EXHIBIT 10.1.3

[NOTE: WILLIAM F. GARRETT,  WILLIAM H. HARDMAN, JR. AND DONALD C. WALKER ENTERED
INTO SUCH  AGREEMENTS ON AUGUST 24, 2005,  AND THE TERMS OF THEIR  AGREEMENTS IN
PARAGRAPH 3 BELOW ARE 18 MONTHS.]

                                     FORM OF

                         DELTA WOODSIDE INDUSTRIES, INC.
                                DELTA MILLS, INC.
                           DELTA MILLS MARKETING, INC.
                TERMINATION OF DEFERRED COMPENSATION ARRANGEMENT

         This   Termination   of   Deferred   Compensation   Arrangement   (this
"Agreement")  is  effective  as of the ____ day of August,  2005 by and  between
Delta Woodside  Industries,  Inc.  ("DWI"),  Delta Mills,  Inc. ("Delta Mills"),
Delta Mills  Marketing,  Inc.  ("DMM";  together  with DWI and Delta Mills,  the
"Companies") and the undersigned individual ("Employee").

WHEREAS,  Employee  currently  is an  employee  of one of the  Companies  and is
entitled  to  certain   benefits   under  the  Delta   Woodside  Group  Deferred
Compensation Plan for Key Managers (the "Plan"); and

WHEREAS,  the Companies  propose to terminate the Plan with respect to Employee,
subject to the terms and  conditions  of this  Agreement,  and  Employee  hereby
accepts the  termination  of the Plan with respect to  Employee,  subject to the
terms and conditions of this Agreement;

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

1.   THIS  AGREEMENT  SHALL  ONLY BE  EFFECTIVE  IF  EXECUTED  BY  EMPLOYEE  AND
     DELIVERED TO THE COMPANIES NOT LATER THAN SEPTEMBER __, 2005 [14 DAYS AFTER
     DELIVERY TO EMPLOYEE].

2.   Upon  execution by Employee and subject to the terms and conditions of this
     Agreement,  the Plan is hereby  terminated  with respect to  Employee.  The
     Companies  shall pay  Employee  all of  Employee's  vested and  accrued but
     unpaid benefits under the Plan as soon as reasonably  practicable following
     the date of this  Agreement  (and in any event not later than 45 days after
     the date of this Agreement).

3.   Employee  agrees that, for the period of [eighteen  months or as determined
     by formula] from the date of this  Agreement  (the  "Term"),  Employee will
     continue to serve in Employee's current position as a full-time employee of
     the Company by whom Employee is currently employed ("Employer");  provided,
     however,  that,  Employee  may, by written  notice to  Employer,  terminate
     Employee's  obligations  under this Section 3 for Good Reason. In addition,
     an Employee who is not an executive  officer may retire prior to the end of
     the Term if  Employee  has  reached  age 65,  provided  that this shall not
     affect the duration of the Employee's obligations under Section 4.

4.   Employee  agrees  that,  if  prior  to the  end of the  Term  (i)  Employee
     terminates  his or her  employment  other  than  for  Good  Reason  or (ii)
     Employer  terminates  Employee's  employment  for Cause,  Employee shall be
     bound to the following provisions for the remaining portion of the Term:

     A.   Employee  covenants  and  agrees not to  directly  or  indirectly  (in
          Employee's  individual  capacity  or on  behalf  of any  third  party)
          compete with any Company by working in a position or performing duties
          that are the same or similar as that or those that Employee  currently
          holds or performs for  Employer on behalf of a competing  company that
          is in the business of selling or manufacturing products in competition
          with any Company (other than as a passive  investor owning less than a
          5% equity  interest),  including  without  limitation as a proprietor,

<PAGE>

          partner,   investor,   shareholder,   director,   officer,   employee,
          consultant or independent contractor or otherwise, in: (i) any part of
          the world or any state or region or county in the United  States,  its
          territories  or Puerto  Rico in which any  Company  sold or  delivered
          product during  Employer's 2005 fiscal year; or (ii) the  Southeastern
          United  States  (including,   Alabama,  Florida,  Georgia,  Louisiana,
          Mississippi,  North Carolina, South Carolina,  Tennessee or Virginia);
          or (iii) South Carolina; or (iv) Greenville County, South Carolina.

