Document:

DELTA WOODSIDE GROUP

                           DEFERRED COMPENSATION PLAN

                                       FOR

                                  KEY MANAGERS

                  AMENDED AND RESTATED EFFECTIVE JUNE 30, 2000

<PAGE>
                             TABLE  OF  CONTENTS

                                                                    PAGE

 ARTICLE I. REFERENCES, CONSTRUCTION AND DEFINITIONS. . . . . . . .   1
           1.1    Adjustment Date . . . . . . . . . . . . . . . . .   1
           1.2    Beneficiary . . . . . . . . . . . . . . . . . . .   1
           1.3    Board . . . . . . . . . . . . . . . . . . . . . .   1
           1.4    Code. . . . . . . . . . . . . . . . . . . . . . .   1
           1.5    Committee . . . . . . . . . . . . . . . . . . . .   1
           1.6    [Reserved.]
           1.7    Compensation. . . . . . . . . . . . . . . . . . .   2
           1.8    Deemed Deferrals. . . . . . . . . . . . . . . . .   2
           1.9    Deferral Account. . . . . . . . . . . . . . . . .   3
          1.10    Deferral Election . . . . . . . . . . . . . . . .   3
          1.11    Disability. . . . . . . . . . . . . . . . . . . .   3
          1.12    Effective Date. . . . . . . . . . . . . . . . . .   3
          1.13    Elective Deferrals. . . . . . . . . . . . . . . .   3
          1.14    [Reserved.]
          1.15    Employee. . . . . . . . . . . . . . . . . . . . .   3
          1.16    Employment Year . . . . . . . . . . . . . . . . .   3
          1.17    ERISA . . . . . . . . . . . . . . . . . . . . . .   3
          1.18    Hour of Service . . . . . . . . . . . . . . . . .   3
          1.19    Installment Account . . . . . . . . . . . . . . .   4
          1.20    Interest Equivalent . . . . . . . . . . . . . . .   4
          1.21    Lump Sum Account. . . . . . . . . . . . . . . . .   4
          1.22    Month of Service. . . . . . . . . . . . . . . . .   4
          1.23    Named Fiduciary . . . . . . . . . . . . . . . . .   4
          1.24    Participant . . . . . . . . . . . . . . . . . . .   4
          1.25    Participating Company . . . . . . . . . . . . . .   4
          1.26    Plan. . . . . . . . . . . . . . . . . . . . . . .   4
          1.27    Plan Administrator. . . . . . . . . . . . . . . .   4
          1.28    Plan Year . . . . . . . . . . . . . . . . . . . .   4
          1.29    Retirement. . . . . . . . . . . . . . . . . . . .   4
          1.30    Savings Plan. . . . . . . . . . . . . . . . . . .   4
          1.31    Termination of Service. . . . . . . . . . . . . .   4
          1.32    Trigger Event . . . . . . . . . . . . . . . . . .   5
          1.33    Year of Service . . . . . . . . . . . . . . . . .   5

      ARTICLE II. ELIGIBILITY AND PARTICIPATION . . . . . . . . . .   5
           2.1    Eligibility . . . . . . . . . . . . . . . . . . .   5
           2.2    Participation . . . . . . . . . . . . . . . . . .   5
           2.3    Elective Deferrals. . . . . . . . . . . . . . . .   5
           2.4    Limitations on Elective Deferrals . . . . . . . .   5
           2.5    Deemed Deferrals. . . . . . . . . . . . . . . . .   6
           2.6    Method-of-Payment Election. . . . . . . . . . . .   6

<PAGE>
      ARTICLE III. ACCOUNTS OF PARTICIPANTS . . . . . . . . . . . .   6
           3.1    Accounts. . . . . . . . . . . . . . . . . . . . .   6
           3.2    Accounting of Lump Sum Account. . . . . . . . . .   6
           3.3    Accounting of Installment Account . . . . . . . .   6
           3.4    Accounting of Level-Payment Installment Account .   7

      ARTICLE IV. VESTING . . . . . . . . . . . . . . . . . . . . .   7

      ARTICLE V. BENEFITS . . . . . . . . . . . . . . . . . . . . .   8
           5.1    Method and Timing . . . . . . . . . . . . . . . .   8
           5.2    Payments to Beneficiary . . . . . . . . . . . . .   9
           5.3    Withholding Taxes; Employment Taxes . . . . . . .   9
           5.4    Payments To Relieve Financial Hardship. . . . . .  10

      ARTICLE VI. DESIGNATION OF BENEFICIARIES. . . . . . . . . . .  10
           6.1    Beneficiary Designation . . . . . . . . . . . . .  10
           6.2    Failure to Designate Beneficiary. . . . . . . . .  10

      ARTICLE VII. COMMITTEE. . . . . . . . . . . . . . . . . . . .  11
           7.1    Authority . . . . . . . . . . . . . . . . . . . .  11
           7.2    Voting. . . . . . . . . . . . . . . . . . . . . .  11
           7.3    Records . . . . . . . . . . . . . . . . . . . . .  11
           7.4    Liability . . . . . . . . . . . . . . . . . . . .  11
           7.5    Ministerial Duties. . . . . . . . . . . . . . . .  11

      ARTICLE VIII. AMENDMENT AND TERMINATION . . . . . . . . . . .  11

      ARTICLE IX. CLAIMS PROCEDURE. . . . . . . . . . . . . . . . .  11
           9.1    Filing of a Claim for Benefits. . . . . . . . . .  11
           9.2    Notification to Claimant of Decision. . . . . . .  12
           9.3    Procedure for Review. . . . . . . . . . . . . . .  12
           9.4    Decision on Review. . . . . . . . . . . . . . . .  12
           9.5    Action by Authorized Representative of Claimant .  12

      ARTICLE X. MISCELLANEOUS. . . . . . . . . . . . . . . . . . .  13
          10.1    Nonalienation of Benefits . . . . . . . . . . . .  13
          10.2    No Trust Created. . . . . . . . . . . . . . . . .  13
          10.3    No Employment Agreement . . . . . . . . . . . . .  13
          10.4    Funding Policy. . . . . . . . . . . . . . . . . .  13
          10.5    Binding Effect. . . . . . . . . . . . . . . . . .  13
          10.6    Entire Plan . . . . . . . . . . . . . . . . . . .  14
          10.7    Merger or Consolidation . . . . . . . . . . . . .  14
          10.8    Payment to Incompetent. . . . . . . . . . . . . .  14
          10.9    No Contributions. . . . . . . . . . . . . . . . .  14

<PAGE>
                              DELTA WOODSIDE GROUP
                           DEFERRED COMPENSATION PLAN
                                       FOR
                                  KEY MANAGERS

                  AMENDED AND RESTATED EFFECTIVE JUNE 30, 2000

                                    PREAMBLE

The  Participating  Companies  have established this Plan to contribute to their
long-range  growth. It is the intention of the parties that the Plan be unfunded
for  tax  purposes and for purposes of Title I of ERISA. A Participating Company
shall  be liable only with respect to obligations incurred pursuant to this Plan
for  its own Employees; no Participating Company shall be liable with respect to
benefits  due  an  Employee  of any other Participating Company. Under the Plan,
each year, each Participating Company awards a select group of its key Employees
with deferred benefits based on the Employee's Elective and Deemed Deferrals for
the  year.  Such  benefits are normally payable by that Participating Company to
its  Employees  or  their  beneficiaries  upon Retirement, Disability, death, or
other  Termination  of  Service.

