Document:

Exhibit 10.2

                                 PROMISSORY NOTE

$2,500,000.00

                                                                January 22, 2007

CULP, INC.
1823 East Chester Drive
High Point, North Carolina  27265
(hereinafter referred to as "Borrower")

WACHOVIA BANK, NATIONAL ASSOCIATION
Charlotte, North Carolina  28202
(hereinafter referred to as "Bank")

Borrower  promises  to pay to the order of Bank,  in lawful  money of the United
States of  America,  at its office  indicated  above or  wherever  else Bank may
specify,  the sum of Two  Million,  Five  Hundred  Thousand  and No/100  Dollars
($2,500,000.00)  or such sum as may be  advanced  and  outstanding  from time to
time, with interest on the unpaid principal balance at the rate and on the terms
provided  in  this  Promissory  Note  (including  all  renewals,  extensions  or
modifications hereof, this "Note").

LOAN  AGREEMENT.  This Note is subject to the provisions of that certain Amended
and Restated Credit  Agreement  between Bank and Borrower dated August 23, 2002,
as now or hereafter modified from time to time (the "Credit Agreement").

USE OF PROCEEDS.  Borrower  shall use the  proceeds of the loan(s)  evidenced by
this Note for the  commercial  purposes  of  Borrower,  as  follows:  To provide
funding  for the  acquisition  by  Borrower of the  mattress  ticking  assets of
International Textile Group Inc.

SECURITY.  Borrower  has  granted  Bank  a lien  and  security  interest  in the
collateral described in the Loan Documents,  including, but not limited to, real
and  personal  property  collateral  described  in that  certain  Deed of Trust,
Assignment of Rents,  Security  Agreement and Fixture Filing,  dated October 25,
2005,  and recorded in Book 6423,  at Page 328,  Guilford  County  Registry (the
"Deed of Trust").

INTEREST  RATE.  Interest shall accrue on the unpaid  principal  balance of this
Note during each Interest  Period from the date hereof at a rate per annum equal
to 1-month LIBOR plus 3.0% ("Interest Rate").  Interest for each Interest Period
shall accrue each day during such Interest  Period,  commencing on and including
the first day to but excluding the last day. "Interest Period" means each period
commencing  on the last day of the  immediately  preceding  Interest  Period and
ending on the same day of the month  that  interest  is due 1 month  thereafter;
provided (i) the first Interest Period shall commence on the date hereof and end
on the first day thereafter  that interest is due, (ii) any Interest Period that
ends in a month for which there is no day which  numerically  corresponds to the
last day of the immediately  preceding Interest Period shall end on the last day
of the month and (iii) any Interest Period that would otherwise  extend past the
maturity date of this Note shall end on the maturity date of this Note.  "LIBOR"
means,  with respect to each Interest Period,  the rate for U.S. dollar deposits
with a maturity equal to the number of months  specified  above,  as reported on
Telerate page 3750 as of 11:00 a.m.,  London time, on the second London business
day  before  such  Interest  Period  begins  (or  if not so  reported,  then  as
determined by the Bank from another recognized source or interbank quotation).

INDEMNIFICATION. Borrower shall indemnify Bank against Bank's loss or expense as
a consequence of (a) Borrower's  failure to make any payment when due under this
Note, (b) any payment,  prepayment or conversion of any loan on a day other than
the last day of the Interest  Period,  or (c) any failure to make a borrowing or
conversion  after giving notice  thereof  ("Indemnified  Loss or Expense").  The
amount of such  Indemnified  Loss or Expense  shall be  determined by Bank based
upon the  assumption  that Bank funded  100% of that  portion of the loan in the
London interbank market.

<PAGE>

DEFAULT  RATE.  In addition to all other  rights  contained  in this Note,  if a
Default  (as  defined  herein)  occurs and as long as a Default  continues,  all
outstanding  Obligations,  other than Obligations  under any swap agreements (as
defined in 11 U.S.C.  ss. 101, as in effect from time to time) between  Borrower
and Bank or its  affiliates,  shall bear  interest at the Interest  Rate plus 3%
("Default Rate").  The Default Rate shall also apply from acceleration until the
Obligations or any judgment thereon is paid in full.

