Document:

EXECUTION COPY

                2000 SHAREHOLDERS' AGREEMENT

      This 2000 Shareholders' Agreement ("Agreement"), dated
as  of  the 27th day of March, 2000, is among ETABLISSEMENTS
DELHAIZE FRERES ET CIE "LE LION" S.A., a Belgian corporation
("Delhaize"),  DELHAIZE THE LION AMERICA, INC.,  a  Delaware
corporation   and  wholly  owned  subsidiary   of   Delhaize
("Detla"),  and  DELHAIZE AMERICA, INC.,  a  North  Carolina
corporation (the "Company").

                    STATEMENT OF PURPOSE

      Delhaize and Detla (hereinafter collectively  referred
to   as   the   "Shareholders")  own,  in   the   aggregate,
approximately  46.6% percent of the issued  and  outstanding
nonvoting  Class A common stock, par value $.50  per  share,
and 55.6% percent of the issued and outstanding voting Class
B  common  stock, par value $.50 per share, of the  Company.
The  Company recognizes the expertise and experience of  the
Shareholders  in  the retail food business  and  desires  to
ensure  that the Company will continue to benefit from  such
expertise  and experience.  The Company and the Shareholders
recognize the importance of retaining the current management
of  the  Company, and desire that management should continue
to have full responsibility for the day to day management of
the  Company,  subject  to the authority  of  the  Board  of
Directors.  The Shareholders and the Company recognize  that
they  have had a mutually beneficial relationship  of  long-
standing  (in  part  by  reason of the corporate  governance
provisions of certain past agreements among the Shareholders
and  other past and present management shareholders  of  the
Company)   and  believe  that  the  continuation   of   such
relationship on a long-term basis is in the best interest of
the  Company.   The  Shareholders and  the  Company  further
recognize that provision must be made for the nomination  of
independent  and certain other directors.  The  Shareholders
and the Company desire to achieve their purposes by entering
into this Agreement relating to certain corporate governance
matters affecting the Company, including the voting of stock
or other securities of the Company now or hereafter owned by
the Shareholders.

                          AGREEMENT

      l.   Nomination and Election of Directors.  Subject to
the  fiduciary duties of directors under North Carolina  law
or  except  as  the  Board of Directors of  the  Company  by
Special  Vote  (as  defined  in  Section  3  hereof)   shall
otherwise direct:

           (a)  Simultaneously with the consummation of  the
transactions contemplated by that certain Agreement and Plan
of  Merger, dated as of August 17, 1999, by and between  the
Company  and  Hannaford Bros. Co. (the "Merger  Agreement"),
the  Company's Board of Directors shall cause the bylaws  of
the  Company with respect to the Nominating Committee of the
Board of Directors to be consistent with the provisions  set
forth  in this paragraph 1.  Subject to the consummation  of
such   transactions,  the  composition  of  the   Nominating
Committee, the composition of each slate of directors to  be
nominated  and the other responsibilities of the  Nominating
Committee shall be as set forth below:

                (i)   The Nominating Committee shall consist
     of  three  directors,  one  of  whom  shall  have  been
     designated  by the Shareholders, one of whom  shall  be
     the  Chief  Executive Officer of the  Company  (or  his
     designee  from  among  the  members  of  the  Board  of
     Directors of the Company) and one of whom shall  be  an
     independent director;

                (ii) The slate of directors nominated by the
     Nominating  Committee  shall  consist  of  twelve  (12)
     persons,  six (6) of whom shall have been  proposed  by
     the  Chief  Executive Officer of Delhaize  (hereinafter
     the  "Delhaize Designees"), two (2) of whom shall  have
     been  proposed  by the Chief Executive Officer  of  the
     Company (hereinafter the "CEO Designees"), and four (4)
     of whom shall be independent directors;

                (iii)      In  the event that  any  director
     ceases  to  be  a  director of the  Company,  then  the
     Nominating  Committee  shall  nominate  an  appropriate
     person  to  fill  such vacancy, selected  in  the  same
     manner  as  the  director  who ceased  being  director.
     Thus, in the event a Delhaize Designee ceases to  be  a
     director, the vacancy left thereby shall be filled by a
     new  Delhaize  Designee; in the event  a  CEO  Designee
     ceases to be a director, the vacancy left thereby shall
     be  filled by a new CEO Designee; and in the  event  an
     independent  director  ceases to  be  a  director,  the
     vacancy  left  thereby  shall  be  filled  by   a   new
     independent director.

                (iv) The Nominating Committee shall meet  at
     least  once a year to determine the proposed  slate  of
     directors  to  be  submitted to the annual  meeting  of
     shareholders for election.  In addition, it shall  meet
     each  time a meeting of the shareholders is called  for
     the  purpose  of  electing one or more  directors.   It
     shall  also meet within thirty (30) days of  notice  of
     any  vacancy  occurring in the Board  of  Directors  to
     nominate  a  director  to fill such  vacancy.   It  may
     solicit  the  views of shareholders of the Company  for
     suggestions   with   regard  to  possible   independent
     directors.   It  will assess the independence  of  each
     such  candidate (which shall at a minimum require  that
     the  candidate not be currently or previously employed,
     nor  currently paid as a consultant, by the Company  or
     its   affiliates  or  officers  or  by  either  of  the
     Shareholders   or   their  respective   affiliates   or
     officers)  and  will consider any other  potential  for
     conflict of interest of each such candidate.   It  will
     determine    the    appropriate   qualifications    for
     directorship and will evaluate candidates  against  the
     requisite qualifications;

               (v)  The Nominating Committee shall recommend
     its slate of directors or any individual nominee to the
     Board  of  Directors of the Company.  Approval  of  any
     such  nomination(s) by the Board of Directors shall  be
     by  Special  Vote.   In the event  that  the  Board  of
     Directors  fails to approve a slate or  any  individual
     nominee  proposed  by  the  Nominating  Committee,  the
     Nominating  Committee  shall meet  to  propose  another
     slate,  or  nominee, as the case may be, acceptable  to
     the Board of Directors; and

                (vi)  Meetings  of the Nominating  Committee
     shall be held at such place as may from time to time be
     fixed by the Chairman thereof in the Notice of Meeting.
     Any  meeting may be held without notice if all  members
     are  present  or if notice is waived in writing  either
     before or after the meeting by those not present.   Two
     members of the Nominating Committee shall constitute  a
     quorum  and  all decisions of the Nominating  Committee
     shall  require  the affirmative vote of  at  least  two
     members.   The  Nominating Committee  may  take  action
     without a meeting upon unanimous written consent signed
     by  all  members of the Nominating Committee.  Meetings
     of  the  Nominating Committee may be held by  means  of
     conference    telephone   or   similar   communications
     equipment  and  participation in such a  meeting  shall
     constitute presence in person at such meeting.

