01     NORMAL RETIREMENT
         -----------------

         Each Participant who retires on the date he attains his Normal
Retirement Age shall be entitled to receive a Normal Retirement Benefit as
provided in Section 4.01. Such Normal Retirement Benefit shall commence as of
the first day of the calendar month coincident with or next following such date.

3.02     EARLY RETIREMENT
         ----------------

         Each Participant who retires before he is eligible for a Normal
Retirement Benefit under Section 3.01, but on or after the date he attains his
Early Retirement Age shall be entitled to receive an Early Retirement Benefit as
provided in Section 4.02. Such Early Retirement Benefit shall commence as of the
first day of the calendar month following his retirement, or as of the first day
of any later month up to the date his Normal Retirement Benefit would commence
under Section 3.01, as the Participant shall have elected.

3.03     LATE RETIREMENT
         ---------------

         Each Participant who continues as an employee of an Employer beyond the
date he is eligible for a Normal Retirement Benefit under Section 3.01 and has
completed at least five years of Vesting Service shall be entitled to receive a
Late Retirement Benefit as provided in Section 4.03. Such Late Retirement
Benefit shall commence on the date that the Participant's benefits commence
under the Base Plan.

3.04     DEFERRED VESTED RETIREMENT
         --------------------------

         A Participant who separates from service with an Employer prior to
completing five years of Vesting Service shall be entitled to no benefits under
the Plan. A Participant who separates from service after completing five years
of Vesting Service shall be eligible to receive the benefit provided in Section
4.01 upon attainment of the Normal Retirement Age or the benefit provided in
Section 4.02 after attainment of the Early Retirement Age.

                                   ARTICLE IV
                                    BENEFITS

4.01     NORMAL RETIREMENT BENEFIT
         -------------------------

         (a) Each Participant shall upon retirement at his Normal Retirement Age
be entitled to a pension, payable monthly for his life, in the amount of (i)
minus (ii) minus (iii), where (i), (ii) and (iii) have the following meanings:

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                  (i)      2-1/2% of his Final Average Compensation, minus
                           2-1/12% of his Primary Social Security Benefit, the
                           difference multiplied by his Salaried Benefit Service
                           up to a maximum of 24 years;

                  (ii)     the monthly pension payable on a life only basis
                           under the Base Plan; and

                  (iii)    the monthly benefit payable on a life only basis
                           under the R.G. Barry Corporation Restoration Plan.

         (b) Notwithstanding any provision contained herein, each Original
Participant shall upon retirement at his Normal Retirement Age be entitled to a
pension, payable monthly for his life, in an amount equal to the greater of (i)
the benefit described in paragraph (a) of this Section 4.01 and (ii) 60% of his
Final Average Compensation reduced by (A) the monthly pension payable on a life
only basis under the Base Plan; and (B) 50% of his Primary Social Security
Benefit. For purposes of making benefit calculations under this Section 4.01(b),
"Compensation" shall have the meaning contained in Section 1.04 except that
"Compensation" shall include cash bonuses.

4.02     EARLY RETIREMENT BENEFIT
         ------------------------

         The monthly pension benefit payable to a Participant who is eligible
for an Early Retirement Benefit under Section 3.02 shall be an amount equal to
the Actuarial Equivalent of his Accrued Retirement Pension as of the date of his
early retirement.

4.03     LATE RETIREMENT BENEFIT
         -----------------------

         The monthly pension benefit payable to a Participant who is eligible
for a Late Retirement Benefit under Section 3.03 shall be an amount determined
in the same manner as set forth in Section 4.01, based on his Salaried Benefit
Service on the date his benefits commence.

4.04     REHIRES AND SUSPENSION OF BENEFITS
         ----------------------------------

         (a) If a Participant who has pension benefits in pay status under the
Plan is rehired as an employee of the Sponsor or an Affiliate, the benefits he
is receiving at the time of his rehire shall continue to be paid to such
Participant. Any Salaried Benefit Service earned after a Participant is rehired
shall not be considered for any purpose under the Plan.

         (b) Pension benefits under the Plan shall cease upon a Participant's
reemployment with a competitor of the Sponsor or an Affiliate. The determination
of whether a Participant has been reemployed by a competitor resulting in the
suspension of his benefits under the Plan shall be made in the sole discretion
of the Committee. Upon the Participant's subsequent retirement after the
cessation of benefits hereunder, his benefits under the Plan shall recommence
with an actuarial reduction for prior benefits paid.

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4.05     FORM OF BENEFIT
         ---------------

         A Participant's monthly benefit under this Plan shall be paid in the
single life annuity form, unless, at the time that he is eligible to receive a
distribution of such benefit, he has in effect an alternate form of payment with
respect to his benefit under the Base Plan. In such a situation, the
Participant's benefit under the Plan will be paid under such alternate form of
payment which shall be the Actuarial Equivalent of the single life annuity form.
Notwithstanding any provision of this Section 4.05, if the Actuarial Equivalent
lump sum value of a Participant's benefit is $3,500 or less ($5,000 or less for
Plan Years beginning after December 31, 1997), such benefit shall be paid to the
Participant in a single lump sum payment.