INTEREST AND FEE(S) COMPUTATION  (ACTUAL/360).  Interest and fees, if any, shall
be computed on the basis of a 360-day year for the actual  number of days in the
applicable  period  ("Actual/360   Computation").   The  Actual/360  Computation
determines the annual  effective yield by taking the stated (nominal) rate for a
year's period and then dividing said rate by 360 to determine the daily periodic
rate to be applied for each day in the  applicable  period.  Application  of the
Actual/360  Computation produces an annualized effective interest rate exceeding
the nominal rate.

REPAYMENT  TERMS.  This Note  shall be due and  payable in  consecutive  monthly
payments of accrued  interest  only,  commencing on February 25, 2007  ("Payment
Commencement  Date"),  and  continuing on the same day of each month  thereafter
until fully paid. In any event,  all principal and accrued interest shall be due
and payable on June 30, 2010 (the "Maturity Date").

AUTOMATIC DEBIT OF CHECKING ACCOUNT FOR LOAN PAYMENT.  Borrower  authorizes Bank
to debit demand deposit account number  2040231023238  or any other account with
Bank (routing number 0543000219) designated in writing by Borrower, beginning on
the Payment  Commencement  Date for any payments  due under this Note.  Borrower
further  certifies that Borrower holds legitimate  ownership of this account and
preauthorizes this periodic debit as part of its right under said ownership.

COMMITMENT FEE. Borrower shall pay to Bank a commitment fee of $10,000.00 on the
date hereof, which fee, once paid, shall be fully earned and non-refundable.

APPLICATION OF PAYMENTS. Monies received by Bank from any source for application
toward payment of the Obligations  shall be applied to accrued interest and then
to principal.  If a Default occurs,  monies may be applied to the Obligations in
any manner or order deemed appropriate by Bank.

If any  payment  received  by Bank under this Note or other  Loan  Documents  is
rescinded,  avoided or for any reason  returned  by Bank  because of any adverse
claim or threatened  action,  the returned  payment  shall remain  payable as an
obligation  of all persons  liable  under this Note or other Loan  Documents  as
though such payment had not been made.

DEFINITIONS. Loan Documents. The term "Loan Documents", as used in this Note and
the other Loan  Documents,  refers to this Note,  the Deed of Trust,  the Credit
Agreement,  and all documents executed in connection with or related to the loan
evidenced by this Note and any prior notes which  evidence all or any portion of
the loan  evidenced by this Note,  and any letters of credit issued  pursuant to
the Credit  Agreement to which this Note is subject,  any  applications for such
letters of credit and any other  documents  executed in connection  therewith or
related thereto, and may include,  without limitation,  a commitment letter that
survives   closing,   guaranty   agreements,   security   agreements,   security
instruments,   financing  statements,  mortgage  instruments,  any  renewals  or
modifications,  whenever any of the foregoing are executed, but does not include
swap  agreements  (as  defined in 11 U.S.C.  ss.  101, as in effect from time to
time). Obligations.  The term "Obligations",  as used in this Note and the other
Loan Documents,  refers to any and all indebtedness and other  obligations under
this  Note,  all other  obligations  under any other Loan  Document(s),  and all
obligations  under any swap  agreements (as defined in 11 U.S.C.  ss. 101, as in
effect from time to time) between Borrower and Bank, or its affiliates, whenever
executed. Certain Other Terms. All terms that are used but not otherwise defined
in any of the Loan Documents shall have the definitions  provided in the Uniform
Commercial Code.

                                     Page 2
<PAGE>

LATE CHARGE.  If any payments  are not timely made,  Borrower  shall also pay to
Bank a late  charge  equal to 4% of each  payment  past due for 15 or more days.
This late charge shall not apply to payments due at maturity or by  acceleration
hereof,  unless such late  payment is in an amount not greater  than the highest
periodic payment due hereunder.

Acceptance by Bank of any late payment without an accompanying late charge shall
not be deemed a waiver of Bank's right to collect such late charge or to collect
a late charge for any subsequent late payment received.

