Document:

<PAGE>

                                                                   EXHIBIT 10.11

                                SOUTHERN STATES

                         SUPPLEMENTAL RETIREMENT PLAN

                   (As Adopted Effective November 11, 1987)

                                     Including:

                                     1.  First Amendment
                                              (Effective July 1, 1989)
                                     2.  Second Amendment
                                              (Effective July 1, 1989)
                                     3.  Third Amendment
                                              (Effective January 1, 1993)
                                     4.  Fourth Amendment
                                              (Effective July 1, 1995)
<PAGE>

                               TABLE OF CONTENTS
                               -----------------
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                                   ARTICLE I
                              Definition of Terms
                              -------------------

1.1    Administrative Committee............................................   1
1.2    Administrator.......................................................   1
1.3    Affiliate...........................................................   1
1.4    Beneficiary.........................................................   1
1.5    Board...............................................................   1
1.6    Code................................................................   1
1.7    Corporation.........................................................   1
1.8    Eligible Employee...................................................   1
1.9    Employee............................................................   1
1.10   Participant.........................................................   1
1.11   Plan................................................................   1
1.12   Plan Year...........................................................   1
1.12A  Rabbi Trust.........................................................   2
1.13   Retirement Plan.....................................................   2
1.14   Supplemental Death Benefit..........................................   2
1.15   Supplemental Retirement Benefit.....................................   2

                                  ARTICLE II
                                  ----------
                         Eligibility and Participation
                         -----------------------------

2.1    Eligibility and Date of Participation...............................   2
2.2    Length of Participation.............................................   2

                                  ARTICLE III
                                  -----------
                        Supplemental Retirement Benefit
                        -------------------------------

3.1    Supplemental Retirement Benefit.....................................   2

                                  ARTICLE IV
                                  ----------
                                 Death Benefit
                                 -------------

4.1    Death after Benefit Commencement....................................   3
4.2    Death before Benefit Commencement...................................   3
4.3    Supplemental Death Benefit..........................................   3
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                                      -ii-
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                                   ARTICLE V
                                   ---------
                                    Vesting
                                    -------

5.1    Vesting Generally...................................................   3
5.2    Forfeiture of Benefits..............................................   4
5.3    No Restoration of Forfeited Benefits................................   5

                                  ARTICLE VI
                                  ----------
                              Payment of Benefits
                              -------------------

6.1    Time and Manner for Payment of Benefits.............................  5
6.2    Discretionary Cash-Out by Lump Sum Payment..........................  5
6.3    Benefit Determination and Payment Procedure.........................  5
6.4    Payments to Minors and Incompetents.................................  6
6.5    Distribution of Benefit When Distributee Cannot Be Located..........  6
6.6    Claims Procedure....................................................  6

                                  ARTICLE VII
                                  -----------
                                    Funding
                                    -------
7.1    Funding.............................................................   7
7.2    Use of Rabbi Trust Permitted........................................   7

                                 ARTICLE VIII
                                 ------------
                                  Fiduciaries
                                  -----------

8.1    Fiduciaries and Duties and Responsibilities.........................   7
8.2    Limitation of Duties and Responsibilities of Fiduciaries............   7
8.3    Service by Fiduciaries in More Than One Capacity....................   8
8.4    Allocation or Delegation of Duties and Responsibilities by
       Fiduciaries.........................................................   8
8.5    Assistance and Consultation.........................................   8
8.6    Compensation and Expenses...........................................   8
8.7    Indemnification.....................................................   8

                                  ARTICLE IX
                                  ----------
                              Plan Administrator
                              ------------------

9.1    Appointment of Plan Administrator...................................   8
9.2    Corporation as Plan Administrator...................................   9
9.3    Procedure if a Committee............................................   9
9.4    Action by Majority Vote if a Committee..............................   9
9.5    Appointment of Successors...........................................   9
9.6    Duties and Responsibilities of Plan Administrator...................   9
9.7    Power and Authority.................................................   9
9.8    Availability of Records.............................................   9
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                                     -iii-
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9.9    No Action by Plan Administrator with Respect to Own Benefit.........   9
9.10   Limitation on Power and Authority...................................   9

                                   ARTICLE X
                                   ---------
                           Administrative Committee
                           ------------------------

10.1   Makeup and Appointment of Administrative Committee..................  10
10.2   Administrative Committee Procedures.................................  10
10.3   Powers and Authority................................................  10
10.4   Plan Interpretation.................................................  10
10.5   Records.............................................................  10
10.6   No Action with Respect to Own Benefit...............................  10
10.7   Necessary Information...............................................  11

                                  ARTICLE XI
                                  ----------
                       Amendment and Termination of Plan
                       ---------------------------------

11.1   Amendment or Termination of the Plan................................  11

                                  ARTICLE XII
                                  -----------
                                 Miscellaneous
                                 -------------

12.1   Non-assignability...................................................  11
12.2   Right to Require Information and Reliance Thereon...................  11
12.3   Notices and Elections...............................................  11
12.4   Delegation of Authority.............................................  12
12.5   Service of Process..................................................  12
12.6   Governing Law.......................................................  12
12.7   Binding Effect......................................................  12
12.8   Severability........................................................  12
12.9   No Effect on Employment Agreement...................................  12
12.10  Gender and Number...................................................  12
12.11  Titles and Captions.................................................  12
12.12  Construction........................................................  12
</TABLE>

                                     -iv-
<PAGE>

        This SUPPLEMENTAL RETIREMENT PLAN (hereinafter the "Plan") is adopted
the ___ day of November, 1987 and is effective November 11, 1987 (the "Effective
Date" of the Plan) by SOUTHERN STATES COOPERATIVE, INCORPORATED, a Virginia
corporation (hereinafter called the "Corporation");

                              W I T N E S S E T H:
                              - - - - - - - - - -
        WHEREAS, the Corporation desires to retain the services of certain top
management employees and deems it appropriate to provide for additional
supplemental retirement income for such employees pursuant to the terms of the
Plan in consideration of their services and as an incentive to remain in the
employ of the Corporation;

        NOW, THEREFORE, WITNESSETH:

                                   ARTICLE I
                                   ---------
                              Definition of Terms
                              -------------------

        The following words and terms as used in this Plan shall have the
meaning set forth below, unless a different meaning is clearly required by the
context:

        1.1    "Administrative Committee": The Administrative Committee provided
for in Article X.

        1.2    "Administrator": The plan administrator provided for in Article
IX hereof.

        1.3    "Affiliate": Any subsidiary, affiliate or other related business
entity (whether by management contract or ownership) to the Corporation.

        1.4    "Beneficiary": The person or persons entitled under the
Retirement Plan to receive any benefits payable thereunder after the
Participant's death.

        1.5    "Board": The present and any succeeding Board of Directors of the
Corporation.

        1.6    "Code": The Internal Revenue Code of 1986, as the same may be
amended from time to time, or the corresponding section of any subsequent
Internal Revenue Code, and, to the extent not inconsistent therewith,
regulations issued thereunder.

        1.7    "Corporation": Southern States Cooperative, Incorporated, a
Virginia corporation.

        1.8    "Eligible Employee": An Employee who is a participant in the
Retirement Plan, who is a member of the Corporation's management group and who
is designated as an Eligible Employee by the Chief Executive Officer of the
Corporation.

        1.9    "Employee": An individual who is employed in the service of the
Corporation as a common law employee.

        1.10   "Participant": An Eligible Employee qualified to participate in
the Plan, for so long as he is considered a Participant, as provided in Article
II hereof.

        1.11   "Plan": This document, as contained herein or duly amended, which
shall be known as the "Southern States Supplemental Retirement Plan".

        1.12   "Plan Year": The calendar year.

        1.12A  "Rabbi Trust": A trust fund described in paragraph 7.2 and
established or maintained for the Plan.
<PAGE>

        1.13   "Retirement Plan": The Retirement Plan for Employees of Southern
States, a defined benefit pension plan maintained by the Corporation.

        1.14   "Supplemental Death Benefit": The Supplemental Pre-Retirement
Spouse's Death Benefit or the Supplemental Alternate Death Benefit due the
Beneficiary of a Participant under the Plan, as determined pursuant to Article
IV hereof.

        1.15   "Supplemental Retirement Benefit": The amount due a Participant
or his Beneficiary under the Plan, as determined pursuant to Article III hereof.

                                  ARTICLE II
                                  ----------
                         Eligibility and Participation
                         -----------------------------

        2.1    Eligibility and Date of Participation. Each Eligible Employee
               -------------------------------------
shall be a Participant in the Plan commencing with the date he first becomes, or
again becomes, an Eligible Employee.

        2.2    Length of Participation. Each Eligible Employee who becomes a
               -----------------------
Participant shall be or remain a Participant for so long as he is entitled to
future benefits under the terms of the Plan.

                                  ARTICLE III
                                  -----------
                        Supplemental Retirement Benefit
                        -------------------------------

        3.1    Supplemental Retirement Benefit. Subject to the terms and
               -------------------------------
conditions set forth herein, a Participant who retires under the Retirement Plan
as an Eligible Employee and who becomes entitled to the payment of benefits
under the Retirement Plan shall be entitled to a Supplemental Retirement
Benefit, generally expressed as a benefit payable monthly for the life of the
Participant and commencing at the applicable time provided in paragraph 4.1 of
the Retirement Plan, equal to the excess, if any, of:

              (i)   The amount of the Participant's accrued benefit under the
        Retirement Plan, determined without regard to the limitations on
        contributions and benefits imposed by Section 415 of the Code and the
        limitation on compensation imposed by Section 401(a)(17) of the Code,
        over

              (ii)  The amount of the Participant's accrued benefit under the
        Retirement Plan.

To the extent that the Participant's accrued benefit payable under the
Retirement Plan is increased at any time due to increases in limitations on
contributions and benefits imposed by Section 415 of the Code or to increases in
the compensation limit imposed by Section 401(a)(17) of the Code, whether by
statute, regulations, action of the Secretary of Treasury or his delegate or
otherwise, the Participant's Supplemental Retirement Benefit shall be reduced
correspondingly.

                                      -2-
<PAGE>

                                  ARTICLE IV
                                  ----------
                                 Death Benefit
                                 -------------

     4.1  Death after Benefit Commencement. If a Participant dies after his
          --------------------------------
Supplemental Retirement Benefit commences to be paid, the only benefits payable
under the Plan to his Beneficiary after his death shall be those, if any,
provided under the form of payment being made to him at his death.

     4.2  Death before Benefit Commencement. If a Participant dies before his
          ---------------------------------
Supplemental Retirement Benefit commences to be paid, the only benefit payable
under the Plan with respect to him shall be the Supplemental Death Benefit, if
any, provided in paragraph 4.3.

     4.3  Supplemental Death Benefit. Subject to the terms and conditions set
          --------------------------
forth herein, if a Participant dies before his Supplemental Retirement Benefit
commences to be paid and either while an Eligible Employee or after retiring as
an Eligible Employee, his Beneficiary shall be entitled to a Supplemental Death
Benefit as follows:

          (i)   If his Beneficiary is entitled to receive a pre-retirement
     spouse's death benefit under the Retirement Plan, such Beneficiary shall be
     entitled to receive as a Supplemental Pre-Retirement Spouse's Death Benefit
     under the Plan an amount equal to the excess, if any, of:

               (A)  The amount of such pre-retirement spouse's death benefit
          under the Retirement Plan, determined without regard to the
          limitations on contributions and benefits imposed by Section 415 of
          the Code and without regard to the limitation on compensation imposed
          by Section 401(a)(17) of the Code, over

               (B)  The actual amount of such pre-retirement spouse's death
          benefit under the Retirement Plan.

          (ii) If his Beneficiary is entitled to receive an alternate death
     benefit under the Retirement Plan, such Beneficiary shall be entitled to
     receive as a Supplemental Alternate Death Benefit under the Plan an amount
     equal to the excess, if any, of:

               (A)  The amount of such alternate death benefit under the
          Retirement Plan, determined without regard to the limitations on
          contributions and benefits imposed by Section 415 of the Code and the
          limitation on compensation imposed by Section 401(a)(17) of the Code,
          over

               (B)  The actual amount of such alternate death benefit under the
          Retirement Plan.

To the extent that the Participant's accrued benefit or his pre-retirement
spouse's death benefit or alternate death benefit payable under the Retirement
Plan is increased at any time due to increases in the limitations on
contributions and benefits imposed by Section 415 of the Code or in the
limitation on compensation imposed by Section 401(a)(17) of the Code, whether by
statute, regulations, action of the Secretary of Treasury or his delegate or
otherwise, the Participant's Supplemental Death Benefit shall be reduced
correspondingly.

                                   ARTICLE V
                                   ---------
                                    Vesting
                                    -------

     5.1  Vesting Generally. Subject to the forfeiture events described in
          -----------------
paragraph 5.2 hereof, a Participant's Supplemental Retirement Benefit or
Supplemental Death Benefit, as the case may be, shall be vested at the time of
his retirement as an Eligible Employee under the Retirement Plan or death while
an Eligible Employee, but only to the extent, and determined in the manner, that
such Participant has a vested and non-forfeitable right to his employer-derived
accrued benefit under the Retirement Plan.