               ARTICLE I. REFERENCES, CONSTRUCTION AND DEFINITIONS

Unless otherwise indicated, all references to articles, sections and subsections
shall  be  to  the  Plan as set forth herein. The Plan and all rights thereunder
shall  be  construed  and  enforced in accordance with ERISA and the laws of the
State  of South Carolina, to the extent that each may be applicable. The article
titles  and  the  captions preceding sections and subsections have been inserted
solely  as  a  matter  of convenience and in no way define or limit the scope or
intent  of  any  provisions.  Whenever  used  herein,  the singular includes the
plural,  the  masculine  includes  the  feminine.  Whenever  used  herein  and
capitalized,  the  following  terms  shall have the respective meaning indicated
unless  the  context  plainly  requires  otherwise.

1.1  ADJUSTMENT  DATE.  The  last  day  of  each calendar quarter, the date of a
Trigger  Event,  and  such  other  times  as  the  Committee  shall  establish.

1.2  BENEFICIARY.  The  beneficiary or beneficiaries designated by a Participant
pursuant  to  ARTICLE  VI  to receive the amount, if any, payable under the Plan
upon the death of such Participant, or, where there has been no such designation
or  an  invalid  designation,  the  individual  or entity, or the individuals or
entities,  who  will  receive  such  amount.

1.3  BOARD.  The  respective  Boards  of  Directors of each of the Participating
Companies.

1.4  CODE.  The  Internal  Revenue  Code  of  1986, as amended. All citations to
sections  of  the  Code  are  to  such sections as they may from time to time be
amended  or  renumbered.

1.5  COMMITTEE.  The  committee  which  administers  the  Plan and which is more
particularly  described in ARTICLE VII below. The Committee shall be constituted
by  the  individuals  who hold the following offices of Delta Mills, Inc.: Chief
Financial Officer, Controller, Delta Mills Divisional Executives: Executive VP -
Manufacturing,  Director  of  Human  Resources,  Director  of Operations, and VP
Synthetics  -  Women's  Wear.

1.6  [RESERVED.]

<PAGE>
1.7  COMPENSATION.  Compensation  with  respect  to  any  Participant means such
Participant's  wages  as  defined  in  Code   3401(a)  and all other payments of
compensation  by  a  Participating  Company  (in the course of the Participating
Company's  business  for  a  Plan  Year  for  which the Participating Company is
required  to  furnish the Participant a written statement under Code    6041(d),
6051(a)(3)  and  6052).  The  determination  of  Compensation  shall  be made by
excluding  moving expenses, income from stock options, income from stock awards,
income  from  incentive  stock  awards.

1.8  DEEMED DEFERRALS. With respect to a Participant, an amount equal to the SUM
of  SUBSECTIONS  (A)  and  (B)  below:

     (A)   During  each  Plan  Year,  the  difference  between:

           (i)  the Nonelective  Contribution and forfeitures allocation for the
Plan  Year  which  would have been credited to the account of the Participant in
the  Savings  Plan  had  the  Participant's  Elective  Deferrals under this Plan
counted  as  compensation under the Savings Plan for the Plan Year and had there
been  disregarded the compensation and annual addition limitations of 401(a)(17)
and  415  of  the Code and the corresponding provisions of the Savings Plan, and

          (ii) the Nonelective Contribution and forfeitures  for  the  Plan Year
actually  credited  to  the  Participant's  account  in  the  Savings Plan; PLUS

     (B)  Subject  to the limitations set forth in SUBSECTION (B)(II) below, and
less  the  amount set forth in SUBSECTION (B)(III) below, during each Plan Year,
the  following  amount:

          (i)  effective as of July 1, 1999,  an  amount  equal to the following
percentage  of  the  Participant's  Elective  Deferrals  for  such  Plan  Year:

          #  YEARS  OF  SERVICE  % OF THE PARTICIPANT'S
                                   ELECTIVE  DEFERRALS
               0-5                             25%
               5-10                            30%
               11-15                           35%
               16  and  over                   40%

          (ii)  The  amount  computed  under  SUBSECTION  (B)(I)  above shall be
limited  as  follows:

                    (a)  the  above  percentages  shall  not  be  applied to any
portion  of the Participant's Elective Deferrals which exceeds four percent (4%)
of  the  Participant's  Compensation,  and  in  computing  the  Participant's
Compensation,  there  shall  be  disregarded  any  portion of Compensation which
exceeds an amount equal to the compensation limitation of 401(a)(17) of the Code
as  adjusted  as  of  the  start  of  the  Plan  Year (e.g., $170,000 for 2000);

                    (b)  the  above  percentages  shall  not  be  applied to any
portion of the Participant's Elective Deferrals which exceeds an amount equal to
the  amount  set forth in Code 402(g)(1) as adjusted as of the start of the Plan
Year  (e.g.,  $10,500  for  2000);  and

                    (c)  for  purposes  of the above formula, "Years of Service"
shall  be  calculated  from  the  Participant's  most  recent  date  of  hire.

                                        2
<PAGE>
         (iii) from the amount computed pursuant to SUBSECTION (B)(I) above (and
as  limited as provided in SUBSECTION (B)(II) above), the amount of any matching
contribution  allocated  to the Participant's account under the Savings Plan for
the  Plan  Year  shall  be  subtracted.

1.9 DEFERRAL ACCOUNT. With respect to each Participant, the separate bookkeeping
account  (consisting  of the Participant's Lump Sum Account, Installment Account
and  Level-Payment  Installment  Account)  to  be  kept  with  respect  to  such
Participant.

1.10  DEFERRAL  ELECTION.  An  irrevocable  election by a Participant to defer a
portion  of Compensation for a Plan Year, such election to be made in the manner
prescribed  in  SECTION  2.3.  Amounts  so  deferred  are  "Elective Deferrals."

1.11  DISABILITY.  A  physical  or  mental  condition  under  which the Employee
qualifies  for  disability  benefits  under the long-term disability plan of the
Participating  Company  which  employs  the  Employee; provided, however, if the
Employee  is  not covered by such plan, the Employee shall be under a Disability
if  he  would  have  qualified  for  disability  benefits under the plan were he
covered  by  the plan; provided, further, if there is no such plan, the Employee
shall  be  under  a Disability if the Committee, in the exercise of its sole and
absolute  discretion,  determines  based  upon  competent  medical  evidence
satisfactory  to  the  Committee  that the Employee, after 60 days following the
expiration  of  any  sick  pay  to which the Participant may be entitled, cannot
perform  each  of  the  material  duties of the Employee's regular occupation by
reason  of  sickness  or  injury  .

1.12  EFFECTIVE  DATE.  The  original  Effective Date of this Plan is January 1,
1989.  The  Effective  Date  of this amended and restated Plan is June 30, 2000.

1.13  ELECTIVE  DEFERRALS.  With  respect  to a Participant for a Plan Year, the
amount  of  the  Participant's  Compensation  deferred  pursuant  to  a Deferral
Election.

1.14  [RESERVED.]

1.15  EMPLOYEE. An individual in the service of the Participating Company if the
relationship between him and the Participating Company is the legal relationship
of  employer  and  employee.

