EXHIBIT 10(B)

NORTH CAROLINA 

MECKLENBURG COUNTY

SECOND AMENDMENT TO LEASE AGREEMENT

            THIS SECOND AMENDMENTTO LEASE AGREEMENT made this 1st day of May, 2002, effective as of January 1, 2002, by and between THE SPEIZMAN LLC, aNorth Carolina limited liability company (“Lessor”) and SPEIZMAN INDUSTRIES, INC., a North Carolina corporation(“Lessee”);

            WHEREAS, Lessor andLessee have heretofore entered into that certain Lease Agreement dated effective as of December 1, 1999 and amended effective June1, 2000 (“Lease”); and

            WHEREAS, Lessor andLessee are desirous of amending the Lease.

            NOW, THEREFORE, forgood and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties do hereby agree to amendthe Lease as follows:

            Paragraph 3 of theLease is deleted and replaced with the following:

           3.         RENT.  Lessee shall pay to Lessor as rental for the Premises the sumof Sixty-six thousand six hundred and sixty seven ($66,667.00) Dollars per month, payable onor before the fifth (5th) day of each calendar month during the term thereof.  To the extent the first or last month of theterm of this Lease is less than a full calendar month, rental for such month shall be prorated on a daily basis.  Provided,however, that the monthly rental payable hereunder shall be increased (but not decreased) each May 1, commencing May 2003, by anychange in the Consumer Price Index, Urban Wage Earners and Clerical Workers (CPI-W, 1982-84=100) (“Index”) bymultiplying the then in effect monthly rental by the increase in value of said Index for the 12-month period prior to the thenpresent May 1.  Provided, further, however, that in no event shall any single increase in monthly rental hereunder be greaterthan 2.5%.  In the event that the Index ceases to be published, there shall besubstituted for the Index the measure publishedby the U.S. Department of Labor which most nearly approximates the Index.

           (a)        Provided, however, that from and after August 1, 2003, upon written notice of Lessorgiven to Lessee at least ten (10) days prior to the due date for Rent, the Monthly Rent shall be restored to Ninety-ThousandOne-Hundred Twenty-Nine and 47/100 Dollars ($90,129.47).

           Except as modifiedherein, the Lease remains enforceable according to its tenor as set forth therein.

 

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IN WITNESS WHEREOF, the parties have executed this agreement pursuant to authority dulygiven.

                                                           LESSOR:

                                                           THE SPEIZMAN LLC

                                                           */s/ Robert S.Speizman                        *(SEAL)                                                           Robert S. Speizman, Manager

                                                           

                                                           LESSEE:

                                                           SPEIZMAN INDUSTRIES, INC.

                                                           By:*/s/ Robert S.Speizman                   *(SEAL)                                                                Robert S. Speizman, President

NORTH CAROLINA

MECKLENBURG COUNTY

            I, a Notary Public forsaid County and State, do hereby certify that Robert S. Speizman personally appeared before me this day and acknowledged that he isthe Manager of The Speizman LLC, a North Carolina limited liability company, and further acknowledged the due execution of thisinstrument on behalf of and as the authorized act and deed of such limited liability company.

            Witness my hand andofficial stamp or seal, this the        1st day of May, 2002.

                                                                       */s/ L. GailGormly                              *                                                                                               Notary Public

My commission expires: 11-11-2005

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NORTH CAROLINA

MECKLENBURG COUNTY

            I, a Notary Public forsaid County and State, do hereby certify that Robert S. Speizman personally came before me this day and acknowledged that he is thePresident of Speizman Industries, Inc. and that by authority duly given and as the act of the corporation, the foregoing instrumentwas signed in its name by authority duly given.

              Witness my handand official stamp or seal, this the 1st day of May, 2002.

                                                                       */s/ L. GailGormly                              *                                                                                               Notary Public

My commission expires:11-11-2005

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