                                      -3-
<PAGE>

     5.2     Forfeiture of Benefits.
             ----------------------

     5.2(a)  Notwithstanding any contrary provision hereof, the Supplemental
Retirement Benefit and the Supplemental Death Benefit with respect to a
Participant shall be forfeited upon the occurrence of any the following events
(as defined in subparagraph 5.2(b)):

             (i)    The Participant's voluntary termination of employment with
     the Corporation under circumstances which do not constitute retirement for
     purposes of the Retirement Plan;

             (ii)   The Participant's termination of employment with the
     Corporation for "cause";

             (iii)  The Participant's entering into "competition", or his
     making an "unauthorized disclosure of confidential information", after his
     retirement from the employment of the Corporation, in which case all
     payments to or with respect to the Participant shall cease and all payments
     made to the Participant or his Beneficiary under the Plan since the
     occurrence of such event of forfeiture shall be returned to the
     Corporation; or

             (iv)  The discovery after the Participant's retirement from the
     employment of the Corporation or death of "cause" for his termination or of
     his "unauthorized disclosure of confidential information" prior to his
     retirement or death before retirement, in which case all payments under the
     Plan to or with respect to the Participant shall cease and all payments
     previously made to the Participant or his Beneficiary under the Plan shall
     be returned to the Corporation.

     All determinations hereunder shall be made by the Administrative Committee.

     5.2(b)     For purposes of this paragraph:

             (i)   "Cause" means the willful gross misconduct of the Participant
     which is materially injurious to the Corporation or any Affiliate, the
     unauthorized disclosure of confidential information, or the engaging in
     competition by the Participant.

             (ii)  "Competition" means engaging by the Participant, without the
     written consent of the Board or a person authorized thereby, in a business
     as a more than one percent (1%) stockholder, an officer, a director, an
     employee, a partner, an agent, a consultant, or any other individual or
     representative capacity (unless the Participant's duties, responsibilities,
     and activities, including supervisory activities, for or on behalf of such
     business, are not related in any way to such "competitive activity") if it
     involves:

                 (A)  Engaging in, or entering into services or providing advice
             pertaining to, any line of business that the Corporation or any
             Affiliate actively conducts or develops in competition with the
             Corporation or any Affiliate in the same geographic area as such
             line of business is then conducted, or

                 (B)  Employing or soliciting for employment any employees of
             the Corporation or any Affiliate.

             (iii) "Unauthorized disclosure of confidential information" means
     the disclosure by the Participant, without the written consent of the Board
     or a person authorized thereby, to any person other than as required by law
     or court order, or other than to an authorized employee of the Corporation
     or an Affiliate, or to a person to whom disclosure is necessary or
     appropriate in connection with the performance by the Participant of his
     duties as an employee or director of the Corporation or an Affiliate
     (including, but not limited to, disclosure to the Corporation's or an
     Affiliate's outside counsel, accountants or bankers of financial data
     properly requested by such persons and approved by an authorized officer of
     the Corporation), any confidential information of the Corporation or any
     Affiliate with respect to any of the products, services, customers,
     suppliers, marketing techniques, methods or future plans of the Corporation
     or any Affiliate; provided, however, that:

                                      -4-
<PAGE>

                  (A)  Confidential information shall not include any
           information known generally to the public (other than as a result of
           unauthorized disclosure by the Participant) or any information of a
           type not otherwise considered confidential by persons engaged in the
           same business or a business similar to that conducted by the
           Corporation or any Affiliate; and

                  (B)  The Participant shall be allowed to disclose confidential
           information to his attorney solely for the purpose of ascertaining
           whether such information is confidential within the intent of the
           Plan, but only so long as the Participant both discloses to his
           attorney the provisions of this paragraph and agrees not to waive the
           attorney-client privilege with respect thereto.

   5.3     No Restoration of Forfeited Benefits. There shall be no restoration
           ------------------------------------
of forfeited benefits. If a Participant incurs a forfeiture and subsequently is
an Eligible Employee and a Participant, his Supplemental Retirement Benefit and
Supplemental Death Benefit shall be determined as though the Retirement Plan
provided for accrual of benefits without regard to his service credited and
compensation earned prior to such forfeiture.

                                  ARTICLE VI
                                  ----------
                              Payment of Benefits
                              -------------------

   6.1     Time and Manner for Payment of Benefits.
           ---------------------------------------

   6.1(a)  A Participant's Supplemental Retirement Benefit, or the Supplemental
Death Benefit with respect to a Participant, shall be payable commencing at the
time that the Participant's accrued benefit or comparable death benefit (other
than his accumulated contributions or contribution refund death benefit)
commences to be paid under the Retirement Plan.

   6.1(b)  Subject to the forfeiture events of paragraph 5.2, benefits shall be
payable to a Participant and, where applicable, the Participant's Beneficiary in
the manner elected by the Participant (or where applicable, the Beneficiary).
Such election shall be subject to all the same options, conditions, privileges,
actuarial equivalent or value factors, restrictions, benefit suspensions and
other payment provisions as are applicable to the benefits payable under the
Retirement Plan to the Participant or his Beneficiary, provided, however, that
no spousal consent shall be required for any election under the Plan.

   6.2     Discretionary Cash-Out by Lump Sum Payment. In the sole discretion of
           ------------------------------------------
the Administrative Committee, a lump sum payment of benefits, determined on the
basis of applicable actuarial equivalent and value factors under the Retirement
Plan, may be made to a Participant or his Beneficiary if either (i) the entire
actuarial value of the benefit is not over $10,000 or (ii) the monthly payment
amount is not over $100.

   6.3     Benefit Determination and Payment Procedure. The Administrative
           -------------------------------------------
Committee shall make all determinations concerning eligibility for benefits
under the Plan, the time or terms of payment, and the form or manner of payment
to the Participant (or the Participant's Beneficiary in the event of the death
of the Participant). The Administrative Committee shall promptly notify the
Corporation and, where payments are to be made from a Rabbi Trust, the trustee
thereof, of each such determination that benefit payments are due and provide to
the Corporation or trustee all other information necessary to allow the
Corporation or trustee to carry out said determination, whereupon the
Corporation or trustee shall pay such benefits in accordance with the
Administrative Committee's determination.

   6.4     Payments to Minors and Incompetents. If a Participant or Beneficiary
           -----------------------------------
entitled to receive any benefits hereunder is a minor or is adjudged to be
legally incapable of giving valid receipt and discharge for such benefits, or is
deemed so by the Administrative Committee, benefits will be paid to such person
as the Administrative Committee may designate for the benefit of such
Participant or Beneficiary. Such payments shall be considered a payment to such
Participant or Beneficiary and shall, to the extent made, be deemed a complete
discharge of any liability for such payments under the Plan.

                                      -5-
<PAGE>

   6.5     Distribution of Benefit When Distributee Cannot Be Located. The
           ----------------------------------------------------------
Administrator shall make all reasonable attempts to determine the identity
and/or whereabouts of a Participant or his Beneficiary entitled to benefits
under the Plan, including the mailing by certified mail of a notice to the last
known address shown on the Corporation's or the Administrator's records. If the
Administrator is unable to locate such a person entitled to benefits hereunder,
or if there has been no claim made for such benefits, the Corporation shall
continue to hold the benefit due such person, subject to any applicable statute
of escheats.

   6.6     Claims Procedure.
           ----------------

   6.6(a)  A Participant or Beneficiary (the "claimant") shall have the right to
request any benefit under the Plan by filing a written claim for any such
benefit with the Administrator on a form provided by the Administrator for such
purpose. The Administrator shall give such claim due consideration and shall
either approve or deny it in whole or in part. Within ninety (90) days following
receipt of such claim by the Administrator, notice of any denial thereof, in
whole or in part, shall be delivered to, and a receipt therefor shall be
obtained from, the claimant or his duly authorized representative or such notice
of denial shall be sent by registered mail to the claimant, or his duly
authorized representative, at the address shown on the claim form or such
individual's last known address. The aforesaid ninety (90) day response period
may be extended to one hundred eighty (180) days after receipt of the claimant's
claim if special circumstances exist and if written notice of the extension to
one hundred eighty (180) days indicating the special circumstances involved and
the date by which a decision is expected to be made is furnished to the claimant
within ninety (90) days after receipt of the claimant's claim. Such notice of
denial shall be written in a manner calculated to be understood by the claimant
and shall:

           (i)   Set forth a specific reason or reasons for the denial,

           (ii)  Make specific reference to the pertinent provisions of the
   Plan on which any denial of benefits is based,

           (iii) Describe any additional material or information necessary for
   the claimant to perfect the claim and explain why such material or
   information is necessary, and

           (iv)  Explain the claim review procedure of subparagraph 6.6(b).

If such notice of denial is not provided to the claimant within the applicable
ninety (90) day or one hundred eighty (180) day period, the claimant's claim
shall be considered denied for purposes of the claim review procedure of
subparagraph 6.6(b).

   6.6(b)  A Participant or Beneficiary whose claim filed pursuant to
subparagraph 6.6(a) has been denied, in whole or in part, may, within sixty (60)
days following receipt of notice of such denial, or following the expiration of
the applicable period provided for in subparagraph 6.6(a) for notifying the
claimant of the decision on the claim if no notice of denial is provided, make
written application to the Administrative Committee for a review of such claim,
which application shall be filed with the Administrator. For purposes of such
review, the claimant or his duly authorized representative may review Plan
documents pertinent to such claim and may submit to the Administrative Committee
written issues and comments respecting such claim. The Administrative Committee
may schedule and hold a hearing. The Administrative Committee shall make a full
and fair review of any denial of a claim for benefits and issue its decision
thereon promptly, but no later than sixty (60) days after receipt by the
Administrator of the claimant's request for review, or one hundred twenty (120)
days after such receipt if a hearing is to be held or if other special
circumstances exist and if written notice of the extension to one hundred twenty
(120) days is furnished to the claimant within sixty (60) days after the receipt
of the claimant's request for a review. Such decision shall be in writing, shall
be delivered by the Administrator to the claimant and shall:

           (i)   Include specific reasons for the decision,

           (ii)  Be written in a manner calculated to be understood by the
   claimant, and

           (iii) Contain specific references to the pertinent Plan provisions on
   which the decision is based.

                                      -6-
<PAGE>

The Administrative Committee's decision made in good faith shall be final.

                                  ARTICLE VII
                                  -----------
                                    Funding
                                    -------
   7.1     Funding.
           -------

   7.1(a)  The undertaking to pay the benefits hereunder shall be an unfunded
obligation payable solely from the general assets of the Corporation and subject
to the claims of the Corporation's creditors.

   7.1(b)  Except as provided in the Rabbi Trust established as permitted in
paragraph 7.2, nothing contained in the Plan and no action taken pursuant to the
provisions of the Plan shall create or be construed to create a trust of any
kind of a fiduciary relationship between the Corporation and the Participant or
his Beneficiary or any other person or to give any Participant or Beneficiary
any right, title or interest in any specific asset or assets of the Corporation.
To the extent that any person acquires a right to receive payments from the
Corporation under the Plan, such rights shall be no greater than the right of
any unsecured general creditor of the Corporation.

   7.2     Use of Rabbi Trust Permitted. Notwithstanding any provision herein to
           ----------------------------
the contrary, the Plan Sponsor may in its sole discretion elect to establish and
fund a Rabbi Trust for the purpose of providing benefits under the Plan.

                                 ARTICLE VIII
                                 ------------
                                  Fiduciaries
                                  -----------

   8.1     Fiduciaries and Duties and Responsibilities. Authority to control and
           -------------------------------------------
manage the operation and administration of the Plan shall be vested in the
following, who, together with their membership, if any, shall be the Fiduciaries
under the Plan with those powers, duties, and responsibilities specifically
allocated to them by the Plan:

   8.1(a)  Plan Administrator - The Plan Administrator named and serving as
           ------------------
provided in ARTICLE IX hereof.

   8.1(b)  Administrative Committee - The Administrative Committee appointed and
           ------------------------
serving as provided in ARTICLE X hereof.

   8.2     Limitation of Duties and Responsibilities of Fiduciaries. The duties
           --------------------------------------------------------
and responsibilities, and any liability therefor, of the Fiduciaries provided
for in paragraph 8.1 shall be severally limited to the duties and
responsibilities specifically allocated to each such Fiduciary in accordance
with the terms of the Plan, and there shall be no joint duty, responsibility, or
liability among any such groups of Fiduciaries in the control and management of
the operation and administration of the Plan.

   8.3     Service by Fiduciaries in More Than One Capacity. Any person or group
           ------------------------------------------------
of persons may serve in more than one Fiduciary capacity with respect to the
Plan.

   8.4     Allocation or Delegation of Duties and Responsibilities by
           ----------------------------------------------------------
Fiduciaries. By written agreement filed with the Administrator and the
-----------
Administrative Committee, any duties and responsibilities of any Fiduciary may
be allocated among Fiduciaries or may be delegated to persons other than
Fiduciaries, provided, however, that any delegation by an Administrator which is
not either the Corporation or the Administrative Committee for which the annual
cost is in excess of any amount set by the Administrative Committee shall be
subject to the advice and consent of the Administrative Committee. Any written
agreement shall specifically set forth the duties and responsibilities so
allocated or delegated, shall contain reasonable provisions for termination, and
shall be executed by the parties thereto.