ATTORNEYS'  FEES AND OTHER  COLLECTION  COSTS.  Borrower shall pay all of Bank's
reasonable  expenses  actually  incurred  to  enforce  or  collect  any  of  the
Obligations including, without limitation, reasonable arbitration,  paralegals',
attorneys'  and  experts'  fees  and  expenses,  whether  incurred  without  the
commencement of a suit, in any trial, arbitration, or administrative proceeding,
or in any appellate or bankruptcy proceeding.

USURY. If at any time the effective interest rate under this Note would, but for
this  paragraph,  exceed the maximum  lawful rate,  the effective  interest rate
under this Note shall be the maximum  lawful  rate,  and any amount  received by
Bank in excess of such rate shall be applied to  principal  and then to fees and
expenses, or, if no such amounts are owing, returned to Borrower.

DEFAULT.  If any of the following occurs, a default  ("Default") under this Note
shall  exist:  Nonpayment;  Nonperformance.  The  failure  of timely  payment or
performance  of the  Obligations  or  Default  under this Note or any other Loan
Documents.  False Warranty.  A warranty or representation made or deemed made in
the Loan  Documents or furnished  Bank in connection  with the loan evidenced by
this  Note  proves  materially  false,  or if of a  continuing  nature,  becomes
materially  false.  Cross Default.  At Bank's option,  any default in payment or
performance  of any obligation  under the Credit  Agreement or Deed of Trust (or
any other note secured by the Deed of Trust).

REMEDIES  UPON  DEFAULT.  If a  Default  occurs  under  this  Note  or any  Loan
Documents,  Bank may at any time thereafter,  take the following  actions:  Bank
Lien.  Foreclose  its  security  interest  or lien  against  Borrower's  deposit
accounts and investment  property  without  notice.  Acceleration  Upon Default.
Accelerate  the  maturity of this Note and, at Bank's  option,  any or all other
Obligations,  other than Obligations under any swap agreements (as defined in 11
U.S.C.  ss. 101, as in effect from time to time)  between  Borrower and Bank, or
its  affiliates,  which  shall be due in  accordance  with and  governed  by the
provisions  of said swap  agreements;  whereupon  this Note and the  accelerated
Obligations  shall be immediately  due and payable;  provided,  however,  if the
Default is based upon a  bankruptcy  or  insolvency  proceeding  commenced by or
against  Borrower or any  guarantor  or endorser of this Note,  all  Obligations
(other than  Obligations  under any swap  agreement as  referenced  above) shall
automatically  and  immediately  be due and  payable.  Cumulative.  Exercise any
rights and remedies as provided under the Note and other Loan  Documents,  or as
provided by law or equity.

FINANCIAL AND OTHER  INFORMATION.  Borrower  shall deliver to Bank the financial
information,  in each instance  prepared in accordance  with generally  accepted
accounting principles  consistently applied and otherwise in form (with original
signatures)  and  substance  satisfactory  to Bank,  as and when  required to be
delivered by Borrower to Bank in  accordance  with the  provisions of the Credit
Agreement (whether or not the Credit Agreement has terminated).

FINANCIAL  COVENANTS.  Borrower  shall comply in all respects with the financial
covenants contained in the Credit Agreement (whether or not the Credit Agreement
has terminated).

WAIVERS AND AMENDMENTS. No waivers, amendments or modifications of this Note and
other Loan  Documents  shall be valid unless in writing and signed by an officer
of Bank. No waiver by Bank of any Default shall operate as a waiver of any other
Default or the same  Default on a future  occasion.  Neither the failure nor any
delay on the part of Bank in exercising any right,  power,  or remedy under this
Note and other Loan  Documents  shall operate as a waiver  thereof,  nor shall a
single or  partial  exercise  thereof  preclude  any other or  further  exercise
thereof or the exercise of any other right, power or remedy.

                                     Page 3
<PAGE>

Except to the extent  otherwise  provided by the Loan Documents or prohibited by
law,  each  Borrower  and each  other  person  liable  under  this  Note  waives
presentment,  protest,  notice  of  dishonor,  demand  for  payment,  notice  of
intention to accelerate maturity,  notice of acceleration of maturity, notice of
sale and all other notices of any kind.  Further,  each agrees that Bank may (i)
extend,  modify or renew this Note or make a novation of the loan  evidenced  by
this Note,  and/or (ii) grant releases,  compromises or indulgences with respect
to any  collateral  securing this Note, or with respect to any Borrower or other
person liable under this Note or any other Loan Documents, all without notice to
or consent of each  Borrower and other such person,  and without  affecting  the
liability of each Borrower and other such person; provided, Bank may not extend,
modify or renew this Note or make a novation of the loan  evidenced by this Note
without  the  consent of the  Borrower,  or if there is more than one  Borrower,
without the consent of at least one Borrower;  and further provided, if there is
more than one  Borrower,  Bank may not enter  into a  modification  of this Note
which increases the burdens of a Borrower without the consent of that Borrower.