            (b)    Notwithstanding  any  provision  in  this
paragraph 1 to the contrary, if at any time it is determined
that  the  composition of the Company's Board  of  Directors
does  not comply with applicable corporate governance  rules
contained in Section 3 of the New York Stock Exchange Listed
Company  Manual or similar rules of any national  securities
exchange   or  automated  quotation  system  on  which   the
Company's securities may be listed (the "Requirement"),  the
Nominating  Committee  shall meet to  determine  the  action
necessary to comply with the Requirement and shall recommend
such  action,  including  the nomination  of  an  additional
director  or  additional directors and the  removal  of  any
director  or directors.  The Board of Directors, by  Special
Vote,  shall  take such actions as are necessary  to  comply
with the Requirement, but which to the extent possible shall
be  consistent  with the intentions of the  parties  as  set
forth in this Agreement.

           (c)   In  the event that the Merger Agreement  is
terminated   prior  to  consummation  of  the   transactions
contemplated  thereunder, the Company's Board  of  Directors
shall  amend the bylaws of the Company with respect  to  the
Nominating  Committee  of  the  Board  of  Directors  to  be
consistent  with the provisions set forth in this  paragraph
1,  except that the following provision shall be included in
lieu  of  paragraph 1(a)(ii) above:  "The slate of directors
nominated by the Nominating Committee shall consist  of  ten
(10)  persons, four (4) of whom shall have been proposed  by
the  Chief  Executive Officer of Delhaize  (hereinafter  the
"Delhaize  Designees"),  two (2) of  whom  shall  have  been
proposed  by  the  Chief Executive Officer  of  the  Company
(hereinafter  the  "CEO Designees"), and four  (4)  of  whom
shall be independent directors";

      2.    Voting Agreement.  At each election of directors
of  the  Company, the Shareholders shall vote  their  voting
shares as follows:

               (i)  In the event cumulative voting is not in
     effect  for  such  election,  to  elect  the  slate  of
     directors  proposed  by  the Nominating  Committee  and
     approved by the Board of Directors; and

               (ii) In the event cumulative voting is in effect for such
     election of directors, first, to the extent necessary, to
     elect the Delhaize Designees and thereafter to retain or
     remove any such Delhaize Designees as the Shareholders shall
     direct; second, to the extent possible, to elect the CEO
     Designees and thereafter to retain or remove any such CEO
     Designees as the CEO shall direct; and third, to the extent
     possible, to elect the independent directors nominated by
     the Nominating Committee and thereafter to retain or remove
     any such independent directors as the Nominating Committee
     shall direct.  The Shareholders agree not to participate,
     directly or indirectly, in any effort to cause cumulative
     voting to be in effect for any election of directors of the
     Company.

     3.   Bylaws.

          (a)    During  the  term  of  the  Agreement,  the
     Company's  bylaws  shall  provide  that  the  Board  of
     Directors  may not, without an affirmative vote  of  at
     least 70 percent of the directors ("Special Vote"):

                     (A)   Approve  the  nomination  of  any
     person  or  persons  for  election  to  the  Board   of
     Directors or elect a chief executive officer;

                     (B)   Authorize any contract  involving
     payment  by the Company of cash or property  valued  in
     excess of $500,000, including, without limitation,  the
     purchase,  sale or leasing of property or the incurring
     of  indebtedness, except transactions relating  to  the
     leasing  or  construction  of  stores,  warehouses  and
     related  facilities  or any other  transaction  in  the
     ordinary course of business;

                      (C)    Approve  or  authorize  capital
     expenditures of more than $500,000 in any one  instance
     or  $1,000,000  in  the aggregate in any  fiscal  year,
     except   expenditures  relating  to  the   leasing   or
     construction   of   stores,  warehouses   and   related
     facilities  or  any other transaction in  the  ordinary
     course of business;

                     (D)  Authorize the issuance or sale  of
     stock  or  other  securities  of  the  Company  or  any
     subsidiary  of the Company, or options or warrants  for
     or   obligations  convertible  into   such   stock   or
     securities,  except the issuance of  stock  options  or
     stock  or  both,  as the case may be, pursuant  to  the
     Company's 1996 Employee Stock Incentive Plan (and, upon
     adoption,  the  Company'  2000 Stock  Incentive  Plan),
     Employee   Stock  Purchase  Plan  and  Employee   Stock
     Ownership   Plan  and  other  employee  benefit   plans
     approved by the Board of Directors;

                     (E)   Sell  or otherwise dispose  of  a
     substantial part of the Company's assets other than  in
     the ordinary course of business;

                     (F)  Amend the charter or the bylaws of
     the Company; or

                     (G)   Approve  for  submission  to  the
     shareholders  of  the  Company  for  their  approval  a
     proposal for the amendment of the Company's charter  or
     the merger or consolidation of the Company with or into
     any    other   corporation   or   the   reorganization,
     recapitalization  or  liquidation   of   the   Company;
     provided,  that any Special Vote approving  any  action
     set  forth  in  this paragraph 3(a) may  specify  other
     limitations  which  shall not  be  exceeded  without  a
     further Special Vote.

                 (b)   The  parties  acknowledge  that   the
     provisions of subparagraphs 3(a)(B), (C), (E), (F)  and
     (G)  are  currently  set forth in  the  bylaws  of  the
     Company.   Subparagraphs 3(a)(A) and 3(a)(D)  shall  be
     submitted  to  the shareholders of the Company  at  the
     next annual meeting of the shareholders for approval in
     accordance with the requirements of North Carolina  law
     as  an  amendment to, and restatement  of,  Article  4,
     Sections  6(a) and (d), respectively, of the bylaws  of
     the  Company,  and  shall not be effective  until  such
     approval is granted.  The Shareholders shall vote  each
     share of common stock of the Company beneficially owned
     by  them in favor of such approval.  Until such time as
     such  amendment  and  restatement  of  the  bylaws   is
     approved  by  the  requisite shareholder  vote  of  the
     Company, the current provisions of such sections in the
     bylaws shall remain in full force and effect.

      4.    Term.  This Agreement shall be effective  for  a
term  commencing  on the date hereof and  ending  April  30,
2007;  provided that this Agreement shall terminate  in  the
event  that the Shareholders' aggregate ownership of  voting
shares  of the Company shall be reduced to less than 10%  of
the aggregate outstanding voting shares of the Company.