                                      -7-
<PAGE>

   8.5     Assistance and Consultation. A Fiduciary, and any delegate named
           ---------------------------
pursuant to paragraph 8.4, may engage agents to assist in its duties and may
consult with counsel, who may be counsel for the Corporation, with respect to
any matter affecting the Plan or its obligations and responsibilities hereunder,
or with respect to any action or proceeding affecting the Plan.

   8.6     Compensation and Expenses. All compensation and expenses of the
           -------------------------
Fiduciaries and their agents and counsel shall be paid or reimbursed by the
Corporation; provided, however, that:

           (i)   The engagement of such agents by an Administrator which is not
   either the Corporation or the Administrative Committee for which the annual
   cost is in excess of any amount set by the Administrative Committee shall be
   subject to the advice and consent of the Administrative Committee, and

           (ii)  Each person or committeeman serving as a Fiduciary shall serve
   without compensation for such service unless otherwise determined by the
   Corporation.

   8.7     Indemnification. The Corporation shall indemnify and hold harmless
           ---------------
any individual who is an employee of the Corporation and who is a Fiduciary or a
member of a Fiduciary under the Plan and any other individual who is an employee
of the Corporation and to whom duties of a Fiduciary are delegated pursuant to
paragraph 8.4, to the extent permitted by law, from and against any liability,
loss, cost or expense arising from their good faith action or inaction in
connection with their responsibilities under the Plan.

                                  ARTICLE IX
                                  ----------
                              Plan Administrator
                              ------------------

   9.1     Appointment of Plan Administrator. The Corporation may appoint one or
           ---------------------------------
more persons to serve as the Plan Administrator (the "Administrator") for the
purpose of carrying out the duties specifically imposed on the Administrator by
the Plan and the Code. In the event more than one person is appointed, the
persons shall form a committee for the purpose of functioning as the
Administrator of the Plan. The person or committeemen serving as Administrator
shall serve for indefinite terms at the pleasure of the Corporation, and may, by
thirty (30) days prior written notice to the Corporation, terminate such
appointment. The Corporation shall inform the Administrative Committee of any
such appointment or termination, and the Administrative Committee may assume
that any person appointed continues in office until notified of any change.

   9.2     Corporation as Plan Administrator. In the event that no Administrator
           ---------------------------------
is appointed or in office pursuant to paragraph 9.1, the Corporation shall be
the Administrator.

   9.3     Procedure if a Committee. If the Administrator is a committee, it
           ------------------------
shall appoint from its members a Chairman and a Secretary. The Secretary shall
keep records as may be necessary of the acts and resolutions of such committee
and be prepared to furnish reports thereof to the Administrative Committee and
the Corporation. Except as otherwise provided, all instruments executed on
behalf of such committee may be executed by its Chairman or Secretary, and the
Administrative Committee may assume that such committee, its Chairman or
Secretary are the persons who were last designated as such to them in writing by
the Corporation or its Chairman or Secretary.

   9.4     Action by Majority Vote if a Committee. If the Administrator is a
           --------------------------------------
committee, its action in all matters, questions and decisions shall be
determined by a majority vote of its members qualified to act thereon. They may
meet informally or take any action without the necessity of meeting as a group.

   9.5     Appointment of Successors. Upon the death, resignation or removal of
           -------------------------
a person serving as, or on a committee which is, the Administrator, the
Corporation may, but need not, appoint a successor.

                                      -8-
<PAGE>

   9.6     Duties and Responsibilities of Plan Administrator. The Administrator
           -------------------------------------------------
shall have the following duties and responsibilities under the Plan:

   9.6(a)  The Administrator shall be responsible for the fulfillment of all
relevant reporting and disclosure requirements set forth in the Plan and the
Code, the distribution thereof to Participants and their Beneficiaries and the
filing thereof with the appropriate governmental officials and agencies.

   9.6(b)  The Administrator shall maintain and retain necessary records
respecting its administration of the Plan and matters upon which disclosure is
required under the Plan and the Code.

   9.6(c)  The Administrator shall make any elections for the Plan required to
be made by it under the Plan and the Code, upon advice and consent of the
Administrative Committee where the Corporation or the Administrative Committee
is not the Administrator.

   9.7     Power and Authority. The Administrator is hereby vested with all the
           -------------------
power and authority necessary in order to carry out its duties and
responsibilities in connection with the administration of the Plan imposed
hereunder and as may from time to time be granted by the Administrative
Committee. For such purpose, the Administrator shall have the power to adopt
rules and regulations consistent with the terms of the Plan.

   9.8     Availability of Records. The Corporation and the Administrative
           -----------------------
Committee shall, at the request of the Administrator, make available necessary
records or other information they possess which may be required by the
Administrator in order to carry out its duties hereunder.

   9.9     No Action by Plan Administrator with Respect to Own Benefit. No
           -----------------------------------------------------------
Administrator who is a Participant shall take any part as the Administrator in
any discretionary action in connection with his participation as an individual.
Such action shall be taken by the remaining Administrator, if any, or otherwise
by the Corporation.

   9.10    Limitation on Power and Authority.
           ---------------------------------

   9.10(a) The Administrator shall have no power in any way to modify, alter,
add to or subtract from any provisions of the Plan.

   9.10(b) Notwithstanding any grant of authority by the Plan, if the
Administrator is not the Corporation or the Administrative Committee, the
Administrator shall exercise its discretionary authority granted under the Plan,
only as directed or authorized by the Administrative Committee, except in
connection with the following matters (unless otherwise directed by the
Administrative Committee):

           (i)  Determination of elected benefits under the Retirement Plan.

           (ii) Initial review of claims.

If the Administrative Committee authorizes the Administrator to direct payments
from the Plan and notifies the Corporation of such authorization, the
Corporation shall not be responsible to inquire or determine whether any
specific directions or notifications to the Corporation by the Administrator
within the scope of its authorization are with the authority of and/or at the
direction of the Administrative Committee.

                                   ARTICLE X
                                   ---------
                           Administrative Committee
                           ------------------------

   10.1 Makeup and Appointment of Administrative Committee. The Board shall
        --------------------------------------------------
appoint an Administrative Committee to administer the Plan consisting of one or
more persons who shall serve at the pleasure of the Board and without

                                      -9-
<PAGE>

compensation for service on the Administrative Committee. Vacancies shall be
filled by the Board. A person shall not be ineligible to be a member of the
Administrative Committee because he is or may be a Participant of the Plan. The
Administrator shall be notified by the Corporation of the persons constituting
the membership of the Administrative Committee (including its Chairman and
Secretary) and may assume that any person appointed (or holding the position of
its Chairman or Secretary) continues as a member thereof (or to hold such
position) until notified by the Corporation.

   10.2    Administrative Committee Procedures. The Administrative Committee
           -----------------------------------
shall adopt rules for the conduct of its business and administration of the Plan
as it considers desirable, provided they do not conflict with the Plan. The
Administrative Committee shall hold meetings upon such notice, at such place or
places, and at such intervals as it may from time to time determine.

   10.3    Powers and Authority. The Administrative Committee is hereby vested
           --------------------
with all the power and authority necessary in order to carry out its duties and
responsibilities in connection with its administration of the Plan. The
Administrative Committee is empowered to settle claims against the Plan and to
make such equitable adjustments in a Participant's or Beneficiary's rights or
entitlements under the Plan as it deems appropriate in the event an error or
omission is discovered or claimed in the operation or administration of the
Plan. The Administrative Committee may authorize one or more of its members or
any agent to act on its behalf and may contract for legal, accounting, clerical
and other services to carry out the Plan.

   10.4    Plan Interpretation. The Administrative Committee may construe the
           -------------------
Plan, correct defects, supply omissions or reconcile inconsistencies to the
extent necessary to effectuate the Plan and such action shall be conclusive.

   10.5    Records. The Administrative Committee shall keep records reflecting
           -------
its administration of the Plan which shall be subject to audit by the
Corporation. Participants may examine records pertaining directly to them during
reasonable business hours.

   10.6    No Action with Respect to Own Benefit. No member of the
           -------------------------------------
Administrative Committee shall participate in any decision of the Administrative
Committee which involves the payment of benefits to him or in which he has a
financial interest other than as a Participant of the Plan. If the entire
Administrative Committee is disqualified to act by reason of this Section, the
Corporation shall perform as the Administrative Committee.

   10.7    Necessary Information. The Corporation and the Administrator shall
           ---------------------
supply full and timely information to the Administrative Committee of all
matters relating to Participants and Beneficiaries and the Plan.

                                  ARTICLE XI
                                  ----------
                       Amendment and Termination of Plan
                       ---------------------------------

   11.1    Amendment or Termination of the Plan.
           ------------------------------------

   11.1(a) The Plan may be terminated at any time by the Board. The Plan may be
amended in whole or in part from time to time by the Board effective as of any
date specified. No amendment or termination shall operate to decrease a
Participant's Supplemental Retirement Benefit, or the Supplemental Death Benefit
with respect to a Participant in pay status, as of the earlier of the date on
which the amendment or termination is approved by the Board or the date on which
an instrument of amendment or termination is signed on behalf of the
Corporation.

   11.1(b) The Corporation hereby delegates to the Administrative Committee the
right to modify, alter, or amend the Plan in whole or in part to make any
technical modification, alteration or amendment which in the opinion of counsel
for the Corporation is required by law and is deemed advisable by the
Administrative Committee and to make any other modification, alteration or
amendment which does not, in the Administrative Committee's view, substantially
increase costs, contributions or benefits and does not materially affect the
eligibility, vesting or benefit accrual or allocation provisions of the Plan.

                                     -10-
<PAGE>

                                  ARTICLE XII
                                  -----------
                                 Miscellaneous
                                 -------------

   12.1    Non-assignability. The interests of each Participant under the Plan
           -----------------
are not subject to claims of the Participant's creditors; and neither the
Participant, nor his Beneficiary, shall have any right to sell, assign, transfer
or otherwise convey the right to receive any payments hereunder or any interest
under the Plan, which payments and interest are expressly declared to be non-
assignable and non-transferable.

   12.2    Right to Require Information and Reliance Thereon. The Corporation,
           -------------------------------------------------
the Administrative Committee and Administrator shall have the right to require
any Participant, Beneficiary or other person receiving benefit payments to
provide it with such information, in writing, and in such form as it may deem
necessary to the administration of the Plan and may rely thereon in carrying out
its duties hereunder. Any payment to or on behalf of a Participant or
Beneficiary in accordance with the provisions of the Plan in good faith reliance
upon any such written information provided by a Participant or any other person
to whom such payment is made shall be in full satisfaction of all claims by such
Participant and his Beneficiary; and any payment to or on behalf of a
Beneficiary in accordance with the provision so the Plan in good faith reliance
upon any such written information provided by such Beneficiary or any other
person to whom such payment is made shall be in full satisfaction of all claims
by such Beneficiary.

   12.3    Notices and Elections. All notices required to be given in writing
           --------------------
and all elections required to be made in writing, under any provision of the
Plan, shall be invalid unless made on such forms as may be provided or approved
by the Administrator and, in the case of a notice or election by a Participant
or Beneficiary, unless executed by the Participant or Beneficiary giving such
notice or making such election.

   12.4    Delegation of Authority. Whenever the Corporation is permitted or
           -----------------------
required to perform any act, such act may be performed by its Chief Executive
Officer or other person duly authorized by its Chief Executive Officer or the
Board.

   12.5    Service of Process. The Administrator shall be the agent for service
           ------------------
of process on the Plan.

   12.6    Governing Law. The Plan shall be construed, enforced and administered
           -------------
in accordance with the laws of the Commonwealth of Virginia, and any federal law
which preempts the same.

   12.7    Binding Effect. The Plan shall be binding upon and inure to the
           --------------
benefit of the Corporation, its successors and assigns, and the Participant and
his heirs, executors, administrators and legal representatives.

   12.8    Severability. If any provision of the Plan should for any reason be
           ------------
declared invalid or unenforceable by a court of competent jurisdiction, the
remaining provisions shall nevertheless remain in full force and effect.

   12.9    No Effect on Employment Agreement. The Plan shall not be considered
           ---------------------------------
or construed to modify, amend or supersede any employment agreement between the
Corporation and the Participant heretofore or hereafter entered into unless so
specifically provided.

   12.10   Gender and Number. In the construction of the Plan, the masculine
           -----------------
shall include the feminine or neuter and the singular shall include the plural
and vice-versa in all cases where such meanings would be appropriate.

   12.11   Titles and Captions. Titles and captions and headings herein have
           -------------------
been inserted for convenience of reference only and are to be ignored in any
construction of the provisions hereof.

                                     -11-
<PAGE>

   12.12   Construction. The Plan is intended to be construed as a "plan which
           ------------
is unfunded and is maintained by the employer primarily for the purpose of
providing deferred compensation for a select group of management or highly
compensated employees," within the meaning of Sections 201(2), 301(a)(3), and
401(a)(1) of the Employee Retirement Income Security Act of 1974, as amended,
and shall be interpreted and administered accordingly.

   IN WITNESS WHEREOF, the Corporation has caused the Plan to be signed on its
behalf by its duly authorized officer or member of its Board of Directors on the
day, month and year aforesaid.

