Document:

DELTA APPAREL, INC.
                    AMENDMENT OF CERTAIN RIGHTS AND BENEFITS
               RELATING TO STOCK OPTIONS AND DEFERRED COMPENSATION

     This Amendment of Certain Rights and Benefits Relating to Stock Options and
Deferred  Compensation  (this "Agreement") is entered into as of the ____ day of
______________,  2000 by and between Delta Woodside  Industries,  Inc.  ("DWI"),
Delta  Apparel,   Inc.   ("Delta   Apparel")  and  the  undersigned   individual
("Participant").

WHEREAS,  the  Participant  currently  holds  unexercised  options  (the  "Stock
Options")  to purchase the common stock of DWI and/or is entitled to accrued but
unpaid  benefits under the Delta Woodside Group Deferred  Compensation  Plan for
Key Managers (the "Deferred Compensation");

WHEREAS,   DWI   proposes  to   consummate  a  corporate   reorganization   (the
"Reorganization")  whereby DWI will  distribute to its  shareholders  all of the
stock of Delta Apparel and DH Apparel Company, Inc. ("Duck Head");

WHEREAS, to facilitate the Reorganization,  DWI and Delta Apparel desire to have
the  Participant  agree to  certain  modifications  of the terms and  conditions
governing the Stock Options and the Deferred Compensation;

WHEREAS Participant hereby agrees to such modifications in return for new rights
with  respect  to the  Stock  Options  and  Deferred  Compensation  to which the
Participant was not previously entitled;

NOW THEREFORE, in consideration of the mutual covenants and representations made
herein, the parties agree as follows:

A. AMENDMENT OF STOCK OPTIONS.

1. VESTING AND  EXERCISE.  Any and all of the Stock  Options that were not fully
vested and exercisable immediately prior to the date of this Agreement are fully
vested and exercisable as of the date of this Agreement.

2. NO ADJUSTMENT  FOR  REORGANIZATION;  LOSS OF ABILITY TO RECEIVE DELTA APPAREL
AND DUCK HEAD STOCK. Notwithstanding any stock option grant letter or agreement,
the terms of the Delta Woodside Industries, Inc. Stock Option Plan, or the terms
of any other agreement or understanding,  no adjustment shall be made on account
of the  Reorganization  to the stock and other property that the  Participant is
entitled to receive  upon the  exercise  of a Stock  Option.  Therefore,  if the
Participant  exercises a Stock Option after the record date of the  distribution
by DWI to its  shareholders  of the  stock of Delta  Apparel  and Duck Head (the
"Record Date"),  the  Participant  will not be entitled to receive any shares of
the common stock of Delta  Apparel or Duck Head and shall be entitled to receive
only the same number of shares of common stock of DWI that the Participant would
have  received if the  Participant  had  exercised the Stock Option prior to the
Reorganization.

     Assuming consummation of the Reorganization, if the Participant exercises a
Stock Option on or prior to the Record Date, the Participant will be entitled to
receive a  distribution  of Delta Apparel  common stock,  Duck Head common stock
and/or cash for fractional shares with respect to the shares of DWI common stock
acquired  pursuant to such exercise on the same terms and conditions  applicable
to all other persons holding DWI common stock on the Record Date.
<PAGE>

3. OTHER TERMS REMAIN IN EFFECT.  Except to the extent expressly amended by this
Agreement,  the  Stock  Options  shall  remain  subject  to all of the terms and
conditions  applicable  to  them  immediately  prior  to the  execution  of this
Agreement.

B. AMENDMENT OF TERMS APPLICABLE TO DEFERRED COMPENSATION BENEFITS ACCRUED PRIOR
TO REORGANIZATION.

1. ADDITIONAL  TRIGGER EVENT.  For purposes of the Delta Woodside Group Deferred
Compensation  Plan for Key Managers (the "Plan"),  the following  described date
shall constitute a Trigger Event under the Plan:

     The first  date on which  Delta  Apparel  is in  default  of any  Financial
Covenant  and has not cured such  default by the  expiration  of the  applicable
period for cure, if any, for such a default.

