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                         SIXTEENTH AMENDMENT
                                 TO
                        ANGELICA CORPORATION
                      RETIREMENT SAVINGS PLAN


        WHEREAS, Angelica Corporation, a corporation duly organized and
existing under the laws of the State of Missouri ("Company"),
established and continues to maintain the Angelica Corporation
Retirement Savings Plan ("Plan"); and

        WHEREAS, effective September 1, 1998, the Company desires to amend
the Plan.

        NOW, THEREFORE, the Plan is hereby amended, effective September 1,
1998 unless otherwise noted, in the following respects:

                                 I.


        Section 1.11 of the Plan is hereby deleted in its entirety and the
following is substituted in lieu thereof:

             "1.11. "Employee" shall mean any person who is
        employed by any of the Participating Employers in any capacity who
        is normally employed to work a regular full-time work week (as
        determined by reference to the employment conditions in effect at
        the plant or other location at which such person is employed).
        The term "Employee" shall not include any person who is a member
        of a collective bargaining unit covered by an agreement between
        employee representatives and one or more Participating Employers
        if retirement benefits were the subject of good faith bargaining
        except to the extent such collective bargaining agreement provides
        for participation in the Plan.  For purposes of determining an
        individual's employment status and position, the job
        classification assigned to him by his employer shall be
        conclusive. "Employee" shall also not include any individual who
        is deemed to be a "leased employee" within the meaning of Code
        Section 414(n)."

                                     II.

        Section 4.4 of the Plan is hereby deleted in its entirety and the
following is substituted in lieu thereof:

             "4.4.     Company Matching Contributions.  For each Plan Year as
                       ------------------------------
        long as the Plan is in existence (but subject to the rights
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        reserved in the Company hereunder to amend or terminate the Plan),
        the Participating Employer shall make a Matching Contribution out
        of current or accumulated profits to the Trust Fund.  For Plan
        Years beginning before January 1, 1998, such Matching Contribution
        shall be an amount equal to one-fourth (1/4) of one percent (1%)
        for each one percent (1%), up to a maximum of six percent (6%), of
        the Base Pay of each Participant who had a salary deferral
        election in effect; provided, however, that the maximum amount of
        Matching Contributions which may be made for any one Plan Year
        based on the salary deferral of any one Participant shall be Six
        Hundred Dollars ($600.00).  For each Plan Year beginning on and
        after January 1, 1999, such Matching Contribution shall be an
        amount equal to thirty percent (30%) of one percent (1%) for each
        one percent (1%), up to a maximum of six percent (6%), of the Base
        Pay of each Participant who has a salary deferral election in
        effect for each such Plan Year.  Anything contained herein to the
        contrary notwithstanding, the Matching Contribution, if any, made
        on behalf of Participants who are covered by a collective
        bargaining agreement entered into with the Participating Employer
        may be different from the Matching Contributions for Participants
        who are not covered by a collective bargaining agreement and may
        be different among such Participants who are covered by the
        collective bargaining agreement."


                                  III.

        Article X of the Plan is hereby deleted in its entirety and the
following is substituted in lieu thereof:

                               "ARTICLE X
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                                  LOANS
                                  -----

             10.1 Upon the application of any Participant who is a Party
        in Interest, as defined in Section 3(14) of the Employee
        Retirement Income Security Act of 1974, as amended, the
        Administrator may direct the Trustee to make a loan or loans to
        such Participant.  With respect to a Participant who is a member
        of a collective bargaining unit, all loans must be in increments
        of $50 and must be in an amount not less than $500. With respect
        to all other Participants, all loans must be in increments of $100
        and must be in an amount not less than $600.  In no event shall
        the total

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        amount of any such loan or loans to any Participant plus interest
        thereon exceed the lesser of:

             (a)  $50,000, reduced by the excess (if any) of (i) the
        highest outstanding balance of loans of such Participant from the
        Plan during the one year period ending on the day before the date
        on which such loan is made, over (ii) the outstanding balance of
        loans of such Participant from the Plan on the date on which such
        loan is made, or

             (b)  The lesser of (i) one-half (1/2) of the aggregate
        amount which would be distributable to the Participant from his
        Account in the event of the termination of his employment with the
        Employing Companies, or (ii) the amount in such Participant's
        Account which is invested in the Interest Income Fund.

