GALEY & LORD, INC.



                             Employment Agreement



     This Agreement between GALEY & LORD, INC., a Delaware Corporation (the

"Corporation"), and JOHN J. HELDRICH, JR. (the "Executive") shall be effective

as of October 1, 2000.



     The Corporation and the Executive agree to the following:



     1.   The Corporation agrees to employ the Executive in an executive

position, subject to the discretion of the Board of Directors of the Corporation

(the "Board"), under the terms set forth below.



     2.   (a)  The term of this Agreement begins October 1, 2000 and continues

for three years, unless earlier terminated under the provisions of Paragraph 10

of this Agreement or by Notice by the Executive or the Corporation.



          (b)  On October 1, 2001 and each succeeding October 1, the term shall

automatically be extended for an additional one-year period, such that the total

term remains three years at all times, unless, no later than 30 days prior to

such anniversary, either party shall give written Notice to the other that the

term shall not be extended further.



     3.   Executive agrees to serve the Corporation faithfully, and to the best

of his ability, under the direction of the Board, devoting his entire time,

energy and skill during regular business hours performing the duties assigned by

the Board.



     4.   The Corporation agrees to pay the Executive a salary for his services

at the annual rate (the "Annual Rate") of Four Hundred Fifty Thousand Dollars

($450,000) per annum,

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payable in equal monthly installments in accordance with the general practice of

the Corporation for salaried employees. The Annual Rate may be, but is not

guaranteed to be, increased during the term of this Agreement.



     5.   Executive will participate in the Incentive Plan (the "IP").  The

Corporation may from time to time pay additional incentive compensation, under

the IP, when and if authorized by the Board or the appropriate committee of the

Board.  Payments under the program are not guaranteed.



     6.   The Corporation may provide deferred compensation through its unfunded

Deferred Compensation Plan (the "DCP").  Executive will participate in the DCP

according to its terms.



     7.   The Corporation has established a Supplemental Executive Retirement

Plan (the "SERP") to provide retirement benefits in addition to the benefits

payable under the Corporation's Retirement Plan. Executive will participate in

the SERP subject to its terms.



     8.   The Corporation may from time to time grant stock options under its

Stock Option Plan then in effect (the "SOP"). Executive will participate in the

SOP, at the discretion of the Board, subject to its terms.



     9.   Executive acknowledges that this Agreement does not constitute a

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