MISCELLANEOUS  PROVISIONS.  Assignment.  This Note and the other Loan  Documents
shall  inure to the  benefit  of and be  binding  upon  the  parties  and  their
respective  heirs,  legal  representatives,   successors  and  assigns.   Bank's
interests in and rights under this Note and the other Loan  Documents are freely
assignable,  in whole or in part, by Bank. In addition,  nothing in this Note or
any of the other Loan  Documents  shall prohibit Bank from pledging or assigning
this Note or any of the other  Loan  Documents  or any  interest  therein to any
Federal  Reserve  Bank.  Borrower  shall not  assign  its  rights  and  interest
hereunder without the prior written consent of Bank, and any attempt by Borrower
to assign without Bank's prior written  consent is null and void. Any assignment
shall not release Borrower from the Obligations.  Organization; Powers. Borrower
represents that Borrower (i) is a corporation  duly organized,  validly existing
and in good  standing  under  the  laws of its  state  of  organization,  and is
authorized  to do business in each other  jurisdiction  wherein its ownership of
property or conduct of business legally requires such organization; (ii) has the
power  and  authority  to own its  properties  and  assets  and to  carry on its
business as now being conducted and as now contemplated; and (iii) has the power
and authority to execute,  deliver and perform,  and by all necessary action has
authorized the execution,  delivery and  performance  of, all of its obligations
under this Note and any other Loan  Document to which it is a party.  Compliance
with Laws. Borrower represents that Borrower and any subsidiary and affiliate of
Borrower and any  guarantor  are in compliance in all respects with all federal,
state and  local  laws,  rules and  regulations  applicable  to its  properties,
operations,  business, and finances,  including, without limitation, any federal
or state laws  relating to liquor  (including  18 U.S.C.  ss. 3617,  et seq.) or
narcotics  (including 21 U.S.C. ss. 801, et seq.) and/or any commercial  crimes;
all applicable federal, state and local laws and regulations intended to protect
the  environment;  and the Employee  Retirement  Income Security Act of 1974, as
amended  ("ERISA"),  if  applicable.  None of  Borrower,  or any  subsidiary  or
affiliate of Borrower or any guarantor is a Sanctioned  Person or has any of its
assets in a Sanctioned  Country or does  business in or with,  or derives any of
its  operating  income from  investments  in or  transactions  with,  Sanctioned
Persons or Sanctioned Countries in violation of economic sanctions  administered
by OFAC.  The proceeds from the Loan will not be used to fund any operations in,
finance any  investments or activities in, or make any payments to, a Sanctioned
Person  or a  Sanctioned  Country.  "OFAC"  means  the  U.S.  Department  of the
Treasury's  Office of  Foreign  Assets  Control.  "Sanctioned  Country"  means a
country subject to a sanctions program identified on the list maintained by OFAC
and available at http://www.treas.gov/offices/enforcement/ofac/sanctions/, or as
otherwise  published from time to time.  "Sanctioned  Person" means (i) a person
named  on  the  list  of  Specially  Designated  Nationals  or  Blocked  Persons
maintained by OFAC available at

