October 1, 1998



VIA HAND DELIVERY

Mr. G. Walker Box
Chairman of the Board
Pluma, Inc.
26 Broad Street
Martinsville, Virginia  24112

Dear Walker:

The purpose of this letter is to confirm the details of my serving Pluma, Inc.
("Pluma" or the "Company") in the specific capacity as Vice Chairman of the
Board, effective September 29, 1998, pursuant to the Board's action and approval
during its teleconference meeting of September 22, 1998.


ROLE OF VICE CHAIRMAN
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In addition to routine responsibilities of any Vice Chairman (acting in your
place as needed in order to conduct Board business) my role includes three other
specific responsibilities as noted below:


        (1)    to assist Forrest Truitt in managing Pluma's interactions and
               relationships with the Company's lender group throughout the
               period in which there are major issues to be resolved;

        (2)    to assist Forrest, Duke Ferrell and the Executive Management Team
               in the development of proactive action steps to improve the
               Company's financial position; and

        (3)    to be the primary interface between Pluma and the financial
               consultants (PriceWaterhouseCoopers) retained by Pluma as a
               requirement of the waiver and extension agreements with the bank
               group.







                                                               Mr. G. Walker Box
                                                                 October 1, 1998
                                                                          Page 2



SCOPE AND COMPENSATION
- ----------------------

In fulfilling these responsibilities, I expect to devote an average of one and
one-half (1 1/2) business days per week. For this commitment level, I will be
paid a salary of Twelve Thousand Dollars ($12,000.00) per month, beginning
October 1, 1998. In addition, I will waive the pro-rata portion of my annual
retainer as a Director, effective October 1, 1998.

For attendance at regular Board meetings of either the full Board or committees
of the Board, I will be paid the standard per meeting fees pursuant to Company
policies in effect at the time.

I thank you for your personal support. We all know that this is any important
time in the life of Pluma, Inc.


Sincerely,



Ronald A. Norelli

cc:     Forrest H. Truitt