1.16  EMPLOYMENT  YEAR.  The 12-month period beginning on the Employee's date of
hire.

1.17 ERISA. The Employee Retirement Income Security Act of 1974, as amended. All
citations  to  sections  of  ERISA are to such sections as they may from time to
time  be  amended  or  renumbered.

1.18  HOUR  OF  SERVICE.  An  Hour  of  Service means (1) each hour for which an
Employee  is directly or indirectly compensated or entitled to compensation by a
Participating  Company  for  the  performance  of  duties  during the applicable
computation  period;  (2)  each  hour  for  which  an  Employee  is  directly or
indirectly  compensated  or  entitled to compensation by a Participating Company
(irrespective of whether the employment relationship has terminated) for reasons
other  than  performance  of  duties (such as vacation, holidays, sickness, jury
duty,  disability,  lay-off,  military  duty  or  leave  of  absence) during the
applicable  computation  period;  (3) each hour for which back pay is awarded or
agreed  to  by  a Participating Company without regard to mitigation of damages.
These  hours  will  be  credited  to  the Employee for the computation period or
periods  to  which  the  award or agreement pertains rather that the computation
period  in  which  the  award,  agreement  or payment is made. The same Hours of
Service  shall  not  be  credited both under (1) or (2), as the case may be, and
under  (3).

                                        3
<PAGE>
1.19  INSTALLMENT  ACCOUNT.  With  respect  to  each  Participant,  the  account
described  in  SECTION  3.3  below.

1.20  INTEREST  EQUIVALENT.  With  respect  to  each Adjustment Date, the dollar
amount to be added to the Participant's Lump Sum Account, Installment Account or
Level-Payment  Installment  Account, as the case may be, equal to the product of
the  amount  credited  to  the  account as of the next preceding Adjustment Date
reduced  by  one-half  of  the  amount  of  benefit payments made since the next
preceding  Adjustment  Date  (i.e.,  during  the "current calendar quarter") and
increased  by  one-half  of  the  Elective and Deemed Deferrals for the "current
calendar  quarter"  allocable  to  such  account,  times  THE GREATER OF (I) the
Average  AAA  Corporate  Bond Yield last published by Moody's Bond Survey before
the  next preceding Adjustment Date or (II) such other interest or yield rate as
the  Committee  may  designate for the Plan Year ending on such Adjustment Date.

1.21  LUMP  SUM ACCOUNT. With respect to each Participant, the account described
in  SECTION  3.2  below.

1.22 MONTH OF SERVICE. A Month of Service means a calendar month during any part
of  which  an  Employee  completed an Hour of Service; provided, however, that a
Participant  shall be credited with a Month of Service for each month during the
12-month  computation  period  in  which  he  has not incurred a 1-Year Break in
Service.

1.23  NAMED  FIDUCIARY.  Delta  Mills,  Inc.

1.24 PARTICIPANT. An Employee who has been notified pursuant to SECTION 2.1 that
he  is  eligible to participate in the Plan and who has made a Deferral Election
and  any  former  Employee  who  has  a  Deferral  Account  under  the  Plan.

1.25  PARTICIPATING COMPANY. Delta Woodside Industries, Inc., Delta Mills, Inc.,
and  Delta  Mills  Marketing,  Inc.  The  term  "Participating Company" shall be
construed  as  if  the  Plan were solely the Plan of such Participating Company,
unless  the context plainly requires otherwise.  Notwithstanding anything herein
to  the  contrary, with the consent of  Delta Mills, Inc., any other corporation
or  entity,  whether  an affiliate or subsidiary or not, may adopt this plan and
all  of  the  provisions  hereof,  and  participate  herein  and  be  known as a
Participating  Company.

1.26  PLAN. The Delta Woodside Group Deferred Compensation Plan for Key Managers
as  contained  herein  and  as  may  be  amended  from  time  to time hereafter.

1.27  PLAN  ADMINISTRATOR.  The  Committee.

1.28 PLAN YEAR. The period commencing January 1 and ending on the first December
31  thereafter.

1.29  RETIREMENT.  Termination of Service, other than on account of death, after
attaining  age  62.

1.30  SAVINGS  PLAN.  The Delta Woodside Industries, Inc. Savings and Investment
Plan, a 401(k) profit-sharing plan qualified under   401(a) of the Code, and any
successor  plan.

1.31  TERMINATION OF SERVICE. Termination of the Participant's employment with a
Participating Company for any reason; provided, however, that the transfer of an
Employee  from  employment by one Participating Company or affiliated company to
employment  by  another  Participating  Company  or affiliated company shall not
constitute  a  Termination  of  Service.

                                        4
<PAGE>
1.32  TRIGGER  EVENT.  A  Trigger  Event  is  either  of  the  following:

     (a)  The last day of a fiscal quarter of Delta Mills, Inc. if on such date,
and  on the last day of each of the three immediately preceding fiscal quarters,
Available  Cash  is and was, as the case may be, less than 150% of the Aggregate
Deferred  Compensation  Liability.  "Available  Cash"  means Delta Mills, Inc.'s
cash,  cash  equivalents  and  readily  marketable  securities  plus  any  funds
available  to  Delta  Mills,  Inc.  pursuant  to  any  and  all  existing credit
facilities,  less  accrued  interest  (not  including any amounts that represent
Interest Equivalent under the Plan). "Aggregate Deferred Compensation Liability"
shall  mean  the  sum  of the Lump Sum Deferral Account, Installment Account and
Level-Payment  Installment Account balances for all Participants, as adjusted in
accordance  with Article III of the Plan as of the Adjustment Date occurring on,
or  the  last  Adjustment Date occurring prior to, the date of the Trigger Event
described in this Section 1.32(a); provided, that the Trigger Event described in
this  Section 1.32(a) shall constitute a Trigger Event for purposes of this Plan
only  with  respect to benefits accrued under the Plan after the date that Delta
Woodside  Industries,  Inc.  distributes to its shareholders all of the stock of
Delta  Apparel,  Inc.  and  DH  Apparel  Company,  Inc.;  and,

     (b)  Any other event designated as a "Trigger Event" by action of the Board
of  a Participating Company in the exercise of its sole and absolute discretion.
No  event  shall  qualify  as  a  Trigger  Event  merely  because  the Board has
previously  designated  one  or  more  similar  events  as  a  Trigger  Event.

1.33  YEAR  OF  SERVICE.  Any  twelve consecutive Months of Service. For vesting
purposes,  the  computation period shall be the Employment Year. For purposes of
Deemed  Deferrals  only,  the  computation  period shall be the Employment Year;
however,  only  Years of Service from the Participant's most recent date of hire
shall be considered. For all other purposes, the computation period shall be the
Plan  Year.

                    ARTICLE II. ELIGIBILITY AND PARTICIPATION

2.1 ELIGIBILITY. Such Employees as the Committee designates shall be eligible to
participate  in  this  Plan;  provided,  however,  that no Employee who is not a
member  of  the "select group of management" or a "highly compensated employee,"
as  defined  in   201(2),  301(a)(3)  and  401(a)  of ERISA shall be eligible to
become  a  Participant.

2.2  PARTICIPATION.  The  Committee  shall notify each Employee selected to be a
Participant  of  the  Employee's  eligibility, and an Employee so notified shall
become  a  Participant  by  making  a  Deferral  Election.

