Document:

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                                  Exhibit (10h)

                                SECOND AMENDMENT

         THIS SECOND AMENDMENT (this "Amendment"), dated as of August 6, 2003 is
by and among UNIFI, INC., a New York corporation (the "Parent"), certain
Subsidiaries of the Parent (each a "Borrower", and collectively with the Parent,
the "Borrowers"), THE PERSONS IDENTIFIED AS THE LENDERS ON THE SIGNATURE PAGES
HERETO (the "Lenders"), and BANK OF AMERICA, N.A., as Agent for the Lenders (the
"Agent").

                              W I T N E S S E T H:

         WHEREAS, pursuant to the Credit Agreement dated as of December 7, 2001,
as amended by that certain Reallocation Amendment and Assignment dated as of
January 1, 2003, and as further amended from time to time (the "Existing Credit
Agreement") among the Borrowers, the Existing Lenders and the Agent, the
Existing Lenders have extended commitments to make certain credit facilities
available to the Borrowers;

         WHEREAS, the Borrowers desire to amend certain provisions of the
Existing Credit Agreement;

         WHEREAS, the parties hereto have agreed to amend the Existing Credit
Agreement as set forth herein.

         NOW, THEREFORE, in consideration of the agreements herein contained and
other good and valuable consideration, the parties hereby agree as follows:

                                     PART I
                                   DEFINITIONS

         SUBPART 1.1. Certain Definitions. Unless otherwise defined herein or
the context otherwise requires, the following terms used in this Amendment,
including its preamble and recitals, have the following meanings:

                  "Amended Credit Agreement" means the Existing Credit Agreement
         as amended hereby.

                  "Second Amendment Effective Date" shall have the meaning set
         forth in Subpart 3.1.

         SUBPART 1.2. Other Definitions. Unless otherwise defined herein or the
context otherwise requires, terms used in this Amendment, including its preamble
and recitals, have the meanings provided in the Amended Credit Agreement.

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                                     PART II
                     AMENDMENTS TO EXISTING CREDIT AGREEMENT

         SUBPART 2.1. Amendment to Section 7.10. The text of Section 7.10 of the
Credit Agreement is hereby amended and restated in its entirety to read as
follows:

                  No Borrower shall (a) directly or indirectly declare or make,
         or incur any liability to make Distributions (provided, however, (x)
         Distributions may be made to the Parent or any Borrower from any of its
         Subsidiaries and (y) Distributions may be made by the Parent so long as
         (i) Availability shall be at least $25,000,000 after giving effect
         thereto and (ii) no Default or Event of Default shall exist prior to or
         immediately after the making of any such Distributions), (b) make any
         change in its capital structure which could have a Material Adverse
         Effect or (c) make any Restricted Investments.

                                    PART III
                           CONDITIONS TO EFFECTIVENESS

         SUBPART 3.1. Second Amendment Effective Date. This Amendment shall be
and become effective as of the date hereof when all of the conditions set forth
in this Part III shall have been satisfied (the "Second Amendment Effective
Date"), and thereafter this Amendment shall be known, and may be referred to, as
"Second Amendment."

         SUBPART 3.2. Execution of Counterparts of Amendment. The Agent shall
have received counterparts of this Amendment, which collectively shall have been
duly executed on behalf of each of the Borrowers, the Agent and the Lenders.

         SUBPART 3.3. Fees and Expenses. The Borrowers shall have paid all fees
and expenses of the Agent and the Lenders in connection with this Amendment and
the extensions of credit hereunder.

                                     PART IV
                                  MISCELLANEOUS

         SUBPART 4.1. Cross-References. References in this Amendment to any Part
or Subpart are, unless otherwise specified, to such Part or Subpart of this
Amendment.

         SUBPART 4.2. References in Other Credit Documents. At such time as this
Amendment shall become effective pursuant to the terms of Subpart 3.1, all
references in the Existing Credit Agreement to the "Credit Agreement" and all
references in the other Loan Documents to the "Credit Agreement" shall be deemed
to refer to the Amended Credit Agreement.

         SUBPART 4.3. Representations and Warranties of the Borrower. Each
Borrower hereby represents and warrants that (a) the conditions precedent to the
initial Loans were satisfied as of

                                      -2-

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the Closing Date, (b) the representations and warranties contained in Section 6
of the Existing Credit Agreement (as amended by this Amendment) are correct in
all material respects on and as of the date hereof as though made on and as of
such date and after giving effect to the amendments contained herein and (c) no
Default or Event of Default exists under the Existing Credit Agreement on and as
of the date hereof and after giving effect to the amendments contained herein.