     B.   Employee  covenants  and  agrees not to  directly  or  indirectly  (in
          Employee's  individual  capacity  or on  behalf  of any  third  party)
          solicit, influence, contact, sell to, service or deal with ("Solicit")
          any Customer (or provide  information  or  assistance to a third party
          that would enable or help such third party to Solicit a Customer)  for
          the  purpose of: (i)  providing  products  to such  Customer  that are
          competitive  with or similar to the products  manufactured  or sold by
          any Company in competition  (directly or indirectly) with any Company;
          or (ii) diverting or attempting to divert from any Company all or part
          of the  business of the Customer or reducing or  attempting  to reduce
          the amount of product  sold by any Company to such  Customer.  For the
          purposes of this section, "Customer" shall mean any actual customer of
          any Company (i) that Employee  Solicited during Employee's  employment
          with Employer,  or (ii) that Employee knows purchased product from any
          Company,  or knows has been  Solicited by or on behalf of any Company,
          at any time  since  July 1,  2004,  or  (iii)  with  respect  to which
          Employee  has  had  access  to  the  pricing,  purchasing  or  similar
          information developed by any Company.

5.   Employee  acknowledges  that,  notwithstanding  any other provision of this
     Agreement, Employer may terminate Employee's employment at any time for any
     or no reason, with or without notice.

6.   For purposes of this Agreement:

     A.   "Cause" for  termination  occurs when  Employee  (i) is  convicted  or
          pleads guilty or nolo contendere to a felony or misdemeanor  involving
          fraud,  embezzlement,  theft or dishonesty or other criminal  conduct;
          (ii) commits any act of fraud or dishonesty with respect to any of the
          Companies;  (iii) takes other action that is likely, in the reasonable
          good faith  judgment of Employer,  to have a material  adverse  effect
          upon the Companies or Employee's ability to represent  Employer;  (iv)
          materially  breaches  or  willfully  fails or refuses  to perform  and
          discharge Employee's duties, responsibilities and obligations assigned
          to  Employee  by  Employer,   or   repeatedly   fails  to  follow  (or
          insubordination  concerning)  reasonable  directives  and  performance
          standards  established  by  Employer;  (v)  commits  any act of  moral
          turpitude or willful misconduct or  misappropriation  that is intended
          to result in personal  enrichment of Employee at the expense of any of
          the Companies or that has a material adverse impact on the business or
          reputation of the Companies; (vi) intentionally causes material damage
          to the  property or business of the  Companies;  or (vii)  violates or
          breaches any provision of this Agreement.

     B.   "Good  Reason" for Employee to terminate  employment  occurs if any of
          the  following  conditions  is not cured within 30 days after  written
          notice of such  condition  is given by  Employee  to  Employer:  (a) A
          reduction  in  Employee's  cash   compensation  from  Employee's  cash
          compensation  in  effect  at the  date  of  this  Agreement;  or (b) A
          material  reduction in Employee's  position,  duties or authority with
          Employer.

7.   None of the Companies makes any  representation  as to the tax consequences
     to Employee of executing this Agreement.  Employee  understands  that he or
     she should consult with Employee's  personal tax advisor if Employee wishes
     to receive any assurances regarding such tax consequences.

8.   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 shall not be construed to affect any entitlement  Employee may or

<PAGE>

     may not have with respect to severance or vacation pay. This  Agreement may
     not be  amended  except by written  amendment  duly  executed  by the party
     against whom such amendment is to be enforced.

9.   This  Agreement  shall be  governed by the laws 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 MILLS, INC.


By: ________________________                By: ________________________
Name: ______________________                Name: ______________________
Title: _____________________                Title: _____________________

DELTA MILLS MARKETING, INC.


By:_________________________
Name:_______________________
Title:______________________


I hereby accept the  termination of the Plan with respect to myself,  subject to
the terms and conditions of this Agreement, and I agree to this Agreement.

PARTICIPANT


____________________________
Name: ______________________