2.3  ELECTIVE  DEFERRALS. For each Plan Year, each eligible Employee is entitled
to  make  a  Deferral  Election,  in  such  manner  and  form  as  the Committee
prescribes,  to  defer  Compensation for the Plan Year. Except in the case of an
"unforeseeable  emergency"  as defined in Section 5.4 below, such election shall
be  irrevocable  during  the  Plan  Year.  Deferral  Elections  shall be made as
follows:  (A)  within  30  days  following  the  adoption  of this Plan to defer
Compensation  to be earned subsequent to the Deferral Election for the remainder
of  such  Plan  Year; (B) within 30 days following the date on which an Employee
first  becomes  eligible to participate in this Plan to defer compensation to be
earned  subsequent to the Deferral Election for the remainder of such Plan Year;
or  (C)  in all other cases on or before December 31 to defer compensation to be
earned  in  succeeding  Plan Years. The foregoing notwithstanding, each eligible
Employee  may  make  a  special  Deferral Election with respect to each bonus to
which  the  Employee  becomes  entitled, provided that such Deferral Election is
made  before  the  Employee  earns  such  bonus.

                                        5
<PAGE>
2.4  LIMITATIONS ON ELECTIVE DEFERRALS. The maximum amount of Elective Deferrals
a  Participant  may  make for a Plan Year shall be One Hundred percent (100%) of
the  Participant's Compensation which would otherwise be paid to the Participant
during  the  Plan Year and which is not subject to another deferral agreement or
other  withholding.

2.5  DEEMED DEFERRALS. In addition to any Elective Deferrals, for each Plan Year
for  which  a  Participant  has  made a Deferral Election, the Participant shall
receive  credit  for  Deemed  Deferrals.

2.6  METHOD-OF-PAYMENT  ELECTION.  Contemporaneously  with  the  making  of each
Deferral  Election,  the Participant shall designate on a form prescribed by the
Committee  for  such  purpose  whether  the  benefits  pursuant to such Deferral
Election  are  to  be  paid  in  a  single  sum,  installments  or level-payment
installments, as provided in SECTION 5.1(A). If a Participant fails to make such
method-of-payment  election,  the  Participant  shall  be deemed to have elected
installment  payments.

                      ARTICLE III. ACCOUNTS OF PARTICIPANTS

3.1  ACCOUNTS.  The  Committee  shall establish and cause to be maintained three
separate  accounts  for  each  Participant  to  be  known  respectively  as  the
Participant's  "LUMP  SUM  ACCOUNT,"  "INSTALLMENT  ACCOUNT," and "LEVEL-PAYMENT
INSTALLMENT  ACCOUNT."

3.2  ACCOUNTING  OF  LUMP SUM ACCOUNT. As of each Adjustment Date, the Committee
shall  debit  and  credit  each  Participant's Lump Sum Account in the following
order:

     (a) PAYMENTS. There shall be debited the amount of benefit payments made to
or on behalf of the Participant or the Participant's Beneficiary during the Plan
Year  ending  on  the Adjustment Date (i.e., the "CURRENT CALENDAR QUARTER") and
allocable  to  such  Lump  Sum  Account.

     (b)  INTEREST  EQUIVALENT.  The  Committee, in the exercise of its sole and
absolute  discretion,  shall  determine the Interest Equivalent for the "current
calendar  quarter"  and there shall be credited the Interest Equivalent, if any,
for  such  Lump  Sum  Account.

     (c)  ELECTIVE DEFERRALS. If the Participant elected pursuant to SECTION 2.6
for benefits payable under a Deferral Election for the "current Plan Year" to be
paid  in  a  single sum, then there shall be credited the Participant's Elective
Deferrals  made  pursuant to such Deferral Election for the "current Plan Year."

     (d)  DEEMED  DEFERRALS.  If the Participant elected pursuant to SECTION 2.6
for benefits payable under a Deferral Election for the "current Plan Year" to be
paid  in  a  single  sum,  then there shall be credited the Participant's Deemed
Deferrals  relating  to  such  Deferral  Election.

     (e) ADMINISTRATIVE EXPENSES. The Committee, in the exercise of its sole and
absolute  discretion,  shall  determine  the  amount  of  the  expenses  each
Participating  Company incurred for the "current Plan Year" in administering the
Plan.  There  shall be debited such portion of the amount of such administrative
expenses  as  the Committee determines, in the exercise of its sole and absolute
discretion,  to  be  equitable.

3.3 ACCOUNTING OF INSTALLMENT ACCOUNT. As of each Adjustment Date, the Committee
shall  debit  and credit each Participant's Installment Account in the following
order:

                                        6
<PAGE>
     (a) PAYMENTS. There shall be debited the amount of benefit payments made to
or on behalf of the Participant or the Participant's Beneficiary during the Plan
Year  ending  on  the Adjustment Date (i.e., the "CURRENT CALENDAR QUARTER") and
allocable  to  such  Installment  Account.

     (b)  INTEREST  EQUIVALENT.  The  Committee, in the exercise of its sole and
absolute  discretion,  shall  determine the Interest Equivalent for the "current
calendar  quarter"  and there shall be credited the Interest Equivalent, if any,
for  such  Installment  Account  on  the  last  day  of  the  calendar  quarter.

     (c)  ELECTIVE DEFERRALS. If the Participant elected pursuant to SECTION 2.6
for benefits payable under a Deferral Election for the "current Plan Year" to be
paid  in  installments,  then there shall be credited the Participant's Elective
Deferrals  made  pursuant to such Deferral Election for the "current Plan Year."

     (d)  DEEMED  DEFERRALS.  If the Participant elected pursuant to SECTION 2.6
for  benefits payable under a Deferral Election to be paid in installments, then
there  shall  be  credited  for the "current Plan Year" the Participant's Deemed
Deferrals  relating  to  such  Deferral  Election.

     (e) ADMINISTRATIVE EXPENSES. The Committee, in the exercise of its sole and
absolute  discretion,  shall  determine  the  amount  of  the  expenses  each
Participating  Company incurred for the "current Plan Year" in administering the
Plan.  There  shall be debited such portion of the amount of such administrative
expenses  as  the Committee determines, in the exercise of its sole and absolute
discretion,  to  be  equitable.

3.4 ACCOUNTING OF LEVEL-PAYMENT INSTALLMENT ACCOUNT. As of each Adjustment Date,
the  Committee  shall  debit  and  credit  each  Participant's  Level-Payment
Installment  Account  in  the  following  order:

     (a) PAYMENTS. There shall be debited the amount of benefit payments made to
or on behalf of the Participant or the Participant's Beneficiary during the Plan
Year  ending  on  the Adjustment Date (i.e., the "CURRENT CALENDAR QUARTER") and
allocable  to  such  Level-Payment  Installment  Account.

     (b)  INTEREST  EQUIVALENT.  The  Committee, in the exercise of its sole and
absolute  discretion,  shall  determine the Interest Equivalent for the "current
calendar  quarter"  and there shall be credited the Interest Equivalent, if any,
for  such  Level-Payment  Installment  Account  on  the last day of the calendar
quarter;  provided  that  no  Interest  Equivalent  shall  be  credited for such
Level-Payment  Installment  Account  on  or  after the date that the Participant
first  receives  a  monthly  benefit  payment pursuant to SECTION 5.1(A)(II)(B).