         SUBPART 4.4. Counterparts. This Amendment may be executed by the
parties hereto in several counterparts, each of which shall be deemed to be an
original and all of which shall constitute together but one and the same
agreement.

         SUBPART 4.5. Governing Law. THIS AMENDMENT SHALL BE DEEMED TO BE A
CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NORTH
CAROLINA WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW PRINCIPLES THEREOF.

         SUBPART 4.6. Successors and Assigns. This Amendment shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns.

            [The remainder of this page is intentionally left blank.]

                                      -3-
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         Each of the parties hereto has caused a counterpart of this Amendment
to be duly executed and delivered as of the date first above written.

BORROWERS:                            UNIFI, INC., a New York corporation
---------

                                      By: ROBERT J. KOCOUREK
                                          --------------------------------------
                                      Name:  Robert J. Kocourek
                                      Title: Vice President & CFO

                                      UNIFI MANUFACTURING, INC.,
                                      a North Carolina corporation

                                      By: ROBERT J. KOCOUREK
                                          --------------------------------------
                                      Name:  Robert J. Kocourek
                                      Title: Vice President & CFO

                                      GLENTOUCH YARN COMPANY, LLC,
                                      a North Carolina limited liability company

                                      By: ROBERT J. KOCOUREK
                                          --------------------------------------
                                      Name:  Robert J. Kocourek
                                      Title: Vice President & CFO

                                      UNIFI TEXTURED POLYESTER, LLC,
                                      a North Carolina limited liability company

                                      By: ROBERT J. KOCOUREK
                                          --------------------------------------
                                      Name:  Robert J. Kocourek
                                      Title: Vice President & CFO

                                      UNIFI SALES & DISTRIBUTION, INC.,
                                      a North Carolina corporation

                                      By: ROBERT J. KOCOUREK
                                          --------------------------------------
                                      Name:  Robert J. Kocourek
                                      Title: Vice President & CFO

                                      UNIFI MANUFACTURING VIRGINIA, LLC,
                                      a North Carolina limited liability company

                                      By: ROBERT J. KOCOUREK
                                          --------------------------------------
                                      Name:  Robert J. Kocourek
                                      Title: Vice President & CFO

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                                      UNIFI EXPORT SALES, LLC,
                                      a North Carolina limited liability company

                                      By: ROBERT J. KOCOUREK
                                          --------------------------------------
                                      Name:  Robert J. Kocourek
                                      Title: Vice President & CFO

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LENDERS:                              BANK OF AMERICA, N.A.,
-------                               in its capacity as Agent

                                      By:
                                          --------------------------------------
                                      Name:
                                            ------------------------------------
                                      Title:
                                             -----------------------------------

                                      BANK OF AMERICA, N.A.,
                                      in its capacity as a Lender,

                                      By:
                                          --------------------------------------
                                      Name:
                                            ------------------------------------
                                      Title:
                                             -----------------------------------

                                      THE CIT GROUP/COMMERCIAL SERVICES, INC.,

                                      By:
                                          --------------------------------------
                                      Name:
                                            ------------------------------------
                                      Title:
                                             -----------------------------------

                                      CONGRESS FINANCIAL CORPORATION (SOUTHERN),

                                      By:
                                          --------------------------------------
                                      Name:
                                            ------------------------------------
                                      Title:
                                             -----------------------------------

                                      FLEET CAPITAL CORPORATION,

                                      By:
                                          --------------------------------------
                                      Name:
                                            ------------------------------------
                                      Title:
                                             -----------------------------------

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                                      FOOTHILL CAPITAL CORPORATION,

                                      By:
                                          --------------------------------------
                                      Name:
                                            ------------------------------------
                                      Title:
                                             -----------------------------------

                                      PNC BUSINESS CREDIT,

                                      By:
                                          --------------------------------------
                                      Name:
                                            ------------------------------------
                                      Title:
                                             -----------------------------------

                                      CITIZENS BUSINESS CREDIT, A DIVISION OF
                                      CITIZENS LEASING CORPORATION,

                                      By:
                                          --------------------------------------
                                      Name:
                                            ------------------------------------
                                      Title:
                                             -----------------------------------<PAGE>

                                  EXHIBIT (10o)

