Document:

Exhibit 10.1
    

    

    

    
      SIXTEENTH AMENDMENT TO AMENDED AND
RESTATED
      CREDIT AGREEMENT
    

    

    

    
      THIS SIXTEENTH AMENDMENT TO AMENDED AND
      RESTATED CREDIT AGREEMENT
      (“Sixteenth Amendment”) is made as of the 13th day of August, 2010, by
      and between CULP, INC.,
      a North Carolina corporation (together with its successors and permitted
      assigns, the “Borrower”), and WELLS
      FARGO BANK, N.A. (successor by
      merger to Wachovia Bank, National Association), 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; by Ninth Amendment to Amended and Restated Credit
      Agreement (“Ninth Amendment”), dated as of July 20, 2006; by Tenth
      Amendment to Amended and Restated Credit Agreement (“Tenth Amendment”),
      dated as of January 22, 2007; by Eleventh Amendment to Amended and
      Restated Credit Agreement (“Eleventh Amendment”), dated as of April 16,
      2007; and by Twelfth Amendment to Amended and Restated Credit Agreement
      (“Twelfth Amendment”), dated as of December 27, 2007; by Thirteenth
      Amendment to Amended and Restated Credit Agreement (“Thirteenth
      Amendment”), dated as of November 3, 2008; Fourteenth Amendment to
      Amended and Restated Credit Agreement (“Fourteenth Amendment”) dated as
      of July 15, 2009; and Fifteenth Amendment to Amended and Restated Credit
      Agreement (“Fifteenth Amendment”) dated February 24, 2010 (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, Ninth Amendment, Tenth Amendment,
      Eleventh Amendment, Twelfth Amendment, Thirteenth Amendment, Fourteenth
      Amendment, and Fifteenth 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 Sixteenth 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:
    

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

    
      (a)       The following definitions in
      Section 1.01 are hereby amended and restated in their entireties to read
      as follows:
    

    
      “Applicable
      Margin” shall be 2.00% until
      the first Rate Determination Date (hereinafter defined) after August 1,
      2010, and as of and after such first Rate Determination Date after
      August 1, 2010 shall be determined based on the pricing grid set forth
      below and tied to the Consolidated Funded Debt to Consolidated EBITDA
      Ratio, determined as set forth in Section 5.30:
    

    
    	
          
            Price
          

          
            Level
          

        	
          
            Consolidated Funded Total Debt
          

          
            to Consolidated EBITDA Ratio
          

        	
          
            Applicable Margin
          

        
	
          
            I
          

        	
          
            Less than 0.50 to 1.00
          

        	
          
            1.60%
          

        
	
          
            II
          

        	
          
            Greater than or equal to 0.50 to
            1.00 but less than 1.25 to 1.00
          

        	
          
            2.00%
          

        
	
          
            III
          

        	
          
            Greater than or equal to 1.25 to
            1.00 but less than 2.00 to 1.00
          

        	
          
            2.45%
          

        
	
          
            IV
          

        	
          
            Greater than or equal to 2.00 to
            1.00 but less than or equal to 2.50 to 1.00
          

        	
          
            2.85%
          

        

    

    
      The Applicable Margin shall be determined
      effective as of the date (herein, the “Rate Determination Date”) which
      is 10 days after receipt by the Bank of the annual (in the case of the
      fourth fiscal quarter) and quarterly financial statements of the
      Borrower pursuant to the provisions of Section 5.01 for the fiscal
      quarter as of the end of which the foregoing ratio is being determined,
      based on such quarterly or annual financial statements, as the case may
      be, for the fiscal quarter then ended, and the Applicable Margin so
      determined shall remain effective from such Rate Determination Date
      until the date which is 10 days after receipt by the Bank of the
      financial statements for the next fiscal quarter (which latter date
      shall be a new Rate Determination Date); provided that if the Borrower
      shall have failed to deliver to the Bank the financial statements
      required to be delivered pursuant to the provisions of Section 5.01 with
      respect to the fiscal quarter most recently ended within the time period
      specified herein, then for the period beginning on the day which is 10
      days after the required delivery date of such financial statements and
      ending on the earlier of (A) 10 days after the date on which the
      Borrower shall deliver to the Bank the financial statements to be
      delivered pursuant to the provisions of Section 5.01 with respect to
      such fiscal quarter or any subsequent fiscal quarter, or (B) 10 days
      after the date on which the Borrower shall deliver to the Bank annual
      financial statements required to be delivered pursuant to the provisions
      of Section 5.01 with respect to the fiscal year which includes such
      fiscal quarter or any subsequent fiscal year, the Applicable Margin
      shall be determined at Pricing Level IV set forth above.  Any change in
      the Applicable Margin as of any Rate Determination Date shall result in
      a corresponding change, effective on and as of such Rate Determination
      Date, in the interest rate applicable to the Loans outstanding on such
      Rate Determination Date.
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      “Termination
      Date” means whichever is
      applicable: (i) August 15, 2012, (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 Tenth
      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 Sixteenth Amendment and which remain outstanding on
      the date of this Sixteenth Amendment.”
    