     (c)  ELECTIVE DEFERRALS. If the Participant elected pursuant to SECTION 2.6
for benefits payable under a Deferral Election for the "current Plan Year" to be
paid  in  level-payment  installments,  then  there  shall  be  credited  the
Participant's Elective Deferrals made pursuant to such Deferral Election for the
"current  Plan  Year."

     (d)  DEEMED  DEFERRALS.  If the Participant elected pursuant to SECTION 2.6
for  benefits  payable  under  a  Deferral  Election to be paid in level-payment
installments,  then  there  shall  be  credited  for the "current Plan Year" the
Participant's  Deemed  Deferrals  relating  to  such  Deferral  Election.

     (e) ADMINISTRATIVE EXPENSES. The Committee, in the exercise of its sole and
absolute  discretion,  shall  determine  the  amount  of  the  expenses  each
Participating  Company incurred for the "current Plan Year" in administering the
Plan.  There  shall be debited such portion of the amount of such administrative
expenses  as  the Committee determines, in the exercise of its sole and absolute
discretion,  to  be  equitable.

                                        7
<PAGE>
                               ARTICLE IV. VESTING

Participants  are  always  One  Hundred  percent (100%) vested in the portion of
their  Deferral  Accounts  attributable  to Elective Deferrals. Each Participant
shall vest in that portion of the Participant's Deferral Account attributable to
Deemed  Deferrals  (the  "DEEMED  DEFERRAL  BENEFIT")  at  the  same rate as the
Participant  vests  in  the  Participant's  account balance in the Savings Plan,
except  that  upon, and at all times following, a Trigger Event, Participants of
the  Participating  Company  which  has incurred such Trigger Event shall be One
Hundred  percent  (100%)  vested  in  their Deemed Deferral Benefits. If as of a
Participant's  Termination of Service the Participant is not fully vested in the
Participant's  account in the Savings Plan and a Trigger Event has not occurred,
then  the  Participant  shall forfeit the percentage of the Participant's Deemed
Deferral  Benefit  equal to the percentage of the account in the Savings Plan in
which  the  Participant  is  not  vested  as  of  such  Termination  of Service.

                               ARTICLE V. BENEFITS

5.1  METHOD  AND  TIMING.

     (a)  RETIREMENT,  DISABILITY  OR  DEATH.

          (i)  LUMP  SUM PAYMENT. On the January 1st following the Participant's
Retirement  or  Termination  of  Service  on account of Disability or death, the
Participating  Company  which is the employer of such Participant shall pay in a
single  sum to the Participant or the Participant's Beneficiary, as the case may
be,  an amount equal to the vested amount credited to the Participant's Lump Sum
Account  adjusted  in accordance with SECTION 3.1 as of the last Adjustment Date
preceding  such  payment.

          (ii)(a)  INSTALLMENTS.  After  the  Participant's  Retirement  or
Termination  of  Service  on  account  of Disability or death, the Participating
Company  which  is  the  employer  of  such Participant shall pay in 120 monthly
installments  the  vested  amount  credited  to  the  Participant's  Installment
Account.  Payment  shall  commence  on  the  first  January  1st  following such
Retirement  or  Termination  of  Service, and shall continue on the first day of
each  month  thereafter until 120 monthly payments have been made. The amount of
each  monthly  installment  payable  during a Plan Year shall equal the quotient
obtained  by  DIVIDING (1) the balance credited to the Participant's Installment
Account as of the Adjustment Date next preceding the Plan Year BY (2) the number
of  installments  remaining  as  of  such Adjustment Date. As provided by and in
accordance  with  ARTICLE III, during the period of payment of such installments
the  Participant's  Installment  Account  shall continue to be credited with its
Interest  Equivalent.

           (b) LEVEL-PAYMENT INSTALLMENTS. After the Participant's Retirement or
Termination  of  Service  on  account  of Disability or death, the Participating
Company  which  is  the  employer  of  such Participant shall pay in 120 monthly
installments  the  vested  amount  credited  to  the Participant's Level-Payment
Installment  Account  plus  interest as set forth in this SECTION 5.1(A)(II)(B).
Payment  shall  commence  on  the first January 1st following such Retirement or
Termination  of  Service,  and  shall  continue  on  the first day of each month
thereafter until 120 monthly payments have been made. The amount of each monthly
installment  shall  be  determined  in  accordance  with  the following formula:

                      PV
Payment= -------------------------------
          /      1-1/(1+i)119     \
         |-------------------------| + 1
          \            i          /

PV  =  Level-Payment  Installment Account balance as of the last day of the last
       quarter  ending prior  to  the  payment  date  for  the  first  monthly
       installment

i  =  Level-Payment  Installment  Fixed  Rate  divided  by  12

The  Committee  shall  set  the "LEVEL-PAYMENT INSTALLMENT FIXED RATE" each Plan
Year  on  the  last day of the third calendar quarter at a rate equal to (I) the
Average  AAA Corporate Bond Yield last published by Moody's Bond Survey prior to
such date or (II) such higher rate as the Committee, in its sole discretion, may
determine on or prior to such date. The Level-Payment Installment Fixed Rate set
by  the  Committee in any given Plan Year shall be the Level-Payment Installment
Fixed Rate used to calculate the monthly payments for all Participants who first
begin  receiving  monthly  payments  of  benefits  from  their  Level-Payment
Installment  Account  in  the  immediately  following  Plan  Year.

          (iii) DISCRETIONARY PAYMENT UPON DEATH. Notwithstanding the provisions
of  SECTIONS  5.1(A)(I)  and  (II)  above,  upon  a  Participant's  death,  the
Participating  Company  which  is  the  employer of such Participant may, in the
exercise  of  its  absolute  and  sole  discretion,  pay  in a single sum to the
Participant's  Beneficiary  an amount equal to the vested amount credited to the
Participant's  Lump  Sum  Account,  Installment  Account  and  Level-Payment
Installment  Account  adjusted  in  accordance  with  SECTION 3.1 as of the last
Adjustment  Date  preceding  such payment. Such lump sum payment shall discharge
the  Participating  Company's obligation to pay benefits under this Plan to such
Beneficiary.

     (b)  OTHER  TERMINATION  OF SERVICE. On the first January 1st following the
Participant's  Termination  of  Service  other  than  on  account of Retirement,
Disability  or  death,  the  Participating Company which is the employer of such
Participant  shall  pay  in a single sum to the Participant or the Participant's
Beneficiary,  as  the case may be, an amount equal to the vested amount credited
to  the  Participant's  Lump  Sum  Deferral  Account,  Installment  Account  and
Level-Payment  Installment Account, each adjusted in accordance with ARTICLE III
as  of  the  last  Adjustment  Date  preceding  such  January  1st.

     Notwithstanding  the foregoing, if a Participant's employment is terminated
as  a  result  of  the  sale  or  closure  of  a  Participating Company, or of a
subsidiary  or  division  of  a Participating Company, the Participating Company
which  is  the  employer  of  such  Participant shall pay in a single sum to the
Participant  or  the  Participant's  Beneficiary,  as the case may be, an amount
equal  to  the  vested  amount  credited  to the Participant's Lump Sum Deferral
Account,  Installment  Account  and  Level-Payment  Installment  Account,  each
adjusted in accordance with ARTICLE III as of the last Adjustment Date preceding
such sale or closure, such payment to occur as soon as administratively feasible
after  such  sale  or  closure.