      5.    Binding Nature.  This Agreement shall be binding
upon and shall inure to the benefit of the Company, Delhaize
and  Detla and their respective successors and assigns until
the expiration of the term of this Agreement.  Any successor
(whether   direct   or   indirect   by   purchase,   merger,
consolidation or otherwise) to all or substantially  all  of
the business and/or assets of Delhaize, Detla or the Company
shall  expressly assume and agree to perform this  Agreement
in  the  same  manner  and  to  the  same  extent  that  the
respective  parties would be required to perform  it  if  no
such succession had taken place.

     6.   Assignment.  Neither this Agreement nor any rights
hereunder may be assigned without the prior written  consent
of  the other parties hereto and prior to any assignment the
assignee must agree in writing to be bound by the terms  and
conditions of this Agreement.

      7.   Governing Law.  This Agreement shall be construed
in  accordance with the laws of the State of North  Carolina
applicable  to  contracts made and to be performed  entirely
within such state.

       8.    Amendment.   This  Agreement  may  be  amended,
modified, superseded, cancelled, renewed or extended only by
a  written instrument executed by the parties hereto and, in
the  case of the Company, approved by a Special Vote of  its
Board of Directors.

      9.    Notices.   Any  notice  or  communication  given
pursuant  hereto by any of the parties hereto to  the  other
parties  shall  be  in writing and personally  delivered  or
mailed  by  registered or certified mail or  by  telegraphic
means as follows:

                    If to Delhaize:

                         Etablissements Delhaize
                         Freres et Cie "Le Lion" S.A.
                         rue Osseghem, 53
                         1080 Brussels, Belgium

                    With a copy to:

                         Carl H. Amon III, Esq.
                         White & Case
                         1155 Avenue of the Americas
                         New York, New York 10036

                    If to Detla:

                         Delhaize The Lion America, Inc.
                         Suite 2160
                         Atlanta Plaza
                         950 East Pace Ferry Road
                         Atlanta, Georgia 30326

                    With a copy to:

                         Carl H. Amon III, Esq.
                         White & Case
                         1155 Avenue of the Americas
                         New York, New York 10036

                    If to the Company:

                         Delhaize America, Inc.
                         Post Office Box 1330
                         Salisbury, North Carolina 28145-1330

                    With a copy to:

                         Richard L. Wyatt, Jr.
                         Akin, Gump, Strauss, Hauer & Feld, L.L.P.
                         1333 New Hampshire Ave., N.W.
                         Suite 400
                         Washington, D.C. 20036

or  to such other address as hereafter shall be furnished in
writing by any Shareholder to the other Shareholders.

      10.  Entire Agreement.  This Agreement sets forth  the
entire  understanding and agreement among the parties hereto
with respect to the subject matter hereof and supersedes all
prior  agreements, arrangements and understandings,  written
or  oral,  relating to the subject matter hereof,  including
but  not limited to the 1994 Shareholders' Agreement,  dated
as  of September 15, 1994, by and among Delhaize, Detla, and
the  Company, which 1994 Shareholders' Agreement  is  hereby
terminated.

       11.    No  Employment.   Nothing  contained  in  this
Agreement  shall  be construed to constitute  an  employment
agreement with regard to any person.

      12.   Headings.   The headings in  the  Agreement  are
solely  for convenience of reference and shall be  given  no
effect  in  the  construction  or  interpretation  of   this
Agreement.

      13.  Severability.  If any provision of this Agreement
is  held by a court of competent jurisdiction to be invalid,
void  or unenforceable, the balance of this Agreement  shall
remain  in  full force and effect and shall  in  no  way  be
affected, impaired or invalidated thereby.

      14.   Counterparts.  This Agreement  may  be  executed
simultaneously in two or more counterparts,  each  of  which
shall  be deemed an original, but all of such together shall
constitute one and the same instrument.

            [The next page is the signature page]

     IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed and delivered as of  the  date
first above written.

                         ETABLISSEMENTS DELHAIZE FRERES
                              ET CIE "LE LION" S.A.

                         By: Gui de Vaucleroy

                         By: Pierre-Olivier Beckers

                         DELHAIZE THE LION AMERICA, INC.

                         By: Pierre-Olivier Beckers
                         Its:

                         DELHAIZE AMERICA, INC.

                         By: R.William McCanless
                         Its:DELHAIZE AMERICA, INC.

                  2000 STOCK INCENTIVE PLAN

                 (As Adopted March 27, 2000)

                   DELHAIZE AMERICA, INC.

                  2000 STOCK INCENTIVE PLAN

1.   Purpose.

           The  purpose  of  this  Plan  is  to  provide  an
incentive to the employees, individuals who have accepted an
offer  of  employment,  officers, consultants  and  eligible
directors  of  Delhaize  America,  Inc.,  a  North  Carolina
corporation (the "Company"), and thereby encourage  them  to
devote  their abilities and industry to the success  of  the
Company's  business  enterprise.  It is intended  that  this
purpose  be  achieved by extending to employees, individuals
who   have   accepted  an  offer  of  employment,  officers,
consultants   and   directors  of  the   Company   and   its
Subsidiaries an added long-term incentive for high levels of
performance  and  unusual  efforts  through  the  grant   of
Incentive  Stock  Options, Nonqualified  Stock  Options  and
Restricted Stock (as each term is herein defined).

2.   Definitions.

          For purposes of the Plan:

  2.1.  "Agreement" means the written agreement between  the
Company  and an Optionee or Grantee evidencing the grant  of
an   Option  or  Award  and  setting  forth  the  terms  and
conditions thereof.

  2.2. "Award" means a grant of Restricted Stock.

  2.3. "Board" means the Board of Directors of the Company.

  2.4.  "Change  in  Capitalization" means any  increase  or
reduction in the number of Shares, or any change (including,
but  not  limited to, a change in value) in  the  Shares  or
exchange of Shares for a different number or kind of  shares
or  other  securities of the Company or another corporation,
by  reason of a reclassification, recapitalization,  merger,
consolidation,  reorganization,  reincorporation,  spin-off,
split-up,  issuance  of  warrants or rights  or  debentures,
stock  dividend,  stock split or reverse stock  split,  cash
dividend,  property  dividend, combination  or  exchange  of
shares,  repurchase of shares, change in corporate structure
or otherwise.

  2.5.  "Code" means the Internal Revenue Code of  1986,  as
amended.

  2.6.  "Committee"  means the committee,  as  described  in
Section  3.1, appointed by the Board from time  to  time  to
administer the Plan and to perform the functions  set  forth
herein.

  2.7. "Company" means Delhaize America, Inc.

  2.8. "Director" means a director of the Company.