     At any time, "Financial Covenant" shall mean any financial covenant that is
established by and set forth in the written terms and conditions governing Delta
Apparel's  primary  revolving  debt facility in existence at such time. The term
"Financial  Covenant"  is intended to include  financial  covenants  of the type
customarily included in revolving credit facilities,  such as covenants based on
leverage ratios,  fixed charge coverage ratios,  minimum corporate net worth and
the like.

2.  ONE-TIME  CASH  OUT  ELECTION.   Notwithstanding  the  terms  of  the  Plan,
Participant  may elect to receive a lump sum  payment of all or a portion of the
Participant's  vested  benefits  under the Plan accrued as of the effective date
(and not the record date) of the  distribution by DWI to its shareholders of the
stock of Delta Apparel and Duck Head (the "Reorganization  Date"); provided that
(i)  such  election  must be made in  writing  on a form  provided  by the  Plan
administrative  committee  and (ii) such  election form must be submitted to the
administrative  committee no later than  [___________________,  2000].  Any such
election may be withdrawn or amended at any time prior to  [___________________,
2000] but shall be binding upon the Participant and irrevocable after such date.
Such  lump-sum  payment shall be made to the  Participant  as soon as reasonably
feasible after the Reorganization Date.

3. ELECTION TO CHANGE  PAYMENT  METHOD.  Notwithstanding  the terms of the Plan,
Participant  may  elect to change  his or her  method-of-payment  election  with
respect to all or a portion of the Participant's benefits accrued under the Plan
prior to the  Reorganization  Date and the  methods of payment  among  which the
Participant  may choose  shall  include  the lump sum,  installment  payment and
level-payment  installment  payment  options as described in the Delta  Woodside
Group  Deferred  Compensation  Plan for Key  Managers  as amended  and  restated
effective on or about the Reorganization Date.

4. RELEASE OF OTHER DWI  COMPANIES  FROM  LIABILITY  FOR  DEFERRED  COMPENSATION
BENEFITS.  Participant  releases any and all natural  persons and legal entities
other than Delta  Apparel  from any and all  obligations  and  liabilities  that
currently exist or may arise in connection with  Participant's  benefits accrued
prior to the  Reorganization  Date  under the Plan  (whether  under its terms as
currently  amended or as amended from time to time at any time prior to the date
of this  Agreement).  Delta  Apparel  agrees  to  assume  all such  liabilities.
Participant  understands  that  this  release  relieves  DWI and all  other  DWI
subsidiaries  (other  than Delta  Apparel)  of their  current  joint and several
obligations to pay all or a portion of the Participant's  benefits accrued under
the Plan.

5.  OTHER  TERMS  REMAIN IN  EFFECT.  Except as such  terms and  conditions  are
expressly  amended by this Agreement,  Participant's  benefits accrued under the
Plan shall remain subject to all of the terms and conditions  applicable to such
benefits immediately prior to the execution of this Agreement.

<PAGE>

C. OTHER TERMS.

1. THIRD-PARTY BENEFICIARIES.  The parties to this Agreement specifically intend
for any and all  beneficiaries  of the release  set forth in Section  B.4. to be
third-party  beneficiaries  of this  entire  Agreement,  entitled to enforce the
terms of this Agreement against any party signing the Agreement.

2.  REVIEW OF  INFORMATION  STATEMENTS  DESCRIBING  THE  REORGANIZATION  AND ITS
EFFECTS. Participant acknowledges that (i) Participant has received and reviewed
copies of the  Information  Statements  of Delta  Apparel,  Inc.  and DH Apparel
Company,  Inc.  respecting the  Reorganization  and (ii) Participant has had the
opportunity  to ask the management of Delta  Woodside  Industries,  Inc. and its
subsidiaries for any additional information that Participant desired in order to
make  a  fully  informed  decision  with  respect  to  signing  this  Agreement,
exercising  Stock  Options and making the various  elections  permitted  by this
Agreement with respect to Participant's benefits under the Plan.

3. NO REPRESENTATIONS REGARDING TAX CONSEQUENCES.  Neither DWI nor Delta Apparel
nor  Duck  Head  nor  any  other   subsidiary  or  affiliate  of  DWI  make  any
representation as to the tax consequences to the Participant of any decision the
Participant  may make  regarding the exercise of any Stock Options or making any
of the  elections  permitted by this  Agreement  with  respect to  Participant's
benefits  under the Plan.  The  Participant  understands  that he or she  should
consult with the Participant's personal tax advisor if the Participant wishes to
receive any assurances regarding such tax consequences.

