PERSONAL AND CONFIDENTIAL



VIA HAND DELIVERY

March 17, 1998


Mr. G. Walker Box
Chairman
Pluma, Inc.
P.O. Box 4431
Martinsville, Virginia  24112


Dear Walker:

I am pleased to present this engagement letter ("Letter") covering Norelli &
Company's ("Norelli") ongoing service to Pluma, Inc. ("Pluma", or the
"Company").


OBJECTIVES OF THE BOARD
-----------------------

Norelli understands the objectives of Pluma's Board of Directors in this
expanded engagement to include the following:


   o      assess the structure of Pluma's Board of Directors and its
          committees, identify any conflicts or potential conflicts of interest
          of its members, if any, which might impair their ability to
          objectively carry out their fiduciary duties or create a public
          perception of impropriety, and evaluate the depth and breadth of
          Pluma's Board members experience in the context of what is
          required and should be expected from the Board to enable it to
          successfully fulfill its fiduciary responsibility to the Company and
          its shareholders;



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                                                               Mr. G. Walker Box
                                                                  March 17, 1998
                                                                          Page 2


   o      assess the structure of Pluma's management team and evaluate the
          depth and breadth of its experience and abilities to execute
          successfully the Company's strategic plan;

   o      to maintain an appropriate amount of positive tension between the
          Board and management without creating management paralysis or
          undermining the role and authority of the chief executive officer;

   o      to develop a Company retirement policy that will be used for all
          present and future Company executives and specifically, to
          facility the orderly retirement of George Wade;

   o      to evaluate the Company's budgets and forecasts to insure their
          accuracy and sufficiency to facility proper decision making; and

   o      to recommend changes that may be necessary to insure that the
          Company meets its objectives.


SCOPE OF ENGAGEMENT
-------------------

In addressing the above mentioned objectives, I expect the scope of Norelli's
work to include the activities noted below:

   o      continuing confidential personal discussions with all members of
          Pluma's Board of Directors;

   o      reviewing current practices and corporate governance policies of
          other public companies similar to Pluma;

   o      attending meetings with senior management that will be necessary
          to identify short term operating and sales issues;

   o      attending meetings of the Special Committee ("Committee") of
          Pluma's Board of Directors as needed to report to the Committee


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                                                               Mr. G. Walker Box
                                                                  March 17, 1998
                                                                          Page 3


          on the progress of the engagement, to obtain necessary information
          and to obtain the perspective of the Committee;

   o      further assessment of management, including review of personnel
          files and further interviews;

   o      assistance as needed to refine second and third quarter forecasts
          and prioritize specific action plans for the next two quarters;

   o      interviews with other Company employees as determined by
          Norelli and the Company's senior management;

   o      assessment of the Stardust and FL Robinson acquisitions and their
          assimilation into Pluma's overall operations; and

   o      drafting and presentation of the report to the Board.

TIME FRAME, PROFESSIONAL FEE, INVOLVEMENT OF OTHER NORELLI STAFF
----------------------------------------------------------------

I will personally attend the Committee meetings, monthly management meetings,
visit the acquisitions at least once, and prepare the specific organizational
recommendations. I will also continue one-on-one discussions with both you and
Duke, and will conduct further interviews with others, such as Forrest, Doug,
and Gus. I do expect to be assisted on some of the aforementioned tasks by John
Magee, and to a lesser extent, Mason Elder. With your approval, we will begin
right away. We expect completion of most of the activities by the end of June,
but we will make interim reports to the Board as necessary.

I estimate our professional fee for the engagement as outlined to be Forty Six
Thousand Dollars ($46,000.00). Any additional involvement I have in "official"
Board activities (Board meetings, committee meetings, shareholder meeting, Board
conference calls, etc.) would be covered by the Company's standard Board
compensation policy. Normal terms are to invoice monthly for progress during the
month with payment due upon receipt. Out-of-pocket expenses are billed at cost.


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                                                               Mr. G. Walker Box
                                                                  March 17, 1998
                                                                          Page 4



We appreciate the confidence you and the Board continue to show in me and
Norelli & Company. We care about Pluma and are eager to continue to be a value
adding resource at an important time for the Company.

Sincerely,




Ronald A. Norelli



ACCEPTED ON BEHALF OF PLUMA, INC.




BY_____________________________________                 DATE  ________________