                              SOUTHERN STATES COOPERATIVE, INCORPORATED

                              By:            /s/ Gene E. James
                                  ---------------------------------------
                              Its            President & CEO
                                  ---------------------------------------

                                     -12-<PAGE>

                                                                   EXHIBIT 10.12

                  SOUTHERN STATES DEFERRED COMPENSATION PLAN

                     (As Restated Effective July 1, 1995)

                                  Including:

                                  1. First Amendment
                                        (Effective July 1, 1996)
                                  2. Second Amendment
                                        (Effective July 1, 1997)
                                  3. Third Amendment
                                        (Effective October 1, 1997)
                                  4. Fourth Amendment
                                        (Effective July 1, 1998)
                                  5. Fifth Amendment
                                        (Effective July 1, 1999)
                                  6. Sixth Amendment
                                        (Effective October 1, 1999)
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                        Page
                                                                        ----
<S>                                                                     <C>
                                   ARTICLE I
                              Definition of Terms
                              -------------------

1.1    Act................................................................    1
1.2    Affiliated Employers...............................................    1
1.3    Administrator......................................................    1
1.4    Beneficiary........................................................    1
1.5    Benefit Commencement Date..........................................    1
1.6    Board..............................................................    2
1.7    Code...............................................................    2
1.8    Corporation........................................................    2
1.9    Deferred Thrift Benefit............................................    2
1.10   Earnings Fund Share................................................    2
1.11   Effective Date.....................................................    2
1.12   Eligible Employee..................................................    2
1.12A  Eligible Executives................................................    2
1.13   Employee...........................................................    2
1.14   Executive Bonus....................................................    2
1.15   Fiscal Year........................................................    2
1.16   Participant........................................................    3
1.17   Plan...............................................................    3
1.18   Plan Sponsor.......................................................    3
1.19   Plan Year..........................................................    3
1.20   Rabbi Trust........................................................    3
1.21   Reserve Account....................................................    3
1.22   Rollover Account...................................................    3
1.23   Salary.............................................................    3
1.24   Subsidiary.........................................................    3
1.25   Thrift Plan........................................................    3

                                  ARTICLE II
                                 Participation
                                 -------------

2.1    Participation......................................................    3
2.2    Termination of Participation.......................................    4

                                  ARTICLE III
                         Incentive Compensation Awards
                         -----------------------------

3.1    Earnings Fund Program..............................................    4
3.2    Executive Bonus Program............................................    6
3.3    Chief Executive Officer Incentive Program..........................    6
3.4    Eligible Executives Incentive Program .............................    6
</TABLE>
<PAGE>

<TABLE>
<S>                                                                       <C>

                                  ARTICLE IV
                              Elective Deferrals
                              ------------------

4.1    Deferral of Earnings Fund Share and Executive Bonus................    6
4.2    Deferral of Salary.................................................    6
4.3    Deferred Thrift Benefit............................................    6

                                   ARTICLE V
                 Allocations to and Vesting in Reserve Account
                 ---------------------------------------------

5.1    Allocations of Deferred Earnings Fund Share and Executive Bonus.....   7
5.2    Allocations of Deferred Salary......................................   7
5.3    Allocations of Deferred Thrift Benefit..............................   7
5.4    Subtractions from Reserve Account...................................   7
5.5    Deemed Earnings on Reserve Accounts.................................   7
5.6    Vesting in Reserve Account..........................................   8
5.7    Equitable Adjustment in Case of Error or Omission...................   8
5.8    Statement of Reserve Account Balance................................   8

                                  ARTICLE VI
                  Special Rules Relating to Rollover Account
                  ------------------------------------------

6.1    Transfer to Rollover Account.......................................    8
6.2    Deemed Earnings on Rollover Account................................    8
6.3    Subtractions from Rollover Account.................................    8
6.4    Vesting in Rollover Account........................................    8
6.5    Equitable Adjustment in Case of Error or Omission..................    8
6.6    Statement of Rollover Account Balance..............................    8
6.7    Death Benefits Attributable to Rollover Account....................    9
6.8    Disability Benefits Attributable to Rollover Account...............    9
6.9    Restrictions on Death or Disability Benefits.......................   10

                                  ARTICLE VII
                                    Funding
                                    -------

7.1    Funding............................................................   10
7.2    Use of Rabbi Trust Permitted.......................................   11

                                 ARTICLE VIII
                           Time and Form of Payment
                           ------------------------

8.1    Current Earning Fund Share and Executive Bonus Payments............   11
8.2    Distribution of Accounts...........................................   11
8.3    Death After Benefit Commencement...................................   13
8.4    Benefit Determination and Payment Procedure........................   14
8.5    Payments to Minors and Incompetents................................   14
8.6    Distribution of Benefit When Distributee Cannot Be Located.........   14
8.7    Claims Procedure...................................................   14
</TABLE>

                                     -ii-
<PAGE>

<TABLE>
<S>                                                                         <C>
                                   ARTICLE IX
                            Beneficiary Designation
                            -----------------------

9.1    Beneficiary Designation............................................   15

                                   ARTICLE X
                                  Withdrawals
                                  -----------

10.1   Severe Financial Hardship Withdrawals..............................   16
10.2   Other Withdrawals..................................................   16

                                  ARTICLE XI
                               Plan Administration
                               -------------------

11.1   Plan Administrator.................................................   16
11.2   Power and Authority of Administrator...............................   16

                                  ARTICLE XII
                       Amendment and Termination of Plan
                       ---------------------------------

12.1   Amendment or Termination of the Plan...............................   16

                                 ARTICLE XIII
                      Adoption by Additional Corporations
                      -----------------------------------

13.1   Adoption by Additional Corporations................................   17

                                  ARTICLE XIV
                                 Miscellaneous
                                 -------------

14.1   Non-assignability..................................................   17
14.2   Right to Require Information and Reliance Thereon..................   17
14.3   Notices and Elections..............................................   18
14.4   Delegation of Authority............................................   18
14.5   Service of Process.................................................   18
14.6   Governing Law......................................................   18
14.7   Binding Effect.....................................................   18
14.8   Severability.......................................................   18
14.9   No Effect on Employment Agreement..................................   18
14.10  Gender and Number..................................................   18
14.11  Titles and Captions................................................   18
</TABLE>

                                     -iii-
<PAGE>

    This Deferred Compensation Plan (hereinafter the "Plan" and formerly known
as the Deferred Incentive Compensation Plan) is amended and restated this 28th
day of June, 1995, effective July 1, 1995, unless otherwise specifically
stated, by Southern States Cooperative, Incorporated, a Virginia corporation
(hereinafter called the "Plan Sponsor");

                                  WITNESSETH:

    WHEREAS, the Plan was adopted to provide an incentive compensation program
for certain executives of the Corporation and to allow for the deferral of the
receipt of such incentive compensation; and

    WHEREAS, the Plan Sponsor deems it appropriate to expand the deferral
program to include salary deferral, withdrawal rights and the right of a
Participant to select a rate of return for the deemed investment of the Reserve
Account based on various measures permitted by the Administrator.

    NOW, THEREFORE, in consideration of the premises herein, the Plan Sponsor
agrees as follows:

                                   ARTICLE I
                              Definition of Terms
                              -------------------

    The following words and terms as used in this Plan shall have the meaning
set forth below, unless a different meaning is clearly required by the context:

    1.1    "Act":  The Employee Retirement Income Security Act of 1974, as the
same may be amended from time to time, or the corresponding sections of any
subsequent legislation which replaces it, and, to the extent not inconsistent
therewith, the regulations issued thereunder.

    1.2    "Affiliated Employers":  The Plan Sponsor and all of its
Subsidiaries.

    1.3    "Administrator":  The plan administrator provided for in Article XI
hereof.

    1.4    "Beneficiary":  The person or persons designated by a Participant or
otherwise entitled pursuant to Article IX to receive benefits under the Plan
attributable to such Participant after the death of such Participant.

    1.5    "Benefit Commencement Date":

         (i)    When used with respect to the Reserve Account, the first July 1
    or January 1 following the Participant's cessation of employment as an
    Employee of the Affiliated Employers for whatever reason.

         (ii)   When used with respect to the Rollover Account, generally the
    first July 1 or January 1 following the earlier of:

              (A)   The later of:

                  (I) The Participant's cessation of employment as an Employee
              of the Affiliated Employers, or

                 (II) The date the Participant reaches age fifty-five (55), or

              (B)   The date the Participant reaches age sixty-five (65).

<PAGE>

    In the case of the Death or Disability Benefits described in Article VI, the
    first July 1 or January 1 following the Participant's death and receipt of a
    claim from the Beneficiary, or following receipt of proof of the
    Participant's total and permanent disability.  However, if a Participant's
    Benefit Commencement Date occurs prior to January 1, 1990, such Participant
    shall continue to receive benefit payments as determined under the Plan as
    amended effective January 1, 1990.

       (iii)  Notwithstanding the foregoing, a Participant may elect to defer
    his Benefit Commencement Date to a January 1 or July 1, not later than his
    65/th/ birthday, provided that such election to defer the Benefit
    Commencement Date is filed with the Administrator in the calendar year prior
    to, and at least 60 days prior to, the otherwise applicable Benefit
    Commencement Date. Only one such election to defer the Benefit Commencement
    Date may be made by a Participant.

    1.6    "Board":  The present and any succeeding Board of Directors of the
Plan Sponsor, unless such term is used with respect to a particular Corporation
and its Employees, in which event it shall mean the present and any succeeding
Board of Directors of that Corporation.

    1.7    "Code":  The Internal Revenue Code of 1986, as the same may be
amended from time to time, or the corresponding section of any subsequent
Internal Revenue Code, and, to the extent not inconsistent therewith,
regulations issued thereunder.

    1.8    "Corporation":  The Plan Sponsor and any of its Subsidiaries approved
by the Board of the Plan Sponsor for participation in and adopting the Plan.

    1.9    "Deferred Thrift Benefit":  The amount awarded to certain
Participants under paragraph 4.3.

    1.10   "Earnings Fund Share":  The share of the Earnings Fund awarded to
certain Participants under paragraph 3.1, the Chief Executive Officer Incentive
Distribution to the Chief Executive Officer under paragraph 3.3 of the Plan and
the Eligible Executive's Distribution to the Eligible Executives under paragraph
3.4.

    1.11   "Effective Date":  The Effective Date of this restatement of the Plan
is July 1, 1995.

    1.12   "Eligible Employee":  An Employee who is employed by the Corporation
in:

         (i)  Its 200 pay series, or

        (ii)  Effective July 1, 1989, its 100 pay series.

    1.12A  "Eligible Executives":  The Chief Financial Officer and the Group
Vice Presidents.

    1.13   "Employee":  An individual who is employed in the service of the
Affiliated Employers as a common law employee.

    1.14   "Executive Bonus":  The discretionary bonus awarded to certain
Participants under paragraph 3.2.

    1.15   "Fiscal Year":  The fiscal year of the Plan Sponsor.

    1.16   "Participant":  An Eligible Employee but only during such period and
for such purposes as he is considered a Participant as described in Article II
of the Plan.  Participants may be classified as Active or Inactive Participants
as provided in Article II.

                                      -2-
<PAGE>

    1.17   "Plan":  This document, as contained herein or as duly amended, which
shall be known as the "Southern States Deferred Compensation Plan".  Prior to
July 1, 1995 the Plan was known as the "Southern States Deferred Incentive
Compensation Plan"

    1.18   "Plan Sponsor":  Southern States Cooperative, Incorporated, a
Virginia corporation, or its corporate successor.

    1.19   "Plan Year":  The twelve (12) month period beginning on the first day
of July of each year.

    1.20   "Rabbi Trust":  A trust fund described in paragraph 7.2 and
established or maintained for the Plan.

    1.21   "Reserve Account":  The bookkeeping account of a Participant
attributable to elective and non-elective deferrals under the Plan and to any
deemed earnings thereon less any amounts transferred pursuant to paragraph 6.1
to the Rollover Account.

    1.22   "Rollover Account":  The bookkeeping account of a Participant
attributable to elective and non-elective deferrals made prior to January 1,
1990 and deemed earnings thereon (less any distributions made prior to July 1,
1990) which are transferred from the Reserve Account pursuant to paragraph 6.1.

    1.23   "Salary":  A Participant's regular base salary paid or payable for
personal services rendered to the Corporation as an Eligible Employee, including
that portion of such amount which is electively deferred under or contributed to
this Plan or any other plan, whether a deferred compensation or cafeteria plan,
of the Corporation for such Plan Year, but excluding any such compensation
deferred or contributed from a prior period, bonuses, incentive pay, expense
reimbursement and allowances and benefits not normally paid in cash to the
Participant.  Salary for any Plan Year shall be determined as of the first day
of the Plan Year.

    1.24   "Subsidiary":  A corporation (other than the Plan Sponsor) in which
the Plan Sponsor owns an equity interest and holds fifty percent (50%) or more
of the votes entitled to be cast for directors.

    1.25   "Thrift Plan":  The Southern States Thrift Plan and Trust as restated
effective January 1, 1987 and as thereafter amended.