4. ENTIRE AGREEMENT;  AMENDMENT.  This Agreement is the entire agreement between
the parties with respect to the subject matter addressed herein,  and supersedes
any prior or contemporaneous oral or written agreements or understandings.  This
Agreement may not be amended  except by written  amendment  duly executed by the
party against whom such amendment is to be enforced.

5. GOVERNING LAW. This Agreement  shall be governed by the law of South Carolina
without regard to the application of the principles of conflicts of laws.

Executed as of the date first above written.

DELTA WOODSIDE INDUSTRIES, INC.             DELTA APPAREL, INC.

By:                                         By:
    ----------------------------                ----------------------------
Name:                                       Name:
      --------------------------                ----------------------------
Title:                                      Title:
      --------------------------                ----------------------------

PARTICIPANT

---------------------------------
Name:
      ---------------------------EAB HAUPPAUGE BRANCH
730 Veteran's Memorial Highway
Hauppauge NY 11788
Phone: 516-360-7110
Fax: 516-360-7112

     International Smart Sourcing, Inc.                         December 1, 1999
     320 Broad Hollow Road
     Farmingdale, NY 1 1735

      Re:     $1,250,000 borrowing base line of credit
              $500,000 term loan line

     Gentlemen:

               European  American Bank ("EAB") is pleased to advise you it holds
      available for  International  Smart  Sourcing,  Inc. (the  "Borrower"),  a
      corporation  organized and in good standing under the laws of the State of
      New York,  (I) a borrowing  base line of credit (the "Line") in the amount
      of  $1,250,000  and (ii) a $500,000  term loan line (the "Term Loan Line";
      together  with the  Line  being  collectively,  the  "Credit  Faculties"),
      subject to the following terms and conditions:

               1.      DESCRIPTION OF THE LINE:
                       -----------------------

                       Loans provided under the Line shall be evidenced by EAB's
      standard Master Note (the "Note") in the amount of $1,250,000,  which Note
      shall bear  interest at a rate equal to 1/4% in excess of EAB's Prime Rate
      (the rate of  interest  stated by EAB to be its Prime Rate in effect  from
      time to time and adjusted  when said Prime Rate  changes)  computed on the
      basis of actual days elapsed in a 360 day year.

                       Interest on the unpaid principal balance of the Note from
      time to time outstanding shall be payable monthly in arrears commencing on
      the first day of the month  following  the date of the first advance under
      the Note. Any advance under the Line made by EAB in its  discretion  shall
      be in an amount not less than $50,000 and the Borrower may prepay, in part
      or in full, AT ANY TIME any loans outstanding under the Line in increments
      of not less than $50,000 without premium or penalty.

                       Notwithstanding  any  provisions  herein to the contrary,
      the maximum  availability  under the Credit Facilities shall not exceed an
      amount determined with application to the following borrowing base formula
      (the "Formula"):

                       The sum of (i)  eighty  percent  (80%) of the  borrower's
      "Eligible  Accounts  Receivable",  that is, all  accounts of the  Borrower
      dated not more than ninety (90) days from their respective  invoice dates,
      excluding those accounts deemed  ineligible by EAB in its soles reasonable
      discretion;  and (ii) the  lesser  of  fifty  percent  (50%) of the sum of
      Borrower's "Eligible Inventory" or $500,000 (the "Formula").  In addition,
      if fifty  percent  (50%) of an account is dated more than Ninety (90) days
      then
<PAGE>

     the entire amount shall be deemed ineligible.  Terms used in this paragraph
     shall  have  the  meaning  given  to  such  terms  in  the  Borrowing  Base
     Certificate,  Identified  herein.  The  aggregate of all advances and loans
     under the Line shall at no time exceed the  availability  under the Formula
     and the Borrower shall pay to EAB promptly after demand such amounts as may
     be  necessary  from time to time to reduce the  aggregate of all such loans
     and advances to an amount below the availability under the Formula.

               2.      Description of the Term Loan Line:
                       ---------------------------------

                       Availability  under the Term Loan Line  shall be for term
      loans from EAB or WASCO Funding Corp. ("WASCO"), EAB's subsidiary.