                                     Page 4
<PAGE>

http://www.treas.gov/offices/enforcement/ofac/sdn/,  or as  otherwise  published
from  time to time,  or (ii) (A) an  agency of the  government  of a  Sanctioned
Country, (B) an organization controlled by a Sanctioned Country, or (C) a person
resident in a Sanctioned  Country,  to the extent subject to a sanctions program
administered by OFAC. Applicable Law; Conflict Between Documents. This Note and,
unless otherwise  provided in any other Loan Document,  the other Loan Documents
shall be governed by and interpreted under the laws of the state named in Bank's
address on the first page hereof without regard to that state's conflict of laws
principles. If the terms of this Note should conflict with the terms of any loan
agreement or any commitment letter that survives closing, the terms of this Note
shall control. Borrower's Accounts. Except as prohibited by law, Borrower grants
Bank a security  interest in all of Borrower's  deposit  accounts and investment
property  with  Bank  and  any of its  affiliates.  Swap  Agreements.  All  swap
agreements (as defined in 11 U.S.C. ss. 101, as in effect from time to time), if
any,  between  Borrower and Bank or its  affiliates are  independent  agreements
governed by the written provisions of said swap agreements, which will remain in
full force and effect,  unaffected by any repayment,  prepayment,  acceleration,
reduction,  increase  or change in the terms of this Note,  except as  otherwise
expressly  provided in said written swap  agreements,  and any payoff  statement
from Bank relating to this Note shall not apply to said swap  agreements  except
as otherwise expressly provided in such payoff statement. Jurisdiction. Borrower
irrevocably  agrees  to  non-exclusive   personal   jurisdiction  in  the  state
identified as the  Jurisdiction  above.  Severability.  If any provision of this
Note or of the  other  Loan  Documents  shall be  prohibited  or  invalid  under
applicable  law, such provision  shall be ineffective  but only to the extent of
such  prohibition  or  invalidity,  without  invalidating  the remainder of such
provision  or the  remaining  provisions  of this Note or other  such  document.
Notices.  Any notices to Borrower shall be sufficiently given, if in writing and
mailed or delivered to the Borrower's  address shown above or such other address
as provided  hereunder,  and to Bank,  if in writing and mailed or  delivered to
Wachovia Bank, National Association, Mail Code VA7628, P. O. Box 13327, Roanoke,
VA 24040 or Wachovia  Bank,  National  Association,  Mail Code VA7628,  10 South
Jefferson Street, Roanoke, VA 24011 or such other address as Bank may specify in
writing from time to time.  Notices to Bank must  include the mail code.  In the
event that Borrower changes Borrower's address at any time prior to the date the
Obligations are paid in full, Borrower agrees to promptly give written notice of
said  change  of  address  by  registered  or  certified  mail,  return  receipt
requested,  all charges prepaid.  Plural;  Captions.  All references in the Loan
Documents to Borrower,  guarantor,  person, document or other nouns of reference
mean  both the  singular  and  plural  form,  as the  case may be,  and the term
"person" shall mean any individual,  person or entity. The captions contained in
the Loan  Documents are inserted for  convenience  only and shall not affect the
meaning or interpretation of the Loan Documents. Advances. Bank may, in its sole
discretion,  make other advances which shall be deemed to be advances under this
Note, even though the stated  principal amount of this Note may be exceeded as a
result thereof. Posting of Payments. All payments received during normal banking
hours  after 2:00 p.m.  local time at the office of Bank first shown above shall
be deemed  received at the opening of the next  banking  day.  Joint and Several
Obligations.  If there is more than one Borrower,  each is jointly and severally
obligated  together with all other parties  obligated for the Obligations.  Fees
and Taxes. Borrower shall promptly pay all documentary,  intangible  recordation
and/or similar taxes on this transaction  whether assessed at closing or arising
from time to time. LIMITATION ON LIABILITY;  WAIVER OF PUNITIVE DAMAGES. EACH OF
THE PARTIES  HERETO,  INCLUDING  BANK BY ACCEPTANCE  HEREOF,  AGREES THAT IN ANY
JUDICIAL,  MEDIATION  OR  ARBITRATION  PROCEEDING  OR ANY  CLAIM OR  CONTROVERSY
BETWEEN OR AMONG THEM THAT MAY ARISE OUT OF OR BE IN ANY WAY CONNECTED WITH THIS
AGREEMENT,  THE LOAN  DOCUMENTS OR ANY OTHER  AGREEMENT  OR DOCUMENT  BETWEEN OR
AMONG THEM OR THE OBLIGATIONS  EVIDENCED  HEREBY OR RELATED HERETO,  IN NO EVENT
SHALL ANY PARTY HAVE A REMEDY OF, OR BE LIABLE TO THE OTHER FOR,  (1)  INDIRECT,
SPECIAL OR CONSEQUENTIAL  DAMAGES OR (2) PUNITIVE OR EXEMPLARY DAMAGES.  EACH OF
THE PARTIES HEREBY  EXPRESSLY WAIVES ANY RIGHT OR CLAIM TO PUNITIVE OR EXEMPLARY
DAMAGES  THEY MAY HAVE OR WHICH MAY ARISE IN THE FUTURE IN  CONNECTION  WITH ANY
SUCH  PROCEEDING,  CLAIM  OR  CONTROVERSY,  WHETHER  THE  SAME  IS  RESOLVED  BY
ARBITRATION,  MEDIATION,  JUDICIALLY OR OTHERWISE.  Patriot Act Notice.  To help
fight the funding of  terrorism  and money  laundering  activities,  Federal law
requires all financial  institutions to obtain,  verify,  and record information
that identifies each person who opens an account.  For purposes of this section,
account shall be understood to include loan accounts. Final Agreement. This Note
and the other Loan Documents  represent the final agreement  between the parties
and may not be contradicted by evidence of prior,  contemporaneous or subsequent
oral agreements of the parties.  There are no unwritten oral agreements  between
the parties.