                                  ARTICLE II
                                 Participation
                                 -------------

    2.1    Participation.  The Board, upon recommendation of the President and
           -------------
Chief Executive Officer of the Plan Sponsor, shall determine in advance of each
Fiscal Year, the offices and positions that will be entitled to actively
participate in the Plan for the Fiscal Year.  Each Eligible Employee who is so
designated by the Board by his office or position for a Fiscal Year shall be a
Participant and an Active Participant in the Plan for the Fiscal Year.  In
addition, where a designated office or position is vacated by a Participant and
is subsequently filled during a Fiscal Year, or where an office or position is
newly designated (either a currently filled position or a newly created
position) for participation in the Plan, the Board, upon recommendation of the
President and Chief Executive Officer of the Plan Sponsor, may include any
Active Participant's successor or replacement and/or the individual who fills
the newly designated office or position, as a Participant and an Active
Participant in the Plan for such Fiscal Year, as of a date designated by the
Board.  For purposes of this paragraph, the Board's determination of the offices
and positions entitled to actively participate in the Plan shall continue in
effect for subsequent Fiscal Years unless changed in advance of a Fiscal Year.
In making its designation, the Board may distinguish between Employees who are
eligible to participate only in the deferral aspect of the Plan and those who
are eligible for the Earning Fund Program on the Executive Bonus.

                                      -3-
<PAGE>

    2.2      Termination of Participation.
             ----------------------------

    2.2(a)   A Participant shall cease to be an Active Participant upon the
first to occur of the following events:

          (i)  The Participant retires or otherwise terminates his employment
    with the Corporation; or

         (ii)  The Participant ceases to be an Eligible Employee.

    2.2(b)   A Participant shall be an Inactive Participant whenever he is not
an Active Participant but he is still entitled to future benefits under the
terms of the Plan.

    2.2(c)   An individual shall cease to be a Participant when he is neither an
Active Participant nor an Inactive Participant.

                                  ARTICLE III
                         Incentive Compensation Awards
                         -----------------------------

    3.1      Earnings Fund Program.
             ---------------------

    3.1(a)   With respect to each Fiscal Year, each Covered Participant for such
Fiscal Year shall be entitled to a share (the "Earnings Fund Share") of the
Earnings Fund for such Fiscal Year equal to the ratio of such Covered
Participant's Covered Base Salary for such Fiscal Year to the sum of all Covered
Participants' Covered Base Salary for such Fiscal Year.

    3.1(b)   For purposes hereof, the following terms shall have the meanings
set forth below:

          (i)  The term "Applicable Percentage" means the following percentage
    determined by reference to the Participant's incentive group:

                 Incentive Group                      Applicable Percentage
                 ---------------                      ---------------------

        200 Pay Series (Incentive Group A)                    17 1/2%
        200 Pay Series (Incentive Group B)                    15%
        200 Pay Series (Incentive Group C)                    12 1/2%
        200 Pay Series (Incentive Group D)                    10%
        100 Pay Series (Incentive Group E)                    10%

         (ii)  The term "Associated Companies" means corporations (other than
    the Plan Sponsor) in which the Plan Sponsor owns an equity interest of more
    than five percent (5%) but holds less than fifty percent (50%) of the votes
    entitled to be cast for directors.

        (iii)  The term "Covered Base Salary" for a Fiscal Year means the
    product obtained by multiplying a Participant's final annual base salary
    determined at the earlier of the last day of the Fiscal Year or the date he
    ceases to be an Active Participant by his Applicable Percentage for the
    Fiscal Year subject, however, to the following:

             (A) Where a Participant becomes an Active Participant on a day
        other than the first day of a Fiscal Year, ceases to be an Active
        Participant on a day other than the last day of a Fiscal Year, or
        becomes a member of a different incentive group while an Active
        Participant during a Fiscal Year, his Covered Base Salary shall be
        determined separately for each such period, his Covered Base Salary for
        each such period shall then be prorated on the basis of the ratio of the
        number of days in each such period to the number of days in the Fiscal
        Year, and his Covered Base Salary for the Fiscal Year shall be the sum
        of his Covered Base Salary for each such period.

                                      -4-
<PAGE>

             (B) Where a Participant is designated as a "partial" Covered
        Participant for a Fiscal Year, his Covered Base Salary shall be his
        otherwise determined Covered Base Salary for the Fiscal Year multiplied
        by the "partial" percentage applicable to him.

        (iv)   The term "Covered Participant" for a Fiscal Year means a
    Participant (other than the Chief Executive Officer and the Eligible
    Executives) who is an Active Participant designated by the Board to be
    eligible for the Earnings Fund Program at any time during the Fiscal Year,
    provided, however, that the Chief Executive Officer of the Plan Sponsor may
    disqualify a Participant at any time as a result of a performance not deemed
    to be of the caliber that warrants treatment as a Covered Participant and
    entitlement to a standard Earnings Fund Share:

             (A) In whole, in which case the Participant shall not be considered
        a Covered Participant and shall not be entitled to an Earnings Fund
        Share for the Fiscal Year(s) to which such disqualification relates, or

             (B) In part, in which case the President and Chief Executive
        Officer of the Plan Sponsor shall designate the percentage (the
        "partial" percentage) of the Participant's partial qualification as a
        Covered Participant and the Participant shall only be entitled to such a
        partial standard Earnings Fund Share (determined by adjusting his
        Covered Base Salary) for the Fiscal Year(s) to which such partial
        qualification relates.

        (v)    The term "Earnings Fund" means, with respect to any Fiscal Year,
    the lesser of:

             (A) The sum of (I) the product obtained by multiplying the excess
        of Net Earnings for the Fiscal Year over ten percent (10%) of Net Worth
        as of the beginning of the Fiscal Year by five percent (5%) plus (II)
        $5,000 for each full one million dollars ($1,000,000) of actual
        consolidated dollar volume in total operations of the Affiliated
        Employers for the Fiscal Year over budgeted dollar volume in total
        operations, or

             (B) The aggregate sum of the Covered Base Salary of each Covered
        Participant for the Fiscal Year.

        (vi)   The term "Net Earnings" means the consolidated pre-tax net
    earnings of the Affiliated Employers adjusted to reflect the imputed cost of
    investments in Associated Companies and to exclude in respect to Associated
    Companies all dividends, patronage refunds, gains and losses on investments,
    and equity in unrealized earnings and losses.

        (vii)  The term "Net Worth" means the consolidated book value of the
    assets less liabilities of the Affiliated Employers, excluding the recorded
    value of investments in Associated Companies.

    3.2    Executive Bonus Program.
           -----------------------

    3.2(a) With respect to each Fiscal Year, an Active Participant designated by
the Board to be eligible for the Elective Bonus Program shall be entitled to a
bonus (the "Executive Bonus") in such amount, if any, as is determined by and in
the discretion of the President and Chief Executive Officer of the Plan Sponsor
as soon as possible following the end of each Fiscal Year based on his
assessment of the Participant's performance during the preceding twelve (12)
months.

    3.2(b) The Executive Bonus to which an Active Participant may be entitled
for a Fiscal Year shall not exceed his Covered Base Salary for the Fiscal Year.

    3.3    Chief Executive Officer Incentive Program.  With respect to each
           -----------------------------------------
Fiscal Year beginning on or after July 1, 1997, the Chief Executive Officer
shall be entitled to an Incentive Distribution pursuant to the program described
in Appendix A to the Plan.

                                      -5-
<PAGE>

    3.4    Eligible Executives Incentive Program.  With respect to each Fiscal
           -------------------------------------
Year beginning on or after July 1, 1998, the Eligible Executives shall be
entitled to an Incentive Distribution pursuant to the program described in
Appendix B to the Plan.

                                  ARTICLE IV
                              Elective Deferrals
                              ------------------

    4.1    Deferral of Earnings Fund Share and Executive Bonus.  A Participant
           ---------------------------------------------------
may elect to defer the receipt of any or all of his Earnings Fund Share and his
Executive Bonus for a Fiscal Year.  The election to defer such amounts shall be
made annually and filed with the Administrator prior to the beginning of the
Fiscal Year for which such payments will be made; provided, however, that when
an individual becomes an Active Participant on a day other than the first day of
a Fiscal Year, he shall have thirty (30) days after he is notified of
commencement of active participation to file his election with the
Administrator.  Such election shall be in writing on a form provided by the
Administrator for this purpose.

    4.2    Deferral of Salary.  A Participant may elect to defer the receipt of
           ------------------
any or all of his Salary for a Plan Year.  The election to defer such amounts
may be subject to any maximum or minimum percentage or dollar amount as the
Administrator in its sole discretion may determine and shall be made annually
and filed with the Administrator prior to the beginning of the Plan Year for
which such payments will be made; provided, however, that when an individual
becomes an Active Participant on a day other than the first day of a Plan Year,
he shall have thirty (30) days after he is notified of commencement of active
participation to file his election with the Administrator.  Such election shall
be in writing on a form provided by the Administrator for this purpose.

    4.3    Deferred Thrift Benefit.  Each Participant who is an Active
           -----------------------
Participant at some time during the period from March 16, 1989 through December
31, 1990, inclusive, and who during such period would have been eligible to be
an active participant in the Thrift Plan but for the exclusion of Employees in
the Corporation's 200 pay series from active participation in the Thrift Plan
shall be entitled to a non-elective deferred award (the "Deferred Thrift
Benefit") in an amount equal to one and one-half percent (1-1/2%) of his
"Compensation" (as defined in the Thrift Plan) for that portion of the 1989 and
1990 calendar years beginning on the later of (i) March 16, 1989 or (ii) the
date he becomes an Active Participant through the earlier of (iii) December 31,
1990 or (iv) the date he is first eligible after March 15, 1989 to become an
active participant in the Thrift Plan.  For purposes hereof, such Deferred
Thrift Benefit shall be determined for each such separate period of exclusion
from participation in the Thrift Plan if there is more than one such period with
respect to a Participant.

                                   ARTICLE V
                 Allocations to and Vesting in Reserve Account
                 ---------------------------------------------

    5.1    Allocation of Deferred Earnings Fund Share and Executive Bonus.  The
           --------------------------------------------------------------
Earning Fund Share and Executive Bonus, or portion thereof, of a Participant for
a Fiscal Year which is deferred pursuant to paragraph 4.1 shall be allocated to
the Participant's Reserve Account upon receipt by the Plan Administrator of
notification authorizing the fiscal year award.

    5.2    Allocation of Deferred Salary.  The Salary which is deferred pursuant
           -----------------------------
to paragraph 4.2 shall be allocated to the Participant's Reserve Account as of
the last day of the calendar month in which such Salary would otherwise have
been paid, if the Participant is employed as of such date.  A Participant whose
employment terminates during the calendar month shall be paid the amount of his
deferred Salary for such month in cash.

    5.3    Allocation of Deferred Thrift Benefit.  The Deferred Thrift Benefit
           -------------------------------------
of a Participant with respect to a calendar month shall be allocated to the
Participant's Reserve Account as of the last day of such calendar month.

    5.4    Subtractions from Reserve Account.  All distributions, withdrawals
           ---------------------------------
and forfeitures from a Participant's Reserve Account shall be subtracted when
made.

                                      -6-
<PAGE>

    5.5    Deemed Earnings on Reserve Accounts.
           -----------------------------------

    5.5(a) With respect to the Reserve Account of Participants whose benefits
begin to be paid on or after January 1, 1996 and with respect to earnings
credited for periods beginning on and after July 1, 1995, there shall be
credited daily to the Reserve Account of each Participant earnings and losses
based on the deemed investments selected by the Participant (or, if deceased,
his Beneficiary) in accordance with the procedures adopted for the Plan by the
Administrator from time to time. The available investment options shall be the
funds available for directed investment under the Thrift Plan.  For periods
prior to October 1, 1997, the Reserve Account of a Participant who does not make
a deemed investment direction shall be credited with earnings and losses as
though his Reserve Account were invested in the Stable Value Fund under the
Thrift Plan.  For periods beginning on and after October 1, 1997, the Reserve
Account of a Participant who does not make a deemed investment direction shall
be credited with earnings and losses as though his Reserve Account were invested
in the Default Fund named under the Thrift Plan

    5.5(b) With respect to the Reserve Account of Participants whose benefits
begin to be paid on or before July 1, 1995 and with respect to earnings credited
for periods beginning before July 1, 1995, there shall be credited to the
Reserve Account an additional amount equal to the average balance in the Reserve
Account during  such Fiscal Year, multiplied by the rate of interest paid on new
debentures sold by the Plan Sponsor during the Fiscal Year, or in the absence of
such debenture rate, the daily average rate of interest charged by CoBank A.C.B.
for variable term loans during the Fiscal Year.

    5.5(c) Notwithstanding the foregoing, for the purpose of determining the
balance of a Participant's Reserve Account as of January 1, 1990 that is to be
transferred to the Rollover Account pursuant to paragraph 6.1, there shall be
credited to the Reserve Account an additional amount equal to the average
balance in the Reserve Account during the period beginning July 1, 1989 and
ending December 31, 1989 ( for purposes of this subparagraph the "Crediting
Period"), multiplied by the rate of interest paid on new debentures sold by the
Plan Sponsor during the Crediting Period, or in the absence of such debenture
rate, the daily average rate of interest charged by the National Bank for
Cooperatives, Baltimore Region for variable term loans during the Crediting
Period plus an amount equal to the April 1, 1990 distribution multiplied by the
rate of interest described above and applied for a three month period.