  2.9. "Disability" means:

          (a)   in the case of an Optionee or Grantee  whose
     employment with the Company or a Subsidiary is  subject
     to  the  terms of an employment agreement between  such
     Optionee  or  Grantee  and the Company  or  Subsidiary,
     which  employment agreement includes  a  definition  of
     "Disability,"  the term "Disability" as  used  in  this
     Plan  or any Agreement shall have the meaning set forth
     in  such  employment agreement during the  period  that
     such employment agreement remains in effect; and

          (b)  in all other cases, the term "Disability"  as
     used  in  this  Plan  or  any Agreement  shall  mean  a
     physical   or   mental  infirmity  which  impairs   the
     Optionee's    or   Grantee's   ability    to    perform
     substantially  his or her duties for a  period  of  one
     hundred eighty (180) consecutive days.

  2.10.      "Division" means any of the operating units  or
divisions  of  the Company designated as a Division  by  the
Committee.

  2.11.      "EBITDA" means earnings before interest, taxes,
depreciation and amortization.

  2.12.      "Eligible  Director" means a  director  of  the
Company  who  is  not  an employee of  the  Company  or  any
Subsidiary.

  2.13.      "Eligible Individual" means any director (other
than an Eligible Director), officer, employee of the Company
or  a Subsidiary or individual who has accepted an offer  of
employment  from  the  Company  or  a  Subsidiary,  or   any
consultant of the Company or a Subsidiary, designated by the
Committee  as eligible to receive Options or Awards  subject
to the conditions set forth herein.

  2.14.     "Exchange Act" means the Securities Exchange Act
of 1934, as amended.

  2.15.     "Fair Market Value" on any date means the closing
sales  price  of  the Shares on such date on  the  principal
national securities exchange on which such Shares are listed
or admitted to trading, or, if such Shares are not so listed
or admitted to trading, the average of the per Share closing
bid price and per Share closing asked price on such date  as
quoted  on  the  National Association of Securities  Dealers
Automated  Quotation System or such other  market  in  which
such prices are regularly quoted, or, if there have been  no
published bid or asked quotations with respect to Shares  on
such  date,  the  Fair  Market  Value  shall  be  the  value
established by the Board in good faith and, in the  case  of
an Incentive Stock Option, in accordance with Section 422 of
the Code.

  2.16.     "Grantee" means a person to whom an Award has been
granted under the Plan.

  2.17.       "Incentive  Stock  Option"  means  an   Option
satisfying the requirements of Section 422 of the  Code  and
designated by the Committee as an Incentive Stock Option.

  2.18.      "Nonemployee Director" means a director of  the
Company  who is a "nonemployee director" within the  meaning
of Rule 16b-3 promulgated under the Exchange Act.

  2.19.     "Nonqualified Stock Option" means an Option that
is not an Incentive Stock Option.

  2.20.     "Option" means a Nonqualified Stock Option or an
Incentive Stock Option or either or both of them.

  2.21.     "Optionee" means a person to whom an Option  has
been granted under the Plan.

  2.22.     "Outside Director" means a director of the Company
who  is  an "outside director" within the meaning of Section
162(m)   of   the  Code  and  the  regulations   promulgated
thereunder.

  2.23.      "Parent" means any corporation that is a parent
corporation  (within the meaning of Section  424(e)  of  the
Code) with respect to the Company.

  2.24.       "Performance  Cycle"  means  the  time  period
specified  by  the Committee at the time a performance-based
Award  is  granted  during  which  the  performance  of  the
Company, a Subsidiary or a Division will be measured.

  2.25.     "Performance Objectives" has the meaning set forth
in Section 6.4(b) hereof.

  2.26.       "Plan" means the Delhaize America,  Inc.  2000
Stock  Incentive Plan, as amended and restated from time  to
time.

  2.27.      "Reload  Option" means an Option  that  may  be
granted  when  an  Optionee pays all or  a  portion  of  the
purchase  price  and withholding taxes  of  an  Option  with
previously owned Shares.

  2.28.      "Restricted  Stock"  means  Shares  issued   or
transferred  to an Eligible Individual or Eligible  Director
pursuant to Section 6 hereof.

  2.29.     "Shares" means the Class A common stock, par value
$0.50 per share, of the Company.

  2.30.      "Subsidiary" means any corporation  that  is  a
subsidiary corporation (within the meaning of Section 424(f)
of  the  Code)  with respect to the Company,  including  any
limited  liability company that is disregarded  for  Federal
tax  purposes or treated as a corporate subsidiary under the
Code.

  2.31.      "Ten-Percent  Stockholder"  means  an  Eligible
Individual, who, at the time an Incentive Stock Option is to
be  granted  to  him  or her, owns (within  the  meaning  of
Section  422(b)(6) of the Code) stock possessing  more  than
ten  percent (10%) of the total combined voting power of all
classes  of  stock  of the Company, or  of  a  Parent  or  a
Subsidiary.

3.   Administration.

  3.1. The authority to control and manage the operation and
administration of the Plan shall be vested in the Committee,
which  shall hold meetings at such times as may be necessary
for  the  proper administration of the Plan.  The  Committee
shall  keep minutes of its meetings. A quorum shall  consist
of  a  majority  of  the  members of the  Committee,  and  a
majority  of  a  quorum  may  authorize  any  action.    The
foregoing notwithstanding, with respect to Options or Awards
that:   (i)  are  intended to qualify as "performance-based"
under Section 162(m) of the Code, and/or (ii) are granted to
individuals  who qualify as "insiders" under Section  16  of
the  Exchange  Act,  (A) any Committee members  who  do  not
qualify   as   "Outside   Directors"   and/or   "Nonemployee
Directors,"  as the case may be, shall have no authority  to
act  and shall automatically be recused from any action with
respect   to  Options  or  Awards,  and  (B)  the  remaining
qualifying   directors   shall   be   authorized   to    act
independently  without further approval. No  member  of  the
Committee  shall be liable for any action, failure  to  act,
determination  or  interpretation made in  good  faith  with
respect  to  this Plan or any transaction hereunder,  except
for   liability  arising  from  his  or  her   own   willful
misfeasance, gross negligence or reckless disregard  of  his
or  her duties. The Company hereby agrees to indemnify  each
member  of the Committee for all costs and expenses and,  to
the  extent  permitted  by  applicable  law,  any  liability
incurred  in  connection with defending against,  responding
to,  negotiating for the settlement of or otherwise  dealing
with  any  claim,  cause of action or dispute  of  any  kind
arising in connection with any actions in administering this
Plan  or  in  authorizing or denying  authorization  to  any
transaction hereunder. Notwithstanding the foregoing, if the
Committee does not exist, or for any other reason determined
by  the Board, the Board may take any action under the  Plan
that would otherwise be the responsibility of the Committee;
provided, however, that if any members of the Board  do  not
qualify  as Outside Directors, only the Committee  appointed
above  may grant Options or Awards that are intended  to  be
performance-based under Section 162(m).