ARBITRATION.  Upon  demand of any party  hereto,  whether  made  before or after
institution of any judicial proceeding,  any claim or controversy arising out of
or relating to the Loan Documents  between parties hereto (a "Dispute") shall be
resolved by binding  arbitration  conducted under and governed by the Commercial
Financial Disputes  Arbitration Rules (the "Arbitration  Rules") of the American
Arbitration  Association (the "AAA") and the Federal  Arbitration Act.  Disputes
may include,  without limitation,  tort claims,  counterclaims,  a dispute as to
whether a matter is subject to  arbitration,  or claims  arising from  documents
executed in the future,  but shall  specifically  exclude  claims  brought as or
converted  to class  actions.  A  judgment  upon the award may be entered in any
court having  jurisdiction.  Notwithstanding  the  foregoing,  this  arbitration
provision  does not  apply to  disputes  under or  related  to swap  agreements.
Special Rules. All arbitration  hearings shall be conducted in the city named in
the address of Bank first stated above.  A hearing shall begin within 90 days of
demand for arbitration and all hearings shall conclude within 120 days of demand
for arbitration. These time limitations may not be extended unless a party shows
cause for extension and then for no more than a total of 60 days.  The expedited
procedures  set  forth  in Rule 51 et seq.  of the  Arbitration  Rules  shall be
applicable to claims of less than  $1,000,000.00.  Arbitrators shall be licensed
attorneys  selected from the Commercial  Financial Dispute  Arbitration Panel of
the AAA. The parties do not waive  applicable  Federal or state  substantive law
except  as  provided   herein.   Preservation   and   Limitation   of  Remedies.
Notwithstanding the preceding binding arbitration provisions,  the parties agree
to preserve,  without  diminution,  certain remedies that any party may exercise
before or after an arbitration proceeding is brought. The parties shall have the
right to proceed in any court of proper jurisdiction or by self-help to exercise
or prosecute the following remedies, as applicable:  (i) all rights to foreclose
against any real or personal property or other security by exercising a power of
sale or under applicable law by judicial  foreclosure  including a proceeding to
confirm the sale; (ii) all rights of self-help  including peaceful occupation of
real  property and  collection  of rents,  set-off,  and peaceful  possession of
personal property;  (iii) obtaining  provisional or ancillary remedies including
injunctive  relief,  sequestration,   garnishment,  attachment,  appointment  of
receiver  and  filing  an  involuntary  bankruptcy  proceeding;  and  (iv)  when
applicable,  a judgment by confession of judgment. Any claim or controversy with
regard to any party's entitlement to such remedies is a Dispute.  Waiver of Jury
Trial. THE PARTIES ACKNOWLEDGE THAT BY AGREEING TO BINDING ARBITRATION THEY HAVE
IRREVOCABLY  WAIVED  ANY  RIGHT  THEY MAY HAVE TO JURY  TRIAL  WITH  REGARD TO A
DISPUTE AS TO WHICH BINDING ARBITRATION HAS BEEN DEMANDED.