    5.6    Vesting in Reserve Account.  Except as provided in paragraph 10.2, a
           --------------------------
Participant's rights to the balance in his Reserve Account shall be fully vested
and non-forfeitable at all times, and the termination of his employment as an
Eligible Employee for any reason or his death shall not diminish the amount
payable to the Participant or his Beneficiary.

    5.7    Equitable Adjustment in Case of Error or Omission.  Where an error or
           -------------------------------------------------
omission is discovered in the account of a Participant, the Administrator shall
be authorized to make such equitable adjustment as it deems appropriate.

    5.8    Statement of Reserve Account Balance.  Within a reasonable time after
           ------------------------------------
the end of each Fiscal Year, the Administrator shall provide to each Participant
(or, if deceased, to his Beneficiary) a statement of the balance as of such date
in his Reserve Account.

                                  ARTICLE VI
                  Special Rules Relating to Rollover Account
                  ------------------------------------------

    6.1    Transfer to Rollover Account.  The balance of a Participant's Reserve
           ----------------------------
Account as of December 31, 1989 less any subtractions made for distributions
made prior to July 1, 1990 shall be transferred as of January 1, 1990 to the
Rollover Account.  Notwithstanding the foregoing, in the event that the balance
of a Participant's Reserve Account as of January 1, 1990 is less than Fifteen
Hundred Dollars ($1,500), such Participant's deferred benefit shall not be
transferred to the Rollover Account but shall remain in and subject to the rules
relating to the Reserve Account.

    6.2    Deemed Earnings on Rollover Account.  Effective January 1, 1990, at
           -----------------------------------
the end of each Fiscal Year or such other crediting period required under the
Plan, there shall be credited to the Rollover Account an additional amount

                                      -7-
<PAGE>

equal to the average balance in the Rollover Account during such Fiscal Year or
other crediting period, multiplied by the following annual rate of interest
determined on the basis of the Participant's age as of January 1, 1990:

                   Under Age 45                   10.50%
                     45-49                        11.00%
                     50-54                        11.50%
                     55-59                        12.50%
                   60 and Over                    13.00%

    6.3    Subtractions from Rollover Account.  All distributions from a
           ----------------------------------
Participant's Rollover Account shall be subtracted when made.

    6.4    Vesting in Rollover Account.  A Participant's rights to the balance
           ---------------------------
in his Rollover Account shall be fully vested and non-forfeitable at all times,
and the termination of his employment as an Eligible Employee for any reason or
his death shall not diminish the amount payable to the Participant or his
Beneficiary.

    6.5    Equitable Adjustment in Case of Error or Omission.  Where an error or
           -------------------------------------------------
omission is discovered in the Rollover Account of a Participant, the
Administrator shall be authorized to make such equitable adjustment as it deems
appropriate.

    6.6    Statement of Rollover Account Balance.  Within a reasonable time
           -------------------------------------
after the end of each Fiscal Year, the Administrator shall provide to each
Participant (or, if deceased, to his Beneficiary) a statement of the balance as
of such date in his Rollover Account.

    6.7    Death Benefits Attributable to Rollover Account.
           -----------------------------------------------

    6.7(a) Effective July 1, 1990, except as provided in subparagraph 6.9, in
the event a Participant who has a balance in his Rollover Account dies while an
Eligible Employee and before his Benefit Commencement Date, then the Beneficiary
of such Participant shall be entitled to a benefit under the Plan (the "Death
Benefit") in an amount equal to the following:

           (i)    In the event such Participant's death occurs prior to the date
    he reaches age 62, the applicable Death Benefit shall be equal to 70% of the
    balance of his Rollover Account determined as though he had lived and
    earnings had continued to be credited until the last day of the calendar
    month in which he would have reached age 65, or the actual balance in his
    Rollover Account as of the next July or January 1 following the date of his
    death, if greater.

           (ii)   In the event such Participant's death occurs on or after the
    date he reaches age 62, the applicable Death Benefit shall be equal to 100%
    of the balance of his Rollover Account determined as though he had lived and
    earnings had continued to be credited until the last day of the calendar
    month in which he would have reached age 65, or the actual balance in his
    Rollover Account as of the next July 1 or January 1 following the date of
    his death, if greater.

    6.7(b) In the event a Participant who has a balance in his Rollover Account
dies before his Benefit Commencement Date at a time when he is not an Eligible
Employee, then the Beneficiary of such Participant shall be entitled to receive
the balance in the Participant's Rollover Account determined at the next July 1
or January 1 following his death.

    6.8    Disability Benefits Attributable to Rollover Account.
           ----------------------------------------------------

    6.8(a) Effective July 1, 1990, except as provided in subparagraph 6.9, in
the event a Participant who has a balance in his Rollover Account becomes
totally and permanently disabled while an Eligible Employee and before his

                                      -8-
<PAGE>

Benefit Commencement Date, then he shall be entitled to a benefit under the Plan
(the "Disability Benefit") in an amount equal to the following:

           (i)    In the event such Participant provides proof of his total and
    permanent disability prior to the date he reaches age 62, the applicable
    Disability Benefit shall be equal to 70% of the balance of his Rollover
    Account determined as though earnings had continued to be credited until the
    last day of the calendar month in which he would have reached age 65, or the
    actual balance in his Rollover Account as of the next July 1 or January 1
    following the date proof of disability is furnished, if greater.

           (ii)   In the event such Participant provides proof of his total and
    permanent disability on or after the date he reaches age 62, the applicable
    Disability Benefit shall be equal to 100% of the balance of his Rollover
    Account determined as though earnings had continued to be credited until the
    last day of the calendar month in which he would have reached age 65, or the
    actual balance in his Rollover Account as of the next July 1 or January 1
    following the date proof of disability is furnished, if greater.

    6.8(b) For purposes hereof, the determination of total and permanent
disability shall be made by the Administrator in accordance with the following
standard.  A Participant shall be considered to be totally and permanently
disabled if he is unable to perform each of the material duties of his regular
occupation or of any gainful occupation for which he is reasonably fitted taking
into consideration his training, education or experience, as well as prior
earnings.  In making its determination, the Administrator may rely on the advice
of one or more physicians appointed or approved by the Plan Sponsor and the
Administrator shall have the right to require further medical examinations from
time to time to determine whether there has been any change in the Participant's
physical condition.

    6.8(c) In the event that a Participant's total and permanent disability
ceases:

           (i)    If he again becomes an Eligible Employee, no further
    Disability Benefits shall be paid and the balance in his Rollover Account
    shall be recomputed and he shall be entitled to the remainder of his
    recomputed Rollover Account (including any Death Benefit, if applicable) in
    such manner and at such time as though no total and permanent disability had
    occurred. The recomputed balance as of the day following the last disability
    payment shall be the amount which would have been in the Rollover Account
    had the Participant terminated employment on the date payment of the
    Disability Benefit began and received payments on the basis of the balance
    as of such date during the period of disability.

           (ii)   If he does not again become an Eligible Employee, no further
    Disability Benefits shall be paid and the balance in his Rollover Account
    shall be recomputed and he shall be entitled to any remaining payments on
    the basis of the recomputed balance.  The recomputed balance as of the day
    following the last disability payment shall be the amount which would have
    been in the Rollover Account had the Participant terminated employment on
    the date as of payment of the Disability Benefit began and received payments
    on the basis of the balance as of such date during the period of disability.

    6.8(d) In the event a Participant who has a balance in his Rollover Account
provides proof of his total and permanent disability before his Benefit
Commencement Date at a time when he is not an Eligible Employee, then he shall
be entitled to receive the balance in his Rollover Account determined at the
next July 1 or January 1 following the date proof of his total and permanent
disability is provided to the Administrator.

    6.9    Restrictions on Death or Disability Benefits.  Neither the Death
           --------------------------------------------
Benefit nor the Disability Benefit described in this ARTICLE shall be paid under
the following circumstances:

           (i)    The Participant fails to execute such applications, submit to
    such physical examinations and provide such truthful and complete
    information as may be requested by the Administrator,

                                      -9-
<PAGE>

           (ii)   The Participant is determined to be uninsurable based on the
    underwriting factors applied by the Administrator, or

           (iii)  The Participant's death or disability is the result of a
    suicide or intentional self-inflicted injury which occurs within the
    thirteen (13) month period beginning January 1, 1990.

                                  ARTICLE VII
                                    Funding
                                    -------

    7.1    Funding.
           -------

    7.1(a) The undertaking to pay benefits hereunder shall be unfunded
obligation payable solely from the general assets of the Corporation and subject
to the claims of the Corporation's creditors.  The Reserve Account and the
Rollover Account shall be maintained as book reserve accounts solely for
accounting purposes.

    7.1(b) Except as provided in the Rabbi Trust established as permitted in
paragraph 7.2, nothing contained in the Plan and no action taken pursuant to the
provisions of the Plan shall create or be construed to create a trust of any
kind or a fiduciary relationship between the Corporation and the Participant or
his Beneficiary or any other person.  To the extent that any person acquires a
right to receive payments from the Corporation under the Plan, such rights shall
be no greater than the right of any unsecured general creditor of the
Corporation.

    7.1(c) Where more than one Corporation participates in the Plan, the funding
and payment provisions hereof shall apply separately to each such Corporation.

    7.1(d) The Plan Sponsor may in its discretion make the payment of any or all
benefits under the Plan in lieu of payment by one or more Corporations.  Where
the Plan Sponsor makes payments on behalf of other Corporations, the Plan
Sponsor may require contributions by participating Corporations to the Plan
Sponsor at such times (whether before, at or after the time of payment), in such
amounts and or such basis as it may from time to time determine in order to
defray the cost of benefits and administration of the Plan.

    7.2    Use of Rabbi Trust Permitted.  Notwithstanding any provision herein
           ----------------------------
to the contrary, the Plan Sponsor may in its sole discretion elect to establish
and fund a Rabbi Trust for the purpose of providing benefits under the Plan.

                                 ARTICLE VIII
                           Time and Form of Payment
                           ------------------------

    8.1    Current Earnings Fund Share and Executive Bonus Payments.  A
           --------------------------------------------------------
Participant's Earnings Fund Share and Executive Bonus, or portion thereof, for a
Fiscal Year for which no deferral election has been properly filed by the
Participant shall be paid to the Participant (or his Beneficiary) as soon as
practicable following the close of the Fiscal Year.

    8.2    Distribution of Accounts.
           ------------------------

    8.2(a) Distributions from a Participant's Reserve Account and Rollover
Account shall commence on the Participant's Benefit Commencement Date.

    8.2(b) Distributions from a Participant's Reserve Account which begin to be
paid on or after January 1, 1996 shall be made in quarterly installment payments
to the Participant or his Beneficiary over the Distribution Period on the first
day of each calendar quarter until the Participant's Reserve Account has been
paid in full as follows:

           (i)    The initial quarterly payment shall be based on the balance in
    the Participant's Reserve Account at the end of the calendar quarter
    immediately preceding the Benefit Commencement Date.  The initial payment
    shall be

                                     -10-
<PAGE>

    an amount equal to the applicable preceding quarterly balance divided by 41
    in the case of a July 1 Benefit Commencement Date or 39 in the case of a
    January 1 Benefit Commencement Date. The initial payment amount shall
    continue to be made quarterly until the following October 1.

           (ii)   The quarterly payment amount shall be recalculated and
    adjusted beginning with each October payment and continuing until the next
    October payment when the payment amount shall again be recalculated based on
    the balance in the Participants' Reserve Account after the preceding July 1
    payment. The new quarterly payment at each October 1 shall be equal to that
    adjusted balance divided by the remaining number of payments to be made.

           (iii)  The final quarterly payment shall be the balance in the
    Participant's Reserve Account and will be paid as soon as reasonably
    possible following the completion of the final June 30 valuation.

           (iv)   All payments, other than the final payment, shall be rounded
    to the nearest whole dollar.

           (v)    All payments will be deducted on a pro rata basis from the
    investment options which the Participant has selected pursuant to
    subparagraph 5.5(a) as deemed investments of the balance of his Reserve
    Account.

           (vi)   Effective July 1 of a final payment year which begins prior to
    October 1, 1997, the Reserve Account of the Participant shall be credited
    with deemed earnings and losses based on the performance of the Stable Value
    Fund investment under the Thrift Plan.

           (vii)  Effective July 1 of a final payment year which begins on or
    after October 1, 1997, the Reserve Account of the Participant shall be
    credited with deemed earnings and losses based on the performance of the
    Default Fund investment under the Thrift Plan.

    8.2(c) Distributions from a Participant's Reserve Account which begin on or
before July 1, 1995 shall be made in quarterly payments to the Participant or
his Beneficiary over the Distribution Period on the first day of each calendar
quarter until the Participant's Reserve Account has been paid in full as
follows:

           (i)    The quarterly payments during the Distribution Period are
    intended to be substantially equal.  Annual recalculations applying the
    Payment Factors shall be made in order to compensate for variations between
    actual deemed earnings credited pursuant to paragraph 5.5 and the assumed
    average rate of ten percent (10%) per annum.

