AGREEMENT FOR MODIFICATION AND EXTENSION OF LEASE

AGREEMENT between Jimmie D. Smith, Jr. Post office Box 7623, Rocky Mount, NC 
27804 hereinafter "Landlord" and Pillowtex Corporation, a corporation 
existing under the laws of the State of Texas, with an office at 4111 Mint 
Way, Dallas, Texas 75237, hereinafter "Tenant" modifying and extending the 
lease dated October 12, 1988 between the above fore-mentioned as it relates 
to a certain tract or parcel of land located in the Southwest quadrant of 
Craig and South Davis Street, Rocky Mount, Nash County, North Carolina.

WITNESSETH:  That for one dollar ($1.00) and other valuable consideration by 
each of the parties hereto mentioned to the other in hand paid, receipt 
whereof is hereby reciprocally acknowledged, said lease is hereby modified 
and extended to October 31, 1998, at a rental of one hundred six thousand and 
two hundred dollars ($106,200.00) per annum for said term commencing November 
1, 1994 and terminating October 31, 1998, which rent shall be paid in equal 
monthly installments of eighty eight hundred and fifty dollars ($8,850.00).   
   It is further expressly and agreed that in all other respects said lease 
shall be unmodified and in full force.

IN WITNESS WHEREOF the Landlord has caused these present to be signed and 
witnessed and the Tenant has hereunto caused these present to be signed by 
the Secretary and another duly authorized officer.

              /s/ (Signature Illegible)            /s/ (Signature Illegible)
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              WITNESS                              LANDLORD


              /s/ (Signature Illegible)            /s/ (Signature Illegible)
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              SECRETARY                            TENANT