                                     Page 5
<PAGE>

IN WITNESS  WHEREOF,  Borrower,  on the day and year first  above  written,  has
caused this Note to be duly executed under seal.

            CULP, INC.                                          (SEAL)

            By: /s/ Kenneth R. Bowling

            Name: Kenneth R. Bowling, Title: Vice President, Finance & Treasurer

                                     Page 6Exhibit 10.3

                         TENTH AMENDMENT TO AMENDED AND
                            RESTATED CREDIT AGREEMENT

     THIS TENTH  AMENDMENT  TO AMENDED AND  RESTATED  CREDIT  AGREEMENT  ("Tenth
Amendment")  is made as of the 22 day of January,  2007,  by and  between  CULP,
INC., a North Carolina  corporation  (together with its successors and permitted
assigns,  the "Borrower"),  and WACHOVIA BANK, NATIONAL  ASSOCIATION  (formerly,
Wachovia Bank,  N.A.), a national  banking  association,  as Agent and as a Bank
(together with its endorsees, successors and assigns, the "Bank").

                                   BACKGROUND
                                   ----------

     The  Borrower  and the Bank  entered  into an Amended and  Restated  Credit
Agreement,  dated as of August  23,  2002,  as amended  by Second  Amendment  to
Amended and Restated Credit Agreement (the "Second Amendment"), dated as of June
3, 2003, by Third Amendment to Amended and Restated Credit Agreement (the "Third
Amendment"),  dated as of August 23,  2004,  by Fourth  Amendment to Amended and
Restated Credit Agreement ("Fourth Amendment"), dated as of December 7, 2004, by
Fifth Amendment to Amended and Restated  Credit  Agreement  ("Fifth  Amendment")
dated as of February 18, 2005, by Sixth Amendment to Amended and Restated Credit
Agreement ("Sixth Amendment"), dated as of August 30, 2005, by Seventh Amendment
to Amended and Restated  Credit  Agreement  ("Seventh  Amendment"),  dated as of
December 7, 2005, by Eighth  Amendment to Amended and Restated Credit  Agreement
("Eighth  Amendment"),  dated as of January 29, 2006, and by Ninth  Amendment to
Amended  and  Restated  Credit  Agreement,  dated  as of July 20,  2006  ("Ninth
Amendment") (it being acknowledged by the parties hereto that the proposed First
Amendment  to  Amended  and  Restated  Credit  Agreement,  which had been  under
discussion in March 2003,  was never  executed by the parties and is of no force
or effect; otherwise, such agreement, as amended by the Second Amendment,  Third
Amendment,   Fourth  Amendment,  Fifth  Amendment,   Sixth  Amendment,   Seventh
Amendment,  Eighth  Amendment,  and  Ninth  Amendment  and as it may be  further
amended, restated,  supplemented and/or modified, shall be referred to herein as
the "Credit Agreement"). Terms used herein and not herein defined shall have the
meanings given to them in the Credit Agreement.

     The Borrower has now requested  additional  amendments to the provisions of
the Credit  Agreement,  which the Bank is willing to accommodate  subject to the
terms, provisions and conditions set forth in this Tenth Amendment.

     NOW,  THEREFORE,  in  consideration  of the  premises  and  other  good and
valuable  consideration,  the  receipt  and  sufficiency  of  which  are  hereby
acknowledged, the Borrower and the Bank hereby agree as follows:

<PAGE>

     1. Amendments to Credit  Agreement.  The Credit Agreement is hereby amended
as follows:

     (a) The following definition in Section 1.01 is hereby amended and restated
in its entirety to read as follows:

          "Termination  Date" means  whichever is applicable of (i) December 31,
     2007, (ii) the date the Commitments are terminated pursuant to Section 6.01
     following  the  occurrence  of an Event of  Default,  or (iii) the date the
     Borrower terminates the Commitments entirely pursuant to Section 2.08.

     (b) The  definition  of  "Existing  Letters of Credit" set forth in Section
1.01 is  hereby  amended  by  deleting  clause  (iv),  which  was  added to such
definition by the Sixth Amendment, and by inserting in lieu thereof a new clause
(iv) which shall read as follows:

          "(iv) those additional letters of credit which have been issued by the
     Bank for the  account  of the  Borrower  prior  to the  date of this  Tenth
     Amendment  and  which  remain   outstanding  on  the  date  of  this  Tenth
     Amendment."