     (c) TRIGGER EVENT. Upon the happening of a Trigger Event, the Participating
Company  which  is  subject  to such Trigger Event shall immediately pay to each
Participant  which  is its Employee, in a single sum, the amount credited to the
Participant's Deferral Account adjusted in accordance with ARTICLE III as of the
date  of  the  Trigger  Event.

5.2  PAYMENTS  TO  BENEFICIARY.  In  the  event a Participant dies prior to full
payment  of  the  Participant's  Deferral  Account  under  this  ARTICLE  V, all
remaining  payments  due  hereunder  shall  be  made  to  such  Participant's
Beneficiary;  provided,  however, if the Committee so directs in the exercise of
its  sole  discretion,  the Participating Company shall pay the remainder of the
Deferral  Account  in  one single sum. In the event the Beneficiary survives the
Participant  but dies prior to full payment of benefits hereunder, all remaining
payments  shall  be  made  to  the  Beneficiary's  estate.

5.3  WITHHOLDING  TAXES;  EMPLOYMENT TAXES. Any amounts paid to a Participant or
Beneficiary  shall  be  reduced  by  the  amount  of taxes required by law to be
withheld.  The  Participating  Company  which is the employer of the Participant
shall  timely  furnish  the Participant and Beneficiary with the appropriate tax
information  form  evidencing  such  payment  and  the  amount  thereof.  Each
Participating  Company  shall  be solely responsible for paying employment taxes
(e.g.,  FICA,  FUTA,  state  unemployment),  if any, attributable to payments to
Participants  which  are  its  Employees  and  their  Beneficiaries.

                                        8
<PAGE>
5.4  PAYMENTS  TO  RELIEVE  FINANCIAL HARDSHIP. Notwithstanding any provision in
this  Plan  to  the  contrary,  the  Committee  in  the exercise of its sole and
absolute discretion shall have the power and authority to direct a Participating
Company  to pay to a Participant or the Participant's Beneficiary such amount as
is  necessary to enable the Participant or Beneficiary to relieve or mitigate an
"unforeseeable  emergency".  For  purposes  of  the foregoing, an "UNFORESEEABLE
EMERGENCY"  shall have the meaning set forth in Internal Revenue Code Regulation
1.457-2(h)(4)  and  (5)  and  shall  include  a severe financial hardship to the
Participant  or  Beneficiary  resulting  from a sudden and unexpected illness or
accident of the Participant or Beneficiary or of a dependent (as defined in Code
152(a))  of  the  Participant  or  Beneficiary,  loss  of  the  Participant's or
Beneficiary's  property  due  to  casualty,  or  other similar extraordinary and
unforeseeable  circumstances arising as a result of events beyond the control of
the  Participant  or  Beneficiary.  The  circumstances  that  will constitute an
"unforeseeable  emergency"  will depend upon the facts of each case, but, in any
case,  payment  may  not  be  made to the extent that such hardship is or may be
relieved  --

     (a)  through  reimbursement  or  compensation  by  insurance  or otherwise;

     (b)  by  liquidation  of  the Participant's or Beneficiary's assets, to the
extent  the  liquidation  of such assets would not itself cause severe financial
hardship;  or

     (c)  by  cessation  of  deferrals  under  this  Plan.

College  tuition  or  the  costs  of  purchasing  a  home  are  not  considered
"unforeseeable emergencies." Withdrawals of amounts because of an "unforeseeable
emergency" will only be permitted to the extent reasonably needed to satisfy the
emergency  need.  The  amount  of  any  such  payment  shall  be  debited to the
Participant's  Lump  Sum  Account,  Installment  Account  and  Level-Payment
Installment  Account  in such order as the Committee elects and shall not exceed
the amount credited to the Deferral Account determined as of the Adjustment Date
next  following  such  payment  and  without  regard  to  such  payment.

                    ARTICLE VI. DESIGNATION OF BENEFICIARIES

6.1  BENEFICIARY  DESIGNATION. Every Participant shall file with the Committee a
written  designation  of  one  or  more  persons as the Beneficiary who shall be
entitled to receive the amount, if any, payable under the Plan upon his death. A
Participant  may  from time to time revoke or change his Beneficiary designation
without  the  consent  of any prior Beneficiary by filing a new designation with
the  Committee.  The  last  such  designation received by the Committee shall be
controlling;  provided,  however,  that  no designation, or change or revocation
thereof,  shall  be  effective  unless  received  by  the Committee prior to the
Participant's death, and in no event shall it be effective as of a date prior to
such receipt. All decisions of the Committee concerning the effectiveness of any
Beneficiary designation and the identity of any Beneficiary shall be final. If a
Beneficiary  shall die after the death of the Participant and prior to receiving
the  distribution  that  would  have  been  made  to  such  Beneficiary had such
Beneficiary's  death  not  occurred,  and  no  alternate  Beneficiary  has  been
designated,  then  for the purposes of the Plan the distribution that would have
been  received  by  such  Beneficiary shall be made to the Beneficiary's estate.

6.2  FAILURE TO DESIGNATE BENEFICIARY. Subject to SECTION 6.1, if no Beneficiary
designation  is  in  effect at the time of a Participant's death, the payment of
the  amount,  if any, payable under the Plan upon his death shall be made to the
Participant's  surviving  spouse, if any, or if the Participant has no surviving
spouse,  to  the  Participant's  estate.

                                        9
<PAGE>
If  the  Committee  is  in  doubt  as to the right of any person to receive such
amount,  the  Committee may direct the Participating Company to withhold payment
without  liability  for  any  interest  thereon,  until  the  rights thereto are
determined,  or  the  Committee  may direct the Participating Company to pay any
such  amount  into any court of appropriate jurisdiction, and such payment shall
be  a  complete  discharge  of  the  liability  of  the  Participating  Company
therefor.

                             ARTICLE VII. COMMITTEE

7.1  AUTHORITY.  The  Committee  shall be responsible for the administration and
interpretation  of  the Plan, shall act as the Plan Administrator and shall have
all  powers necessary to enable it to carry out its duties in the administration
and  interpretation of the Plan, and shall have the duty and power to determine,
in  the  exercise  of  its  sole and absolute discretion, all questions that may
arise hereunder as to the status and rights of Participants and Beneficiaries in
the  Plan  and  as  to  the  right  of  any  individual  to  a  benefit.

 7.2  VOTING.  The  Committee  shall  act  by  a  majority  of  the  number then
constituting  the  Committee,  and  such action may be taken either by vote at a
meeting  or  in  writing  without  a  meeting.

 7.3  RECORDS. The Committee shall keep a complete record of all its proceedings
and  all  data  relating  to the administration of the Plan. The Committee shall
make such rules and regulations for the conduct of its business as it shall deem
advisable.

7.4  LIABILITY.  No  member  of the Committee shall be personally liable for any
actions taken or omitted by the Committee unless the member's action or inaction
involves  willful  misconduct.  To  the extent permitted by applicable law, each
Participating  Company  shall  indemnify  and  hold  harmless each member of the
Committee  and each employee of the Participating Company acting pursuant to the
direction  of  the  Committee  from  and  against any and all liability, claims,
demands,  costs  and expenses (including reasonable attorneys' fees) arising out
of  or  incident  to  any  act  or  failure  to  act  in  connection  with  the
administration  of  the  Plan,  except  for  any such act or failure to act that
involves  willful  misconduct.

