Document:

June  28,  2000

PERSONAL  &  CONFIDENTIAL
-------------------------

Mr.  W.F.  Garrett
Delta  Mills  Marketing  Company,  Inc.
1071  Avenue  of  the  Americas
New  York,  NY  10018

Dear  Bill:

As  the  Board  covered with you at its meeting on March 15, 2000, you are being
awarded  a  special  bonus  of  $1,000,000  to  be  paid  as  follows:

     $100,000     Upon  completion  of  the  spin-off.

     $150,000     October  22,  2000
     $150,000     October  22,  2001
     $150,000     October  22,  2002
     $150,000     October  22,  2003
     $150,000     October  22,  2004
     $150,000     October  22,  2005

If  there is a change of control of the Company (or you do not accept a position
with  the  purchaser)  or  in  the event of your death or disability during this
time,  then  any  remaining  balance will be paid to you or your estate.  If you
leave  or  are  terminated  for  cause,  you  will  forfeit any future payments.

Bill,  as  Dr.  Kane  told  you, this bonus is being awarded to show the Board's
appreciation  for  your  service  and  to  give  you  an additional incentive to
continue  managing  the  Company as well as you have in the past.  I'm sending a
copy  of  this  to  Bill  Hardman  so  that  he  can handle the annual payments.

Thanks  for  everything,  and  best  of  luck.

                              Sincerely  yours,

                              /s/  Erwin

                              E.  Erwin  Maddrey,  II
                              President  &  CEO

EEM:hw

Cc:  Mr.  W.H.  Hardman,  Jr.
     Dr.  J.F.  Kane,  Chairman,  Compensation  Committee

<PAGE>DELTA  WOODSIDE  INDUSTRIES,  INC.
     ----------------------------------
     223  North  Main  Street,  Suite  200,  Greenville, South Carolina 29601
 - 864/232-8301   - FAX  864/232-6164

                        ELECTION AND RELEASE FORM FOR THE
                      SEVERANCE PLAN FOR SALARIED EMPLOYEES
                     OF DELTA WOODSIDE INDUSTRIES, INC., AND
                            ITS ADOPTING SUBSIDIARIES

NOTE:  The  law  requires that you be advised to consult with an attorney before
signing  this  Release.

ELECTION  AND  RELEASE

     I, Bettis C. Rainsford, received this Election and Release Form ("Release")
from  Delta  Woodside  Industries,  Inc.  ("the  Company"),  on October 6, 1999.

     My  last  day of employment with the Company is October 1, 1999.  I want to
receive  severance  benefits  under the Severance Plan for Salaried Employees of
Delta  Woodside Industries, Inc., and its Adopting Subsidiaries ("the Plan").  I
understand  that  if  I  sign  and  do  not revoke this Release, I and Rainsford
Development  Corporation  will receive severance benefits in the total amount of
$525,000.00, payable either as a lump sum or by continuation of my salary on the
Company's  normal  payroll  dates  until  my  severance benefit is exhausted.  I
understand  that  the  severance benefit is subject to tax withholding.  Also, I
understand  that  there are situations set forth in the Summary Plan Description
("SPD") for the Plan that can cause my severance benefits to end and cause me to
have  to  repay  to  the  Company  all  severance benefits that I have received.

     In  exchange  for  severance  benefits,  I  and  the  Rainsford Development
Corporation  (and  anyone  acting on our behalf) agree to give up every past and
present right or claim of any kind, whether legal, equitable, or otherwise, that
is related to my employment with the Company and the Company's termination of my
employment.  I and the Rainsford Development Corporation give up such rights and
claims  against  the  Company  and  any  entity or person related to the Company
(including  but not limited to Delta Woodside Industries, Inc., or the Company's
employees,  officers,  directors, and agents) and agree not to file a lawsuit or
initiate  any  proceeding related to such rights and claims against any of them.

     These  rights and claims include, but are not limited to, those which could
arise  under  Title  VII  of  the  Civil Rights Act of 1964, as amended, the Age
Discrimination  in  Employment  Act  of  1967, as amended, or any other federal,
state  or  local  law,  statute  or  regulation;  claims based on any express or
implied  contract;  claims for wrongful or retaliatory discharge; or any tort or
other  common  law  claims.  However,  I keep my right  to (1) receive severance
benefits  under  the  terms of this Release and the Plan, (2) receive retirement
benefits  under the terms of any retirement plan in which I have earned a vested
benefit,  and (3) elect health coverage under the federal continuation of health
coverage  known  as  "COBRA",  or  under  any  applicable  state  law concerning
continuation  of health coverage, unless I am ineligible for such coverage under
such  law.

<PAGE>
     While  I  understand  that  this Release does not affect my right to file a
Charge  with  or  to  participate as a witness in an investigation or proceeding
conducted  by the Equal Employment Opportunity Commission ("EEOC"), I give up my
right  to  receive  any  financial  benefit,  including monetary recovery and/or
reinstatement,  from any lawsuit or settlement related to such rights and claims
as  I  now give up, whether the lawsuit is filed or the settlement is reached by
the  EEOC  or  anyone  else.

     I  agree that if any part of this Release or the application of any part of
this  Release  is  found  by  a  court  to be invalid or unenforceable, that the
remainder  of  this  Release  can  be  enforced  against  me.