                                  CONFIDENTIAL

December 8, 1999

Mr. Michael E. Delaney
1802 Tiffany Place
Greensboro, NC  27408

Dear Mike:

I am pleased to extend an offer of employment to you as the Senior Vice
President of Unifi, Inc., effective January 1, 2000. In this capacity, you will
report to me and be accountable for establishing and leading a best-of-class
marketing infrastructure for Unifi. Specific duties include strategic business
planning and budgeting, the comprehensive integration of commercial activity
into a unified branding strategy, the successful implementation of that strategy
and all other marketing-related activity. You will be expected to interact very
closely with customers to develop the commercial insights required for relevant
marketing positioning and campaigns. You will be expected to collaborate closely
with manufacturing, procurement, product development and executive management as
you develop and implement your plans. You will be responsible for the
development of e-commerce as it relates to the commercial strategy of our
company. You will also be responsible for planning and staffing the marketing
department as well as developing the processes that will enable successful
implementation of marketing programs.

The details of your compensation and benefits package, provided you accept our
offer, consists of the following:

1.       Base Salary
         Your base annual salary, effective upon your commencement of employment
         with Unifi is $225,000 to be paid at regular intervals in accordance
         with the general practices of the company.

2.       Bonus Opportunity
         Based on the Board of Directors Compensation Committee's recommendation
         achieving an earnings per share target of $1.10 for fiscal year 2000
         would provide a bonus of 50% of your base compensation. The bonus for
         fiscal year 2000 is based on a sliding scale and phases out below $.90
         per share with an up-side potential above $1.10 per share. The maximum
         bonus is equal to 100% of base salary. Please note that 50% of your
         bonus will be paid in Unifi shares and will be matched with an equal
         number. Should you elect to take a greater portion of

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         your bonus in stock, it, too, will be matched. The matching shares will
         vest over a three-year period beginning on the date of the match. The
         purpose of this is to help you achieve your obligation to hold three
         times your salary in stock.

3.       Stock Grant
         A grant of 5,000 restricted shares of common stock will be awarded
         effective with your start date. These shares will vest over a five-year
         period beginning on the day of the grant. You should be aware that, as
         a member of executive management, you will be expected to build toward
         and maintain a position in Unifi stock equal to three-times the value
         of your base salary.

4.       Options Award
         An award of options in common stock will be granted effective with your
         start date. The number of options to be received is equal to three
         times annual base compensation divided by the average share price on
         the date of the award. The options will vest over a five-year period
         beginning on the date of the option grant.

5.       Automobile Allowance
         An automobile allowance of $1,000 per month will be paid on the first
         day of each month. Additionally, Unifi will reimburse for actual auto
         expenses such as gas, oil, cleaning and normal repairs. Insurance costs
         and property taxes are not reimbursable.

6.       Life Insurance
         A split dollar life insurance package will be provided which will have
         a death benefit equal to three times annual base salary.

7.       Company Benefits
         You will participate in all company life, health, medical and dental
         plans as well as profit sharing and 401-K plans when eligible under the
         specific plan guidelines.

         a)       The company contribution to the profit sharing plan is
         discretionary based on the Board of Directors' recommendation, however,
         for the past three years, the contribution for an individual with a
         base salary of $225,000 would have been approximately $18,000.

         b)       The 401-K plan does not provide a company match.

8.       Signing Agreement
         Unifi recognizes that you are due a performance bonus from your current
         employer equal to 30% of your current base salary. Depending on Volvo's
         decision as to the amount of bonus paid subsequent to your resignation,
         Unifi will make up the difference equal to the anticipated 1999 Volvo
         bonus. For example, assuming a 30% bonus of your $177,000 base
         ($53,100), should Volvo decide to pay you a lower bonus of $30,000,
         Unifi will pay you an additional $23,100 to keep you whole at your
         total expected bonus of $53,100.

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9.       Severance Understanding
         In the unlikely event that some circumstance should occur beyond your
         control resulting in a separation of employment, Unifi will pay you
         your base salary for a period of twelve months except in the case of
         disciplinary termination.

Mike, I think you will make a strong member of our executive team and I look
forward to welcoming you to Unifi. Please let me know if you have any questions
and I look forward to hearing from you as soon as possible.

Sincerely,

Brian Parke
President and Chief Operating Officer
Unifi, Inc.

Accepted by:    MICHAEL E. DELANEY                     December 21, 1999
              ----------------------                   -----------------
                Michael E. Delaney                            Date

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