7.5  MINISTERIAL DUTIES. The Committee may appoint one of its members to perform
such  ministerial  duties  as  the  Committee  delegates.

                     ARTICLE VIII. AMENDMENT AND TERMINATION

Each  Participating  Company  reserves  the  right, at any time and from time to
time,  by  action  of  its  Board to amend or terminate the Plan with respect to
itself and the Participants employed by it; provided, however, no such amendment
or  termination  shall  either  (A)  reduce  the amount of any Deferral Account,
determined  as  of  the  Adjustment  Date  coincident with or next preceding the
amendment  or  termination,  or  (B)  defer  payment  of  such Deferral Account.

                          ARTICLE IX. CLAIMS PROCEDURE

The  following  claims  procedure  shall  apply  with  respect  to  the  Plan:

                                       10
<PAGE>
9.1  FILING  OF  A  CLAIM  FOR  BENEFITS.  If  a Participant or Beneficiary (the
"CLAIMANT")  believes  that  he is entitled to benefits under the Plan which are
not  being  paid  to  him,  he shall file a written claim therefor with the Plan
Administrator.  In  the  event  a  member of the Plan Administrator shall be the
claimant,  all  actions which are required to be taken by the Plan Administrator
pursuant  to  this ARTICLE IX shall be taken instead by the remaining members of
the  Plan  Administrator.

9.2  NOTIFICATION  TO  CLAIMANT  OF  DECISION. Within 90 days after receipt of a
claim  by  the  Plan  Administrator (or within 180 days if special circumstances
require  an extension of time), the Plan Administrator shall notify the claimant
of  the  Plan Administrator's decision with regard to the claim. In the event of
such  special  circumstances  requiring  an  extension  of  time, there shall be
furnished  to  the  claimant  prior  to  expiration of the initial 90-day period
written  notice  of  the  extension,  which  notice  shall set forth the special
circumstances  and  the  date  by which the decision shall be furnished. If such
claim  shall  be  wholly or partially denied, notice thereof shall be in writing
and  worded  in  a manner calculated to be understood by the claimant, and shall
set  forth:  (A)  the  specific  reason  or reasons for the denial; (B) specific
reference  to pertinent provisions of the Plan on which the denial is based; (C)
a  description  of  any  additional  material  or  information necessary for the
claimant  to  perfect  the  claim  and  an  explanation  of why such material or
information  is necessary; and (D) an explanation of the procedure for review of
the  denial.  If  the  Plan  Administrator  fails  to notify the claimant of the
decision  in  timely manner, the claim shall be deemed denied as of the close of
the initial 90-day period (or the close of the extension period, if applicable).

9.3  PROCEDURE  FOR  REVIEW. Within 60 days following receipt by the claimant of
notice  denying  his  claim  in whole or in part or, if such notice shall not be
given,  within 60 days following the latest date on which such notice could have
been  timely  given,  the  claimant shall appeal denial of the claim by filing a
written  application  for  review  with  the  Plan Administrator. Following such
request  for  review,  the  Plan Administrator shall fully and fairly review the
decision denying the claim. Prior to the decision of the Plan Administrator, the
claimant  shall  be  given  an  opportunity to review pertinent documents and to
submit  issues  and  comments  in  writing.

9.4  DECISION ON REVIEW. The decision on review of a claim denied in whole or in
part  by  the  Plan  Administrator  shall  be  made  in  the  following  manner:

     (a)  Within  60  days  following  receipt  by the Plan Administrator of the
request  for  review  (or  within  120  days if special circumstances require an
extension  of time), the Plan Administrator shall notify the claimant in writing
of  its  decision  with  regard  to  the  claim.  In  the  event of such special
circumstances  requiring  an  extension of time, written notice of the extension
shall  be  furnished to the claimant prior to the commencement of the extension.
If  the  decision on review is not furnished in a timely manner, the claim shall
be  deemed  denied as of the close of the initial 60-day period (or the close of
the  extension  period,  if  applicable).

     (b)  With  respect  to  a  claim  that  is  denied in whole or in part, the
decision  on  review shall set forth specific reasons for the decision, shall be
written  in a manner calculated to be understood by the claimant, and shall cite
specific  references  to  the pertinent plan provisions on which the decision is
based.

     (c)  The  decision of the Plan Administrator shall be final and conclusive.

9.5  ACTION  BY  AUTHORIZED REPRESENTATIVE OF CLAIMANT. All actions set forth in
this  ARTICLE  IX  to  be  taken  by  the  claimant  may  likewise be taken by a
representative  of  the  claimant duly authorized by him to act in his behalf on
such  matters.  The  Plan  Administrator  may  require  such  evidence as it may
reasonably  deem  necessary  or  advisable  of  the authority to act of any such
representative.

                                       11
<PAGE>
                            ARTICLE X. MISCELLANEOUS

10.1  NONALIENATION  OF  BENEFITS.  No  right or benefit under the Plan shall be
subject  to  anticipation,  alienation,  sale,  transfer,  assignment,  pledge,
encumbrance,  attachment,  garnishment or charge, and any attempt to anticipate,
alienate,  sell,  transfer,  assign, pledge, encumber, attach, garnish or charge
any right or benefit under the Plan shall be void. No right or benefit hereunder
shall  in  any  manner  be  liable  for  or  subject  to  the  debts, contracts,
liabilities or torts of the person entitled to such benefit. If a Participant or
Beneficiary  hereunder  shall  become  bankrupt,  or  attempt  (voluntarily  or
involuntarily)  to  anticipate,  alienate,  sell,  transfer,  assign,  pledge,
encumber,  or  charge  any  right hereunder, or if any creditor shall attempt to
attach, garnish, levy on or otherwise alienate or affect the right or benefit of
any  Participant  or Beneficiary hereunder, then such right or benefit shall, in
the  discretion  of  the  Committee, cease and terminate, and in such event, the
Committee  may  hold  or apply the same, or any part thereof, for the benefit of
the  Participant  or  Beneficiary  in  such  manner  and  in  such  amounts  and
proportions  as  the  Committee  may  deem  proper.

10.2  NO  TRUST  CREATED. The Plan constitutes a mere promise by a Participating
Company  to  make  benefit  payments  in  the  future.  The  obligation  of  a
Participating  Company  to  make  a  payment  hereunder  shall constitute only a
liability of such Participating Company to the Participant, and no Participating
Company  shall  be  liable  to  make a payment to any Participant who is not its
Employee.  Each  such  payment  shall  be  made  from  the  general funds of the
Participating  Company,  and  no  Participating  Company  shall  be  required to
establish  or  maintain  any special or separate fund, or to purchase or acquire
life  insurance  on  a  Participant's  life, or otherwise to segregate assets to
assure that such payments shall be made. Neither a Participant nor a Beneficiary
shall  have  any  interest in any particular asset of a Participating Company by
reason  of  its obligations hereunder, and the right of a Participant to receive
payments  under  this  Plan  shall  be  merely  the right of a general unsecured
creditor  of  the Participating Company which is his employer. Nothing contained
in  the Plan shall create or be construed as creating a trust of any kind or any
other  fiduciary  relationship between a Participating Company and a Participant
or  Beneficiary.