     FINALLY,  I  STATE:

     1)     THAT  I  HAVE  BEEN  TOLD  THAT I HAVE UP TO TWENTY-ONE (21) DAYS TO
REVIEW  AND  CONSIDER  THE PLAN, THE SPD, AND THIS ELECTION AND RELEASE FORM AND
THAT  I  HAVE  BEEN  TOLD  TO  DISCUSS  THEM  WITH  MY  ATTORNEY;

     2)     THAT  I  HAVE  BEEN  TOLD  THAT  I  HAVE SEVEN (7) DAYS FOLLOWING MY
SIGNING  OF  THIS  ELECTION  AND  RELEASE  FORM  TO  REVOKE  OR  CANCEL  IT;

     3)     THAT  I HAVE BEEN TOLD THAT THIS RELEASE DOES NOT APPLY TO ANY OF MY
RIGHTS  OR  CLAIMS  THAT  MAY ARISE AFTER THIS ELECTION AND RELEASE FORM BECOMES
ENFORCEABLE;

     4)     THAT  I  HAVE  BEEN  TOLD THAT THIS ELECTION AND RELEASE SHALL IN NO
EVENT  BECOME  EFFECTIVE  OR  ENFORCEABLE  UNTIL THE END OF THE SEVEN-DAY PERIOD
DURING  WHICH  I  CAN REVOKE OR CANCEL MY RELEASE, AND ONLY IF I HAVE NOT TIMELY
EXERCISED  MY  RIGHT  TO  REVOKE  THE  RELEASE;

     5)     THAT  I HAVE RECEIVED A COPY OF THE SPD FOR THE PLAN AND THAT I HAVE
READ  AND UNDERSTAND THE SPD; AND THAT I HAVE NOT RELIED ON ANY REPRESENTATIONS,
PROMISES  OR  STATEMENTS  THAT  ARE  NOT  CONTAINED  IN  THE  SPD;

     6)     THAT  I  HAVE  BEEN TOLD THAT IF I DO NOT RETURN THE RELEASE, SIGNED
AND  DATED BY ME, TO THE COMPANY WITHIN THIRTY (30) DAYS AFTER MY RECEIPT OF THE
RELEASE,  THAT  I  SHALL  NOT  BE ELIGIBLE FOR SEVERANCE BENEFITS FROM THE PLAN;

7)     THAT  I UNDERSTAND ALL OF THE TERMS OF THIS ELECTION AND RELEASE FORM AND
THE  EFFECT  OF  MY  RELEASE;  AND

     8)     THAT  I SIGN THIS FORM AS MY OWN FREE ACT AND DEED AND THAT I HEREBY
RELEASE  MY RIGHTS AND CLAIMS AS SET FORTH IN EXCHANGE FOR THE SEVERANCE PAYMENT
REFERRED TO ABOVE WHICH PAYMENT IS NOT SOMETHING TO WHICH I AM ALREADY ENTITLED.

<PAGE>
     I  hereby  elect  to  receive  a  lump-sum  payment.

Rainsford  Development  Corporation

/s/    Bettic  C.  Rainsford                      /s/  Bettis  C.  Rainsford
----------------------------                      --------------------------
By:    Bettis  Rainsford                          Signed
Its:   President
Date:  10-7-99  ___                               10-7-99
                                                  --------------------------
                                                  Date

                    (FOR  DELTA  WOODSIDE  INDUSTRIES,  INC.)

     This  Election and Release Form has been received and approved this 7th day
of  October,  1999  on behalf of Bettis C. Rainsford.  The severance benefit pay
set  forth  above will be paid to the above-named former employee, in accordance
with  the  terms  of  the  Plan.

                       DELTA  WOODSIDE  INDUSTRIES,  INC.

                      By:  /s/  Martha  M.  Watson
                          -------------------------

                      Date:  October  7,  1999
                          --------------------

<PAGE>DELTA WOODSIDE INDUSTRIES, INC.

                               233 N. MAIN STREET
                              GREENVILLE, SC 29601

     June  14,  2000

BY  FIRST  CLASS  MAIL
----------------------

The  Rainsford  Development  Corporation
P.  O.  Box  388
Edgefield,  SC  29824

           Re:     Termination  of  Lease  Agreement   (the  "Lease")  by
                   and between Delta Woodside  Industries,  Inc., a South
                   Carolina  corporation  ("Tenant")  and  The  Rainsford
                   Development Corporation, a  South Carolina corporation
                   ("Landlord")

Dear  The  Rainsford  Development  Corporation

     This  letter  agreement  shall  serve  to  evidence Tenant's and Landlord's
agreement  regarding  the  termination  of the above-referenced Lease.  No later
than  June 30, 2000 (the "Termination Date"), Tenant agrees to peacefully vacate
and  surrender  the  Premises  to  Landlord.  On or before the Termination Date,
Tenant  shall  pay  Landlord  Thirty  Three Thousand Two Hundred Ninety Nine and
08/100  Dollars  ($33,299.08)  (the  "Termination  Fee").  Upon  payment  of the
Termination  Fee  and  the  vacation  and surrender of the Premises as described
above,  the  Lease shall automatically be terminated and of no further force and
effect.

     This  termination  letter  agreement  shall  be binding on and inure to the
benefit of both Tenant and Landlord and their respective successors and assigns.

     All  terms capitalized herein which are not defined shall have the meanings
ascribed  to  them  in  the  Lease.

<PAGE>
     If  Landlord  is  in  agreement  with  the foregoing, please arrange for an
authorized  representative  of  Landlord  to  sign  below  where  indicated.

                                       Sincerely,

                                       Delta  Woodside  Industries,  Inc.,
                                       a  South  Carolina  corporation

                                       By:  /s/  E.  Erwin  Maddrey,  II
                                            ----------------------------
                                       E.  Erwin  Maddrey,  II,  President

Agreed  and  Accepted  by  Landlord
this  14th  day  of  June,  2000

Rainsford  Development  Corporation,
a  South  Carolina  corporation

By:  /s/  Bettis  C.  Rainsford
     --------------------------

Name:  Bettis  C.  Rainsford

Title:  President

<PAGE>

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