Company: CULP
Filing Date: 2025-08-15
Form Type: DEF 14A
Source: 0000950170-25-109242
Chunk: 65

Company: CULP INC
Filing Date: 2025-08-15
Form: DEF 14A
Chunk 65
---
, we made Company contributions to the accounts of two other executive officers who were plan participants in fiscal 2025. Our Compensation Committee sets the rate of interest for plan accounts. The interest rate for plan accounts in fiscal 2025 was equal to the rate for 30-year U.S. Treasury notes plus 2.5%. We currently compound interest on a monthly basis. In general, if a participant’s employment terminates for any reason other than death, disability, or retirement, the participant will receive his or her account balance in a lump sum payment within no later than 60 days after termination. However, certain participants who are officers or shareholders of our Company, including all of the NEOs listed above, must wait at least six months after termination for any reason other than death before receiving a distribution from the plan. If a participant dies, we will pay the participant’s account balance to his or her beneficiary in a single lump sum within no later than 60 days. A participant may request to receive an early distribution of all or a portion of the participant’s account balance if he or she suffers a financial hardship involving unexpected and unforeseeable emergency medical expenses that are beyond the participant’s control. A committee consisting of the chief executive officer, the chief financial officer and the chief human resources officer has sole discretion to grant or deny such requests. In addition, we have the right to terminate the plan at any time and distribute all account balances. If we choose to do this, we must make the distributions between the date that is 12 months after we have completed all action necessary to terminate the plan and the date that is 24 months after the termination. Because this is a nonqualified plan, benefits are unsecured. This means that a participant’s claim for benefits is no greater than the claim of a general creditor. Potential Payments Upon Termination or Change of Control At the end of fiscal 2025, the Company was party to change of control and non-competition agreements with all of our NEOs.

<div align='center'>45</div>

The purpose of these agreements is to encourage the officers to carry out their duties in the event of a possible change in the control of our Company. The agreements are not ordinary employment agreements. Unless there is a change of control (as defined in the agreements), they do not provide any assurance of continued employment, or any severance. Each agreement has a rolling three-year term. Under these agreements, any of the following events would be a “change of control”: • any person, entity or group acquiring