             An application for a loan must be submitted at least fifteen
        (15) days prior to the first day of the month during which the
        loan is intended to be disbursed and an approved loan shall be
        disbursed on or about the last business day of such month.  No
        Participant may borrow any sum hereunder so long as any previous
        loan to such Participant remains unpaid or, if paid, has been
        repaid for fewer than thirty (30) days.

             10.2 Interest shall be charged thereon at prime plus one-
        half percent.  Prime means the prime rate of interest being
        charged on comparable loans by Bankers Trust Company on the
        fifteenth day (or, if the fifteenth day is not a business day the
        next succeeding business day) of the month coincident with or next
        preceding the date of the loan to the Participant.

             10.3 A.   All such loans shall be evidenced by the
        Participant's promissory note which shall set forth the rate of
        interest to be charged thereon and the method and period of time
        over which the loan must be repaid.  The promissory note may be
        prepaid without penalty at any time.  In no event shall the
        repayment period exceed five (5) years unless the loan proceeds
        are used to acquire a dwelling unit which, within a reasonable
        time from making of the loan, is to be used as the principal
        residence of the Participant.  The Administrator shall require
        adequate security for any loan which security shall be the
        assignment by the Participant of no more than fifty percent (50%)
        of his Account which is invested in the Guaranteed Income Fund.
        In the event a promissory note or any installment thereunder is
        not paid when due, the Administrator shall give written notice to
        the Participant

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        sent to his last known address and, if the note or such delinquent
        installment is not paid within thirty (30) days from the date of
        such notice, the Trustee shall have the right to take recourse to
        the collateral securing the same, with full right to exercise all
        remedies granted a secured party under the applicable laws
        (including the Uniform Commercial Code) as if effect in the
        various jurisdiction(s) in which the collateral may be located.
        If said loan or loans are not entirely discharged as of the date
        of the Participant's death, Permanent Disability or other
        termination of employment, the Participant or his estate, as the
        case may be, shall remain liable for and continue to make payments
        on any balance due on said loan or loans.

             Any such loan shall be treated as a segregated investment
        for the Account of the borrowing Participant, the interest thereon
        shall be credited only to such Account (and not to the general
        earnings of the Fund), and for the purposes of allocating income
        of the Fund or any other appreciation or depreciation of the Fund
        for any Valuation Date, the Account of such borrowing Participant
        shall be treated as not including the unpaid amount of such
        borrowing (but for all other purposes of this Plan, including the
        provisions dealing with the allocation of contributions and the
        valuation of the corpus of the Trust, the amount of such borrowing
        shall continue to be treated as part of the borrowing
        Participant's Account, having a fair market value exactly equal to
        the unpaid principal balance thereof at any time when it is
        necessary to determine its fair market value).

             No distribution shall be made to any Participant who has
        borrowed from the Trust Fund or to any Beneficiary of any such
        Participant until the outstanding balance of the loan, including
        interest, has been paid out of the funds otherwise distributable.

             B.   The Participant shall, in writing, authorize the
        Participating Employer to withhold each pay period from the
        Participant's salary, an amount determined in accordance with the
        terms of the loan application executed by the Participant and
        approved by the Administrator.

             Payroll deductions shall commence with the first payroll
        following the effective date of the loan and the monthly payment
        for any month shall be the level monthly amount to fully amortize
        the outstanding balance of the loan over the remainder of the
        duration of the loan.  All payroll deduction payments, and any
        other payments received by the Participating Employer from the

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        Participant, shall be remitted by the Participating Employer to
        the Trustee for credit to the Participant's Account, as provided
        in A. above, as of the last day of the calendar month in which
        such payments are deducted by the Company, or received from the
        Participant.

             10.4 The Administrator shall prescribe rules and procedures
        for the administration of a loan program which shall be
        administered by the Administrator on a uniform and
        nondiscriminatory basis.

             10.5 A Participant who is not a member of a collective
        bargaining unit may be charged a loan processing fee in such
        amount and at such time as determined by the Administrator.  A
        Participant who is a member of a collective bargaining unit shall
        not be charged a loan processing fee."


        IN WITNESS WHEREOF, the Company has executed this Sixteenth
Amendment and affixed its corporate seal hereto by its duly authorized
officer on this 28th day of August, 1998.
                ----        ------

                          ANGELICA CORPORATION


                          By /s/ Don W. Hubble
                             --------------------------------------
                             Chairman of the Board,
                             President and Chief Executive Officer

[SEAL]

WITNESSED BY:

/s/ Jill Witter
--------------------------------------
Secretary

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