  3.2. Subject to the express terms and conditions set forth
herein, the Committee shall have the power from time to time
to:

          (a)   determine  those  Eligible  Individuals  and
     Eligible  Directors to whom Options  shall  be  granted
     under  the  Plan and the number of such Options  to  be
     granted  and  to  prescribe the  terms  and  conditions
     (which  need  not  be identical) of each  such  Option,
     including the purchase price per Share subject to  each
     Option, and make any amendment or modification  to  any
     Option  Agreement  consistent with  the  terms  of  the
     Plan;

          (b)    select   those  Eligible  Individuals   and
     Eligible  Directors  to whom Awards  shall  be  granted
     under  the  Plan and determine the number of Shares  to
     be  granted pursuant thereto, determine the  terms  and
     conditions of each Award including the restrictions  or
     Performance Objectives relating to Shares, and to  make
     any   amendment   or  modification  to  any   Agreement
     consistent with the terms of the Plan;

          (c)   construe and interpret the Plan, Options and
     Awards  granted hereunder and to establish,  amend  and
     revoke rules and regulations for the administration  of
     the  Plan,  including, but not limited  to,  correcting
     any  defect  or supplying any omission, or  reconciling
     any  inconsistency in the Plan or in any Agreement,  in
     the  manner  and to the extent it shall deem  necessary
     or  advisable so that the Plan complies with applicable
     law  including  Rule 16b-3 under the Exchange  Act  and
     the  Code  to  the extent applicable, and otherwise  to
     make  the  Plan  fully effective.   All  decisions  and
     determinations by the Committee in good  faith  in  the
     exercise  of  this  power shall be final,  binding  and
     conclusive  upon  the  Company, its  Subsidiaries,  the
     Optionees  and  Grantees, and all other persons  having
     any interest therein;

          (d)   determine  the  duration  and  purposes  for
     leaves  of absence which may be granted to an  Optionee
     or  Grantee on an individual basis without constituting
     a  termination of employment or service for purposes of
     the Plan;

          (e)   exercise its discretion with respect to  the
     powers  and  rights granted to it as set forth  in  the
     Plan;

          (f)    except   to   the  extent   prohibited   by
     applicable  law  or the applicable  rules  of  a  stock
     exchange,  the Committee may allocate all or  any  part
     of  its responsibilities and powers to any one or  more
     of  its members and may delegate all or any part of its
     responsibilities  and powers to any person  or  persons
     selected by it, which allocation or delegation  may  be
     revoked by the Committee at any time; and

          (g)   generally, to exercise such  powers  and  to
     perform  such acts as are deemed necessary or advisable
     to  promote  the  best interests of  the  Company  with
     respect to the Plan.

4.   Stock Subject to the Plan.

  4.1. The Shares subject to Options and Awards that shall be
reserved  for the purposes of the Plan, shall  be  from  the
Company's  authorized but unissued Shares or out  of  Shares
held  in the Company's treasury, or partly out of each, such
number  of  Shares as shall be determined by the Board.   An
aggregate  of 8,000,000 Shares may be issued or  transferred
pursuant  to this Plan plus the number of Shares  that  have
not  been  awarded under the 1996 Employee  Stock  Incentive
Plan  of  Food  Lion,  Inc. (the  "1996  Plan")  as  of  the
Effective  Date  (including those that may be  forfeited  or
cancelled  under the 1996 Plan after the effective  date  of
this Plan).

     No  employee  shall  be granted in  any  calendar  year
Options to purchase more than 400,000 Common Shares.

     No Eligible Individual may be awarded more than 150,000
Shares  of  Restricted  Stock  that  are  intended   to   be
performance-based compensation in any calendar year.

     No more than 8,000,000 Shares shall be granted pursuant
to Options intended to be Incentive Stock Options.

     In  the event of a Change in Capitalization, the  Board
or  Committee  shall conclusively determine the  appropriate
adjustments,  if  any, to (i) the maximum number  of  Shares
with  respect  to which Options and Awards may  be  granted,
(ii)  the  maximum  number  of  Shares  or  other  stock  or
securities  with respect to which Options or Awards  may  be
granted  in any calendar year, (iii) the maximum  number  of
Shares  which  may  be granted pursuant to  Incentive  Stock
Options,  (iv)  the  number  of Shares  or  other  stock  or
securities  which  are  subject to  outstanding  Options  or
Awards  and the purchase price therefor, if applicable,  and
(v) the Performance Objectives.

     In  connection with the grant of an Option or an Award,
the  number  of  Shares available for grant under  the  Plan
shall be reduced by the number of Shares in respect of which
the Option or Award is granted.

  4.2.  Whenever any outstanding Option or Award or  portion
thereof expires, is canceled or is otherwise terminated  for
any  reason without having been exercised or without payment
having  been made in respect of the entire Option or  Award,
the  Shares allocable to the expired, canceled or  otherwise
terminated portion of the Option or Award may again  be  the
subject of Options or Awards granted hereunder.

  4.3. Whenever any portion of an Option under this Plan  or
the  1996  Plan is paid for with previously held Shares  (by
either  actual delivery or attestation), only the difference
between  (i)  the number of Shares issued upon exercise  and
(ii)  the  number of Shares transferred in  payment  of  the
purchase  price shall be counted for purposes of determining
the  maximum number of Shares available for grant under  the
Plan.

5.   Option Grants.

  5.1. Authority of Committee.  Subject to the provisions of
the  Plan,  the Committee, or the persons to whom  authority
has  been  delegated  under Paragraph  (f)  of  Section  3.2
hereof, shall have full and final authority to select  those
Eligible Individuals and Eligible Directors who will receive
Options,  and  the terms and conditions that  shall  be  set
forth   in  the  applicable  Agreements.   Some  terms   and
conditions  that may, but are not required  to  be  included
are:   a  provision allowing the issuance of a Reload Option
and  a  provision  providing acceleration of  exercisability
under  certain  conditions  as  may  be  determined  by  the
Committee.  Other terms and conditions not inconsistent with
this Plan may be included in Agreements in the discretion of
the Committee.

  5.2. Purchase Price.  The purchase price or the manner  in
which  the  purchase  price is to be determined  for  Shares
under  each Option shall be determined by the Committee  and
set  forth  in  the Agreement; provided, however,  that  the
purchase  price per Share under each Incentive Stock  Option
shall  not be less than 100% of the Fair Market Value  of  a
Share on the date the Option is granted (110% in the case of
an Incentive Stock Option granted to a Ten-Percent Stockholder).