                       Term  Loans  provided  under the Term Loan Line  shall be
      evidenced  by EAB's  standard  Commercial  Note in the amount of each term
      loan thereunder and shall bear interest,  payable monthly in arrears, at a
      rate equal to l~2% in excess of EAB's Prime Rate  computed on the basis of
      actual days elapsed in a 360 day year.  Each term loan provided  under the
      Term Loan Line shall  mature five (5) years after its closing and shall be
      repayable  in  sixty  (60)  equal,  consecutive  monthly  installments  of
      principal and interest.

  The  purpose  of the Term Loan Line  shall be to  finance equipment purchases.

                       The  Borrower  acknowledges  and  agrees  that the Credit
      Facilities  are  uncommitted  and requests for advances or  EXTENSIONS  OF
      CREDIT  THEREUNDER  SHALL BE APPROVED IN THE  DISCRETION OF EAB, WHICH MAY
      REFUSE TO MAKE AN EXTENSION of credit under the Credit  Facilities  at any
      time without prior notice to the  Borrower,  and that the  performance  or
      compliance by the Borrower of the agreements  contained in this letter, or
      in any other document or agreement evidencing or securing such advances or
      extensions of credit, shall not obligate EAB to make an advance or provide
      an extension of credit thereunder.

                       Subject to the terms and  conditions  hereof,  the Credit
Facilities shall be available until June 30, 2000.

               3.      Guarantors:

                       Repayment  of  all  loans,   extensions   of  credit  and
     financial accommodations provided under the Credit Facilities together with
     interest and costs thereon  shall be  guaranteed,  by  Electronic  Hardware
     Corp, ("Electronic"), International Smart Sourcing Corp. ("International',)
     and Compact Disk Packaging Corp.  ("Compact") (the "Corporate  Guarantors")
     pursuant to EAB's standard Guarantee of All Liability.

                       Repayment  of all term  loans,  extensions  of credit and
      financial  accommodations  provided under the Term Loan Line together with
      interest and costs thereon  shall be  guaranteed,  by Andrew L.  Franzone,
      Sr.,  Harry  Goodman and David L. Kassel  (collectively,  the  "Individual
      Guarantors") pursuant to EAB's standard Guarantee of All Liability.

             4. Purpose of the Line:

                       The  purpose  of the  Line  shall be to  provide  working
capital support for all inventory and accounts.

             5.      Security for the Credit Facilities:

                       The  Credit  Facilities  shall  be  secured  by  a  first
      priority  security  interest in all inventory and accounts of the Borrower
      and the Corporate  Guarantors  pursuant to EAB's standard General Security
      Agreement and duly filed UCC-I Financing Statements

                       In addition,  the Credit Facilities shall also be secured
      by the pledge and  assignment of an EAB issued  certificate  of deposit in
      the amount of  $1,000,000  or such  other  liquid  collateral  as shall be
      acceptable  to EAB in its sole  discretion,  pursuant  to  EAB's  standard
      Assignment and Security Agreement.

                       The Term Loan Line shall be  secured by a first  priority
      interest  in all  equipment  that is  financed  by EAB  pursuant  to EAB's
      General Security Agreement and duly filed UCC-1 Financing Statements.

             6.          Conditions Precedent:

                       Prior to the  Borrower's  initial  request for an advance
under the Credit Facilities:

                        a.    It shall have provided to EAB:

                                (I)      A copy of the resolutions passed by the
Borrower's Board of Directors  certified by its Secretary as being in full force
and effect  authorizing the borrowing  described herein and the execution of all
documents  and  agreements  required  by EAB to  evidence  and secure the Credit
Facilities; and

                                (ii)     A certified copy of the certificate  of
 incorporation of the Borrower.

                       b.  EAB  shall  have  conducted  a  field  audit  of  the
      Borrower's  Books and records,  at the  Borrower's  sole cost and expense,
      which audit shall reveal no materially  adverse facts or circumstances not
      currently known by EAB.

                        c. EAB shall have  conducted  favorable  litigation  and
lien, trade and bank checkings of the Borrower.

