FIELDCREST CANNON, INC.

                             Inter-Office Correspondence

                                    July 29, 1993





Mr. K. M. Finlay 
Kannapolis

RE: Amendment to Employee Retention Agreement

Dear Kevin:

     You and Fieldcrest  Cannon,  Inc. (the "Company")  entered into an Employee
Retention Agreement effective July 9, 1993. The Company now deems it appropriate
to amend  Subsection  5(c) of the Employee  Retention  Agreement by deleting the
phrase  "or if your  employment  with the  Company is  terminated  by you or the
Company for any reason (other than your death,  Disability or Retirement) within
six (6)  months  after a Change in  Control"  therefrom.  For good and  adequate
consideration,  the  receipt of which is hereby  acknowledged,  you agree to the
foregoing  amendment.  Kindly sign and return to the Company this letter,  which
will then constitute our agreement on this subject.

                                   Sincerely,

                                   FIELDCREST CANNON, INC.



                                   By:  /s/ James M. Fitzgibbons
                                        Chairman and Chief
                                          Executive Officer


Agreed to this 2nd day of August, 1993:


/s/ K. M. Finlay
    Signature

K. M. Finlay
    Print Name

Address:

18912 Peninsula Pointe Dr.

Huntersville, NC  28078