  5.3. Maximum Duration.  Options granted hereunder shall be
for  such  term  as the Committee shall determine,  provided
that  an  Incentive  Stock Option shall not  be  exercisable
after  the expiration of ten (10) years from the date it  is
granted  (five  (5) years in the case of an Incentive  Stock
Option   granted  to  a  Ten-Percent  Stockholder)   and   a
Nonqualified Stock Option shall not be exercisable after the
expiration  of ten (10) years from the date it  is  granted.
The Committee may, subsequent to the granting of any Option,
extend  the term thereof, but in no event shall the term  as
so  extended  exceed the maximum term provided  for  in  the
preceding sentence.

  5.4. Vesting.  Each Option shall become exercisable in such
installments (which need not be equal) and at such times  as
may  be  designated by the Committee and set  forth  in  the
Agreement.  To the extent not exercised, installments  shall
accumulate and be exercisable, in whole or in part,  at  any
time after becoming exercisable, but not later than the date
the  Option  expires.   The  Committee  may  accelerate  the
exercisability of any Option or portion thereof at any time.

  5.5.  Modification.  No modification of  an  Option  shall
adversely  alter  or impair any rights or obligations  under
the Option without the Optionee's consent.

  5.6. Non-Transferability.  Unless set forth in the Agreement
evidencing the Option (other than an Incentive Stock Option)
at  the  time of grant or at any time thereafter, an  Option
granted  hereunder shall not be transferable by the Optionee
to  whom  granted except by will or the laws of descent  and
distribution  or  pursuant  to a  domestic  relations  order
(within  the  meaning of Rule 16a-12 promulgated  under  the
Exchange  Act),  and an Option may be exercised  during  the
lifetime of such Optionee only by the Optionee or his or her
guardian or legal representative.  The terms of such  Option
shall   be   final,   binding  and   conclusive   upon   the
beneficiaries,   executors,   administrators,   heirs    and
successors of the Optionee.

  5.7. Method of Exercise.  The exercise of an Option shall be
made only by a written notice delivered in person or by mail
to  the  Secretary of the Company at the Company's principal
executive  office, specifying the number  of  Shares  to  be
purchased  and accompanied by payment therefor and otherwise
in  accordance  with  the Agreement pursuant  to  which  the
Option  was  granted.   The purchase price  for  any  Shares
purchased  pursuant to the exercise of an  Option  shall  be
paid,  as determined by the Committee in its discretion,  in
either  of the following forms (or any combination thereof):
(i)  cash or (ii) the transfer or attestation of Shares that
have  been held at least six months to the Company upon such
terms  and  conditions as determined by the  Committee.   In
addition,  Options  may be exercised  through  a  registered
broker-dealer pursuant to such cashless exercise  procedures
(other than Share withholding) which are, from time to time,
deemed  acceptable by the Committee, and the  Committee  may
authorize  that the purchase price payable upon exercise  of
an  Option  may  be  paid  by having  Shares  withheld  that
otherwise would be acquired upon such exercise.  Any  Shares
transferred  to the Company (or withheld upon  exercise)  as
payment  of  the  purchase price under an  Option  shall  be
valued at their Fair Market Value on the date of exercise of
such Option.  The value of the number of Shares that may  be
withheld  for the payment of taxes may not be in  excess  of
the  minimum  withholding requirements.   At  the  Company's
request, the Optionee shall deliver the Agreement evidencing
the Option to the Secretary of the Company who shall endorse
thereon  a  notation  of  such  exercise  and  return   such
Agreement to the Optionee.  No fractional Shares (or cash in
lieu thereof) shall be issued upon exercise of an Option and
the  number  of  Shares that may be purchased upon  exercise
shall be rounded to the nearest number of whole Shares.  The
Committee,  in its discretion, may also permit  simultaneous
sale of Shares upon exercise through a broker-dealer.

  5.8. Rights of Optionees.  Optionee shall not be deemed for
any  purpose  to be the owner of any Shares subject  to  any
Option  unless  and  until (i) the Option  shall  have  been
exercised  pursuant to the terms thereof, (ii)  the  Company
shall have issued and delivered Shares to the Optionee,  and
(iii)  the  Optionee's name shall have  been  entered  as  a
stockholder   of  record  on  the  books  of  the   Company.
Thereupon, the Optionee shall have full voting, dividend and
other  ownership rights with respect to such Shares, subject
to  such  terms and conditions as may be set  forth  in  the
applicable Agreement.

6.   Restricted Stock.

  6.1.  Grant.   The Committee may grant Awards to  Eligible
Individuals and Eligible Directors, which shall be evidenced
by  an Agreement between the Company and the Grantee.   Each
Agreement   shall  contain  such  restrictions,  terms   and
conditions   as  the  Committee  may,  in  its   discretion,
determine  and  (without  limiting  the  generality  of  the
foregoing)  such Agreements may require that an  appropriate
legend  be  placed on Share certificates.  Awards  shall  be
subject to the terms and provisions set forth below in  this
Section 6.

  6.2. Rights of Grantee.  Shares of Restricted Stock granted
pursuant  hereunder shall be recorded in  the  name  of  the
Grantee as soon as reasonably practicable after the Award is
granted  provided that the Grantee has executed an Agreement
evidencing  the  Award  and any other  documents  which  the
Committee may require as a condition to the issuance of such
Shares.   If  a Grantee shall fail to execute the  Agreement
evidencing  an  Award  or  any  other  documents  which  the
Committee  may require within the time period prescribed  by
the  Committee at the time the Award is granted,  the  Award
shall  be  null  and void.  Unless the Committee  determines
otherwise  and  as set forth in the Agreement,  the  Grantee
shall  have no rights of a stockholder with respect to  such
Shares,  including  no right to vote the Shares  or  receive
dividends or other distributions with respect to the Shares,
until  the  restrictions with respect to such  Shares  shall
have lapsed in the manner set forth in Section 6.4.

  6.3. Non-transferability.  Until all restrictions upon the
Shares  of Restricted Stock awarded to a Grantee shall  have
lapsed  in the manner set forth in Section 6.4, such  Shares
shall not be sold, transferred or otherwise disposed of  and
shall  not  be pledged or otherwise hypothecated, nor  shall
they be delivered to the Grantee.

  6.4. Lapse of Restrictions.

          (a)   Generally.   Restrictions  upon  Shares   of
     Restricted Stock awarded hereunder shall lapse at  such
     time  or times and on such terms and conditions as  the
     Committee may determine.  The Agreement evidencing  the
     Award  shall  set  forth  any such  restrictions.   The
     Board  may accelerate the lapse of all or a portion  of
     the restrictions on an Award at any time.