           (ii)   The initial quarterly payment shall be based on the balance in
    Participant's Reserve Account on the immediately preceding June 30th in the
    case of a January 1 Benefit Commencement Date and on the June 30th of the
    immediately preceding calendar year in the case of a July 1 Benefit
    Commencement Date.  The initial payment amount shall be an amount equal to
    the applicable June 30th  balance multiplied by .041527 in the case of a
    July 1 Benefit Commencement Date or .040796 in the case of a January 1
    Benefit Commencement Date.  The initial payment amount shall continue to be
    made quarterly until the following October 1.

           (iii)  The quarterly payment amount shall be recalculated and
    adjusted beginning with each October payment and continuing until the next
    October payment when the quarterly payment amount shall again be
    recalculated.  The recalculation shall be based on the balance in the
    Participant's Reserve Account after the preceding July payment.  The new
    quarterly payment amount at each October 1 shall be an amount equal to that
    adjusted balance multiplied by the applicable Payment Factor for the
    quarterly payment number as of which the recalculation occurs.

           (iv)   The final quarterly payment shall be the balance in the
    Participant's Reserve Account.

           (v)    All payments, other than the final payment, shall be rounded
    to the nearest whole dollar.

           (vi)   The "Payment Factors" are as follows:

                                     -11-
<PAGE>

<TABLE>
<CAPTION>

                                            Payment Factors
                            -----------------------------------------------
              Quarterly        July 1 Benefit          January 1 Benefit
         Payment Number       Commencement Date        Commencement Date
         --------------       -----------------        -----------------
         <S>                  <C>                      <C>

              1                         .041527                  .040796
              2                         .039233
              4                                                  .041859
              6                         .041859
              8                                                  .045187
              10                        .045187
              12                                                 .049517
              14                        .049517
              16                                                 .055352
              18                        .055352
              20                                                 .063594
              22                        .063594
              24                                                 .076051
              26                        .076051
              28                                                 .096940
              30                        .096940
              32                                                 .138907
              34                        .138907
              36                                                 .265200
              38                        .265200
              39                                                 Balance
              41                        Balance
</TABLE>

    8.2(d) Distribution from a Participant's Rollover Account shall normally be
made in equal quarterly payments to the Participant or his Beneficiary over the
Distribution Period on the first day of each calendar quarter until the
Participant's Rollover Account has been paid.  The quarterly payments shall be
determined on the basis of the applicable interest rate described in paragraph
6.2.

    8.2(e) For purposes hereof the term "Distribution Period":

             (i)    When used with respect to the Reserve Account, the forty-one
    (41) consecutive calendar quarters beginning with July in the case of a July
    1 Benefit Commencement Date or the thirty-nine (39) consecutive calendar
    quarters beginning with January in the case of a January 1 Benefit
    Commencement Date.

             (ii)   When used with respect to the Rollover Account, the forty
    (40) consecutive calendar quarters beginning with the Benefit Commencement
    Date.

    8.2(f) Notwithstanding the foregoing:

           (i)    The Board shall have the right, in its sole discretion to
    vary the manner and the time of making the installment distribution provided
    in this paragraph by making such distributions in a lump sum equal to the
    balance in the Reserve Account and the Rollover Account at the time in
    question or over a shorter or longer period than required herein as it may
    find appropriate.

           (ii)   The Board, in its discretion, may require that the balance or
    a portion of the balance in the Participant's Reserve Account or Rollover
    Account shall be paid as a lump sum where the balance or a portion of the

                                     -12-
<PAGE>

    balance due to the Participant or any Beneficiary under either or both the
    Reserve Account or the Rollover Account as of the Benefit Commencement Date
    is twenty five hundred dollars ($2,500) or less.

           (iii)  All lump sum payments made pursuant to this subparagraph shall
    be made on July 1 of the calendar year in which the Benefit Commencement
    Date otherwise occurs, or if later, the July 1 next following the Board's
    determination to make such payment.

    8.3    Death After Benefit Commencement.  If a Participant dies after his
           --------------------------------
Benefit Commencement Date, no benefits shall be payable other than the remaining
benefits due to the Participant under the Plan which shall be paid to his
Beneficiary.

    8.4    Benefit Determination and Payment Procedure.  The Administrator shall
           -------------------------------------------
make all determinations concerning eligibility for benefits under the Plan, the
time or terms of payment, and the form or manner of payment to the Participant
(or the Participant's Beneficiary in the event of the death of the Participant).
The Administrator shall promptly notify the Corporation and, where payments are
to be made from a Rabbi Trust, the trustee thereof, of each such determination
that benefit payments are due and provide to the Corporation or trustee all
other information necessary to allow the Corporation or trustee to carry out
said determination, whereupon the Corporation or trustee shall pay such benefits
in accordance with the Administrator's determination.

    8.5    Payments to Minors and Incompetents.  If a Participant or Beneficiary
           -----------------------------------
entitled to receive any benefits hereunder is a minor or is adjudged to be
legally incapable of giving valid receipt and discharge for such benefits, or is
deemed so by the Administrator, benefits will be paid to such person as the
Administrator may designate for the benefit of such Participant or Beneficiary.
Such payments shall be considered a payment to such Participant or Beneficiary
and shall, to the extent made, be deemed a complete discharge of any liability
for such payments under the Plan.

    8.6    Distribution of Benefit When Distributee Cannot Be Located.  The
           ----------------------------------------------------------
Administrator shall make all reasonable attempts to determine the identity
and/or whereabouts of a Participant entitled to benefits under the Plan,
including the mailing by certified mail of a notice to the last known address
shown on the Corporation's or the Administrator's records.  If the Administrator
is unable to locate such a person entitled to benefits hereunder, or if there
has been no claim made for such benefits, the Corporation shall continue to hold
the benefit due such person, subject to any applicable statute of escheats.

    8.7    Claims Procedure.
           ----------------

    8.7(a) A Participant or Beneficiary (the "claimant") shall have the right to
request any benefit under the Plan by filing a written claim for any such
benefit with the Administrator on a form provided by the Administrator for such
purpose.  The Administrator shall give such claim due consideration and shall
either approve or deny it in whole or in part.  Within ninety (90) days
following receipt of such claim by the Administrator, notice of any denial
thereof, in whole or in part, shall be delivered to the claimant or his duly
authorized representative or such notice of denial shall be sent by mail to the
claimant or his duly authorized representative at the address shown on the claim
form or such individual's last known address.  The aforesaid ninety (90) day
response period may be extended to one hundred eighty (180) days after receipt
of the claimant's claim if special circumstances exist and if written notice of
the extension to one hundred eighty (180) days indicating the special
circumstances involved and the date by which a decision is expected to be made
is furnished to the claimant within ninety (90) days after receipt of the
claimant's claim.  Such notice of denial shall be written in a manner calculated
to be understood by the claimant and shall:

           (i)    Set forth a specific reason or reasons for the denial,

           (ii)   Make specific reference to the pertinent provisions of the
    Plan on which any denial of benefits is based,

                                     -13-
<PAGE>

           (iii)  Describe any additional material or information necessary for
    the claimant to perfect the claim and explain why such material or
    information is necessary, and

           (iv)   Explain the claim review procedure of subparagraph 8.7(b).

If such notice of denial is not provided to the claimant within the applicable
ninety (90) day or one hundred eighty (180) day period, the claimant's claim
shall be considered denied for purposes of the claim review procedure of
subparagraph 8.7(b).

    8.7(b) A Participant or Beneficiary whose claim filed pursuant to
subparagraph 8.7(a) has been denied, in whole or in part, may, within sixty (60)
days following receipt of notice of such denial, or following the expiration of
the applicable period provided for in subparagraph 8.7(a) for notifying the
claimant of the decision on the claim if no notice of denial is provided, make
written application to the Administrator for a review of such claim, which
application shall be filed with the Administrator.  For purposes of such review,
the claimant or his duly authorized representative may review Plan documents
pertinent to such claim and may submit to the Administrator written issues and
comments respecting such claim.  The Administrator may schedule and hold a
hearing.  The Administrator shall make a full and fair review of any denial of a
claim for benefits and issue its decision thereon promptly, but no later than
sixty (60) days after receipt by the Administrator of the claimant's request for
review, or one hundred twenty (120) days after such receipt if a hearing is to
be held or if other special circumstances exist and if written notice of the
extension to one hundred twenty (120) days is furnished to the claimant within
sixty (60) days after the receipt of the claimant's request for a review.  Such
decision shall be in writing, shall be delivered or mailed by the Administrator
to the claimant or his duly authorized representative in the manner prescribed
in subparagraph 8.7(a) for notices of approval or denial of claims, and shall:

           (i)    Include specific reasons for the decision,

           (ii)   Be written in a manner calculated to be understood by the
    claimant, and

           (iii)  Contain specific references to the pertinent Plan provisions
    on which the decision is based.

The Administrator's decision made in good faith shall be final.

                                  ARTICLE IX
                            Beneficiary Designation
                            -----------------------

    9.1    Beneficiary Designation.
           -----------------------

    9.1(a) Each Participant shall be entitled to designate a Beneficiary
hereunder by filing a designation in writing with the Administrator on the form
provided for such purpose.  Any Beneficiary designation made hereunder shall be
effective only if signed and dated by the Participant and delivered to the
Administrator prior to the time of the Participant's death.  Any Beneficiary
designation hereunder shall remain effective until changed or revoked hereunder.

    9.1(b) Any Beneficiary designation may include multiple, contingent or
successive Beneficiaries and may specify the proportionate distribution to each
Beneficiary.

    9.1(c) A Beneficiary designation may be changed by the Participant at any
time, or from time to time, by filing a new designation in writing with the
Administrator.

    9.1(d) If the Participant dies without having designated a Beneficiary, or
if the Beneficiary so designated has predeceased him, then his estate shall be
deemed to be his Beneficiary.

    9.1(e) If a Beneficiary of the Participant shall survive the Participant but
shall die before the Participant's entire benefit under the Plan has been
distributed, then, absent any other provision by the Participant, the unpaid
balance thereof

                                     -14-
<PAGE>

shall be distributed to the such other beneficiary named by the
deceased Beneficiary to receive his interest or, if none, to the estate of the
deceased Beneficiary.  If multiple beneficiaries are designated, absent any
other provision by the Participant, those named or the survivor of them shall
share equally in any amounts payable hereunder.

                                   ARTICLE X
                                  Withdrawals
                                  -----------

    10.1   Severe Financial Hardship Withdrawals.
           -------------------------------------

    10.1(a)  In the event of any Severe Financial Hardship and upon written
request of a Participant (or, if subsequent to his death, his Beneficiary), the
Administrator in its sole discretion may pay in one lump sum to the Participant
(or his Beneficiary) all or any portion of the Participant's Reserve Account
and/or Rollover Account.  Any such payment shall be limited to that amount
reasonably necessary to alleviate the Severe Financial Hardship, and any
remaining payments or account balances shall be appropriately adjusted.

    10.1(b)  For purposes hereof, a "Severe Financial Hardship" means an
unforeseeable emergency, and shall be defined in a manner consistent with the
meaning ascribed thereto under Section 457 of the Code as a severe financial
hardship of the Participant (or, if subsequent to his death, his Beneficiary)
resulting from a sudden and unexpected illness, accident or loss of property due
to casualty, or any other similar extraordinary and unforeseeable circumstance
arising as a result of events beyond the control of the Participant (or, if
subsequent to his death, his Beneficiary).

    10.2   Other Withdrawals.  Upon written request at any time prior to pay out
           -----------------
of the entire Reserve Account and Rollover Account, a Participant may elect to
withdraw all or a portion of his Reserve Account and/or his Rollover Account
subject to the following forfeiture provisions:

           (i)    The Participant shall forfeit ten percent (10%) of the amount
    elected to be withdrawn.  Such forfeited amount shall be subtracted from the
    account from which withdrawn but shall not at any time be distributed to the
    Participant; and

           (ii)   The Participant shall forfeit the right to make additional
    deferrals of Salary and/or of his Earnings Fund Share and Executive Bonus
    for one full Plan Year following the withdrawal.

It is intended that the forfeitures described herein constitute a "substantial
limitation or restriction" on the right to receive the amounts held in the
Reserve Account and the Rollover Account as that term is used for purposes of
Sections 61 and 451 of the Code.  Any remaining payments or account balances
shall be appropriately adjusted.

                                  ARTICLE XI
                              Plan Administration
                              -------------------

    11.1   Plan Administrator.  The Plan shall be administered by a plan
           ------------------
administrator (the "Administrator") to be appointed by and serve at the pleasure
of the Plan Sponsor, or in the absence of the appointment or in the event any
person so appointed shall fail or cease to serve, the Plan Sponsor shall be the
Administrator.

    11.2   Power and Authority of Administrator.  The Administrator is hereby
           ------------------------------------
vested with all the power and authority necessary in order to carry out its
duties and responsibilities in connection with the administration of the Plan,
including the power to interpret the provisions of the Plan.  For such purpose,
the Administrator shall have the power to adopt rules and regulations consistent
with the terms of the Plan.