     (c) The  aggregate  amount of the  Commitment of the Bank and the aggregate
amount of the  Total  Commitments,  each as set  forth on page 62 of the  Credit
Agreement, are hereby reduced to $6,500,000.00.

     (d) Section 5.24 of the Credit  Agreement is hereby amended and restated in
its entirety to read as follows:

          "Section 5.24 Capital Expenditures. Aggregate Capital Expenditures for
     any Fiscal Year will not exceed $3,000,000.00."

     (e) Section 5.26 of the Credit Agreement entitled  "Liquidity  Requirement"
is hereby deleted in its entirety.

     (f) Section 5.27 of the Credit  Agreement is hereby amended and restated in
its entirety to read as follows:

          "Section  5.27.  Minimum  EBITDA.  EBITDA,  for the  following  Fiscal
     Quarters of Fiscal Year 2007 shall equal or exceed the following amounts:

          Fiscal Quarter Ending January 28, 2007               $10,000,000
          Fiscal Quarter Ending April 29, 2007                 $11,000,000
          Fiscal Quarter Ending July 29, 2007                  $11,500,000
          Fiscal Quarter Ending October 28, 2007
           and for all Fiscal Quarters thereafter              $12,500,000."

                                      -2-
<PAGE>

     2.  Further  Assurances.   The  Borrower  will  execute  such  confirmatory
instruments,  if any,  with  respect  to the  Credit  Agreement  and this  Tenth
Amendment as the Bank may reasonably request.

     3. Ratification by Borrower.  The Borrower ratifies and confirms all of its
representations,  warranties,  covenants,  liabilities and obligations under the
Credit  Agreement  (except as expressly  modified by this Tenth  Amendment)  and
agrees  that:  (i) except as  expressly  modified by this Tenth  Amendment,  the
Credit Agreement continues in full force and effect as if set forth specifically
herein; and (ii) the Borrower has no right of setoff, counterclaim or defense to
payment of its obligations under the Credit Agreement. The Borrower and the Bank
agree  that this Tenth  Amendment  shall not be  construed  as an  agreement  to
extinguish the Borrower's  obligations  under the Credit  Agreement or the Notes
and shall not constitute a novation as to the  obligations of the Borrower under
the Credit Agreement or the Notes. The Bank hereby expressly reserves all rights
and remedies it may have against all parties who may be or may hereafter  become
secondarily  liable  for the  repayment  of the  obligations  under  the  Credit
Agreement or the Notes.

     4.  Amendments.  This Tenth  Amendment may not itself be amended,  changed,
modified,  altered,  or  terminated  without in each  instance the prior written
consent of the Bank.  This Tenth Amendment shall be construed in accordance with
and governed by the laws of the State of North Carolina.

     5.  Counterparts.  This Tenth  Amendment  may be  executed in any number of
counterparts,  each of which shall be deemed to be an original and all of which,
taken together, shall constitute one and the same agreement.

     6.  Bank's  Expenses.  In  accordance  with  Section  9.03  of  the  Credit
Agreement,  Borrower  hereby  acknowledges  and  agrees  to pay  all  reasonable
out-of-pocket  expenses  incurred by the Bank in connection with the preparation
of this Tenth Amendment,  including  without  limitation  reasonable  attorneys'
fees.

                            [Signature Page Follows]

                                      -3-
<PAGE>

     IN WITNESS WHEREOF,  this Tenth Amendment has been duly executed under seal
by Borrower and Bank as of the day and year first above written.

                                      BORROWER:

                                      CULP, INC.                          (SEAL)

                                      By: /s/ Kenneth R. Bowling
                                      Name:  Kenneth R. Bowling
                                      Title: Vice President, Finance & Treasurer

                                      BANK:

                                      WACHOVIA BANK, NATIONAL ASSOCIATION,
                                      as Agent and as Bank                (SEAL)

                                      By: /s/ Matthew M. Rankin
                                      Name: Matthew M. Rankin
                                      Title: Senior Vice President

                                      -4-

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