          (b)   Performance  Objectives.  If  the  Committee
     has  determined  that  the restrictions  on  Shares  of
     Restricted   Stock   awarded  shall   only   lapse   in
     accordance    with    Performance    Objectives,    the
     Performance  Objectives may be expressed  in  terms  of
     (i)  earnings per Share, (ii) Share price,  (iii)  pre-
     tax  profits, (iv) net earnings, (v) return  on  equity
     or  assets, (vi) revenues, (vii) EBITDA, (viii)  market
     share or market penetration or (ix) any combination  of
     the  foregoing.   Performance  Objectives  may  be   in
     respect  of  the  performance of the  Company  and  its
     Subsidiaries (which may be on a consolidated basis),  a
     Subsidiary  or a Division.  Performance Objectives  may
     be  absolute or relative and may be expressed in  terms
     of   a  progression  within  a  specified  range.   The
     Performance  Objectives with respect to  a  Performance
     Cycle  shall be established in writing by the Committee
     by  the  earlier of (i) the date on which a quarter  of
     the  Performance  Cycle has elapsed or  (ii)  the  date
     which  is  ninety  (90) days after the commencement  of
     the  Performance  Cycle, and in  any  event  while  the
     performance  relating  to  the  Performance  Objectives
     remain  substantially uncertain.  At the time of  grant
     of   a   performance-base  Award,  and  to  the  extent
     permitted  under  Section 162(m) of the  Code  and  the
     regulations  thereunder, the Committee may provide  for
     the manner in which the Performance Objectives will  be
     measured  to reflect the impact of specified  corporate
     transactions, extraordinary events, accounting  changes
     and  other  similar  events.   Prior  to  the  vesting,
     payment,  settlement  or lapsing  of  any  restrictions
     with  respect  to  any Award that  is  intended  to  be
     performance-based compensation, made to a  Grantee  who
     is   subject  to  Section  162(m)  of  the  Code,   the
     Committee  shall certify in writing that the applicable
     Performance Objectives have been satisfied.

  6.5. Delivery of Shares.  Upon the lapse of the restrictions
on  Shares of Restricted Stock, the Committee shall cause  a
stock  certificate  to  be delivered  to  the  Grantee  with
respect to such Shares, free of all restrictions hereunder.

7.   Effect of a Termination of Employment.

          The  Agreement evidencing the grant of each Option
and  each  Award  shall set forth the terms  and  conditions
applicable  to  such Option or Award upon a  termination  or
change  in  the status of the employment of the Optionee  or
Grantee  by  the  Company, a Subsidiary or a Division  which
shall  be as the Committee may, in its discretion, determine
at the time the Option or Award is granted or thereafter.

8.   Adjustment Upon Changes in Capitalization.

  8.1. Adjustments to Incentive Stock Options.  Any adjustment
that  may  be  made pursuant to Section 4.1  hereof  in  the
Shares  or  other stock or securities subject to outstanding
Incentive  Stock  Options upon a Change  in  Capitalization,
(including any adjustments in the purchase price)  shall  be
made  in such manner as not to constitute a modification  as
defined  by  Section 424(h)(3) of the Code and only  to  the
extent  otherwise permitted by Sections 422 and 424  of  the
Code.

  8.2. Terms of Adjusted Options and Awards.  If, by reason of
a  Change in Capitalization, a Grantee of an Award shall  be
entitled to, or an Optionee shall be entitled to exercise an
Option  with respect to, new, additional or different shares
of  stock  or securities, such new, additional or  different
shares  shall thereupon be subject to all of the conditions,
restrictions and performance criteria which were  applicable
to  the  Shares subject to the Award or Option, as the  case
may be, prior to such Change in Capitalization.

9.   Effect of Certain Transactions.

          Except  as otherwise provided in an Agreement,  in
the  event  of  (i)  the liquidation or dissolution  of  the
Company or (ii) a merger or consolidation of the Company  (a
"Transaction"), the Plan and the Options and  Awards  issued
hereunder shall continue in effect in accordance with  their
respective  terms, except that following a Transaction  each
Optionee and Grantee shall be entitled to receive in respect
of  each Share subject to any outstanding Options or Awards,
as  the  case may be, upon exercise of any Option or payment
or  transfer  in respect of any Award, the same  number  and
kind   of   stock,  securities,  cash,  property  or   other
consideration  that each holder of a Share was  entitled  to
receive  in the Transaction in respect of a Share; provided,
however,  that  such stock, securities,  cash,  property  or
other  consideration  shall remain subject  to  all  of  the
conditions, restrictions and performance criteria which were
applicable  to  the  Options  and  Awards  prior   to   such
Transaction.

10.  Interpretation.

  10.1.     Rule 16b-3.  The Plan is intended to comply with
Rule  16b-3  promulgated under the  Exchange  Act,  and  the
Committee  shall interpret and administer the provisions  of
the  Plan or any Agreement in a manner consistent therewith.
Any   provisions  inconsistent  with  such  Rule  shall   be
inoperative and shall not affect the validity of the Plan.

  10.2.     Section 162(m).  Unless otherwise expressly stated
in  the relevant Agreement, each Option and Award subject to
Performance Objectives granted to an Eligible Individual who
may be a "covered employee" under Section 162(m) of the Code
is  intended to be performance-based compensation within the
meaning  of Section 162(m)(4)(C) of the Code.  The Committee
shall  not  be entitled to exercise any discretion otherwise
authorized  hereunder with respect to any  such  Options  or
Awards  if  the ability to exercise such discretion  or  the
exercise   of  such  discretion  itself  would   cause   the
compensation attributable to such Options or Awards to  fail
to qualify as performance-based compensation.

11.  Termination and Amendment of the Plan.

          The  Plan shall terminate on the day preceding the
tenth  anniversary of the date of its adoption by the  Board
and no Option or Award may be granted thereafter.  The Board
may  sooner terminate the Plan and the Board may at any time
and  from  time to time amend, modify or suspend  the  Plan;
provided,   however,   that:    (a)   no   such   amendment,
modification,  suspension  or termination  shall  impair  or
adversely  alter  any Options or Awards theretofore  granted
under  the Plan, except with the consent of the Optionee  or
Grantee,  nor shall any amendment, modification,  suspension
or termination deprive any Optionee or Grantee of any Shares
which he or she may have acquired through or as a result  of
the  Plan;  and (b) to the extent necessary under applicable
law, no amendment shall be effective unless approved by  the
stockholders  of  the Company in accordance with  applicable
law.