                                     -15-
<PAGE>

                                  ARTICLE XII
                       Amendment and Termination of Plan
                       ---------------------------------

    12.1      Amendment or Termination of the Plan.
              ------------------------------------

    12.1(a)   The Plan may be terminated at any time by the Board of the Plan
Sponsor.  The Plan may be amended in whole or in part from time to time by the
Board of the Plan Sponsor effective as of any date specified.  No amendment or
termination shall operate:

           (i)   To decrease a Participant's Reserve Account balance or Rollover
    Account balance as of the earlier of the date on which the amendment or
    termination is approved by the Board of the Plan Sponsor or the date on
    which an instrument of amendment or termination is signed or approved on
    behalf of the Plan Sponsor, or

          (ii)   To vary the distribution plan of a Participant under paragraph
    6.2 after the Participant retires or otherwise ceases to be employed by the
    Affiliated Employers without the consent of the Participant or, if deceased,
    his Beneficiary.

    12.1(b)   Notwithstanding the foregoing, the Board hereby delegates to the
Chief Executive Officer the right to modify, alter, or amend the Plan in whole
or in part to make any technical modification, alteration or amendment which in
the opinion of counsel for the Plan Sponsor is required by law and is deemed
advisable by the Chief Executive Officer and to make any other modification,
alteration or amendment which does not, in the Chief Executive Officer's view,
substantially increase costs, contributions or benefits and does not materially
affect the eligibility, vesting or benefit accrual or allocation provisions of
the Plan.

                                 ARTICLE XIII
                      Adoption by Additional Corporations
                      -----------------------------------

    13.1      Adoption by Additional Corporations.  Any Subsidiary of the Plan
              -----------------------------------
Sponsor may adopt the Plan with the consent of the Board of the Plan Sponsor and
approval by its Board.

                                  ARTICLE XIV
                                 Miscellaneous
                                 -------------

    14.1      Non-assignability.  The interests of each Participant under the
              -----------------
Plan are not subject to claims of the Participant's creditors; and neither the
Participant, nor his Beneficiary, shall have any right to sell, assign, transfer
or otherwise convey the right to receive any payments hereunder or any interest
under the Plan, which payments and interest are expressly declared to be non-
assignable and non-transferable.

    14.2      Right to Require Information and Reliance Thereon.  The
              -------------------------------------------------
Corporation and Administrator shall have the right to require any Participant,
Beneficiary or other person receiving benefit payments to provide it with such
information, in writing, and in such form as it may deem necessary to the
administration of the Plan and may rely thereon in carrying out its duties
hereunder. Any payment to or on behalf of a Participant or Beneficiary in
accordance with the provisions of the Plan in good faith reliance upon any such
written information provided by a Participant or any other person to whom such
payment is made shall be in full satisfaction of all claims by such Participant
and his Beneficiary; and any payment to or on behalf of a Beneficiary in
accordance with the provision so the Plan in good faith reliance upon any such
written information provided by such Beneficiary or any other person to whom
such payment is made shall be in full satisfaction of all claims by such
Beneficiary.

                                     -16-
<PAGE>

    14.3   Notices and Elections.  All notices required to be given in writing
           ---------------------
and all elections required to be made in writing, under any provision of the
Plan, shall be invalid unless made on such forms as may be provided or approved
by the Administrator and, in the case of a notice or election by a Participant
or Beneficiary, unless executed by the Participant or Beneficiary giving such
notice or making such election.  Subject to limitations under applicable
provisions of the Code or the Act (such as the requirement that deferral
elections be in writing), the Administrator is authorized in its discretion to
accept other means for receipt of effective notices, elections, consent and/or
application by Participants and/or Beneficiaries, including but not limited to
interactive voice systems, on such basis and for such purposes as it determines
from time to time.

    14.4   Delegation of Authority.  Whenever the Plan Sponsor or any other
           -----------------------
Corporation is permitted or required to perform any act, such act may be
performed by its President or Chief Executive Officer or other person duly
authorized by its President or Chief Executive Officer or the Board of the
Corporation.

    14.5   Service of Process.  The Administrator shall be the agent for service
           ------------------
of process on the Plan.

    14.6   Governing Law.  The Plan shall be construed, enforced and
           -------------
administered in accordance with the laws of the Commonwealth of Virginia, and
any federal law which preempts the same.

    14.7   Binding Effect.  The Plan shall be binding upon and inure to the
           --------------
benefit of the Corporation, its successors and assigns, and the Participant and
his heirs, executors, administrators and legal representatives.

    14.8   Severability.  If any provision of the Plan should for any reason be
           ------------
declared invalid or unenforceable by a court of competent jurisdiction, the
remaining provisions shall nevertheless remain in full force and effect.

    14.9   No Effect on Employment Agreement.  The Plan shall not be considered
           ---------------------------------
or construed to modify, amend or supersede any employment or other agreement
between the Corporation and the Participant heretofore or hereafter entered into
unless so specifically provided.

    14.10  Gender and Number.  In the construction of the Plan, the masculine
           -----------------
shall include the feminine or neuter and the singular shall include the plural
and vice-versa in all cases where such meanings would be appropriate.

    14.11  Titles and Captions.  Titles and captions and headings herein have
           -------------------
been inserted for convenience of reference only and are to be ignored in any
construction of the provisions hereof.

    IN WITNESS WHEREOF, the Plan Sponsor has caused the Plan to be signed on its
behalf by its duly authorized officer or member of its Board of Directors on the
day, month and year aforesaid.

                                        SOUTHERN STATES COOPERATIVE,
                                              INCORPORATED, Plan Sponsor

                                        By:  /s/ Gene E. James
                                           ----------------------------------
                                        Its   President & CEO
                                           ----------------------------------

                                     -17-
<PAGE>

                                SOUTHERN STATES
                          DEFERRED COMPENSATION PLAN
                          (As Restated July 1, 1995)

                   Chief Executive Officer Incentive Program
                                  Appendix A
                                  ----------

    A-1.1     Definitions.
              -----------

    A-1.1(a)  "EBT":  Earnings before tax determined based on the audited
consolidated financial statements of the Plan Sponsor for the Fiscal Year and
appearing as "Savings from continuing operations before income taxes and
cumulative effect of change in accounting principles" adjusted for years
beginning on or after July 1, 1999 to exclude the equity in undistributed
earnings (losses) of associated companies for the Fiscal Year, net of deferred
income taxes.

    A-1.1(b)  "Incentive Bank":

                 (i)  With respect to the first complete Fiscal Year of any
       Chief Executive Officer's term, One Hundred Fifty Thousand Dollars
       ($150,000) plus any Incentive Formula Award for the Fiscal Year.

                (ii)  With respect to any Fiscal Year remaining in the Chief
       Executive Officer's term, the ending balance in the Incentive Bank for
       the prior Fiscal Year less the Incentive Distribution attributable to the
       prior Fiscal Year, plus any Incentive Formula Award for the Fiscal Year.

    Notwithstanding the foregoing, the ending balance in the Incentive Bank for
    the prior Fiscal Year, beginning with the ending balance for the Fiscal Year
    ending June 30, 1999, shall not reflect a negative balance.

      A-1.1(c)     "Incentive Formula Award": 1.5% of the amount by which EBT
for the current Fiscal Year exceeds 10% of the sum of the Plan Sponsor's total
Stockholders' and Patrons Equity determined at the end of the prior Fiscal Year.
For the first five (5) Fiscal Years of employment as Chief Executive Officer, no
Incentive Formula Award will be granted for a partial Fiscal Year. After
completion of five (5) complete Fiscal Years of employment as Chief Executive
Officer, the Incentive Formula Award shall be determined based on the pro rata
portion of the Fiscal Year during which the Chief Executive Officer was employed
in that capacity.

      A-1.1(d)     "Incentive Distribution": One-third (1/3) of the balance in
the Incentive Bank as of the end of a Fiscal Year, provided, however, no
Incentive Distribution shall be payable for any Fiscal Year in which the Plan
Sponsor incurs a loss.

      A-1.1(e)     "Stockholders' and Patrons Equity": Stockholders' and
Patrons Equity determined based on audited consolidated financial statements of
the Plan Sponsor at the end of the prior Fiscal Year adjusted to exclude
preferred stocks and accumulated equity in undistributed earnings (losses) of
associated companies, net of deferred income taxes.

      A-1.2        Chief Executive Officer Incentive Program.  An Incentive
                   -----------------------------------------
Distribution determined each Fiscal Year shall be payable to the Chief Executive
Officer following the close of such Fiscal Year. If no deferral election is in
place under the Plan, the Incentive Distribution shall be paid to the Chief
Executive Officer, or if deceased, to his Beneficiary, as soon as reasonably
practical following the completion of the audit of the financial statements for
the Fiscal Year.

      A-1.3        Forfeiture of Incentive Bank.  The entire positive balance of
                   ----------------------------
the Incentive Bank shall be forfeited in the event the Chief Executive Officer
terminates employment with the Plan Sponsor (whether voluntarily or
involuntarily), for any reason including death or disability, prior to
completing at least three (3) complete Fiscal Years of employment as

                                     -A-1-
<PAGE>

Chief Executive Officer. The lesser of the entire positive balance of the
Incentive Bank or One Hundred Fifty Thousand Dollars ($150,000) of the Incentive
Bank will be forfeited in the event the Chief Executive Officer terminates
employment with the Plan Sponsor (whether voluntarily or involuntarily), for any
reason (including death or disability) other than Normal Retirement under the
Retirement Plan for Employees of Southern States, prior to the completing at
least five (5) complete Fiscal Years of employment as Chief Executive Officer.

      A-1.4  Payout of Incentive Bank Balance.  Upon the Chief Executive
             --------------------------------
Officer's termination of employment with the Plan Sponsor for any reason, the
balance in the Incentive Bank, not forfeited pursuant to paragraph A-1.3, shall
be paid to the Chief Executive Officer (or, if deceased, his Beneficiary) as
soon as reasonably possible following the end of the Fiscal Year.

      A-1.5  Board Discretion.  The Board reserves the right at any time to
             ----------------
adjust any component of the Chief Executive Officer Incentive Program, including
the right to adjust EBT for unusual gains or losses incurred during a Fiscal
Year. However, the Board may not reduce the balance in the Incentive Bank or
defer payment of an Incentive Distribution for which no deferral election is in
place under the Plan.

      A-1.6  Separate Incentive Bank for Each CEO.  In the event that the Board
             ------------------------------------
continues the Chief Executive Officer Incentive Program for an individual who
succeeds the individual in that position on July 1, 1997, a new and separate
Incentive Bank shall be established for such successor.

                                     -A-2-
<PAGE>

                                SOUTHERN STATES
                          DEFERRED COMPENSATION PLAN
                          (As Restated July 1, 1995)

                     Eligible Executives Incentive Program
                                  Appendix B
                                  ----------

    B-1.1     Definitions.
              -----------

    B-1.1(a)  "EBT":  Earnings before tax determined based on the audited
consolidated financial statements of the Plan Sponsor for the Fiscal Year and
appearing as "Savings from continuing operations before income taxes and
cumulative effect of change in accounting principles".

    B-1.1(b)  "Incentive Bank":

                (i) With respect to the first complete Fiscal Year of any
   Eligible Executive's term, any Incentive Formula Award for the Fiscal Year.

               (ii) With respect to any Fiscal Year remaining in the Eligible
   Executives' term, the ending balance in the Incentive Bank for the prior
   Fiscal Year less the Incentive Distribution attributable to the prior Fiscal
   Year, plus any Incentive Formula Award for the Fiscal Year.

      B-1.1(c)    "Incentive Formula Award":  .40% of the amount by which EBT
for the current Fiscal Year exceeds a 4% return on Total Assets determined at
the end of the prior Fiscal Year.

      B-1.1(d)    "Incentive Distribution":  One-half (1/2) of the balance in
the Incentive Bank as of the end of a Fiscal Year.

      B-1.1(e)    "Total Assets": Total assets determined based on the audited
consolidated financial statements of the Plan Sponsor for the Fiscal Year and
appearing at the bottom of the balance sheet of the annual report of the Plan
Sponsor.

      B-1.2       Eligible Executives Incentive Program.  An Incentive
                  -------------------------------------
Distribution determined each Fiscal Year shall be payable to each Eligible
Executive following the close of such Fiscal Year. If no deferral election is in
place under the Plan, the Incentive Distribution shall be paid to the Eligible
Executive, or if deceased, to his Beneficiary, as soon as reasonably practical
following the completion of the audit of the financial statements for the Fiscal
Year.

      B-1.3       Payout of Incentive Bank Balance.  Upon an Eligible
                  --------------------------------
Executive's termination of employment with the Plan Sponsor for any reason, the
balance in the Incentive Bank shall be paid to such Eligible Executive (or, if
deceased, his Beneficiary) as soon as reasonably possible following the end of
the Fiscal Year.

      B-1.4       Board Discretion.  The Board reserves the right at any time to
                  ----------------
adjust any component of the Eligible Executives Incentive Program, including the
right to adjust EBT for unusual gains or losses incurred during a Fiscal Year.
However, the Board may not reduce the balance in the Incentive Bank or defer
payment of an Incentive Distribution for which no deferral election is in place
under the Plan.

      B-1.5       Separate Incentive Bank for Each Eligible Executives.  In the
                  ----------------------------------------------------
event that the Board continues the Eligible Executives Incentive Program for any
individual who succeeds the individuals in those positions on July 1, 1998, a
new and separate Incentive Bank shall be established for such successor.

                                     -B-1-

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