    
      (c)       The requirement, as set forth in
      Section 2.02A(a)(i), that the maximum amount of New Letter of Credit
      Obligations not exceed $5,500,000.00 is hereby replaced by a requirement
      that the maximum amount of New Letter of Credit Obligations, when added
      to the then outstanding aggregate amount of Existing Letters of Credit,
      shall not exceed $3,000,000.00.
    

    
      (d)       Section 5.29 is hereby amended
      and restated in its entirety to read as follows:
    

    
      “Section 5.29.  Certain
      Financial Limits.  The Borrower
      shall not, at any time, permit:
    

    
      (a)       Tangible Net Worth to be less
      than the sum of (a) $72,996,300.00, plus (b) an aggregate amount equal
      to 50% of its Consolidated Net Income (but, in each case, only if a
      positive number) for each completed fiscal quarter after the fiscal
      quarter ended May 2, 2010.
    

    
      Terms used but not defined in this Section
      5.29(a) shall have the definitions given such terms in the Omaha Note
      Purchase Agreement (but excluding for purposes of this Section 5.29(a)
      any future amendments thereto not made with the written consent of the
      Bank).
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      (b)       Capital expenditures of the
      Borrower and its Subsidiaries to exceed $10,000,000 in the aggregate
      during any fiscal year of the Borrower.”
    

    
      (e)       A new Section 5.32 is hereby
      added to the Credit Agreement, which new section shall read as follows:
    

    
      “Section 5.32.  Deposit
      Accounts.  Borrower shall
      maintain its primary deposit account(s) with Bank.”
    

    
      2.        Further
      Assurances.  The Borrower will
      execute such confirmatory instruments, if any, with respect to the
      Credit Agreement and this Sixteenth 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 Sixteenth Amendment) and agrees that:  (i)
      except as expressly modified by this Sixteenth 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 Sixteenth
      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
      Sixteenth Amendment may not itself be amended, changed, modified,
      altered, or terminated without in each instance the prior written
      consent of the Bank.  This Sixteenth Amendment shall be construed in
      accordance with and governed by the laws of the State of North Carolina.
    

    
      5.        Counterparts.  This
      Sixteenth 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.        Modification
      and Extension Fee.  The
      Borrower shall pay to the Bank on the date this Sixteenth Amendment is
      executed, an amendment and extension fee equal to $25,000.00, which fee,
      once paid, shall be fully earned and non-refundable.
    

    
      7.        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 Sixteenth Amendment,
      including without limitation reasonable attorneys’ fees.
    

    

    

    
      [Signature Page Follows]
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      IN WITNESS WHEREOF,
      this Sixteenth 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 and Chief
            Financial Officer
          

        
	

        	

        	
           
        
	

        	

        	
           
        
	

        	

        	
           
        
	

        	

        	
           
        
	

        	
          
            BANK:
          

        	

        
	

        	

        	
           
        
	

        	
          
            WELLS FARGO BANK, N.A. (successor by
          

        
	

        	
          
            merger to Wachovia Bank, National
            Association),
          

        
	

        	
          
            as Agent and as Bank
          

        	
          
            (SEAL)
          

        
	

        	

        	
          
             
          

        
	

        	

        	
           
        
	

        	
          
            By: /s/ Timothy Sechrest
          

        	

        
	

        	
          
            Name: Timothy Sechrest
          

        	

        
	

        	
          
            Title: Senior Vice PresidentExhibit 10.1

Acknowledgment of Debt

We the undersigned, Vantage Health, a public company incorporated in the State
of Nevada, USA, under registration number E0183922010-6 (represented herin by
Dr. Lisa Lalitha Ramakrishnan in her capacity as duly authorised director) ("the
Debtor"), of 11400 Olympic Blvd., Suite 640, Los Angeles, CA 90064, USA, which
address we hereby choose as our domicilium citandi et executandi for purposes
hereof, do hereby admit that we are indebted to and hold ourselves bound to Bay
View Terrace, a corporation 100% owned by Lisa Lalitha Ramakrishnan ("the
creditor") of C/O Rhodes Corporate Services Trustees Ltd, Caravelle House,
Manglier Street, P.O. Box 882 Victoria Mahe, Seychelles, which address the
creditor chooses as its domicilium citandi et executandi for purposes herof, for
the due and proper payment of US$30,000.00 (Thirty Thousand dollars only),
arising from monies advanced to us by the Creditor ("the Principal Debt"); and
furthermore we declare that we are bound by the conditions set out in the
Annexure to this Acknowledgement of Debt, with Annexure we have initialled for
purposed of Identification.