12.  Non-Exclusivity of the Plan.

          The adoption of the Plan by the Board shall not be
construed as amending, modifying or rescinding any
previously approved incentive arrangement or as creating any
limitations on the power of the Board to adopt such  other
incentive arrangements as it may deem desirable, including,
without limitation, the granting of stock options otherwise
than under the Plan, and such arrangements may be either
applicable generally or only in specific cases.

13.  Limitation of Liability.

          As illustrative of the limitations of liability of
the  Company,  but  not intended to be  exhaustive  thereof,
nothing in the Plan shall be construed to:

                    (i)   give  any person any right  to  be
               granted an Option or Award other than at  the
               sole discretion of the Committee;

                    (ii)   give   any  person   any   rights
               whatsoever with respect to Shares  except  as
               specifically provided in the Plan;

                    (iii)     limit in any way the right  of
               the  Company  or any Subsidiary to  terminate
               the employment of any person at any time; or

                    (iv)  be  evidence of any  agreement  or
               understanding, expressed or implied, that the
               Company  will  employ  any  person   at   any
               particular  rate of compensation or  for  any
               particular period of time.

14.  Regulations and Other Approvals; Governing Law.

  14.1.     Except as to matters of federal law, the Plan and
the  rights  of  all  persons claiming  hereunder  shall  be
construed and determined in accordance with the laws of  the
State  of  North Carolina without giving effect to conflicts
of laws principles thereof.

  14.2.     The obligation of the Company to sell or deliver
Shares with respect to Options and Awards granted under  the
Plan  shall  be  subject to all applicable laws,  rules  and
regulations,  including  all applicable  federal  and  state
securities laws, and the obtaining of all such approvals  by
governmental   agencies  as  may  be  deemed  necessary   or
appropriate by the Committee.

  14.3.      The  Board  may make such  changes  as  may  be
necessary  or  appropriate  to comply  with  the  rules  and
regulations  of any government authority, or to  obtain  for
Eligible Individuals granted Incentive Stock Options the tax
benefits  under the applicable provisions of  the  Code  and
regulations promulgated thereunder.

  14.4.      Each  Option  and  Award  is  subject  to   the
requirement  that, if at any time the Committee  determines,
in   its  discretion,  that  the  listing,  registration  or
qualification  of Shares issuable pursuant to  the  Plan  is
required  by any securities exchange or under any  state  or
federal  law, or the consent or approval of any governmental
regulatory body is necessary or desirable as a condition of,
or  in  connection with, the grant of an Option or Award  or
the  issuance  of  Shares, no Options  or  Awards  shall  be
granted  or  payment made or Shares issued, in whole  or  in
part,  unless listing, registration, qualification,  consent
or  approval  has  been  effected or obtained  free  of  any
conditions as acceptable to the Committee.

  14.5.     Notwithstanding anything contained in the Plan or
any  Agreement  to  the  contrary, in  the  event  that  the
disposition of Shares acquired pursuant to the Plan  is  not
covered  by a then current registration statement under  the
Securities  Act of 1933, as amended (the "Securities  Act"),
and  is  not  otherwise exempt from such registration,  such
Shares  shall be restricted against transfer to  the  extent
required  by  the  Securities Act  and  Rule  144  or  other
regulations  thereunder.   The  Committee  may  require  any
individual receiving Shares pursuant to an Option  or  Award
granted  under the Plan, as a condition precedent to receipt
of  such Shares, to represent and warrant to the Company  in
writing  that  the  Shares acquired by such  individual  are
acquired without a view to any distribution thereof and will
not  be  sold  or  transferred other  than  pursuant  to  an
effective registration thereof under said Act or pursuant to
an  exemption  applicable under the Securities  Act  or  the
rules   and   regulations   promulgated   thereunder.    The
certificates  evidencing  any  of  such  Shares   shall   be
appropriately amended to reflect their status as  restricted
securities as aforesaid.

15.  Miscellaneous.

  15.1.     Multiple Agreements.  The terms of each Option or
Award  may differ from other Options or Awards granted under
the  Plan  at  the  same time, or at some other  time.   The
Committee may also grant more than one Option or Award to  a
given  Eligible Individual or Eligible Director  during  the
term  of the Plan, either in addition to, or in substitution
for,  one  or more Options or Awards previously  granted  to
that Eligible Individual or Eligible Director.

  15.2.     Withholding of Taxes.

          (a)   At  such  times  as an Optionee  or  Grantee
     recognizes  taxable  income  in  connection  with   the
     receipt   of  Shares  or  cash  hereunder  (a  "Taxable
     Event"),  the  Optionee or Grantee  shall  pay  to  the
     Company  an  amount  equal to the  federal,  state  and
     local  income  taxes  and  other  amounts  as  may   be
     required  by  law  to be withheld  by  the  Company  in
     connection  with  the Taxable Event  (the  "Withholding
     Taxes")  prior  to the issuance of such Shares  or  the
     payment  of  such  cash.  The Company  shall  have  the
     right  to  deduct  from  any  payment  of  cash  to  an
     Optionee  or Grantee an amount equal to the Withholding
     Taxes   in  satisfaction  of  the  obligation  to   pay
     Withholding  Taxes.  In satisfaction of the  obligation
     to  pay  Withholding Taxes to the Company, the Optionee
     or  Grantee  may  make  a written  election  (the  "Tax
     Election"),  which may be accepted or rejected  in  the
     discretion  of  the  Committee,  to  have  withheld   a
     portion  of  the Shares then issuable  to  him  or  her
     having  an  aggregate Fair Market Value  equal  to  the
     Withholding Taxes.

          (b)   If  an Optionee makes a disposition,  within
     the   meaning  of  Section  424(c)  of  the  Code   and
     regulations  promulgated thereunder, of  any  Share  or
     Shares   issued  to  such  Optionee  pursuant  to   the
     exercise  of an Incentive Stock Option within the  two-
     year  period  commencing on the day after the  date  of
     the  grant or within the one-year period commencing  on
     the  day  after the date of transfer of such  Share  or
     Shares  to the Optionee pursuant to such exercise,  the
     Optionee   shall,  within  ten  (10)   days   of   such
     disposition,  notify the Company thereof,  by  delivery
     of  written  notice  to the Company  at  its  principal
     executive office.

  15.3.     Effective Date.  The effective date of this Plan
(the  "Effective Date") shall be March 27, 2000 subject only
to the approval by the affirmative vote of the holders of  a
majority  of  the  securities of  the  Company  present,  or
represented, and  entitled  to vote at a meeting of
stockholders  duly  held in accordance with  the applicable
laws  of  the  State  of North Carolina within  twelve  (12)
months of the adoption of the Plan by the Board.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00012-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00012-of-00352.parquet"}]]