               7.      FINANCIAL REPORTING:

                       The Borrower shall provide to EAB:

                               (i) As soon as available, but in any event within
     one hundred twenty (120)days  after  the  last  day of  each  fiscal  year,
     the  consolidated  and  consolidating  10K report of the  Borrower  and the
     Corporate Guarantors,filed or to be filed with the Securities  and Exchange
     Commission,  which shall include statements of income and retained earnings
     and cash flows for   such fiscal year,  each  prepared in  accordance  with
     generally accepted accounting principles consistently applied,in reasonable
     detail, such statements to be audited by a firm  of  independent  certified
     public accountants satisfactory to EAB.

                                (ii)     As soon as  available, but in any event
       within sixty(60)days after the end of each of the Borrower's first  three
       fiscal  quarters,  the  10Q reports  filed  or  to  be   filed  with  the
       Securities and Exchange Commission.

                                Each of the financial  statements  specified  in
      Sections  (i)  and  (ii)  above  shall  be  accompanied  by  a certificate
      signed  by  the  president  or chief  financial  officer  of the  Borrower
      to the effect that such  statements fairly present the financial condition
      of the Borrower and the Corporate Guarantors as of the statement date  and
      results of the  operations  of the  Borrower  and the Corporate Guarantors
      for  the   period(s)  then ended  in  accordance  with  generall  accepted
      accounting principles consistently applied.

                                (iii) As  soon as available, but  in  any  event
      within  fifteen (15) days after the end of each calendar month, a schedule
     of accounts  receivable  aged to show the number of days each such  account
     has been  outstanding  from its invoice  date,  in form atisfactory  to EAB
     and  accompanied  by  a  Statement  signed by  the Borrower's  president or
     chief  financial officer to the effect that such statement is true, correct
     and complete.

                                (iv) As soon as  available,  but  in  any  event
       within  fifteen  (15)  days  after  the  end  of  each  calend a month, a
       "Borrowing Base Certificate", in form satisfactory to EAB.

                                (v) Within one hundred  twenty  (120) days after
      the last day of each calendar year, the  personal  financial  statement of
     each Guarantor, on EAB's standard form.

                                (vi)  Such   other   financial   or   additional
    information as EAB may from time to time request.

              8.        SPECIAL REQUIREMENTS:

                       a. The Borrower agrees to maintain on a consolidated  and
consolidating basis at all times:

                                (I) a capital base (the sum of capital  surplus,
earned surplus, capital  stock  and  such  other  items as are  allowable  under
generally  accepted accounting  principles and  subordinated  liabilities  minus
deferred charges, intangibles,  receivables due from  stockholders,  officers or
affiliates  and  treasury  stock)  in  an  amount not less  than  $3,400,000  at
December 31, 1999.

                                (ii)     a maximum  leverage ratio (the ratio of
 total  unsubordinated  liabilities to capital base) of not greater than 1.00 to
 1.0 at December 31, 1999

                       b. The Borrower  shall maintain  hazard  insurance on its
      inventory with a financially sound and reputable insurance company in such
      amounts as are  necessary to cover not less than the  replacement  cost of
      such inventory and covering such risks as are usually carried by companies
      engaged in the same or similar  business which  insurance  policy shall be
      endorsed to name EAB lender loss payee.

                       C. The Borrower  agrees that EAB or its designee shall be
      permitted  access to its  premises to conduct a field  examination  of the
      Borrower's  books and records and its  operations,  at the Borrower's sole
      cost and expense  but not more  frequently  than once in any twelve  month
      period.

                       d. The Borrower shall  maintain,  to the  satisfaction of
      EAB, its, primary account relationship with EAB.

                       e. EAB agrees to release the  $1,000,000  certificate  of
      deposit  described  in  paragraph  5 hereof at such  time as the  Borrower
      delivers  to EAB  either  audited  fiscal  year end or  interim  financial
      statements which evidence, in the sole reasonable  determination of EAB, a
      year to date net operating profit of $100,000.

               9.      ACCEPTANCE:

                  If the foregoing is acceptable,  please so indicate by signing
and returning  this letter before  December 14, 1999,  the date this letter will
otherwise expire, unless extended in writing by EAB.

                                                               Very truly yours,

                                                          EUROPEAN AMERICAN BANK

                                                                  Jason A. Quinn
                                                        Assistant Vice President
                                                                Robert Stratford
                                                            Group Vice President

Agreed and Accepted this day of December, 1999

INTERNATIONAL SMART SOURCING, INC.

By:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00006-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00006-of-00352.parquet"}]]