4.06     DEATH BENEFITS
         --------------

         (a)      In the event that a Participant dies after benefit payments
                  under this Plan have commenced, death benefits shall be
                  payable in accordance with the benefit form elected at the
                  Participant's retirement.

         (b)      If a Participant who is entitled to either an Early Retirement
                  Benefit under the Plan or a Deferred Vested Benefit under the
                  Plan has elected an alternate form of payment pursuant to
                  Section 4.05 and dies before his benefit payments under this
                  Plan begin, his designated Beneficiary shall be entitled to a
                  death benefit beginning on the date the deceased Participant's
                  benefit would have begun. The death benefit under this
                  paragraph (b) shall be equal in value to the benefit such
                  Beneficiary would have received under the Participant's
                  alternate election if the Participant had died on the day
                  after his benefit payments would have begun. In the discretion
                  of the Committee, Actuarial Equivalent benefit options may be
                  made available to such Beneficiary.

         (c)      If a Participant who is eligible for an Early Retirement
                  Benefit under the Base Plan dies while employed by an
                  Employer, but before he elects to receive such Early
                  Retirement Benefit, his surviving spouse, if any, shall be
                  entitled to a death benefit beginning on the first day of the
                  month following the Participant's date of death. The death
                  benefit under this paragraph (c) shall be equal to the same
                  benefit that would have been payable to such surviving spouse
                  if the Participant had elected, on the day before his death,
                  to receive his Early Retirement Benefit under this Plan in the
                  form of an immediate annuity for the life of the Participant
                  with a survivor annuity for the life of the spouse equal to
                  50% of the amount of the annuity payable during the life of
                  the Participant. No death benefit shall be payable under this
                  paragraph (c) if a Participant who is eligible for an Early
                  Retirement Benefit, but dies prior to electing to receive such
                  benefit, does not have a surviving spouse on the date of his
                  death.

         (d)      If a Participant, whose accrued benefit under the Base Plan is
                  fully vested, dies while employed by an Employer, his
                  surviving spouse, if any, shall be entitled to a death benefit
                  beginning on the date the deceased Participant's Deferred
                  Vested

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                  Benefit under the Plan would have begun. The death benefit
                  under this paragraph (d) shall be equal to the same benefit
                  that would have been payable to such surviving spouse if the
                  Participant had terminated his employment on the day before
                  his death and elected to receive his Deferred Vested Benefit
                  under this Plan in the form of an immediate annuity for the
                  life of the Participant with a survivor annuity for the life
                  of the spouse equal to 50% of the amount of the annuity
                  payable during the life of the Participant. No death benefit
                  shall be payable under this paragraph (d) if a Participant,
                  whose accrued benefit under the Base Plan is fully vested,
                  dies while employed by an Employer, but does not have a
                  surviving spouse on the date of his death.

         (e)      No death benefit shall be payable under this Plan with respect
                  to any Participant who does not have a fully vested accrued
                  benefit under the Base Plan at the time of his separation from
                  employment.

4.07     OFFSETS TO BENEFITS
         -------------------

         Notwithstanding any provision of the Plan to the contrary, the Employer
may, if the Committee in its sole and absolute discretion shall determine,
offset any amounts to be paid to a Participant or Beneficiary under the Plan
against any amounts which such Participant or Beneficiary may owe to the Sponsor
or an Affiliate.

4.08     WITHHOLDING AND DEDUCTIONS
         --------------------------

         All payments made by the Employer under the Plan to any Participant or
Beneficiary shall be subject to applicable withholding and to such other
deductions as shall at the time of such payment be required.

                                    ARTICLE V
                                  MISCELLANEOUS

5.01     ADMINISTRATION
         --------------

         The Plan shall be administered by the Committee which shall have the
sole and exclusive authority to interpret the Plan, and decide any disputes
which may arise with respect to Participants' rights under the terms of the
Plan. Claims for benefits under the Plan shall be subject to the claims and
appeal procedures contained in the Base Plan. The Committee shall be empowered
to obtain legal, accounting, and actuarial assistance in order to facilitate its
administration of the Plan and shall be entitled to rely on any reports,
opinions, or certificates provided by such professionals. All fees, salaries, or
expenses incurred by the Committee in connection with administering the Plan
shall be paid by the Sponsor. The Committee shall have absolute discretion in
carrying out its duties and responsibilities under this Section 5.01.