Signed in Cape Town This 26th day of June, 2010

As Witness

/s/ Lisa Ramakrishnan
-------------------------------------
Lisa Ramakrishnan
Vantage Health - The Debtor

/s/ Lisa Ramakrishnan
-------------------------------------
Lisa Ramakrishnan
The Creditor
<PAGE>
ANNEXURE TO ACKNOWLEDGEMENT OF DEBT
(Between Vantage Health and Lisa Ramakrishnan)

1.   The Principal Debt shall not bear interest until due date for repayment. In
     the event that the  Debtor  fails to pay the full  amount of the  Principal
     Debt on the due date for repayment,  the Principal Debt  outstanding  shall
     bear interest  from the due date for repayment at the prime bank  overdraft
     rate as charged and  calculated  by the  Debtor's  bankers in USA to its US
     corporate  customers from time to time,  compounded  monthly in arrear,  as
     certified by any manager of such bank,  whose  appointment and authority it
     shall not be necessary to prove.
2.   The Principal Debt shall be paid in full on 13 July 2013 ("the due date for
     repayment") free of deduction, set-off or bank charges.
3.   Should any payment due in terms of this Acknowledgement of Debt not be made
     on due date the  Creditor may regard the balance of the  Principal  Debt as
     due  and  payable  immediately,  and  may  issue  Summons  therefor  in any
     competent Court without further notice or demand to Debtor.
4.   The Debtor herby expressly  renounces the benefits of the non causa debiti,
     the errore calculi,  the revision of accounts and no value  recorded,  with
     the full force, meaning and effect whereof the Debtor declares itself to be
     fully acquainted.
5.   The Debtor  hereby  consents  and submits to the  jurisdiction  of the High
     Court of South Africa, Cape of Good Hope Provincial Division, in respect of
     all matters  arising out of and disputes in connection  with or in relation
     to  Acknowledgement  of  Debt  or any  amendment  thereof  or  substitution
     therefor, subject to the right to sue in any competent Court granted to the
     Creditor herein.
6.   The Principal  Debt shall become due and payable  immediately if the Debtor
     be placed under liquidation of judicial  management of be wound up, whether
     provisionally or finally and whether  voluntarily of compulsorily or if the
     Debtor  commits any act which  constitutes  and act of insolvency of if the
     Debtor  compromises or attempts to compromise  with any of its creditors or
     if any  judgment  be granted  against the Debtor,  which  judgment  remains
     unsatisfied  (and no appeal against such  judgement of application  for its
     rescission  is lodged),  at the expiry of 30 (thirty) days from the date of
     granting  thereof,  or should any such appeal or application for rescission
     not be duly prosecuted or fail.
7.   Should the Creditor  incur costs in the  collection of the Principal  Debt,
     the Debtor shall pay such costs on the attorney-and-client scale as well as
     collection  costs  calculated  at 10.00 % (Ten  Percent)  of each and every
     pament made in reduction of the Principal Debt, interest and costs.
8.   The Creditor shall be entitled to cede or pledge its interests herein or to
     trade therewith at its own discretion without the consent of the Debtor. It
     may also in rem suam  discharge or release any  security  partly or in full
     without  the consent of the Debtor or consent of any  alteration,  release,
     relaxation,  or  postponement of the terms hereof and such action shall not
     be binding on the Creditor in any way whatsoever unless it has indicated in
     writing that such action shall be binding.
9.   The Creditor may  allocate any payment to capital,  interest,  costs or any
     other item as it deems fit despite any allocation made or deemed to be made
     by the Debtor.
10.  Any  certificate  issued  under the  signature  of the Creditor or its duly
     authorized agent that purports to certify the amount due hereunder shall be
     accepted  as  prima  facie  proof  of  such  indebtedness  and  shall  have
     sufficient  probative  value to  enable  the  Creditor  to  obtain  summary
     judgment or provisional  sentence against the Debtor in any competent Court
     for the amount stated in such certificate,  and the Debtor accepts the onus
     of disproving the amount so stated as not being the amount owing.
<PAGE>
11.  The Debtor shall not be entitled for any reason  whatsoever  to withhold or
     defer any payment stipulated in this Acknowledgement of Debt.
12.  The  Creditor  acknowledges  that it shall hold no security for the due and
     proper payment of all liabilities incurred in this Acknowledgement of Debt.
13.  The Debtor  shall be at liberty to pay any  portion of the  Principal  Debt
     before the due date thereof  without  derogating from any right it may have
     in terms hereof.
14.  Any indulgence of time which may be given to the Debtor with regards to the
     performance of any obligation in terms of this Acknowledgment of Debt shall
     not in any way,  prejudice  the  Creditor,  nor shall it be  regarded  as a
     waiver by the Creditor of any of its rights in terms hereof.
15.  No variation or amendment of this  Acknowledgement  of Debt shall be of any
     force or effect  unless  reduced to writing and signed by both the Creditor
     and the Debtor.
16.  The Debtor shall pay the costs of and in  connection  with the  negotiation
     and preparation of this  Acknowledgement of Debt as well as any other costs
     charges necessary to give effect to this Acknowledgement of Debt.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]