10.3  NO EMPLOYMENT AGREEMENT. Neither the execution of this Plan nor any action
taken  by  a  Participating  Company  pursuant  to  this  Plan  shall be held or
construed  to  confer  on  a  Participant  any legal right to be continued as an
employee  of  the  Participating  Company.  This  Plan  shall  not  be deemed to
constitute  a  contract  of  employment  between  a  Participating Company and a
Participant,  nor  shall  any  provision  herein  restrict  the  right  of  any
Participant  to  terminate  his  employment  with  a  Participating  Company.

10.4  FUNDING POLICY. This Plan is unfunded, and benefits shall be paid from the
general  assets  of  the  Participating  Company  which  is  the employer of the
Participant.  However, a Participating Company may reserve such funds, make such
investments  or  purchase  such  insurance  policies as it may from time to time
choose  to  provide  a  source for payments under the Plan. The Participants and
Beneficiaries  shall  have no claims to any such funds, investments or policies.

10.5  BINDING  EFFECT. Benefits under the Plan shall inure to the benefit of the
Participant  and the Participant's Beneficiary. A Participating Company shall be
liable  only  with  respect  to  obligations incurred pursuant to this Plan with
respect  to  its own Employees and former Employees and obligations with respect
to  the  Plan expressly assumed by the Participating Company in writing pursuant
to a document other than the Plan; no Participating Company shall be liable with
respect  to  benefits  due  to  any  Employees  or  former  Employees of another
Participating  Company  except  to the extent that the Participating Company has
expressly agreed in writing to assume such liability.

                                       12
<PAGE>
Each  Participating  Company  or former Participating Company (the "Indemnifying
Company")  shall indemnify, defend and hold harmless any other legal entity that
is  or  was  at  any  time  a Participating Company and the officers, directors,
employees  and  agents  of  any  such legal entity (each an "Indemnified Party")
against  any  claim,  liability, damages, and expenses (including legal expenses
and attorneys' fees) arising out of or in connection with any allegation that an
Indemnified  Party  is liable to satisfy any obligation incurred pursuant to the
Plan with respect to any Employee or former Employee of the Indemnifying Company
or  any  other  obligation  with  respect  to  the Plan expressly assumed by the
Indemnifying  Company  in  writing.

10.6  ENTIRE PLAN. This document and any amendments hereto contain all the terms
and  provisions  of  the  Plan  and  shall constitute the entire Plan, any other
alleged  terms  or  provisions  being  of  no  effect.

10.7  MERGER  OR CONSOLIDATION. In the event of a merger or a consolidation of a
Participating  Company with another corporation or entity, or the acquisition of
substantially  all of the assets or outstanding stock of a Participating Company
by  another  corporation  or  entity, then and in such event the obligations and
responsibilities of such merged or acquired corporation under this Plan shall be
assumed by any such successor or acquiring corporation or entity, and all of the
rights,  privileges  and  benefits of the Participants hereunder shall continue.

10.8  PAYMENT  TO  INCOMPETENT. Payments of benefits shall be made directly to a
Participant  or  Beneficiary  entitled  thereof,  or  if  such  Participant  or
Beneficiary  has  been  determined  by  a  court of competent jurisdiction to be
mentally  or  physically  incompetent,  then  payment  shall be made to the duly
appointed  guardian,  conservator  or  other  authorized  representative of such
Participant  or  Beneficiary.  The Participating Company shall have the right to
make  payment  directly  to  a  Participant or Beneficiary until it has received
actual  notice  of  the  physical  or  mental  incapacity of such Participant or
Beneficiary and notice of the appointment of a duly authorized representative of
his  estate. Any such payment to an authorized representative for the benefit of
a  Participant  or Beneficiary shall be a complete discharge of all liability of
the  Participating  Company  therefor.

10.9  NO  CONTRIBUTIONS.  Participants  shall  not  be  permitted  to  make  any
contributions  to  this  plan.

                       [PAGE ENDS; SIGNATURE PAGE FOLLOWS]

                                       13
<PAGE>
                [DELTA WOODSIDE GROUP DEFERRED COMPENSATION PLAN
                        FOR KEY MANAGERS; SIGNATURE PAGE]

Executed  as  of  June  30,  2000.

DELTA  WOODSIDE  INDUSTRIES,  INC.

By: /s/  William  H.  Hardman,  Jr.
   --------------------------------
     Its:_Vice  President
         ----------------

DELTA  MILLS,  INC.

By: /s/  William  H.  Hardman,  Jr.
    --------------------------------
     Its: Vice  President
          ----------------

DELTA  MILLS  MARKETING,  INC.

By: /s/  William  H.  Hardman,  Jr.
    -------------------------------
     Its: Vice  President
           ----------------

                                       14
<PAGE>DELTA WOODSIDE INDUSTRIES, INC.
                          STOCK OPTION PLAN AMENDMENTS

     The Delta Woodside Industries, Inc. Stock Option Plan, effective as of July
1,  1990  (the  "Plan"),  is  amended  as  follows  effective  May  15,  2000:

1.  With  regard  to any options granted under the Plan with respect to which an
option  holder makes either or both of the elections described in Section 2. and
Section  3.  below,  if  the  holder  elects not to exercise all or part of such
options  prior  to  the  record  date  (the  "Record  Date")  for  the  proposed
distribution  by  Delta  Woodside  Industries,  Inc.  (the  "Company")  to  its
shareholders  of  all of the capital stock of Delta Apparel, Inc. and all of the
capital  stock  of  Duck  Head  Apparel  Company,  Inc.  (such distribution, the
"Distribution"),  such unexercised options shall remain exercisable for the same
number  of  shares  of  the Company's stock at the same exercise price after the
Distribution  as  before  the  Distribution  (and  for  no  other  securities),
notwithstanding  the  occurrence of the Distribution or Section 14. of the Plan.

2.  At  the  written  election of the option holder, options granted to a holder
under the Plan that are outstanding on the date that is five business days prior
to  the  Record Date shall become exercisable in full, to the extent not already
exercisable  in full, on the date that is five business days prior to the Record
Date,  provided  that  the holder agrees in writing that all options held by the
holder  shall  be  subject  to  the  terms  set  forth  in  Section  1.  above.

3.  With respect to those certain stock options listed on Exhibit A to the Delta
Woodside  Industries,  Inc.  Compensation  Grants  Committee  and  Compensation
Committee  Resolutions Respecting Certain Previously Granted Stock Options dated
May  15, 2000 (the "Subject Stock Options"), at the written election of a holder
of  a  Subject  Stock  Option such Subject Stock Option shall remain exercisable
until such Subject Stock Option's stated date of expiration (notwithstanding any
termination  of  the  holder's  employment  with  the  Company  or  any  of  its
subsidiaries),  provided  that  the  holder  agrees in writing that the holder's
Subject  Stock  Options  shall  be  subject to the terms set forth in Section 1.
above.

4.  The  amendments set forth in Sections 1. through 3. above shall be effective
contingent  on  the  declaration by the Board of Directors of the Company of the
stock  dividend  that  will  effect  the  Distribution.

                           DELTA  WOODSIDE  INDUSTRIES,  INC.

                           By:  /s/  David  R.  Palmer
                              -------------------------------------
                              David R. Palmer, Corporate Controller

<PAGE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00015-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00015-of-00352.parquet"}]]