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5.02     INDEMNITY
         ---------

         The Sponsor shall indemnify the Committee (which, for purposes of this
Section 5.02 includes any employee of the Sponsor or an Affiliate to whom the
Committee has delegated administrative duties) against any and all claims,
losses, damages, and expenses, including counsel fees, incurred by the Committee
and any liability, including any amounts paid in settlement with the Sponsor's
approval, arising from the Committee's action or failure to act, except when the
same is determined to be attributable to the gross negligence or willful
misconduct of the Committee or any such employee. The right of indemnity
described in the preceding sentence shall be conditioned upon:

         (a) the timely receipt of notice by the Sponsor of any claim asserted
against the Committee, which notice, in the event of a lawsuit shall be given
within ten (10) days after receipt by the Committee of the complaint; and

         (b) the receipt by the Sponsor of an offer from the Committee of an
opportunity to participate in the settlement or defense of such claim.

5.03     ACTION BY COMMITTEE
         -------------------

         A majority of the Committee shall constitute a quorum and any action by
a majority vote of the Committee at a meeting, or, upon unanimous consent, in
writing without a meeting, shall constitute the action of the Committee.

5.04     NON-ALIENATION
         --------------

         No benefit payable at any time under the Plan shall be subject to the
debts or liabilities of a Participant or Beneficiary; nor shall any such benefit
be subject to the claims of creditors or others, nor to any action in bankruptcy
or other legal process, prior to actual payment to the Participant or
Beneficiary. Any attempt to alienate, sell, transfer, assign, pledge or
otherwise encumber any such benefit, whether presently or thereafter payable,
shall be void. No benefit under the Plan shall be subject in any manner to
alienation, sale, transfer, assignment, pledge, attachment, garnishment or
encumbrance of any kind.

5.05     UNSECURED AND UNFUNDED OBLIGATION
         ---------------------------------

         There shall be no contributions required or permitted to be made by any
Participant in the Plan. All payments of benefits shall be made directly from
the general assets of the Employer, and the right of a Participant or
Beneficiary to any payment of such benefits shall be solely that of an unsecured
general creditor of the Employer. No assets of the Employer shall be set aside,
earmarked, placed in trust or escrow or represented as being specifically set
aside to provide for Plan benefits. Notwithstanding any provision of this
Section 5.05, the Employer may, in its discretion, establish a trust to pay all
or a portion of the benefits payable under this Plan, provided that the assets
of such trust shall remain, at all time, the assets of the Employer subject to
the claims of its creditors.

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5.06     AMENDMENT AND TERMINATION
         -------------------------

         The Sponsor reserves the right at any time and from time to time to
terminate or amend this Plan, in any respect, by action of its Board of
Directors; provided, however, that no such termination or amendment shall
deprive a Participant of any benefits accrued under this Plan prior to such
termination or amendment.

5.07     MISCONDUCT
         ----------

         If the Committee determines that any Participant has engaged in an act
of dishonesty or malicious destruction which results in a financial loss to the
Sponsor or to an Affiliate or if he is convicted of a felony arising out of his
employment by the Sponsor or an Affiliate, all rights such Participant has
hereunder shall be forfeited. If a Participant shall, during the period of his
employment with the Sponsor or an Affiliate, or while he is receiving benefits
hereunder, engage directly or indirectly in competition with the Sponsor or an
Affiliate or in an occupation detrimental to the interests of the Sponsor or an
Affiliate, and if such activity continues after 30 days' notice by the Committee
to such Participant, the Participant shall be entitled to no further benefits
under this Plan.

5.08     NO GUARANTEE OF PLAN PERMANENCY
         -------------------------------

         This Plan does not contain any guarantees or provisions for continued
employment with the Employer nor is it guaranteed by the Sponsor to be a
permanent plan.

5.09     PAYMENT TO INCOMPETENT ETC.
         ---------------------------

         If any person entitled to receive any benefits hereunder is, in the
judgment of the Committee, legally, physically or mentally incapable of
personally receiving any distribution, the Committee may make distribution or
may instruct a trustee or insurance company to make distribution to such other
person, persons or institutions as, in the judgment of the Committee, are then
maintaining or who have custody of such distributee. As a condition to the
issuance of such instruction for the distribution to such other person or
institution, the Committee may require such person or institution to exhibit or
to secure an order, decree or judgment of a court of competent jurisdiction with
respect to the incapacity of the person who would otherwise be entitled to
receive the benefits.

5.10     GENDER
         ------

         Any reference in the Plan made in the masculine pronoun shall apply to
both men and women.

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5.11     GOVERNING LAW
         -------------

         This Plan shall be construed in accordance with and governed by the
laws of the State of Ohio, unless such laws are otherwise preempted by federal
law.

         IN WITNESS WHEREOF, R.G. BARRY CORPORATION, has caused this instrument
to be executed this 1st day of April, 1998.


                                         R.G. BARRY CORPORATION

                                         By      /s/ Harry Miller
                                           ------------------------------------
                                         Title   Vice President-Human Resources
                                              ---------------------------------

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